Model of Customer Relationship Management



Identify a problem situation  in an organisation they have access to and write about the same.


Brief introduction of the organisation 

Mantra Group is the large group of resort marketers and hotels which is based in Australia. The brand is also considered as Australia’s most influential hospitality management group, and there are several factors associated with the same. For instance, streamline centralised operations, effective IT infrastructure and brand ownership are the key factors which are supporting Mantra Group in carrying out the smooth flow of all its operations and activities. 
In terms of providing accommodation facilities, Mantra Group is considered as the leading brand in the hospitality industry of Australia. At present, the selected organisation is carrying out its business operations with more than 22000 rooms and 135 properties in markets such as New Zealand, Indonesia and Australia (Who is Mantra Group, 2018). Mantra Group also emphasise on carrying out aggressive marketing of all its products and services so that demand can be generated by the people in the target market. 

Description of the problem 

In the present scenario, the competition among businesses operating in the hospitality industry has become so intense that it is no longer secure for a brand to sustain in the market. Companies in the industry are now facing issues linked to attracting new customers and retaining the new ones. Considering the case of Mantra Group, it can be stated that increasing customer complaints is the major problem which the company is facing (Ratkovi?, Krasulja & Gara?a, 2013). The situation is a significant threat to the selected business because it is directly affecting its overall brand image. Most of the time, the customers complain about cleanliness which applies to the rooms, properties and restaurants of Mantra Group. Nowadays, every customer expects that the property they are visiting should be clean and well maintained. 
Apart from this, the customers are also complaining about the timeliness which is not satisfactory. Handling customer complaint and resolving them in every possible manner is essential for the brand because it directly results in enhancing the degree of customer satisfaction. 
Increasing customer complaints is an issue because it is affecting the volume of sales and profitability to a great extent (Badsi, Ghomari & Zemmouchi-Ghomari, 2017). In addition to this, Mantra Group is now facing problems and challenges in terms of achieving a high degree of customer loyalty. In the present scenario, the competition with hospitality industry has become highly intense and to sustain in the market; it is required by companies to focus on areas such as attaining a high degree of customer loyalty. Poor customer services in many properties are also considered as the significant factor which has resulted in increasing the complaints of customers. The selected hospitality organisation should focus on conducting training and development program for the staff members so that they can deliver fast, efficient and satisfactory services to all the customers (Saarijärvi, Karjaluoto & Kuusela, 2013). 
The issues and challenges faced by customers are not resolved on time, and this is also a major factor which is increasing the number of customer complaints. It is an issue because it is creating several kinds of obstacles for the selected business enterprise regarding getting a competitive advantage over other players operating in the hospitality industry. 
On the contrary of this, it can be critically argued that increasing customer complaints is reasonable because they provide companies with an opportunity to identify loopholes and issues linked to existing operations and processes (Eko, 2014). The management is required to develop effective strategies and plans which can support in reducing customer complaints and attaining a high degree of satisfaction within the same. However, in case of Mantra Group, increasing customer complaints is a threat because it is encouraging negative word of mouth publicity for the organisation. The future operations and expansion of the brand will be adversely affected in situations where corrective measures are not taken into consideration.  

Model of Customer relationship management 


FIGURE 1: IDIC Model of customer relationship management
(Source: Schneider, 2018)
Over the past few years, the concept such as customer relationship management has become highly popular within the hospitality and other related service industries. It can be stated that developing and maintaining a satisfactory relationship with the customer is now essential for long-term growth and profitability of any business enterprise (Ahmadi et al. 2012). The use of concepts such as customer relationship management provides organisations with an opportunity to manage their interaction with existing and future customers. The approach is effective because it support companies evaluate the information linked to the history of customers and ways through which the overall performance of a business can be improved. 
The objective of this tool is to support organisations in retaining their customers in every possible manner. In addition to this, the tool also plays a vital role in enhancing the volume of sales and profitability of a business enterprise. IDIC is a popular and useful model which can be taken into consideration by companies to improve and manage their long-term relationship with all customers. Rogers and Peppers developed the model, and it outlines the fact that to maintain and retain a long-term relationship with customers, it is required by organisations to emphasise on four key elements which are identified, differentiation, interaction and customisation (Peppers & Rogers, 2011). In the first element, it is needed by businesses to focus on identifying their key customers and developing in-depth knowledge about their needs and demand. In addition to this, the critical issues and problems faced by the existing customers should also be identified by the companies at this stage. 
In the second stage, a company is required to differentiate itself from the other players operating in the market. The differentiation can be carried out by two primary variables which are needs and value. A business can either differentiate itself based on the changing need and demand of its customers or by creating more value for the customers. Interaction can be considered as the primary and most crucial stage of this CRM model, and here, businesses are required to emphasise on interacting with their customers to develop knowledge about their changing need and demand. 
The stage is considered as critical because it assists companies to become aware of the key issues and challenges faced by the customers while using the products and services offered. Interaction is now mandatory for organisations because it helps in developing a strong sense of satisfaction among customers (Woodcock et al. 2011). The people in target market start perceiving the fact that the business is concern about their changing need and demand. It is the last stage in IDIC Model of customer relationship management, and here, companies look forward to customising their products, services so that customer’s needs are satisfied and the issues faced by them are resolved in every possible manner. 
Design of an intervention 
It has been identified that increasing customer complaints is the primary and most important problem which has been faced by Mantra Group. To deal with the issue, the selected business enterprise can employ the IDIC Model of customer relationship management. The model is useful because it will provide the business with an opportunity to understand the fundamental factors which are creating a high degree of dissatisfaction among customers and increasing the complaints (Payne, 2012). 
It can be stated that Mantra Group first needs to identify its primary customers or people in the target market. Here, the brand has targeted individuals who belong to middle and higher income group of the society. The company can carry out differentiation by a variable which is customer needs. It has been identified that timelessness and lack of cleanliness in most of the properties are the factors which can create an increase in the number of customer complaints. To deal with this issue, Mantra Group needs to focus on providing training sessions to its existing staff members so that they can deliver fast and effective services to all its customers. 
On the other side of this, the selected organisation can now look forward to developing ways through which it can interact with all its customers. Here, open channels of communication and customer feedback system can be employed by Mantra Group. The rationale behind this strategy is that it will provide the company with insight into the critical issues and areas which customers are facing while using the services offered by the company. 
Based on the information collected through feedback and communication channels, the brand can carry out specific changes in its process, services and products to reduce the number of customer complaints (Saarijärvi, Karjaluoto & Kuusela, 2013). It can be stated that implementation of CRM model is not going to be an easy task for the staff members working in Mantra Group. Here, the brand can use different types of change management tools to carry out desired changes and support the workers to cope up with the same. 
Here, Lewin’s change management model can be used by the selected hospitality organisation to implement changes and attain the desired outcomes. The model includes three major stages which are unfreezing the existing process, carrying out changes and the refreezing of the modified process. Apart from this, active participation of staff members in the process of change management and implementation can be encouraged by Mantra Group to attain the desired outcomes from the change management process. 

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