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Training Of Management And Customer Relationship Management Tourism Essay

Knowing the cultural background of a client will put the management in a position to provide a better and unique type of service which will be greatly appreciated and will attract more clients bringing more business. For that, firstly, the executives, managers and employees should be trained properly to handle unpleasant and complicated situations accordingly. In a hotel, clients come from different parts of the country; they have different cultures, languages and interests. Therefore for one client a certain service may be good while for the other it may be unsatisfactory. The first thing to be kept in mind is that one should not assume that these countries are the same. For example Chinese love to gamble so for them it would be more important to have a better service quality. Every individual will prefer to choose a hotel which will take care of their cultural differences.

Due to the constant changes in the environment, casinos experience new opportunities and threats in the market. Different factors such as the needs, attitudes, past experiences and awareness of gamers could cause a communication loss between the management and their customers.

This article provides ways for the management to improve their services and conveys the needs of a customer. It would enable casino management to identify new opportunities through understanding gamers’ perceptions of the services delivered by the casino operators and staff.

Individuals differ in their tendency to be satisfied or dissatisfied with purchases. Good service performance will result in satisfaction and customer loyalty.

Quality is not a factor but a reality. It is a perception in the minds of the customers. The service quality customers experience in the casino can influence customers’ choices and perceptions.

These pointers will be discussed in the following chapters in detail

Chapter 1. Training of Management

This chapter includes the basic behavior a management team should acquire.

Chapter 2. Lifetime customer value in a Casino

This chapter discusses the types of customers who visit a casino, what they expect and how much money they are willing to spend.

Chapter 3. Customer relationship management

This chapter discusses management of different customers and the services to be offered to these customers while they are gambling at a casino.

CHAPTER 1.

TRAINING OF MANAGEMENT

Management is the backbone of any business. If the management is weak, the whole business gets weak and eventually has a downfall. In order to have an effective management, a proper training session should be given to the managers, executives and employees so that they can work with confidence under pressure and in unpleasant situations. The management should always be well informed about any changes in the rules and regulations of the hotel. If they are not informed than a communication gap would be formed between the workers and that will cause confusion and chaos which is not good for any business. Awareness is always the first step. Understanding and positive perception are early parts of creating change to improve customer service.

Customer services in the casino industry play an important role in ensuring the success of casinos; therefore casinos must identify areas that require improvements in service.

In order to maintain a strong, long term relationship with customers, companies need to provide services that highly satisfy the customer. Services are one of the important determinants of quality as they combine all the elements of the service marketing and are the point at which the product itself is created and delivered.

Management of casinos must realize that service quality in the gaming area of a casino definitely influences the gamers’ preferences.

The management staff should be trained to respect the differences of their international guests. Every guest/customer comes from a different part of the world. Each customer has different culture, sense of taste and most importantly a different language. An atmosphere of cultural understanding and respect should be created.

Language can be a barrier for the management and the customer. Therefore, the management should learn the basic terms of each language in order to entertain the customer with his required enquiry. Every person feels comfortable in speaking his own language. Thus, when a customer is greeted in his or her language he or she would feel at home and he or she would get a warm feeling which would make them want to come back to that hotel every time they visit that country. If this quality is lacking than the management would be unable to understand what the customer wants which could frustrate the customer and he would not take long to choose another hotel.

If not the whole staff can learn multi languages than at least a few members of the management staff should know multiple languages. This can help when dealing with international customers who do not know any language except for their own language. It would be easier for the staff to explain them the menu, general information, city information, credit information and casino policies. And easier for them to understand and therefore enjoy their stay.

Speaking different language is a talent. When local customers see the staff speaking different languages they will automatically think high of the place and management.

Apart from language, sensation of taste is a major factor which attracts customers to their hotel. If good food, according to every culture is provided, the customers would definitely not think of any other place. Again, language plays an important part here. Some dishes in different countries have different names. When the customers are informed of these dishes, they don’t need to struggle much with what food they want to eat which again eases down the customer. When the desired food is available to the customer, he would enjoy the gambling facilities from the same hotel. This will attract more customers to the gambling department of that hotel and they will not have to travel to a different place for a better dining.

Guests want an experience that is memorable and wonderful which would make them want to come back even if they have less money in their pockets when they leave.

Good customer service and outstanding guest experience that comes from that also have an effection on your bottom line. Guests who enjoy themselves will come back and play again.

The management team should be polite with the players in the casino. They should know when to grant the customer’s request and when to deny it. However, the management staff should keep in mind not to deny them a request in front of their companions as it could lead to confrontation and it is always best to avoid confrontations for a friendly and peaceful environment. Speaking too frankly and unpleasant responses should also be avoided which can otherwise cause a player to lose face. If an atmosphere is created where a player can play confidently and is treated with respect then he will develop a strong relationship with the management.

The managing staff should remember the dates of the cultural events. They can decorate the casino according to the event which will invite the customers to celebrate their cultural events in an entertaining manner and they will appreciate their cultural values being respected.

Casinos value the importance of customer relationship management. In a casino the staff is always in contact with the customer. With a large customer base, casinos need to know their customers more personally to create a friendly customer management relationship. Casinos have to keep detailed customer information and use this information in managing their customer relationships. Data on player statistics for example, average bet, duration of play and win/loss have been a part of almost every casino’s information system for several years.

As far as casino management is concerned, employees will provide a better service if their services are recorded strictly and appreciated. This can be done by giving weekly bonuses to the best employee of the week. This way the staff will strive harder to satisfy the guests, providing better work quality. Guests will have a better gaming experience if the casino’s staff has a good attitude.

Chapter 2

CUSTOMER LIFETIME VALUE IN A CASINO

Customer expectations and customer satisfaction provide the link to ensure quality service at casinos. To understand the expectations of a customer, it is important to know and differentiate between different types of customers.

TYPES OF CUSTOMER SEGMENTS

There a few typical customer segments at a casino which are important to understand customer lifetime value in a casino. These are as follows:

Prime Customers

Mobile Customers

Valued Customers of tomorrow

Incidental Customers

Prime Customers:

This type of customer segment is the casino’s most desirable customer segment. These customers are mostly local customers who visit the casino at least twice a week. The game of choice of these customers is table games. They usually play for eight hours and average about $200 a hand. Average financial aid is eight years. These customers are key. All they desire is to play and hopefully go home with more money than they came with. Their prime purpose to be in the casino is to gamble and make money instead of seeing shows or relaxing at the casino.

Mobile Customers:

This type of customer segment is the smallest segment of the casino’s customer base. These customers are the highest volume producing customers for the casino and in return they desire to be treated with respect and loyalty no matter where they are present in the casino. Their game of choice is usually Baccarat. Their average relationship with a casino lasts for about six years and they visit the casino twice a year. Their average bet is around $5000 a hand. They spend a minimum $1,000,000 a visit. These high rolling customers are referred to as ‘whales’ in casino circles.

Valued Customers of Tomorrow:

This type of customer segment includes typically male customers between the age of 18 to 24. The game of choice of these customers is craps or black jack. This group loves to party and have a good time. They are mostly seen in the casino bar and lounge. Their relationship with a casino averages about six years. They usually have above average net worth. Their typical bet is about $25 dollars a hand. They like spending their money on entertainment and food at some of the pricier restaurants. They want to be treated like high rollers even if they are not. These customers are young and their personal net worth usually increases over time. They are an important segment for the casino.

Incidental Customers:

These are the risk avoiding customers. They do not visit the casino to gamble much but they are interested in watching other people gamble or come to the casino for other activities, e.g. to eat at a restaurant or watch a show. Even if they do gamble, they do not like to spend more than $25.

OBJECTIVES OF A CASINO

According to Lamb et al. (2004), research has shown that customers evaluate service quality by the following:

Reliability:

The ability to perform the service dependably, accurately and consistently.

Responsiveness:

The ability to provide prompt service to customers. Casinos should be equipped with a special counter for drinks and cash-changing to avoid inconvenience to the customers and save more of their time.

Assurance:

The knowledge and courtesy of employees and their ability to convey trust.

Empathy:

Caring, individualized attention to customers,

such as offering an explanation of service, electronic displays, and ambulating-style service for drinks.

Tangibles:

The physical evidence of the service, namely the physical facilities, tools

and equipment to provide the service.

It is quite visible from these objectives that customer expectations and customer satisfaction provide the link to ensure quality service at casinos.

BARRIERS TO DELIVERING QUALITY SERVICE.

Barrier - Number of responses - Percentage of the total responses

1. Poor and unfair reward and promotion systems - 49 - 32%

2. Differences in culture and language barrier – 33 - 21.6%

3. Poor economic conditions and fear of being made redundant - 26 - 17%

4. Poor internal communication - 17 - 11.1%

5. Poor management style and problem - solving skills – 12 - 7.8%

6. Poor scheduling and not enough rest –7 - 4.6%

7. Others (i.e., smoky work environment, peer influences, etc.) – 6 - 3.9%

8. Lack of training – 3 - 2%

CHAPTER 3

CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship management helps a casino in achieving one or more of the seven objectives:

1. Providing better customer service through customization

Example of customization of customer service: Mr. X is a famous Business tycoon who likes to gamble at the ABC Casino in Vegas. One of his requirements while he is staying at the casino is he always wants a bottle of Cristal no matter where he is at. Knowing Mr X’s high status, the Management should be able to provide limo services, room service and the food and beverage department should be informed of his favorite food and drink. Mr. X is one of the valued customers of the casino and by showing attention to his needs he would feel valued at the ABC Casino.

2. Coding (grading customers)

Example of Grading Customers: Two customers come to the casino. One is a wealthy business man, Mr. X and the other is a Teacher at a high school, Ms Y.

Mr. X is an international customer who likes to play Baccarat and Pai- Gow. He comes to the casino about 6 times a year. He usually bets about $5000 a hand. His credit line with the casino is $ 1,000,000.

On the other hand Ms. Y comes from a bus from Florida. She visits the casino 12 times a year. She likes to play Nickel slots. If penny slots are available at the casino, she will play those as well. Her average budget is about $75-$100 a trip.

Both Mr. X and Ms. Y are valuable customers. As individuals, each person should be treated differently. Mr. X can increase or decrease the market in gambling in one visit whereas Ms. Y is part of the largest market segment. Proper care should be taken of both individuals accordingly to save such valuable customers.

Routing (E.g. making call centers more efficient).

This objective coincides with the coding customers’ concept. If both Mr. X and Ms. Y call into the casino at the same time to make bookings for the same show and if there are not enough agents to answer both calls then Mr. X’s call should be answered first while putting Ms. Y on hold but in a polite manner as it is important to respond to customers with respect as even one customer can affect the whole casino market. Therefore, an efficient management system provides customer information efficiently, and in turn, callers are routed based on their importance to the organization.

Targeting specific customers with appropriate offers and promotions.

Casinos have customers of all statuses. However, certain promotions are offered to certain customers based on their worth to the casino. Mr. X, as mentioned in the previous objectives, is a wealthy business tycoon. He would be offered all rooms and food beverages of the best quality. He would be given the option to choose the best suite in the hotel. Ms. Y on the other hand would be given some free buffet passes and some free play on her player’s card. These marketing efforts can be successful by gathering important information from the management about each player. By targeting various customers with the accurate promotional offers, more customers would be attracted to the casino increasing strength of the market.

Sharing customer information across the enterprise

When a customer comes to a casino showing his card for a free game he won in his last game or for a free meal he won in the game, the management should have the information of the customer through the card instead of asking the customer’s name or what room they are staying in. This would help making the customer feel more valued.

This objective can also be of help when a customer decides to visit a place or country and enquires about the casinos there, the management can recommend those casinos with which they have friendly terms and can send information of the customer to them from beforehand to avoid any inconvenience to the customer. This way other casinos will recommend your casinos and help you increase your market.

Improving cost management.

Cost management could be improved by sorting which customer deserves promotional offerings. This can improve loyalty to the customers who play frequently at the casino, differentiating them with customers who visit the casino once every two years. If it is not differentiated, the casino companies would send promotional offerings to the regular customer who rarely visited just a much as they would send promotional offerings to the regular customer.

Increasing Profitability (through grading, targeting and retention)

Profitability is increased when revenues are increased through reduced costs. A good management improves productivity levels, workplace environments and customer retention.

High customer retention means savings in acquisition costs for replacing customers who would otherwise be lost to competitors. Proper segmentation, precise targeting and understanding of customer lifetime value achieve high levels of customer retention. A trained management would be able to save costs without compromising customer service. They would be able to understand customer interests and marketing would take less time as the customers are targeted and the management would know which promotion has to be offered to which customer.

Socioeconomic databases, loyalty cards, the cross-matching of credit card data with other files; they are important assets at work in the gambling business. Casinos store customer data on a larger scale for a longer period of than any other industry using these assets. Loyalty cards are the most important. At a typical casino, when a player swipes his card at a table game or clot machine, a network of databases comes into action. The system stores among other things, how long the person plays, how much he wins and losses and what his betting strategy is. This information can allow comparing statistics from previous visits and providing ideas to casino workers about how to treat a given customer, depending on how much he is worth to the company. Customers on the other hand, collect card points as they gamble, eat, shop or enjoy shows. They can be given free hotel rooms or tickets to shows for being loyal customers to the casino. Every loyal customer deserves it.

.

Levels of agreement and disagreement between males and females regarding the service quality of the gaming areas of the selected casinos through various surveys.

TABLE 1

Variable Description

Mean/(Standard Deviation)

Casinos with 700 and more slot machines.

Male

Mean/(Standard Deviation)

Casinos with 700 and more slot machines.

Female

1. The promptness of the cashiers is satisfactory.

1.85

1.78

2. The cashiers are unfriendly when assisting you.

3.55

3.60

3. The cashiers are efficient enough.

1.84

1.72

4. The cocktail waiters respond quickly to orders.

2.40

2.38

5. The cocktail waiters take orders in a friendly manner.

1.83

1.88

6. The casino security is sufficient at the casino.

1.75

1.85

7. The casino security is helpful when assistance is needed.

1.74

1.75

8. The casino security is friendly.

1.60

1.65

9. The floor supervisor is available for complaints.

1.95

2.15

10. The floor supervisor handles complaints in a professional manner.

1.98

1.99

11. The casino club staff is efficient.

1.70

1.58

12. The casino club staff is friendly.

1.73

1.54

13. The slot technicians are very prompt to attend to problems.

1.93

2.56

14. The skills of the dealer staff at the tables are good.

1.94

2.5

15. The table dealers are friendly.

1.85

1.93

16. The table dealers are cautious when dealing.

1.88

2.00

Variable Description

Mean/(Standard Deviation)

Casinos with less than 700 slot machines

Male

Mean/(Standard Deviation)

Casinos with less than 700 clot machines

Female

1. The promptness of the cashiers is satisfactory.

2.01

1.88

2. The cashiers are unfriendly when assisting you.

3.32

3.26

3. The cashiers are efficient enough.

1.94

1.93

4. The cocktail waiters respond quickly to your orders.

2.36

2.47

5. The cocktail waiters take orders in a friendly manner.

1.86

2.04

6. The casino security is sufficient at the casino.

2.04

2.03

7. The casino security is friendly.

2.02

2.02

8. The casino security is helpful when assistance is needed.

1.98

2.03

9. The floor supervisor is available for complaints.

2.38

2.29

10. The floor supervisor handles complaints in a professional manner.

2.11

2.20

11. The casino club staff is friendly.

1.89

2.01

12. The slot technicians are very prompt to attend to problems.

2.31

2.07

13. The skills of the dealer staff at the tables are good.

1.63

1.88

14. The table dealers are friendly.

1.61

1.50

15. The table dealers are cautious when dealing.

1.63

1.75

16. The casino club staff is efficient.

1.93

2.00

CONCLUSION

Casinos provide an entertainment service to customers. The services should be quick and as required by the customer to satisfy the customer completely to make them come back to your casino. The customers, however, have the right to choose the casino that best serves their needs.

Casino staff must be aware of the guidelines regarding customer expectations and service quality that have been quoted by the management. Training of the casino is a must. All casino employees should be informed about the needs of the gamers and ways of satisfying their needs.

Cocktail waiters must have the necessary change at hand when gamers want to pay for the drinks they have ordered. The staff at the front line should have complete knowledge of the activities going on in the casino, regarding gamers. Employees that perform above average could be awarded with bonuses and prizes.

At the cashiers counter, security and privacy of the gamer should be taken care of so that other gamers are not able to see how much money the gamer in front of them has cashed in.

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