Hotel Customer Segmentation Based On Clv And Customer Loyalty And Maintain

Along with the marketing strategy of product-oriented substituted by that of customer-oriented, it's becoming vital important to build an effective interrelationship with the customer so as to win the loyalty of them. According to Pareto Principal, 80 percent of profit is created by 20 percent of customers, that is to say a small number of customers make huge contribution to the company. Then the following question must be how to identify the valuable customers and how to win the loyalty of them.The current condition of China's hotels is huge scale but low profit, the main reason is the outdated management theory and approach. Compared with the foreign invested hotels, we leave far behind as regards to Customer Management. As the typical company which offers professional service, hotel should always bear in mind that offering the best service to gain the loyalty of customers is the essence. Hotel should focus on the segmentation of customers first, then allot the limited resource and cash based on the segmentation. Take the above mentioned into account, the purpose of the article is to come up with a segmentation model to instruct the hotel how to identify valuable customers and how to make more money on loyal customers. The article is divided into five parts as follows:First Section: Introduction. Outline the background of customer segmentation and maintenance. Summarize the documentaries of domestic and aboard and make analysis about them. Come up with a customer segmentation approach based on the Theory of Customer Lifetime Value and Customer Loyalty. At the end of the section, the outline of the article, the framework and innovations are presented.Second Section: Theory of Customer Lifetime Value. The calculation of CLV is the basic task, this section introduces the conception of Customer Lifetime, Customer Lifetime Value and the previous calculation model of CLV. Founded on that, we give a revised one. Using model, we can calculate Customer Current Value and Customer Future Value.Third Section: Theory of Customer Loyalty. In this section, the conception of customer loyalty, the elements which affect customer loyalty, the division of customers and the meaning of customer loyalty to hotel are presented.Fourth Section: The Segmentation and Maintenance of hotel customer Based on the Theory of Customer Lifetime Value and Customer Loyalty. This section is the core section in which hotel customer segmentation model is raised. The model clarifies the profit contribution that different level customers make. Suggest that hotel should take action on the different customers.Fifth Section: Inclusion. Summarize the theories and the criteria the segmentation model is used. Restate the maintenance hotel should take to the different kind of customers. Highlight the innovation and forecast the points which need further research.The innovation of the article lies in three aspects: 1. Improvement of Customer Segmentation Model. We build the model based on the Theory of Customer Lifetime Value and Customer Loyalty.2. Implement the newly built model in hotel. Trough the calculation of CLV, we can identify the most valuable customers, valuable customers and the least valuable ones. 3. Combine the practical condition of hotels, come up with the concrete measures that should be taken to different customers.