An evaluation of relationship marketing strategies for customer retention in the hospitality industry in Ghana- A case study of Rexmar Hotel, Kumasi.

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August, 2015
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Customer Relationship Management (CRM) practices are a business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. It brings together all data about a client in hotels via software to give a holistic view of a customer. With intense competition among hotels in Ghana, this study sought to find out if CRM was practised in the selected hotels. It was to solve the problem of inadequate service delivery quality in hotels which were not helping customers’ expectations to be met. The study was conducted to identify critical factors necessary for customer retention in relationship marketing in the hotel businesses in Ghana and to develop effective relationship marketing strategies to manage customer retention for sustainability within hotel business with Rexmar Hotel as the case. Questionnaire was the method adopted for the investigation of the study. With a sample of 40 respondents was considered, these were made of customers to enable the researcher examine the hotel by the examination of the relationship marketing variables of the hospitality industry. Completed questionnaires were grouped into frequency tables and expressed in percentages, while interpretation is dependent on the samples of the variables with the use of SPSS. It is recommended that even though the hotels have heard of CRM, there should be some intense awareness program on the benefits of CRM. its understand from the study that most hotels in Kumasi, Ghana do not practice customer retention in relationship marketing with their customers. This lack of awareness of customer retention in relationship building, enhancement and maintenance has affected relationship marketing strategies of hotels. Critical factors necessary for customer retention such as service quality, customer satisfaction measurement and analysis, customer complaints handling and loyalty programme initiative were identified.
A thesis submitted to the KNUST School of Business, Department of Strategic Management and Consulting, Kwame Nkrumah University of Science And Technology, Kumasi, in partial fulfillment for the award of MASTER OF Business Administration (Strategic Management and Consulting) Degree,