BMK302/03

Services Marketing

Assignment 1(50%)

EXCEPTIONAL QUALITY

Several years ago the Ritz-Carlton did a complete evaluation of the quality of service throughout the entire organization. Mr. Cayuela noted that at the core of their quality improvements was a commitment to innovate, document results, and then document the processes that deliver the greatest outcomes.

He further observed that maintaining focus is essential to delivering exceptional quality. It’s easy for an organization in today’s business climate to chase the latest fad, shift from one priority to the next, and pursue the flavor of the month. But the Ritz-Carlton understands what’s important to its guests. In Mr. Cayuela’s words, the top three priorities of guests are:

• A clean room
• Timely service
• Delivering on promises

An unwavering focus on these priorities creates what’s known as the “Ritz-Carlton Mystique.” The “Mystique” is the legacy of the Ritz. It’s the combination of emotion and tradition to deliver memorable experiences for guests. Mr. Cayuela told me that the Mystique began when Mr. Cesar Ritz set out to create a hotel that would “wow” royalty in Europe. In that day, most hotels had restrooms down the hall, shared by multiple guests. Ritz had a different vision: to put restroom’s in every guest’s room. That was the beginning of legendary service that focused on the needs and desires of guests. Rather than focusing on everything, Ritz focuses on its highest priorities.

To manage the “Mystique,” the Ritz uses a CRM (customer relationship management) system – also called “Mystique”. When I asked one employee for an example of how they maximize their CRM, she said that the preferences of a guest are noted in the system. Let me give you a personal example.

We had never stayed at a Ritz-Carlton before, but because we were celebrating our 25th wedding anniversary, we decided to do something extra special. Upon our arrival, our room was a bit warm on the first night of our stay. We shared this with the front desk, and they kindly replaced the thermostat in our room. The next day, the room was still warm, so our concierge took the initiative to show us two rooms, and then let us choose the room that we liked the most. We happily chose the colder room, and a Gentleman helped us move our luggage to our new room.

A couple of days later, when I asked our concierge about how they use the “Mystique” to deliver great service, she reminded me of the issue we had with our room. “We know you like a cool room,” she said. “In fact, we showed you two rooms, the first of which had a nicer view, but you chose the other room because it was colder. If you had to choose between a cool room and a better view, you would choose the cooler room.” Then she added, “This information is now in ‘Mystique,’ and if you were ever to stay at a Ritz-Carlton in the future, our team would know your room preference, no matter which hotel you stay at in the world. We would do our best to give you a room with a great view, but ensuring the room is cool is the first priority.”

Exceptional quality is also seen in Ritz-Carlton’s attention to detail, regardless of how small or how insignificant it might seem. When we checked in, chocolate covered strawberries were delivered to our room in honor of our anniversary. On another occasion, when we stepped onto the elevator to head upstairs, a Gentleman from the Ritz also entered the elevator to head to a different floor. On the way up, the elevator stopped to pick up more guests. Space was limited, so what did the Gentleman working for Ritz-Carlton do? He stepped off the elevator to make room for more guests…even though he hadn’t arrived to his floor. A small, simple gesture of hospitality.

We were also amazed at how well each Lady and Gentleman remembered our names. They didn’t slowly learn our names as our time progressed. From the very first day, until the time we checked out, we were greeted by name and with a smile.

The biggest surprise came toward the end of our stay. At the end of my conversation with Mr. Cayuela, he asked, “Have you ever been to Cancun before?” “No” I said.

“This is our first time.” “Have you ever stayed at a Ritz-Carlton?” he asked. “No” I said. “We’re celebrating our 25th wedding anniversary, so this is something very special for us.” Then he asked where we had eaten dinner since we arrived, and what our plans were for the evening. I told him where we had eaten, and that we hadn’t made plans for that evening yet. What he said next shocked me. “We have two five-star restaurants on our property, and you can’t leave until you eat at one of them. I want you to be my guest.”

My eyes were as big as saucers. “I’ll let the concierge know,” he said, “and she’ll make reservations for you at the restaurant of your choice.” I couldn’t believe what I was hearing. I expressed my thanks over and over, and that evening was a very special celebration for Karen and I. The food and service were outstanding, and Mr. Cayuela’s kindness and generosity was completely unexpected. That “Wow” experience is just one example of how the Ritz-Carlton specializes in unique and memorable moments for their guests.

Source:

http://stephenblandino.com/2016/07/how-the-ritz-carlton-delivers-exceptional-customer- service.html

1. Evaluate Ritz-Carlton’s success in closing the service quality gaps from the case study.

• 1500 words
• Opening and closing is a must
• 10 points with appropriate examples

(50 marks)

2. You have been assigned to propose a plan with Ritz-Carlton as a benchmark to design the customer service experience for a customised luxury clothing boutique.

• 1500 words
• Opening and closing is a must
• 10 points with appropriate examples

(50 marks)