MASS CUSTOMIZATION
MASS CUSTOMIZATION
Large-scale information gathering and storing enables the
provision of a high-quality, personalized service for each client.
By adding value to your product, you can shut out competitors and
ensure repeat business.
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The idea
By applying information technology effectively, and training allof its employees to use information, the Ritz-Carlton hotel chain
has, over the last 15 years, developed into one of the most successful
luxury hotel chains in the world, providing customers with a highly
personalized service. The Ritz-Carlton strategy was quite simple:
to differentiate itself from its competitors by offering distinctive
service and customer value at a competitive price.
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What was uncommon, however, was the emphasis on several keyprinciples, which were underpinned by a blend of strong leadership
and the successful management and application of technology.
These principles included:
• A vision of an efficient, personalized service. It was important
to ensure employees were committed to providing a quality
service. IT systems were standardized throughout the business,
and an organizational culture was developed that emphasized
the need to capture and disseminate useful information about
each individual customer.
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• The desire to ensure hotels operated error-free and to retain
customers through a precision marketing strategy. To achieve this, Ritz-Carlton spent years accumulating in-depth knowledge
about its work processes, then combined technology with
individual skills and innovation, which has enabled Ritz-Carlton
to track individual customer preferences.
For instance, employees observe guests, record their preferences,
and store the data on a company-wide information network. This
enables other employees to reuse the information and provide
the most personalized service available, leveraging their contact
with the customer to shut out competitors. When customers
check in, they receive the room and location they prefer, and
throughout their stay Ritz-Carlton supervisors scrutinize relevant
details for each customer so that they can personalize service,
providing extra pillows, favorite beverages, preferred newspapers,and so forth.
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The Ritz-Carlton approach is a great example of the power of
mass customization—the ability to deliver rapidly, efficiently, and
profitably a range of products and services satisfying each individual
customer.
In practice
• Utilize employees at every level within your company, as well as
the benefits of technology, to listen to your market at a uniquely
advanced level.
• Store information on clients in an easily accessible way, to ensure
that a distinguished level of personalized quality is provided.
• Swiftly reorganize people, information, and processes when
necessary in order to deliver the benefits of a highly customized
and attentive service
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