Service Culture of Ritz-Carlton and the Way the Company Has Successfully Created and Maintained World-Class Service Culture
Ritz-Carlton has managed to successfully become a leading brand in luxury lodging through adhering to its standards in a rigorous manner. The Ritz-Carlton Company has built a world-class organization’s culture that is reflected in its customer beliefs. According to the company CEO, the description of the company culture is that it has been built on trust. The company management is obliged to live the organization’s values that they have contributed towards creating. According to the case, the company has also acknowledged that it is not possible for the service culture to prosper if it is not lived especially at the highest levels of the organization. It is as a result demonstrated that “an organization’s cultural climate is formed within a collective reservoir of the shared values, expectations, and commitments of their employees, managers, customers, and stakeholders’’ (Hoffman, & Bateson, 2010, p. 85). According to the case, to build a culture is a long term goal that has to be undertaken and embraced by all the organization employees.
According to the scholars, it is possible to interpret the organization culture of a specific company through using both direct and indirect customers’ experience. According to Hoffman and Bateson (2010, p. 119), “the overall quality of services provided tend to be defined by customers based on their cumulative experiences with the organization”. To maintain its best service as a world-class service culture Ritz-Carlton Company has continuously been conducting interviews over the phone to inquire and get more information from their customers concerning the service offered. Ritz-Carlton Company has also been cited as the only corporation in America which has managed to win the Malcolm Baldridge National Quality Award two times. The company has been identified as the best company by many analysts in the country for its effort of offering its employee’s continuous training.
The company applies both emotional and functional questions in its strategy of understanding whether the customers were served optimally and whether their expectations were met when being served by the company. The company on the functional side ensures that it obtains the customer’s response concerning the quality of meals served in that whether the meals were served hot or cold. The company also enquires about the quality of service, the customers views concerning the menu, the services obtained from the rooms, and the hygiene and cleanliness of the bedrooms that they occupied. The company, as a result, is in a position to understand the areas that need to be improved for it to meet and exceed customer’s expectations. The company has also set the indicators of enabling it to understand whether the customers were happy, for example, according to the case on emotional side, it uses an indicator of the sense of well-being. On the functional side, the company uses an indicator of the room was clean and as a result it manages to measure its effort in exceeding customer’s expectations and hence emerging as the leading company in the world-class service culture (Hoffman, & Bateson, 2010, p. 85).
The company has maintained its unique culture through strictly and consistently observing its motto which refers to the company employees as ladies and gentlemen who have the intentions of offering services to the ladies and gentlemen, in this case, referring to the company’s customers. For a company to sustain the level of being the world-class service delivery organization, it has to excel consistently as well as becoming a fast learner and adapting to competitive strategies. This could be through meeting the ever evolving needs of the customers by offering quality services that meet and exceed their expectations. According to the case, Ritz-Carlton Company has managed this through conducting research and hence analyzes the data, study the customer needs, make conclusions and predict the probable needs. Through carrying out thorough research, the company manages to set a trend and not following (Hoffman, & Bateson, 2010).
Target Customers That Ritz Carlton Tailors the Service Marketing Mix For
The company has worked to tailor the needs of its target customers through training the customers and offering regular teaching on its proprietary statements. The target customers for the company are the luxury customers who consider the quality of service rather than the cost. For the company to meet the needs of its luxury customers, it ensures that the location for the business is the best where the customers would be comfortable staying. The company also ensures that the physical products are exactly in line with the ones its luxury customers want. The company targets the customers who are intending to celebrate romantic weddings, holding meetings, hotel services and accommodations at a luxury and beautiful locations. The company also takes into consideration the future needs of the luxury customers of the business. This would help the company retain the existing customers and also win the potential clients from the competitors (Zeithaml, Bitner, & Gremler, 2010).
The Firm Offers Exceptional Service to Optimize Customers’ Experience by Managing the Influential Factors
The company has applied various strategies to make its customers happy. For instance, the company has applied one of the remarkable strategies of allowing its employees to spend an amount totaling to USD 2,000 to make a single customer happy and be fully satisfied. The company has used this strategy to indicate that it trusts its employees where they can as well exceed the amount with the approval from the manager. The strategy is intended to help employees meet the customers’ expectations and hence making them happy by creating a wonderful stay for the client (Aguinis, & Kraiger, 2009).
The employees use the amount to create outstanding experiences for the company’s customers and hence winning their loyalty. As a result, there are always high chances of repeat customers and referrals to the business from the existing loyal customers. Through trusting the company employees with the amount that is meant to meet the customer’s need, the company has managed to use them as a source of innovation. The employees should not act like robots to follow commands from supervisors, but they should use their skills to create innovative strategies for making the company’s customers happy. This has been clear in the Ritz Carlton where the employees, for instance, after realizing the customer has a birthday ensures that the room is well equipped for the celebration through ensuring there is a bottle of Champaign (Aguinis, & Kraiger, 2009).
The company has been involved in teaching its employees proprietary statement that it uses as a way of codifying its expectations concerning the service they offer to the customers. The training conducted by the company is conducted for all it employees who are approximately 38,000 in all its seventy-three properties in about twenty-four nations worldwide. Employee training has been a key tool for the company success and as a result, it ensures that it employees are well informed in advance concerning the steps that the company is intending to take. For instance, the company utilizes lineup, where employees are allowed to share the great, accomplishes of the day. The lineup takes about fifteen minutes daily, and it acts as a communication and a training tool for the company’s departments (Aguinis, & Kraiger, 2009).
The firm prices its service to create exceptional values for the target customers
The company has made its services create a lifestyle brand where the company can manage to offer the unique Ritz-Carlton lifestyle in a different way from a normal hotel format. The company has worked to represent the lifestyle brand to all its customers irrespective of the package that they intend to buy. For instance, the company has been representing a lifestyle brand to its both target and existing customers who are willing and have bought a number of weeks of fractional ownership and the one who are only spending a night in the hotel rooms. The company also prices its services using bundling price where the customer is charged a single price for the services offered. The pricing method has helped the customer obtain new and targeted customers because of the interdependence of the services offered by the company. For instance, a customer in need of a hotel restaurant could be in need of a hotel room and hence the exceptional services that the customers receive in a restaurant would create a need for using the hotel room. The company also uses the discount for the new customers and also charges preferably lower rates to the loyal customers (Verhoef et al., 2009).
The company has also focused on building a strong brand that is well recognized by both the potential and existing customers of the company. The company, as a result, has created a customer base that is strongly devoted to the brand and hence has managed to generate a substantial amount of revenue from its loyal customers. The loyal customers have as a result acted as a tool for creating referrals for the company from its targeted customers. To provide value to its target customer, the company has offered points per every package purchased. The customers can either win an airline trip or free offer from the points earned (Verhoef et al., 2009).
Ways a Firm Makes Its Service Available and Accessible To the Target Customers
Ritz-Carlton Company has focused on location as a major factor in ensuring that its target customers can access the services it offers. The company in its effort to ensure the targeted customers can access its services has ensured that its locations are the best for the luxury customers that it is targeting. The company has also ensured that its targeted customers can use credit cards to make the payments for the services they are willing to obtain from the company. The location for offering luxury customers with the wedding venues and meetings facility has also been considered where the company ensures that they are accessible to the targeted customers with ease. The company provides both indoor and outdoor venues for weddings and that are accessible by targeted customers in various parts of the world and at beautiful locations (Tynan, McKechnie, & Chhuon, 2010).
Ways the Firm Effectively Communicates With the Target Customers to Achieve a Desired Image and To Generate Profitable Business
The company has used the company website to effectively communicate with its targeted customers. The company has displayed luxurious and beautiful services that it offers to its customers as a way of creating the desired image to the targeted customers. The company also uses discounts as a strategy of winning the targeted and potential customers and it is also a way of generating more revenues for the business and hence increasing its profitability. The use of special offers like overnight packages is also used by the firm to win the targeted customers (Rahman, & Areni, 2014).
Aguinis, H., & Kraiger, K. (2009). Benefits of training and development for individuals and teams, organizations, and society. Annual review of psychology, 60, 451-474.
Hoffman, K., & Bateson, J. (2010). Services marketing: concepts, strategies, & cases. Cengage Learning.
Rahman, K., & Areni, C. S. (2014). Marketing strategies for services: is brand architecture a viable way forward?. Journal Of Strategic Marketing, 22(4), 328-346.
Tynan, C., McKechnie, S., & Chhuon, C. (2010). Co-creating value for luxury brands. Journal of Business Research, 63(11), 1156-1163.
Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L. A. (2009). Customer experience Creation: Determinants, Dynamics, and management strategies. Journal of Retailing, 85(1), 31-41.
Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2010). Services marketing strategy. John Wiley & Sons, Ltd.