UNIT 23

Why is it important to know your customer? What is the buying process?

NYANGOMA CHRIDIA YEAR 13

 Objective of Sheraton
Sheraton aims on creating an intuitive and holistic experience with spaces to connect, stay
productive, and being part of something.

Sheraton places a strong emphasis on creating an intuitive environment for guests. The design and
layout are meticulously crafted to anticipate and understand the needs and preferences of visitors,
ensuring a seamless and comfortable stay. From the moment guests enter a Sheraton property, the
intention is to guide them effortlessly through various spaces, enhancing the overall guest
experience.

The term "holistic" underscores Sheraton's commitment to addressing all aspects of a guest's stay
beyond providing a mere place to sleep. This involves considerations for work, relaxation,
socialization, and overall well-being. Sheraton's holistic approach implies that its spaces are designed
to cater to the diverse needs and interests of guests, creating an all-encompassing experience that
goes beyond traditional hotel offerings.

Recognizing the importance of social interaction and connectivity, Sheraton designs its spaces to
encourage guests to connect with each other. Whether through communal areas, lounges, or
purpose-built meeting spaces, Sheraton aims to facilitate connections, fostering a sense of
community and belonging among its guests.

Sheraton understands that many guests, whether traveling for business or leisure, may need spaces
that support productivity. This could include well-designed workspaces, high-speed internet, and
other amenities that contribute to a conducive environment for work-related activities. By providing
such features, Sheraton ensures that guests can seamlessly integrate work into their stay.

The combination of timelessness and a modern ambiance in Sheraton's design philosophy integrates
classic elements with contemporary trends. This balance aims to create an atmosphere that appeals
to a broad range of guests, transcending specific design fads. By blending the traditional with the
modern, Sheraton strives to offer an environment that feels both familiar and current, ensuring a
lasting appeal over time.
 Why is it important to know your customer?

Tailored Marketing and Communication

Tailored Marketing and Communication play a crucial role in Sheraton's objectives by enabling the
hotel brand to better understand its customers. This approach involves gaining insights into customer
preferences, needs, and behaviors, forming the basis for targeted marketing campaigns. Sheraton
leverages personalized marketing to go beyond simple customer name usage, focusing on crafting
content that directly speaks to individual interests and aligns with their purchasing history. The aim is
to foster a sense of connection, ensuring that customers receive messages specifically tailored to
their unique preferences. This personalization strategy enhances the overall customer experience
and contributes to increased resonance and brand affinity.

In Sheraton's marketing efforts, the concept of relevance is paramount. The tailored messages align
with customers' current needs and preferences, making them more likely to capture attention and
elicit a positive response. This emphasis on relevance not only enhances the customer experience
but also strengthens the connection between Sheraton and its guests, ultimately contributing to
increased brand loyalty. The hotel brand strives to create a marketing approach that resonates with
each individual, reflecting the diverse needs and interests addressed in its holistic guest experience
objectives.

Customer Satisfaction and Loyalty

When businesses understand their customers’ expectations, they can better meet and even exceed
them. This leads to higher levels of customer satisfaction, which, in turn, promotes customer loyalty.
Satisfied and loyal customers are more likely to make repeat purchases and recommend your
business to others.

By grasping what customers truly value and aspire to, businesses position themselves to not only
meet but exceed those expectations. Customer satisfaction emerges as the cornerstone of this
dynamic. When businesses effectively fulfill their promises and go the extra mile to create positive
interactions, they instill a sense of contentment in their customers. Whether it’s the quality of
products, the efficiency of services, or the overall experience, satisfied customers are more likely to
form a positive perception of the business.

The ripple effect of customer satisfaction is perhaps most evident in the realm of loyalty. Satisfied
customers are not just transient patrons; they evolve into loyal advocates for the brand. Loyalty is
not merely transactional; it is a deep-seated connection forged through consistent positive
experiences. Loyal customers, driven by satisfaction, exhibit a preference for a particular brand and
are more likely to choose it over competitors.

Product and Service Improvement

Customer insights are a valuable source of information for businesses to improve their products and
services. By understanding what customers like or dislike, businesses can make informed decisions
about enhancements or modifications to better meet their needs and preferences.
Customer insights are a wellspring of knowledge, rich with information about what resonates with
the target audience. By delving into what customers like or dislike, businesses gain a nuanced
understanding of their preferences, expectations, and pain points.

This understanding becomes a catalyst for informed decision-making regarding product and service
enhancements. When businesses align their offerings with the articulated and unarticulated needs of
their customers, they embark on a journey of improvement that transcends mere adaptation to the
market – it becomes a deliberate and purposeful evolution driven by a commitment to customer
satisfaction.

The iterative nature of this process enables businesses to stay attuned to the dynamic nature of
customer preferences. What delights customers today may evolve tomorrow, and businesses that
actively seek and incorporate customer feedback are better positioned to anticipate and respond to
these shifts.

Moreover, the feedback loop with customers fosters a sense of co-creation. Customers, knowing that
their opinions matter, feel a deeper connection to the brand. This engagement goes beyond
transactional relationships, creating a collaborative partnership where customers become
stakeholders in the brand’s journey of improvement.

The outcomes of this customer-centric innovation are multifold. Firstly, it enhances the overall
customer experience, aligning products and services more closely with customer expectations.
Secondly, it fosters brand loyalty, as customers appreciate the responsiveness of a business that
actively seeks to better meet their needs.

Effective Customer Service

Knowing your customer allows you to provide more effective and personalized customer service.
Understanding their history with your business, preferences, and any previous issues helps you
address their concerns in a timely and satisfactory manner.

The knowledge of a customer’s history with the business serves as a valuable resource in the service
interaction. Whether it’s acknowledging a customer’s loyalty, recognizing their past purchases, or
understanding their specific requirements, this personalized touch goes a long way in creating a
positive and memorable customer experience.

Preferences play a pivotal role in this customer-centric approach. Understanding how a customer
likes to communicate, their preferred channels, and even their preferred resolution methods allow
businesses to tailor their service interactions accordingly. This not only streamlines the process but
also showcases a level of attentiveness that resonates positively with the customer.

Equally important is the ability to address previous issues proactively. Businesses that keep a record
of past concerns and actively work towards resolving them demonstrate a commitment to customer
satisfaction. When a customer sees that their feedback has been heard and acted upon, it not only
resolves the immediate issue but also fosters a sense of trust and loyalty.

Increased Sales and Revenue

When businesses delve into the intricacies of how their customers make purchasing decisions, they
gain insights that transcend the transactional. This understanding becomes the compass for crafting
personalized strategies that align seamlessly with the unique preferences and buying patterns
exhibited by different customer segments.
Personalized marketing serves as the first movement in this symphony. Armed with insights into
customer preferences, businesses can tailor their marketing campaigns to speak directly to the needs
and desires of their audience. Whether through personalized emails, targeted advertisements, or
customized promotions, this approach ensures that the marketing messages resonate with the
individual customer, increasing the likelihood of engagement and conversion.

The second movement unfolds in the realm of customer satisfaction. When businesses actively work
to understand and meet the expectations of their customers, it creates a positive cycle. Satisfied
customers are more inclined to engage with the brand, make repeat purchases, and become loyal
advocates. This loyalty, rooted in satisfaction, not only bolsters the customer base but also
contributes significantly to increased sales over the long term.

The synergy between personalized marketing and customer satisfaction culminates in the ability to
make targeted offers and recommendations. Armed with a comprehensive understanding of
customer preferences, businesses can create offers that align with individual tastes and needs.
Whether it’s suggesting complementary products, providing exclusive discounts, or tailoring
promotions based on past purchases, these targeted offers increase the relevance of the offerings,
leading to higher conversion rates

Customer Segmentation

Understanding your customer base helps you segment them based on demographics, preferences,
and behavior. This segmentation allows you to create more targeted strategies for different customer
groups, maximizing the effectiveness of your efforts.

Customer segmentation is a reflection of the nuanced understanding businesses have of their diverse
customer base. By delving into the intricacies of demographics, preferences, and behaviors,
businesses gain insights that transcend the one-size-fits-all approach. This granular understanding
becomes the palette for segmenting the customer base into distinct groups, each with its own set of
characteristics and preferences.

Demographic segmentation provides businesses with a foundational understanding of their

customers. Factors such as age, gender, income, and location offer insights into the diverse
backgrounds of the customer base. This segmentation allows for tailored strategies that resonate
with the specific needs and aspirations associated with each demographic group.

Preferences play a pivotal role in customer segmentation. By recognizing and categorizing the varied
preferences of customers, businesses can align their offerings with the unique tastes and desires of
different segments. This targeted approach enhances customer satisfaction by providing products
and services that are specifically tailored to meet the preferences of each group.

Behavioral segmentation goes beyond static characteristics to capture the dynamic aspects of
customer interactions. Analyzing how customers engage with products, respond to marketing
initiatives, and make purchasing decisions unveils behavioral patterns. Businesses can leverage these
patterns to create strategies that resonate with the distinct behaviors exhibited by different customer
segments.

The power of customer segmentation becomes most evident in the tailored strategies that follow.
Armed with insights from demographic, preference, and behavioral segmentation, businesses can
craft targeted marketing campaigns, personalize communication strategies, and optimize product
offerings for each specific segment. This precision in strategy enhances the effectiveness of efforts, as
the messaging and offerings align seamlessly with the unique characteristics of each segment.
Adaptation to Market Changes

Markets evolve, and customer preferences change over time. Knowing your customer enables you to
adapt to these changes more effectively. This flexibility is crucial for staying competitive and relevant
in dynamic business environments.

Adaptation to market changes is not a reactionary response but a proactive strategy deeply rooted in
customer understanding. By delving into the intricacies of customer needs, behaviors, and evolving
expectations, businesses gain a nuanced perspective that goes beyond short-term trends. This
comprehensive understanding becomes a linchpin for strategic decisions, enabling businesses to
align their offerings with the ever-changing market landscape.

Anticipating shifts in customer preferences is a key facet of adaptation. By staying attuned to the
evolving needs and desires of customers, businesses can make informed adjustments to their
products, services, and overall strategies. This foresight allows for a proactive response to emerging
trends, positioning the business as agile and responsive in an ever-changing market

Risk Mitigation

When customers feel understood and valued, it builds trust in your brand. A positive brand image,
based on an understanding of your customer’s needs, contributes to long-term success and a
positive reputation.

When customers feel not just noticed but truly understood and valued, it becomes the bedrock on
which trust is built. This trust, in turn, lays the foundation for a positive brand image that contributes
not only to immediate success but also to long-term resilience and a stellar reputation.

At the heart of this symbiotic relationship is the customer’s perception of being understood. When
businesses demonstrate a genuine understanding of customer needs, preferences, and concerns, it
establishes a connection that transcends transactional interactions. This connection becomes the
essence of trust, as customers believe in the sincerity and authenticity of the brand.

Trust is the currency of lasting relationships, and its impact extends beyond individual transactions. A
positive brand image, rooted in the trust nurtured through customer understanding, becomes a
powerful asset for businesses. This positive image is not merely about having a recognizable logo or
catchy tagline; it’s about being synonymous with reliability, quality, and a genuine commitment to
customer satisfaction.

Customer understanding plays a pivotal role in shaping this positive brand image. It goes beyond
superficial gestures and delves into the core values and promises that resonate with the customer
base. A brand that reflects an intimate knowledge of its customers fosters an emotional connection,
creating a positive perception that extends far beyond the immediate product or service offering.

Moreover, a positive brand image contributes significantly to long-term success. In a marketplace

inundated with choices, customers gravitate towards brands that they perceive as trustworthy and
aligned with their values

Building Trust and Brand Image

When customers feel understood and valued, it builds trust in your brand. A positive brand image,
based on an understanding of your customer’s needs, contributes to long-term success and a
positive reputation.
When customers feel not just noticed but truly understood and valued, it becomes the bedrock on
which trust is built. This trust, in turn, lays the foundation for a positive brand image that contributes
not only to immediate success but also to long-term resilience and a stellar reputation.

At the heart of this symbiotic relationship is the customer’s perception of being understood. When
businesses demonstrate a genuine understanding of customer needs, preferences, and concerns, it
establishes a connection that transcends transactional interactions. This connection becomes the
essence of trust, as customers believe in the sincerity and authenticity of the brand.

Trust is the currency of lasting relationships, and its impact extends beyond individual transactions. A
positive brand image, rooted in the trust nurtured through customer understanding, becomes a
powerful asset for businesses. This positive image is not merely about having a recognizable logo or
catchy tagline; it’s about being synonymous with reliability, quality, and a genuine commitment to
customer satisfaction.

Customer understanding plays a pivotal role in shaping this positive brand image. It goes beyond
superficial gestures and delves into the core values and promises that resonate with the customer
base. A brand that reflects an intimate knowledge of its customers fosters an emotional connection,
creating a positive perception that extends far beyond the immediate product or service offering.

Moreover, a positive brand image contributes significantly to long-term success. In a marketplace

inundated with choices, customers gravitate towards brands that they perceive as trustworthy and
aligned with their values.

Innovation and Future Planning

By maintaining a robust connection with the customer base, businesses can discern emerging needs,
positioning themselves strategically for long-term success. A profound understanding of customer
behavior, preferences, and evolving expectations serves as a guidepost for businesses seeking to
innovate and plan for the future.

By staying connected with the customer base, businesses can tap into a valuable source of insights.
This continuous engagement unveils emerging trends, preferences, and technological advancements
that may impact the industry. The proactive collection of customer feedback becomes a treasure
trove of information, offering a window into the evolving landscape and serving as a catalyst for
forward-thinking strategies.

The iterative nature of this customer-centric approach enables businesses to adapt to changing
circumstances effectively. What may be a trend today could evolve into an integral customer
expectation tomorrow. By keeping a pulse on customer sentiments and behaviors, businesses
position themselves to not only respond to change but to lead it through innovative solutions.

Moreover, customer understanding becomes a cornerstone for innovation. Businesses that intimately
comprehend the challenges and aspirations of their customers are better equipped to develop
products and services that truly resonate
 Buying process
Recognition of Customer Need

This is the initial trigger point where a customer realizes a need or problem that needs to be
addressed. It could be as simple as running out of a product, or more complex. Businesses often try
to stimulate need recognition through advertising and promotional activities.

For example:

Advertisement campaigns showcasing comfortable accommodations, exclusive amenities, or special

packages can trigger the recognition of a need for a relaxing getaway or a comfortable stay during
business travel.

Information Search

In this stage, the customer seeks more information about potential solutions to their need. They
might look up product specifications online, read customer reviews, or ask for recommendations
from friends and family. The amount of information searched for can depend on factors like the
importance of the need, the complexity of the product, and the customer’s previous knowledge and
experience.

For example:

Customers often turn to online platforms to gather information about hotels. This can include visiting
hotel websites, third-party booking platforms, and travel review sites.

Hotels that actively engage on social media platforms provide another avenue for potential guests to
gather information. Social media pages often showcase real-time updates, customer testimonials,
and responses to inquiries.

Evaluating Alternatives

Here, the customer compares different products or services to determine which best fits their needs.
They might consider factors like price, quality, brand reputation, and after-sales service. For example,
when buying a car, a customer might compare different models based on their price, fuel efficiency,
safety features, and reviews.

For example:

One of the primary factors in the evaluation stage is the price of accommodation. Customers
compare the room rates of different hotels to find options that align with their budget.

Customers evaluate the amenities and services offered by each hotel. This includes room features,
dining options, Wi-Fi availability, fitness facilities, and other perks.

Purchase Decision

This is the point where the customer decides to make a purchase. However, there can still be
obstacles to the purchase, such as a long wait time, a complicated checkout process, or a last-minute
negative review. Businesses need to make this process as smooth as possible to prevent customers
from abandoning their purchase.

For example:
Hotels should provide a seamless and user-friendly online booking process. A complicated or lengthy
reservation system can frustrate customers and lead to abandoned bookings. Streamlining the
process enhances the likelihood of successful conversions. They could clearly communicate the total
cost of the stay, including taxes and any additional fees, to avoid surprises during the checkout
process. Transparent pricing builds trust and reduces the likelihood of customers abandoning their
booking.

Purchase

This is when the transaction takes place. The customer pays for the product or service and acquires
it. The ease and convenience of the purchase process can greatly affect the customer’s satisfaction
and likelihood of making future purchases.

For example:

For physical check-ins, hotels should strive to make the process as efficient as possible. Long wait
times or complicated procedures can create a negative experience for guests.

Personalize the check-in experience by using guest information to tailor greetings and services. This
contributes to a positive first impression and enhances the overall customer experience.

Post-Purchase Evaluation

After the purchase, the customer reflects on their decision. If the product or service meets or
exceeds their expectations, they are likely to feel satisfied and may make repeat purchases or
recommend the product to others. If the product falls short of their expectations, they may feel
dissatisfied and express their disappointment through negative reviews or word of mouth.

For example:

Hotels can engage in post-stay communication to gather feedback and address any concerns. This
proactive approach demonstrates a commitment to customer satisfaction and provides an
opportunity to resolve issues.
Why is it important to know your customer? What is the buying process?

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