Does CRM System Really Matter?:An Exploratory Study of CRM System in the Hotel Industry in Singapore

Organizations in practically every industry are now adopting Customer Relationship Management (CRM) systems as a mission-critical business strategy. As CRM systems evolve from mere technology solutions used for capturing customer interactions into strategies aimed at deriving maximum value from them, businesses today realize the importance of these systems in attaining and sustaining competitive edge. Hotel industry emphasizes customer service and multiplicity of customer touch points. Consequently, hotels may be expected to place great importance on the CRM in order to achieve and sustain their competitive edge. Surprisingly, an exploratory study of four hotels in Singapore, which vary in size, market (local or global) and target customers (leisure guests or business travelers), shows that some of them do not use CRM system or exploit its potential. This paper explores and presents the reasons behind this phenomenon.