Factors affecting the successful implementation of customer relationship management in 3-to-5-star hotels in Viet Nam

Abstract

The study aims to assess the factors affecting the successful implementation of customer relationship management (CRM), as well as the relationship between the successful implementation of CRM and customer loyalty, in 3-to-5-star hotels in Vietnam. The study carried out integrating 3 theories RBV, RM and CM to identify the main components of CRM: human resources, technology and processes. On that basis, the article has identified 6 factors affecting successful CRM implementation in relation to the main components of CRM including: senior leaders’ commitments, CRM strategies, business procedures, hotel culture, technology infrastructure and database. By survey with a total sample size of 396 questionnaires. The participants included executive managers, vice directors, head of departments and head of divisions 3–5 star hotels in Hanoi, Ho Chi Minh City and Da Nang – 3 tourist cities of Vietnam in the list of 10 best cities in Southeast Asia. They were directly engaged in the management and execution of hotel operations, including CRM implementation. Upon being filtered, the data was analyzed by a Cronbach’s Alpha coefficient, regression analysis, and hypothesis testing to measure the impact level of the factors affecting the successful implementation of CRM, and the relationship between the successful implementation of CRM and customer loyalty. The findings obtained indicate that all 6 factors have a positive impact on the successful implementation of CRM, and the successful implementation of CRM has a positive and significant impact on customer loyalty. Additionally, theoretical and practical implications were proposed to help managers of 3-to-5-star hotels in Vietnam gain a better understanding of the importance of resources, so as to make the best preparations before implementing CRM and building customer loyalty. Further research orientations were also presented.

Keywords:

• CRM
• loyalty
• hotels

REVIEWING Editor:

• Pier Luigi Sacco, Humanities, IULM University, Milano, Italy

SUBJECTS:

• Customer Relationship Management (CRM)
• Asian Business
• Hotel Management

Introduction

Hospitality is described as a global, fast-growing, highly-profitable and fiercely-competitive industry (Chahal & Kumari, 2011). Customers of this industry are highly price-sensitive and disloyal to brands, but more demanding of quality (Sigala, 2005). High competition and demand in the hospitality sector pose numerous challenges to hotels. Therefore, it is increasingly difficult for hotels to survive and prosper in the current business environment. In this context, customer relationship management (CRM) is considered an important solution (Lo et al., 2010; Luck & Lancaster, 2003).

CRM as a modern marketing strategy came to the attention of hotel managers’ in the early 1990s because of its focus on gathering customers’ information and increasing the likelihood of customer satisfaction and retention (Rahimi, 2017). Since then, it has been intensely adopted by different hotels to enhance their relationship with customers and increase the business’s profits (Rahimi, 2017). CRM solutions in hotels aim to seek, gather and store the right guests’ information towards identifying and retaining the most profitable customers and improving the profitability of less profitable customers and developing the quality of the services (Rahimi & Gunlu, 2016; Rahimi & Kozak, 2017).

In Vietnam, the hotel business has been a potential market in the past few years. Hanoi, Ho Chi Minh City and Da Nang are destinations with a high supply of 3-to-5-star hotels. However, since the beginning of 2020, the Covid-19 pandemic has pushed the hotel business sector, both globally and domestically, into great difficulty. According to a report by Savills Vietnam (2021), in Hanoi - the capital of Vietnam, hotel rents and occupancy dropped sharply. The average room rate reached 94.4 USD/room/night, down nearly 4% compared to 2020 and the average room capacity reached 26.2%, down about 3%. In Ho Chi Minh City, the total supply of only 10,400 rooms came from 74 hotel projects, down 22% QoQ and down 27% YoY. With the effects of the 4th epidemic and strict distancing regulations, the occupancy rate of hotels in 2021 is only 18%, the average room rate is only 69 USD/room/night. In Da Nang, one of Vietnam’s most attractive and key tourist destinations, also faced record occupancy and rental rates decline compared to recent years. Amid the severe competition and negative impact of COVID-19, implementing CRM is seen as an effective measure to assist hotels to communicate and strengthen their relationships with customers, thus intensifying customer loyalty.

Although CRM can bring numerous benefits to hotels, it is by no means easy to implement successfully. Smith (2006) believed that, to successfully implement CRM, it is necessary to understand the reasons for failure. Chen and Popovich (2003); Mendoza et al. (2007); Piskar and Faganel (2009); and Urdziková et al. (2012) summarized some reasons for failure as follows: CRM is only considered as a technological software to manage customer data; there is no commitment from the top leaders; CRM strategies and visions are not specific; the quality of data is poorly managed and inadequately integrated; corporate culture has not been built to support CRM implementation; the management of structural changes and restructuring remains poor; and there is no specific measure for activities (such as training staff on CRM and tracking customers).

However, empirical discussions on the factors affecting the implementation of CRM and methods to generate customer loyalty are more concerned with other stimulating factors, such as service quality rather than CRM. The successful implementation of CRM to loyalty creation has not yet been adequately investigated in the literature. The research scope of the article is based on the integration of theories of RBV, RM and CM to identify a model of factors affecting successful CRM implementation and loyalty. These influencing factors have been identified in relation to the CRM process and key CRM components relevant to the hospitality industry context. The survey subjects were selected as administrators to assess factors affecting successful CRM implementation and loyalty. Therefore, this article does not study loyalty but only studies the factors that affect customer loyalty. The research focuses on the context of 3 - 5 star hotels because in Vietnam, the hotel business is always a potential market, especially 3 - 5 star hotels account for a large proportion of the total supply of the market. Furthermore, the CRM implementation process is a complex, lengthy and challenging task, involving all departments in the hotel, changing the entire process or way the hotel operates. Therefore, CRM is mostly only deployed at 3–5 star hotels.

The paper is organized as follows: The theoretical grounds are discussed first, followed by an in-depth literature review, the research hypothesis and research methods, research discussion and implications, conclusion, and finally, the research limitations and some recommendations for further research.

Theories related to customer relationship management

The current studies on CRM have been consolidated on the basis of the theories of Resource Based View (RBV) (Coltman, 2007; Keramati et al., 2010; Wang & Feng, 2012); Relationship Marketing (RM) (Shrivastava & Kale, 2003; Jayachandran et al., 2005; Ata & Toker, 2012), and Change management (CM) (Chen & Popovich, 2003; Mendoza et al., 2007; Mohammad Almotairi, 2008).

RBV is considered to be the theoretical foundation for research on management (Keramati et al., 2010). According to Coltman et al. (2011), RBV provides multi-dimensional views on CRM. It attempts to link available resources and capacities to raise the overall business performance of enterprises. CRM is conceptualized as an internal function with the capacity to exploit and regulate resources, such as technology infrastructure and human resources, to ensure a strong association between enterprises, customers and partners. Based on the theories of RBV, research on CRM has identified the visible and invisible forces of enterprises that participate in CRM implementation, including CRM technology and human resources. RBV theories are often applied to explain the factors affecting the use of enterprises’ resources, and to enhance their competitive advantages and business performance.

RM is a theory introduced in the mid-1980s, and its application has quickly spread (Callaghan & Shaw, 2001). By nature, RM reflects the relationship between an organization and its customers, which are strengthened by attractive points created by marketing activities, and in turn lead to customer retention. RM is recognized as the foundation of CRM (Reinartz et al., 2004), and was established as a procedure that identifies customers, manages their understanding, and develops stronger relationships with them (Srivastava et al., 1999). CRM has become an extended branch of RM, with the additional component of information technology that allows an enterprise to manage its customer database to improve customer relationships (Ryals & Payne, 2001). When researching CRM based on the RM theory, researchers typically focus on customer management technology. CRM is applied to combine between customer support centres, ERPs and data exploitation centres.

CM first appeared in the mid-20^th century with Kurt Lewin’s Change Model (1940). The development process of the CM theory has introduced many change models in enterprises. CM consists of three main levels: managing personal changes, managing organizational changes and managing corporate changes. CM theory has been used in research on CRM because its implementation affects all activities and functional departments of enterprises, which need to change to be compatible with project goals. According to Armenakis and Harris (2002), CRM is implemented based on three stages of change: being ready for change, implementing change and maintaining change. CRM procedures require changing business models towards customer-centred strategies. According to Mendoza et al. (2007), all business procedures involve managing direct and indirect interactions with customers. Moreover, CM affects all members of the organization, from the top leaders to junior staff (Gilley et al., 2009). When researching the components of CRM based on the CM theory, researchers pay special attention to the changes that take place in each stage of the change process, especially the stage of implementing these changes. Therefore, human resources and procedures (Chen & Popovich, 2003; Mendoza et al.,2007; Mohammad Almotairi, 2008) are the most important factors.

A review of theories related to CRM reveals that each theory has identified the components of CRM, and the contributions of each component vary depending on the CRM implementation level. With the RBV theory, the CRM components include: human resources and technology to ensure the links between enterprises, customers and partners. With the RM theory, researchers typically focus on the technology factor to manage customers. With the CM theory, human resources and procedures are of greater concern. In the framework of this research, the article will carry out an integrated study of 3 theories RBV, RM and CM to identify the main components of CRM. On that basis, the article will identify the factors affecting successful CRM implementation in relation to the main components of CRM.

Literature review and research hypotheses

Padilla-Meléndez et al. (2013) emphasized the importance of influential factors such as CRM strategies, business procedures, corporate culture, technology infrastructure, customer database and commitments from top leaders to successfully implement CRM in hotels. Some researchers noted that implementing CRM successfully is likely to create loyal customers (Amoako et al., 2012).

Chen and Popovich (2003) pointed out that implementing CRM successfully requires the integration between humans, procedures and technology.

The literature review shows that the theories that have been used to identify CRM components include RBV theory, RM and CM. However, with each theoretical point of view, the factors affecting CRM implementation are identified differently and have not yet been linked with the main components of CRM. The number of studies integrating these theories is very limited, especially in the context of the hospitality industry. Besides, some researchers have shown that CRM is also capable of creating customer loyalty (Amoako et al., 2012; Davids, 1999). However, only a handful of studies have investigated the impact relationship of successful CRM implementation on loyalty.

In Vietnam, research projects on CRM mainly focus on exploiting in the fields of retail, finance and banking. The number of researches on CRM of hotels is very limited, and there is no research on CRM of 3–5 star hotels.

Factors affecting successful CRM implementation are mentioned in the documents of researchers and practitioners on CRM, specifically in Table 1.

Table 1. List of factors affecting the successful implementation of CRM.

Authors	Factors affecting the successful implementation of CRM
Marianna Sigana	Managing intellectual, information technology and communication; marketing relationships (including internal marketing: corporate culture, external marketing: customer orientation, and customer interaction)
Mendoza et al. (2007)	Care of senior leaders; diversity in team principles; target identification; unity between departments; strategies to communicate CRM to staff; commitments of staff; customer information management; customer service, automation sales; automation marketing; support management; customer contact management; united information system
King and Burgess (2008)	Support of senior leaders; CRM communication strategies; intellectual management capacity; data sharing; technology; changes in customer culture/ orientations; abilities to change procedures; unity in the system
Arab et al. (2010)	Technology; procedures; humans
Ahmad et al. (2012)	Customers, interactions with customers, customer database, technology and humans in organizations
Abdul Alem Mohammed (2012)	Customer orientations, CRM organization, intellectual management, technology-based CRM
Budiono Hardjono and Lai Pooi San (2017)	Customer orientations, CRM organization, intellectual management, technology-based CRM
Rakiki (2018)	Customer orientations, senior management support; CRM training orientations, customer database, customer informing procedures, customer interaction
Bukola et al. (2019)	Customer orientation, customized services, service quality

Source: summarized by the research team.

Choosing the factors that best suit this study is based on the following criteria:

1. Affecting factors must be generally agreed upon in research materials;

2. Affecting factors must be related to reasons for failure in CRM;

3. Affecting factors that are chosen must be related to the main components of CRM as stipulated in the integration of the three main theories, including RBV, RM and CM;

4. Affecting factors must suit the hospitality context in Vietnam;

Firstly, with criteria (1) and (2), the research selected six groups of factors affecting the successful implementation of CRM, as presented in Table 2.

Table 2. Selecting factors affecting the successful implementation of CRM in hotels.

No.	Affecting factors	Reasons for selection
1	Commitments of senior leaders	Widely accepted by researchers Related to reasons for failure of CRM implementation: lack of commitments from top leaders (Sherif and Newby, 2007; Chalmeta, 2006)
2	CRM strategies	Widely accepted by researchers Related to reasons for failure of CRM implementation: CRM strategies and visions are not specific (Sherif and Newby, 2007; Chalmeta, 2006)
3	Business procedures	Widely accepted by researchers Related to reasons for failure of CRM implementation: management of structural changes and restructuring remains poor (Kale, 2004; Forsyth, 2001)
4	Corporate culture	Widely accepted by researchers Related to reasons for failure of CRM implementation: corporate culture has not been built to support CRM implementation (Chalmeta, 2006; King and Burgess, 2008)
5	Technology infrastructure	Widely accepted by researchers Related to reasons for failure of CRM implementation: CRM is only considered as a technological software to manage customer data (Arab et al., 2010)
6	Database management	Widely accepted by researchers Related to reasons for failure of CRM implementation: poorly managed and inadequately integrated (Meyer and Kolbe, 2005)

Source: Summarized by the research team.

Secondly, with criteria (3), the selected salient factors must be related to CRM components. Based on the integration of the three theories (RBV, RM and CM) on CRM, there is a widely-accepted view among researchers on the primary CRM components, including technology, humans and procedures. Therefore, when selecting the factors affecting CRM implementation, it is crucial to include the links between the three components of humans, procedures and technology. The aim of linking the affecting factors with the main CRM components is to ensure that each affecting factor is virtually related to CRM. It is thus crucial to identify the nature of each affecting factor in relation to the main components and consider that more than one CRM component may be determined by one affecting factor (Mendoza et al., 2007).

Factors affecting CRM implementation are, by nature, related to CRM components directly or indirectly (Table 3). Therefore, six selected groups of affecting factors all meet the requirements for the links with the main components of CRM, including humans, technology and CRM procedures (Table 4).

Table 3. Linking affecting factors on the successful implementation of CRM with the main CRM components.

Affecting factors	Humans	Technology	Procedures
Commitments of senior leaders	x
CRM strategies	x
Business procedures			x
Corporate culture	x		x
Technology infrastructure		x
Database management		x	x

Source: Summarized by the research team.

Table 4. Variables and measurements.

No.	Observation variables	Source
1	Commitments of senior leaders	Mendoza et al. (2007); King and Burgess (2008); Rakiki (2018); Arab et al. (2010); Helen M. Dah et al (2021)
	Senior leaders direct the CRM implementation process
	Senior leaders are aware of the relations between visions, missions and CRM strategies
	Senior leaders provide necessary resources and budgets for CRM implementation
	Senior leaders remove barriers to CRM implementation
2	CRM strategies	Mendoza et al. (2007);Abdul Alem Mohammed (2012); Rakiki (2018); Bukola et al. (2019)
	CRM strategies are customer-oriented
	CRM strategies establish clear and sufficient goals
	CRM strategies are built up and developed on the basis of business strategies
	CRM strategies are communicated to all divisions
3	Business procedures	King and Burgess (2008); Arab et al. (2010)
	Business procedures are changed towards placing customers at the centre
	Business procedures are automated
	Business procedures are designed consistently in all customer interaction channels
	Business procedures related to customers are analyzed and evaluated
4	Corporate culture	Chalmeta (2006), King and Burgess (2008),
	Staff are aware of the importance of CRM implementation
	Divisions in the hotels work towards the common goals when implementing CRM
	Collaboration procedures between divisions in the hotels are clearly stipulated
	Staff of different divisions cooperate when implementing CRM
	Staff are willing to participate in CRM implementation
	Hotels have staff evaluation and remuneration systems
5	Technology infrastructure	King and Burgess (2008), Arab et al. (2010), Ahmad et al. (2012), Abdul Alem Mohammed (2012), Rakiki (2018); Sofi et al. (2020); Lonashree Sanasam et al (2022).
	Hardware system is appropriate
	Customization software is available
	Data archive is highly security
	Data exploiting system is consistent
	Data analyzing tools are modern
	The system updates technological advancements
6	Database management	King and Burgess (2008), Ahmad et al. (2012), Rakiki (2018),
	The data collected is complete and appropriate
	Data is constantly updated to database
	Data is synchronously shared to different divisions
	Database management modes are effective
7	Successful implementation of CRM	Urdziková et al. (2012), Mohammadhossein and Zakaria (2012); King and Burgess (2008); Bhattacharya (2011) Vijay Pal Dhaka and Pooja Nahar (2014)
	Reducing costs
	Increasing customer satisfaction
	Increasing profits from customers
	Interacting more effectively
8	Loyalty	Bowie and Buttle (2007), Litvin et al. (2008), Goyette et al. (2010), Lu et al. (2014)
	Repeated Purchase
	Word of Mouth
	Customer Lifetime Value

Thirdly, the six selected groups of factors affecting the successful implementation of CRM all meet the criteria (4); they are completely appropriate in the contexts and specific features of the hospitality industry for the following reasons:

• According to Singala and Luck and Lancaster (2003), CRM is significant to hotel business activities. The differences in products and services as well as the specific features of the hospitality industry have made it highly imperative to implement CRM in the hotel industry.

• Unlike other business sectors, the hotel business requires a high interaction between enterprises and customers. Therefore, CRM is a business strategy used to select and manage the most valuable customer relationships. CRM applications enable hotels to manage customer relationships effectively, as long as they have the commitments and support of leaders, appropriate strategies and corporate culture (Leaders’ commitments, CRM strategies and corporate culture). In the hotel sector in particular, products (i.e. hotel rooms) are similar, but the quality provided to customers varies greatly, depending on the contact staff.

• The uniformity in hotel products and the differences in customer demand have highlighted the importance of CRM. Besides, the hospitality sector is highly information-sensitive (Piccoli et al., 2003). The availability of information affects both hotels and customer access. However, customers that can conveniently access the available information via the content created by users have created many challenges for hotels (customer database).

• Sarmaniotis et al. (2013) discussed the support of technology in facilitating data collection in different touch points such as room bookings and check in and check out times. This enables hotel owners to adjust their services and promotional programs based on the hotel’s preferences (technology infrastructure).

• According to these distinctive features, when using hotel products, customers typically focus more on soft factors such as personal care and treatment. It is established that most failures in gaining CRM benefits are due to the lack of internal strategies (cooperate culture and business procedures).

With the four criteria used as the foundation to select the groups of affecting factors, the research identified six groups of factors affecting the successful implementation of CRM, including: commitments of senior leaders, CRM strategies, business procedures, corporate culture, technology infrastructure and database.

Commitments of senior leaders

This factor focuses on the readiness of the top leaders to provide sufficient necessary sources for CRM implementation (Almotairi, 2009). For a CRM project to be successful, the first step is to gain the support and commitments from the top leaders towards the initiatives involved. This support will determine the success or failure of CRM. According to Sarmaniotis et al. (2013) and Padilla-Meléndez and Garrido-Moreno (2013), the implementation of CRM requires the cooperation of all departments and affects all activities of the hotel, so the instructions and directions of the top leaders will affect the procedures and the change in these procedures, the training, and staff motivation. Croteau and Li (2003) claim that top managers should show their support to CRM programs by participating in sharing customer awareness and perceiving CRM as part of the hotel’s vision and mission, and then developing a friendly culture within the organization. The lack of commitments in setting a budget and providing capital is also a significant barrier to positive the relationships to implement CRM effectively. CRM, as a strategy to renovate a hotel’s business, requires strong promotion and support from leaders and organizational readiness is key to Successful CRM Implementation in Hotel Industry (Helen M. Dah et al, 2021). Therefore, the following hypothesis was proposed:

• H1: The commitments of senior leaders have a positive impact on the successful implementation of CRM.

CRM strategies

CRM acts as a strategy to build profitable relationships with customers. Sheth and Parvatiyar (2002); Bull (2003); Zablah et al. (2004), Payne and Frow (2005); and Kumar et al. (2006) defined CRM as a customer-oriented strategy. Therefore, when implementing CRM, hotels need to build their organizational culture towards customer orientations, develop CRM strategies, and commit to placing customers at the centre of the process. According to Siebel and King and Burgess (2008), CRM strategies comprise a set of targets and orientations for hotels’ activities in building, developing and maintaining long-term relationships with customers. Therefore, the targets of CRM strategies are reflected in the number and percentage of loyal and satisfied customers. A successful CRM strategy needs to identify targets clearly and specifically. When initially implementing CRM, a hotel needs to develop adequate awareness of the CRM strategies, making them appropriate with the hotel’s general strategies. Next, it needs to communicate these strategies to different divisions so that they become aware of the hotel’s CRM strategies. Therefore, the following hypothesis was proposed:

• H2: CRM strategies have a positive impact on the successful implementation of CRM

Business procedures

CRM is a business strategy (Chen & Popovich, 2003), and the success of CRM implementation requires changes in business procedures towards placing customers at the centre of business activities (King & Burgess, 2008; Sivaraks et al., 2010). As such, business procedures can be designed consistently in all customer communication channels. Besides, the changes in business environments and customer demand are also factors that affect business procedures. Therefore, to ensure that the procedure is effectively implemented, all business activities that involve customer interactions must be analyzed and evaluated frequently to identify mistakes and make timely adjustments. Although CRM has an impact on the entire organization, procedures with customer interactions should be prioritized when integrating and automating business procedures. According to Mendoza et al. (2007), the main business procedures that need to be dealt with in the process of CRM implementation are marketing, sales and services. Therefore, the following hypothesis was proposed:

• H3: Business procedures have a positive impact on the successful implementation of CRM

Corporate culture

According to Robbin, corporate culture is a system of values, beliefs, rules and common ideas shared by members of the organization. They orient the behavior of laborers in enterprises. These beliefs are implicitly agreed upon by members in their behaviors. The factor of corporate culture is summarized by Sigala, 2005; and Ada S. Lo et al., 2010. Accordingly, with CRM, corporate culture is the barrier that is the hardest to overcome, since managers need to change the attitude of the staff and encourage them to be aware of the importance of CRM. Moreover, this involves building a working culture, establishing a cooperation agreement, building a team spirit among staff from different roles and departments, creating effect integration and communication. These factors require the participation of people in different hierarchies. According to O’Reilly and Paper (2012), all staff members need to be encouraged to participate in the sharing of culture, learning new work structures, and taking part in training systems and programs. CRM requires the entire organization to work towards setting goals via building strong customer relationships (Sin et al., 2005). Therefore, the CRM implementation process calls for all divisions to work towards common goals. The readiness and enthusiasm of the staff have a direct impact on the operations of the hotel, and help to develop long-term profitable customer relationships to build loyalty. Therefore, the following hypothesis was proposed:

• H4: Corporate culture has a positive impact on the successful implementation of CRM

Technology infrastructure

Technology infrastructure is built up by inheriting measurement scales in the work by Foss and Stone (2001); Ryals and Payne (2001); Starkey and Woodcock (2002); Chen and Popovich (2003); Sigala (2005); Iriana and Buttle (2008). Technology infrastructure is a decisive factor to save, manage, exploit and analyze valuable customer data. Various aspects of technology such as data archives, customization software, system automation, support tables, call centres and internet effects should all be considered in relation to the results of the successful implementation of CRM. Technology-based CRM needs appropriate hardware and software to serve customers and integrate customer information into a comprehensive, centralized and dynamic database. Besides, hotels need to care about securing customer information so that they do not lose customers to rivals. Big data generated from CRM information helps a hotel in profiling its clients (Sofi et al., 2020). Thus, the emergence of technology has been a boon to organisations as it plays an important part in successful CRM implementation in the organisation (Lonashree Sanasam et al, 2022). Therefore, the following hypothesis was proposed:

• H5: Technology infrastructure has a positive impact on the successful implementation of CRM

Database management

Customer database is inherited from CRM research by Chen and Popovich (2003); Stone et al. (2001); Francis Buttle (2004); Zablah et al. (2004); Sigala (2005); and Ada S. Lo et al. (2010). In the hotel industry, it is not a difficult task to collect information and build a customer database, as customer interactions and contact information can be accumulated as a natural part of customer contact. According to Keramati et al. and Khan et al. (2022), the salient features of a customer database include: the database must be updated regularly and can be transported to necessary spots that are appropriate to its usage, and it must also be kept confidential and avoid being lost. However, databases in hotels must be managed in a proper manner so that they can follow and organize talks and interactions with customers in order to collect and save their information and activities. This enables them to provide the best customer support services and marketing and sales teams. Therefore, the following hypothesis was proposed:

• H6: Database management has a positive impact on the successful implementation of CRM

Successful implementation of CRM and customer loyalty

Implementing CRM is a complicated and challenging task, as it dynamically changes entire procedures or approaches to doing business in enterprises in general, and hotels in particular. When implementing CRM, some hotels may gain certain success, while others fail (Chen & Popovich, 2003; Farnaz Arab et al., 2010; Urdziková et al., 2012). The following criteria were used to measure the successful implementation of CRM in hotels:

• Reducing costs (Mohammadhossein & Zakaria, 2012; Padilla-Meléndez, 2013). Implementing CRM successfully helps hotels save management costs as well as costs related to customers. Costs spent to have customers may be reduced due to the reduction in marketing costs, as costs to gain new customers are 5–6 times higher than costs needed to retain current customers.

• Increasing customer satisfaction (King & Burgess, 2008; Bhattacharya, 2011). Increasing customer satisfaction is among the benefits and goals of CRM implementation in hotels. Measuring customer satisfaction helps to measure other customer behaviors such as loyalty.

• Increasing profit from customers (Ragins & Greco 2003; Piskar & Faganel, 2009; Vijay Pal Dhaka và Pooja Nahar, 2014). When customers buy more, hotels will make higher profits. Higher profits may come from extra sales and other activities that satisfy customers.

• Interacting more effectively (Hsin Chang, 2007; Urdziková et al., 2012). The successful implementation of CRM provides hotels with effective transactions and creates favorable conditions for staff members to better interact with customers and use various means to access customers more easily and effectively.

However, implementing CRM successfully is not the ultimate goal of enterprises. Some researchers noted that CRM can create loyal customers (Davids, 1999; Amoako et al., 2012). Faed emphasized that the goals of CRM are to retain, keep and increase customer loyalty. Therefore, implementing CRM successfully is considered an intermediary factor to help enterprises build customer relationships and gain their loyalty. According to researchers (Akroush et al., 2011; Josiassen et al., 2014; Sin et al., 2005; Hong-kit Yim et al., 2004), measurements of CRM results are mostly based on the impact of the implementation of CRM.

Inheriting the discussed criteria by other researchers, this study applied three criteria to measure loyalty, including Repeated Purchase (RP), Word of Mouth (WOM) and Customer Lifetime Value (CLV).

• Repeated Purchase. The signal of loyal customers is shown via criteria such as repeated purchase (Kim et al., 2001; Bowie and Buttle, 2007; Wu & Li, 2011; Shirin & Puth, 2011). Bowie and Buttle (2007) pointed out many benefits of repeated purchase in hotels. Repeat customers become familiar with the booking system and know what they can expect from the services offered. They are even familiar with some places in the hotel, therefore attracting repeated customers is less costly than attracting new ones.

• Word of Mouth (WOM). Word of mouth is also used to measure loyalty (Duhan et al., 1997). WOM is defined as consumers expressing their feelings of the purchasing experience (Goyette et al., 2010). According to Bowie and Buttle (2007), WOM is considered the most cost-effective approach to attract customers. Especially in today’s environment, the development of technology means that WOM can spread more efficiently. According to Litvin et al. (2008), WOM is especially important to hotels, as their products are invisible and customers can hardly evaluate products before making purchases (Lu et al. 2014).

• Customer Lifetime Value. Customer Lifetime Value is the value that a customer contributes to the enterprise during their lifetime. Wu and Li (2011) believed that profitable customer relationships reflect the primary goals of CRM. Therefore, customer relationships only bring profits if the profits created by customer purchases exceed the costs spent on customer relationships. A customer with a high lifetime value will bring long-term and sustainable profit to the organization (Cao & Gruca, 2005). The higher the customer lifetime value is, the higher the customer credibility and loyalty to the hotel.

Therefore, the following hypothesis was proposed:

• H7: The successful implementation of CRM has a positive influence on customer loyalty

Based on the theoretical grounds discussed above, and the development of hypotheses, the research model was proposed (Figure 1).

Figure 1. Proposed research model.

Research methods

Designing questionnaire

Based on the literature review with four criteria for selection, the research team identified one dependent variable (loyalty), one variable of successful implementation of CRM, and six independent variables, including: commitments of senior leaders, CRM strategies, business procedures, corporate culture, technology infrastructure and database, amounting to a total of 32 observation variables.

To test the conformity and ensure reliability of the research model, the research team conducted interviews and sought consultancy from 15 experts—those who directly work in or have done research related to the hospitality sector, and managers working in 3-to-5-star hotels in Viet Nam, to adjust, filter and supplement the observation variables. As most observation variables were derived from foreign studies, a pilot survey was conducted with a sample of 198 individuals to improve linguistic expressions, overall readability and comprehensiveness of the questionnaire. Considering the comments and feedback from the recipients, some items were slightly adjusted. More specifically, three new observation variables were proposed, including “Senior leaders remove barriers to CRM implementation”; “The hotel has staff evaluation and remuneration systems”, and “The system updates advancements in technology”. The final questionnaire included 35 questions for eight factors, using a 5-point Likert scale (1: completely disagree, 5: completely agree).

Data collection

The survey involved participants who were executive managers, vice directors, heads of department and heads of divisions in hotels which are engaged in managing and executing hotel activities, including CRM implementation. The total research population was selected for example in Hanoi, Ho Chi Minh City and Da Nang. A convenient sampling method was applied. The collection period was from June 2021 to January 2022. A total of 500 questionnaires were delivered, of which 350 were directly distributed, and 150 were designed on Google Forms and posted on pages of the Vietnam Tourism Association, Ancient Quarter Tourist Association, and Hotel Management Association, and also sent to various hotels. Using a direct survey approach, 323 questionnaires were collected, with 317 valid ones (six were invalid because recipients did not answer all of the questions). Using an indirect survey approach, 79 valid questionnaires were collected, accounting for 52.6% of the total. A total of 396 valid questionnaires were included in the study. Sample descriptions are presented in Table 5.

Table 5. Personal information of survey respondents.

Features	Indicators	Frequency	Percentage (%)
Gender	Male	192	48.4
	Female	204	51.6
Qualification	Vocational school	22	5.7
	College	46	11.5
	University	263	66.4
	Post-graduate	65	16.4
Working experience	Less than 5 years	198	50.0
	5–10 years	65	16.4
	10–15 years	62	15.6
	More than 15 years	71	18.0
Income	Under 10 million	78	19.7
	10–15 million	146	36.9
	Tù 15–20 million	88	22.1
	Trên 20 million	84	21.3
Grade	3 stars	123	31.1
	4 stars	104	26.2
	5 stars	169	42.6

Source: Data processed by the research team.

Data analysis

After data collection, 396 collected questionnaires were refined and analyzed by SPSS 20.0 software. The quantitative analysis involved testing the research hypotheses as well as the appropriateness of the research model. The reliability of the measurements was evaluated by the internal consistency method via the Cronbach’s Alpha coefficient. Regression analysis was used to determine the relations between the dependent and independent variables. The analysis model helps to determine the factors that have the strongest impact on the successful implementation of CRM in 3-to-5-star hotels in Vietnam, according to the evaluation of managers. Factors with a higher β have a stronger impact on the results of the CRM implementation of 3-to-5-star hotels in Vienam. Hypothesis testing is the process of establishing and using statistical criteria to determine the values of the hypotheses in unconstrained conditions.

Research findings

Statistical analysis of research samples

Of the 396 interviewed 3-to-5-star hotel managers (Table 5), the percentage of genders is quite equal, with females accounting for 51.6%, and males making up a slightly lower number (48.4%). Regarding qualifications, the proportion of hotel managers with graduate and post-graduate degrees is over 80% (with 66.4% finishing university education and 16.4% having a post-graduate education). This high proportion is understandable, as the positions of hotel managers require people with higher educational levels. As for working experience, the number of managers with less than five years of experience accounts for half of the total. This is attributed to two facts: managers tend to change jobs quite frequently, or were new to the management position. The remaining managers have working experience ranging from 5 to 15 years. In terms of income, those with an income of 10–15 million account for over one-third of the sample, while the proportions of the other three groups having an income of less than 10 million, from 15 to 20 million and over 20 million were around 20%. In terms of hotel grades, 5-star hotels have the highest rate of respondents, followed by 3-star hotels, and then 4-star hotels.

Results of evaluating reliability of measurements

The Cronbach’s alpha coefficients of all six factors range between 0.673 and 0.851 (Table 6). At the same time, the item-total correlation coefficients of all the measurements were higher than 0.3. As such, all 35 observation variables of the measurements in the research model have reliability and were accepted for further analysis.

Table 6. Results of evaluating reliability of measurements.

Measurements	No. of observation variables	Cronbach alpha	Lowest Item-Total Correlation	Conclusion
Commitments of senior leaders (COL)	4	0.743	0.421	Meet requirements
CRM strategies (CS)	4	0.811	0.560	Meet requirements
Business procedures (BP)	4	0.765	0.476	Meet requirements
Corporate culture (CC)	6	0.792	0.430	Meet requirements
Technology infrastructure (IT)	6	0.796	0.404	Meet requirements
Database management (DM)	4	0.851	0.590	Meet requirements
Successful implementation of CRM (SIC)	4	0.673	0.347	Meet requirements
Loyalty (LOY)	3	0.664	0.348	Meet requirements

Source: Data processed by the research team.

Results of estimating models of factors affecting the successful implementation of CRM

Results of estimating weight value of the model

After factor analysis and correlation analysis, six independent variables and one dependent variable of successful implementation of CRM were inserted for model testing. Regression analysis helped to answer the research questions and identified whether the established model could meet the demand. The multi-linear regression model is shown in Table 7.

Table 7. Descriptions of methods and variables in linear regression analysis.

Lists of variables inserted/ deleted^a
Model	Variables inserted	Variables deleted	Method
1	F6_COL, F5_BP, F3_IT, F4_DM, F1_CC, F2_CS^b		Enter

^a Dependent variable: F7_SIC.

^b All variables inserted at request.

Source: Data processed by the research team.

According to the results of estimating the multi-linear regression model by the Enter method, all six affecting factors have a statistical significance to the successful implementation of CRM, including: leaders’ commitments, CRM strategies, business procedures, customer culture, technology infrastructure and database. This illustrates that all six factors have statistical significance (with a reliability of 95%) in the research model. As such, the six proposed hypotheses were all accepted (Table 8).

Table 8. Results of research hypothesis testing.

Hypotheses		Conclusion
H1	Senior leaders’ commitments have positive and significant impacts on enterprises’ success	Accepted
H2	CRM strategies have positive and significant impacts on enterprises’ success	Accepted
H3	Business procedures have positive and significant impacts on enterprises’ success	Accepted
H4	Hotel culture has positive and significant impacts on enterprises’ success	Accepted
H5	Technology infrastructure has positive and significant impacts on enterprises’ success	Accepted
H6	Database has positive and significant impacts on enterprises’ success	Accepted

Source: summarized by the research team.

Based on the results of Table 8, the regression model was used to evaluate the impact of the factors on the successful implementation of CRM of hotels, and was rebuilt as follows: $$\mathit{F}7\_\mathit{\text{SIC}}=-0.341+0.309\mathrm{*}\mathit{F}1\_\mathit{\text{CC}}+0.257\mathrm{*}\mathit{F}2\_\mathit{\text{CS}}+0.165\mathrm{*}\mathit{F}3\_\mathit{\text{IT}}+0.089\mathrm{*}\mathit{F}4\_\mathit{\text{DM}}+0.152\mathrm{*}\mathit{F}5\_\mathit{\text{BP}}+0.158\mathrm{*}\mathit{F}6\_\mathit{\text{COL}}$$

The results of multi-linear regression analysis indicate that all six factors have a positive impact on the successful implementation of CRM (as shown by the positive signs of unstandardized coefficients in column B). The impact levels of each factor on the successful implementation of CRM vary, as each factor has a different impact intensity. The impact intensity of these six factors can be summarized as follows:

Firstly, the factor with the strongest impact on the successful implementation of CRM is hotel culture (coded as F1_CC), with the highest standardized weight value of 0.285. This result is compatible with the research findings by Chalmeta (2006) and King and Burgess (2008).

Secondly, CRM strategies, coded as F2_CS, have the second strongest impact on the successful implementation of CRM, with a standardized regression weight of 0.230. This result is compatible with the research findings by Mendoza et al. (2007); Abdul Alem Mohammed (2012); Rakiki (2018); and Bukola et al. (2019).

Thirdly, the factor with the third strongest impact is technology infrastructure, coded as F3_IT, with the standardized regression weight of 0.176. This result is in line with that reported by Arab et al. (2010), Ahmad et al. (2012), and Abdul Alem Mohammed (2012). These researchers all affirmed that the successful implementation of CRM is determined by the technology infrastructure in hotels.

Fourthly, the commitments of hotel leaders, coded as F6_COL, has a standardized regression weight of 0.137. CRM implementation is a long process that impacts all the divisions and staff members in a hotel. Therefore, senior leaders play an important role in directing, supervising and evaluating this implementation. This result is compatible with the research findings by Mendoza et al. (2007); King and Burgess (2008); Rakiki (2018); and Arab et al. (2010).

Fifthly, business procedures, coded as F5_BP, has a standardized regression weight of 0.122. This result is in line with the research findings by King and Burgess (2008) and Arab et al. (2010). According to prior studies, business procedures are an important factor affecting the successful implementation of CRM.

Sixthly, database, coded as F4_DM, has a standardized regression weight of 0.093. This is in line with the research findings reported by King and Burgess (2008), Ahmad et al. (2012), and Rakiki (2018), who all indicate that database impacts CRM implementation.

Evaluating the conformity of linear regression model

The results of the analysis indicate R² = 0.48 and adjusted R² = 0.465, which means that nearly 48% of the variations in the successful implementation of CRM is explained by the six independent variables inserted in the research model (Table 9)

Table 9. Results of evaluating conformity of regression model and autocorrelation statistics.

Summary of model^b
Model	R	R square	Adjusted R square	Standard error of estimate	Durbin-Watson
1	.688^a	.473	.465	.529	1,911

^a Explanatory/ independent variables: (Constant), F6_COL, F5_BP, F3_IT, F4_DM, F1_CC, F2_CS.

^b Dependent variable: F7 _ SIC.

Source: Data processed by the research team.

Results of estimating models of the impact of the successful implementation of CRM on customer loyalty

The successful implementation of CRM has a significant and positive impact on customer loyalty, with a regression weight of 0.598 > 0 and sig. = 0.000 < 0.05. The positive regression weight and significance illustrate that hypothesis H7 was accepted (Table 10).

Table 10. Regression coefficients.

Model		Unstandardized regression coefficients		Standardized regression coefficients	T-statistics	Statistical significance level	Multicollinearity statistics
		B	Standard error	Beta			Inflation level	Variance Inflation Factor
1	(Constant)	.989	.160		6.188	.000
	F7_SIC	.598	.043	.571	13.816	.000	1.000	1.000
Dependent variable: F8_LOY

Source: Data processed by the research team.

The successful implementation of CRM can explain nearly 33% of the variations in customer loyalty (R-square is 0.326) (Table 11). This illustrates that the successful implementation of CRM plays an important role in increasing customer satisfaction and loyalty at hotels in Vietnam. Therefore, it is crucial to improve the successful implementation of CRM in hotels in the near future.

Table 11. Summary of model^b.

Model	R	R square	Adjusted R square	Standard error of estimate
1	.571^a	.326	.325	.622

^a Explanatory variable: (Constant), F7_SIC.

^b Dependent variable: F8_LOY.

Source: Data processed by the research team.

As the model of the impact of the successful implementation of CRM on loyalty is a single regression model, there is no chance of multicollinearity, so assumptions of Ordinary Least Square (OLS) were satisfied.

Testing the assumptions of multiple linear regression

Assume normal distribution of residuals

Figure 2 shows a normal distribution curve superimposed on a histogram. It can be said that the residual distribution is approximately normal (mean mean is approximately 0 and standard deviation Std. Dev = 0.992 is approximately 1), so it can be concluded that the assumption of normal distribution of residuals is not is violated.

Figure 2. Frequency histogram of standardized residuals.

Multicollinearity test

According to Table 12, it shows that the variance magnification coefficients of the independent variables in the model are all lower than 2 (the highest value is only 1.744 < 2), so it can be confirmed that there is no multidimensional problem. Collinearity between independent variables in this regression model.

Table 12. Regression coefficients.

Model		Unstandardized coefficients		Standardized coefficients	T-statistics	Statistical significance level	Multicollinearity statistics
		B	Standard error	Beta			Inflation level	Variance Inflation Factor
	(Constant)	−.341	.261		−1.308	.192
	F1_CC	.309	.053	.285	5.866	.000	.573	1.744
	F2_CS	.257	.054	.230	4.728	.000	.573	1.747
	F3_IT	.165	.039	.176	4.203	.000	.774	1.292
	F4_DM	.089	.043	.093	2.068	.039	.666	1.502
	F5_BP	.152	.055	.122	2.750	.006	.687	1.457
	F6_COL	.158	.043	.137	3.687	.000	.977	1.024
Dependent variable: F7_SIC

Source: Data processed by the research team.

Heteroscedasticity test

It can be seen that from the scatter plot above, we can clearly see the change in residuals, the residuals are randomly scattered around the 0 value axis (ie around the average value of the residuals) in 1 year. range remains unchanged. Therefore, the error variance is constant, i.e. the assumption of constant error variance is accepted (Figure 3).

Figure 3. Scatter plot of standardized residuals and standardized predicted values.

Autocorrelation test

The Durbin—Watson statistical quantity is often used to test the correlation of adjacent errors (first-order serial correlation). According to Table 9, it shows that the value of the Durbin-Watson quantity is close to 2, which means that the residuals do not have first-order serial correlation with each other, this value falls in the range that accepts the hypothesis of no natural phenomenon. correlation, so the assumption that there is no autocorrelation in the regression model has been accepted.

Discussions and implications

This study tested the factors affecting the successful implementation of CRM and the impacts of the successful implementation of CRM on customer loyalty in 3-to-5-star hotels in Vietnam. Accordingly, the research proposed a model based on the integration of three salient theories, namely, RBV, RM and CM. The identification of affecting factors was performed in relation to the main CRM components. The research team’s findings have important theoretical and practical implications. The study also added 3 new observation variables including: Senior leaders remove barriers in CRM implementation; The hotel has a system to measure and reward employees and a system to update advances in technology. The results obtained reveal that all six factors of leader commitments, CRM strategies, business procedures, hotel culture, technology infrastructure and database have a positive impact on the successful implementation of CRM. In turn, the successful implementation of CRM has a positive impact on customer loyalty. These findings are compatible with the results of prior studies (Mendoza et al., 2007; King & Burgess, 2008; Rakiki 2018; Arab et al., 2010).

In Vietnam, the hotel industry has always been a potential market. Amid fierce competition and the considerable impacts of the COVID-19 pandemic, hotels need to make an effort to maintain their business activities on the basis of retaining and developing their relationships with customers. Managers of 3-to-5-star hotels in Viet Nam need to be more aware of the importance of resources so as to make the best preparations before implementing CRM: Firstly, build a culture of cooperation and sharing in the hotel. Hotel staff need to promote a sense of responsibility and work coordination. Hotel culture needs to be consistent with management principles aimed at efficiency for the hotel’s customers; Second, it is necessary to build a customer-oriented CRM strategy, demonstrating a customer-centric philosophy. Hotel managers need to clearly identify long-term strategic directions regarding customers and customer-oriented expectations; Third, prepare well the technological infrastructure, increase investment in modern infrastructure construction. Hotels need to orient themselves to planning cloud computing application infrastructure, deploying service-oriented architecture and information security; Fourth, there needs to be a commitment to support from senior leaders in the hotel, restructure appropriate business processes and have consistency in leadership and management of hotel operations. Along with that, leaders need to have a good vision of CRM to build a CRM development plan consistent with the hotel’s overall development strategy, and at the same time properly, fully and clearly plan the goals to be achieved of CRM; Fifth, ensure consistent business processes throughout the hotel system. Although each department will have its own goals and requirements, the leader’s task must be to reconcile those unique points, resolve conflicts that arise during operations, and meet the conditions Basically, it may be different for different departments but must still ensure a unified CRM system throughout the hotel and Sixth, build a comprehensive database of customers. Regular updates, synchronization and quality will ensure that the CRM system provides quality input information, best supporting customer development and maintenance activities.

Conclusion and new research directions

This research is among the first to investigate the impact levels of the factors affecting the successful implementation of CRM and customer loyalty in 3-to-5-star hotels in Vietnam, based on the integration of three theories (RBV, RM and CM). We proposed a research model to help implement CRM successfully and gain customer loyalty based on common perceptions and prior studies. By gaining adequate commitment from senior leaders, this process can evaluate the levels of the readiness of the organization in terms of human resources, technology and procedures to implement CRM. Therefore, CRM strategies should be developed properly and communicated to all staff members. The implementation of CRM projects should focus on the success factors in each CRM component. The successful implementation of each factor should be measured to ensure the successful implementation of CRM.

Although the research has made important findings, it still reveals some shortcomings. First, the study was conducted at 3 - 5 star hotels in Hanoi, Ho Chi Minh City, and Da Nang and was limited to these hotels. Therefore, it is necessary to study more hotels of other types and sizes, research on the regulation of factors on hotel types such as independent hotels, chain hotels to provide more evidence on the influence of factors on successful CRM implementation and customer loyalty. Second, the new study uses subjective measures from hotel managers to measure CRM implementation success and customer loyalty. Therefore, it is necessary to add an objective measure from the customers to have an overall view and compare the results.

Disclosure statement

No potential conflict of interest was reported by the author(s)

Additional information

Funding

This research is funded by Thuongmai University, Hanoi, Vietnam.

Notes on contributors

Nguyen Viet Thai

Nguyen Viet Thai is the dean of Faculty of Hospitality and Tourism, Thuongmai University in Vietnam. He holds a PhD in Commerce from The Thuongmai University. His research interest include sustainability tourism, customer behaviour, tourism marketing and knowlegde management. He has published in several journals such as African journal of Hospiatality, tourism and leisure, Knowledge management research & Practice, International Journal of Hospitality & Tourism Systems, Tourism and Hospitality Research and Economic & Development. The Tourism and Hospitality Research Group was established in February 2023 under the guidance of group leader Associate Professor, Dr. Nguyen Viet Thai and funded by Thuongmai University, Hanoi. The group’s research orientation includes: Management, service business, tourism and hospitality.

Bui Thi Quynh Trang

Bui Thi Quynh Trang, PhD, is a lecturer in the Faculty of Hospitality and Tourism at Thuongmai University, Hanoi, Vietnam. She is a member of the Tourism and Hospitality Research Group and is a young researcher interested in hotel management, sustainable development of hotels, marketing tourism and customer behavior.

Nguyen Le Dinh Quy

Nguyen Le Dinh Quy, MBA is a researcher on Management Science and Development Economics. His email address is: [email protected]

Nguyen Thi Quynh Huong

Nguyen Thi Quynh Huong, PhD, is a lecturer in the Faculty of Hospitality and Tourism at Thuongmai University, Hanoi, Vietnam. She is a researcher interested in marketing tourism, customer behavior and competitiveness in tourism.

Vu Thi Thu Huyen

Vu Thi Thu Huyen, PhD, is a lecturer in the Faculty of Hospitality and Tourism at Thuongmai University. She is a young researcher interested in hotel management and operations, service quality management in tourism, and sustainable development of green hotels.