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customer service and retention from a structured TQM perspective and highlights the need for hotels to emphasise the development of a process of continuous improvement. Results show that not all hotels gave staff autonomy to make customer service decisions without managerial approval.


Based on the strong positive


relationship shown between the TQM critical success factors and customer retention, implementing TQM in hotels situated in the Garden Route will not only enhance their quality management, but will make a significant contribution to managing customer defections and service recovery, thereby contributing to customer retention.


Conclusion


The study is an exploratory investigation of a small sample of hotel managers’ perceptions about the application of TQM practices at four and five star hotels on the Garden Route and could be extended to lower star grading establishments. The study could also be expanded to include international hotels and compare the findings with hotels that are MBNQA or EQA certified. This study was small as it focused on the relationship of TQM critical success factors and customer retention in hotels in the Garden Route. In order to better understand the factors affecting customer retention and guests’ perceptions, future research showing both the hotels’ and guests’ perspectives on customer retention would give a more accurate picture. Empirical results show that customer retention activities to retain guests are not performed by hotels on the


Garden Route to the extent of success. Hotel managers are fully aware of the required strategies to be implemented in order to retain guests, but do not always implement these strategies. A well-designed and accomplished study of customers who defected can provide valuable information that will identify the underlying dynamics and core reasons for customers’ defection. A study on customer defection allows for investigating employee attitudes toward service quality and developing a better understanding of the customers’ process for ending the business relationship.


This type of study also discovers whether or not there is an identifiable profile for customers who defected which may be used for the early discovery of customers at risk. A strong positive relationship was shown to exist between the TQM critical success factors and customer retention. The introduction of TQM at Garden Route Hotels will offer a self sustaining quality management process that contributes to customer retention.


About the author: Prof Paul Poisat is head of department, Human Resources Management, at NMMU in Port Elizabeth and has been involved in employee relations and HR management for 29 years.


Poisat also consults in the field of human resources and has co- authored a number of books in the field.


January 2012 | Management Today 41


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