Customer intelligence and customer retention in hotels in south-west Nigeria

Abstract

The impact of customer intelligence on customer retention in midscale and luxury hotels in south-west Nigeria was examined in this study. A model was developed for the consequent variables to test the research hypotheses relative to the impulse buying theory. A total of 1 972 research instruments were retrieved from customers of 160 conveniently sampled midscale and luxury hotels, and used for analysis. Descriptive statistics were used to analyse the demographic elements, while the Pearson Correlation was utilised to reveal the statistical relationship between customer retention and the customer intelligence constructs. The linear regression model was employed to test the research hypotheses and determine significant relationships between the consequent variables of the study. Results showed the effectiveness of the regression model in identifying relationships between the consequent variables, in which a positive relationship was revealed between customer intelligence and customer retention in the hotel industry. The study concludes that data generated through customer intelligence can filter customer preferences, help hotels prioritise purchases, and further create a sense of need in their customers. Recommendations include that hotels should consider their products and services as tangible elements that would become routine in due time, while considering customer reviews as vital for analysing weaknesses in the service delivery processes.