Hotel & Motel Management - November 3, 2008 - (Page 40)

40 Special Report ANNUAL GM SURVEY IN THE details Value is most important Who are your customers? Don’t cut down on training Track repeat business By Barbara Hughes H&MM Columnist H&MM November 3, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Why loyalty and value really matter today s I write this, the outlook for the global economy looks particularly gloomy; in fact, it feels more like a dizzying rollercoaster ride. It is tempting to think about cutting back on services in order to make up for revenue shortfalls. In fact, it has never been more A important to focus on what your guests value most—and “value” will be the most important word in our business vocabulary. For the fourth straight year, the respondents of the Hotel & Motel Management GM Survey told us that retaining talented employees has the greatest ﬁnancial impact on their hotels, followed by revenue growth and anticipating guest expectations. This is not the time to let loyal customers switch brands. According to a recent study by Forrester Research, there is a high correlation between high customer experience scores and a willingness to buy again. Just as important, the study found a strong correlation between bottom-line performance and customers who either repurchase or do not switch to a competitor. To drill down on the concept of “customer experience,” a Walker Information study revealed that while 79 percent of customers said they were satisﬁed, only 41 percent of them were categorized as loyal. The reason given for not buying again or switching was customer service. Our survey respondents got it right with their top three ﬁnancial issues. Revenue is a function of the other two issues; so, what are some things to consider tactically in the coming year? Take a serious look at who your customers are. Spend time face to face with guests. Loyal guests don’t expect “average,” so scores are only part of the story. Do you know what your customers value today? It might be different than it was in January. Can they leave your property and say “that experience was really good value”? Your employees are an investment and they can provide a great return for you if you continue to pick the right people and resist cutting back on training during a downturn. Strengthen the employee-guest relationship. There is a correlation between engaged employees and loyal guests. Relentlessly track revenue and proﬁt from repeat guests. These are key metrics. Sir Richard Branson, Chairman of Virgin plc, said it best recently: “We have two competitive advantages: products and services. We invest time and money in keeping our products different, fun, interesting and high quality. We must now invest the same way for service.” hmm@questex.com Barbara Hughes is co-founder of Intellectual Capital Consulting, an Atlanta-based ﬁrm that helps clients ﬁnd their “Metrics That Matter” for better business decisions. She can be reached at barbarahughes@ intellectual-capital.net. CIRCLE NO. 160 http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.gaylordhotels.com http://www.valleycrest.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - November 3, 2008

Hotel & Motel Management - November 3, 2008 Contents The Rate Debate Accor Defines Motel 6 Prototype Rollout Holiday Inn Eyes Upscale, Timeshare Perspective Economy Sets Tone at The Lodging Conference Mellow Vibe Meets Bold Design at HD Boutique Expo IH/M&RS to Focus on Going Green Legally Speaking Sales Clinic On Finance Travel Trends Cornell Insights Franchise Law HotelWorld Update Trends & Stats Energy Star Update Energy Star Update An Industry Connected People on The Move Annual GM Survey Point-of-Sale Systems IH/M&RS Product Preview Outdoor Lighting Refrigeration Marketplace Ad/Editorial Index Classifieds Checking Out

Hotel & Motel Management - November 3, 2008

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