The title of this week’s post might surprise you. After all, the hospitality industry should be customer centric as it relies on satisfying its guests, no?
However, it has a lot it can learn from consumer packaged goods (CPG), as I shared recently with industry experts at a Faculty Day of one of the leading hospitality schools in Switzerl and. If you would like to learn what I revealed, then read on.
Both the hospitality and CPG industries have their customers at their heart. They both are founded on pleasing and hopefully delighting their clientele in the quality of the products and services they offer. However, as the world changes, customer dem ands increase and companies need to stay current if not ahead of these dem ands in order to ensure continued growth.
During my short presentation earlier this week, these are some of the points that I covered:
#1. From ROI / ROR to ROE
There has been a lot of talk recently on moving from a return on investment to a return on relationships. Whilst I agree with the importance of relationships, I believe that what we should be talking about is engagement, since honestly, who wants to have a relationship with a br and?! Br ands that have a high following and loyalty have found a way to consistently engage their fans and keep them coming back; to the br and, the product, their website, their communications. Coca Cola and Red Bull are great examples of this.
#2. Build Relationships with Strangers
Whilst the hospitality industry has been based on serving and satisfying its guests, in todays connected world it also needs to consider people who are currently strangers – but could potentially become guests. These might be the friends of current guest, which for example the Rosewood Mayakoba resort in Mexico tries to attract. This wonderful hotel encourages its guests to photograph their experiences during their stay at the resort and then to post them on Facebook. This not only provides free publicity for the hotel, but also enables it to start engaging these friends, whom one might assume are potential clients since they are probably similar to their current guests.
#3. Value is more Important than Price
Having additional control in their lives today means that customers are re-evaluating what they are offered. They have higher expectations and are more discerning in their choices. They expect recognition at every touchpoint, even if in reality their peers influence their decisions more than does traditional marketing. The internet enables them to compare offers, so they are less interested in bundled propositions,preferring to decide what is best value for them personally for each element.
#4. Renovation is more than Buildings
Most CPG companies have annual targets for Innovation & Renovation, sometimes 30% or more of annual revenue. They also have mid-term innovation pipelines which can include partnerships in joint ventures with what were previously only competitors. These help each partner by building on their individual talents and enable them to develop better products and services. For hospitality, innovation can no longer be purely physical or rational; we need to consider more emotional and relational ways to satisfy. The Rosewood Mayakoba resort, already mentioned above, is one good example of this; the Art Series Hotels are another. Check out the latter’s recent ad to underst and better how they excel at underst anding their guests: Art Series Overstay Checkout, or why not review the picture posted on MayaKoba Facebook page?
#5. Loyalty is never really Won
One of the reasons that I believe we need to work on building engagement and in all industries, not just hospitality, is because customer dem ands are constantly evolving. What satisfied them yesterday can bore or even disappoint today. To acquire and retain our customers, we need to be constantly upgrading our products and services, so that they will be surprised and delighted. This means that loyalty is much less long-term than in the past and lifetime value is now measured in months or a few years, rather than in decades.
#6. Dialogue don’t just Communicate
In today’s connected world, customers want a say in not only what they consume, but also where, when and how they are marketed to. They want a say in what they buy and expect a rapid resolution to any queries or complaints. According to a recent Edison Research, 20% expect a company to answer to their social media post within 15 minutes, 42% within the hour! That means 24/7 monitoring for all organisations if we are not to disappoint are most engaged customers.
These are just six of the many ideas I shared during my presentation. If you are interested in seeing the full talk, you can find it on SlideShare here.
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