How to Improve Customer Centricity in Hospitality

The title of this week’s post might surprise you. After all, the hospitality industry should be highly customer centric, as it relies on satisfying its guests.

However, it can learn a lot from consumer packaged goods (FMCG/CPG), as I shared with industry experts at a Faculty Day of one of the leading hospitality schools in Switzerland. Having spent most of my career in consumer goods, I was invited to share what the hospitality industry could learn from the industry. From the reactions at the end of my talk it seems that the answer is a lot!

It might surprise you, but the two industries have a number of similarities. They both (should) have their customers at their heart. And they are both founded on pleasing and hopefully delighting their clients in the quality of the products and services they offer.

 

During my presentation, I shared many ideas; here are a few of the points I covered:

 

#1. From ROI / ROR to ROE

There has been a lot of discussion in the past few years about the need to move from a return on investment to a return on relationships. While I agree with the importance of relationships, I believe that what we should be talking about is engagement. Despite many books touting the need for our customers to “Love” our brands, in reality, I’m not sure that any of us want to have a deep relationship with brands.

The relationship is based on more than just the brand. It is founded on trust and confidence in the product, the brand’s website and their engaging communications. Think Coca Cola and Red Bull as great examples of this.

 

#2. Build Relationships with Strangers

The hospitality industry is based on serving and satisfying its guests. But in today’s connected world it also needs to consider people who are currently strangers – but could potentially become guests. These may include the friends of past guests, who have heard about the hotel or restaurant and are interested in visiting it for themselves.

One good example of this, but I know many hotels are also doing it, is the Rosewood Mayakoba resort in Mexico. 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 future guests before they even arrive. In addition, the posts will certainly have a positive influence on website visitors. And the guests who publish their photos, will have an even stronger positive impact on their friends and followers.  After all, they will more than likely have similar tastes and desires.

 

#3. Value is more Important than Price

Having additional control of our 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 decisions are influenced by their peers, more than by traditional marketing. Continue Reading

Is Packaging Part of Product or Promotion? Should it be Both?

Which did you answer subconsciously when you read the title? Do you consider your packaging to be a part of the product, protecting its contents and framing its on-shelf life? Or do you consider it to be an integral part of your connection with your customers at an important moment of truth, that of purchase and usage?

If you answered both, then I believe that you are making maximum use of your packaging or at least you recognise its potential for communication.

If you answered only one of the choices, then you may be missing an important opportunity. Let me explain, with a few examples.

 

People don’t read instructions

We all expect most things that we use or consume to be intuitive these days. In other words, we assume that we will understand how to build / cook / use them without reading the manual / instructions.

 

If you are like most people – myself included – this has nothing to do with the complexity of the product concerned . I myself will only turn to the instructions when something doesn’t work: I end up with left-over screws when mounting a flat-pack piece of furniture, or I can’t achieve multi-recordings on my smart TV or DVD recorder.

In the article How Likely Are You to Read the Instructions they link behaviour to personality types. It makes an interesting read and offers at least some explanations why many (most?) of us still don’t read instructions.

Since the coming of the internet we have access to more and more information, we seem to be reading less and less. Therefore we need to ensure that any vital information is called out in some way on the packaging – and perhaps visually as well.

 

People do look at packs

Whether it is the cream we put on our faces, the cereal we eat for breakfast, or the dip that we offer to friends on match night, there are moments when we are faced with packaging for more than a split second. It is at these times that we are likely to read at least some of what is written on the pack.

It therefore makes sense to provide more than just a list of ingredients. After all you have your customer’s attention.

 

Here are a few examples I have come across recently:

Nestle compass on Packaging is Part of Product or PromotionNestlé does a great job of providing useful information on their packs with their nutritional compass, which includes four different pieces of information.

What I particularly like about what Nestle has done, is to combine mandatory information on nutritional values, with useful information for the consumer. While they may not be the most consumer centric company around, at least they did think consumer first in the development of their compass.

 

 

 

Our customers’ attention is constantly pulled in all directions today, with thousands of messages pushed at them, from so many channels, products and services. Capturing their attention is more likely to be successful when they are open to learning about your product, that is to say, when they are actually using it. Continue Reading

I hope you enjoy reading this blog post.

If you want me to catalyse your growth and profitability, just book a call.

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