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  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.

As internet results in us having 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 a 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:

Our customers’ attention is 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. It therefore makes good business sense to use packaging more creatively; wouldn’t you agree?

For more information on the support we can provide in product innovation and branding, please check out our website here: https://www.c3centricity.com/training

This post is regularly updated and expanded from the original published on C3Centricity.

 

 

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8 Marketing Essentials for 2014

Over the past few weeks I’ve been in the US catching up with a few C³Centricity partners about marketing priorities for 2014. The meetings were as inspirational as the new products being presented at the Las Vegas CES (Global Consumer Electronics & Consumer Technology Tradeshow)!

We discussed some of the most important challenges marketing will be facing in 2014 and brainstormed some possible solutions. If you are having any of these difficulties then I’m sure you will find the following ideas useful:

Social Media Metrics

Email is a popular customer service connection pointAs many companies transfer budget from traditional to online advertising, it is essential to also shift some of your funds to measuring its impact, even if some people do question the validity of such metrics. However, the most important thing to do is to link the metrics to what is happening in your business. Your CEO isn’t interested in how many Facebook Likes you’ve managed to get, but he is interested in knowing that you gained x% in awareness. Some st andard numbers often followed are mentioned in “ 10 Social Media Measurement Best Practices” but remember that engagement and listening for better customer underst anding are also (more?) important, as mentioned in this Business Insider post. What everyone does agree, is that every campaign must have objectives and metrics to gauge their efficacy; do yours?

Storytelling

There is so much (too much?) information flowing into organisations today, but it is not being sufficiently accessed because most of it is not being integrated and analysed. Even when it is, sharing the insights is often a challenge because of the complexity of the process. Turning knowledge and underst anding into stories and then visualising or videoing them is a better way for both sharing and getting participation in actioning them. Why not review both your insight development and your knowledge sharing processes this year? If you’re comfortable with where you are, perhaps now is a good time to start storing your information and insights in easily-accessible libraries?

Showrooming & Virtual Reality

Virtual realityIt has been suggested that showrooming will be the end of retail outlets, but I believe there will be an integrated, rather than an either / or future. Virtual reality enables shoppers to see how products could be used, or how they would look in their homes, office or even on themselves. It also allows both retailers and manufacturers to improve their offer by identifying any pain points, and enables them to hold less stock and still offer maximum choice to customers. How about going online with 3D catalogues or providing in-store areas to offer your customers product trial and experience?

 

New Communication Opportunities

According to Jay Walker-Smith of Yankelovich

“We’ve gone from being exposed to about 500 ads a day back in the 1970s to as many as 5,000 a day today.”

Whether that second number should be 5,000 or 20,000 as I’ve also heard mentioned, it suggests that little can or is being retained our customers. Since this is unlikely to change in the future, as attention spans shorten even more, finding new messaging opportunities that resonate with our customers is vital. Continue Reading

Improving Customer Centricity in Hospitality

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

Customer centricity means building relationships with strangersWhilst 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. Continue Reading

Is New Marketing Experience or Engagement?

An article by Jacob Baude in FastCo last week (read it here) got me thinking about how marketing has changed in the last few years.

Until recently, everyone seemed to be talking about engagement and how we needed to entertain our customers, especially on social media and br and platforms. Now it seems to be that customer experience, which of course includes the web, is what really matters. In my opinion, I think marketing hasn’t really changed at all, as it is still about giving the customer what he wants.

One of the basic rules of business success is to be available wherever and whenever your customer wants to buy, ideally at a price he can both afford and thinks provides him with great value for money. Simple. So what is all this talk about experience and engagement? Let me give you my perspective, but I would love to hear yours.

Engagement

Ever since the web has fascinated us with the opportunity of connecting with potential customers worldwide, companies have tried to leverage it for their br ands. All major br ands now have their own website, if not several, with separate ones for each of their variants, promotions and events. I remember doing an analysis of a client’s websites and finding that 90% of them had less than 20 visitors a month! Think about it. Would a br and manager normally be able to advertise to only 20 customers? Of course not; advertising ROI is calculated in OTS (opportunities to see) and there are usually minimums set for the chosen media to be approved.

So how come organisations are spending thous ands if not millions on developing websites for 20 people? In most cases because they are answering to their egos and not to the customers’ need for engagement.

When developing a website, it therefore makes sense to underst and why you are doing it. What is your customer interested in learning, not what you want to tell him. What excites, fascinates or surprises your customer about your br and or segment? Is there something he would like to know or share with his fellow category users? Is he looking for information or entertainment, or both? Answers to these questions will help you to identify whether or not your br and needs a website and what should be included in it. Of course, it also assumes that you know your customer deeply, but that is another story. (see our posts on targeting for help on that topic!)

Experience

The article I mentioned earlier refers to the five major types of experience that form the basic building blocks of the experiential code set. They include “sensations” or poly-sensoriality, which Martin Lindstrom made famous with his book Br and Sense, which was published already more than 7 years ago! Apart from a few scratch stickers for smelling the perfume of some products and a h andful of food companies making a few r andom new product gestures to stimulate more of our senses, it’s a pity that it didn’t strike a chord with more marketers. Continue Reading

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