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Friends were planning their annual Fourth
of July getaway at one of Florida’s most prestigious
and expensive resorts. This property had become a
favorite and they returned each year. They started
bringing friends, booked premium rooms, used the spa
and all the amenities and spent a lot. This year,
with a new baby in tow, they booked six months in
advance, paid a deposit, and specified that this year
they wanted at least one room in the old wing, feeling
more comfortable with that room design. Upon check-in,
no room in the old wing was available or had been
set aside, even with the advance request and planning.
To top it off, the staff on duty did not appear to
be concerned with their dismay and invited them to
go elsewhere if they were not satisfied with the rooms
in the new wing. Premium, loyal guests who came back
each year and who constantly referred other guests
were treated like strangers. They did go elsewhere—the
direct competition, who welcomed them with delight.
Their friends and dollars went with them and they
repeat the story of their bad experience frequently.
It can take years to get loyal guests like
these, and only seconds to lose them. Loyal guests
love to come back, when they feel loved too. They
also spend more, are less price sensitive and enjoy
telling others about their favorite spots. Wooing
repeat and referral guests are part of a hotel’s
easiest and most profitable business strategies. It
can cost up to 8-10 times more to get a new customer
or guest, versus keeping and nurturing the ones you
have. Why are the faithful so often treated so unfaithfully?
Many loyal guests come back and want more
because they are comfortable with a business or property.
Familiarity usually leads to more comfort and ease
and less anxiety. Recently, when trying to order from
two of my favorite catalog companies, I was surprised
with cold unfamiliarity. Even though I had ordered
several times, had spent a lot and had not changed
any of my personal information, they knew nothing
about me due to “a big change in computer systems”.
They did not transfer customer profiles over to the
new system and were beginning from scratch with each
phone call. I had to work for them to get them back
up to speed on who I was, what I ordered and how I
was going to give them money. I decided that I didn’t
want to work that hard for a company that did not
appreciate or value my loyalty or business. Familiarity
does breed contempt when the consequences are not
contemplated!
When systems change or new employees are put
into place, the customer or guest should not suffer,
especially those that are part of the family. They
should be at the top of the list when orienting or
transitioning a new team or new procedure. Will service
delivery continue to be seamless, or will the guest
pay the price for learning curves and system changes?
Not taking repeat guests for granted requires
that management ensure that employees understand how
to recognize and nurture loyal guests. Take steps
to ensure your organization treats loyalty like royalty.
Those that do, reap the rewards royalty bestows.
Last month, while experiencing Lago Mar, an
exquisite beachfront resort in Ft. Lauderdale, Florida,
we met Billy the bartender. In the normal course of
conversation, we asked him about his job and what
he enjoyed most. His immediate response was “getting
to know guests and what they like, developing a relationship”.
He loves to hear guests say, “Hey Billy, see
ya next year.” He was passionate about his job
and enthusiastically reached out to each guest without
being obtrusive. He took his role in each guest experience
seriously and went out of his way to recognize familiar
faces.
After meeting him and several other outstanding
employees at Lago Mar, I was curious as to how that
played out in business. I asked the General Manager,
Steve Van Hemert, how the resort was doing and what
was most effective in securing business. He noted
that even with all the advertising they do, referrals
from other guests, loyal guests, are their biggest
source of reservations. And, approximately 65-70%
of their occupancy is repeat, with about 70% coming
from out of state. Because of employees like Billy
Rack, and his co-workers, guests do come back. The
Lago Mar team places a high value on loyalty and recognizes
the value and spirit of welcoming guests back. Guests
who choose this resort also recognize this spirit
and choose to come back again and again. Repeat guest
recognition does not stop with good computer systems
and national frequent guest plans. In fact, it begins
and ends with employee guest recognition on a personal
level, and employee empowerment to nurture the relationship
with repeat guests.
Being recognized and appreciated is really
so simple. There is a casual, local restaurant I visit
each week, mostly because of the service. The thing
that I like best about Bru’s Room, actually
a sports bar that serves wings and ribs, is they know
what I want before I even get there. They appreciate
that I come in each week with my two and a half year
old son and know we like to order the same thing each
time. Lauri Niles, who has been a waitress there for
over four years, always notices us immediately, seats
us and places our order before we even slide into
our booth. She knows that my son’s order of
chicken and french fries must be split and the fries
hidden in a bag or he won’t eat his chicken
first. They know what I need to make our meal enjoyable,
easy and no hassle, something a mother of a two and
a half year old greatly appreciates.
Even though they are mainly a sports bar,
over 40% of the smaller, restaurant part of the business
is repeat, loyal customers. Employees like Lauri make
it so worthwhile to come back. She and her co-workers
understand the customer has a choice and show they
appreciate the customer’s choice by serving
more than food. They serve service and make the regulars
regularly feel special.
Take steps to ensure your organization, whether
big or small, national or local, is structured to
recognize and appreciate your loyal customers and
guests.
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Orient all employees on the
value of the repeat guest and emphasize how
they impact the bottom line.
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Give employees statistics on
repeat guests and let them know how loyalty
pays or does not. Remind them of the facts --
satisfied customers will tell 9-12 others. Dissatisfied
customers will tell 10-20 others. Everyone always
loves to tell a bad service story. Tell them
referrals are a cost effective and important
part of the business. Many of those referrals
will come from loyal guests.
-
Give them tools to recognize loyal and repeat
guests and empower them to go the extra mile
Loyal guests will expect more and will want
to be looked after if things go awry.
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Motivate them to go out of
their way to recognize returning guests, using
guest names when possible. Enable them to have
access to information on preferences of loyal
guests and to offer them even before the guest
asks.
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Review how system changes may
positively or negatively impact loyal guests.
New guests will not notice but loyal guests
will. Make it easy for them to continue to do
business. Don’t make them work for it.
If guests have to work for it, they’ll
quit “working for you” and go somewhere
else.
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Make your guests feel like
they have returned to a home away from home.
Reach out and thank them for the opportunity
to continue to do business with them. Go above
and beyond ….their dollars will do the
same for you.
Make new friends, but keep the old….one
is silver and the other is gold. Put more gold in
your pockets…treat loyalty like royalty!
Roberta
Nedry is President of Hospitality Excellence, Inc.,
consultants in guest experience management and audits,
service excellence training for management and frontline
employees and concierge development. To learn more
about the programs her firm offers and their service
expertise, visit www.hospitalityexcellence.com
She can also be reached at 954 739-5299 or Contact Us.
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