We’ve always known that adding value for your guests is key to fostering long-term loyalty, and more and more research is proving it.
According to a recent study by Gartner, when it comes to making guests happy and satisfied enough to return to your property, you have to give them more than just a pleasant service experience. The study states: “While a good service interaction can keep customers from wanting to leave, it is likely not enough to make them stay. Executive leaders should employ value enhancement, together with low effort resolution, to increase customer retention, positive word of mouth and wallet share.
The report goes on to say that “In the traditional approach, executive leaders invest time, energy and money in incremental improvements to the customer service experience’s quality in the hopes of achieving those goals. However, our research and analysis have proven that strategy likely won’t pay dividends. That’s not to say the customer service experience isn’t important, but if the goal is boosting customer loyalty, it simply is not enough.
Especially relevant in the current travel market, the report goes on to say that “Organizations are under extreme pressure to drive customer loyalty and the urgency of retaining customers increases significantly during periods of economic uncertainty, when customer behavior tends to change in the following ways; reduced overall spending, increasing DIY behavior (researching and booking independently), and intensified “shopping around.”
How do hotel and resort operators build customer loyalty in these times? A combination of improved customer service and value enhancement. According to the study:
Organizations must continue to mitigate customer disloyalty through low-effort resolution of customer issues. In short, resolve your guest’s issues as quickly and generously as possible. The adage that the “customer is always right” has never been more true. But again, great service is not enough.
If customers receive value enhancement during a service interaction, they have an 82% probability of staying with that organization when presented the opportunity to switch. Basically, give more to get more. In addition to staying loyal, the study shows that consumers who receive value enhancement have an 86% probability of increasing their wallet share and a 97% probability of spreading positive word of mouth.
So beyond making the guest experience as comfortable and stress-free as possible, what can you do to enhance value for your guests? Reward them. One of the easiest and most meaningful ways to add value to a guest’s stay is to implement a seamless rewards program designed to meet the demands of modern travelers. The Guestbook offers such a program, offering 15% cash rewards for every stay. The program not only rewards travelers but has been proven time and time again to boost overall revenues for member properties.
The last few years have changed the travel landscape forever. But one principle remains true: for those property operators who reward their guests in meaningful ways, long-term loyalty is key to weathering whatever storms may lie ahead.
