The Last Word: Customer Solutions Profit Ideas

It is a holiday weekend and I am sitting in my hotel room. The hotel is part of a major chain. This is kind of a busman’s holiday for me, since I really can’t shut down my brain when I observe and live the effects of bad customer service. Yet, my family needs a break, so here we are.

The weekend has been extremely busy – crowds in every corner of the hotel property. I have been amazed at the heroic efforts of the staff. Each one has worked exceptionally hard to create a good customer experience for their guests – from the front desk to housekeeping, restaurants to concierge.

However, hotel management (who seems to be nowhere in site, or accessible by the staff when needed) did not properly plan for the holiday weekend crowds. Staff is short and this has caused front line issues with guests – many of which are easily visible in the lobby, restaurants and other common areas.

Unfortunately, it is clear that employee morale will also be impacted with the hardworking, frustrated team … as will guest satisfaction. This represents tremendous lost opportunity.

But was this necessary? Like everyone else, I had to book well in advance with cancellation penalties that were more severe due to the holiday weekend. So hotel management knew what capacity would be. This hotel also has many profit centers – five restaurants, a casino, spa, water sports, beach activities, business center, gift shops, etc.

From my decades of customer experience management surveying employee/customer interactions, providing mystery shopping services etc., to help companies improve in this critical area, I know that their staffing decisions will directly affect customer satisfaction, customer loyalty, spending levels and employee morale.

In this economic environment, it is sad to see how a corporate or back room decision will have such a significant impact on the current and future bottom lines. I will call the management and tell them of my observations. Will they listen to me? I hope so. This is not rocket science… think of the opportunities for increased revenue, repeat business and customer referrals that they lost!

In a recent blog entry I wrote about the power of the internet in controlling the customer experience – and using this channel internally to train and learn from.

Recently a PricewaterhouseCoopers report about the consumer-driven era of “lifestyle media” talked about the increased demand for “content packaged in a rich, personalized and social environment.” It seems that the web is being used not only as a virtual sales and customer service employee, but also to support traditional concierge services.

Marriott International tested this out through an innovative general manager who developed an online resource and service offering. It has generated great response in his Houston location, and got the attention of corporate. While a full cost analysis hasn’t been completed to determine the corporate-wide value, the localized ROI is amazing – this system cost just a few thousand dollars to execute in the Houston Marriott location and returned significant staff time reductions and improvements to revenues.

As Marriott roles this out to other locations I have to wonder if they realize the value of the data they are collecting – what customers prefer, what products to stock, timing of reservations, preferences for amenities, etc. This data could help Marriott with planning, staffing and other on-site service delivery. A treasure trove of information!

If done properly these web-based services could offer the most personalized service for the tech-savvy consumers. While it won’t work for every industry, many service-based businesses (such as hospitality and travel) will find this to be the next user feature of value for their web strategy.

As tech-savvy customers continue to grow these types of added value and personalized services will become more important. And one day – will we see this replace the concierge desks in hotel lobbies? We will have to wait and see.

My bet is these services will coexist with classic customer interaction. Different people have different communication preferences, different situations and different times. What remains the constant? The need for creative ways to manage your customer’s experience and how your company and your employees (virtual or not) manage those interactions.

I’m fascinated to read that the over 65 demographic group is cashing out their 401Ks and buying into franchise opportunities in record numbers. In some cases it is natural progression after retiring, and in other cases it is a reaction to downsizing.

At first, I was concerned – for their financial security and their futures. But, then I realized this is great for all of us. Experienced workers who will bring professional skills to an existing business model will understand the value of areas that I hold dear to successful business management, such as: compliance monitoring, customer interaction management and managing employee theft.

Tip: During a challenging economy, employee theft soars. Check out our case study on Employee Theft for some ideas on how to control your losses.

And, from their perspective, with the franchise concept they won’t have the pressures or risks of starting from scratch, but they could be the answer to more successful franchisee percentages.

As a data collector, I will look forward to the productivity comparisons of this new group of franchisees – to track the success rates and managerial impact of this group against the baseline or benchmark of the average franchisee today.

I believe that this older, more experienced group that have the depth of business knowledge will move quickly to put in place the management, monitoring and reporting systems they need for successful results. They could, as a group, increase the percentage of franchises performing above expectations.

This could prove to be a win-win scenario – franchise businesses get an influx of experienced owners who will improve performance, and the over 65 group will have a lower risk way of staying productive while maintaining independence from corporate America.

I love seeing research stating that customer loyalty is being built on websites. Finally, companies are starting to exploit the value of this powerful sales, communications and relationship channel. Internet customer experience management is coming of age!

Companies need to think of delivering the best customer experience online as something they can control. After all, your website says what you want it to, responds to any customer issue “by the book” and even can help to upsell, cross sell and suggestive sell.

A company’s website is a powerful tool in controlling the customer experience – AND if used correctly can even be an internal training tool for the best practices of interacting with customers.

Consumers will tell a company what they like and what they want – the Web allows companies to collect this information and act on it without the burden of “human interpretation” issues.

In some cases, your website can become the community hub and meeting place for your most loyal customers – the advocates of a company’s brand. Think of it as an online customer loyalty program that you control (within reason). The website then becomes a fabulous way to survey your best customers about proposed changes, additions and satisfaction.

In a world where control is hard to find – your website and online presence offers businesses a channel of endless controlled Internet customer experience opportunities to positively influence your customers’ perception of your brand.

Time to think about some creative Internet-based customer loyalty programs perhaps?

I often visit the location of a multi-unit client’s business and find that while they are executing the promotional point of sale they often can’t deliver on the promise of the product/service.

Their signage is controlled corporately but the impact of people required to execute and deliver the final product/service to the customer means there is room for major inconsistencies. These inconsistencies become the leading brand impression left with the consumer. Compliance monitoring may be one solution to that disconnect

Companies need to put as much into the point-of-sale delivery of the promotional offer as they do in the marketing to do the promotion. It is a crime to drive business that then falls short of expectations when delivered.

This can be corrected by managerial controls on staffing, compliance training, monitoring and surveying at every point of contact or “Touchpoint.” These efforts should be considered just as important as the creation and marketing efforts for the offer – in fact, they should go hand-in-hand.

Unfortunately, most companies have silos controlling these areas – sales/marketing and operations. The companies that meld these functions or create a shared responsibility for sales, customer retention and brand perception are the ones who succeed. Compliance monitoring and training are tools to performance manage a consistent approach to the market.