Mr. Belmonte

Guest Service / Customer Experience Mgmt

Why Customer Service Is Still King

By Steven Belmonte, CEO, Vimana Franchise Systems LLC

We all know the first rule of thumb for survival in the service industry is "customer service is king'; and we have heard the complaints lately about how it's deteriorating at rapid speed. Most companies are finally realizing that cost-cutting methods may work in the short run (i.e. automated phone messages as opposed to a live person on the other end to take calls), but they tend to fail in maintaining customer loyalty in the long run. We've been there, done that, and learned from it. But what's not really being addressed is the customer service that takes place within the corporate office.

Even though Rome, one of the greatest cities in the world, was not built in a year, employee loyalty can be built in a fraction of that time. Gone are the days of workers jumping from one job to another every six months looking for a better IPO plan. The workers of today want to build a family-like environment where they work. After all, they spend more hours a day at the office than at home. So there's a built-in investment already there.

Within the corporate realm, company loyalty needs to be cultivated. As our parents taught us that 'trust needs to be earned,' the same applies to our employees - we need to earn their trust and loyalty. When we demonstrate that we are invested in their contributions to the company and want to help them succeed in the industry, we give our employees a sense of pride. That, in turn, makes our employees invest more in the hotel and promote the business in a positive manner.

A good part of my business involves talking to managers and supervisors all around the country at all levels of the industry-and I can tell which companies are healthy and which are not. The healthy ones are where the employees take pride in their work and work hard for its success. You can see how they become a part of the company's DNA and it reflects in the way they treat their guests. It's a form of paying it forward, if you will. The bottom line is that investment into our employees begets company loyalty, mutual rewards, increased motivation, increased company morale, increased productivity, which all leads to greater ROI.

The truth of the matter is that management sets the tone for a hotel, a chain, a company, for the whole industry, really. Here are two examples of what I mean, the first an example of excellent management; the second of terrible management.

The first example is about FedEx, and it happened to a friend of mine. He needed to drop off a package early in the morning, but got to the Fed Ex office 15 minutes before it opened. While he waited on the sidewalk, his back to the door, the FedEx clerk unlocked the door, came out to the street, tapped him on the shoulder and said, "May I help you, sir?" At which point, she had him come in - still before the store officially opened-so he wouldn't be detained. My friend, obviously, was impressed. Guess which company he always patrons when he wants to send a package?

The other example, oddly enough, happened to the same friend. He goes into a well-known restaurant chain in Chicago at 10:50 in the morning. He walks to the front counter, where there are three uniformed servers standing around with a man who, it turns out, was the manager. My friend says, "I'd like a cup of coffee to take out, please." One of the servers looks at him and says, "I'm sorry, but we don't open until 11." The coffee is already made, four feet away, and he's "sorry we don't open until 11"? Even worse, the manager just stands there - doesn't say or do anything. My friend, obviously, wasn't impressed. Guess where he doesn't go for a coffee (or lunch or dinner)?

Which of these two cultures does your hotel - or chain, or company - reflect? Are your people like that FedEx clerk or that restaurant manager? Maybe that manager isn't typical of the restaurant's culture, but I'll tell you this about the FedEx clerk: She did what she did because of FedEx founder and Chairman Fred Smith. He probably never met or talked to her - but he established the policies and created the culture within which FedEx employees believe that going the extra mile is part of their job.

As industry managers and executives, a big part of your job is to instill pride and "heart" in the workplace - and to a large extent your bottom line is determined by how effectively you do it. Your ability to be competitive in this most competitive of businesses depends on your ability to instill a positive culture and to nurture your employees - give credit where credit is due, praise them for a job well done, offer recognition for their efforts in every way possible, whether through your words or on an "Employee of the Month" plaque prominently displayed in the lobby or break room. This is key -- provide dollars, significant dollars, as performance bonuses. Whatever it costs, you'll get your investment back many times over through increases to your bottom line.

Some of the great leaders in history commented on loyalty and I'd like to share a few of their words of wisdom.

"There are no victories at bargain prices". - Dwight Eisenhower

"Do what you do so well that they will want to see it again and bring their friends". - Walt Disney

"It is not fair to ask of others what you are not willing to do yourself". - Eleanor Roosevelt

Vimana Franchise Systems LLC is a hotel franchise company owned by CEO Steve Belmonte, President Neal Jackson and Vice President Cory Jackson Jr. In May 2011, Vimana Franchise Systems launched the Centerstone brand as a three-segment franchise designed to create a fair and cost effective model for the hospitality industry. In November 2011, Key West Inns was re-launched under the Vimana Franchise ownership umbrella as a fun and uniquely themed leisure brand. For more information on Vimana Franchise Systems LLC, contact Steve Belmonte at (407) 654-5540 steve@vimanafs.com. Visit Vimana Franchise Systems online at www.VimanaFS.com. Visit Centerstone online at www.centerstonehotels.com, on Twitter at @Centerstonehtls, or on Facebook at www.facebook.com/Centerstonehotels. Visit Key West Inns online at www.staykeywesthotels.com, on Twitter at @StayKeyWest, or on Facebook at http://www.facebook.com/staykeywest. Mr. Belmonte can be contacted at 407-654-5540 or steve@centerstonehotels.com Extended Bio...

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