Leveraging Service Recovery to Increase Revenue & Reputation
By Ford Blakely SVP & GM, Medallia Zingle | March 08, 2020
Everyone knows mishaps are inevitable in the hospitality industry. No matter how much you plan and prepare, at the end of the day, mistakes can and will happen. But these mistakes don't have to be fatal. In fact, the strategies you put in place to respond to service missteps can prove to be some of your strongest tools to win customers and drive revenue.
However, implementing even the best strategy is impossible to execute when you don't know where problems lie in the first place. A recent consumer research study revealed that only 1-in-4 hotel guests say they'll report any issue that impacts their overall guest experience. That's right -- 75% of guests will not report all the issues that impact their stay.
This is worrisome news for hotel operators. Despite their best efforts to delight guests, they're often left in the dark when things go awry -- robbing them of the opportunity to resolve an issue or even acknowledge one occurred -- until it makes its way online for the world to see. And as new guests check-in, these unreported issues pile up and become exacerbated, leaving you in a place where your revenue and reputation have only one way to go… down.
This is where the power of service recovery as an effective strategy can enhance both your reputation and bottom line.
Building Stronger Customer Bonds
With the latter half of this decade bringing a hotel development boom, competition is as fierce as it's ever been. And in an age where customer expectations around things like personalization are continuously rising, the inability to address service issues will only boost your competitor's business. In fact, research shows that hotel guests are willing to pay significantly more to stay with a hotel nearby that provides better service.