How to strategically manage your hotel brand’s equity and reputation

Ok, so you work with a hotel brand. Whether you own it, manage it, or manage just certain aspects of it, I have one question for you.

What is the most valuable thing your company owns? Is it your properties? Market share? Number of loyalty members? Take a guess.

The answer is actually your brand. Well actually it’s your brand equity which is based on customer perception of your brand name; customers associate your brand name with a promise, assurance, and a set of expectations that you must be able to maintain consistently. And when you’re managing multiple properties, even multiple extensions with multiple properties, ensuring that you’re maintaining the consistency of your brand promise becomes quite complex.

But before we get into measurement, let’s spend a few moments understanding the importance of guest satisfaction on a brand level and where guest satisfaction truly comes from.

Guests are the true determinants to whether a brand succeeds or fails and guest satisfaction has been used as a measure of operational success for branding strategies for the past 25 years (O’Neill and Mattila 2015). In fact, not only does guest satisfaction lead to repeat purchases, positive word of mouth, and guest loyalty, it also leads to higher market share, ADR, profits, and shareholder value (Prasad and Dev 2000).

But where does guest satisfaction come from? How can your brand ensure that your properties are performing at a level where no guest leaves your venue unsatisfied?

Well, let’s think about it. What makes guests happy? The location? The room quality? The amenities?

All these things are important, but nothing compares to the immense impact that quality of service delivery makes.

Your guests are happy because of the service they are given and the service is given to them by your employees. So technically, great service and high customer satisfaction depends mostly on the performance of your employees. And ensuring that your employees are motivated and passionate is not something that any brand should be confident about unless they have taken employee satisfaction into consideration when creating their brand standards and operational procedures.

In 1994, three brilliant professors from Harvard Business School introduced the service-profit chain, a methodology which demonstrates how employee satisfaction has a direct positive influence on customer loyalty which, in turn, contributes directly to an increase in revenue and profitability.

The chain is composed of several segments, all acting on a cause-effect relationship, where one event makes the other event happen.

In the next sections, you will find a breakdown of each of these segments: what they mean and how you can achieve them.

Internal Service Quality measures how much an employee’s work environment contributes to their satisfaction. Additionally, it identifies how easily employees communicate with one another inside the workplace. When you empower your employees, you see an immediate increase in employee satisfaction, hotel performance, and revenues.

Did you know that increasing your employee engagement investments by 10% each year can increase profits by $2,400 per employee?

Routier helps you invest in your employees, by empowering them with the right tools, resources, and information they need to help them:

  • Manage their tasks more efficiently and effectively
  • Coordinate with other employees within the organization
  • Engage with your venue’s guests across all channels, with one platform
  • Accomplish their own goals

Employee Satisfaction measures whether your employees are satisfied and happy at work. Higher employee satisfaction is directly linked to higher productivity, motivation, commitment, and service quality. Employee satisfaction derives from employee support and rewards offered by their workplace.

Did you know that the cost of replacing an employee is upwards of 200%? When your employees are satisfied, they are 87% less likely to leave the company.

Routier helps you identify and recognize outstanding team members who deliver quantity and quality. With this transparency, you can create incentive and rewards programs to help boost morale and motivation.

Employee Productivity is an assessment of the efficiency of your employee; it is measured in terms of output over a specific period of time. Higher productivity in the workplace will translate into better customer service and interactions.

Did you know that highly engaged employees are 38% more likely to have above-average productivity?

Routier helps hotels measure and improve their employees’ productivity and performance by:

  • Automating staff and guest engagement processes in one central location
  • Eliminating communication redundancies across departments
  • Generating staff performance analytics, to help measure the quality and quantity of employee performance
  • Identifying patterns and trends across departments and employees, helping identify strengths and weakness in hotel operations

External Service Quality measures the quality of service that your employees deliver to your customers; customers place value on quick service and employee friendliness.

External service quality translates directly into increased profits; the more satisfied a customer is with the services offered by a business, the more likely they are to increase their spend, recommend to others, and revisit in the future.

Did you know that if a service business manages to increase its percentage of loyal customers from 76% to 81%, its net profits are expected to double?

Routier helps hotels “do things right the first time” by:

  • Measuring and monitoring the quality of service delivered by their employees
  • Relaying information to those responsible for designing the service
  • Providing staff with real-time alerts and notifications for guest issues, in order to improve issue-recovery time
  • Creating 1-central dashboard which obtains guest feedback in real-time, and translates that data into information in order to improve services and products
  • Creating a seamless engagement experience for your guests; no downloads, no installations, no hassles
  • Producing the highest engagement rates in the industry

Customer Satisfaction measures how your product or service met or surpassed your customer’s expectations. It is provides hotels with a metric they can use to manage and improve their business.

Listening to your customers is important; their feedback is gold! They’re actually teaching you how to improve your service and business so that you can make it better.

Did you know that an engaged guest with a positive past experience spends up to 140% more than a guest with a negative past experience?

Routier is designed to efficiently communicate, track, and manage all of your guests’ issues. And, most importantly, we make it as easy as possible for your customers to give you feedback and tell you about the problems they are having. Losing even one customer can have a serious negative impact on your business.

Routier helps hotels ensure that no guest leaves their venue unsatisfied by:

  • Providing employees with the right information at the right time to handle client problems promptly
  • Measure and monitor guest satisfaction in real-time
  • Encouraging guests to report their concerns, in the most seamless and easy way possible
  • Gathering guest data in a consistent and objective fashion

Customer Loyalty, derived from customer satisfaction, is exhibited when the customer continuously and consistently repurchases from you or revisits your hotel due to the positive experiences they have had in the past. Creating a loyal customer base is key to gaining a competitive advantage and succeeding.

Did you know that…

  • A 5% increase in customer loyalty can produce profit increases from 25%-85%?
  • It costs almost 7 times more to bring in a new customer than to retain an existing one?
  • That the probability of selling to a new prospect is 5-20%, whereas the probability of selling to an existing customer is 60-70%?

Routier helps you identify and leverage the opportunities that loyal and satisfied guests provide by increasing:

  • Referrals
  • Retention
  • Repeat visitations
  • Loyalty member enrollment
  • Upsells, upgrades, and cross-sells
  • Advocacy
  • And gathering guest information (emails, etc.) for post-stay engagement

So you see, customer satisfaction isn’t independent. It’s completely dependent on employee satisfaction and performance. If you don’t invest in your employees the right way, you can’t empower them with the tools and information they need to do their job correctly. And if they don’t do their job correctly, your properties suffer and your brand suffers.

Your brand is the most valuable asset your company owns. Without your brand name, brand image, and brand reputation, you got nothing. And that’s why protecting your brand is so important for long-term market success.

 

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