Customer Service at the Hotel Makes or Breaks Them

We were fed up with the hotel. We had held two full-day seminars there. The third seminar was already arranged but we were planning to go elsewhere next time.

The meeting rooms were better than average. The location was convenient. The lobby was attractive. The lunches were superb. And the price was competitive. But we were planning to move our business and were even willing to pay more, because we were unhappy.

Have you noticed that unhappy customers are willing to pay more elsewhere? That’s an important marketing lesson.

Why?

Our contact person was usually difficult to reach and correspond with. She was either “on the phone”, “in a meeting”, or “not in”. She seldom returned our first call. She also seemed to often overlook our email. We followed up with her so many times that we wondered if they really wanted our business.

We were not a huge account but we had shown that we could be a regular client, (two or three times a year). And we always paid promptly.

On the day of the seminars the contact person did not show up to greet us or even check on things. In fact the only staff who came to the room were the serving staff. They were efficient but not very friendly. No representative from the hotel checked in with us at any time to see if things were okay or if there were any changes.

After the meeting, there was no call from the hotel to ask for feedback or thank us for our business.

At the previous meeting, the serving staff had removed the sandwiches along with the desserts immediately after lunch. I thought that strange because some people like to have their dessert snack a little after lunch. I also like to have a sandwich at the end of the day because I'm usually famished after a full day of conducting a seminar.

Lucky for the hotel something changed. They got rid of the old and hired new people.

Amazing how that can change the customer experience!

The new contact person was cheery and easy to connect with. She came looking for us early in the day to introduce herself and welcome us. She appeared later to check on our needs and experience.

When we broke for lunch 30 minutes early, the chef rushed to provide our sandwiches and wraps. And they were superb.

When lunch was done, the server asked if we wanted the leftover sandwiches and wraps. “Yes, that would be nice.” was our reply.

“Well you paid for them so I’ll package them all up for you.”

They nicely packaged up all the leftover lunch and desserts in ‘take out' trays.

Instead of making us feel like thieves for having a sandwich later or taking a dessert home – they made us feel special by packaging it all up for us like presents.

So guess what? We plan to go back to this hotel for our next seminar.

Here’s the marketing lesson for you: If you are in the service business – nothing trumps customer service when it comes to keeping customers!

Before you spend a dollar on advertising and branding – ensure that you have the right people with the right attitude. That includes your management, because a good service culture starts with them.

Once your have the right people, provide them with the training, leadership and rewards to deliver superior customer service.

If you do that, you will save a fortune on advertising and branding because your customers don’t care about that. The only people that care about your advertising and branding are those in your marketing department.

Your customers care about service. Customers are funny that way.

George Torok Keynote Marketing Speaker Co-author of Secrets of Power Marketing
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Marketing Presentation video: How to Appear to be More Successful

We would rather deal with successful people and successful companies. How can you appear more successful - especially when you don't feel successful?

How can you feel more confident?

Enjoy this video clip from a live presentation of George Torok speaking to a group of business owners and representatives. The message is practical and the performance is engaging and entertaining.




George Torok Keynote Marketing Speaker Co-author of Secrets of Power Marketing
Get your free copy of "50 Power Marketing Ideas" Power Marketing on FaceBook Marketing Zoo on Twitter

Marketing Presentation video: Coke & the Power of Perception

What does Coke really sell? What is the real value that people get from buying Coke? How can you use that formula in your marketing?

Watch this video of a live presentation of George Torok speaking to a group of business owners and representatives.



George Torok Keynote Marketing Speaker Co-author of Secrets of Power Marketing Get your free copy of "50 Power Marketing Ideas" Power Marketing on FaceBook Marketing Zoo on Twitter

What is Total Value?

Value is not the same as cost. 

In fact, a product's value is almost never equal to its cost. For example, your product might cost you $2 and you sell it for $10. The value to you is $10. 

The value to the customer will usually be more than the selling price. If it was only worth $10 to the customer then they have no motivation to buy. But if the value to them is greater than the selling price, they are motivated to trade their money for something of greater value. It may be worth $30 to the customer. Then they will gladly give up $10 of their money for the product. The greater the difference between the perceived value and the cost of the purchase, the more the customer will want to do business with you.

Always provide value that is greater than the price they pay.

The Value Formula

Take a look at the following formula, then see where you need to concentrate your efforts to create value. Every product and service can be described this way.

Total value = real value + perceived value

Let’s take it apart to understand it. Real value comprises the tangibles. It is relatively easy to measure. Real value can be expressed in this manner:

Real value = function/cost

Function is what the product or service does in mechanical or analytical terms. How much money does it save you or make for you?

Imagine you are buying a new car. If you want to get the best real value, you would get the most function (efficient ground transportation) for the lowest cost.

You could measure the car's function factor by comparing it with the cost of your practical alternatives: public transit, car pooling, taxi, bicycle, limousine, various car models. You might wish to consider the costs of these alternatives in terms of time and inconvenience. What does your new car give you that these other modes of transportation don't?

Having determined the new car's function factor, you can divide it by its cost. Is its function worth more to you than its cost? If so, the new car has real value.

At the end of your analysis you would buy the cheapest car. Right? Not necessarily. 

Remember that what you are willing to pay for your car is based on the total value to you, which is a factor of both real and perceived value. 

So, sometimes without realizing it, you assign value to less quantifiable benefits and buy something that you like. 

Liking is not part of real value, it is part of a product's perceived value.

What is Perceived Value?

Compared with real value, perceived value is harder to measure. It is influenced by emotion, image, and other intangibles - all the benefits you should emphasize in your marketing efforts.

Perceived values are not bad - they are a reality. As long as we are individuals we will think differently, perceive differently, and place different values on things.

Beware of that. Use it to your advantage. When your prospect wants to negotiate price, remember to build up your product's perceived value.

By the way, always deliver real value too.

George Torok Keynote Marketing Speaker Co-author of Secrets of Power Marketing
Get your free copy of "50 Power Marketing Ideas" Power Marketing on FaceBook Marketing Zoo on Twitter