What is the most important question hoteliers should be asking themselves as they weigh how to differentiate in a sea of sameness? Most would think it’s about customer satisfaction. Many would drill down into issues related to their NPS (net promoter score). But new research from CEB has shown that the key question to ask is: How effortless is it to do business with your hotel? The predictive power of customer effort has proven to be strong. CEB found that of the customers who reported low effort, 94% expressed an intention to repurchase, and 88% said they would increase their spending. Only 1% said they would speak negatively about the company. Conversely, 81% of the customers who had a hard time solving their problems reported an intention to spread negative word of mouth. Today, effortless trumps “wow.”
I have been writing for HBR a few years on the subject of customer experience and there is an increasing focus on guest service as a key business differentiator. Those of us who have been in the industry for a while have seen our share of customer experience initiatives and improvement efforts. This topic isn’t new, but what makes it so hard?