Question

Topic: Student Questions

Customer Retention Really Exist ?

Posted by Anonymous on 25 Points
Customer retention really exist in a low level hotel industry?Most of the people only spent an overnight in a kind of budget hotels and they dont want interactive mutual relationship with the company. or the budget hotels are only about customer satisfaction?Is all about service quality and room cleaness, facilities,what else can lead a budget hotel to a good satisfied customers and a good crm strategy?
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  • Posted by Jessica_Castro on Accepted
    of course there is customer retention...when you deal with customers there is always customer retention to consider. While they may not come back immediately if they vacation or have a business trip in that area they will remember the service and will most likely want to stay there again.

    If you are a chain your hotel is going to speak for all the other hotels in your chain. So there is customer retention in that manner as well.

    I would suggest excellent service with small perks that people don't typically find in other chains. Maybe you could offer free wifi connection and cut a deal with your phone company. You could also offer free or discounted facials or massages with local entrepreneurs or any other discounts with any other local companies because they stay at your hotel. There are many things you can do and you know your business and your target customers...be creative

    Good luck!
  • Posted on Author
    Can you give an advice which books or articel worth to read in that case. I would like to see how theorys apply for the real life. i read a lots about customer retention, satisfaction, loyalty of advantage/loyalty cards,network providers but nothing in the hotel industry.

    thanks
  • Posted by Jessica_Castro on Member
    I am unaware of any articles or books, but I would think that whatever you have read thus far can be applied to your business with a few minor changes...Sorry I couldn't be of more help regarding reading material. Good luck!
  • Posted by Neil on Member
    Customer retention is the key to success in just about any business.

    If someone comes to your hotel and the sheets are clean, the service is good, and they got a good value, they will come back. If they have a bad experience, they will not come back and will complain to their friends about the experience.

    It is a well known axiom that it is much less expensive to keep a customer than to get a new one.

    There are many case studies supporting this, though I am not sure if there any specific to the low-end hotel.
  • Posted on Member
    You don't say what your price-point is, but at every price, customers want to feel safe, have a clean room and feel appreciated.

    Those elements make even more of an impact when the customer knows that not every hotel in your tier provides them.

    Start with consistent basics: a very well-lit parking lot, a clean lobby, and very clean rooms. Even Motel 6 offers free in-room internet in some of its hotels, so it's do-able at a budget rate. Make sure that hallways aren't dingy and that stairways are well-lit. Room locks should feel solid and secure.

    Now for the surprising touches. Good pillows go a long way. Clean bedspreads that don't smell funny. Carpets you'd actually want to touch with bare feet. If your TV channels are limited, make sure you have basics for business/family--news, PBS, weather, a kid's channel or two and a sports channel. If you don't have an in-house restaurant, work out deals with local restaurants to deliver and put their menus in each room. Really consider a free breakfast if you don't already serve one--even if it's a selection of cereals and breads plus coffee, juice and milk it can be a real time-saver and budget-saver for a family or someone on-the-go.

    Make sure all the value-added things you do are prominent on your web site, and train your front desk staff to be extra courteous and attentive.

    You can also figure out what other nearby services your average guest is likely to use and approach the owners of those businesses to create cross-marketing opportunities, like coupons, freebies and free extra services with purchase. When you're on a budget, even a free cup of good coffee goes a long way. Think about gas stations, restaurants, barber shops, vacation gear shops--even your local Kinkos for the business traveler. This way, you all win.

    Create a rewards club for return stays--both business and vacation. Free upgrades, a free appetizer, a free in-room fridge--there are a lot of things you can do that cost you very little but that make a big impression.

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