Staff problems can ruin guest loyalty

Categories: Building Guest Loyalty
As published in:  Hotel & Motel Management
Date: December 10 2007
Author: Jonathan Barsky, Lenny Nash

Huge efforts and expenses go into winning new customers. Once they are on board, we all are familiar with the many benefits of keeping these newly minted customers happy. So it is particularly striking to find out that a single staff-related problem can turn a loyal guest into a detractor who speaks out against a hotel or brand at every opportunity.

According to a recent Market Metrix study of problems reported by hotel guests, on average, 12 percent of hotel guests report having a problem during their stay. Fewer guests (9 percent) report problems at midscale-without-food-and-beverage hotels (only 7 percent at Drury Inns) and more guests (15 percent) report problems at upscale casinos.

By far, problems caused by staff have the biggest negative impact on guest loyalty. Guests who experience a problem related to a staff issue are 47 percent less likely to return to that hotel, a 4-percent increase since 2005. In fact, on average, the impact of any guest problem on loyalty is increasing. Customers seem to be raising the bar and are less tolerant of mishaps than they have been in the past.

Problems with billing and food and beverage were the next most severe type of guest problems. While problems with a guestroom are the most common, guests are more forgiving about problems with the room and are only 30 percent less likely to return to that hotel. Ironically, a friendly staff member with a can-do attitude might have more impact on customer loyalty than an expensive room remodel.

St. Regis Hotels & Resorts leads the pack of brands delivering a problem-free guest experience. Only four out of each 100 guests report having a problem at a St. Regis property, and staff are rarely mentioned as the cause. Conversely, 20 percent of Americas Best Value Inn guests report having a problem during their stay, mostly related to the guestroom.

Of course, service recovery is central to problem resolution. Research has demonstrated that the majority of customers whose difficulties are resolved will remain loyal, but 90 percent of customers whose problems are not solved will never do business with that company again.

Errors in service require immediate response. Acknowledge, apologize, correct and follow up—ensure the customer's satisfaction and root out the problem. Offer sufficient reimbursement and restitution.

Obviously hotels should strive to provide customers with no reason to complain in the first place. But when imperfection strikes, a well-crafted recovery process can turn a weakness into good business.

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Jonathan Barsky and Lenny Nash work for Market Metrix LLC (MarketMetrix.com), a firm that provides multi-channel survey, analysis and service improvement tools and benchmarking data for the hospitality industry. For more information, call (800) 239-7515.

Jonathan Barsky and Lenny Nssh work for Market Metrix LLC MarketMetrix.com, a firm that provides customer and employee programs for the hospitality industry. For more information, call (800) 239-7515.