Here is an article that made me question whether or not mystery shopping firms should be testing the guest service standards as they pertain to a client's Policies & Procedures. Do you know how much revenue is walking out the door when a consumer is disenchanted with service standards as dictated by a company's Policies & Procedures? In an economy where customers are in short supply, why would anyone want to turn a customer off by unfriendly Policies & Procedures?
Please find the full article, The Price of a Poor Experience, at:
http://blogs.harvardbusiness.org/bregman/2009/10/the-price-of-a-poor-experience.html?cm_mmc=npv-_-TOPICEMAIL-_-OCT_2009-_-MARKETING2
Tuesday, October 27, 2009
Friday, October 16, 2009
Why Customers Leave a Brand:
- 68% Poor customer service
- 14% Poor product quality
- 9% Pricing
- 5% Left to competitor based on recommendation
- 3% Needs have changed for consumer
- 1% Death
Statistics provided by Rockefeller Corporation
- 14% Poor product quality
- 9% Pricing
- 5% Left to competitor based on recommendation
- 3% Needs have changed for consumer
- 1% Death
Statistics provided by Rockefeller Corporation
Partnering with a Mystery Shopping Firm
A mystery shopping firm is your partner rather than simply a 3rd party vendor to a hospitality organization. Your concerns about guest service errors and integrity issues are intimate details not normally shared with a contracted consultant. Therefore, the relationship with a mystery shopping company is highly personal and requires immediate responsiveness to achieve your guest service objectives.
To assist hospitality executives in leveraging the partnership with a mystery shopping firm, here are some details you should know:
1) How to choose a firm
• Look for a mystery shopping firm that has experience in evaluating your specific industry
• Check with the Better Business Bureau for any complaints filed against a firm you are considering
• Look for references
• Verify that the mystery shopping firm has a Private Investigator license
• Look for a firm that offers access to your Account Manager after hours
• Look for a firm that trains evaluators in F&B, Casino, Spa, Hotel Operations, Entertainment, Retail, etc.
2) What services do you require?
• Guest Service Audit to test for discrimination – matched-pair testing
• Integrity Audit to follow the money and make sure hotel services are being charged to the guest rather than bypassed through direct tipping
• Scandalous Conduct Audit to isolate lewd conduct that could impair the Gaming Licensee
• Competitor Audit – learn what your competitor service standards are in comparison to your own
• Divisional Audit to test for the guest service standards across divisions to verify consistency in guest satisfaction
• Guest Service audit to determine level of guest service as it relates to Mobile and AAA standards
• Time audits – how long does it take for engineering to respond to a guest call?, how long is waiting on the phone before speaking to an operator?, etc.
3) Fundamentals
• Copy of Letter of Agreement
• A thorough explanation of your objectives for the undercover evaluations
• Proofing of the evaluation form that will be utilized to rate your service
• Locations that you wished to be shopped
• Who in the organization will receive the shop?
• Do you want a customized evaluation form to your company standards?
• Do you want to select which questions are weighted heavier than others to reflect the guest service priorities of your organization?
• Who should be receiving the completed evaluation form
• Do you want to capture statistical information?
• How quick of a turn around time do you want to receive the published evaluation after the on-property audit was performed?
• How often do you want an evaluation performed?
• How do you want the evaluation communicated – written or verbal
• How do you want to access the evaluation information – online login, e-mail, phone call, mail, etc?
• Billing method & billing cycle
• Specific instructions on how you want evaluation to be performed – cap on spending for a restaurant visit, hours & shifts you would like evaluated, Weekdays versus weekend evaluations, gender and ethnic background of evaluator, etc.
• Fee for services rendered
To assist hospitality executives in leveraging the partnership with a mystery shopping firm, here are some details you should know:
1) How to choose a firm
• Look for a mystery shopping firm that has experience in evaluating your specific industry
• Check with the Better Business Bureau for any complaints filed against a firm you are considering
• Look for references
• Verify that the mystery shopping firm has a Private Investigator license
• Look for a firm that offers access to your Account Manager after hours
• Look for a firm that trains evaluators in F&B, Casino, Spa, Hotel Operations, Entertainment, Retail, etc.
2) What services do you require?
• Guest Service Audit to test for discrimination – matched-pair testing
• Integrity Audit to follow the money and make sure hotel services are being charged to the guest rather than bypassed through direct tipping
• Scandalous Conduct Audit to isolate lewd conduct that could impair the Gaming Licensee
• Competitor Audit – learn what your competitor service standards are in comparison to your own
• Divisional Audit to test for the guest service standards across divisions to verify consistency in guest satisfaction
• Guest Service audit to determine level of guest service as it relates to Mobile and AAA standards
• Time audits – how long does it take for engineering to respond to a guest call?, how long is waiting on the phone before speaking to an operator?, etc.
3) Fundamentals
• Copy of Letter of Agreement
• A thorough explanation of your objectives for the undercover evaluations
• Proofing of the evaluation form that will be utilized to rate your service
• Locations that you wished to be shopped
• Who in the organization will receive the shop?
• Do you want a customized evaluation form to your company standards?
• Do you want to select which questions are weighted heavier than others to reflect the guest service priorities of your organization?
• Who should be receiving the completed evaluation form
• Do you want to capture statistical information?
• How quick of a turn around time do you want to receive the published evaluation after the on-property audit was performed?
• How often do you want an evaluation performed?
• How do you want the evaluation communicated – written or verbal
• How do you want to access the evaluation information – online login, e-mail, phone call, mail, etc?
• Billing method & billing cycle
• Specific instructions on how you want evaluation to be performed – cap on spending for a restaurant visit, hours & shifts you would like evaluated, Weekdays versus weekend evaluations, gender and ethnic background of evaluator, etc.
• Fee for services rendered
The Importance of “Customer Experience” in a Downturn By: Jeff Gurtman, Director of Mystery Shopping, LRA Worldwide, Inc.
When economic troubles loom, we’ve found the usual knee-jerk reaction is to sacrifice programs associated with quality and the customer experience – training, quality assurance/mystery shopping programs, guest research, etc. The benefits of a quality assurance program are compelling and easily communicated when businesses are flush with cash. But what happens when storm clouds are on the horizon? How does one compel businesses to invest in initiatives that are often thought of as “nice to have”? What we’ve found is that during an economic downturn, maintaining a quality assurance program and the differentiated customer experience that it helps provide is the most important insurance to have.
When ADR and RevPar are near historic highs, convincing a hotel company that a quality assurance/mystery shopping program can increase profitability is simple. Correlating the bottom line to guest satisfaction of “delight” is fairly straightforward. In leaner times, as hotels and other businesses that utilize mystery shopping on a regular basis become more cost conscious, their QA programs are amongst the first items to get cut. Although these businesses often recognize the benefits of quality assurance, they are convinced that eliminating QA is justifiable as they attempt to reduce costs….and perhaps lower prices.
Simply put, when the economy rebounds, businesses that slashed prices may find it difficult to garner the same pre-recession prices they once demanded and undo any damage the discounting pricing strategy caused their brand.
Therefore, businesses often look to make reductions on the cost side of the equation. This is a delicate exercise and requires businesses to have an accurate sense of their customer’s tolerance to change. Most businesses operate as a network of many concurrent operations working in harmony to achieve a common goal, and this is certainly true in hospitality. In the case of a hotel, the doorman, room attendant and the room service cook that makes a hamburger at 2 AM all have their individual responsibilities and tasks. Viewed from a more holistic perspective, they are all working together to make a guest’s stay pleasant and enjoyable. In a recession, the hotel may experiment with reducing the hours that room service operates to cut labor costs. The common goal remains constant – make the guest happy – but during harder economic times, controlling costs becomes paramount. What happens to that guest who is unable to get a hamburger at 2 AM? Are they still going to be happy with their stay? Is the goal of the hotel still achieved? Maybe…but maybe not. This is where mystery shopping and quality assurance can help hone in on the non-negotiables of the guest experience…and how well they’re being delivered.
As cost conscious controllers tighten the purse strings, quality assurance becomes an invaluable data stream whereby decision makers can identify areas for potential cost cutting and procedural streamlining and immediately test whether those changes have a discernable impact on the guest experience. As in the case presented above, the hotel manager can test when services can be streamlined without jeopardizing the guest’s enjoyment or satisfaction. Maybe that guest is just as happy selecting a snack from a display at check-in. Mystery shopping allows businesses to make more decisions incorporating live data from the customer’s perspective.
The adage that satisfied customers will tell an average of 5 people about their positive experience, conversely dissatisfied customers will tell an average of 10 people about their bad experience, holds even more true during a recession. As customers have less disposable income, their vacation, dining and general purchasing decisions become more contemplative. When they do spend money, customers have less tolerance for a flawed experience and will broadcast their discontent to their peers. At the same time, companies have less margin for error – if the overall pool of disposable income is shrinking, you better invest more to hold on to your share to weather the rough times. Utilizing data collected from a quality assurance program can help businesses ensure that a positive customer experience is retaining customers, and perhaps even gaining a few from competitors who have invested less prudently during the downturn.
In addition, mystery shopping can enable companies to quickly uncover misalignments between corporate policy and execution of that policy, allowing for early correction. When those policies are directly related to finances, a specially designed mystery shopping program can identify a drain on resources and immediately mitigate damages. Cash integrity audits at bars or restaurants or sales process evaluations are great examples of cost-centric mystery shops that can yield immediate savings or drive incremental sales.
During tough times, businesses seek ways to improve productivity and cut costs. Ultimately, a recession helps good companies become better. Stopping a quality assurance program during a recession simply does not make good economic sense. If anything, companies need more data to ensure that they are nimble and able to respond to their guests’ changing needs to keep up with the marketplace. Through quality initiatives, businesses can ensure that they have a consistent and accurate read on the pulse of their business, allowing them to make wiser decisions for their customers and the long-term health of their businesses.
When ADR and RevPar are near historic highs, convincing a hotel company that a quality assurance/mystery shopping program can increase profitability is simple. Correlating the bottom line to guest satisfaction of “delight” is fairly straightforward. In leaner times, as hotels and other businesses that utilize mystery shopping on a regular basis become more cost conscious, their QA programs are amongst the first items to get cut. Although these businesses often recognize the benefits of quality assurance, they are convinced that eliminating QA is justifiable as they attempt to reduce costs….and perhaps lower prices.
Simply put, when the economy rebounds, businesses that slashed prices may find it difficult to garner the same pre-recession prices they once demanded and undo any damage the discounting pricing strategy caused their brand.
Therefore, businesses often look to make reductions on the cost side of the equation. This is a delicate exercise and requires businesses to have an accurate sense of their customer’s tolerance to change. Most businesses operate as a network of many concurrent operations working in harmony to achieve a common goal, and this is certainly true in hospitality. In the case of a hotel, the doorman, room attendant and the room service cook that makes a hamburger at 2 AM all have their individual responsibilities and tasks. Viewed from a more holistic perspective, they are all working together to make a guest’s stay pleasant and enjoyable. In a recession, the hotel may experiment with reducing the hours that room service operates to cut labor costs. The common goal remains constant – make the guest happy – but during harder economic times, controlling costs becomes paramount. What happens to that guest who is unable to get a hamburger at 2 AM? Are they still going to be happy with their stay? Is the goal of the hotel still achieved? Maybe…but maybe not. This is where mystery shopping and quality assurance can help hone in on the non-negotiables of the guest experience…and how well they’re being delivered.
As cost conscious controllers tighten the purse strings, quality assurance becomes an invaluable data stream whereby decision makers can identify areas for potential cost cutting and procedural streamlining and immediately test whether those changes have a discernable impact on the guest experience. As in the case presented above, the hotel manager can test when services can be streamlined without jeopardizing the guest’s enjoyment or satisfaction. Maybe that guest is just as happy selecting a snack from a display at check-in. Mystery shopping allows businesses to make more decisions incorporating live data from the customer’s perspective.
The adage that satisfied customers will tell an average of 5 people about their positive experience, conversely dissatisfied customers will tell an average of 10 people about their bad experience, holds even more true during a recession. As customers have less disposable income, their vacation, dining and general purchasing decisions become more contemplative. When they do spend money, customers have less tolerance for a flawed experience and will broadcast their discontent to their peers. At the same time, companies have less margin for error – if the overall pool of disposable income is shrinking, you better invest more to hold on to your share to weather the rough times. Utilizing data collected from a quality assurance program can help businesses ensure that a positive customer experience is retaining customers, and perhaps even gaining a few from competitors who have invested less prudently during the downturn.
In addition, mystery shopping can enable companies to quickly uncover misalignments between corporate policy and execution of that policy, allowing for early correction. When those policies are directly related to finances, a specially designed mystery shopping program can identify a drain on resources and immediately mitigate damages. Cash integrity audits at bars or restaurants or sales process evaluations are great examples of cost-centric mystery shops that can yield immediate savings or drive incremental sales.
During tough times, businesses seek ways to improve productivity and cut costs. Ultimately, a recession helps good companies become better. Stopping a quality assurance program during a recession simply does not make good economic sense. If anything, companies need more data to ensure that they are nimble and able to respond to their guests’ changing needs to keep up with the marketplace. Through quality initiatives, businesses can ensure that they have a consistent and accurate read on the pulse of their business, allowing them to make wiser decisions for their customers and the long-term health of their businesses.
Thursday, October 15, 2009
Southern Nevada Index of Leading Economic Indicators
The index of economic indicators is a great tool for all business in the Southern Nevada territory. The index is compiled by The Center for Business & Economic Research out of UNLV. The report is issued twelve times a year and provides the business community with a very clear picture of the pulse of Southern Nevada economic indicators.
Currently, it appears that we are starting to see strength returning to our economy, as there is positive single digit growth in Gasoline Purchases, Gross Gaming Revenue, and Visitor Volume.
For the full September 2009 analysis, please log onto: http://cber.unlv.edu
Currently, it appears that we are starting to see strength returning to our economy, as there is positive single digit growth in Gasoline Purchases, Gross Gaming Revenue, and Visitor Volume.
For the full September 2009 analysis, please log onto: http://cber.unlv.edu
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