Published on February 18, 2014
Service Recovery in the Digital Age Feb 13th, 2014 Presented by Felipe Colina A Revinate Webinar, in partnership with
About Revinate SaaS tech company based in San Francisco Singapore, Sydney, Munich, Abu Dhabi, Amsterdam & NYC oﬀices Founded in 2009 80+ full-time employees 23,000+ hotels in 143 countries Focused on Hospitality & Restaurants
Four Years, 23,000+ Properties
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Agenda 1. How hotels fail when it comes to service delivery 2. Tips and best practices for service recovery 3. Emerging technologies for service recovery
How hotels fail when it comes to service delivery
Service failure is inevitable
But it’s what happens after that matters….
Failure - - it happens to everyone
Bad stays, real consequences Dissatisfied customers ……………. Damaged reputation ……………. Unresolved Issues ……………. Lost sales
Silence does not equal satisfaction Customers who do not complain does not mean that they were totally sa6sﬁed with their visit Many customers can be passively voicing their dissa6sfac6on
Why don’t guests share feedback? Don’t know who to complain to Don’t think it will do any good May accept part of the blame May want to avoid confronta6on
Service Recovery: Financial Benefits METHODOLOGY FINDINGS Sample: Brand used for this study is upscale fullservice brand with a large number of hotels nationwide that generated over 300,000 survey responses. The study estimates that the brand recovers $158,951,080 (per annum) by employing recovery eﬀorts. Purpose: Identify the eﬀect of problem resolution on intent to return and then apply a methodology to calculate the financial eﬀect of service recovery eﬀorts Calculation: Revenue recovered calculated based on the intent.
Tips and best practices for service recovery
Service Recovery Paradox
Service Recovery Paradox: Example METHODOLOGY • • • Sample: 11 four-star hotels (three independent and eight belonging to chains) in Canary Islands Focus: hotel reception and restaurant services of the selected hotels Measurements: questions asked about: • Perceived quality of service at the reception and the restaurant against expectations • If they had made a complaint, and had been asked about it by staﬀ • If an eﬀective service recovery eﬀort was made in response to this complaint FINDINGS • • • Customers who had experienced a recovery encounter perceived a higher level of service quality for intangible attributes than noncomplaining customers These intangibles are assurance, empathy, reliability and responsiveness Customers who complain, but experience a high level of service recovery, may be even more satisfied than those who were satisfied in the first place
Common Service Failures Common Service Failures Most services failure are ﬁxable!
Attitudes During Service Recovery RAY HOBBS Senior Vice President,Kelco Management & Development
Attitudes During Service Recovery 1. AGenHon STOP WHAT YOU ARE DOING – Give the Guest your undivided aGenHon DO NOT BE DISTRACTED – Concentrate solely on the Guest -‐ Request assistance from other Associates MAKE EYE CONTACT – Maintaining eye contact with the guest conﬁrms you are paying aGenHon BE EMPATHETIC – “I can understand how this has inconvenienced you.....” 3. Follow Up REMAIN IN CONTACT – Maintain frequent contact with guest to keep them informed of resoluHon progress FOLLOW UP – Contact guest to ensure acHons taken have brought about a resoluHon the guest is happy with COMMUNICATE – Enter info in Service Recovery Log Book. Review with Associates on next shi_ INFORM MANAGEMENT – Write a note to GM or leave voice mail message for GM to advise of guest’s concerns and acHons taken 2. AcHon ACKNOWLEDGE THE GUEST’S CONCERNS TAKE NOTES – Ask the guest to allow you the opportunity to write down their comments CLARIFY – Repeat what you have heard and ask quesHons to make sure you understand the concerns APOLOGIZE – “I am so sorry this has occurred to you......” TAKE OWNERSHIP – “I am going to personally take care of this for you!” AND you do it! OFFER OPTIONS – Provide opHons for resoluHon of the issues to guest – allow guest to choose INITIATE ACTIONS – Begin acHons and involve those needed to bring abut a swi_ and complete resoluHon with the guest conﬁrms you are paying aGenHon RAY HOBBS Senior Vice President,Kelco Management & Development
Service Recovery Frameworks Conduct customer research Monitor customer complaints Iden6fy services problem Monitor service process Nurture the people factor Resolve problems eﬀec6vely Make amends to the hassle factor Conduct root cause analysis Learn from recovery experience Set up problem tracking System Modify service process monitoring
Service Recovery Standards • Set standards for response time for issues that arise • Designate customer service champions in each department to ensure guests issues are reported and shared • Explain what compensation options are available for employees to oﬀer and empower them to do so • Build in contingencies for when a problem escalates beyond a single incident • Incorporate previously reported issues as examples to use for future benchmarking & best practices
Learning from Reviews Unsuccessful Service Recovery
Learning from Reviews Successful Service Recovery
Social Media Crisis Management 1. The Complaint 2. The Crisis 3. The Response
Emerging technologies for service recovery
Rise of the Silent Traveler • Tech savvy and dependent on mobile devices throughout all stages of travel • Prefers online and digital communication, to human interaction • Expects speedy engagement and service delivery
Service Delivery Trends • Speed is of the essence • Guests paying more attention to amenities and services in the hotel • Ideal wait time between desiring, requesting and receiving a service is zero • How do you reduce the time between a service request and delivery? • Explore other channels of communication • As hotels become commodities, hotels that respond the fastest win • How they respond (through new technologies vs. traditional) varies by audience (millennial vs. Gen X/ Y) • Don’t confuse hospitality and service • Best service isn’t always face-to-face service • It’s providing a kind of service that the guest wants rather than the kind we think they should use • Sometimes technology-driven service recovery is the better option CHEKITAN DEV Associate Professor at Cornell University, School of Hotel Administra6on
Digital Signage A digital tour guide system in the lobby of IHG's Staybridge Suites hotel in New York City lets guests get informaEon about the city in an interacEve way.(Photo: Todd PliI, USAT) The digital screen at the Hotel Indigo Athens-‐University Area. Guests look up informaEon about their desEnaEon and post photos. (Photo: InterConEnental Hotels Group)
The Power of Mobile Connectivity • four minutes.
On-Site Feedback • four minutes. Revinate On-Site Surveys
Benefits Improve your Operations Turn Promoters into Marketers Assess performance and track issues Export and email customers directly
Closing Thoughts • Failure is not final • Stable service recovery processes have a positive correlation with guest satisfaction and loyalty • Service recovery is not just compensation • Speedy recovery and stable processes are what truly drive guest retention • Capturing feedback is key to service recovery • Hoteliers must make it easy, fast and engaging for modern to share feedback • Modern technologies enable eﬀicient service recovery • Hoteliers can capture feedback via tablets and delegate actions across their staﬀ via mobile devices
Stay in touch! Felipe Colina Marketing Manager | firstname.lastname@example.org For a demo visit: http://www.revinate.com/about/contact/ @revinate | facebook.com/revinate | revinate.com/blog
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