Customer Service Lessons for Hospitality Industry Leaders

A guest relations expert explains three reasons to go the extra mile for extra revenue.

A few years ago, Forbes published the headline, “Businesses Lose $75 Billion Due to Poor Customer Service.” Yes, with a “b.”

The report was based on research from NewVoiceMedia – now Vonage – and the figure had increased by $13 billion, according to a similar study two years prior. But what about customer service could cause a business to lose that kind of money?

Further research from software marketing company Moz suggests online reviews and other psychological factors contribute to losses.

Ninety percent of first-time customers read online reviews before visiting a business. The majority trust reviews as much personal recommendations and positive reviews make them trust the company more.

Hospitality Excellence compiled the list of vital guest experience lessons to improve customer service below.

1. Guests remember experiences

Roberta Nedry, Hospitality Excellence’s founder, recalls a restaurant experience that could’ve easily ended badly. But a caring server turned it around.

Nedry and a friend were sat in the back near closing time. Their server was a pleasant and attentive young woman named Melissa.

Melissa was friendly; the food and drinks were brought to the table promptly. However, the food wasn’t appetizing. Nedry didn’t have to notify her – Melissa picked up on her guest’s social cues and brought out another dish without hesitation.

“We acknowledged her service in the tip and will probably visit this restaurant more frequently because of her extra efforts,” Nedry recollected. “A casual, late-night dinner with no expectations turned into a surprisingly memorable experience.”

2. It’s tougher to earn a positive review

Going out of your way for customers can pay back tremendously. Why else would someone care to leave a review on Yelp? It doesn’t take much to earn a negative review. But a positive review takes real effort from the customer service staff.

As mentioned above with Nedry, she was likely to return – and to tell others about her experience. Positive reviews are authored by repeat customers who can incite new business later on.

“Sometimes [customers] are thrilled to tell us and we get more business,” Nedry said. “A happier customer [can lead to] new ideas on what to leverage others and more aligned business strategies.”

3. The impact of a negative experience

Poor customer service can lead to negative reviews. That can be by word-of-mouth, or worse – online. It’s important to train your staff to go above and beyond with each guest they encounter.

Google motivates a lot of consumer spending.

According to Moz, businesses risk losing up to 22% of customers because of one negative article. If your business has three negative articles in a search query, you risk losing three-fifths of potential customers. And it only increases by more negative comments and articles.

“Ensure employees are the apple of your guests’ eyes,” Nedry said. “Make sure the rotten ones are not impacting the health of service delivery and protect the heart of guest memories and experiences.”