How to Utilize Feedback Information to Secure Repeat Customers
By Richard D. Hanks Chairman and President, Mindshare Technologies | October 28, 2008
Chances are you're familiar with early 20th-century Italian economist Vilfredo Federico Damaso Pareto. Doesn't sound too familiar? Perhaps the "Pareto Principle" rings a bell?
Maybe you recognize it as the "80/20 rule." Pareto discovered that 80 percent of the land in Italy was owned by 20 percent of the population. That ratio seemed to manifest itself in other areas too, and today is widely adopted by businesses as a rule of thumb in many areas. For example, more often than not, roughly 80 percent of your sales will come from 20 percent of your client base.
For the lodging industry, this is a critical rule. Your loyal customers will look for your brand in every city they visit. If you really treat them right, they will go out of their way to find your hotel, even if it's in an inconvenient location.
The random, one-time transient guest is certainly critical, and a strong way to improve REVPAR is to put heads in beds. But, getting them to return over and over again is the best way to increase long-term profits.
The question then is: what turns a one-night resident into a frequent guest? You may think you have the answer within your existing operations - nice beds, clean rooms, friendly staff, tasty menu, etc. These are all important, but there may be something else your guests are looking for, something more subtle. Find out what that is, and they'll keep coming back.
Acquiring Customer Opinions