Service recovery in the Digital Age

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  • 1. Service Recovery in the Digital Age Feb 13th, 2014 Presented by Felipe Colina A Revinate Webinar, in partnership with
  • 2. 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
  • 3. Four Years, 23,000+ Properties
  • 4. How Revinate Works Act Learn STR Integration Competitive Analysis Sentiment Analysis Listen Post-Stay Surveys On-Site Surveys Online Reviews Facebook Insights Twitter Stats Foursquare Metrics Klout Scores Social Media
  • 5. Before we get started… •  You are all on mute. •  Please use your GoToWebinar control panel to ask questions during the webinar. •  You will receive both the recording and slides of this presentation within the next 48 hours.
  • 6. #ServiceRecovery Tweet us any of your feedback or questions and follow us at @revinate.
  • 7. Build a Culture of Growth Ivy League 100% Online Real World Certificates 1:1 Experts Collaboration
  • 8. ……………………………………………………………………………………………….   To  enroll  visit  www.revinate.com   100%  free  to  enroll.   8
  • 9. 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
  • 10. How hotels fail when it comes to service delivery
  • 11. Service failure is inevitable
  • 12. But it’s what happens after that matters….
  • 13. Failure - - it happens to everyone
  • 14. Bad stays, real consequences Dissatisfied customers ……………. Damaged reputation ……………. Unresolved Issues ……………. Lost sales
  • 15. 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  
  • 16. 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  
  • 17. 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.
  • 18. Tips and best practices for service recovery
  • 19. Service Recovery Paradox
  • 20. 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
  • 21. Common Service Failures Common  Service  Failures   Most  services  failure     are  fixable!  
  • 22. Attitudes During Service Recovery RAY  HOBBS   Senior  Vice  President,Kelco   Management  &  Development  
  • 23. 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  
  • 24. 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  
  • 25. 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
  • 26. Learning from Reviews Unsuccessful Service Recovery
  • 27. Learning from Reviews Successful Service Recovery
  • 28. Social Media Crisis Management 1.  The  Complaint   2.  The  Crisis   3.  The  Response  
  • 29. Emerging technologies for service recovery
  • 30. 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
  • 31. 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  
  • 32. 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)    
  • 33. The Power of Mobile Connectivity •  four minutes.
  • 34. On-Site Feedback •  four minutes. Revinate On-Site Surveys
  • 35. Benefits Improve your Operations Turn Promoters into Marketers Assess performance and track issues Export and email customers directly
  • 36. Closing Thoughts
  • 37. 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
  • 38. Questions
  • 39. Stay in touch! Felipe Colina Marketing Manager | felipe@revinate.com For a demo visit: http://www.revinate.com/about/contact/ @revinate | facebook.com/revinate | revinate.com/blog