Jan de Roos, the HVS Professor of Finance and Real Estate at the Cornell School of Hotel Administration and executive director of the Cornell Center for Real Estate and Finance, discusses the effects of the economic downturn and continued market turbulence on the hotel industry’s growth. He highlights areas of recovery and suggests opportunities for growth. Click here to view the video.
Hospitality people know how vital regular customers are to staying in business. Regulars may not always run up the biggest restaurant bill or book the most expensive rooms, but over time, those familiar faces and repeat business lead to steady earnings long-term. And those regular customers are the ones most likely to actively promote your business or refer you to their friends.
But it’s astounding how often businesses ignore the fundamentals. When a disproportionate amount of time or attention is paid to new customers or large groups, regulars may become dissatisfied with the decline in service or feel they are being taken for granted. Earning customers for life is not a one-time accomplishment. It’s an evolving relationship that requires nurturing and constant evaluation.
Cultivating long-term customer loyalty should drive your entire business strategy. From the company’s mission statement down to individual performance goals, “earn customers for life” should be adopted as a mantra for your entire organization.
Want to know exactly how important a regular customer is to your business? Run the numbers. Calculate the lifetime value of a customer’s loyalty by taking an average bill and multiply it by the number of times they visit in a year.You’ve got a lifetime value metric in place, and now you can gauge the net effect that losing this regular customer might have on your bottom line.
Ask for their feedback, solicit their opinions, and most importantly, respond to their criticisms. They can help you improve your business practices. And do everything you can to ensure that when asked, they’ll speak highly of your business and recommend you to others.
Stever Robbins is right on the money in his piece about lifetime value. The takeaway: Keep that special jar of hot peppers in stock, if only for the guy who eats at your restaurant 5 days a week.
The courses have been very enlightening, and I am glad to have completed them successfully. The discussion forums and assessments were A1 and the course materials were just right. The content is so fulfilling, and, yes, I want to roll out a plan for how to share this knowledge with my colleagues. The sky is the limit.
Ithaca, NY, March 10, 2009 – Thousands of employees at some of the world’s foremost hospitality-related companies will gain preferred access to the online courses offered by eCornell, through a groundbreaking arrangement with Cornell’s Center for Hospitality Research, eCornell, and the Office of Executive Education at the School of Hotel Administration. eCornell, which is a subsidiary of Cornell University, will become a full partner with the center in offering this opportunity.
“We continue to seek innovative and helpful methods to share research-based information with the industry, and to help industry practitioners improve their knowledge and skills,” said Jennifer Macera, associate director of the Center for Hospitality Research. “This is especially important in the current economic environment.”
“eCornell is excited to be working with the Center for Hospitality Research in this new type of partnership,” added Chris Proulx, Chief Executive Officer of eCornell. “eCornell has been working extensively with the hospitality industry since 2002 and we are pleased to provide this additional opportunity for industry employees.”