For the past several years, the term ‘loyalty’ has risen to become a major industry buzzword in the hotel arena. As a result, many hoteliers have launched customized loyalty programs, and implemented new innovations to attract and retain guests.
This is especially timely because the competition from OTAs, other hotel brands and AirBNB has become increasingly more intensified. With this in mind, it begs the question: are hotel guests truly loyal and how do we measure it?
According to a recent McKinsey podcast about the ‘consumer decision journey,’ only three categories out of 30 are loyalty driven. While this may not be good news for hoteliers, the data provides an opportunity for hotel brands to develop the right programs to create loyalty.
The best way to do this is to ask the right questions to your guests. Many large brands rely on Net Promoter Scores (NPS) to gauge loyalty, which at first glance seems like a viable program to implement. However, NPS scores rely on asking “how likely would a guest recommend a hotel to a friend or family member.”
Although this seems like a powerful point of data, loyalty is much deeper that just recommending a product or a service. Instead, hoteliers should ask these two questions:
- What one thing delighted you about your stay at our property?
- Is there anything about your stay that could have been improved?
These two questions tackle both the positives and the negatives of a stay. This two-sides-of-the-coin approach will allow a hotelier to learn about what is working well, and what needs to be improved. From there, they can make the organizational changes required to address these issues, and enhance upon what is already working well.
The McKinsey podcast may offer sobering news for hotel brands about the state of consumer loyalty but by asking the right questions, tailoring day-to-day operations, and developing loyalty programs accordingly, it is possible to crack the code for delighting all guests in ways that they will always want to return.