Your existing customers are usually your best customers. They are already coming to you, they are already purchasing room nights and they return time and time again! Unless… You fail to keep in touch!
Whether you call it customer retention, account management, or customer relationship management - it is something that should be a part of your business plan. Developing a strategy to show your existing guests and accounts how much you appreciate their business is something every hotel should have. Taking them for granted is a very risky business practice. Some of our Inns have lost accounts and could not explain why. This says the inns were not keeping in touch with their accounts.
What if we told you that a revenue producing account moved to your competitor, all because they had someone engaging with them from their new hotel? You’ve heard the phrase “the squeaky wheel gets the grease” about complaints, but the same holds true in a positive way, as well. How much effort does a phone call, pleasant email or hand-written note take? A lot less than what you will have to do to replace that account. Taking 5 minutes a day to reach out to the booking secretary or a project manager says that YOU CARE about their business and their relationship with your hotel.
Develop a customer retention plan. It does not have to be extravagant and should not be time consuming or complicated. Listed are a few ideas that you can incorporate into a plan of your own:
Contact your top 5 to 10 accounts at least once a quarter. Use your ‘Top Producers Report’ to find out what accounts are producing at your location. The ‘Top Producers report’ is a great start to finding new accounts! Your ADOS can assist you in getting in touch with the decision makers. Let the account know you appreciate their business!
Give your current customers a fair rate. We all do a great job of offering intro rates and discounts, but can we reward the existing customer with something similar? This can be tricky as you do not want to heavily discount an existing customer, but keep in mind your competition is going to be offering intro rates to get them to leave you. Value can be added to their stay/rooms in other ways.
Keep track! Many of our properties do not know the account has left until it is too late! If you were tracking your top accounts, you might have been able to see a decline in business and could have contacted the client and saved the account. Look at the ‘Top Producers Report’ often at minimum monthly, but weekly or bi-weekly is best. Compare accounts each month to determine if they are increasing or decreasing.
Don’t forget the guests! It’s important to call the decision maker or office manager, but greeting the account’s travelers goes a long way, too. A happy guest is an advocate to continue staying at your property if another hotel comes knocking at their door offering a good deal. LISTEN to your customers! They will offer you constructive ideas to improve your property, your customer service and ultimately, your revenue!
Throw some appreciation to your regulars who may not be staying with a business account. Some of our regulars may be visiting family, consulting with a local business, or is an entrepreneur who is loyal but not VP Account eligible.Be sure to greet these folks warmly, welcome them back, and even leave a thank you note, holiday card, or snack box in the room to show them you appreciate their loyalty.
