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ATTENTION OSSN TRAVEL AGENTS:
THERE IS A SERVICE EPIDEMIC IN THIS COUNTRY!
TIME TO WOW YOUR CLIENTS!
BY GARY C. SAIN CTC
EXECUTIVE VP/PARTNER
YESAWICH, PEPPERDINE & BROWN
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Here are some startling facts...
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A typical business hears from only 4% of its dissatisfied customers.
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Why customers quit...3% move away, 5% develop other friendships, 9% leave for competitive reasons and 14% are dissatisfied with the product.
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68% quit because of an attitude of indifference toward the customer by the owner, manager, or some employee. |
What is the effect?
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A typical dissatisfied customer will tell 8-10 people about his/her problem.
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1 in 5 will tell 20.
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It takes 12 positive service incidents to make up for one negative incident.
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7 in 10 complaining customers will do business with you again if you resolve the complaint in their
favo
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1 in 5 will tell 20.
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If you resolve it on the spot, 95% will do business with you again.
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The average business spends 6x more to attract new customers than it does to keep old ones.
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Some impressive stats! All of us have experienced bad service, which in most cases has lead to brand dissatisfaction and loss of brand loyalty. In addition, it motivates a switch to a competitor's brand. Lost revenue for the brand we had hoped to do business with for a long time, in addition, increased frustration in doing business with someone new with a non-proven track record. This happens all too often in America and it has become a service crisis.
In addition, according to the 2002 YPB/Yankelovich National Leisure Travel Monitor, 66% of American consumers believe that giant companies have gotten too big to give reliable service to their customers and 62% feel that the service people they deal with do not care about them or their needs. An interesting note...38% of American consumers are willing to pay as much as 20% more for products and services customized to their specifications. This last statistic is very important for travel agencies.
OSSN travel agents have an incredible opportunity to build their brands with new and existing customers based on...1) service being poorly executed by service providers in America...2) the increasing appeal of consumers who want customized product offerings and...3) the tremendous appeal of travel. Couple this with time poverty and increased stress in our American way of life, OSSN travel agents can offer a distinct value proposition to their clients.
The 2002 YPB/Yankelovich National Travel Monitor also state leisure travelers clearly indicate that providing the best options and value, product knowledge and saving time and money for their customers are extremely/very important selection criteria in choosing a travel agent. This is also true of the ability of travel agents to answer questions regarding safety and concerns. A substantial number of travel agent users also report that they select travel agents based on the agent's ability to provide assistance while they were on a leisure trip.
OSSN travel agents are in a unique value position to deliver WOW to their clients.
What is WOW?
WOW is exceeding your client's expectations in such a way it forces the customer to take notice and say
"WOW". The personalized service is so spectacular and spontaneous, it creates a discernible distinction in the mind of the customer that no other service company or store can match. It creates instant brand satisfaction, builds brand loyalty and repeat selling opportunities. The value proposition becomes greatly enhanced. No longer is value measured strictly by price/ product. WOW is creating value by personalizing the interaction in the selling cycle with the customer and customizing the end product so it fits exactly what the customer wants and needs...not necessarily what is on the shelve or what is easy to sell.
Creating WOW is not based on the premise of one-size fits all. It is a deep understanding of the customer's needs and overall profile. In addition, part of the new value equation is saving time and energy for your customers/clients. This is probably the most important value proposition OSSN travel agents can offer...their ability to offer customized packaged travel options while reducing time and stress for their clients. This intimate understanding of the customer coupled with personal interaction creates these unforgettable
WOW encounters.
OSSN travel agents can truly capitalize on the service mood in America. A tremendous void exists. How do travel agencies build customer loyalty, provide exceptional service and keep customers for life? How do we create
WOW with our customers/clients? Can this be a discernible difference in an industry where the perception is of
"sameness"?
Here are a few examples of travel agents and travel agencies delivering
WOW...
"Our home phone number is provided to each client for any unexpected emergency. A customized travel itinerary is provided for those clients taking significant trips (over $25,000). This is in the form of a book which is personally written (as opposed to Xerox copies) and also features restaurants, sightseeing, and shopping data that has been personally researched and is also very current." Phoebe Weinberg, Greatways Travel
"Sometimes the loyalty comes from my clients dropping in to say HI and my talking to them about nothing. Or they asked to use my fax machine or telephone. Or having a meeting in the back room for the local arts council. Giving the client exactly what they want. A client is always treated like we know who they are (even if we have no idea who they are). Profiles are pulled up the minute their name is mentioned so we sound friendly." Lynn Price, Cruise Vacations
"One client loved the ship's itinerary but knew that the décor of the suite would not be to his wife's liking. We blocked the suite for several weeks before the selected sailing during which time a decorator did his magic and transformed the accommodations to the client's liking, including selected furniture. Yes, the suite was put back to its original after the sailing." Rudi Steele, Rudi Steele Travel
"I also had fun with arranging a picnic on a field in the Hungarian countryside. The party of 20 arrived in a bus and there was nothing but grass. Shortly afterwards, a couple of planes arrived dropping waiters and food by parachute. The waiters wore tux's and white gloves. White linen sheets were placed on the grass. Then came the champagne, wine and all the goodies. Everyone had a great memorable time." Rudi Steele, Rudi Steele Travel
"Two years ago on a Friday night, 10 minutes after closing, I
re-opened for a couple. They wanted help in finding a hotel room in Vancouver. I took pity on them and found them a hotel room. For the next three years, we had prepaid tickets from Yemen to London, London to Vancouver, Portland roundtrip Rome plus hotel rooms, and Portland roundtrip Rome. These trips went on for three months because the client worked oversees. Great repeat business from a hotel booking!" Mike Kelly, Vacation.com
"We arranged an exclusive tour of the Vatican with the Pope's ex bodyguard for client's who are devout Catholics. They had the prividge of touring small private areas of the Vatican that are not open to the public. We also had a couple who are shopaholics who were staying at the George V (Four Seasons) in Paris. As a surprise, we told them to leave a few hours open an a particular day and we had a car/driver pick them up and take them on a private tour of the Hermes factory." Mary Jean Tully, The Cruise Professionals
"For their 50th anniversary, the children of a couple decided to surprise them with a special cruise. What they did not know was that we secretly booked all of their children and grandchildren on the same cruise. We pre-arranged early embarkation for the family. We arranged to have the family surprise the couple at dinner. It was an unforgettable memory!" Mary Jean Tully, The Cruise Professionals
These are terrific examples of delivering WOW. So...how can you do the same? OSSN will provide four
WOW principles to you in 2003 thru this newsletter format. We will kick off with the first one...ARE THEY CUSTOMERS OR CLIENTS?...in this issue. We will provide the other three, one per quarter, for the remainder of 2003. At the end of the year, and if you truly implement these principles and ideas for Delivering
WOW, you will be on your way in improving client loyalty, client retention, improved revenues and overall satisfaction from your job. However, it can only happen if you walk the talk!
1) ARE THEY CUSTOMERS OR CLIENTS? It is important to make the distinction between customers and clients. A customer is someone who buys from you one time. Usually they are buying for one reason...price. They change brands on a regular basis based on who is offering the best deal. They are not brand loyal and may not offer a repeat sale opportunity. They tend to be brand nomads...in their perspective...all brands are created equal. A client, on the other hand, is a repeat sale. They value service, consistency, recognition, price/value, someone who knows their personal needs, etc. Clients tend to be brand loyal. They buy from service personnel they know and who know them. They form a personal relationship with the brand and the brand's representative. They value the recognition they receive from the brand in the way of extra service, offers, value add's, etc.
WOW IDEA #1...Develop an internal program to turn more customers into clients. For example, implement a travel club for all customers/clients to join...no fee for enrollment. The Club would provide a means of communication to all customers/clients. The more you can communicate with customers...the more chance you have of turning customers into clients. The Club would be supported by email newsletters, travel offers, travel tips, safety updates/alerts, etc.
WOW IDEA #2...Segment your customer database by the lifetime value of each client. By performing this exercise, it will help you to understand that in travel...its not about the one trip...its about the potential of many trips over many years by many individuals. If you can win the respect and loyalty from your clients, you have the opportunity to rebook them each and every year for a number of travel trips and experiences. Plus you may have the opportunity to book their family members, children, and friends. So, don't ever look at a travel transaction as the one time $799 cruise for two. Instead, calculate in your mind a forecasted number of trips this client could mean to you over a lifetime. Remember this number and place a dollar value on it. Each time when you interact with this individual, you will have a greater appreciation for their business and their future potential.
WOW IDEA #3...Create a balance sheet for each of your clients. In this individual account, you have debits and credits. Each and every time you exceed your client's expectations, you will have earned one credit. However, each and every time you don't exceed your client's expectations, you earn a debit in the account. Over a period of time, these credits and debits will add up. The more credits you have in each one of your client’'s accounts...the more repeat business you will have, the more brand loyalty you will have and the more referrals you will have. Just the opposite will hold true for debits. This method can be a superb tool in helping you and your agency evaluate how many credits you are providing to your clients on a monthly basis. If you or your staff don't see enough credits, it can provide the impetus to improve the balance sheet of your clients.
WOW IDEA #4...When dealing with clients, go the extra step with each major travel booking...not necessarily for airfare only bookings...but for more robust travel transactions. Provide something you know the client will like, however, don't tell them. SURPRISE them. Maybe it's a limo pick up, a welcome amenity in the hotel room or cabin, a bottle of wine in a restaurant you know they will like, an upgrade to a better hotel room/cabin, etc. The list is as long as the creativity. Find ways to delight and surprise your clients.
WOW IDEA #5...Remember your clients at the Holidays and special occasions. Not just the major Holidays, but special days of recognition. For example, Halloween, Secretaries Day, Bosses Day, Mothers Day, and Father's day. It certainly makes sense for Xmas, Hanukah and Thanksgiving. The idea is to recognize and say thanks to your clients for doing business with you. It also keeps you front and centered in their minds...they can't forget about you. If you think this is a bad idea...think about how many personalized cards/greetings you receive on a yearly basis from people you do business with. I bet the number is extremely small to non-existent. Outside of family and friends, we have lost this art of celebrating special days with those who are valued assets in our lives.
So...do you have customers or clients? As stated earlier, it costs 6x more to attract new customers as it does to maintain your current client base. However, maintaining the clients you have is not easy. They have many different options to choose from...some of them cheaper. The key is to treat them as lifetime clients and deliver
WOW to them in every way possible. Never give them a reason to look elsewhere!
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