Sunday, March 16, 2008

Happy Customers = Money

In order to be a successful company you have to be making some sort of profit. Duh. But what most people don’t take into consideration is the source of their profit. Yeah you’re making a killing off your beverages and the food tastes great but is that the true source of your success? A guest can go to a restaurant for the first time based on the outstanding food reviews but the question is, what will get them to return for a second time? The food may be great but was it an enjoyable experience and worth the time and money? In the article, “Customer's Emotions Linked to Positive Restaurant Profits” the author discusses the idea of providing satisfactory customer service to guests. By creating a memorable experience for their customers, “the result is that highly engaged customers are found to be loyal, go out of their way to do business with, say good things about, and feel passion for the brand and experience” (HT Magazine, 2007). The article mentions that “restaurant chains with high customer-engagement scores far outperformed low-scoring counterparts”, therefore proving that going the extra mile really does make all the difference. Basically, if you do wonders for the guest, they will do wonders for you.

I found this article to be basic common knowledge. Obviously if you provide a positive memorable experience for a guest, in the long run you will benefit greatly. The guest will return, which brings in money, and the guest will tell others about their experience, ultimately encouraging others to go. Therefore by keeping your customer happy, you make money. After some thought, however, I realized that many companies may not realize the importance of this concept. Not all companies have employees that are dedicated to customer service. Many employees are simply there to pay the bills and at the end of the day don’t care about the effect that they may have had on a guest. This article is meant to encourage companies to enforce customer satisfaction and even states “they need to hire and retain employees who make the dining experience fun…but most important, restaurants who can quickly and effectively resolve customer concerns are the clear winners” (HT Magazine, 2007). If need be, customer satisfaction should be incorporated in the employee training so that the employees understand the mission of the company and what they are working for” After all, if at the end of the day you have no customers, you have no business.

Source: Customer's Emotions Linked to Positive Restaurant Profits. Hospitality Technology Magazine. 1, November 2007.http://www.htmagazine.com/ME2/dirmod.asp?sid=&nm=&type=MultiPublishing&mod=PublishingTitles&mid=3E19674330734FF1BBDA3D67B50C82F1&tier=4&id=3941C382641D4BFEA3615553B0374250

4 comments:

Anonymous said...

It's crazy how simple it should be for employers to understand that providing great customer service will lead to success in their company yet many of them hire employees that don't provide it. If I go out for dinner or something and have a great server that is fun, helpful, and always smiling it just puts me in a great mood. Restaurants can really thrive with great customer care. If I have a great time at a restaurant it’s guaranteed that I will go back and that I will tell my friends to go there. That right there can simply be one way in which more profit will come in. There is so many workers out there that could care less about the customer and just come to work to get paid and don't bother to leave a positive impression on the guest. I think guest satisfaction should definitely be involved in employee training.

Danielle's Hospitality Blog said...

I think that this article as rosie said is crucial in making staff understand the importance of their interactions with the guests. It all hinges on those moments that can make or break the entire experience. When people are willing to spend their money on a service they have certain standards and expectations. If these aren't met they take it personally because it directly relates to them. Why should they spend their hard earned money on something that is going to make them feel bad or unimportant? While it’s a business for us, its the leisure time of our guests so we must be sure we handle it with care.

Rori Cohen said...

I agree that any person who opens a restaurant should understand the basics of customer satisfaction and how that will relate to profits and success. I also think they should understand the need for proper hiring and training of employees in order to retain high employee retention. Unfortunately, for some reason or another, more than half of new restaurants will close down within 5 years and I bet a lot of these restaurants failed because of poor customer satisfaction.

Cheryl's Blog said...

I think this article states the most important thing in the hospitality industry, customer service. No matter what kind of service a company is offering, from hotel stays, to spa treatments employee attitudes greatly impact the business. We have learned from day one that employee training can make or break your business. An employee should never have a “bad” day, because every person that they interact with will know and remember that experience. The hospitality industry receives most business from repeat customers, which means that every time that patron enters the establishment they should receive top notch service. Hiring just to fill positions should never be done. Each employee should be able to bring something to their position even if it is something as small as a smile.