If you’re not focusing on customer loyalty, your business is likely missing out. Unfortunately, many businesses become too focused on trying to obtain new customers. It’s also important to focus on customer loyalty, especially in the hospitality industry. A 2011 study from Harris Interactive and RightNow found that 86% of those surveyed stopped doing business with a company due to bad customer experiences. Therefore, you’ll want to learn why having customers is so important. With that in mind, here are five important benefits of having loyal customers.
- Increased Profits
Effective property management for hotels often focuses on increasing profits. That being said, it’s hard to do this with customers that aren’t loyal. Statistics show that building loyalty with only 5% more customers leads to an average profit increases per customer, ranging from 25%-100%. Loyal customers often feel valued. Therefore, they are likely to continue purchasing your company’s products and services.
- Often Makes Things Easier for Employees
You’ll often find that companies with loyal customers are doing something right. If a business isn’t dealing with angry customers, this makes things easier for your employees. Companies with happy employees don’t have to worry about high turnover rates. In turn, your business likely won’t have to spend a lot of money on hiring and training new workers. Therefore, loyal customers create employees that share this same sense of loyalty to your business.
- Great Source of Referrals
Many hotel companies spend large amounts of money on marketing. Considering that, various forms of marketing are likely to have mixed results. Therefore, it will take time and money to find the sweet spot for your marketing efforts. If you want to focus on an important marketing segment, start increasing customer loyalty. Consumers often speak with others about a good or bad experience they’ve had. If your customers are happy, they’re likely to refer their friends and family to your hotel.
- Avoiding a Bad Reputation
Statistics gathered from CEB research found that 96% of those having to expend high effort with a business will likely be disloyal to the company. For your business, this could mean losing a lot of money. Therefore, it’s important to always practice great customer service for each consumer walking through your doors. In this day and age, consumers are quick to get online and publicly vent their frustrations about a business. Setting high excellent customer service standards reduces these concerns while increasing the reputation of your business.
- Forgiveness Should Your Company Make Mistakes
Everyone makes mistakes from time to time. That being said, one mistake could affect a new customer differently from someone who is loyal. If customers don’t know the excellent service you provide, they might think mistakes are the norm. On the other hand, loyal customers tend to be much more forgiving when mistakes happen. This is another important reason to focus on increasing customer loyalty.
In closing, it’s important to have loyal customers. If you’re struggling to have loyal customers, it’s important to find out what’s going on. Property management for hotels can sometimes feel daunting. Considering that, you’ll want to check out hotel management software. This type of software makes property management for hotels far easier than before. Whether you need help with the back office or front desk concerns, hotel management software takes care of problems. In turn, you’ll have more time and energy needed to focus on other hotel management matters.