'Is the customer always right?' This is a question guaranteed to spark a debate in those working in the hospitality industry, with many quick to jump to the 'no' side of the argument.
Instead of being too hasty in your decision to disagree, here are three reasons why customers should always be right if you want your business to succeed.
1. Negative feedback can be devastating
When working in the hospitality industry, you're bound to experience plenty of pleasant customer interactions throughout your working day, and according to eBay, happy customers tell four to six people about their enjoyable experience. Great, right?
However, one disgruntled customer who has not enjoyed their time is reported to tell an average of 17 people about their negative experience, states the report.
One small lousy review can cause a big backlash in the form of a lowered reputation, loss of profits and fewer customers through the door.
To avoid negative word of mouth, ensure that your team are up-to-date with customer service training courses so that they best know how to rectify a difficult situation, whether they agree with a potential complaint or not.
2. Happy customers spend more money
Maximising profits is one of the main goals set by any business. In the hospitality industry, the largest driver of such earnings is those bought in by customers spending.
However, if a customer is unsatisfied with their experience, it can easily affect your profit margins.
A study from the Harvard Business Review found that customers who had the best past experiences with a company spent 140 per cent more than those who had not enjoyed their time.
If you want to reap the rewards of healthy profit margins and great customer spending, you must ensure your consumers feel welcome and appreciated so they will return. Research from Business.com found that acquiring new customers costs five to 10 times more than selling to a current customer.
Customers who had the best past experiences with a company spent 140 per cent more than those who had not.
3. It's good business practice
Showing you're the bigger person and that you're willing to go above and beyond to please customers, and maintain a strong reputation for the business you work for, not only practises good business ethics, it also shows the signs of management material.
If there is someone in your team who is displaying traits of a good hospitality manager, help them develop their career with Artisan's hospitality management course. Keen to find out more? Give us a call today!