A little lesson in good customer service
I’m at the Grand Hyatt in Kauai right now. I haven’t stayed at this hotel for approximately twenty years. One of the things that most impressed me back then was that the washers and dryers were free. I used this as an example of “don’t ask your customers to do anything you wouldn’t do” for years.
Tonight I checked if they’re still free, and they are. It’s remarkable that a “Grand Hyatt” class hotel not only has laundry rooms, but that the washers and dryers are free. Kudos to this hotel for not trying to nickel-and-dime people.
Comments (9)
Such 'unbundling' (charging for washers/dryers, charging for snacks on airlines) is simply a subtle way of raising prices. The question is whether they lose more customers who are put off psychologically by the apparent pettiness of it or because it jars with their expectations and hence their overall satisfaction. If so, then the company has made a huge miscalculation.
As noted above, getting new customers is the hard bit. That means avoiding losing existing customers should be pretty paramount. Every decision around #b and #c should be made in the context of 'to what degree will we put existing customers at risk if we do this?' Unfortunately, most companies are not forward thinking enough to make that calculation. Instead, they take their existing customers for granted, and misguidedly think/hope they can have their cake (current customers) and eat it too (get away with extracting more).
To get out of this way of thinking, I counsel businesses to think, when doing strategy, there is only one way to grow a business...#a - get more customers. #B (sell more stuff) is really just setting up a new business line to which you have to 'get more customers' (hopefully having the leg up with the access to your existing customer base to introduce to). #C (raise prices) is really just setting up a new business for a higher tranche of value. In short, #b and #c are just versions of 'get more customers for new business lines.'
For example let's say you stayed at the EconoLodge and paid $59.99 + Taxes. If the EconoLodge was similar in service, cleanliness, and they did have coin op laundry but charged say $1.00 wash and $1.00 dry...what would be your opinion?
I'm just asking. Why? Because I think the Grand Hyatt can afford to have free coin op laundry...But is it really? Don't they include the cost of this into their daily rack rate? The EconoLodge (or any other brand not in the same market as Grand Hyatt) is providing coin op laundry but they also don't include the costs in their rack rate.
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