Companies need to change strategies as the economy changes from good times to bad. This message was brought home when I read a White Paper from my friends at Peppers & Rogers Group. The paper had a great chart highlighting the shifts companies need to make
As the economy expands businesses should focus more on acquiring new customers. And as it moves into a downturn, where it is today, companies should be focusing more on servicing and growing their existing customers.
With budgets tight and research showing it costs 6-10 times more to attract a new customer than retain an existing one hospitality marketing professionals need to focus more on their current customer base – making them feel like VIP’s and inviting them back.
Hotels most successful at re-attracting past guests share common marketing philosophies. They:
- Focus on capturing correct/complete contact data at registration
- Keep that information up-to-date with regular NCOA
- Understand the lifetime value of each guest
- Follow a strategic vs. a tactical approach to marketing
- Embrace Customer Relationship Marketing (CRM)
- Actively promote both offline and online word-of-mouth advertising
- Understand and employ direct marketing best practices
You’ll find plenty of customer retention ideas on the Hospitality Marketing Blog. I’m sure other readers would love to hear your ideas. Please feel free to share – add a comment.
Safe travels – Madigan Pratt