Meddic metrics for hospitality

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how you develop customer metrics that will actually give you insights I've been doing some work with one of the largest hotel chains in the world and obviously customer data is critical to them they want to understand how well they're doing so they asked me to come in and review their overall performance management approach and help them improve it a few years ago they developed their own in-house customer survey and like so many other companies what they did is they went out and looked at existing surveys covered their own survey together and then used this their aim was to basically see improvements over time and they've done that so they have lots of performance data a lot of reports coming out and as part of their monthly and quarterly performance packs there's a bit on customer information showing an upward trend indicating that customer performance has gone better over the years but this is probably as far as it went because I asked them a few questions say ok this is all interesting but how does it compare to other hotels and they couldn't really answer this I asked another question saying hey how is this information helping you to improve performance what are the kind of things you need to do differently and their survey was pretty standard egg was the reception friendly was the room tidy was the restaurant good so all these kind of questions and in the end what I said to them is that this is a bit like asking a customer about the things that you feel they want and then say have I given you what I think you want instead of actually asking the customer have I given you what you want so they realized that their existing metrics were not very good not delivering them lots of insights so we changed this and what I brought in is the Net Promoter Score the NPS this is basically a single metric that says or ask one question saying how likely are you to recommend to a friend and then ask gives us K from 1 to 10 and then people say yes 1 definitely not 10 absolutely and then you get inside the beauty of of something like a Net Promoter Score is that suddenly you have a metric that you can benchmark because it allows any Hotel to put the put this into context of other hotels so you get benchmarks off the hospitality industry and suddenly this metric actually means something you see where you are in comparison the other thing we brought in is we extended this Net Promoter Score with two more questions one we said what do you particularly like about us and the second question is what do you think we could do better what you now have is you have one metric that gives you really good insights gives you numbers that are benchmark above the other two questions give you insights about what you need to do differently what you can improve and what customers actually like and dislike so suddenly they have reduced their questions from about thirty to three their response rate has gone up and the insides are now really valuable they have learned completely new things why people would come to certain hotels as has does it have is it the venue do they come to certain events is it because it's close to shops or not again again they can use this for their marketing the other thing they learned is that certain people in these hotels made a big difference so in one hotels it was the bellboys that always made a big difference or a particular cocktail waiter so these kind of insights you wouldn't get from this standard survey that just asked 30 questions in little tick boxes yes or no yes or no because it doesn't give you what give you doesn't go beyond the very very simple tick boxes so we had better metrics the other thing we did is we then look at what data is already out there we now live in a world of big data and lots of other organizations lots of other ways of collecting data so they looked at companies like TripAdvisor and booking.com and what they do is they collect a and interestingly their response rate is actually higher so more people or people are more likely to answer a survey that comes from booking calm or TripAdvisor then from this particular hotel chain directly and the beauty is TripAdvisor makes this data available so he can now pull this in and again we created a routine by which every Hotel manager the first thing they do in the morning is they now read reviews on booking.com and TripAdvisor and they will answer them and they will take this information and put this into their own scorecards so again using some of this data the other thing they wanted to do is they wanted to have more granular insights what I see is that lots of surveys are not done frequently enough companies do them maybe once a month and aggregate them so they the survey identified a certain few areas that was a Jim and another area was the reception where some of the hotels were having some issues so what we did is we a little terminals there's a company called happy or not that installs a determinist where you basically say were you happy with the reception check-in experience today are you happy with the Jim and then you simply press a button a green or amber or red indicating how happy you are and this is now giving them real-time insights and giving them insight on when certain when people at reception are particularly unhappy or particularly happy and for me these are great examples of actually moving to better insights this company had plenty of KPIs they had great report well they're not not giving them they were not giving them what they needed making a few tweaks we now have benchmarking indicators real insights from the open questions and more real time data from the happier not terminals and bringing in external data this is has made this whole process cheaper their response rate has gone up and their insights are now really actionable this is what I do with my clients I help them develop performance management systems and better ways of gaining insights from data that really drive performance improvements hopefully I will see you in my next video if you would like to learn more head to my website at Bernard marcom where you can find tons of articles white papers and videos that will give you a lot more insides of real world case studies and examples