CHINA UD/DAYS INN. Class 1 Introduction to Strategy for Effective Quality Service Delivery Examples from Disney and Marriott International. Why quality matters. Setting the service table: Porter’s Model in brief and Co-alignment in brief.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
While innovations in hotel design and style, technology, and personal amenities will always be important, nothing comes closer than personal service to providing what
Forces Driving Industry Competition
by the Customer
Low Cost Position
OVERALL COST LEADERSHIP
Particular Segment Only
Great Quality and Innovative Food
Over-the –top Guest Service
Entertainment & Show
most wonderful place in the world…
But it requires people to make the dream a
1. What an average customer spends in a year
The cost of poor service
To estimate how much poor service costs your organization, calculate the following:
2. The number of customers lost each year (for the average company, 25%)
3.The revenue lost form lost customers (1*2)
4.Lost revenue form people ex-customer talk to (3*10)
5. Time redoing things not done right in the first time
6. Time spent on warranty repairs
7. Time spent apologizing to customers
8. Time spent responding to government agencies, consumer complaint bureau etc.
9. Cost of shipping express instead of regular
10. Cost of collections from angry customers who refuse to pay
11. Cost of liability insurance
Other costs (continued)
12. Legal costs
13. Telephone costs for apologizing, explaining, etc.
14. Postage costs for reshipping, apologizing, explaining, etc.
TOTAL (add number 3 through 14)
Cost of poor service
Adopted form G. Roberts_Phelps
We will be better tomorrow than we were today.
Deliver the best service possible all the time.
Use the guest’s name often. Practice personalized
service, especially for out return guests.
Humility, Humor, Humanity.
“Thank you for staying with us” a great way to say “Happy you are here.”
At your service, How many I assist you,
Certainly, My Pleasure.
The 2.5 inch rule.
96 percent of unhappy customers never complain.
But if their problem remains unsolved—they usually tell ten other
(1) Case Studies—EI Front-office Management book
Keeping customers happy is good and profitable for the business. A 5 percent increase in customer retention has been shown to increase profits more tan 25 percent. It is estimated that companies lose 15 percent to 20 percent of revenues each year to ineffective, inefficient processes——although some might suggest that it’s even higher. Six Sigma provides a goal that applies to both product and service activities and that sets attainable, short-term goals while striving for long-range business objectives.
Here’ s how to deal with any complaint and turn it around:
G et the facts
A gree a solution
T hank the customer for complaining
F U N---Follow-Up Now!
Adopted form G. Roberts_Phelps
eyes of the beholder (Customer).
QUALITY CONTROL: measurement of
goods and services against
established standards of excellence.
We are now ready to address the question, what is quality customer service? So, here is my response.
Quality customer service is the ability to consistently
meet external and internal customer needs, wants, and
expectations involving procedural and personal encounters.
Product Quality and Service Quality:
Quality service is service that consistently meets or exceeds customer expectations.
Every customer comes with certain expectations about the quality of the goods, the services, and the total experiences of dealing with your business. When you exceed his expectations he perceives the quality as relatively high. When you fail to meet his expectations he experiences the quality as relatively low. In the back of every customer’s brain is a scale that compares what he gets with what he expected.
The recipe for success in hospitality is the same s that for any other type of business: identify customer expectations, consistently meet or exceed those expectations, and do so at a prices that is acceptable to customers and generates profits acceptable to the company.
Employee rewards and recognition
Tools for serving customers
External service value
=VALUE, SATISFACTION, LOYALTY
U.D. HART. DeMicco 2009
Importance to customer
“Necessary to have”
“Nice to have”
Q LH: Of all the components that make up the guest experience, from valet to front desk to housekeeping to foodservice, is there one that’s more critical to the resort’s success and the guest experience? If so, what is it?
A Wynn: The total voice of the employee. Everything else is a joke by comparison. Everything else doesn’t amount to one percent. Everything is the eye contact and the tone of voice of the employee. Forget everything else.
People of taste and discretion don’t want big, they want
nice; they don’t want dirty, they want clean; they want
pretty, not ugly; and they want to be cared for by people
who care for them as human beings, not as Blackjack
customers or a drink customer, or a diner, but as human
If 95% of Guests left satisfied; is that good enough?
At the Magic Kingdom last year, 5%=745,000 dissatisfied Guests
Dissatisfied Guests tell approximately 16 to 20 people about their experience.
*And if the Guest has access to Internet?
Can we afford to let this many Guests leave dissatisfied?
To determine the difference between what you do and what your customer expect, complete the following analysis and fill in your answers on the table that follows:
1. Fill in your four most important outputs (products or service) in the space shown (A—D).
2. Visit or talk with at least three customers to determine what they expect for each of your listed product or service outputs, how important each expectation is, and how the customers rate your company in providing it.
3. Fill in what you learn about your customers and their expectations for each product or service listed.
4. Note how important each expectation is to the customer on the following scale:
5. Show how your customers rate your product or service in this area on the following scale:
1=Does not meet expectation
2=Meets expectations adequately
3=Superior (exceeds expectations)
6. List any problems you uncover of which you were unaware.
1. Tangible (Landscapes, lobby, room etc)
2. Reliability (Do things work?)
3. Responsiveness (Willingness to serve and help)
4. Understand Needs (Safety, assurances, courtesy, friendliness, e.g. female travelers—safety and security)
5. Empathy (Individual attention and caring. Anticipation of needs.)
TRUE2 [adapted from Zeithaml.etc. Delivering Quality Service]
Guest Feedback Analysis (GFA)
Fill in the following table to determine guests ‘ importance compared to actual performance. The greater the value C, the more satisfied the guest. Plot the data on the matrix to show the areas of strength and weakness. (1=poor, 10=excellent)
Element of service/
performance or perception
Importance to customer
U.D. HART. DeMicco 2009
1. Working from annual accounts, take the total amount of revenue and divide it by the number of current customers.
Customer Value Calculation
The following value formula worksheet can help you to calculate the average
lifetime of each customer.
2. Calculate the average length of a relationship.
3. Total the number of referrals that became customers for the year, and divide by your total number of customers. Add one (representing the original customer).
4. Multiply the average spent per customer per annum, and any yearly dues, by the average length of a relationship.
5. Multiply the number of referrals by the total in box four above. This total is the average value of each relationship.
Adopted form G. Roberts_Phelps
Web Survey at Vita Nova——A Case Study
HART – DEMICCO 2009
Mini Case TQM-CQI
Tools for Collecting Data
Cast attitudes do impact Guest Satisfaction,
which in turn impact return intention.
Disney Theme Parks
Many Asian Hotels
Some Asian Airlines
Four Seasons, Ritz Carlton
McDonald’s Marriott Hotels
Cable TV Companies
Repair departments of many auto dealers
Example for a Continuous Improvement of Process
1. Stocking housekeeping carts
15/15 people stocking 15 carts
Versus 1/15: 1 person stocking 15 carts
1/15 = 1-2 hours
15/15= 5 hours (15*20 minutes for each cart)
2. Guestroom Cleaning
1/13: 1 housekeeping room attendant cleaning
3/45: 3 room attendant cleaning
Cycle time of new process reduced by 50% (rooms ready for sale by front desk in 50 percent less time).
Steps for TQM—CSI
Identify an Opportunity for Process Improvement
Identify what product or service need to be improved
1. Identify process improvement ideas.
2. Write the problem statement.
3. Developing the selection criteria.
4. Select the area for improvement that your TQM—CQI team
will work on.
Vilfredo Pareto, keenly interested in the political and social implications of
economics, observed that the majority of Italy’s real estate was
concentrated in the hands of a minority. Specifically, 80 percent of the real
estate was owned by 20 percent of the population. Over the years
reflections of Professor Pareto’s observation began showing up in many
different disciplines and applications, and it eventually came to be known
as Pareto’s Law, or the 80/20 rule.
You can the 80/20 rule operating in virtually any and every realm of human
activity. Look through your emails from last week. You’ll probably find that
80 percent of them went to 20 percent of the people in your address
book. Look in your closet or your kitchen cupboards. You’ll find that you
wear about the same 20 percent of your cookware, about 80 percent of the
the other 80 percent? What would happen? Let’s take a look at the
The 20-percenters currently generate 80 percent of our business. That means
they’re generating four times as much business as the 80-percenters. But hang
on, it gets better: Not only are they generating four times as much revenue as
a whole, but there are also four times fewer of them. That means that each of
our 20-percenters is generating sixteen times as much revenue as an individual
Now, what if all your customers were like those 20-percenters? What if your
could replace your current 80-percenters with a whole new crop of 20-
percenter-type customers? You’d have something like sixteen times your
We can take this one step further, too, because even though your current 20-percenters are the best customers your have right now, they may not be your ideal customers. Can you imagine how powerful it would be if you identified exactly who your ideal customer was, and then found simple, practical ways to fill your business with exactly that kind of customer?
CASE STUDY RITZ CARLTON
Applying Total Quality Management TQM
Ritz-Carlton is very clear about their mission:“Ladies and Gentlemen Serving Ladies and Gentlemen.” In a survey conducted by J. D. Powers and Associates, 96% of employees surveyed were able to identify the mission of the company successfully. Once the vision is clarified and shared, the leader can focus on serving and being responsive to the needs to the people. The greatest leaders have motivated other by energizing those around them with their vision.
Popularity is not leadership: Results are what define effectively leaders. Their
followers do the right thing. This is essential in the hospitality industry where
customers purchase goods and services on promise.
Leaders are highly visible: They set the example. Jonathan Tisch, chairman and
CEO of Loew’s Hotel and Resorts, requires that he and his top management spend
time each year working in all of the hourly positions in the company.
The “Strategic Plan” of Ritz Carlton Hotel?
A Leadership Eye for Detail
By Stan Bromley
Stan Bromley is Regional Vice President and General Manager, The Four Seasons Hotel Company.
My job is to make sure that the food is hot..not cold, service is friendly…not rude, rooms are clean…not dirty, the public areas are painted…not chipped, response to any request is fast…not slow. My job is to ensure that our employees and guests believe we are caring and sincere. That’s it. That’s what I do. I’ am a hotel General Manager.