{"id":158,"date":"2014-08-06T21:52:58","date_gmt":"2014-08-06T21:52:58","guid":{"rendered":"http:\/\/public.servicecheck.net\/blog\/?p=60"},"modified":"2014-08-06T21:52:58","modified_gmt":"2014-08-06T21:52:58","slug":"the-exponential-effect-of-guest-recovery","status":"publish","type":"post","link":"https:\/\/dev.servicecheck.net\/the-exponential-effect-of-guest-recovery\/","title":{"rendered":"THE EXPONENTIAL EFFECT OF GUEST RECOVERY"},"content":{"rendered":"<p><span style=\"color: #000000; font-size: small;\">It\u2019s hard to downplay the importance of guest recovery in a restaurant\u2019s ability to succeed and grow; and chances are, you\u2019re actually losing money with your current program.<\/span><span style=\"color: #000000; font-family: Times New Roman; font-size: small;\">\u00a0 <\/span><span style=\"color: #000000; font-size: small;\">Why is your guest recovery program so important; well, did you know:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: small;\">According to an article in CRM Strategy, repeat customers spend 33% more than new customers<\/span><\/li>\n<li><span style=\"font-size: small;\">80% of profits will come from your top 20% most loyal customers, based on a study noted in Emmet and Mark Murphy\u2019s <\/span><em><span style=\"font-family: Times New Roman; font-size: small;\">\u201cLeading on the Edge of Chaos\u201d<\/span><\/em><\/li>\n<li><span style=\"font-size: small;\">An increase in customer retention of 5% can actually increase your profitability by 75%, a study done by Bain &amp; Company shows<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-size: small;\">With this in mind, you would think a restaurant\u2019s guest recovery program would be at the top of its priority list; unfortunately, this is not the case. According to an article recently published by CBS Money Watch, only 7% of guests felt their experiences with guest services exceeded their expectations, and less than a quarter of them felt companies were actually willing to exceed expectations<\/span><a title=\"\" href=\"file:\/\/\/C:\/Users\/lharriso\/AppData\/Local\/Microsoft\/Windows\/Temporary%20Internet%20Files\/Content.Outlook\/70HPKQ1Q\/Guest%20Recovery%20Blog%20FINAL.docx#_ftn1\"><span style=\"text-decoration: underline;\"><span style=\"color: #0000ff;\">[1]<\/span><\/span><\/a><span style=\"color: #000000; font-size: small;\">. With such a bearish outlook on service after the sale, many brands are starting off behind the eight ball. In addition, a report by CBS News tells us that an unhappy guest will tell up to 24 friends about their bad experience (and this was before the ubiquity of Social Media).<\/span><span style=\"color: #000000; font-size: small;\">\u00a0<\/span><\/p>\n<p><span style=\"color: #000000; font-size: small;\">So, why is it that most restaurants are not prioritizing their guest recovery program? From our perspective, there are three reasons why a restaurant\u2019s guest recovery program is being ignored: <\/span><\/p>\n<ul>\n<li><span style=\"font-size: small;\">Most restaurants are spending so much time and effort on marketing for new customers, because they do not realize the value behind a guest recovery program; however, even conventional marketing wisdom teaches us that it takes 4 \u2013 6 times more to gain a new guest than to keep an existing one<\/span><\/li>\n<li><span style=\"font-size: small;\">Most restaurants\u2019 guest recovery programs do not provide the analytics necessary to prove a Return on Investment for the program, even though these programs typically return up to 400% according to the <\/span><em><span style=\"font-family: Times New Roman; font-size: small;\">\u201cInternational Review of Retail, Distribution &amp; Consumer Research\u201d<\/span><\/em><\/li>\n<li><span style=\"font-size: small;\">Most restaurants do not understand what best practices are required for an effective and efficient guest recovery program, especially in today\u2019s world of 24\/7 digital and social communication<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-size: small;\">So, how does this get lost in departmental translation? Consider the anecdote of a boat with little holes in the hull, whose captain uses a bucket to scoop out the water that continuously seeps in. When asked why he doesn\u2019t repair the hull to improve the boat\u2019s performance, the captain responds, \u201c\u2026because it works, and have you seen the price of wood these days?\u201d You can\u2019t float forever; fixing those little holes in your guest recovery program might be the single most beneficial investment a business can make. <\/span><\/p>\n<p><span style=\"color: #000000; font-size: small;\">What\u2019s the catch? Many companies invest in their guest recovery programs with no regard for what have proven to be industry best practices and become discouraged when they don\u2019t see the results they expected. It\u2019s like going to the gym 5 days a week but using bad form when going through the circuits \u2013they\u2019re doing something, but it\u2019s not working out. If you want to generate up to 60%<\/span><a title=\"\" href=\"file:\/\/\/C:\/Users\/lharriso\/AppData\/Local\/Microsoft\/Windows\/Temporary%20Internet%20Files\/Content.Outlook\/70HPKQ1Q\/Guest%20Recovery%20Blog%20FINAL.docx#_ftn2\"><span style=\"text-decoration: underline;\"><span style=\"color: #0000ff;\">[2]<\/span><\/span><\/a><span style=\"color: #000000; font-size: small;\"> more profits than your competitors, make guest recovery a higher priority than they do, and you\u2019ll see the revenue roll in \u2013exponentially. <\/span><\/p>\n<div><br clear=\"all\" \/><\/p>\n<hr align=\"left\" size=\"1\" width=\"33%\" \/>\n<div>\n<p><a title=\"\" href=\"file:\/\/\/C:\/Users\/lharriso\/AppData\/Local\/Microsoft\/Windows\/Temporary%20Internet%20Files\/Content.Outlook\/70HPKQ1Q\/Guest%20Recovery%20Blog%20FINAL.docx#_ftnref1\"><span style=\"text-decoration: underline;\"><span style=\"color: #0000ff;\">[1]<\/span><\/span><\/a><span style=\"font-family: Calibri;\"><span style=\"color: #000000;\"> Michael Hess, &#8220;<em>Most Companies Fail Customer Service Test,&#8221; <\/em><\/span><span style=\"color: #000000;\">(CBS Money Watch 2013) <\/span><\/span><a href=\"http:\/\/www.cbsnews.com\/news\/most-companies-fail-customer-service-test\/\"><span style=\"text-decoration: underline;\"><span style=\"color: #0000ff; font-family: Calibri;\">http:\/\/www.cbsnews.com\/news\/most-companies-fail-customer-service-test\/<\/span><\/span><\/a><\/p>\n<\/div>\n<div>\n<p><a title=\"\" href=\"file:\/\/\/C:\/Users\/lharriso\/AppData\/Local\/Microsoft\/Windows\/Temporary%20Internet%20Files\/Content.Outlook\/70HPKQ1Q\/Guest%20Recovery%20Blog%20FINAL.docx#_ftnref2\"><span style=\"text-decoration: underline;\"><span style=\"color: #0000ff;\">[2]<\/span><\/span><\/a><span style=\"font-family: Calibri;\"><span style=\"color: #000000;\">Murphy and Murphy, &#8220;<em>Leading on the Edge of Chaos<\/em>,&#8221;<\/span><span style=\"color: #000000;\"> 2002<\/span><\/span><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s hard to downplay the importance of guest recovery in a restaurant\u2019s ability to succeed and grow; and chances are, you\u2019re actually losing money with your current program.\u00a0 Why is your guest recovery program so important; well, did you know: According to an article in CRM Strategy, repeat customers spend 33% more than new customers<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[15,16],"_links":{"self":[{"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/posts\/158"}],"collection":[{"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/comments?post=158"}],"version-history":[{"count":0,"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/posts\/158\/revisions"}],"wp:attachment":[{"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/media?parent=158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/categories?post=158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.servicecheck.net\/wp-json\/wp\/v2\/tags?post=158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}