Broken remote controls. Plumbing problems. Noise from adjoining guestrooms. Incorrect orders from room service. Room key issues. HVAC issues. Kids running in the halls. Not enough chairs at the pool. Slow service in restaurants. Incorrect room type at check-in.

And the list goes on and on.

Studies show that product problems account for nearly sixty percent of all guest complaints.

But there is one problem – over and above all others – that causes not only dissatisfaction, but a complete break in a hotel customer's trust.

What could negatively impact hotel customer loyalty so greatly? According to data-analysis firm Market Metrix, staff-related problems in hotels can lead to a whopping 26.2% drop in guest loyalty .

Service problems, on the other hand, make up a much smaller portion of reported problems, but have a much more dramatic impact on guest loyalty. Just look at staff-related problems in the table below. They are only 4.7% of reported problems. But staff problems punch way above their weight causing loyalty to plummet by over 26 points when they do occur.

On the other hand, the nearly 60% of hotel customer complaints COMBINED only account for a 12% drop in hotel customer loyalty.

This study begs the question: With such a large number of guest product complaints, how much time is your hotel spending to fix staff problems?

Television remotes can be replaced, but a disengaged hotel customer may be lost forever.

The post The One Problem that Costs Hotels the Most Customers appeared first on Kevin Donahue.

• 3 Keys to Customer Service Training and Retention from Ritz-Carlton VP Diana Oreck
  Ms. Oreck expresses Ritz-Carlton's passion for customer service training through empowerment and selection.
• Hey You—Your Elevator Pitch Stinks. Fix It.
  Hannah Morgan points out that, while our jobs and roles as salespeople have evolved, our quick sales pitch has not kept up with the times. I found this to be a great wake-up call read for the hotel sales profession, in particular.
• You ALWAYS Need a Business Card
  Even in this connected era, that little paper card remains a game changer for sales and service (even if you have the best iPhone/Android app for sales and service!)

For more customer service and hospitality sales insights, please follow me on Twitter: @mrkevindonahue.

The post 3 Great Sales & Customer Service Reads for the Week appeared first on Kevin Donahue.

"The Impact of Social Media on Lodging Performance," by Chris K. Anderson found that the number of reviews as well as the willingness of consumers to assign credibility to hotel reviews has increased over time. Anderson also found that a 1-point increase on Travelocity's review scale – such as increasing a hotel's review from 3.3 stars to 4.3 stars – drives an 11.2 percent premium in a hotel's rate, while still maintaining occupancy and market share.

Given these results, it's increasingly clear that hoteliers must dedicate resources to monitoring their social reputation, actively review online hotel reviews and invest further in guest experiences on-property to create engaged guests. (Read more on who writes hotel reviews)

Beyond Travelocity, Anderson determined through regression analysis that a 1-percent gain in a hotel's social media reputation is worth 0.89% in average rate lift and a 1.42 percent increase in RevPar.

The full social media impact study is available online from the Cornell School of Hotel Administration.

The post New Study Shows Hotel Reviews Drive Rate & RevPar appeared first on Kevin Donahue.

Countless books, seminars, blogs have been devoted to the topic of social media ROI, but (sadly) most seem to miss the most obvious point.

While I don't proclaim to have all of the answers, the answer to the question of converting social media followers to customers seems a rather obvious one:  The same way you converted your existing customers.  

From my perspective, there's too much status placed on 'fans' and 'fan counts' by most social media "experts". The people who "like" your brand are essentially giving your company a virtual high five. They appreciate something you've done or a perception you've created about your products. They may or may not be your current customers. And – unless you work to convert your followers into buyer – they may or may not be your future customers.

In a traditional sense, your Facebook fans and Twitter followers are the digital equivalent of window shoppers. Some of them know your brand well, they enjoy your products  and actively share their experiences with their friends.

But some  of your fans – a large majority – are standing on the sidewalk.  They like your window display, but it hasn't compelled them to open the door and try your brand. And this is where your business acumen and experience - more so than your social networking skills – come into play.

Social media is a tool for increasing your sales, not the solution.

So ask yourself and your team: What do you do as a brand that brings potential customers in off the sidewalk?

If you can answer that question, then you can convert social media followers into buyers.

The post How to Convert Social Media Followers to Buyers appeared first on Kevin Donahue.

You have all the time in the world to do what matters most.

— Jon Gordon (@JonGordon11) July 29, 2012

You can follow Jon on Twitter here: @JonGordon11

The post Leadership Quote from Jon Gordon appeared first on Kevin Donahue.