Managing Your Relationship Managing Your Relationship With Your GuestWith Your Guest

Presented By:

Paul Herman, Tom Leddy

And Gordon Jones

What Is “CRM”What Is “CRM”

Customer Relationship ManagementBecoming a common and important concept

in many industriesBeyond mere ‘Contact Management’Many industries have CRM software to help

sales process, on-going service, and even accounting

Value of CRMValue of CRM

Gain more control in interaction with customers

Manage expectations betterUnderstand what customers really wantProvide products that better serve customersIncrease trustCompetitive advantage

A Working Definition…A Working Definition…

“The Plan and Practice of managing the lifetime relationship with your customer.”– “The Plan”: Every successful endeavor

requires proper planning. Successful CRM rarely happens by chance. Many organizations jump to implementation w/o proper planning.

“The Plan and Practice of managing the lifetime relationship with your customer.”– “The Practice”: Systematic

implementation of your plans. Should produce measurable results. Should be evaluated and refined over time.

A Few Basic CRM A Few Basic CRM Concepts…Concepts…

Touch Points– Each time your company interacts with a customer is a

touch point.– Can we name a few?– Are they planned? Managed? Documented?– Are all “touchers” properly trained? Enroll your

complete staff in the vision.– Any way to increase the effectiveness of the touch?– Any way to increase the number of touches?

Touch Points:Touch Points:Opportunities for Building Life Opportunities for Building Life

Long RelationshipsLong Relationships

Lease.Six months pre-arrival.One week pre- arrival.Post stay thank you.Newsletters.

A Few Basic CRM A Few Basic CRM Concepts…Concepts…

Market Segmentation– Do you treat all of your customers the same?– Are they?– Consider the difference between a guest that stays once

ever in a 2 bedroom cottage and a guest that has stayed each of the last 10 years in a 6 bedroom home

We shouldn’t treat the one-timer badly, they may come back many more times

We should realize that the higher value guest deserves the best that we can offer.

Market Segmentation Market Segmentation ExamplesExamples

Saks Fifth Avenue– High value customers ($2000/yr) are routed to

special CSR’s.– The calls are routed such that a high value

customer is connected to a CSR in one second or less.

Could we coin a new acronym here:– HVG – High Value Guest?

SegmentationSegmentation

Can you use your database to see:– Your most valuable repeat guests?– Those who tend to rent last minute?– Those who look for a deal?– Those who like packages?– Those who rent early?– Those who like new construction?

Do you have a way to monitor preferences?

Define RelationshipDefine Relationship

Relationship:– The state of being related by kindred, affinity,

or other alliance. Webster’s revised unabridged dictionary.

How Does CRM Fit in the How Does CRM Fit in the Vacation Home Rental WorldVacation Home Rental World

Our industry actually has 2 major customers– Both owners and guests

We some quantity of both to thriveCustomers can choose to go elsewhereThe happier our customers are, the more

likely they are to stay or come back

How Do You Rank Your How Do You Rank Your Customers?Customers?

Is your owner your primary customer– Or

Is your guest your primary customerYou can’t have 2 primary customers

Today We’re Talking About Today We’re Talking About GuestsGuests

Whether the guest is your primary or secondary customer, he is still you customer and you can manage your relationship with him or her!

What Does Your Guest What Does Your Guest Relationship IncludeRelationship Include

You manage his vacation experience.You collect his money.You are his source for information about

the area.The more you know about him the better he

feels about the relationship.

Important Relationship ItemsImportant Relationship Items

Good communication– Regular out-going communication– Easy access to correct people in-coming

Recognition– More is better, not easy for newer staff

Respect– VIP treatment in some fashion– Reasonable deference from all staff

Consistency of actions Good follow-through on problems or research

Why Did He Choose You in Why Did He Choose You in the First Placethe First Place

Most established companyOldest companyStart-up company with lowest fee structurePersonal relationship or referralYellow pagesSaw your sign driving byBought the home from you

Be a GuerrillaBe a Guerrilla

Strive for and savor long term relationships. Know the myriad of benefits of long lasting

connections. Do all in your power to establish and nourish them. Know that it costs you 6 times more to sell to a new

customer. Know how to listen and ask questions about what

customers want. Know their individual likes and dislikes.

What Is a VacationWhat Is a Vacation

An experience. A state of mind. A chance to exhale. A time to reconnect. A break from life. Little touch of heaven. Rest of life just in anticipation of next vacation.

Manage the DreamManage the Dream

Prior to the vacation

– Build the Dream

Manage the DreamManage the Dream

Prior to the vacation

– Build the DreamDuring the vacation

– Fulfill the Dream

Manage the DreamManage the Dream

Prior to the vacation

– Build the DreamDuring the vacation

– Fulfill the DreamAfter the vacation

– Relive the Dream

Guest ServicesGuest Services

Basic maintenance.Cleaning.Handling details of reservation.Activities.

All Guests WantAll Guests Want

To trust you with his or her vacation.To receive timely communication.To call your office, be recognized and

treated with respect.To get quick, accurate answers to his

questions.To arrive for his or her vacation and have it

perfect.

Remember Horst Shultz Remember Horst Shultz from the Ritz?from the Ritz?

All customers want:No defects.Prompt resolution.Someone who cares.

Ritz-CarltonRitz-Carlton

“The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”

from the Ritz-Carlton Credo

Many Guests WantMany Guests Want

To be self-sufficient- left alone.Have more control.Recommendations.Contact throughout the stay.Planned activities.

Tools to Help Manage the Tools to Help Manage the RelationshipRelationship

Property management system.– Current address and contact information.– Current and past guest history.– Take full advantage of capabilities.

Newsletters.– Email or regular mail.

Guest surveys.– Do them, and publish the results.

Web site.– General site containing items of owner interest.– Access to reservation information.

Guest 800 number.

Guest RetentionGuest Retention

You want to keep your guests returning.It is always less expensive to do more

business with existing customers than to get new customers

You invest in each guest through your web site, photographs, brochures, etc.

Do They Really Know Who Do They Really Know Who You Are?You Are?

“Who’d you stay with?”

“Uh, I wasn’t the one who made the reservation.”

The Other Side of CRMThe Other Side of CRM

Some guests should be let goThey are too demandingTake up too much time and provide too

little profitYou can only know this if you measure it

Competitive AdvantageCompetitive Advantage

The closer your customers feel to you, the better customers they will be.

Better customers spend more money.Better customers complain less often.Better customers are more understanding

when things go wrong.

How to Do It.How to Do It.

Ask your guests.Differentiate yourself.Simple and sustainable.Make it apart of your system.Monitor and measure.

Have Fun!!Have Fun!!

Need to take the fear out of it!

What Do You Do to Set What Do You Do to Set Yourself Apart?Yourself Apart?

It’s your turn to talk……