The Restaurant Doctor - Electronic House Call

ELECTRONIC HOUSE CALL - September 11, 1998

DISTINGUISHED GUESTS
The Charles Hotel in Boston's Harvard Square is demonstrating the power of treating different customers differently. It now identifies its most valuable customers -- guests who stay at the hotel six or more times per year and spend a certain amount of money during these visits. The hotel calls its initiative the Distinguished Guest Program. In order to serve DGP members appropriately, it has streamlined check-in procedures so no stop at the front desk is necessary. It also assigns a room based on the individual's past preferences, places a special robe with the guest's name on it in the room, and offers preferential seating in its restaurant.

The results have been impressive. The hotel has achieved 10% growth in revenue per available room for the past two years -- largely attributable to the program. Bill Andreorio, who is in charge of the program, says us the initiative has strengthened client loyalty. "These people could stay anywhere," he says. "They choose to stay here." The hotel's Distinguished Guests also serve as an extremely insightful focus group. In the process of closely monitoring the opinions and concerns of its most valuable customers, the Charles Hotel has learned how to improve many aspects of its service offering -- everything from how it handles interactions with guests to the items on its restaurant's menu.

A QUESTION FROM THE DOC
What are YOU doing to recognize and reward YOUR most valuable guests?

(This article was reprinted from the INSIDE1to1 Newsletter by Don Peppers and Martha Rogers, Ph.D. You can sign up for a free subscription on their website at www.1to1.com/articles/subscribe.html or by emailing them at mailtosubscribe@1to1.com.)

A STAT TO PONDER
At the Neighborhood Marketing War College in Orlando last month, a panelist shared some research that the typical restaurant guest dines with you 2.3 times a YEAR! This factors in the one-time guest and those who return more often. This means that if you could treat your guests in such a way that they would come back just one more time a YEAR, you would be looking at a 43.5% increase in volume! Are you giving your guests that level of quality experience. Are you up to it?

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