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STUDY GUIDE FOR MODULE NO. 3

Guestology
MODULE OVERVIEW

When it comes to measuring the success of your Guest’s experience, you don’t get to make the call – your
Guest does. No matter how hard you prepare, no matter how well you execute, and no matter how extraordinary
the experience, in the end, it’s your Guest who decides if the experience was a success. What do you do, then?
The best, the only thing you can do, is set the stage for success.

MODULE LEARNING OBJECTIVES

1. Define what guestology is and what a guestologist is;

2. Determine the predictors of customer expectation;
3. Identify the different types of customers; and
4. Determine who defines value and quality.

LEARNING CONTENTS

1.1 Definition of Guestology

1.2 Customer Expectations
1.3 Customers/Guests/Clients
1.4 Quality and Value
1.5 The Customer and the Definition of Value

1.1 Definition of Guestology

Guestology is a term originated by Bruce Laval of The Walt Disney it means that all the
organization's employees must treat customers like guests and manage the organization from the
guest's point of view “GPOV”

Guestology this emphasize the importance of guest in the terms of hospitality industry they're the
major important. They focus on the guest to make sure that they get what they pay for. And if guest
doesn't exist the industry and business will not be able to sustain the needs because they will be
bankrupt. They don't have money to used in their business so they must prioritize their guest. They
must gave them 100% satisfaction so they will come again. You must feel tothem that you are trusty
. Customer service and quality control is the most important part for the hotel business industry. The
value of excellence in customer service will be acknowledge by this hotel. This hotel’s management
will be introducing quality in customer service. The proposed hotel concept will definitely meet the
customer satisfaction and will have satisfied customer. For management team of a hotel Nowadays
one of the biggest challenges in the hotel industry is to provide and support customer satisfaction.
Quality products and service is main requirements for customer in the hotel industry. The starting
point of business is customer satisfaction. customer’s higher commitment and increase their return
rate depends in positive relationships with the customer. Long-term and reciprocally advantageous
relationships between customers and the hotels becoming progressively important because of the
highly positive correlation between guests’ overall satisfaction levels and the probability of their
return to the same hotel.

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It has been proven that guestology makes good business sense; actually it is the standard in
the service industry.
"When put in practice guestology makes it possible to increase guest satisfaction, which leads
to more repeat visits, which in turn drives revenues up."
This practice implies that the organization’s strategy, staff, and systems are aligned to meet
or exceed the customer’s expectations regarding the three aspects of the guest experience: service
product, service setting and service delivery.
“It all starts with the guest”
Guestology changes the way traditional thinking operates. Instead of focusing on maximizing
organizational efficiency, guestology approach forces the organization to start everything it does by
looking systematically at the guest experience from the customer’s or guest’s point of
view. The goal is to create and sustain an organization that can effectively meet the customer’s
expectations and still make a profit.
For example first-time guests may have general expectations when first approach your hotel; they
might be simply expecting to find a nice and clean room with comfortable mattress, good food at the
restaurant, clean environment... at a reasonable price. However, a repeat guest may have more
specific expectations based on past experience, it is important to be ahead
and anticipate those expectations, and even more important to try to exceed them. That is guestology
in practice.
If the organizational goal is to provide an outstanding guest experience, then the organization
must understand why its guests come to the hospitality organization, what those guests expect, and
what the company can and will actually do in order to meet, or exceed, their guests’ expectations.
Now, there is a renowned quote by one of the most successful entrepreneurs of our time:
“Clients don’t come first. Employees come first. If you take care of your employees, they will take
care of the clients” Richard Branson founder of Virgin
For executives who have responsibility for managing people I invite you to re-read the text again but
with a slight change, replace the “guest point of view” for “employee point of view” after all, people
interacting with customers or guests are by far the most able to make a difference in how customers
feel about the value and quality of the experience and are the most important component of the
delivery system, therefore they should be properly taken care of.
From my point of view, managing the organization from the guest’s point of
view is crucial for success, but best organizations also know that employees are their most important
asset, therefore:
“Hospitality organizations have to invest time and money, finding, nurturing and supporting their
employees.”
However, the reality is that many Hospitality Organizations fail to identify the elements that fulfil
their employees’ needs which in turn, lowers employee satisfaction and affects the quality of
their Service Delivery.
1.2 Customer Expectations

Customer expectation encompasses everything that a customer expects from a product, service or
organization. Customer expectations are created in the minds of customers based upon their
individual experiences and what they have learned, combined with their pre-existing experience and
knowledge.

What are customer expectations, and how have they changed?

By definition, customer expectations are any set of behaviors or actions that individuals anticipate
when interacting with a company. Historically, customers have expected basics like quality service

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and fair pricing — but modern customers have much higher expectations, such as proactive service,
personalized interactions, and connected experiences across channels.

To better understand how customer expectations are changing, Salesforce Research surveyed over
6,700 consumers and business buyers globally. In this research, “customers” is an aggregate of both
consumer and business buyer responses. These findings, published in the second edition of the “State
of the Connected Customer” report, give an in-depth look at:
• The factors influencing customers’ expectations.
• Which emerging technologies are influencing the future of customer experience
• Why brand trust is increasingly important and how companies can foster it.
•
For starters, the research found that 76% of customers now report that it’s easier than ever to take
their business elsewhere — switching from brand to brand to find an experience that matches their
expectations.

As disruptive companies leverage breakthroughs in cloud, mobile, social, and artificial intelligence
technology to deliver personalized, valuable, and immediate experiences, customers have more
choices than ever. As a result, they grow to expect this superior experience from any business they
engage with.

Understanding new customer expectations

Understanding customers’ needs — and exceeding their expectations — are becoming table stakes
for businesses to compete. Here are four expectations that are changing the game for companies.

1. CUSTOMERS EXPECT CONNECTED JOURNEYS: BREAK DOWN YOUR BUSINESS

SILOS.
• 70% of customers say connected processes — such as seamless handoffs or contextualized
engagement based on earlier interactions — are very important to winning their business.
• Customers are 3.7x more likely to view seamless transitions between channels as important
versus unimportant.

2. CUSTOMERS EXPECT PERSONALIZATION: CUSTOMIZE EVERYTHING.

• 84% of customers say being treated like a person, not a number, is very important to winning
their business.
• 70% of customers say understanding how they use products and services is very important to
winning their business.
• 59% of customers say tailored engagement based on past interactions is very important to
winning their business.
• Customers are 2.1x more likely to view personalized offers as important versus unimportant.

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8 Ways You Can Meet Customer Expectations and Close the Gap
Setting clear goals is an essential part of managing a successful company. But while your
expectations for your team might shape their individual roles and daily workflows, they’re ultimately
not the most important expectations your employees should be working to meet.
That’s because when it comes down to it, your success relies on how satisfied your customers are
with the products and services you provide. But many companies seem to think that their audiences’
expectations will fall in line with whatever it is that they offer. That’s rarely ever the case.
Instead, you need to take the time to understand what your customers really want and adjust your
products, services, and customer support accordingly. That’s why in this post, we’ll cover eight
strategies you can use to learn more about your customers’ expectations, and close the gap between
their goals and your own.
1. Get to Know Your Audience
The first step in meeting customer expectations is simply establishing a clear picture of who, exactly,
your audience is. And this requires going beyond basic demographic information like age, gender,
and location.
Of course, these details can be beneficial for developing marketing personas. But in order
to really understand your customers, you need to dig deeper and learn about their needs and interests,
as well as the factors that go into their buying decisions.
And your best resource for finding this information is your existing customer base. Ask your
customers what led them to seek out your product, and why they chose it over other options on the
market. Then, use their answers to develop a stronger understanding of what your audience is
looking for when they research your company and make sure that you’re providing exactly that.
2. Make Sure You’re Reaching the Right Buyers
Most companies launch their products and services with a clear idea of who their ideal buyers are.
But in many cases, those initial assumptions are wrong — or, at least, they’re not nearly specific
enough. It’s important to recognize, then, that your ideal customers may not be who you think.
Fortunately, you can determine who they are by analyzing your existing customer base. What traits
correlate with repeat purchases? Which segments tend to become long-term, loyal customers?
The answers to these questions will help you establish a more accurate picture of who you should be
focusing on with your marketing and retention efforts.
For example, let’s say you’re an accounting software company and your target audience is business
owners. After studying your customer base, you notice that customers who work at mid-sized
businesses are more likely to upgrade to your premium plan and to stay with your product longer
than their small business and enterprise-sized counterparts. This signals that you should shift your
focus to these high-value customers, and make them a priority when making key business decisions.
3. Look for New Ways to Meet Customer Needs
Once you’ve identified who your most valuable audience is and what it is that they’re looking for, it
should be your goal to continuously find new ways to better meet their needs. After all, you should

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never expect your audience to change their expectations to fit your product. Instead, you need to be
willing to change your product to fit their expectations.
Sticking with the account software example, let’s say you’ve determined that your mid-size business
customers’ main priorities are improving efficiency and saving time.
As you consider which new features to add to your product, you should keep your focus on these
goals — not on what your competitors are doing, or on the kinds of additions your team thinks would
be exciting to create.
When you keep the focus on what your customers actually want, you can be sure that they’ll
welcome your product improvements instead of viewing them as unnecessary bells and whistles.
4. Set Clear Standards for Your Support Team
As the team that interacts with your customers most often, your support team has a major impact on
whether or not your company meets customer expectations.
This means that hiring and training an excellent team of agents is one of the most important
investments you can make in your brand. And the best way to ensure that your agents provide the
level of service your customers deserve is by setting clear standards.
First, you’ll want to set goals for key support metrics like first response time, average resolution
time, and first call resolution rate. These are the easiest metrics to monitor and measure, and they can
help you establish concrete benchmarks for your team.
Then, create guidelines for responding to specific inquiries. Write a list of the most common
questions and issues you hear from customers, and establish appropriate responses for each. This
way, you can provide consistent customer support experience for each of your customers, and be
confident that their interactions are top-notch every time.
5. Be as Transparent as Possible
One of the most important factors in whether you’re able to meet customer expectations is whether
you take the time to help them set accurate expectations in the first place.
Some companies make it their sole focus at the beginning of each customer’s experience with their
brand to generate a sale. And while the reasoning behind this focus is clear, it’s not the best way to
set your customers up for success.
Instead, make it your focus to fully educate prospective buyers on what you have to offer, what they
can expect from your brand, and what policies they’ll be agreeing to if they become a customer. Be
fully transparent about pricing information, return and cancellation policies, and the level of support
they can expect from your team when they need assistance.
Sharing this information may not be as fun for your sales team as showing off new features and
impressive case studies, but taking the time to do so up front prevents your customers from being
caught off guard by policies they don’t like in the future. This way, they can make an informed
decision about making a purchase — and have clear expectations for your brand before they spend a
single cent.
6. Develop a Customer-centric Culture
Many companies put the responsibility of managing customer happiness solely on their support
teams. But this shouldn’t be the case. That’s because when it comes down to it, each employee’s
contributions have an impact on your customers’ experience with your products and services. And
you can highlight this impact by developing a customer-centric culture.
Encourage your employees to keep your customers at the center of each decision they make, whether
they’re a developer adding new features, or a marketer coming up with new campaigns.
This way, everything your company does will be done with the end user in mind — and will be
much more likely to meet and exceed their expectations.
7. Collect Feedback Regularly
As you work towards meeting customer expectations, the best way to gauge whether your efforts are
successful is to collect feedback on a regular basis.
Send customer satisfaction surveys, and ask questions about the entire customer experience. Can

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customers easily find the information they need to make decisions? Is the buying process user-
friendly? Does your product itself live up to their expectations?
Asking these questions will help you not only get a sense of the experience your brand provides, but
can also help you learn which parts of the process you could be doing better so that you can make the
kinds of impactful changes your customers want.
8. Scope Out Your Competitors
If a customer has worked with one of your competitors in the past, their expectations of your
company will be largely based on that previous experience.
And the only way to know whether you’re living up to those expectations is to spend some time
learning about your competitors. What are they doing well? What do their customers like about their
brand? And what are they doing that you aren’t?
If there’s a particular part of the customer experience that a competitor is doing better than you, it’s
in your best interest to focus your efforts on improving that part of the experience with your brand.
Then, instead of worrying about living up to the expectations created by other companies, you can
focus on making the kinds of improvements your competitors will struggle to keep up with
Hotel Guests' Most Common Complaints and How to Prevent Them
People who travel often know that hotel service isn't always as seamless as they've grown to expect.
Furthermore, people who do travel a lot tend to notice some things that regular customers maybe
wouldn't. Hotels that do everything in their power to prevent common problems from occurring have
a better chance of retaining their customers and keep an undamaged reputation. It's vital for hoteliers
to know how to deal with every situation and train their staff to be up to the task if any of the
problems occur. Here's our list of common issues that hotel guests encounter when staying at a hotel.
Unclean Rooms
This is a common issue with lower end hotels, but a complaint like this can happen even to the best
hotels out there. Whether the room hasn't been adequately cleaned, or there are bed bugs or
cockroaches walking around, uncleanliness is one of the biggest reputation killers when it comes to
the hospitality industry. I can't stress enough how fast the word will travel about the problem
someone experienced in your hotel, so do your best to prevent this complaint from ever occurring.
The best possible way to do that is to train your staff to deal with hygiene on a very high level,
regardless of the type of accommodation you're hosting. You don't have to be the owner of Ritz-
Carlton or Hilton chains to ensure that your rooms are extremely clean.
No Hot Water
Imagine a guest arriving at a hotel, tired from a long trip, only wishing to take a long, hot shower.
And to his surprise - there's no hot water! A guest like this is going to be ringing reception in anger
demanding the problem to be solved immediately. This type of issue can really ruin the day for your
guests and you can be sure that they won't be coming back next year. In case the issue is with that
room only, offer the guest a transfer to another room and do try to apologize to them by doing
something nice for them. A bottle of Champaign or a free massage in the spa would be nice.
Rude Staff

The hospitality industry is such that you just can't afford to have employees with an attitude. Nasty
remarks, laughing to the guests, or even getting into an argument with hotel guests are all happening
every day in hotels all over the world. Half of your overall hotel experience comes from the
(un)pleasantness of your staff, so do ensure that they are trained properly. The single best way to
tackle this issue is to only hire people who can control their temper and who can keep their heads
straight even when they're yelled on. Also, make sure you hire problem solvers as your staff, as
there's nothing more frustrating than when a staff member can't handle a situation - whatever the
situation may be.

Surprises

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A guest enters his room and starts unpacking their bags. They open a drawer and find someone else's
shoes inside. This scenario isn't fiction, it happens all the time because cleaners forget to check
everything and the things from previous guests may remain in the room. Another example is when
there are unwanted surprises in the form of rats or even bats in the room. It's vital that you
understand how bad this can look for you, especially since everyone these days reads before
booking a room.
Uncomfortable Rooms
This issue can occur due to old mattresses, poor linen, or even bad lighting in the room. The lousier
sleep your hotel guests have the more issues you'll have with them the next day. Try to ensure that
the mattresses are always good if you want your guests satisfied in the morning. As for the lights,
guests tend to complain that the lighting is bad, or that the lighting tone is bad. You can go for
something newer like offers, where your guests will be able to control the light the way they want.
Bad Food
There are so many hotel visitors that just despise hotel food and the reason for this is because food
can be extremely bad in certain accommodations. With millennials taking over as the major
generation though, it's become more important to focus on the food as they're more interested in
local experiences than just having a good time. There are hotels out there that focus solely
on gastronomic experiences, but you don't have to go that far - just hire a capable local chef that can
cook delicious food.

1.3 Customers/Guests/Clients Quality and Value

Some of the characteristics and activities of a successful hotel business are proper presentation and
constant improvement of qualitative services, which exceeds the expectations of customers in every
way including from pre-booking to post-stay. The choice of hotels becomes one of the main issues of
discussion: the variety of the hotel services, quality, reliability, and price are important. Since there
are many hotels in the market providing the same or similar services, it is very important not only to
attract but also to keep the customer in your hotel for the long run (known as guest retention). In
order to maintain the position held and to compete in future, it is necessary to provide quality
services by which old customers (patrons) may be retained, and new customers (including millennial
travellers) may be attracted.

Customer Satisfaction
Someone say that service quality and customer satisfaction is critical for the service survival. So
what are they? Both of them are intangible but the exact definition is still a controversial issue.
Customer satisfaction is a psychological concept that involves the feeling of well-being and pleasure
that results from obtaining what one hopes for and expects from an appealing product and/or service.
Customer satisfaction definition is based on the expectation disconfirmation point of view!
Before purchasing or using a product or service, customers always have their personal expectation
about its performance. After buying or using a product or service, if the result is equal to or better
than expectation, it means the expectation has positive confirmation! In the opposite case, if the
result is lower than expected, we have negative confirmation. Customers are said to be satisfied only
if there are positive confirmations of expectation. However, in any case, the level of customer
satisfaction is different between different customers because each of them owns their personal needs,
demands as well as experiences.
Service Quality:
Service quality in the hospitality industry becomes one of the most important factors for gaining a
sustainable competitive advantage and customers’ confidence in the highly competitive marketplace,

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and therefore service quality can give the hospitality industry a great chance to create competitive
differentiation for organizations. It is thus considered as a significant core concept and a critical
success factor in the hospitality industry. A successful hotel delivers excellent quality service to
customers, and service quality is considered the life of the hotel.
Service quality consists of three dimensions: physical facilities, staff, and materials. It also divided
into two aspects: functional quality and technical quality. A similar approach argued that service
quality includes three dimensions: functional quality, environment, and technical quality. Another
approach confirmed that service quality has five dimensions namely: assurance, reliability, empathy,
tangibility and responsiveness.
Customer satisfaction is the internal feelings of every individual which may be satisfaction or
dissatisfaction resulting from the assessment of services provided to an individual in context to
customer’s anticipation by an organization Hotels are continuously trying to improve the service just
to satisfy their customer because higher customer satisfaction will leads towards customer loyalty.
The most important concept of customer satisfaction is accepted all around the world is the
expectancy disconfirmation theory. This theory was presented by Oliver, he said that satisfaction
stage is the resultant of the distinction between anticipated and supposed performance. Satisfaction
will be encouraging when the actual level of services or products is better than the
anticipated (positive disconfirmation), whereas (negative disconfirmation) when the product or
services level is lower than expected.
Why measure service quality and customer satisfaction?
According to latest statistics, the hotel service sector accounts for 38 percent of the value added in
the World Economic Community. In this sector, quality and customer satisfaction play irreplaceable
roles! Various researchers such as Knutson and Naumann succeeded to prove that satisfaction of
customers is the cheapest mean of promotion. Each year, billions of dollars are spent on improving
the level of service quality. It is said that ‘doing things wrong’ accounts for 30 or 40% of operating
costs in service organizations! “It’s six to seven times more expensive to gain a new customer than it
is to retain an existing customer. A 5% increase in customer retention can increase profits by 25% to
95%”
Measurement also helps the organization compare the difference before and after changes, identify
the standard of service delivery and it is also a good chance to recognize problems related to the
quality of service. Therefore, the measurement of service quality and customer satisfaction benefits
company in both qualitative and quantitative way. Gaining a high level of service quality and
customer satisfaction equal to enhancement in customer loyalty, market share increase, higher
returns on investment, cost reduction and guarantee a competitive advantage. It also has a positive
impact on employee satisfaction!
For the three star hotels or above, measurement of the service quality is a way to prove its quality
and it is one of the hotel marketing methods. Those hotels management systems look at the hotel
rating system. The top ten positions in hotel rating websites are the common target of thousands of
hotel because those positions are considered as the certificate for their hotels’ quality service. When
travelers search for the hotels, they also browse those websites. It is usual that travelers who care
about high quality only look at some beginning pages which show the highest positions. Having the
name here becomes a competitive advantage and helps hotels attract more guests. It is clear that hotel
rating systems encourage hotel operators to improve their service quality, which may lead to changes
in hotel performance.
One of the main strategies used by hotels to enhance customer satisfaction is benchmarking!
Benchmarking enables hotels to learn from other players in the industry and learn what makes their
competitors competitive. In some cases, some hotels may not reveal their secrets to their competitors.
However, the hotel industry does not involve sensitive information. For this reason, most hotels are
willing to share the secrets of their success. Nonetheless, the only thing that makes some hotels
prosper as compared to others is hotel inventiveness. Hotel innovation enables prosperous hotels to

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create new strategies that enhance a competitive advantage over their rivals.

Importance of service quality & customer satisfaction

Customer Loyalty: Happy customers are loyal customers. Not only is it important for you to provide
stellar service, but awesome products as well. Make it a point to be on the fast track for keeping up
with trends that your customers may follow such as building personal assistance services for
traveling customers or making special concessions for avid repeat consumers. Be sure you have
items on hand so when your customer needs you and your products, everything’s available. A
customer who has to continuously wait for you to do your part may grow tired, no matter how loyal,
and venture off to your competition. Keep customers loyal by focusing on them at all times.
Happier Environment: The physical perception imparted by your hospitality business is important in
achieving customer satisfaction. Your restaurant or hotel need not spend lots of money to create an
amicable environment. Over-the-top interior design can be perceived as either cold and off-putting,
genial and inviting or somewhere in between. The difference lies in the emotive quality of your
employees — the main ingredient in creating a special experience for your guests. Your environment
must be clean, well-lit and comfortable, however, for your customers to feel at home.
Increased Security: When customers are paying to be served, they expect to be able to relax and
enjoy themselves without worrying about security. A secure environment means having plenty of
friendly employees visible to guests from the moment of arrival to departure. Helpful, too, are
frequent interactions with guests to instill a sense of inclusion in the goings-on at your establishment.
Security need not be overt, however. Armed and uniformed security guards will frighten guests
rather than impart a sense of safety.
Better Value: Your guests need to believe they are receiving an excellent value for their money.
Value can be inexpensively included in their visit in the form of discounts, free candy or snacks,
bottled water at no charge, gift cards and the like. Guests generally don’t expect these perks so they
can build repeat business — a sure sign of customer satisfaction!

1.4 The Customer and the Definition of Value

Customer Value: What it Means and How to Create

What is Customer Value. Customer value is the perception of what a product or service is worth to
a customer versus the possible alternatives. Worth means whether the customer feels that he or she
received benefits and services over what was paid.
That can be broken down to a simple equation: Customer Value = Benefits – Cost (CV=B-C)
It can’t be so linear as to focus only on price because customers spend a lot more than just their cash
when investing in products or services. You have to consider what they pay in time, effort,
convenience, energy and so forth.

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To the customer, the benefits can also vary which can shift the value. Value for one customer may
not be the same as another. What’s important to one may not be important to another segment of
your audience. Benefits could include:
• Quality of the product
• Advantages of ownership
• Image
• Company brand and affiliation
• Access to a solution
• Experience
• Success from use of the product or service
• Long term takeaways (including knowledge)
The How and Why of Customer Value
Value is created through the development and improvement of processes, much like other things in
your business. It’s also a subset of the culture and vision of your company. While culture and
mindset can be difficult to change, it’s entirely possible to shift those things to put far more emphasis
on creating customer value and better customer experiences.
Value, or perceived value, can change over the course of the customer’s journey. They’ll have some
idea of the value you offer when they’re first introduced to your product or brand, and this will
change once they begin to interact with you and your product or service, your people, and even other
customers.
Communicating value and establishing customer value is important because the results of your
efforts to create value are measured in the customers’ perception of that value.
Remember: your customers will never buy something you because you like it. They buy things
because they like or need them.
It’s never something you can force.
Think about the last time you decided to go out to eat, but without a destination in mind. You
compared the perceived value of similar restaurants while trying to make a decision. It’s entirely
based on subjective perceptions.
Because it’s so subjective, customer value can only be influenced – never controlled. Don’t let that
scare you away from trying. It’s easier than you think to communicate value, and the stronger your
relationship with the customer, the greater the perceived value is.

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This is far easier than you can imagine. Your customers already know what interests them. They
already have subconscious and conscious drivers. They already know the problems they have, and
may even know the solutions they need.
You just need to understand what drives value for your customers. Good customer research,
including surveys and talking to your customers, can unearth what matters most to them.
Refine Your Value Proposition
Consider all the businesses out there offering exactly what you offer. With similar products,
customers have no choice but to make a subjective choice. Your value proposition is where you win
them over. You need to communicate what makes you different, and continually work to increase
that value proposition to set yourself apart. You can do that through:
• Identifying what you’re good at and owning it
• Make your value proposition clear in all your communications
• Ask customers why they buy from you, use feedback to boost your value proposition
• Quantify your value with real data
• Communicate the benefits of your service so customers can see the value
Segment Your Audience
Different customers have different ideas of value, and what is important to them. Rather than trying
to shoehorn the same value proposition to your entire audience, identify what makes different
segments tick.
Value could vary based on season, geography, demographics or certain product attributes. Segment
your audience based on what they value, and adjust your message to each. What an adult considers
as value, for example, can be completely different than that of a teenager.
If you have a target market cut out for you, then all you have to do is get in the shoes of your
customer, and figure out what’s a gesture they would appreciate.
Don’t Compete on Price
If you try to compete on price alone with your competitors, you’ll often lose. Cost is certainly a
factor for customers, but many people are willing to pay more when they can see the value and feel
like they’re getting their money’s worth. Satisfied customers that perceive a lot of value in your
offering are not only willing to pay more, they’re willing to talk you up.
Conversely, an unsatisfied customer who hasn’t seen the value is going to go somewhere else, even
if you offer the lowest price.
Set a price that makes it clear that customers are receiving value, but it also maximizes your take.
Somewhere in the middle, but not the lowest, communicates value at a fair price to customers who
are comparison-shopping.
Focus on Your Most Valuable Customers
You can’t spread your resources, service teams, and sales force evenly among your entire customer

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STUDY GUIDE in QUALITY SERVICES MANAGEMENT IN TOURISM AND HOSPITALITY Module No.3
base and expect a good return. You need to focus on the customers provide the greatest value in
return. This is another reason why audience segmentation is so important.
Likewise, push a lot of resources towards building relationships with existing customers over
acquisition. It costs less to keep a customer than to acquire a new one, and great service will boost
the lifetime customer value so each customer is worth more in the long run.
Bonus: 5 Customer Value Creation Ideas
• Make the value/price ratio seem bigger than it is. Go the extra mile, give them a free gift, an
extra service. Make them feel that they’re appreciated
• Make your services or products easy to buy. Offering different ways to pay for it, delivery,
etc.
• Create a real Unique Value Proposition. This holds especially true if you’re dealing with
B2B. Communicate with your customer why they should buy your product over the
competition
• Work on your brand. Your company’s name itself should be synonymous with value.
Develop a unique method to treat your customers, handle complaints with care, etc.
• Provide stellar customer service. At the end of the day, both your employees and customers
are people. Treating them as such can be extremely rewarding for both parties.

SUMMARY

Meeting customer expectations isn’t always easy. But it certainly isn’t impossible, either. Get to know
your audience, make sure they’re the right audience for your brand, and learn as much as you possibly
can about their needs and goals.

Then, set clear expectations from the start, and make sure that current and prospective customers
always have the information they need to make informed decisions.

Finally, collect feedback on a regular basis to determine how well you’re meeting your customers’
expectations. Use the insight you gain to make necessary changes to your approach, and you’ll
become much more successful in building a company your customers love.

In today's world words travel faster than light, so sometimes it'll happen that the whole TripAdvisor
community knows about an issue before it even reaches the reception desk. This is why it's better to
prevent any problems than to be ready to solve them, though both are extremely important. By
tackling these common issues you'll have a better chance of giving your guests an unforgettable
experience and they might just come back to you the next year.

Take the time to research and understand your market well enough that you can break it down into
segments, looking deep into each audience segment to understand their most pressing needs and
what they find valuable. Use the unifying characteristics of each segment to build a strong value
proposition.

Always be on the lookout for new opportunities in current and new market segments for pushing
value. Your competitors aren’t resting, so you shouldn’t be either.

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STUDY GUIDE in QUALITY SERVICES MANAGEMENT IN TOURISM AND HOSPITALITY Module No.3

LEARNING ACTIVITY

Test Your Understanding (10 points each question)

1. What is guestology? Why is it important?

2. What is a guestologiest? What doest it take to be one.
3. Why are customer expectations important?
4. What is value? What is customer satisfaction?

Experiential Exercises (40 points)

PEN AT WORK!

On your stroll to a nearby mall, check out how customers appraise the quality and value of a service
that they would want to try. Also, check out how the service providers ensure that there are taken
care of.

REFERENCES

Cornell Daryl Ace V et al.. (2020) Quality Service Management in Tourism and Hospitality
Willliam(2018) Supervision in the Hotel Industry. New Delhi/Discovery Publishing House
Evans and Lindasay (2019) Total Quality Management. Cengage Learning Asia Pte Ltd.
https://www.trilyo.com/blog/service-quality-customer-satisfaction-in-the-hotel-industry/
https://tallyfy.com/customer-value/
https://asq.org/quality-resources/total-quality-management/implementing-tqm
https://survicate.com/customer-satisfaction/importance-customer-satisfaction/
https://www.businessmanagementideas.com/employee-management/employee-involvement/20999

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