Research shows that online customer ratings and reviews are impacting every stage of the customer life cycle. Hospitality professionals are responding by finding new ways to capture and respond to feedback while the customer is still on-premise, hoping to positively impact the customer experience and reduce the cost of post-stay remediations. To provide customers with data on the impact of customer feedback programs, Local Measure commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study. The study revealed that Local Measure's Pulse real-time feedback solution can help organizations achieve significant value at scale.
$6.4m in CX impact
Through Local Measure’s real time feedback tool, Pulse, organizations can reduce service recovery costs, improve guest experiences and staff efficiency leading to increased revenue growth. The study revealed a potential for $6.4m in benefits over three years (based on an organization with 51 venues or properties), with an ROI of 280% and 6-month payback period. By investing in Pulse, organizations can:
- Increase in NPS score leading to an increase of revenue
- Reduce cost of service recovery while customers are on-site
- Improve employee productivity through resolving guest issues in real-time
Pulse was able to increase post-stay review ratings, as one interviewed Hotel General Manager said in the study “80% of guests who interact with us on Pulse rate their stay more positively in the post-stay survey”. Its push notifications were also one of the features praised, as one Guest Experience Director expressed “Managers can keep in touch with what is happening in their hotels, wherever they are, and see whether the feedback has been followed up on or not.”
“80% of guests who interact with us on Pulse rate their stay more positively in the post-stay survey”.
“The value of a real-time feedback tool such as Pulse goes beyond service recovery,” said Jonathan Barouch, Chief Executive Officer at Local Measure. “The benefits shown in this Forrester study demonstrate the payoff across multiple facets of the customer experience and the connection to brand loyalty, employee efficiency, and the ability to gain direct communication channels with customers.”
Customers willingness to interact in new ways with brands are part of what is pushing organizations to investigate the ways they can modernize their feedback collection capabilities. Ultimately, organizations who are able to calculate and communicate the ROI of a Voice of Customer (VoC) or customer feedback program can gain the broader organizational support required to achieve alignment between different departments.
To learn more about the financial impact of customer feedback download “The Total Economic Impact™ Of Local Measure’s Pulse”.