Posts Tagged ‘increasing sales’

How To Maintain A Happy And Motivated Team

Wednesday, March 21st, 2012

Having a happy, motivated and productive team is key to customer service, maintaining sales and controlling costs. Conversely unenthusiastic or discontented staff will not only affect the quality of service, your sales and the day-to-day running of the operation, but will also rub off on everyone else, and ultimately lead to high labour turnover.

The average labour turnover for the UK hospitality industry is around 30% (considerably higher in London). With the average recruitment and training cost per employee estimated at around £1500, this equates to a £886 million cost to the industry per annum. So it’s far more important to retain the staff that you have than to treat them as a disposable item.
If you want to retain your best people you need to give them what they want.

Communication – Training and development – Good leadership

Communication
Communication is a two-way process, not only do people need to know what’s going on, they want to be heard. Daily briefings need to include what’s happening that could affect the operation or the customer experience in any way (e.g. maintenance, staff shortages, unavailable products or services), as well as any feedback from staff on their observations or ideas. Let your team know how the business is performing, and what this means to them. Communicate any changes that are happening in the business before they happen, and how this might affect them.

Training and development
The first six weeks is critical to any new staff; it’s during this time that make up their mind whether or not this is the right job for them. Rather alarmingly it is reported that 33% of hospitality businesses don’t do any training. If this is the case, how on earth do people know what is expected of them on a day-to-day basis, let alone know how they can contribute to the business or develop their career?
Training your staff in the mechanics of the business operation puts them in a better position to contribute to cost control and income generation. If people understand how the business makes its money they are then in a position to contribute to this and put forward their own ideas.
Make training a part of day-to-day management, so it’s not seen as something that is additional or optional. This goes for both staff and supervisors/managers. Identify those who have an interest in developing their CV and are willing to take on training responsibilities as part of their own development.
Think about your succession and grow from within. Give people the opportunity for career progression as well is enhancing the skills to do their existing job. Think also about life skills; for example offering English lessons. And make use of the training grants available through the tourist organisations, colleges, and government-funded schemes.

Good leadership
All of the above points contribute to good leadership and I could go on the hours on the subject, but there are three areas in particular I’m going to home in on here.

Direction
We’ve already talked about communicating what’s expected. Set standards so that people can measure their own performance.  Be consistent, ensuring the same ‘rules’ apply to everyone. Focus on telling people what you want to achieve, i.e. the end result, rather than dictating how to do it.  This gives people flexibility to adopt their own style and you’ll be surprised how often they end up improving the process.  Lead by example so there are no mixed messages. And make sure you provide the appropriate tools, resources and training to do the job effectively.

Look and listen
Ensure that you and your management team are approachable. Provide support when it’s needed, and be receptive to when this is required. Not everyone will be confident enough to ask for help. Consult staff and listen to their ideas; they may be able to offer better ways of doing things.
Take time to talk to staff to build relationships and show an interest in them as individuals. Listen to and act quickly on any concerns. Identify what’s important to them recognising that with the varied cultures and backgrounds of your staff that their values and priorities may sometimes be different to your own.

Recognise
Recognise and reward performance and achievements. This includes giving constructive feedback-what have they done well and how it has contributed; where they have fallen short and how this can be improved. Celebrate and share successes; identify and utilise people strengths, delegating and giving them control and ownership where appropriate. Be sure to recognise all departments, including back of house staff, e.g. housekeeping is often the most undervalued department, but is commonly the most profitable aspect of a hotel.
Encourage and reward loyalty by conducting regular pay/benefits reviews. Think about incentives that are within reach of any member of staff who performs well. This might mean focusing on a different theme each month so that everyone has an opportunity to be recognised for their particular skills or strengths.

How to get your staff Upselling

Tuesday, March 6th, 2012

Upselling is something we are all exposed to from time to time.  And whether you sell meals, bedrooms or widgets, it’s a technique that can not only help your bottom line, but done well can give your customers an all round better experience. Here are some of the things to consider in getting your team to upsell effectively.

Wikipedia describes upselling as ‘a sales technique whereby a salesperson induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale’.

Upselling usually involves marketing more profitable services or products, but upselling can also be simply exposing the customer to other options he or she may not have considered previously. Upselling implies selling something that is more profitable or otherwise preferable for the seller instead of the original sale.  But is it just about increasing the customer spend, or is it also about giving the customer a better all round experience, giving them something they might have forgotten to order, or never even thought of?

McDonalds of course are the masters of this – have you ever not been offered fries or a drink to go with your burger. And when was the last time you bought an electrical appliance and not been told the benefits of an extended warranty?

What to promote
So in order to do this effectively the first thing is to determine which are the products or services you wish to promote.  It obviously makes sense to be promoting high profit items, but there can be a danger in using this as the only criteria.  Unless what you are promoting is perceived as value to the customer, it’s unlikely the sale will be achieved, and does little to build your customer’s loyalty or trust.  It’s also important to distinguish between high selling price and profitability and appropriateness to meet the customers’ needs.  For example upselling to a more expensive bottle of wine when it does not appeal to the customers tastes.

Product knowledge
Staff need to fully understand each of the products and services available:

  • What are the high profit items
  • What are the component parts of any packages
  • What’s not included, but may be relevant to offer to the customer
  • What are the ingredients in a dish
  • What does it taste like
  • What are the best accompaniments to a dish

Allow staff to experience all the products and services first hand – this will not only make them more memorable, there will be more willingness to promote if they are confident to talk about it, and it will certainly be easier to evoke emotional appeal through vivid descriptions of taste, smell, feel, if they’ve experienced them themselves.

Spot the opportunities
Let them identify all the situations that lend themselves as an opportunity to upsell – not just in their own department – but across all areas.

  • Options on accommodation – room upgrades, special packages, champagne in rooms,
  • In the restaurant – bottled water, suggestions for starters, accompaniments, side orders, deserts, desert wine, specialist coffees, after dinner drinks
  • Bar – branded beers, snack items, pasties with their coffee

I’m sure you’ll have many more specifics for your own operation
It’s also about timing – for example selling desserts – ask too soon and people say they are still too full, and go straight on to coffee, ask too late and they have gone off the idea, and want to head off home.

Behaviours
Teach staff the mechanics of upselling

  • The need for open questions to identify what the customer wants
  • How to listen actively to customers’ requests or preferences
  • How to respond, and make suggestions, or offer alternatives that best meet the customers needs
  • How would they describe each of your products and services?  Rather than a script, allow them to develop their own dialogue, one that comes naturally to them, rather than something they have to remember and run the risk of forgetting.

Practice makes perfect
It’s all very well knowing what to say, but you know how sometimes when you come to say something the words just don’t trip off the tongue as you might hope!  Let you team practise in a safe environment, based on different scenarios.

Plan for objections
Whether an objection is perceived or real, staff need to know how to deal with these.  One awkward question can shatter confidence, so train staff to get to spot and handle different situations.

  • Distinguish between a definite ‘No’, and a simple request for more information before buying
  • When it’s just a matter of timing – they are too full now, but ask me again in 10 minutes
  • They want something more, but you’ve just offered the wrong thing
  • Explain the need to identify the nature of the objection by asking open questions
  • How to demonstrate empathy and understanding of the customer’s perspective
  • How to gain trust by matching the response or offering to meet the customer’s needs

Give incentives
Link your upselling activity to some goals.  This might simply be a target to sell x number of a certain product or service, or may be linked to specific financial profit targets.  Whatever goals you set ensure these are clearly measurable and achievable, that any incentive is equitable so everyone is motivated to contribute, and that you give regular updates on progress.

Guide and support
Don’t assume because you’ve told people how to do something they will be able to just go out and deliver it consistently. Observe how your staff handle the upselling conversation and give them feedback after the event on what they did well, what they could do more of, and give the appropriate support and guidance on areas where they need more help.

Overcome your guests’ challenges

Friday, February 10th, 2012

Listen to all the reasons people give for NOT staying, or limiting their stay with you. What other services you can provide that might just tip the balance in favour of that night out, overnight stay or weekend away. Think of the challenges your guests face, and how easily you could solve their problems:

  • No baby sitter – can you offer a babysitting service
  • What to do with the dog – recommend kennels (or allow dogs)
  • Poor transport network – provide a free taxi service to and from the station or airport
  • If I stay away another night I’ll miss my gym session and end up eating more than I should – a common concern for business users, so set up temporary membership arrangements at the local gym, and provide a healthy option light or calorie counted meal
  • The kids will want their bikes, but we don’t have a bike rack – offer bike hire or team up with a local hire shop ~
  • There’s nothing to do if the weather is bad – set up a kids’ play room and indoor entertainment area, and provide games and indoor activities
  • I don’t have time to do my laundry, get my hair cut or legs waxed – provide a laundry and pressing service, or offer complimentary or discount vouchers for your own spa or a local beauty or hair salon

You could take the attitude ‘that’s not my problem’ or you can see these ‘problems’ as great opportunities for additional services. Without having to think too hard or spend too much, people can have a ready-solved problem if you’ve put together a package ‘just for them’.
For more articles and resources

Offer your hotel guests and restaurant customers a choice

Monday, February 6th, 2012

Give your guests choice. This does not mean having 100 items on your breakfast menu or 40 types of pillow – but do give them a choice you can cope with. Again listen to what your customers tell you.

  • In your restaurant, how often do people tell you they are too full for a dessert? Serving huge portions may be appealing to some, but others may be put off having a starter or dessert if they think the portion sizes are too big. Why not provide a taster version, for a slightly lower price, to ensure the sale? That way the waiting staff don’t need to make a judgement call or check with the kitchen if this can be done; it’s already in the system, and the kitchen don’t have to guess the portion size.
  • Can you offer a choice of rooms in terms of features or facilities? Even if the rooms are all a standard layout, can you offer people a choice of outlook, proximity to reception, in-room amenities etc?
  • How often do you get asked what time is check out? Can you be flexible to allow later check-outs (for an additional cost or as part of a promotional special) so guests have the opportunity to make the most of their last day before they head home?
  • Do your guests come to you to celebrate special occasions? If so do you have one room, which is very special in its own right, or where you can include extra services? What else can you add to your standard offer to make a deluxe version to sell at a premium price?

Become your own hotel inspector, or train your staff to become your personal team of hotel inspectors giving you valuable and objective feedback where ever and whenever you want http://www.zealcoaching.com/products-resources/the-customer-journey/

How to Reward Referrals

Tuesday, January 24th, 2012

As an absolute minimum, ensure that you thank anyone who makes referrals to encourage them to continue to do so in future. Don’t wait to see if this actually leads to business, as what you are looking to reward is the referral process. The more referrals you have the greater the likelihood of gaining new guests.

Consider what other tangible incentives you might give that are of high value to the person making the referral, but don’t cost you the earth. Naturally you’ll want to ensure that the cost of the incentive does not outweigh the life time value of the referral.  But bear in mind what you give as a thank you may also be a way of adding to the life time value of the person making the referral too.

The nature of this incentive will obviously depend on where the referral came from.

For guests they might include such things as a gift, discount off their next meal, a room upgrade, an invitation to an exclusive event. Perhaps team up with one of your joint venture partners; this could be services or maybe branded products. A win–win–win for you, your joint venture partner and the customer.

For corporate users make the incentive something your guest can benefit from personally. It’s little incentive for them if it is something they’d normally put though business expenses. So can you offer something as a thank you which will encourage them to come back on a personal visit and maybe bring their family and friends too?

For suppliers, joint venture partners or other local businesses you may want to look at alternate ways to say thank you. This might be an opportunity to get in front of some of your other customers or guests through promotional activities or hosting joint special events. Talk to them directly to see how you can return the favour. Just by asking the question will in itself show you appreciate the referral.

Encourage your staff too to make referrals. Let them show they are proud of where they work. The reward obviously needs to reflect the value of the business; recommending your restaurant to a friend doesn’t warrant the same level of recognition as inviting a friend or relative for a wedding show round and subsequent wedding booking.

What might appeal to them may be dependent on the profile of your team. A cash bonus might work for some, but is soon forgotten whereas a couple of tickets for a show or concert, or a night in a sister hotel or meal with a JV partner will be far more memorable – and visible to other team members too to encourage the same from them.

Once you have a referral system in place, keep track of where and how you’re getting successful referrals. This will enable you to find out what works and what doesn’t, so you can continue to refine the process.

For more articles and resources http://www.zealcoaching.com/products-resources/