Remove the risk, make the sale
by Josiah Mackenzie on May 29, 2010
11 Comments
11 Comments
In the latest issue of The Economist, you’ll see this ad from The Broadmoor in Colorado:
They guarantee “an exceptional meeting or it’s free.”
What do you guarantee?
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Article by Josiah Mackenzie // May 29, 2010
Josiah helps hospitality organizations use technology and the social web to provide better service and generate more profits.
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Sounds great.
But as a planner, I would be a bit skeptical since I have heard this many times before.
The devil is in the details.
So, what are the conditions here, Josiah ?
Cheers
Mihir
You’re right, Mihir – the devil IS in the details – but I like the general concept. If there is no hidden catch, it’s very powerful to offer money back on an event that costs thousands. It shows you’re confident in your product.
True Josiah, but remember with an oft used and abused concept such as 100% money back guarantee, readers are very sceptical, just like I was.
Broadmoor should have used the entire ad to give INFORMATION (I keep returning to that one word) on its money back guarantee instead of such a large photo.
Also, you might want to give more information about your No Spam promise below the newsletter sign up box rather than hide it under a link that few people will click.
Just a thought !
Cheers
Mihir
We were thinking about the same idea 2 months ago but the matter was the details.
Example: For 2 or more nights reservation, If after the first nght you don´t like the hotel go away and don´t pay your first night stay.
The matter was: How to do it avoidiing not honest people, people who has reserved 2 nights but are only interested in 1 night. Are people enough honest in these crisis days?
I like this blog
Heyy Juanjo
Your experience is really interesting. I was thinking of doing the same thing.
Do you have a minimum of 2 nights stay ? Why so ? And how did you resolve the matter ?
By the way, what is the best way to connect with you ? On Twitter ?
Cheers
Mihir
Actually we didn´t put into practice the idea because our customers stay for 2 or more nights often includes dining, spa, massage, etc. It could be costly if customers decide to go away whitout pay after their first night, according to the guarantee, once they have enjoyed the diner, the massage and the spa.
You can connect whit me on twitter “colorfulhotel”
Our hotel is in Spain. http://www.colorfulhotel.com
What kind of offer is this ? A package ? How much do you charge for this ?
Juanjo, maybe you have have the unconditional guarantee only for the room tariff, so that if guests are not satisfied, they only have to pay for the facilities they have consumed (spa, dining, massage etc). You will also have to clearly specify the terms and conditions of this guarantee.
I am seriously planning to offer an unconditional guarantee myself since this really has a reassuring effect on customers.
Do you have any ideas, Josiah ?
Cheers
Mihir
Heyy Juanjo & Josiah,
What do you think of my Unconditional Guarantee http://mitaroygoahotel.com/unconditional-guarantee/ ?
If you were booking my hotel, would you be reassured ?
I’d love to hear your thoughts.
Cheers
Mihir
I love how you worded this guarantee. It removes the risk of people booking ahead, sign unseen.
Could you even take it further – offering money back AFTER the stay – or is that taking it too far? Would people abuse it?
Thanks Josiah. I believe the key lies in Speaking Human !
Personally, I believe the biggest risk in staying at an independent boutique hotel is that you are never sure of whether the actual hotel will match up to your expectations.
That is why I think it is imperative to offer the unconditional guarantee BEFORE guests arrive, to reassure them of your quality.
Once they arrive and are satisfied that the hotel is just like in the photographs or the description, they are hugely relieved and can now enjoy their holiday, risk free.
Why do you feel that a hotel needs to offer money back AFTER the stay ?
Cheers
Mihir
Right, I agree – just wondering about the cases where a guest likes the look of the place, but then has a bad experience after checking in (can’t sleep from noise, for example).