Become a Home Based Travel Agent

CLIENTS FOR LIFE
STICK TO THE BASICS!!
By Mitchell J. Schlesinger
President
MJS Consultants
mjschlesinger@bellsouth.net

I spoke to a travel agent recently who expressed some level of contentment with the notion that his agency was retaining approximately 35% of their customers.  I immediately asked some questions including:

* Don’t you think that figure is low?
* Do you have any idea why some or all of the other 65% didn’t use the agency again?
* Do you have any idea where or from who the other 65% purchased travel?     
* Do you have any idea how much referral business you have received from current clients?

The agent didn’t have answers supported by any real data or research which segues directly to a review of the basics of customer service and the role they play in the concept of Clients for Life.  There are a litany of authors who specialize on customer service, and I referred to the writings of Michael Le Boeuf, PHD, who has published a number of books on the subject.  Let’s start with some things to consider:

1. Customers “quit” because:
            * They are dissatisfied with the product (15%)
            * Service indifference (70%)

2. Unhappy customers will tell 8-10 people.  1 in 5 will tell 20 other people!

3. 70% of complaining customers will return if their issue is eventually resolved and 95% will return if the resolution is virtually immediate.

4. It costs 5+ times more to generate a new client than to keep old ones.

5. Customer loyalty and referrals can be ten times more valuable than a single purchase.

6. Younger customers are innately less loyal but, as they get older and the spending per purchase rises, they tend to be more loyal.  In this evolution, the opportunity to retain customers enhances dramatically with the right service approach. 

We are all in the hospitality industry, yet exceptional customer service is so rare that any time we encounter it, it shines like a beacon.   Why is it not more common place?  Three main reasons:

1. Employees do not understand the basics of customer service on their own, mainly because it is not their business and they have no perspective of what is at stake, until this education and training process is implemented.  As owners and managers, this is your responsibility and it is equally important as product knowledge.

2. Every single contact by a customer or potential customer is a “judged” experience.  These “moments of truth” can provide anywhere from warm and fuzzy feelings to those of indifference by customers who then use these reactions to project what the full service experience might entail.  For travel sellers, this is especially crucial as products sold get more expensive.

3. There is no reward system in place for both employees and the customers themselves.  Exceptional customer service is an uphill climb to achieve, so businesses that do not reward employees for providing excellent service will never get to the top of the hill.   And for customers to really believe they are cared about, there needs to be two reward systems in place, one for them when they repeat purchase and another for referrals.

And it is this last point that is so critical.   The rewarded customer purchases, repeat purchases and provides the multiplier effect of referrals.   Think about yourself as a customer and the service you encounter anywhere from a Ritz Carlton level hotel to your favorite restaurant, to picking up your dry cleaning.   Eye contact, attention to YOU, attention to the detail of your order, any recollection of who you are, purchase habits, preferences, enticements for you to return or tell others.  

The final thought is the incorporation of the customer service basics into the “non selling process”.  “Non selling?  Here is why:

1. The primary objective should not be about just short term dollar sales, but in creating customer relationships that provide both short and long term dollar sales.

2. Employees must be taught to “help customers buy” which requires taking the perspective of what the customer needs and wants in order to fulfill their vacation expectations.  They might think they want a certain ship to a certain destination, but it is your responsibility to make sure they understand which ship is really right for them to deliver the experience they desire and expect.  And after all, the ultimate reaction to the fulfillment of expectations is what dictates customer loyalty.

3. The combination of no’s 1 & 2 fulfills the notion that customers like to buy, but do not want to be sold.  Think about how often customers come to your agency already pre-disposed to purchase a trip.  You don’t have to SELL them the desire to go , BUT you do have responsibility to make sure that they purchase the right product. 

Focus on what customers need and want, help them buy what’s best for them and reinforce the purchase decision.  Just like a building needs a foundation, a successful business needs to understand and implement the basics of customer service in order to create customer relationships that result in Clients for Life.