THE IMPORTANCE OF PLANNING IN

CREATING CUSTOMER VALUE IN

HOSPITALITY INDUSTRY

Submitted by:
Angelo Delos Reyes

Submitted to:
MRS. Jocelyn Yanuario
INTROUDUCTION

Defi ned as the interacti ons and assistance between a business and the

customers who purchase its products or services, customer service plays a

key role in a business's success. While all businesses can benefi t from

positi ve customer service, it's parti cularly important for hospitality

businesses. The hospitality industry relies on excepti onal customer

service. 

To bett er understand the importance of customer service in the hospitality

industry, you must fi rst look at the industry itself. The hospitality industry

includes all businesses in which customer interacti ons is a core component

of their operati ons, including but not limited to hotels, restaurants, bars,
resorts, theme parks and tourist desti nati ons. When hospitality businesses

such as these overlook the value of customer service, they typically att ract

fewer customers and generate fewer sales.

BODY

In the world of sales, 'Customer Value' is a much used phrase — and rightly so,

because customers buy what they perceive as being of value to them. If they have a

choice, they'll take the most valuable. This can be beyond a straightforward return

on investment, as 'Customer Value' can capture intangible positives too — an

improvement in staff morale for example. We will often be in competition with other

suppliers and will need to create a greater perception of 'Customer Value' than our

competitors. The question is how do we do that effectively?

The one thing we do know is that we cannot just tell people. It simply does not work

and is a sure fire route to receiving objections. In fact there are two key elements

in the value building process, and it’s not rocket science.

We know that if a person is satisfied with a product or service they are unlikely to

change it. As sellers, that is bad news. The first key element in value building is

creating the need for change.

Creating the need for change

This we do by exploring the issues and dissatisfactions the customer is experiencing

— or even potential issues — to create the need for change. After all, sellers won't

sell many Aspirins if they cannot find the headaches.

Keep the exploration smart, deliberately target areas where we know we are well

positioned to solve their problems. We can learn much about their problems by

asking questions to clarify their issues and exploring the effects of the problems on

their business. This process is complete when the customer clearly sees that the

status quo is no longer acceptable.

The second stage of the process, the one that extracts the value, is a further

exploration focusing on the payoffs and savings of eliminating the customer’s issues.

Exploring the value of change

We help the customer to start envisioning the 'perfect world', talking about the real

value in addressing their problems. In effect, we are constructing a performance

specification for any forthcoming solution — which, of course, we can supply.

This process allows us to mould their needs around our offerings. The intelligent use

of questions to explore the problems ensures that we will ultimately play to our

strengths by uncovering issues the competition are not so effective at solving. This is

part of the differentiation process.

We will also find a clear relationship between the dimension of the problem and the

sense of value in the solution. A tiny problem will only lead to a small sense of value

in any solution. A major problem returns a greater value of solution. Consequently, if

we are selling high value solutions, we really must plan an effective problem

diagnosis.

Remember, every customer is different. Yes, at high level they will be seeking

common solutions that we and our competitors can supply. To differentiate by

bringing added value, we really do need to work on creating value in our strengths.

REFLECTION

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.

REFERENCES

https://www.ahaworldcampus.com/b/customer-service-important-hospitality-
industry

https://www.freshbusinessthinking.com/advice-ideas-and-planning/the-
importance-of-customer-value/8607.article

https://tallyfy.com/customer-value/