Watch Your Bottom Line Grow by Having The Greatest ‘Guest Experience’ Around…

‘Guest Experience’ … yes, it’s one of those phrases that make us cringe, the kind of phrase invented by those who call a drainpipe a ‘Rainwater Management System’ and has the sole purpose of making something sound more important or complicated than it actually is.

Unsurprisingly, you’ll find that in the US, they are very big on the whole ‘Guest Experience’ thing – and do you know what? … It ‘sort of’ actually works…

When I stayed at the St. Regis in Washington D.C. the other week, I encountered an excellent chap called Alex (who you’ll hear more about in future Lowedowns) who was not only the ‘curator’ of the St Regis ‘Guest Experience’ but also the hotels ‘Cultural Attaché’ … who, in fairness, didn’t take himself nearly as seriously as you might think, really knew his stuff about the area and even took guests on quite entertaining guided tours of the hotel – delving into the history of the building, in all its previous incarnations.

All of this, of course, added more character to the stay – and as a result the St Regis became much more than just four walls and a bed, which I am certain leads to many word-of-mouth recommendations and repeat bookings – especially from their ‘high end’ clients.

Creating a good ‘Guest Experience’ of your own can really affect your own business by decreasing refunds and increasing repeat business.

Remember, by the time the customer is using your product or service, you’ve already paid out for the advertising that got them there, or put in all the effort optimizing your SEO or plugging away on social media … so why on earth would you not do your level best to keep them onside?

Now, I’m not saying interrogate everyone who asks for a refund … after all, if you offer a no quibble guarantee it must be exactly that … but what you must do is work hard at cutting back on the things that may make people ask for a refund in the first place.

For instance, run yourself through exactly what happens post-purchase. Getting people set-up and started is usually one of those key points, as once you customer is up, running and happy – you are spending less of your time on support and your customer will carry on paying for your product or service for that much longer.

Let me give you a quick example: Say you have a product that is a 12 month course, being charged at £30 a month…

If your ‘Guest Experience’ at the beginning is particularly poor and you get a refund rate of 40% during the initial guarantee period, and then a more normal rate of people cancelling their subscription over the following months, each customer would be ‘worth’ an average of £129 over the course of that year.

However, if you improved your ‘Guest Experience’ to the point where that figure dropped to 20% of refunds in the first month instead of 40%, even with the same subsequent cancellation rate, your return per customer over that year would grow to around £179…

As you can see, even in that rather basic example, that’s an extra £50 per customer, without any additional cost to you except tightening up your ‘Guest Experience’ … not to mention a greater percentage of satisfied customers who would be more likely to buy from you again, and again…

So, next time you hear a phrase like ‘Guest Experience’, before you dismiss it as a load of transatlantic nonsense, delve a little deeper, see what it actually entails, and see if it can be adapted to help your own business.

All The Best
Tim Sig
Tim Lowe
Publisher, Tim’s Business Lowe Down

Tim Lowe