""People have studied problems and resolution, and it turns out that historically - and it's true to this day - that you build more loyalty with a customer when you have a problem, and you solve it well, than if you never had a problem," he said on a Saturday episode of Yahoo Finance's "Opening Bid" podcast. "It sounds crazy, but it's true," he added."
"Nassetta said that customers who don't face any problems with the service don't think much about it. But he added, "If I had a problem and you've managed it really well, you think, 'Hey, wow, they care about me. They're really good at this.'" The executive said that solving problems for customers is more effective than "begging forgiveness" and rewarding "a million honor points.""
Effective resolution of customer problems generates stronger loyalty than avoiding problems entirely. Customers who experience no issues tend to pay little attention to the service. When problems are managed well, guests feel cared for and view the brand as competent. Simple compensation or apology alone is less effective than prompt, well-handled resolution. AI integration into the Hilton Honors app has accelerated issue resolution and responsiveness. Hilton enables guests to text properties via the Honors app, SMS, WhatsApp, and other channels. Hilton operates over 9,000 properties with more than 1.3 million rooms and over 515,000 rooms in development; its stock rose about 15% this year.
Read at Business Insider
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