Page 172 - The New Gold Standard

PRINCIPLE 3: IT’S NOT ABOUT YOU
elected not to choose this property not because of price or loca-
tion but because they made a promise and didn’t follow through.
We figure the cost of two cans of cola and a dish of ice cream was
less than $5. . . and the cost of our lost business, about $500,000.”
While Greg’s focus is on the failure to deliver on the expected
amenities, it is obvious that the more the staff of a company
highlights their interest in a customer’s preference, the greater
the expectation that the preference will be acted upon.
Customers implicitly question and test businesses. They pri-
vately wonder, “Does this business notice how I am different
from other customers? Do they provide the little things that give
me a sense of importance and comfort? Is this business more in-
terested in making money than they are in enhancing my life?”
Employees at all levels, then, must learn ways to anticipate how
various customers will react to avoid such breakdowns and po-
tential loss of business.
Two additional risk factors emerge when considering the use
of preferences to personalize service: First, there is the challenge of
knowing when something is truly a preference for a customer. Sec-
ond, the data collected must be appropriate and secure. Ed Mady,
vice president and area general manager of The Ritz-Carlton,
San Francisco, gives examples: “A lot of preference identification
involves paying attention to subtlety. If your name is John Smith
but our bellman finds out that you like to be called ‘Smitty,’ then
the name on your amenity card should be ‘Smitty’ and not ‘John’
or ‘Mr. Smith.’ While preferences are difficult targets to execute
against, the subtleties of preferences matter.” Brian Gullbrants,
vice president of operations, offers his guideline for determining
when something rises to the level of a preference: “If I order Per-
rier, it doesn’t mean I prefer Perrier; it might be the first time I’ve
ever tried it. If I order Perrier with two lemons without ice, there
is a chance that might be a preference. But if I order it twice, it is
a preference. We’ve got to watch our customers and read them
and understand when they truly prefer something versus when
they are only experimenting with something. It is not easy.”

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