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How Luxury Brands Can Motivate Service Employees

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Would Marilyn Monroe or Elizabeth Taylor have tolerated customer service shaped only by a checklist? No. Neither do today’s guests of The Beverly Hills Hotel, a favorite of those two actresses. While leading the 1,000 employees at The Beverly Hills Hotel and Hotel Bel-Air, I’ve seen how a customer’s experience can change based on something as small as a smile. At such moments, smooth operations and efficient processes are no substitute for an engaged, motivated employee with the instinct to do the right thing.

Yet luxury hospitality and retail businesses, like many other companies, can struggle to motivate employees. This is often a particular challenge with hourly-wage workers. Few organizations master it. As customers, we have all experienced an overworked and undervalued employee dismiss us with a shrug.

At our hotels, we keep our team motivated and our morale high by focusing on four important factors:

Financial Security
One of the most important ways that managers can help these employees be their best is to start by making them feel safe. Employees can only deliver great service if they have peace of mind. They can’t give their best if they are worried about their incomes or job security. Creating this sense of safety is really about speaking to two parts of each employee: his heart and his head.

Forgiveness
Fair pay is the basis for creating an organization where employees feel secure, but of course, it’s not enough. You also have to manage each employee’s emotions – that’s the heart. One of the most powerful ways to do this as a manager is to forgive errors. No matter how high your standards, perfection is beyond human reach. True forgiveness must be felt, not just stated.

When a person in my organization makes a mistake, I always try to ask: Are they repeating a mistake or making it for the first time? Can we forgive and teach? Sometimes the cerebral policy has to bend to the heart – because the employee made a mistake trying to do the right thing. Perhaps the employee took initiative to solve a customer problem for which we don’t have a policy. Looked at that way, maybe the mistake wasn’t a mistake after all.

It’s just as important to practice collective forgiveness. A hotel in San Francisco where I worked previously lost a 5-star travel rating after an inspector gave us a poor grade for front-of hotel experience. We had to connect head and heart to rally the team to win the rating back– even as customer volume was booming and we always felt short-staffed.

For two years, we nurtured excellence, meeting with employees one-on-one to analyze service. A secret shopper evaluated the team every six to eight weeks. At shift meetings, we shared the results, praising successes and noting mistakes. Individuals who scored well earned gift certificates or salary boosts. Soon, staffers were congratulating each other for 100% test scores. We shared positive reinforcement openly, but gave negative feedback privately, in combination with coaching.

Respect
When I arrived at The Beverly Hills Hotel, the employee entrance and locker rooms were, in the words of one colleague, “horrific” — quite run down and dirty. When you’re asking people to come to work in an ultra-luxury environment, this is a stark way to start the day. So we revamped the employee entrance to resemble the hotel’s iconic front-of-house arrival area for the guests — down to the green-and- white-striped canopy, palm plants, and red carpet. Today when employees come to work, they walk the red carpet, with music playing in the background. They have a sense of arrival and strong team morale.

Decisions like these lead employees to articulate not only that your company is a good place to work, but also why it is a good place to work.

Communication
To make employees feel safe, respected, and when necessary, forgiven, leaders have to make themselves available. At the Beverly Hills we have an open-door policy. Any employee can come see me with a question or suggestion. According to employee survey data, that policy helped overall employee engagement rise by 12% between 2010 and 2014. And at lunchtime, I frequently eat in the employee cafeteria, not the guest dining room, and I sit with different people in order to hear a range of feedback. This also gives me the opportunity to put our company’s good growth news front and center for our team, which reassures everyone in the organization – from the back office to the lobby – that their incomes are secure. It’s a positive, self-reinforcing loop.

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Luxury Spa Experience: For Her It Was Personal

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Social media can be very powerful. A well positioned customer review can make or break a business. It can also elicit feelings of relating to the writer’s experience.

This week my friend Mark A. McKenney, a  media consultant, posted the link to an article highlighting a woman’s birthday spa experience. It was published in Luxury Daily a leading trade publication. 

 Here is an excerpt:

“I am a mum of two young children and I am also client services director for an agency specializing in beauty, luxury and healthcare brands. So the time I spend in a day spa is at an absolute premium, carefully chosen based on trusted recommendations.

My expectations are high, but spas are everything that luxury should represent: immersion in a sensorial and physical environment that is a total escape for mind, body and soul.

However, my recent birthday visit to one of London’s hottest five-star day spas was distinctly lukewarm. Yes, there was beautiful interior design and excellent products. But all the little things that add up to make this an exceptional day out were absolutely wrong.

When luxury brand experiences rely 100 percent on attention to detail to elevate things to the extraordinary, this spa was not worth the five-star price tag.

Suffice it to say I did not leave as a brand ambassador. Things went awry from the moment I arrived and was greeted with the wrong customer’s booking details.

Then there was the couple next to me incessantly swiping smartphones in a no-mobile phone environment, the staff sounding like a training brochure recitation, and I was asked for payment as I was leaving even though the bill had already been settled.

It could have all been so different.

Pressing issues
Let us start with the personnel. Throughout my stay, hospitality staff and therapists seemed to lack the empowerment necessary to deliver a great, personalized luxury brand experience.

My companion explicitly mentioned it was my birthday upon arrival, but it was never once acknowledged. A glass of bubbly or a gift of nicely wrapped samples has a minimal cost outlay, but could have paid huge dividends in terms of my brand loyalty and advocacy.

Staff members that are allowed to flex treatments and service rather than follow a set script are the difference between a competent and excellent customer experience.

There are thousands of beautifully designed spas and beauty products globally. Delivering an exquisite, personalized experience over and above a beautiful setting with some nice smells will be the only way to survive.”

By not revealing the name of the spa, Sara Jones, graciously gifted our industry with a teachable moment. As a hospitality professional what did you learn and how will you put it to use in 2016?

 

First North American Guest Experience Award

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With the term “guest experience” on the lips of almost everyone involved in hospitality it was inevitable that a competition would be created to identify the best in the industry.  The awards are the brainchild of  The International Luxury Hotel Association and TrustYou, the leading provider of online reputation management. Read More

Why Spas Can Cure Your Social Media Overload

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I don’t know if you’ve read about Essena O’Neil. She’s an 18 year old Australian Instagram model with over a half million followers. This week she decided to end her social media career Read More

Employee engagement – how does your spa team rate?

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As we come into the holiday season most spas will begin to experience an upturn in their customer bookings and overall sales.  But is your staff  delivering the kind of positive experience that will have your new customers craving more? Read More

For Spas Does Knowing Better Equal Doing Better?

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There’s a lot of noise in the spa consulting marketplace today. Everyone has a product that they want you to buy. You sign up for various mailing lists to ensure that you receive their newest information first. But what about the 100 people on the list before you? Read More

Is Your Spa Good Enough for Your Family?

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When I first met Khun Kate we hit it off right away. She had just opened her anti-aging clinic in Bangkok around the same time that I’d launched my online retail training class. We spent two hours bonding over the topics of favorite vacations spots, anti-aging treatments and perfect customer service. Read More

ISPA Reports Training & Treatments Will Enhance Spa Growth

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As reported by Skin Inc magazine, The International Spa Association (ISPA) released its annual 2015 U.S. Spa Industry Study yesterday, covering details about the industry’s growth statistics, a picture of U.S. spa facilities and treatments, and a profile of the spa industry.

The study is jam-packed with in-depth insight about the spa industry over the past year—including the fact that total industry revenue has well surpassed the $15 billion mark—but we are highlighting six key takeaways that stand out.

1. Employment in the spa industry stands at record level.

Employment in the spa industry is estimated to be at 360,000 as of May 2015, which is a 2.9% increase (more than 10,000 new jobs) over the same time last year.

Increasing staffing levels was strongest among day spas—48% said they increased employment levels.

Although both full- and part-time positions rose, the number of independent contractor positions fell by 6.5%. ISPA notes this reduction has been occurring yearly since 2010.

2. Individual spa establis­hments are making more money.

The average revenue for a single spa location has risen to $749,000 in 2014, which is an increase of 2.9% from the prior year.

3. Spas’ marketing tactics are attracting clients

Total spa visits were 6.7% higher in 2014 than the year before. And average visits per spa rose 4.3% (8,500) from 2013 to 2014.

4. Revenue per spa visit has declined.

Despite a strong rise in spa visits, the amount of money spas are making on an average visit has dropped slightly by 1.3% from $89 in 2013 to $88 in 2014.

ISPA suggests this could be due to several factors, including: due to busy lifestyles, clients may be visiting more frequently, but choosing shorter treatments; spas introducing express treatments; discounting; and raising prices competitive marketplace proves challenging for spas.

5. Spa visits are being integrated as a staple of a healthy lifestyle.

ISPA asked survey respondents on what they believe the next trend to shape the industry will be, stating that trends related to wellness, health and fitness were the most frequently cited trends. One in two respondents mentioned one or more wellness-related trend.

6. Spas are building on this momentum.

When ISPA asked spas about their plans for 2015, most spas said they intended to take actions to enhance their business. A few things spas plan to add in 2015 include:

– See more at: http://www.skininc.com/spabusiness/trends/2015-ISPA-Spa-Industry-Study-Six-Key-Takeaways-330404281.html#sthash.9ySjmyVJ.xkl6pCLW.dpuf

Does Your Spa Service Suck?

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Last week I traveled to the Middle East to discuss spa training and increasing retail sales with a well-known resort company. I was impressed by the opulence and beauty of their spa, it was the type of place designed for indulging in luxurious treatments all day long with your girlfriends. Read More