Local Measure, a leading customer experience platform, has announced an independent study of in-stay feedback. The research shows a 280% return on investment for hotels.
Local Measure recently commissioned a Forrest Consulting study to quantify the economic impact and benefits of its real-time feedback tool, Pulse. It has now released the results of the research. Forrester discovered that an organisation using Pulse to manage and respond to customer feedback in real time experienced a return on investment of up to 280% over a three year period.
The research also found that Pulse users enjoyed $6.4 million in value over the same period. Pulse begins to pay back the investment within six months. The findings were based on an organisation with 51 properties.
Value in real-time feedback
“Research shows that online ratings and reviews are impacting every stage of the customer life cycle,” according to the study.
“The value of a real-time feedback tool goes beyond service recovery,” says Jonathan Barouch, Chief Executive Officer at Local Measure. “The benefits shown in this Forrester study demonstrate the payoff across multiple facets of the customer experience including brand loyalty, employee efficiency, and the ability to gain direct communication channels with customers.”
The results found by Forrester Consulting show significant savings when it comes to managing customer service teams and customer satisfaction scores. The study found the following three-year financial impacts across a company with 52 properties.
- More than $2.65 million of increased revenue due to improved customer experience.
- Service recovery costs can be reduced by $3 million. Addressing and resolving customers’ issues quickly and more proactively leads to lower costs in compensation.
- Improved employee productivity saves $757,111. Pulse saves time in reviewing and contacting customers who leave negative reviews. It also has the potential to turn passive customers into promoters due to positive customer experiences and increased loyalty.
One General Manager interviewed for the study reported that 80% of guests who interact on Pulse rate their stay more positively afterwards. The Total Economic Impact™ of Local Measure Pulse study was developed through extensive research into the company’s long-term customers.
Local Measure recently announced an integration with Snapchat. The partnership with Snap Inc. will allow clients to enhance their digital presence on-site as well as engaging customers during their visit.