I talk to Sales Managers at hotels on a regular basis and one of their most commonly asked questions is “What will it take for us to win this piece of business?”
“Well you can lower the rate to $99, give me a 1 per 20 comp, waive the attrition, and throw in the Presidential Suite for me and the family for the week!”
OK, let’s get serious and break down the question to its simplest form.
“What will it take” are four words that should send a chill up the spine of every customer who is posed the question. Why? Because it’s “old school inside the box sales 101”. It’s “let’s go down the price path” which gives you and the customer nothing more to discuss than price point.
Now close your eyes…take a deep breath…exhale…and repeat this sentence…“What do I need to know that will allow us to provide you with the best deal possible?” Now open your eyes. See, you feel much better now don’t you?
“What do I need to know” are words that say “I need to find out what you’re really looking for so I can best position and offer that’s a win-win”.
You see it’s about product positioning and not all about price. Here are some thoughts that will help you to position your product and close more deals.
Find attributes about your hotel that your customer can hang his hat on. You need to find deliverables that inspire, motivate, and encourage the customer to seriously consider you as a candidate for the short list or a contract. Remember that price is only one part of the equation. If your hotel can’t stand up and deliver after the contract is signed, price means nothing.
Here is how Boca Raton Resort positions their resort…”Designed by legendary architect Addison Mizner (I don’t have a clue who this guy is), Boca Raton Resort, The Waldorf Astoria Collection (that’s selling sizzle) has reigned as an icon of elegance for more than 80 years (that’s staying power, reliability and consistency). Today, the resort remains faithful to its glamorous past (here’s the hook), but radiates a vibrant new energy (not a musty 80-year old resort on the beach) and offers infinite amenities to provide each guest with the perfect getaway” (there’s something here for everyone).
If you’re the ABC Airport Hotel, you still have attributes that are particular to your market niche IF you take the time to look for them with a new attitude.
Let’s examine an analytic model of competitive market equilibrium in the presence of switching costs? But seriously you need to understand your competitive set and the perceived “switching cost” for a customer. Switching costs or switching barriers are terms used in microeconomics, strategic management, and marketing to describe any impediment to a customer’s changing of suppliers. This is essentially what you are dealing with every time you sell against your competitive set.
Reinvent the customer experience. There are so many things that have changed in this world over the past 12 months and those changes have directly or indirectly impacted both you and your prospective customer. What’s important to your customer today may not be the same thing that was important to him 12 months ago. Look for those signs, rethink the customer experience, and take advantage of it.
Position your product relative to the market leader in your competitive set. Publicly or to prospective customers, always put your hotel on the same level as the market leader in your competitive set. It elevates your hotel in terms of customer perception and allows you to sell without the need to “look over your shoulder”.
Find support for your hotel in and outside of your four walls. Right now there is a customer checking out at your front desk who can attest to the great experience that he had while attending a meeting at your hotel. Are you in your office pushing paper or out polling a potential army of supporters? It’s actually kind of a fun exercise especially if you can find someone who is not rushing out the door to catch his next flight.
Share your success story about how you are positioning your product or services?
Tom Costello is the CEO, Partner & Co-Founder of Groups International, a company that provides marketing, consultative services, and technology solutions to the group and leisure travel markets. Connect with him on Twitter, LinkedIn, and Facebook or contact him by email.