Challenging Superficial Metrics and Embracing the Depth of your data
Discovering The Concierge Paradox: A Lesson in Customer-Centricity
In today's rapidly evolving business landscape, where companies continually strive for efficiency and customer-centricity, there's a vital lesson we want to share. A lesson that could be the key to building successful products and services, and crafting an unforgettable customer journey.
At Add Valore, we have extensive experience in helping businesses optimize their processes and become more customer-focused. In this blog, we'll take you on an engaging journey that illustrates what it's all about: the Doorman Fallacy. But this story goes beyond being a mere anecdote. It offers valuable insights you can apply when designing products, services, and their accompanying customer experiences.
So, why should you keep reading? Because we aim to inspire you to think differently, to look beyond the surface, and to appreciate the critical, sometimes overlooked elements of your business. We'll show you why the customer journey is often more than just a series of transactions and why a deep understanding of your customers can be the key to sustainable success. Read on to discover how the Doorman Fallacy can help us work smarter, understand our customers better, and ultimately, achieve better business outcomes.
The Path to Efficiency and Customer-Centricity
At Add Valore, our process for helping businesses become more efficient and customer-centric is steeped in expertise and proven management theories. It begins with a thorough analysis, where we delve into the core of the product, the existing customer journey, and the target audience.
By carefully examining customer desires and current market conditions, we develop advice based on proven management theories that prioritize customer value. This advice can be executed by us or by the client themselves, depending on the organization's needs and capabilities.
The Fall of the Concierge
Let's illustrate this approach with a story of what can happen when this process is not followed. Picture an exclusive hotel that aims to provide guests with an unforgettable experience. To cut costs and streamline processes, the hotel management decides to bring in consultants. These consultants dive deep into the operational process, measuring the time taken for each step and conducting thorough data analysis.
After intensive research and analysis, the consultants come up with a recommendation: the role of the concierge, responsible for greeting guests, recognizing returning customers, and providing valuable local information, seemed to incur costs without directly measurable returns. They propose installing an automatic door and creating a dedicated area where guests can leave their luggage before heading to their rooms. This would result in significant cost savings by eliminating the concierge and their team, who worked 24/7 in three shifts.
The hotel's management, intrigued by the compelling data analysis presented by the consultants, implements the proposed changes. In no time, the concierge disappears, and the automatic door is installed. Initially, the financial numbers seem to improve, but they soon notice a troubling trend: customer satisfaction significantly declines, and the number of returning guests begins to dwindle.
The Tale of the Doorman and the Metrics
In a hotel synonymous with luxury and comfort, guests encountered the friendliest face as they crossed the threshold - the doorman. Now, imagine that this hotel, like any other business, had to make decisions to save costs and increase profits. In an unexpected twist, this hotel story offers us a lesson not only in hospitality but also in understanding the significant choices we make.
The Hotel with a Doorman: Hospitality in Every Detail
When you think of a luxury hotel, the presence of a doorman is almost taken for granted. This friendly face welcomes guests with a smile, carries their luggage, and often holds a wealth of local tips for a great stay. In fact, most hotels charging more than €300 per night have a doorman to enhance customer satisfaction.
The Tale of the Doorman and the Metrics
However, this hotel decided to bring in a team of experts to scrutinize every corner of their operations. They were determined to discover where money was flowing and where it could be saved. And, of course, they noticed the doorman, who was busy greeting guests and carrying bags day in and day out.
These experts, focused on numbers and efficiency, believed that these tasks could be done without a doorman. They conducted thorough calculations and concluded that having real people for these tasks cost significantly more than installing automatic doors and luggage areas. It sounded great on paper - saving money and working more efficiently. The hotel agreed and implemented the proposed changes. But something strange happened.
The Missing Piece: A Warm Smile
The hotel's guests, accustomed to warm greetings and personal attention from the doorman, didn't seem as delighted as before. They didn't return as often, and new guests weren't as enthusiastic as expected. The experts had concentrated on hard numbers, but they missed something essential: the doorman did more than just open doors and carry bags. He offered guests a warm welcome, remembered their names, and shared helpful tips about the city.
Looking Beyond Metrics in Every Business
This hotel story isn't just about a doorman; it's a metaphor for business decisions in general. It underscores the importance of looking beyond what's apparent in every business decision. Sometimes, the seemingly unimportant parts are the ones that bring in satisfied customers and keep them loyal. Like the doorman, these elements add a special touch that can't be expressed in numbers.
What the consultants had overlooked was the invaluable role of the doorman in the customer journey. His personal greetings, recognition of guests, and provision of local tips contributed to the warm and welcoming atmosphere of the hotel. This couldn't be measured in hard numbers, but it had a profound impact on how guests perceived the hotel.
This anecdote highlights the importance of understanding not only hard data but also the subtle, human aspects of customer satisfaction. It demonstrates that, at times, it's crucial to look beyond the surface and appreciate what's not immediately measurable. At Add Valore, we understand the significance of both data analysis and customer experience. We emphasize the balance between efficiency and customer-centricity when designing winning propositions and processes.
So, the next time you're faced with a crucial decision in your business, remember the tale of the doorman. Keep in mind that what may seem unimportant at first glance can sometimes make the difference between satisfied customers and exceptional customers who keep coming back.
At Add Valore, we grasp the importance of this delicate balance between efficiency and customer-centricity, and we assist companies in finding and maintaining it. Read on to discover how these valuable lessons can be applied in various business environments.