COMPETITIVE EDGE: How to build it (and keep it!)
Needless to say, how important it is for business’s survival to build, and maintain, competitive advantage. And how much of a financial effort it can be also, sometimes requiring continuous investment in capabilities and resources. With that said, it is extremely important to continuously invest in differentiation elements that are critical to success and help businesses stay competitive in the current market environment.
In my opinion, staying competitive in the hospitality industry demands a blend of innovation, exceptional service, and adaptability. Without going into extensive detail, my goal today is to offer some advice on some basic initiatives that can help maintain a competitive edge.
Investing in technology – In today’s environment it’s important to embrace technology and to attempt to keep up with the fast advancements in this realm. While it’s true that keeping pace with tech evolution can be a costly exercise, it’s also true that staying on the tail of it will not help anyone’s business. With this said, implementing cutting-edge technology to streamline operations, which can enhance guest experiences, and optimize internal processes is always a good strategy. This includes mobile check-ins, AI-driven chatbots for customer service, and data analytics to understand guest preferences.
Creating personalized guest experiences – Definitely one of the most important areas to focus and invest in to build competitive advantage. My advice is to not hold back in tailoring services to meet individual guest preferences, in using data analytics to anticipate needs, offering personalized recommendations, and in creating memorable experiences that go beyond expectations. This area alone can rocket any hospitality business to the forefront of competition. With technology or not, this is an area that only depends on creating a service culture within our associates that can make the difference. And while we mention our associates, don’t forget to empower them to always do the right thing for your customers. It’s always a winner when it relates to building loyalty amongst your customers.
Staff Training and Development – Can’t emphasize enough that in order to deliver bespoke experiences and service excellence it is beyond critical to invest in the training of your associates. Investing in ongoing training for your associates and teaching them the art of delivering exceptional service is a worthwhile one, in addition to creating a culture of empowerment that allows your associates to handle diverse situations, prioritize guest satisfaction, and create a welcoming atmosphere. This is paramount to building a winning customer loyalty culture and an important element of your competitive strategy.
Focus on Sustainability – It’s more than time to embrace eco-friendly practices to attract socially conscious guests. Being environmentally and socially conscious, and responsible, needs to be more than just a nice sales pitch. Now more than ever it is so easy to implement energy-saving initiatives, reduce waste, and source locally to showcase your business’s environmental responsibility. Let’s walk the sustainability talk. No more reasons not to do so.
Online presence and reputation management – In this social media era it is undeniable that maintaining a strong online presence across various platforms is another important element of building a competitive advantage. Social Media brings the world’s perspective about your services to a much smaller “village” where anyone and everyone reviews everything but especially the customer services provided by any business. So, with that realization, always encourage positive guest reviews and actively manage your online reputation through timely responses and engagement. Bad reviews will happen but they’re an opportunity to assess your services and an opportunity to conquer lost or new customers.
Adapt to new trends – Just like in the technology paragraph above, it’s strategically important to stay updated with industry trends and adapt accordingly. This might include offering unique experiences, incorporating wellness offerings, or catering to specific niche markets. From a creative perspective, the world is your oyster so be creative, blend concepts, partner with brands or other services, create unique memorable moments that your customers will always remember.
Flexibility and agility – In tandem with adapting to new trends, remaining flexible to adapt to changing market conditions and unforeseen challenges, in essence, being as nimble as you can be, will prove to be instrumental to many businesses’ survival. Having contingency plans and the ability to pivot quickly is a significant competitive advantage that shouldn’t be overlooked. This requires a little bit more pre-planning and a strategic discussion with your teams so that when the circumstances arise you are ready to act.
Collaborating networking – Another of my favorite things to do. I can’t tell you enough how many times in my career, partnerships helped create unforgettable experiences. And sometimes it’s just about taking the first step with an idea, and I can assure you, someone will want to partner with you in creating those unique experiences. So, go and build partnerships within the industry, collaborate with local businesses, attractions, or events to offer experiences that will attract new and broader audiences that might have been untapped for both sides involved. And the best thing about it is, in most cases, it does not involve big investment or costs.
Value for Money – From my experience, this is one of the attributes in many guest/customer surveys that takes the biggest beating. Our customers, guests, consumers, whomever they may be, became more financially conscious and always want the best “bang for their buck”. Now this can be interpreted in many ways but within reason it is very easy to assess the intricate value that experiences have. And even those that are able to afford more elevated or luxurious products and experiences also became more discerning about the value of those products or experiences and the money being spent to purchase them. Providing value-driven services that justify the price must be the norm. Offering promotions, loyalty programs, and packages that give guests a sense of getting more for their money are just a few of the ways of going about it. But it’s not always about the discount, I can guarantee that.
Continuous Improvement – This aspect basically closes the loop of a business’s operating cycle. It is critical to regularly seek feedback from guests/customers and use that feedback to drive continuous visible improvements. This can involve upgrading facilities, refining services, or introducing new offerings based on customer insights. Remember that if you’re looking to build loyal guests, this means that these are guests that will return and most likely guests that like to offer feedback and when returning if they do not see improvements, then they’ll be part of your lost business list. Don’t let that happen and act upon it. Sometimes, they refer to things that are easy and simple to fix and it shouldn’t take a second round of feedback to get it done. Feedback is a gift and a tremendous opportunity to stay ahead of the competition when acted upon.
By implementing the above initiatives or strategies and staying attuned to evolving guest preferences, any hospitality business can maintain its competitive edge and continue to thrive.
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