Reputation Management; How to deal with Tripadvisor, Yelp et al.

I have deliberately not used Online as part of the title.  Your business reputation is never an online only matter.  My theory is that if you handled complaints well offline you will handle them well online.

A prime example of offline affecting online is Ballymascanlon Hotel, where they are in the process of suing Google due to the auto-complete function suggesting “Ballymascanlon Hotel Receivership” as a search term.  The issue is that if people were not searching for that term already due to offline gossip and rumours then Google would never suggest it as a term. http://mashable.com/2011/06/15/google-autocomplete-lawsuit/

With regards to online review sites ... you should handle them exactly the same way you would handle the same situation offline.  Translating the online to an offline scenario just requires a little thought.

Scene 1: Direct Complaint

An immediate review complaining about a perceived failing = guest standing at counter complaining loudly.

In the offline example you would address the customer professionally apologising that they feel that way and asking them to a quiet part of the premise to go over their issues.  Online you do the same, deal with it professionally and get them on e-mail or even back to the premises to discuss.  You would not get into a shouting match at the counter so why would you online?

Scene 2: Hearsay

A Review appearing days later alleging anything from slow service to food poisoning = someone telling you at a networking event, or coming in to the business and saying “A friend of mine was in last week and he says he had a really bad experience.”

Offline you would have said something along the lines of “I am sorry to hear that, do you know if he let us know at the time?  Either way would you like to get your friend to contact me and we can discuss it with him and see what we can do to solve the problem.”  Do the same.  “I am sorry you/they did not let us know at time.  Please contact us at your convenience so that we can discuss the circumstances

The golden rule is that as long as you handle the complaint professionally if the reviewer then keeps on going on about it, they look foolish and the business gains the kudos.

The important point is to handle the complaint well.  My personal preference is always to get the guest back and make sure they have a great experience.  Again if they refuse this then it is them that look unreasonable.  I would never (read very, very rarely) give money off.  If you do that they go away and say I had a bad experience and got my money back.  Whereas if you get them back then they say I had a great experience but they got me back and it was great.  Please do not do what some people do and invite them back with so many restrictions and caveats that you end up souring the invite.

Scenario 3 – The False Review

The situation where a competitor (or disgruntled member of staff) posts a review about your business alleging a bad experience or about their own business reciting a glowing experience. = Competitors or ex staff bad mouthing your business in the pub.

Despite the fact it is easier to hide your identity online, I am convinced that these will come out eventually and online as offline it is the person spreading the rumours that looks foolish.  Most of these sort of reviews can be handled by the procedures above.  With the added response of ...  “I am very sorry; however, we do not appear to have a record of your visit?  Please accept our apologies and contact us directly so that we can address your concerns.” This would be an obvious indication to most readers that the review is dubious.

Scenario 4 – The Positive Negative Review!

A family complain about the provision for children in a predominantly couples and business focused hotel.  This situation could apply online or offline, however, in this case it can re-enforce your brand.

The key here is that the family is not your target market.  As long as the complaint is about the children’s facilities and you handle it professionally, this will actually re-enforce to business people and couples that you are the right place for them to go to and you really do not cater for children. 

The main question you have to ask yourself is how did the family come to stay with you in the first place?  If it turns out to be because of necessity, e.g. you were last room available and they had to travel those dates, that is fine.  If there is something in your marketing material that could be construed the wrong way then change it.

Conclusion

Businesses get far too hung up on the perceived secrecy of online reviews, the fact that they are visible to so many people and in seeing all negative reviews as bad.  The truth is that if you keep site of your core markets and handle complaints well offline ... you will handle them well online (and vice versa).  Just because it is the web the rules do not change.

Sun Tzu: Art of Hospitality - Earth

The third of Sun Tzu's factors affecting hospitality (sorry warfare) that needs to be "evaluated comparatively" and  it's "true nature" sought out is earth ...

"Earth encompasses far or near, difficult or easy, expansive or confined, fatal or tenable terrain."

This is really about how you market your services.  The main issue with tourism, hospitality and leisure is that it is very difficult to communicate the whole experience that you offer (product, service, ambiance, atmosphere, feeling) at a distance so you have to be creative in your communication and the decisions around where you communicate and who you communicate to.  The old 'place' of the marketing p's.

Far or Near: Domestic or International? Or even the difference between marketing (off property) and merchandising (on property)?

Difficult or Easy: Be unique and different or latch on to others doing similar things?  Go it alone or be part of a brand?  Just look at the "money" side of "value for money" or try and create real "value" in a cost effective manner?

Expansive or Confined: Focus on a niche or go after a wide market? An inch wide and a mile deep or a mile wide and an inch deep? High volume / low margin v Low volume / high margin?

Fatal or Tenable Terrain: I would argue that getting into a price war is fatal terrain.  However, more importantly I think that a business can move into fatal terrain without noticing.  This brings into play another favourite quote of mine.

"Sometimes we stare so long at a door that is closing that we see too late the one that is open."

Alexander Graham Bell

Business are so invested in a dying market that they do not see opportunities to move into a more tenable market.  The prime example of this at the minute is pubs throughout the UK and Ireland.

These decisions all need to made by looking at the company, its market, its history, the aims and objectives of the owner and a number of other factors ~ often with the help of an outside set of eyes.

Sun Tzu: Art of Hospitality - Heaven

The second of five factors that need to be "evaluated comparatively and through estimations" is Heaven.  This concept is familiar to anybody in the hospitality, tourism and leisure industries.

"Heaven encompasses yin and yang, cold and heat, and the constraints of the seasons."

There are two areas of hospitality we can relate to 'Heaven' and the 'constraints of the seasons'.

Business Patterns
Most sectors of the industry have their patterns, daily, weekly monthly and yearly, that could be described as "the constraints of the seasons".  However at the current time, most people I talk to are saying that these patterns are harder to predict.  Enquiry/Booking/Consumption windows are all much shorter.  Quite often it appears that the patterns, and the reasons behind them were taken for granted.  As patterns change every effort should be made to understand why.  Records should be kept from previous years so that you can compare notes and ideally weather comments as well as any events taking place in the local area.  As you begin to understand the reasons for the patterns in your business you can respond quicker when you see things happening that you know effect you.

Seasonal Purchasing
The other application of this factor is in menu planning, and other areas of resource utilisation.  The more you can keep it local, keep it seasonally appropriate, use natural energy, the more you harness the seasons as a way of reducing costs the more you will actually contribute to the local environment and economy and the better your end product will be!

Sun Tzu: Art of Hospitality - The Tao

Sun Tzu separates warfare into 5 factors: The Tao, Heaven, Earth, Generals, Laws

"The tao causes the people to be fully in accord with the ruler.  Thus they will die with him, they will live with him and not fear danger."

In the current economic climate there are many who fear danger to the businesses they are employed in and how do the owners and managers react?  Cursing and swearing, railing against the slings and arrows of outrageous fortune?  Will that encourage staff to rise and fall with them? Succeed or fail together?  As you look at your staff ... will they stay with you through thick and thin?

I like quotes and my website has many examples of them in the Hospitality Resources section. The following is on of my favourites though:

"Give to us clear vision that we may know where to stand and what to stand for ... because unless we stand for something we shall fall for anything."

Peter Marshall

The first port of call with your vision, your plans, your strategy, must be your staff - from top to bottom they must know what you are trying to achieve, why and how.  Then you WILL have people who stay with you through thick and thin and are striving for the same goals you are.

"The people who shape our lives and our cultures have the ability to communicate a vision or a quest or a joy or a mission"

Anthony Robbins

Sun Tzu: Art of Hospitality - Seek its True Nature

The introduction to Art of War is called "Initial Estimations"

"Therefore, structure warfare according to the following five factors, evaluate it comparatively through estimations, and seek out its true nature"

This seemed appropriate, especially today, as I had spent the morning talking to a client about what analysis he wanted for his business.  At the minute he uses no sales or cost figures at all other than those required quarterly for VAT.

When it comes to measuring and analysing as a basis for decision making there are a pair of phrases that I hold in mind.

"Paralysis by Analysis"

versus

"Extinction by Instinct"

People either spend so long looking at information and research that they do nothing and are a sitting duck, or they try everything based on hunches and get run over when they forget to look the right way down the road.

There is, of course, a balance to be struck between the two extremes.  There are standard measure that an industry use as well as banks, accountants and financiers.  These allow bench-marking, decisions made from factual knowledge and the ability to back up hunches.  All helping to make decisions, improve the business performance and control costs.

The key is to know what is going in in your industry, look to the trend setting places and countries and see what is coming down the line. Look at your key percentages and watch for fluctuations, understand them.  Look for patterns emerging and comparing them to what you know about your market, the market generally and your competition.

BUT

Don't be led by the numbers and the analysis - make them work for you.  Use them to help shape and mold your vision not control and change it.

Above all take time out regularly to think about your business.

The client above? We decided to start with:

Sales: Broken down into key product areas (Food - Platters + Menu Items, Retail food, Coffee, Drinks) and by eat-in v. take-away
Direct Costs: (Food, Retail Food, Coffee, Drinks) broken down by supplier
Consumables: (packaging directly used in takeaway items)
Wages: (Basic, PAYE, NI)
(for all the above a basic analysis weekly, detailed analysis monthly (backed up by stocktake)
Other Costs: broken down by key line items and supplier

~~~~~~~~~

Some great resources for trends include:
http://www.springwise.com/
http://www.qsrmagazine.com/
http://www.trendhunter.com/

A great list of some key measures (But if you won't use them don't collect them!)
http://www.profitablehospitality.com/public/88.cfm