The Lifetime Value of a Customer, A Strategic Prospective
Business on the ball,
outside the Ritz, Tyson’s Mall,
Northern Virginia This weekend Charmaine was managing logistics for a presentation at the Council for National Policy near Your Nation’s Capital. Her goal was to make her boss look good.
One of her concerns was the dependability of the hardware supporting a Powerpoint presentation.
We’ve all been there. Something always goes wrong. New surroundings. Strange equipment. In front of 1,000 critical sets of eyes.
But I told Charmaine not to worry. She’s at the Ritz.
Years ago, I sat at the feet of the General Manager of the Ritz-Carlton for at TQM presentation. (Total Quality Management — the management fads do come and go, no?)
The GM interviewed every hire in the hotel. In the hospitality business where turnover is a mess — he beat the problem by hiring the best staff. And motivating them with,
“We are Ladies and Gentlemen serving Ladies and Gentlemen.”
When the Ritz pledges,
…to provide the finest personal service and facilities for our guests…
I believe them.
And it’s not because the Ritz group are nice guys. They are in it to make a buck. Each employee has a $2,000 authority limit, no-questions-asked refund policy for guests.
Why? Is the Ritz giving away the store?
The upscale chain has determined that the life time value of a customer is $300,000. Solving a 1,000 dollar complaint instantly, is small change for a $300K customer.
The presentation went off without a hitch.
So the boss did a flawless presentation. He was, however, interrupted twice. Not with equipment malfunctions.
Exceeding expectations at the Ritz.
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Thank you (foot)notes:
This was an unpaid puff piece.
Man on a Mission reports that the Ritz has the best mission statement he’s ever seen.