Why should someone choose you/your brand over your competitors? When a buyer is about to make a purchase decision, they differentiate based on your USP (unique selling proposition). Can there be something else that helps differentiate you? A “wow factor in the product’ most definitely ensures customers have one more reason to transact with your business rather than going to your competitor.
It’s this wow factor which makes all the difference when it comes to getting more LTV (lifetime value) from a customer. In the technology world LTV is an acronym used to signify repeat purchases. In the hospitality world, it is termed as repeat guests. The holy grail of being in business is to see revenue flowing in continuously from customers who are happy transacting with your business again and again.
Very few businesses is able to introduce a wow factor in the product design. This “wow factor” is a secret sauce enabling customers to feel special that ultimately results in repeated revenue generation.
Experiencing wow factor in real life
Few weeks back I went on a weekend trip to a nearby resort with my family. The resort ‘Banabithi‘ like any other weekend resort built on a large land parcel. Good rooms, great food. Nothing out of the ordinary. In the evening while taking a stroll I chanced upon a cafeteria looking shed. From a distance I could see the glass counter containing several confectionary items.
I walked towards it. Out of sheer curiosity, I enquired “do you guys make birthday cakes?”
The chef responded with a smiling face, “Yes, we make all bakery items per order basis. Cakes, cookies, pastries, patty.”
Having travelled the Indian sub-continent extensively, I can safely say, I have had my fair share of good property experiences. But this was something truly unique. Never have I seen a “staycation” focused weekend outing resort keep a separate unit for cakes and confectionaries.
I did not even have to step out of the resort premises to arrange for a birthday cake for my father. (It was my fathers birthday over the weekend). Any confectionary item that is ordered, will be freshly baked and delivered to you. The resort employs 2 pastry chefs just for this purpose. This was a Wow factor which has been integrated with the resort experience.
Designing a product with a wow factor
I waited under the canopy of the mango tree sipping my coffee while the blueberry cheesecake that I had ordered was getting baked.
As I sat there observing the sunset, I couldn’t help but admire the people behind the design of this resort property. In this cafeteria one can order coffee which is cheaper than what they offer in the restaurant.
The “revenue minded” business people would have never approved of such a cafeteria. Why provide guests with coffee and other items at a cheaper rate when it is available in their restaurant at a higher price?
It does not make business sense.
Yet, it made complete sense.
While you wait for the cake, you order coffee/tea, with cookies. If there are children travelling with you, they order ice cream. These are upsells which wouldn’t have happened if guests were expected to visit the restaurant in the evening for their tea/coffee.
Not only that if you pay 50/- there’s a battery operated golf cart to show you around the property. This charge is not levied for senior citizens.
The thoughtfulness of the pricing strategy was for me to admire, as I sipped on my coffee. The lights at the property had started shimmering. Evening was setting upon us.
Looking around, I saw many guests taking the caddy ride while their cake was getting baked. Another upsell.
Delivering product experiences that integrate a ‘wow factor’
As I walked with the cake towards our room where my family was taking a little late evening nap, I couldn’t help but admire the tastefulness with which this resort was designed. Every little detail minutely looked after.
Around each ground there’s a set of 2 washroom bays. Each bay containing a set of 3 washrooms. The property is massive. If a guest has to visit the washroom only in their room, it would need a good 10 mins walk. Providing the option of multiple washrooms across the property was a design choice keeping guest experience in mind.
These details kept on adding the brownie points showing even more ‘wow factor in product design’.
An elderly couple would not need to walk for 10 mins to go to their room. They can just use the washroom that is nearest to them. Anyone has access to washrooms just under 2 mins.
Operations makes businesses generate repeat revenue
When I came back I started researching.
How do they market the property? To my surprise, as I found, they spend very little effort in marketing.
Their core focus is on operations. Deliver a killer guest experience. Let guests talk about their experiences to their friends and families. Word of mouth marketing. This property did not have to put any effort for content marketing.
Operational excellence is what they strived for. It reflected on their Google reviews. More than 8000+ positive reviews.
How to design your hospitality product to have a wow factor?
Understand your audience and the customer you are trying to cater to. If you are a city based hotel, the needs for the customer would be variedly different from a resort that is destination based. Analyze and study the feeder market from where revenue would get generated.
It does not necessarily mean you need to spend a lot of money. The key element over here is to understand what is your customer needs.
I had done a YouTube video few years ago, highlighting how research saved the State of New York from being bankrupt. Do watch it if you are curious to find out who were the brainchild behind the I Love NY Campaign
Once you understand your customer, their needs, designing a product for them becomes second nature.
Feedback from customers can help you in understanding this. A product is always something that is ever evolving. If you have this mindset as a hotelier, I am 100% sure, you can reduce marketing expenses yet not see your bottom line shrink.
My gift to Banabithi Resort
As I came down for dinner, I shot few 360 photographs of the property and uploaded them on their Google Business Profile. They didn’t have any.
May be they didn’t need any? I do not have the answer for it. But what I did notice, these 360 photographs have got a combined viewership of 800+ over a period of 3 weeks.
The caddy driver shared something with me that I would remember for a very long time. “This property does not have any off season.”
He has been working here for the past 2 years and every time he has observed this phenomenon. No off season for this property. Always in demand. For various customer segments coming in over the weekends and on weekdays.
Maybe someday I get to interact with the person who was intimately associated with creating this resort. Would I get to meet him/her. I do not know. If I get a chance, I will surely ask, “How did you learn about product design integrating these wow factors?”
A business case study worthy property.
Till next time
Thanks
DB