For the first time in a decade, customer loyalty and engagement expectations have leveled off in each of the 55 categories tracked in the tenth annual 2007 Brand Keys Customer Loyalty Engagement Index(R), from Brand Keys, Inc.
'After being disappointed for so long, consumers have become more realistic,' said Robert Passikoff, Brand Keys' president. 'Now differentiation will be based more upon experience and emotional engagement, instead of rational product and service attributes.'
Nowhere was this truer than in the Hotel category. The four hotel segments tracked, the brands in the customer loyalty and engagement ranking are:
Luxury
1. Fairmont Hotels
2. Ritz-Carlton
3. Inter-Continental
Upscale
1. Hyatt
2. Marriott
3. Swissôtel
4. Hilton
5. Radisson
6. Crowne Plaza
7. Westin
8. Sheraton/Wyndham (tie)
Midscale
1. Comfort Inn
2. Doubletree
3. Best Western/Hampton Inn (tie)
4. Holiday Inn
5. Ramada
Economy
1. Embassy Suites
2. Day's Inn
3. Travelodge
4. Econo Lodge
5. Motel 6
According to Passikoff, 'Currently, the four drivers that affect engagement and loyalty of the Hotel guests include:
• Amenities
• Size and Value
• Efficient Services
• Excellent Staff and Maintenance
'There's a reason that these hotels are segmented,' said Passikoff, 'And it has less to do with the price of a room for a night, and more how the guest views the category. The order of the drivers shift dependent upon what the guest wants, and which brand he's going to look for to meet, or even exceed, their expectations and desires.'
Of the four drivers, the loyalty and engagement driver that gained greater influence in every one of the hotel segments had to do with Efficient Services.
'Consumers may be willing to settle for less,' said Passikoff, 'But they expect more and better customer service in this category.' Service and customer service elements increased in importance in 54% of the categories. 'That's 100% of the categories that have any customer service component at all,' noted Passikoff.
'These are incredibly revealing statistics. At a time when most brands are still struggling to differentiate themselves from the competition and remain profitable, it is essential that they know what consumers really want,' noted Passikoff. 'Most think they do, but they don't.'
For this year's survey, 24,000 consumers, 18 to 60 years of age, drawn from the nine US Census Regions, self-selected the categories in which they are customers.
'Profitability is governed by a brand's ability to meet or exceed the guest's conception of the Ideal. An inability to identify the Ideal's category drivers results in the hotel properties turning into something less than actual brands. Think of these hotel names as 'Category Place Holders', moving one step closer to becoming a commodity.'
'That's not where you want to wind up,' said Passikoff.
Get the complete Brand Keys Customer Loyalty Engagement Index.
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