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10.1 Explain TWO reasons why the findings above are important to tourism businesses - NSC Tourism - Question 10 - 2023
Question 10
10.1 Explain TWO reasons why the findings above are important to tourism businesses. 10.1.1 The findings are valuable to all tourism businesses to retain its cust... show full transcript
Worked Solution & Example Answer:10.1 Explain TWO reasons why the findings above are important to tourism businesses - NSC Tourism - Question 10 - 2023
Step 1
Explain TWO reasons why the findings above are important to tourism businesses.
Answer
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The findings provide valuable insights into customer retention strategies, highlighting weaknesses and strengths. This allows businesses to focus on targeted improvements in service quality, ultimately leading to better customer satisfaction and loyalty.
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The data emphasizes the need for tourism businesses to understand the financial implications of service quality. For instance, it shows that losing a customer is much more costly than retaining one, suggesting businesses should invest in positive customer experiences to enhance their reputation.
Step 2
Explain the meaning of the finding, ‘It takes 12 positive experiences to make up for one negative one.’
Answer
This finding indicates the significant effort required to rebuild a relationship with a customer after a negative experience. It suggests that for every dissatisfied customer experience, a company must generate 12 positive ones to compensate. This requires substantial resources and a focus on service improvement.
Step 3
State ONE way in which management could respond appropriately to the customer.
Answer
Management can apologize to the customer for the poor service and reassure them that their feedback is taken seriously. They should communicate steps that will be taken to address the issue and prevent it from happening again.
Step 4
Recommend ONE strategy a company can use to win back the customer’s loyalty.
Answer
The company can offer a form of compensation to the customer, such as a discount on future services or a complimentary service. This gesture shows that the company values the customer's business and is willing to make amends.