Market research consists of two primary categories: primary data and secondary data.
Primary data is made of information obtained through focus groups, surveys, and observation.
Secondary data is provided by another group, such as the Census Bureau, a professional association, or think tank. A problem with using secondary data sources is their information may not relate to your target market or geographic area.
Obtaining primary data yourself is time consuming and can be expensive; but how much money have you or your company wasted on advertising or activities that ended up not generating the business you thought they would?
There is need to have some primary data in customers’ buying patterns. If there is no a system that provides you with mechanisms to breakdown data into various groups, then there is need to begin investigating how to acquire one.
As the hotel began to study expenses, it discovered that managers were over-scheduling employees on the weekends and even paying overtime to deal with the expected increase in customers that marketing was driving in. Naturally most business would come in on the weekend and the facility would staff up on Friday afternoons and evenings. When check-in data was examined, management discovered that most visitors were checking in on Saturday morning. By making scheduling adjustments and cross-training employees, the hotel was able to use fewer employees to handle the influx of customers. More employees were given time off on Friday nights, raising employee morale which resulted in improved customer service. Soon, expenses were down, revenue was up, and most importantly, profits were up.
None of that would have happened if management didn’t take the time to look at the statistics, analyze the data, and make adjustments.
Surveys can also provide important information a business can use to improve the customer experience, the employee experience, or extend the brand through additional product offerings.
Surveys are labor intensive since they take a bit of time to create, administer, then compile and analyze the data. If spending a couple of thousand dollars can lead to tens of thousands or hundreds of thousands or more in revenue, it’s money well spent. The same can be said if that investment saves you from spending even more money to invest in something that your customers don’t want (and remember: Customers don’t buy what they need. They buy what they want.).
There are lots of ways to conduct a survey. The method used depends on what data you’re trying to obtain and what customer segment or segment of potential customers (or former customers) you’re trying to reach.
For example, if you own a bricks-and-mortar store, you can ask your customers to complete a quick comment or survey card while you package their purchases. Of course, they may not be as entirely honest as they could be since you’re standing in front of them and, assuming you read the card right after they walk away it’s not anonymous (you could have them drop it in a box for an extra level of anonymity).
You could also mail surveys to customers (with a self-addressed, stamped envelope or SASE), try phone surveys (you can just imagine how hard they are to conduct), or email surveys. All of these techniques have pros and cons and we can’t stress enough that the method you pick should be the best method to be used with the population you’re targeting. If your customers are in a certain age group who are not heavy internet users, an internet-based survey administered through email would be a mistake.
Focus groups can be a great source of information but you’ll need to consider how you recruit the participants, what characteristics (demographic and psychographic) should your participants possess or not possess, and what will you give them as an incentive to attend.
Only the rarest of the rare will participate in a focus group just because it sounds like a fun thing to do. Even surveys need some level of incentive to increase participation. Including a SASE is a bare minimum. No one is going to provide the envelope and postage to complete a survey for your business.
Conclusions
The peculiar nature of the hotel business may compel the management to think short term about day-to-day problems or the next-meal periods, as the room day is a perishable item. The room occupancy perishes on the expiry of the day.
Overall, the environment appears very positive for the Grande Bretagne Hotel. The forces driving market demand, mainly economic and geographical, are strong, with more people staying closer to home for shorter getaway trips and their comfort level of visiting London. On the negative side, there is competition, and it will take a while for the Grande Bretagne Hotel to get “established” in its market niche.
Bibliography
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7. A Survival Guide for Hotel and Motel Professionals by Alan Gelb, Karen Levine, October 2004, Paperback
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