Independent Study of In-Stay Feedback Shows 280 Percent Return on Investment for Hotels
Independent research shows Local Measure’s real time feedback platform can help organizations take control of the customer experience, reduce cost and drive revenue
SYDNEY, Australia - Local Measure, the leading customer experience platform for the hospitality industry, today released a commissioned Forrester Consulting study quantifying the Total Economic Impact™ and benefits of its real time feedback tool, Pulse. Forrester found that an organization that uses Pulse to manage and respond to customer feedback in real time obtained a return on investment (ROI) of up to 280 percent over three years. In addition, the study revealed that the organization that uses Pulse received $6.4 million in value over three years, with the technology beginning to pay back its users for their investment within only six months. These findings were based on an organization with 51 properties.
"The value of a real-time feedback tool goes beyond service recovery," said Jonathan Barouch, Chief Executive Officer at Local Measure. "The benefits shown in this Forrester study demonstrate the payoff across multiple facets of the customer experience including brand loyalty, employee efficiency, and the ability to gain direct communication channels with customers."
Forrester's results reveal significant cost savings for those managing customer service teams and responsible for customer satisfaction scores. Among the potential operational efficiency benefits, Forrester found the following three-year financial impacts across a company with 51 properties:
- More than $2.65 million of increased revenue from improved customer experience. Each NPS  point gained above the industry average generates incremental revenue. The incremental revenue is generated by additional purchases, churn reduction and new sales driven by word of mouth.
- Service recovery costs can be reduced by $3 million. Collecting customer feedback in real-time has enabled the hotel team to reduce spend on service recovery. By addressing and resolving customers' issues quickly and more proactively, the interviewed organization found that they were able to offer lower-cost compensation to appease dissatisfied customers.
- Improved employee productivity saves $757,111. Resolving customer issues in real-time decreased the amount of time spent by managers reviewing and contacting customers who left negative reviews after their visits. The study assumes that Pulse has a positive impact on turning passive customers into promoters from creating better customer experiences and increased loyalty.
According to one of the General Managers interviewed for the study, 80% of guests who interact on Pulse rate their stay more positively in the post-stay survey.
The Total Economic Impact™ of Local Measure Pulse study was developed through extensive research into Local Measure's long-term customers. Learn more about the Forrester Total Economic Impact study or download a copy here.
- The Total Economic Impact of Local Measure Pulse Study
- Infographic: Total Economic Impact of Local Measure Pulse
 Net Promoter and NPS are registered service marks, and Net Promoter Score is a service mark, of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
About Local Measure
Local Measure is a customer experience platform to help businesses identify, understand and engage with their customers to drive loyalty and personalize experiences at scale. Headquartered in Sydney, Australia with offices in Europe, North America and Asia, Local Measure's clients include many of the world's largest hospitality and tourism brands as well as financial services, government and telecommunications businesses. The company's flagship product Engage for Amazon Connect, is an omnichannel agent desktop purpose-built for Amazon Connect enabling contact centers to manage inbound customer queries across voice and digital channels via a single platform.