Understanding Guests

Using Customer Rating and Metrics to Improve Your Tour & Activity Business

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October 9, 2021

Using Customer Rating and Metrics to Improve Your Tour & Activity Business

It’s never been easier for customers to give their feedback on the services you provide. Through direct means — like Tripadvisor and Yelp — or indirect customer metrics, you can learn a lot about what customers want and expect from your business.

It doesn’t always matter how many customers you’re getting through the door. If tourists aren’t impressed by what you have to offer, they’re not likely to come back or recommend your activity to their friends and family.

Good or bad, you can use these customer metrics to take your business to the next level. We’ll show you how you can collect these metrics and leverage them to improve your customer experience, overall popularity, and ultimately, your bookings.

Collecting 4 Key Customer Performance Metrics to Improve Your Tour Business

In order to move forward with informed decisions about improving your tour and activity business, you need to be able to measure your results. A set of key performance indicators can tell you a lot about how well you’re serving your customers — and what you need to do to make their experience even better.

Here are a few customer metrics you should be keeping a close eye on.

1. Customer Retention

It isn’t just about getting customers through the door. Once they’re there, how long do they stick around? Did they come back for a return trip? Have they told friends, family, and social media followers to check out your tour or activity?

Your customer retention rate is just as important as acquiring new customers. To measure this, you can offer a customer rewards program for those who come back, like a discount code or a voucher. If you rely on seasonal travelers, you can also create a referral program to reward people who spread the word about your business.

2. Customer Acquisition Costs (CAC)

It takes money to make money. The customer acquisition cost, or CAC, shows the expenses you put in to attract and keep customers. It’s essentially the expense that you put into marketing efforts.

Instead of looking at your expenses as a whole — equipment cost, wages, etc. — take some time to review your marketing expenses. How much are you spending for each customer? Is it worth the cost? If not, your marketing strategy might not be efficient enough to sustainably pull new people through the door.

3. Referral Rates

Just like retention rates, it’s important to track how many customers you’re getting from other travelers who enjoyed your business. A high referral rate means lower marketing costs and greater success, especially if you have customers that keep coming back. If you don’t already have a referral program in place, it’s time to get started.

4. Customer Satisfaction

You might think that getting more customers is the key to more bookings and overall business growth. But new customers mean nothing if you customers aren’t happy with their experience at the end of the day.

In fact, this could work against you in the worst way. These days, most customers won’t hesitate to share bad experiences with friends and family, or drop a public bad review on sites like TripAdvisor.

There’s no question. Customer satisfaction is critical if you want your business to grow.

So how do you measure customer satisfaction? Here are a few ways you can collect customer feedback:

  • Email customers after your tour or activity to ask for reviews
  • Distribute a survey or poll after their experience
  • Ask for reviews on social media
  • Check in with travelers in-person
  • Track your reputation on third-party sites like TripAdvisor or Yelp

Customer Ratings — Why Do They Matter?

When running your own tour and activity business, you’re probably already doing your best to please your customers and give them everything they could ask for — and more. But you need to be sure that all your efforts are getting you actual results.

To give your customers the best travel experience possible, you need to hear directly from them. Once you’ve collected customer feedback, you can use it to manage customer loyalty, increase retention, improve your services, and increase your popularity in the industry.

Let’s walk through everything you can do with customer ratings.

Create a More Seamless Customer Experience

The best way to create a smooth and seamless customer experience is to check in with your travelers for their feedback. Learn more about what they liked, what went well, and what roadblocks they encountered along the way.

You might be surprised by what comes up. It might be something small, or something completely off your radar, that could be dragging down your travel experience. If you fix these issues and keep improving your customer experience, you can create loyal customers that will rave about their time with you.

Turn Loyal Customers Into Advocates

At the end of the day, you want more than just customers. You want people who will become loyal advocates for your business. If they’re impressed enough with what you offer, they’re more likely to talk highly of your brand — in reviews, on travel forums, or to friends and family.

Build Your Credibility

89% of customers will look at the reviews before they make a purchase. Having the right reputation, both online and through word of mouth, means everything when it comes to securing bookings.

Having positive reviews and opinions publicly available on your website, third-party review sites, and social media can go a long way towards building your credibility and establishing yourself as the best activity in your area.

The Bottom Line

Customer feedback is all around you. From public reviews to retention rates, there are so many ways to get a sense of what travelers are looking for in a tour and activity business.

Once you’ve collected the data, it’s time to put it to good use. With the right customer metrics, you can refine your marketing strategies, improve the customer experience, and leave travelers with a lasting impression that will have them coming back for more.

To make sure your customers’ travel experience is smooth from beginning to end, you need a booking software that will give them the best user experience out there. Our seamless online platform can take them from reading the reviews on your website to making a reservation in a matter of minutes. Want to learn more? Read more about our booking software features or contact us today.

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