This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.  Find out more here  Close
Think systematically about customer benefits
November 20 2013

Working within a systematic framework can enable hoteliers to identify more and better benefits for customers.

Highlights
  • Hoteliers should understand the distinction between a feature, function and benefit.
  • A feature-function-benefit framework is one way of systematically thinking about benefits.
  • There are four types of benefits: practical, emotional, symbolic and cost.
Kevin Holt
By Kevin Holt
HNN columnist
kholt@coinnovationconsulting.com
In a previous column, I explained innovation is fundamentally about finding ways to deliver superior value. I also explained value equals the benefits received minus the costs incurred in obtaining the benefits. In short: Value = Benefits – Costs. In this column I will expand on the concept of benefits and describe some ways to think more systematically about them.
 
First, it’s important to understand the distinction between a feature, function and benefit. As illustrated below, a useful way to think about the distinction is to describe a feature in terms of what it is, a function in terms of what the feature does, and a benefit in terms of what the function does for the customer. 
 
For example, a feature of a hotel might be its location next to an office building. The function of this feature is to reduce travel time to and from the office building. For hotel guests who have morning meetings in the adjacent office building, a benefit of the function is that it enables them to wake up later in the morning.
 
 
Examining the framework
After making the distinction between a feature, function and benefit, you next want to consider the following:
 
1. A feature can have more than one function. For example, a second function of having the hotel located next to the office building is that the hotel and office can share some parking space. 
 
2. A function can provide multiple benefits to the same customer. Additional benefits associated with reducing the travel time between the hotel and office are that guests can return to their hotel rooms between meetings, and they avoid the cost and aggravation of driving to their meetings.
 
3. A function that benefits one type of customer does not necessarily benefit another type of customer. Quick access to the adjacent office building is of no benefit to commercial travelers who are doing business someplace other than the office building. Also, it is of no benefit to leisure travelers.
 
4. The same function can benefit different customers. Consider, for example, that the reduced travel time between the office building and hotel also has value for the office tenants, who benefit by being able to walk to the hotel for lunch rather than having to spend the time and money to drive elsewhere.
 
The feature-function-benefit framework is one way of thinking more systematically about benefits. A more comprehensive approach is to create a hierarchy of features, starting with the most general and progressively working to the most specific. 
 
For example, you could start with a hotel and subdivide it into its rooms, food and beverage, lobby, and meeting room features. You can then subdivide each of these into more specific features, and so on until you reach a level of specificity that is appropriate to the task at hand. 
 
The next step, after you’ve specified all of the features, is to identify the function(s) of each feature and, in turn, the benefit(s) associated with each function. When doing so, you should systematically consider each of the four characteristics described above. 
 
Types of benefits
Another useful thing to know is there are four kinds of benefits. Following is a brief description of each.
 
1. Practical benefits are those that accrue from the outcomes of a function. For example, as mentioned above, being able to sleep later is a practical benefit of the reduced travel time between the hotel and office building.
 
2. Emotional benefits pertain to how a feature-function affects a person’s mood. Turning on soothing music as part of a hotel’s turn down service, for example, has the emotional benefit of making guests feel more relaxed.
 
3. Symbolic benefits pertain to what a feature-function means to a customer or what the customer thinks it says about him or her. An example of the latter sort of symbolism is the guest who benefits from staying at a luxury-branded hotel (such as a Ritz-Carlton Hotel) because it signifies to others that he or she is well-off.
 
4. Cost benefits pertain to reductions in monetary or psychological costs. An easy-to-use radio alarm clock, for example, reduces the aggravation (psychological cost) associated with figuring out how to use it. The same goes for simpler versions of the shower handles and TV remote control units that require an engineering degree to figure them out. 
 
Do you think delivering more and better customer benefits is critical to the success of your business? Which method do you think will enable you to identify more and better benefits—generating them randomly and haphazardly or using a systematic framework such as the one presented here? 
 
Kevin Holt is the president of Co. Innovation Consulting, a lodging industry strategy and innovation consultancy. The company uses cutting-edge methods and technology to help hotels and industry organizations gain competitive advantage. Its services include hotel market studies, market segmentation studies, and design research and workshops and innovation initiatives pertaining to competitive and innovation strategy, B2B sales strategy, lodging concept design, service and customer experience design, and performance improvement. For more information, go to www.coinnovationconsulting.com. Or you can contact Kevin by calling 602-510-8080 or emailing kholt@coinnovationconsulting.com.
 
The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Columnists published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to comment or contact an editor with any questions or concerns. 
 
COMMENTS   Show All
Login or enter a name   Post Your Comment  Check to follow this thread via email alerts (must be logged in)
(4000 characters max)

Comments that include links or URLs will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff

TRENDING
Tiered Wi-Fi emerges as new industry model
Heartbleed a ‘significant’ threat to hotels
How to mitigate dependence on OTAs
Owners talk OTAs, branding, living wage
Omni Nashville GM hits hotel jackpot
The role of today’s management company
VIDEO
Hunter Hotel Conference postgame wrap
Bazin outlines Accor investment strategy
Accor's Bazin talks growth
Sébastien Bazin's view from the top
Chris Nassetta talks lifestyle brand
LATEST NEWS
US hotel transactions list
Hotel Equities’ Cerrone takes several paths
MGM JV has global goal for brands
Italy hotel market climbs, midscale a muddle
It’s time to fund highway improvements
Sustainability's deep roots
Contact Us
Hotel News Now
18500 Lake Rd.
Suite 310
Rocky River, Ohio 44116
        
Copyright © 2004 - 2014 Hotel News Now, a division of STR, Inc. All Rights Reserved.   Privacy