June 18, 2009

Timeless Marketing & Sales Lesson #4

In 1929, a Viennese immigrant by the name of Ralph Hitz took over one of the most disappointing hotels in all of New York.

This hotel was called The New Yorker. The 2,500 room hotel, which was financed by a $13,000,000 mortgage, had opened its doors to the public just ten weeks after the stock market crash of 1929. The hotel was a $13,000,000 flop.

When Mr. Hitz agreed to take over the management of the hotel, his friends and family thought he had lost his mind. From their perspective, there was no way The New Yorker could be a success. However, Ralph Hitz knew something that his friends and family did not. He knew one of the key secrets of marketing and customer service.

Ralph Hitz was able to take this floundering albatross and transform it from the biggest disappointment in all of New York to one of the largest and most profitable hotels in the entire world.

How did he do this?

CONTACT!!

In the words of Mr. Hitz: “We contacted the hell out of them.”

No matter which way a guest turned, someone was talking to them, greeting them, smiling at them, or asking them about their day, trip to the city, favorite sports team, hometown, or family. It wasn’t long before people started telling all of their friends about the friendly, helpful staff at The New Yorker.

Throughout his career, Ralph Hitz proved time and again to be a marketing genius. His genius did not come from fancy ideas or statistical analysis. His genius came from his knowledge of the psychology of his customers.

As persuasion expert Blair Warren has noted:

“People will do anything for those who encourage their dreams, justify their failures, allay their fears, confirm their suspicions, and help them throw rocks at their enemies.”

Mr. Hitz understood that his customers wanted to feel special, and he went out of his way to make them feel that way each and every time they stepped foot in his hotel. If you can make your customers feel special, they will not only gladly pay your for your services but will also tell their friends and family to pay you for your services.

Timeless Lesson: Contact the hell out of them!

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