Ski Resort: Money Back Guarantee

 I proposed to the president of a New England ski resort that  a Money Back Guarantee be field tested on non-holiday, non-weekend days in January and February. 

The guarantee would be limited to equipment failure. If the resort’s equipment failed while the mountain was open,  customers impacted by the failure would be eligible to request a refund if they were dissatisfied. 

Equipment failure is a customer experienced defect, a relational discourager. 

I proposed that the resort’s maintenance team implement a proactive preventative maintenance program to sharply reduce equipment failures, reducing the number of defects the customer’s encountered. 

I proposed that the resort would be able to self-fund this guarantee by adding $1.00 to the price of every ticket sold. 

In researching money back guarantees, companies  (not ski resorts) that offer them can charge significantly more than competitors for the same product or service, in some cases 300% more. 

Equipment failures rarely impact all of the skiers visiting a resort. Only a small portion of all the skiers on any given day would be impacted, unless equipment failures were wide spread.  

I proposed that the idea be tested on non-holiday, non-weekend days to see how many customers would request their money back. Data collected would establish to the cost of the program and whether the $1.00 ticket price boost would cover the refund costs. 

I proposed that the money back guarantee would give the ski resort a competitive advantage over other New England Ski Resorts. 

What’s wrong with this idea? 

Your thoughts will be appreciated. 

#NewHampshire #NewEngland 

K. H. Little Consulting Services

Kenneth H. Little, MA

cell: (603) 726-1006

kenlittle-nh.com

Ski Resort: Customer Experience Cycle

 A Typical New England Ski Area

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Customers flow through this cycle beginning with “select your resort” to visit.  There are many ski resorts in New England to pick from. 

~ Why would they pick yours? Why might they not? 

In general, once they choose to ski at your resort, they enter your Macro Cycle. There are steps you can control and steps you cannot control. 

1. Travel to your location (no control)

2. Embarkation (arriving, off-loading, parking, etc.)

3. Base Lodge

4. Purchase Ticket (unless pass holder)

5. Rentals

7. Lessons

8. Lift Operations

9. Snow (making, grooming, etc.)

10. Weather (no control)

11. Disembarkation (pack up, get car, load gear, drive away)

Each step is a potential point of contact and an opportunity for the customer to be satisfied or disappointed.  

While you cannot control the travel experience, it does impact how the customers arrive.  Are they stressed / not stressed when they first enter your zone of responsibility. 

The first point of contact may be the “Welcome to …” sign. This is your first opportunity to impress your arriving customers. How does your sign look? Is it clear, bright, well maintained? Are directions provided guiding the customer toward the off-loading area and available parking? Is the pavement intact, cleared of snow and ice? 

Is the off-loading area well organized and efficient. Are customers able to easily navigate this process? 

Next is parking, then Base Lodge? 

K. H. Little Consulting Services

Kenneth H. Little, MA

cell: (603) 726-1006

kenlittle-nh.com