Achieving employee engagement through empowerment in customer service has reduced staff turnover and increased consumer loyalty at Malmaison and Hotel du Vin, this year’s HR Forum heard.

The hotel chain had introduced a ‘Wow’ employee incentive scheme to drive customer service against the country’s recessionary backdrop, said Kate Underwood, the company’s people development manager.

“Our challenge in 2010 as a boutique brand was to reduce costs like everyone else, but ensure that our customer service did not struggle,” she explained to delegates on the Aurora cruise liner.

As a result the Wow campaign was launched by the firm’s CEO in June 2010, which trained and encouraged staff to provide an extra level of customer service or give away complimentary items at their discretion.

The need to “involve the trust and empowerment of staff” to go the extra mile for special occasions or rectify a complaint situation was key, Underwood added.

Employees were then able to report when they had ‘wowed’ a guest, which was signed off and logged by their manager, the audience heard.

Employees achieving 10 Wows were rewarded with a free meal in one of the hotel restaurants, while the ‘Wow of the month’ won £150 and personal congratulations from the CEO. Staff recognised as offering the two best customer service examples of the year won a trip abroad.

More than 8,000 Wows have been recorded to date, with 650 occurring in the first two months of the scheme as hotels competed in a weekly league table.

Underwood explained that since the introduction of the campaign, the proportion of customer service related complaints had dropped from 69 per cent to 17 per cent.

In 2011, staff turnover dropped 17 per cent and customer loyalty had increased, with repeat business up by 51 per cent.

Underwood said that against those improved figures, the total cost of complimentary items had only been £6,500.

She added that Wow training was now included in inductions and some of the special touches instigated by staff – such as those around birthdays and anniversaries – had become standard customer service elements.

Furthermore, recent employee surveys found that 96 per cent of staff now felt that they received excellent customer service training, and the proportion of staff proud to work for Malmaison & Hotel du Vin had increased from 87 per cent to 98 per cent.

“What made the programme innovative was the simplicity of the message,” said Underwood. “We highlighted that service was our top priority.”