Day Five of Ten - Understanding and boosting ancillary revenue

Day Five of Ten – Understanding and boosting ancillary revenue

Add long term value to relationship:

A recent survey from The Loyalty Practice on changing customer loyalty in 2009 found that only 3% of respondents are most loyal to travel brands.

This is compared to banks, which received 23% of votes and supermarkets, which received 33%.

This is clear evidence that the airline and travel sector suffers more than many other vertical markets in terms of loyalty, probably due to the fact that there is often a lack of frequent purchases.

To combat this, ancillary revenue can be used as a way to engender loyalty in the long term.

It should be used to enhance, not exploit, the relationship with customers.

In such a commoditised market place, brands need to offer something unique to stand out and ensure that customers want to maintain a relationship with them.

Add long term value to relationship:

A recent survey from The Loyalty Practice on changing customer loyalty in 2009 found that only 3% of respondents are most loyal to travel brands.

This is compared to banks, which received 23% of votes and supermarkets, which received 33%.

This is clear evidence that the airline and travel sector suffers more than many other vertical markets in terms of loyalty, probably due to the fact that there is often a lack of frequent purchases.

To combat this, ancillary revenue can be used as a way to engender loyalty in the long term.

It should be used to enhance, not exploit, the relationship with customers.

In such a commoditised market place, brands need to offer something unique to stand out and ensure that customers want to maintain a relationship with them.

NB: This How To series is authored by Janet Titterton of Collinson Latitude