• Take another road to work next week. Choose a new restaurant in town next time you go for dinner. Seriously, suddenly you will realise that the restaurant in the other street has improved the service so significantly that they became better than your favourite one. That the new road offers some better shopping choices on the way or less traffic. - Amazon is probably one of the best examples for retail success, as is Apple. Ensure to think out of the box, thinking what experienced retailers have been doing for many years on the merchandising side. Check Amazon, Apple, Tesco’s, Landsend, Walmart...

• Standardisation e.g. by using xml interfaces proved to be successful and helpful, creating transparency, simplicity, speed. But never forget - entrepreneurship and positive margins were created by low cost carriers getting out of standards...

• Have the right offer at the right time in the customer experience curve. Lounges, upgrade and fast track sell best during online check in or at the airport. Hotels can be a decisive factor even at time of booking. Creating lots of opportunities and reminders will increase conversion.

• Don't forget other direct channels for ancillary sales. Multi channel strategy is the key for success in today’s environment in order not to lose a single cent.

• Use the 80/20 rule to ensure the focus - you will not be able to do it all, even less so with staff reductions having been done at the same time. So focus on the highest revenue potentials and the one where you can save money, gain revenue and attention whilst enhancing customer service and customer satisfaction.

• Communication is crucial. Even a little word can make a big difference. On Barrack Obama’s site the change from “sign up” to “learn more” led to 10% higher conversion! Ultimately, consumers do not always behave rationally, which requires red herring marketing. See also enclosed video: http://www.youtube.com/watch?v=YsCR9Y4Ymvo

• Simplicity is king! Amazon achieved 17% conversion with their one click product!
• Test, test, test - there is no one way of selling ancillaries, but instead of doing nothing you should test, measure and adjust.

• Customer loyalty is about experience and customer satisfaction but price is a key part of it and should not be underestimated. The price has to be competitive and to be perceived as fair. Lower prices also mean lower expectations, and higher prices mean that the customers expect higher service. Bundling with a discount creates a sense of urgency. And communicating this in a simple and clear way even more so.

• Problems with the payment process or not having the right payment options available can make the difference between buy or no buy.

Do’s and Don’ts Ancillaries in a nutshell:

• Strategy and brand consistency
• Timing - customer touch points - opportunities

• Don't forget other direct channels. Multi channel strategy should not be underestimated

• Focus - 80/20 rule
• Measure - data. Test, test, test
• Communication, information

• Don’t underestimate the price. Customer loyalty is about experience but price is a key part of it!
• Do not forget the right payment methods for the market

• Start with the customer
• Think out of the box
• Create wows for the client -even with ancillaries
• Keep it simple!
• Red herring marketing and nudge economics - consumers are not always rational

You want to improve your ancillary revenue? Send a request for a free analysis how to improve your ancillary revenues now:

customerservice@xxlsolutions.us