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Your Brand & Ancillary Revenue

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Quick Notes from the FFP - ARAC 2009 Conference

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Your Brand & Ancillary Revenue

  1. 1. Your Brand & Ancillary Revenue Quick Tips from the FFP-ARAC 2009 Conference
  2. 2. Intro <ul><li>Here are some quick things i learned at the FFP-ARAC this year for bridging your Loyalty Program and Ancillary Revenue Strategies </li></ul><ul><ul><li>Brand Alignment </li></ul></ul><ul><ul><li>Cost vs. Feature </li></ul></ul><ul><ul><li>Be Transparent </li></ul></ul><ul><ul><li>Don’t Inundate </li></ul></ul><ul><ul><li>Use all channels </li></ul></ul><ul><ul><li>Reward Miles </li></ul></ul><ul><ul><li>Don’t be indecisive </li></ul></ul><ul><ul><li>Bundle </li></ul></ul><ul><ul><li>Deliver on your promise </li></ul></ul>
  3. 3. Brand Alignment <ul><li>When reviewing an ancillary revenue tactic, ensure that it doesn’t conflict with your brand identity. </li></ul><ul><li>Do you see yourself as low cost or top-tier carrier or somewhere in the middle? </li></ul><ul><li>Depending on where you fall, limits what services you can charge for (add a cost) or offer (create a feature). </li></ul><ul><li>Failure to pay attention to the relationship between your brand and your ancillary revenue strategy can result in consumer backlash. </li></ul>
  4. 4. Cost vs. Feature <ul><li>Is the ancillary revenue tactic charging for something that was previously free (charging for 2nd bag check-in) or offering a new service to consumers (Accelerator). </li></ul><ul><li>New products can generate tremendous revenue and create a positive consumer experience. </li></ul><ul><li>Before charging fees for existing services, ensure you have leveraged any new features. </li></ul>
  5. 5. Be transparent <ul><li>People should not feel cheated nor confused with your new products or fees. </li></ul><ul><li>Work with marketing to ensure the messaging is positive, upfront and easily understandable. </li></ul>
  6. 6. Don’t inundate <ul><li>Don’t inundate a consumer with a multitude of non-targeted offers in a single page. </li></ul><ul><li>If you present too many “out of context” offerings the consumer will just bypass it all. </li></ul><ul><li>Prioritize the offerings you want to sell based on user segmentation. </li></ul><ul><li>Stick to 3-5 offerings at a time. </li></ul>
  7. 7. Use all channels to drive revenue <ul><li>Use in-flight channels and kiosks to drive ancillary revenue. </li></ul><ul><li>Review your offerings and evaluate which ones can be sold in-flight to offer a “consistent” approach. </li></ul><ul><li>A few airlines are now offering the ability to upgrade your to Business class while on the plane. What a great feature, for the individual who sees a empty seat in business class and impulse buys the upgrade. </li></ul>
  8. 8. Reward Miles. <ul><li>Ensure that any purchase of ancillary revenue products will earn the member miles. </li></ul><ul><li>Communicate this earning opportunity at every chance. </li></ul>
  9. 9. Don't be indecisive. <ul><li>Don't change your strategy every 10 seconds. It causes confusion and loses trust with your consumers. </li></ul><ul><li>If you need to change your strategy, be clear and concise in your messaging. </li></ul>
  10. 10. Bundle your offerings into packages. <ul><li>Allow people to by a la carte, but also in bundles. </li></ul><ul><li>Bundle features into themes that align with your segments </li></ul><ul><li>Car manufacturers have bundling down to a science. Learn from them. </li></ul>
  11. 11. Deliver on your promise <ul><li>If you are going to charge for something that was previously free to the consumer, absolutely make sure you can deliver on it. </li></ul><ul><li>For example: If one pays for a 2nd checked bag, it had better be there when they arrive. </li></ul>

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