Airline sector the best at offering 'added value'
Despite the images of long check-in queues and disgruntled passengers at airports this week, airlines are actually most likely to offer enhancements to their core business than any other sector, according to a new study from Collinson Latitude.
Seventy per cent of all brands are now offering enhancements or add-ons to their core products and services in order to drive both customer loyalty and revenues.
‘Adding extra value’ was cited by 49.6% of respondents from global brands across eight different sectors as being the main reason for developing products that enhance their core offering.
Only 25.4% said that creating additional revenue for their business was the main motivation.
The study found that (85.7%) of airline offered incentives away from their core business, followed closely by the travel industry (83.3%).
Retail brands are the most likely to believe that add-ons and enhancements ‘very much’ differentiate its business (100%), followed by the utilities (63.2%) and the telecommunications industries (66.7%).
The research suggests that an increasing number of brands are diversifying their core offerings by forming valuable brand partnerships or developing new products and services, in order to differentiate themselves from the competition and become more relevant to consumers.
Janet Titterton, business development director at Collinson Latitude, said, “In today’s commercial environment, businesses across every sector need to think about what their customers value and how to adapt their core offering to become relevant to every aspect of their customers’ lives, extending the opportunity to realize a greater share of customers wallet. Incremental revenue programmes are gaining popularity as an increasing number of brands recognise the opportunities to provide customers with products and services that will differentiate them from the competition, and drive both loyalty and revenues as a result.”