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Revenue sources

From the category archives:

Revenue sources

Overlooking opportunities to add value and revenue?

by Lilia Shirman on January 4, 2010

in Customer relationships,Revenue sources,Solutions

Imagine you have an audience of 350 people. Now imagine you have them captive in a room for several hours. How would you use that time? What if that audience were already your customers?  I am guessing that handing out a catalog of random products and serving water in paper cups would not be the first items on your list.  Unfortunately, they are the ONLY things United Airlines could come up with.

I pick on United because they kept me sitting on a runway for over 4 hours recently, with a cup of water after 3.5 hours being the only concession.  They did actually serve food (liberal interpretation) and show a movie during the 12 hours in the air.  But they could have, among other things,

  • Sold DVDs or downloads of the movies they were showing
  • Sold CDs or downloads of the music they play on various earphone channels
  • Surveyed passengers about travel habits, plans, and airline selection criteria. (Fill out a survey, get extra frequent flier miles.)
  • Gathered data on behalf of a paying third party.
  • Sacrificed one seat in the back to offer in-flight neck or foot massages. I’d pay!
  • Sold neck pillows and other travel-specific items
  • Offered free informational pod-casts (from sponsoring organizations?) or audio books via the audio system (and then sold the audio and ebooks, of course)

These are all revenue-generating for the airline, and valuable to customers. But they weren’t done.  Seems that in a financial crisis, innovation applies only to cost-cutting.   Why not focus on revenue sources in stead?

I see many companies passing up opportunities to add value and generate additional revenue.   In the course of conducting research for one client, we concluded each customer interview with a very simple question: “What will help you get more value from this product?”  Several customers mentioned they wanted our client to offer post-sale services to fine-tune product usage 6 to 12 months after deployment.  This discovery was unexpected, unplanned, and pointed to a completely new revenue and relationship-building opportunity.   To find it, all we did was ask.

To find those hidden, yet in hindsight obvious, revenue opportunities, look in two places:

  • Can you address additional or broader needs for the customers you already serve?
  • Can you meet the same needs you address today, but for new audiences or segments?

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