Thomas takes the pain away
If you’ve looked at the news this week, you’ll know that holiday giant Thomas Cook has just unveiled a new scheme called “Choose Your Favourite Sunbed”, allowing you to pre-book a sunbed for your entire holiday.
It costs just £22 extra and means that for those who take advantage of the offer, there’ll be no fighting over sunbeds or getting up extra early to get your towel down and secure your spot.
It’s a super smart business decision, and there’s some good takeaways for all of us:
1. Add value without slicing margin
Thomas Cook have found a way to extract more money from their customers, as well as adding significant value to their experience, without it costing the company any additional cash – it’ll all go on the bottom line.
2. Remove your customers’ pain
Holidays are supposed to be relaxing, but getting up at 6am to secure a slot by the pool isn’t on most peoples’ lists of ‘things that make me relaxed’. By adding in this upsell, Thomas Cook have removed that pain, allowing their customers have better experiences whilst profiting from that experience.
3. Give your customers an opportunity to spend more, and some will
Just like there are people who always ‘go large’ in McDonalds, travel in first class and have premium accounts of all their favourite softwares, in most markets there’s a proportion of people who will buy the bigger, more expensive version of your product, as long as you offer it to them.
Most importantly for me, Thomas Cook have thought long and hard about how to increase profit whilst elevating the experience they deliver to customers, and that’s an exercise that’s well worth us all doing.
Is there a sun lounger reservation service hiding inside your business that could add value to your customers and make you more money?