Saturday, August 9, 2008

Add on revenue:

The most horrific customer non centric concept on the planet is add on revenue. I do not advocate violence, however whoever came up with this concept should be drawn, quartered and summarily executed. Customers remember only the add on revenue feature of your product or service. How is that a positive? How does paying $15 for pillow on a plane enhance the experience in any fashion? How does paying $.50 for a cup of ice improve the guest experience? I have never heard some one say, “hey I did not get ice with my drink, shouldn’t I be charged less than someone who did?” I have heard billions of people complain that they were charged an add on fee for this or that.

Your business is experiencing slower revenue generation, guess what your customer is experiencing slower income generation, decreasing net wealth, and increasing energy and food prices. In addition to their escalating cost of living your business is now charging for things that you used to give the customer for free. How does that create customer advocacy?