Value adding to increase customer spend and cash referrals

Looking to get ahead of your competitors or increase your customer spend? One of the best strategies to set yourself apart is by value adding. Value Adding via BBX is where a business buys a product or service on BBX and gives it away to a customer who meets a certain criteria. For example a Bournemouth hotel has an average stay of two nights per customer and would like to increase this. The hotel buys activity vouchers from local BBX clients and promotes them to their customers as a free gift when booking 3 nights or more. Therefore increasing the average customer spend by 50%.

Advance tip: Remember your cost of BBX pound? An average hotelier would have a cost of BBX to be approx. 30% therefore the cost for them to earn and spend £50 BBX on a local activity would only be £15 in sterling. If their average room night is £100, when running the above campaign they would have gained an extra night worth £100 at a small cost of £15. In addition the customer who received the activity voucher would have a perceived value of £50. Do you think they would be happy and more likely to recommend the hotel? Note: The hotel could spend £200 BBX per activity voucher and would still be up cash flow wise of £40 for each extra room night booked. This is called leveraging and can be found here.

Need further explanation or you would like to know how to implement in your business? Call your account manager on 0333 400 2014 or request a call back below.