Posted on: Monday, January 28, 2002

60 SECONDS ON BUSINESS
Offer chance to try all your products

By Dr. Drake Beil
President, Solutions Inc.

One secret to better yield management is creating more money from the same number of clients. You do that by designing a buying experience that gives customers a chance to sample more of your products or services.

For example, in the lodging business, there are four key areas to consider in a yield management program: reservations, rooms, retail and restaurants. Each offers the potential to increase revenues.

You can determine whether guests are given the chance to have a larger room or ocean view for a few dollars more. Given the choice, some will say yes.

On property, you may create another chance to upgrade as well as receive retail and restaurant coupons. The process of allowing customers a chance to buy all your offerings is essential.

In applying these yield management practices, look at your revenue streams and apply a three-step process. First, focus on those that are most profitable, and ensure that they aren't jeopardized by too much added selling. You don't want to chase people away from your primary profit center.

Second, build a process that gives your customers several chances to say yes.

Third, design incentive programs to reward employees for helping to build greater profitability.

Reach Dr. Drake Beil at drake@60secondsonbusiness.