Customer Experience News & Trends

Charge more for better service? Don’t worry, customers will pay

If you want or need to raise prices, this is one proven way to get customers on board for paying more:

Offer an improved customer experience.

Most buyers are willing to pay up to 30% more for a product or service that promises an improved customer experience, a recent Avanade study found.

What’s more, customer experience now tops price as the most important factor in buying decisions for business decision-makers, researchers said.

Of course, this doesn’t mean an organization can just raise prices by promising better service. A more feasible tactic is to implement some sort of expansive tiered service model.

Who’s doing it already

To that point, some airlines have already started this kind of venture.

For instance, some Delta Air Lines flight attendants carry wireless devices that allow them to sell passengers last-second upgrades to seats with more leg room. Many other airlines also sell services such as early boarding and access to quiet lounges during the booking process in follow-up emails, at check-in and on mobile phones shortly before boarding.

JetBlue, traditionally a no-frills, low-cost airline, recently introduced premium services for a cost. Flyers who pay up can have cocktails before takeoff and then enjoy another with hors d’oeuvres in the air before they choose from a variety of tapas-style plates. To increase their comfort, flyers will also get amenity boxes with items they can use on board and after, such as lotions and shampoos.

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