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Brands turn to product enhancements to engender loyalty

Brands turn to product enhancements to engender loyalty

Some 70% of all brands are now offering enhancements or add-ons to their core products and services in order to drive both customer loyalty and revenues, according to new research by global incremental revenue specialists Collinson Latitude.

The research suggests that an increasing number of brands are diversifying their core offerings by forming valuable brand partnerships or developing new products and services, in order to differentiate themselves from the competition and become more relevant to consumers.

Some 49.6% of respondents from global brands across eight different sectors cited ‘adding extra value’ to the customer proposition as the main reason for developing products that enhance their core offering; followed by 25.4%, who said that creating additional revenue for their business was the main motivation.

Airlines were found to be most likely to offer enhancements to their core business than any other sector (85.7%); followed closely by travel (83.3%) and financial services (69.2%).

Retail brands are the most likely to believe that add-ons and enhancements ‘very much’ differentiate its business (100%), followed by the utilities (63.2%) and the telecommunications industries (66.7%).

“In today’s commercial environment, businesses across every sector need to think about what their customers value and how to adapt their core offering to become relevant to every aspect of their customers’ lives, extending the opportunity to realize a greater share of customers wallet,” said Business Development Director at Collinson Latitude, Janet Titterton.

“Incremental revenue programmes are gaining popularity as an increasing number of brands recognise the opportunities to provide customers with products and services that will differentiate them from the competition, and drive both loyalty and revenues as a result.”

Over 180 marketing and brand professionals from a range of industries, including airlines, financial services, hotels, publishing, retail, telco travel and utilities, took part in the survey, which sought to identify what value-add products and services brands have in place and whether brands believe that these are beneficial to their customers.


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