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3 Reasons Upselling Increases Customer Happiness & Retention

Posted on Jul 1, 2019 12:51:00 PM

What is upselling? Upselling is the opportunity for a hotel to suggest or promote additional services that add value to a customer’s stay. A form of incremental revenue building and guest satisfaction enhancement, upselling is a great way to boost revenue and increase your bottom line. 

 

“61% of consumers would be open to spending more, is an additional service compliments or enhances their main purchase.”

— National consumer survey by Ipsos Public Affairs, 8 Upselling Tips that Make Hotel Guests Happier


hotel guest happiness

Photo by Lesly Juarez on Unsplash

 

Asses your guests’ needs and determine which products or services you can promote that will best cater to them. It is proven that upselling can help guests plan their trips better and improve the quality of their stay by tapping into guest happiness. Promote your F&B outlets or organize a free car transfer that brings the guest experience to the next level with value-added services. 

Hotel guest relation

Photo by Cytonn Photography on Unsplash

Upselling Builds Loyalty

As you help customers enhance their stay, they become more positive and satisfied, thereby deepening your relationship with them. The potential for customer loyalty increases as does their chance for a repeat stay. Upselling ensures you can give guests the opportunity to choose a value-add service that taps into their wants and needs or helps them solve a problem.

Hotel room

Photo by Rhema Kallianpur on Unsplash

Upselling Helps Your Hotel Grow

When it comes to selling to existing customers, the opportunity is much bigger than when selling to new customers. Maximize this opportunity to make existing customers happy by selling more to them that they can appreciate. This means faster growth and a faster path to increased profits in the short-term and long run.

“The probability of selling to a new prospect is 5-20%. The probability of selling to an existing customer is 60-70%.”

— Marketing Metrics, 8 Upselling Tips that Make Hotel Guests Happier

customer value graph

Upselling Builds Customer Lifetime Value (CLV)

CLV is the value a customer contributes to your hotel during the duration of their stay with you. This is an important metric for decision-making which ideally should be greater than the cost of customer acquisition.Each upsell can make a customer more loyal with each positive interaction, increasing the customer lifetime value. 

“Companies can accelerate time to profit by upselling and upgrading current customers.”

— Joel York (Entrepreneur), 8 Upselling Tips that Make Hotel Guests Happier

 

To learn more about upselling and what your hotel can do to monetize this tactic, read 5 Top Tips to Upselling.

 


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Topics: Guest Experience

About Blog Author

hi Inc. Content Editor delivering hospitality technology news on the travel & tourism industries. Staying ahead of what is happening & trending. Providing hoteliers with actionable insights and helpful tips to help them enhance guest engagement and increase incremental revenue.