Our jobs in the tourism industry are simple. Tourism sales involve getting more people through our doors or to our destination and get those customers to spend money. Keeping existing customers is easier than obtaining new customers so let’s look at a way to entice them to spend more money.
Understanding the 80/20 principle and tourism sales
As regular readers of my blog know, I am a huge proponent of using the 80/20 rule for work and personal life. I have spoken to tourism groups about harnessing the power of 80/20, and have written blog posts on this little-understood law of nature. I always recommend the 80/20 Principle by Robert Koch.* But today I am going to focus on an idea discussed in 80/20 Sales and Marketing by Perry Marshall.*
Marshall demonstrates that within your existing customer base are clients who would be willing to spend more money with you. He uses the example of Starbucks. Most people will buy a $4 cup of coffee. But some will also buy a scone. Some will buy a scone and a CD. A few will buy coffee, a scone, a CD, a gift card and a mug. Get the idea? There is also at least one customer that will buy a $2000 espresso machine.
But if all your business sells is a $4 experience, you are letting your guests walk out with money they would have spent with you. You need to develop your tourism attraction espresso machine.
1.Identify some high-value experiences and products
Perhaps you already offer some add on options. Hands on experiences are very popular with groups, with families and many individuals. What can a guest create that they can take with them?
How about a VIP experience? My friends at Graceland were telling me about their new VIP Experience that they developed. Elvis fans flock to Graceland and they correctly concluded that some Elvis fans would spend anything to have a unique experience. When they developed the package, they thought there would be some interest. But it turns out that there are so many people interested in this experience that they often have a waiting list.
What can you develop for group tour guests?
Do you host group tours for meals? How about offering someone to speak and answer questions about your attraction and its stories during lunch for an additional fee?
Would it be possible to have a private seating space with beverages for the group? How about the ability to have a small gift when they depart? Tour operators are always looking for ways to elevate and customize their tours. For every 15-30 operators who want a basic admission ticket, there will be a few that want more.
How about a Behind the Scenes tour? For an additional sum, guests could get a guided tour of areas of your attraction that the average visitor doesn’t see. I remember years ago when my son and I were on a Road Dogs beer tour in Seattle. At one of the breweries, they took us into the back to try out a test batch that they were making of peanut butter beer. (For the record, it wasn’t great!) But it was so cool going in the back, stepping over hoses and drinking out of paper cups with the owner. That made it memorable and we all bought something at the shop.
Consider MICE groups
MICE stands for meetings and incentives. These are groups whose members are usually part of a corporation or organization. The customers are enjoying the rewards of a trip. Tour operators that specialize in the MICE market might be the ones to buy your tourism espresso machine. After all, they are tasked with creating a memorable trip that will serve as a reward for a job well done.
2.Add more retail opportunities
Guests often want to buy something at your attraction. Do you sell postcards ( and postcard stamps?) How about some items with your business logo stamped on them?
Consider adding some higher end products to capture those looking to spend more. Keep in mind that the items will have to travel home so if they are delicate, or large consider offering shipping.
Do you offer food? If you don’t’ have a full-service restaurant, how about some local specialties? Or snacks that are inexpensive and easy to purchase. Bottled water is always popular too.
3.Promote your new offerings to existing customers
How can you get the word out to your existing customers about your new offerings?
For group tours, work with your DMO. They are always being asked about new products and experiences. Have your DMO sales staff come to your attraction and experience your new offerings. Ask if they will feature you in an upcoming FAM ( Familiarization) tour and mention you when they go out on sales calls.
For individuals, consider an email blast. Use your social media accounts to show others experiencing the new opportunities. Airbnb also has a new option for booking experiences. Would your offering work for Airbnb customers? Worth a try.
Your Action steps for success.
We all know that ideas need action. My goal is to help you succeed so here are some steps I think you should consider.
1. Brainstorm a list of 5 new experiences guest can have at your attraction.
2. With a small group of staff, decide on the two options that seem easiest to implement.
3. Create the experience and price it.
4. Try a few test runs with willing participants. If your option is for a group tour, ask a trusted client if they would be willing to have their customers try this for free, if their guests will fill out a short survey at the end. Tweak the offering if necessary.
5. Create a SOP ( Standard Operating Procedure) for the experience. This creates standardization and accountability.
6. Start small and promote limited availability.
Final thoughts
I am taking my own advice and working on a membership option for my readers. My members will have access to me, the ability to connect with other attractions around the country and to have exclusive content. I am a bit nervous to try this, but 80/20 Sales and marketing tells me the customers are out there waiting for me to offer this. I will be sure to let you all know when I am ready to launch!
When you see *, you will know that is an affiliate link for me and I get a few pennies if you purchase the book.