Incremental Revenue Definition
Incremental revenue refers to revenue generated from goods and services that differ from or enhance the main services or product lines of a company. Traditionally within the airline and travel sectors incremental revenue is referred to as ancillary revenue. Incremental revenue programmes enable brands to differentiate their proposition, gain a competitive advantage while generating a new and recurring revenue stream.
Incremental revenue programmes can be used to enhance customer interaction and engagement with a brand as well as gaining valuable insight and building long-term customer loyalty. Examples of incremental revenue programmes include partnership and affiliate programmes, tailored benefit packages for membership bases and promotional platforms including loyalty point redemption programmes.
To ensure success of new and recurring revenue initiatives, programmes should be built around existing marketing strategies and fit with customer profiles. Programmes can be implemented with existing loyalty and membership programmes to increase loyalty and retention. Find out more about incremental revenue programmes offered by Collinson Latitude.
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