Sell the problem you solve. It’s a statement my teams and the colleagues I’ve worked with over the years have probably heard on more than a few occasions - and it’s certainly no different at Upgrade Pack.
When building a new business (or any business for that matter), it’s very easy to get wrapped up in defining the value propositions and the ‘why’ someone would buy what you’re selling. But lost somewhere in all the excitement about how customers will flock can often be clarity, and more importantly, the customers' clarity on the problem you’re actually helping them fix.
When we sat down to build our value propositions at Upgrade Pack, we made sure we spent time ensuring that what we were building genuinely helped solve problems our customers actually had. Instead of a single customer, we have three constituent audiences: our partners; our clients; and our users. We’re helping each of them solve a slightly different problem.
Our partners, the airlines and hotel chains, have the constant challenge of unsold inventory and are under constant pressure to maximise uptake and occupancy - especially of their premium inventory. So consider:
- No airline has a higher consistent occupancy than 90% (73% is the average) and there are over 100k flights every day globally
- Often, 30% of an aircraft's revenue comes from just 5% of its passengers onboard
- There are 17.5m hotel rooms globally with an average occupancy of just 84%
- More than 35% of hotel revenue comes from guests paying for premium extras, including upgrades
Our partners don't want to publicly offer discounts, especially on premium inventory. It cheapens their brand and fails to build long term value. By giving our partners the ability to offer discounted upgrades via a closed marketplace (and one that is wholly focused on up-selling existing customers and bookings) to the users most likely to see the value in upgrading, we help them solve this.
I'll explain how we're addressing the challenges of our clients and users in the next post. In the meantime, we're off to New York for a week to share the concept with our first clients and partners - which we're massively excited about. Just do me a favour, New York, and turn the humidity down for a few days.