Business Management

How to Avoid Negotiating Your Prices with Customers

Bargaining is an age-old practice, and it's common for customers to try to negotiate for better prices when booking tours and activities.If you see bargaining as an unavoidable part of doing business, you end up rationalizing that it's okay. Even though "everyone" seems to be doing it, that doesn't make it a best practice in almost any kind business—including tour operations. In reality, you probably shouldn't let them negotiate at all, unless you've already set your prices higher than they should be.One problem with accepting customers' requests for a lower price is that it can destroy trust and cheapen your brand—as well as people's perceptions of the value you provide. If a customer who walks in today can get a discount that is different than another customer who purchases the exact same thing from you tomorrow, you should hope they never compare notes. This can be especially damaging to tour operators, where word-of-mouth and referrals are a major source of new customers.Negotiating also erodes prices at the same time it optically lifts them. If lowering your prices is what it takes to win a customer, your competitor will also do it. Then it turns into a race to the bottom of who can offer the cheapest experience and still make a profit. The margins become so tight that each operator has to pump an enormous amount of volume through their facility to make money.

If lowering your prices is what it takes to win a customer, your competitor will also do it

Giving a customer a better price occasionally may seem like no big deal, but it can add up substantially and quickly—and companies can go out of business. You shouldn't have to discount. But what can you do instead?

Say No, Then Add a Sweetener

Although this differs by culture, as a general rule people rarely ask for a better price more than two or three times. If saying no doesn't do the trick, remember that when people ask for a discount, what they may really be asking for is to make them feel special—not necessarily a concession on price.One of the easiest things you can do is to add something extra to the experience. This can increase the perceived value on their side and helps substantiate your price. Ideally, this something extra can be provided at low or no monetary cost to you.For example:

  • If you're a boat excursion company offering pre-packaged trips, you can offer snacks, appetizers, and beverages for the group.
  • If you offer an activity that takes five hours, extend the adventure by another 30 minutes.
  • If you offer a tour, find ways to customize the experience for them.

Try Asking for Something in Return

Discounting to land new customers where you get something in return of equal—and preferably larger—value is a much better strategy. In this case, discounting isn't discounting; it's is simply exchanging things of like value to come to terms of a deal. If adding something to the experience doesn't work, you can try asking for something in exchange for a discount.If a bigger company or group is pressuring you on the price, you can:

  • Ask to be the preferred tour operator in exchange for a discount. This means that all activity business would go to you first, and only to someone else when you can't meet their needs.
  • Ask for a larger commitment in the form of multiple events (or more participants in the event) in exchange for the discount.

Or if you're looking to land a single new customer, you can:

  • Ask the customer to commit to more than one activity in exchange for the discount.
  • Ask the customer to purchase add-ons in the form of equipment upgrades or other offers.

If a monetary discount appears to be the only option to keep your customer, you'll have to weigh the pros and cons. Be sure to have standard discounts in your back pocket so you can avoid making them up on the spot. And always ask for something in return for the monetary discount.Things you can ask for include:

  • a referral to another company they know and work with.
  • a press release mentioning your company's name.
  • a review on a popular site where your potential customers visit.
  • a blog article talking about the event with a link to your site.
  • a testimonial you can use on your website.
  • the ability to use the company's photographs in your marketing efforts.

Also, remember that it's ok to say no. Sometimes you have to cover your costs, and sometimes saying no even has the surprising result of turning a few customers around to pay your asking price. Don't forget to have some standard discounts already prepared so you can treat customers fairly—while also protecting your margins.You really should not discount at all. If you fall into the trap that you're one of many companies that offer the exact same thing, you risk rationalizing that discounting is the cost of doing business. If you have to discount, you might as well ask for things that can help you keep your new customer for a long time—but lowering your price should be the very last thing you offer.

Online Bookings

Want More Bookings? 7 Proven Ways to Boost Conversions

You've won half the battle: you have an influx of potential customers perusing your site. But you've noticed that spike in site traffic hasn't led to an increase in bookings. So how exactly do you turn those passers-by to your site into loyal, paying customers? Implement these seven tips to start seeing more bookings.

1. Simplify the information on your site

Keep your website easily navigable and searchable. According to Hubspot, 76% of consumers prefer a website that makes it easy to find the information for which they're looking. So keep your site simple with a few large images per page, concise descriptions, and well-labeled tabs to direct them to the information they want. And what information are customers looking for? Aside from the basics—phone number, address, pricing info—they want to know what makes your business special. On your homepage, make clear what your company offers and, more importantly, what makes your offerings unique.

2. Revamp your site photography

Professionally shot images on your site can make a huge difference in the way potential customers perceive your business. According to MGD Advertising, 67% of consumers deemed detailed photos as important to them, and another 50% said photos are more important than product information, long descriptions, or ratings and reviews.

3. Make your booking button prominent on your home page

Even a beautiful website without a clear call to action will lose potential customers who may not be able to find the next step.

Even a beautiful website without a clear call to action will lose potential customers who may not be able to find the next step.

To remove any friction in your customers’ decision-making and booking process, make sure that your booking button is large and clearly visible on your home page. Something as simple as changing the pronouns you use in your call to action can help boost conversions. In fact, Unbounce and ContentVerve ran a test that found changing “your" to “my" resulted in a 90% increase in conversions. A little change from “Book Your Tour Now" to “Book My Tour Now" can have a dramatic effect on your bookings.

4. Flaunt third-party validation

There's no better way to promote your business than through third-party accounts. And perhaps the strongest form of third-party validation is testimonials from friends and family. In fact, a study by Nielson found that, compared to other forms of marketing, 92% of people trust recommendations from friends and family more. And Market Force Information found that 81% of consumers are influenced by their friends' social media posts. So encourage customers to share their experiences on social media, and tag your business in the posts.

5. Offer discounts to your customers

Discounts or special packages can be just the thing to sway someone’s purchasing decision. You can create a discount code and email it out in an e-newsletter or post it to Facebook for your fans to create buzz. Make it even easier for yourself with an online booking platform like Peek Pro, which allows you to create promo codes that customers can redeem during the checkout flow on your website. Offering specials like a first come, first served discount to a limited number of customers creates scarcity, which will add incentive for people to book quickly.And if you don't want to discount your experiences, read about how you can create irresistible packaged experiences for your potential customers.

6. Make sure your checkout flow is mobile optimized

If your website—and more importantly, checkout flow—isn't optimized for mobile devices, your potentially losing customers. A study by ComScore found that smartphones and tablets combined for 60% of all online traffic. As more customers are browsing for activities and tours on their phones, it’s important to ensure your site is mobile friendly. With an online booking platform that is mobile optimized, your customers can easily book directly from your website on any device.

7. Offer a smooth booking experience with an online booking system

Potential customers, more than anything, are looking for ease. Setting yourself up to allow for online booking gives customers a streamlined experience, which makes them much more likely to not abandon the booking process. If you run a tour or activity business, you can check out a demo of Peek Pro for free here.Focusing on these small details will help you turn those would-be passers-by into paying customers. What other strategies have helped you increase your bookings? Please share in the comments below.

Why Packaging in Threes is Magically Profitable

The number three is prevalent throughout society: religion (the Holy Trinity); government (three branches of government); and even language ("the good, the bad, and the ugly").But why is it so prevalent? A lot has to do with the fact that the average human mind can easily store three items in short-term memory. That's also what makes three the perfect threshold when offering choices to customers. (You'll even notice big-name companies harnessing its power: Did you choose Apple's iPhone in 128GB, 64GB, or 16GB? How about Amazon's Kindle, Kindle Paperwhite, or Kindle Voyage?)For customers, every additional choice beyond three makes it a bit more difficult to choose. As Barry Schwartz uncovered in the TED talk “The Paradox of Choice," too many options paralyze consumers. That being said, too few options can also leave people unsatisfied. Virginia Satir, a well-known author and family therapist, once quipped: “…to have one choice is no choice, to have two choices is a dilemma, and to have three choices offers new possibilities."But how can your tours or activities company leverage the power of three? A common framework you can use is the Good / Better / Best model.

Here's how it works:

Your customers choose from three packages—centered around a similar experience you're offering—at different price points. The "best" option is packed with all the goodies and targeted to the customers who want to maximize their experience where money isn't really an issue; the "better" option is targeted to the mainstream of your potential customers who want a good experience for a good deal; and the "good" option is targeted to the budget conscious.

Here's why it works:

According to Dan Ariely's book Predictably Irrational, offering three choices is important because “most people don't know what they want unless they see it in context." Three choices help people compare and determine which deal is best for them. In William Poundstones' book Priceless: The Myth of Fair Market Value, he describes an entertaining beer experiment to show how a majority of customers invariably rationalize buying the middle option when presented with three choices, while a much smaller percentage will choose the cheaper and more expensive options.

Offering three choices is important because most people don't know what they want unless they see it in context.

Offering three options also makes it easy for customers to rationalize doing business with you, and allows them to feel like they've done their homework when searching around for a great deal. It fulfills their need to research and cuts down on shopping the competition. This is called “competing with yourself," because if the customer chooses any of your three options, you win.Providing three well thought-out choices is also a means to differentiate yourself from your competitors. For example, Blazing Saddles, a San Francisco bike rental and tour company, offers three simple options under their electric bike rentals, all at different price points. The person who is simply looking for a lift in a modest price range can choose the first bike, while each additional option offers more power and features for a slightly increased price.For an example of packaging targeted towards customers' sophistication level, take Streets of San Francisco. Rather than simply offering one style of bike tour for all levels, it instead gives bikers a choice of three tours (at different price points, of course): Heart of the City (beginner-level), The Classic (moderate), and 7x7 (most challenging).

How to make it work for you:

If you're offering a variety of food tours in the area, avoid cutting the number of food tours down to three. Instead, expand the options under each food tour such that each experience has three choices, or three different ways to experience that particular food tour.For example, don't just offer one “complete flavors wine and cheese adventure." Instead, break it out like this (prices for demonstration purposes only):

  • Best: Experience all of the unlimited flavors including transportation for $175.
  • Better: Try only popular flavors including transportation for $140.
  • Good: Try popular flavors without transportation for $99.

This way, you'll open up the tour to more people with different budgets and desires, and help them see what they'll be giving up if they're choosing to save money.It may take some time to go through your current offerings, but using the power of three in your packages can drive powerful profits to your bottom line.

Marketing

How to Send Great Customer Emails that Grow Your Business

From your website to phone calls, every interaction between your business and your customers carries the power to delight or disappoint. Emails are no different—and, perhaps, carry even more weight. So it's vital for your emails to be a part of your "wow" factor.Consider the types of emails you send: confirmation, reminder, review, cancellation, and refund. While each contains important information, they don't have to be dry. Let the personality and warmth that you bring to your tours and activities shine through. Add a human face to your business.Here's how to make the best use of each type of email.

1. Confirmation Email

Your customers chose you for their special experience – let them know you're happy to be a part of their big day. Use a conversational tone, even cracking a few jokes if that's your persona. Like that Southwest Airlines safety briefing (where the flight attendant said, “In the event you haven't been in an automobile since 1960, flight attendants still have to show you how to fasten a seatbelt"), a little humor can help keep people's attention through the boring stuff. Most importantly: be authentic.

Here's how to make sure your confirmation email isn't dull:

  • Feature other recommended products and services. Amazon says the best time to sell something is right after a purchase, so why not offer your memorabilia, photo packages, or additional experiences?
  • Offer discounts for referrals and encourage customers to book with a friend
  • Include related links to build the anticipation; a bike-tour business could link to an article covering the top sites in the city, or a scuba diving school could link to a gallery of photos of sea life from other divers.
A little humor can help keep people's attention through the boring stuff

But make sure you're still checking all the boxes:

  • Provide parking instructions or a meeting location, with a link to a map
  • Include what to bring (footwear, sunscreen, gloves, etc.)
  • Link to a waiver, which customers can fill out and bring with them
  • Include links to your social media sites so customers can follow you for updates
  • Always include a clear call-to-action based on what you want the customer to do: check out your online store, sign up for your newsletter, or forward the experience to a friend
  • Use consistent branding by making your logo prominent in the email header
  • Use subject lines that make it easy to search for the email, such as "Welcome to Your Wildlife Adventure" or "See You in Country Cooking School Class"

2. Reminder Email

Send a reminder email a week to a few days prior to the scheduled experience. (You can also send another one closer to the event with more details, if necessary.) Many footraces send a series of reminder emails leading up to race day, with information on parking, bib and race packet pick-up, and incentives for referring friends.A detailed reminder email gives customers a full picture of what to expect and reduces the number of follow-up questions you'll receive. In addition to the usual details (meeting time, location and directions, what to wear and bring, etc.), you can include:

  • A note on bathrooms. This might be helpful to include if there won't be any public bathrooms available for any portion of the experience.
  • Safety tips, like: "Make sure you hydrate and bring a warmer layer" or "Wear long pants because there will be poison oak on some trails."
  • Public parking. Is there free public parking, a garage, or metered street parking? Let your customers know so they can be prepared.
  • A note on tipping. For example, Urban Hiker SF includes the following note at the bottom of their reminder email: "Tips are optional, but always appreciated. You're helping a small business succeed. The tip amount is at your discretion, but as a rough guide, consider giving 10 to 15 percent."

3. Review Email

Follow up with customers after their experience to thank them personally. You can ask for feedback and/or an online review, or include a link to a form or survey. Of course, make yourself available for direct contact if they have a serious matter to bring to your attention.Your survey questions can help you get real insights into your customers' experiences and satisfaction. Here's how to keep your survey balanced and even-handed so you can see people's true attitudes instead of what they think you want to hear.

  • Ask specific questions. Don't ask, "Was the experience enjoyable and a good value?"Instead, ask about each part (the food, the service, the activity, etc.) so respondents can focus their answers.
  • Be neutral. Don't ask, "Did you have a great experience with your tour guide?" Instead, ask, "How was your experience with your tour guide?"
  • Include options such as "other" or "not applicable" so you don't force people to make a selection that's not true.

Once again, include buttons to your social media profiles and your blog. Let customers know how to share photos and videos, and give them hashtags and handles so they can follow your sites and other people who've shared the same experience.Remind your customers to share the experience with a friend to get a discount towards their next booking. For instance, Intrepid Travel, a provider of small-group local adventures, offers a tiered loyalty program: a small discount for booking one trip, and a larger discount for those who have booked three trips. Those who book nine trips received the 10th one free, and special "Intrepid Legend" status.Remember to always keep the call to action simple, and don't emphasize too many things. Choose one that's important to you, such as asking for feedback. Test offers to see which one brings the best response, like submitting a photo or posting a review.

4. Cancellation/Refund Email

Keep your friendly tone even in the cancellation email. Remember, a well-received cancellation email could lead to you recovering the booking at a later date. Your cancellation email should be specific about the terms, such as any fees, refund amount, and delivery method and timing of refunds. Give them a link to reschedule the experience, perhaps with no fee if it's within a certain time period. Ask for people to let them know why they cancelled — be it personal reasons, work, or weather.Although some legal fine print may be necessary for the cancellation/refund policy, the overall tone here should be just as welcoming as your confirmation email. After all, it's not always about you. It's usually about them. Remind them they're missing out on an unforgettable experience and give them easy ways to re-book and refer people.

Conclusion

You company's emails are an important touchstone to building a stronger, more lasting relationship with your customers. Avoid being dry, but keep your image and voice consistent with other channels that your customers could encounter (your website, advertising, social media, etc.).You can streamline your emails with Peek Pro, which currently allows you to customize and automate all four types of emails. Merchants can also use ZOZI Advance to customize and add personalized messages with text or HTML tags for you to easily make your message consistent and memorable.

Marketing

Google's Algorithm Update: Why Your Site Should Be Mobile-Friendly

Tuesday, April 21st 2015 was a day just like any other. The sun came up, tour operators went about their day, people planned their upcoming Earth Day adventures, and when you checked your Google rankings, everything looked glorious.Unless, of course, you missed Google's warning in February about its new mobile algorithm update. If you've noticed a change in your search rankings, or your website traffic has shown a decrease since April 21, it may have to do with Google's latest change to its search engine algorithm, or in more technical terms: mobile-friendliness. Basically, what this latest change means is the easier your website is to read on a mobile device, the higher it will be ranked in Google's search results.

Since Google wants to ensure users discover mobile-friendly content when performing searches, they expanded their use of mobile-friendliness as a ranking signal.

Since Google wants to ensure users discover mobile-friendly content when performing searches, they expanded their use of mobile-friendliness as a ranking signal. Today, consumers are using mobile devices for practically everything: checking emails, posting blog articles, downloading applications, and, as you should be well aware, even booking vacations, tours, and weekend adventure activities. If you have a smartphone, chances are you've pulled up a non mobile-friendly website and were disappointed that it was difficult to navigate or read. Google's new search ranking criteria will ideally make occurrences like that less frequent by listing mobile-optimized sites higher (when you're searching from a mobile device) than those who still have work to do.If you're still getting acquainted with this update, below are three easy steps to help you get dressed for Google's latest search party.

Step 1: Check Your Site for Mobile Friendliness

There are a couple of ways you can find out if your website pages are mobile friendly. Simply search for your specific page in Google and see if it has the “Mobile-friendly" label displayed in the results.You can also check your page using the Google Webmaster Tool. Just make sure you're entering the web-address exactly (i.e. if your site begins with “https://" don't forget the “s").

Step 2: Check Your Current Mobile Traffic

Margot da Cunha, content marketing expert at WordStream, a search marketing software company that shares online marketing advice, weighed in on the situation. “This is a rolling update which means that Google will continue to recognize changes you make to your site in the future. So, it's important not to panic," says da Cunha.Still, she suggests tour and activity operators check to see how important mobile traffic is to their specific business, as this update will only affect mobile searches. “In Google Analytics, there is a reporting feature to see how much organic traffic you're getting from mobile," she says. "Focus on making sure that your highest traffic pages for mobile are optimized."How much mobile traffic should get your attention? “Well there is no magic number since everyone's business is different," da Cunha says. “But a reasonable number might be around 10 percent for mobile traffic. Just remember, if your mobile visitors represent less than 10 percent of your overall traffic, you still may not want to ignore this update because your site might currently perform poorly on mobile."In other words, if your current site isn't user-friendly on mobile devices, your percentage of mobile traffic is going to be low. So be careful with this test so you don't inadvertently miss out on an opportunity to improve your site for mobile visitors and capture more customers. If you're still unsure, err on the side of caution and follow this guide. Then test to see if your mobile traffic increases over time.

Step 3: Start With the Important Pages

This means you're going to want to update your home page and any other pages on your site that list your activity or booking information.If you don't have anyone within your company who knows how to make your website pages mobile-friendly, a quick search online will reveal many third party services and developers who can help. (Or at the very least, check out this Google help page: Mobile-Friendly Websites: Get Started). If you're using Wordpress, there are some mobile-friendly plugins you can explore. If you're into high-end themes, the "X theme" (as well as others), comes fully baked with mobile friendliness out of the box, no plugins required.Remember, Google should pick up any change you make relatively quickly from here on out so publish changes as you complete them to take advantage of better mobile rankings.

Other Useful Information

Da Cunha shared that pay-per-click advertisements will not be affected, so if you've invested in paid advertisements, those will still show up at the top of Google's search results. Also, keep in mind the change will only affect searches from a mobile device, so searches from desktop computers and tablets will remain unaffected.Even though Google's update is already in effect, there's no need to worry. Just make these few, easy updates so you don't miss out on any more adventure-seekers.

9 Ways an Online Booking System Will Save You Time

It doesn't matter if you're running a small business on your own or managing a growing team: making use of an online booking system is a crucial aspect of running your business in this day and age. From streamlining the booking process to facilitating administrative tasks, here are nine ways an online booking platform will help you gain hours back in your day.

1. Your customers can book on their own, 24/7

Revenue generated from online travel bookings has risen more than 73 percent over the previous five years, with 57 percent of all travel-related reservations taking place online, according to research group Statistic Brain. That number is only expected to continue growing — worldwide. Today's consumers are looking for a quick, no-hassle way to book their trips, tours, and experiences. So if your customers aren't able to easily book your experiences online, you are likely losing business to your competitors.

If your customers aren't able to easily book your experiences online, you are likely losing business to your competitors.

By using an online booking system, you allow customers to check your availability, select their preferred dates and times, add their details, and make the payment — all from your own website. Added bonus: you'll capture customers who want to book on their own time, outside of your business hours and while you sleep!

2. You don't have to be on the phone all day

Tour and activity operators receive ceaseless array of phone calls throughout the day, it seems the only way to handle them is hiring additional staff members. It's a fact of the trade — there just aren't enough hours in a day to handle each and every phone reservation coming through.But with an online booking system you can have a calendar. Having a booking calendar on your webpage is just like having a call center handling reservations 24/7. With more customers booking online, you'll reduce the number of phone reservations. And, for the phone reservations that you do take, just click to add new bookings that sync to your calendar and dashboard.

3. You'll give customers your real-time availability - without having to tell them

Many of your customers call or email you to ask that one question: “Do you have availability on this date?" An online booking system, which shows customers your availability in real time (and keeps that information accurate and updated), cuts through that confusion. Making it that much easier for potential customers to find the information they need will lead to a boost in bookings. A study by Corporate Executive Board found that businesses who made the purchasing-decision search easier were 86 percent more likely to make a sale. So that little bit of clarity goes a long way.

4. You don't need to confirm or remind

Your customers may forget what day they booked or other details about their reservation. You may also spend hours sending reminders, information on where to meet and what to bring, and directions to customers. With an online booking system, you can customize emails that will automatically confirm the reservation and send your customers the details about their reservation.

With an online booking system, you can customize emails that will automatically confirm the reservation and send your customers the details about their reservation.

In addition, you can create and set an automated reminder email a few days before arrival to ensure they know what day they are coming and where to go when they get there. This is a simple process that is essential to your productivity and gives customers a professional first impression of your business.

5. You'll have booking and revenue reports at your fingertips

Online booking platforms like Peek Pro allow you to view all pertinent information you'll need for current and future reservations. As soon as a customer books with your company, the reservation details including customer information and payment history is recorded in the system. With just the click of a mouse, you can extract your customer database, review revenue for the previous year, or check statistics such as how many people booked a specific product during the last two months. This will allow you to fine-tune your offerings to increase your revenue.

6. You can find a reservation in record time

You've been there before: A customer calls or emails to modify their booking. Even if you keep detailed records on your computer, you'll spend a decent amount of time searching for the reservation and customer's details. An online booking system eliminates that hassle. With a booking system, quickly look up your customers by name or reservation number. This not only saves you time, but it greatly improves customer service. And since a study by ZenDesk found that 55 percent of people switched companies for a product of service due to a poor customer service experience, this image of professionalism is all-too important.

7. You always have all the required information

An online reservation system not only streamlines the booking process for consumers, but also requires customers to enter all the information you need to complete a booking. That means customers' information (name, email, telephone number, etc) is at your fingertips — and searchable— should you need it. You can even include custom questions in the checkout process for miscellaneous information that you want to gather, such as food allergies, expertise level for the activity, or T-shirt size.

8. You solve the issue of no-shows

It's a scenario no business enjoys, but one all too common in the tourism industry: no-shows. A customer booked with you, doesn't show up, and doesn't inform you. For the business, that means a loss of both time and money. Not only that, but it also means you missed an opportunity to give that spot to another customer. A booking system will give you the option to ask for a deposit, and get paid immediately using PayPal or a credit card. It's easy for both you and your customer, and at the same time it ensures you don't lose money when there's a no-show.

9. You'll attract quality customers while spending less time on marketing

You may be spending too much time and money with social media marketing and online ads without seeing significant conversions. Peek's online booking platform offers a unique way to guarantee large amounts of bookings. Called Peek Pro, it's the only merchant marketing program for activity providers that guarantees large amounts of bookings to ensure that your empty spots are filled throughout the year. You can check it out to learn more about how you can be a part of this program.

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