The+Cruise+Ship+Model

Cruise ships and many honeymoon resorts feature a very compelling feature: an all-inclusive price. This takes the focus away from generating revenues and places it on providing a memorable experience. When customers pay for extras—excursions, spa treatments, and shopping—it’s largely the customers who do the selling, as they seek the ultimate experience.

Inherent in this model is the need to keep costs down while still delivering the promised goods.

The industry leaders can attract up-and-coming performers for their stages, and even find theatrical employees to deliver routine services in a big way. Everybody wants to work for the industry leaders, and so the leaders can choose from the best, easily finding employees who are overqualified. Beyond perhaps the top 10% of the industry, managing the budget can be more challenging. Because the cruise ships and resorts aren’t paying for big-name performers, performances may be uneven. Because they have to fill up every hour of the day, many events may be classified as cheesy. In summary, the quality of the pieces would appear to not earn the overall product high ratings.

Before, during, and after the experience, customers are wowed by the offer of unlimited food. Carefully balancing quantity with “wow” dining experiences, management can predictably satisfy customers, even if the food quality is uneven. Of course, it helps that each customer’s dream of unlimited food far exceeds actual stomach capacity.

Whether going with an industry leader or with an imitator, customers generally leave the experience feeling very satisfied. Why is that?

A secondary reason is that customers receive excellent value—more than they appear to have paid for. The primary reason is that the provider engineers the experience to make the customers feel like they are royalty.

While only a limited number of vendors deploy this model, it offers great promise for the future. Economic hardship has increased consumer demand simultaneously for value and for royal treatments. When people spend their money, they want both excellent value and an incredibly memorable experience.

How can you match your products and services to these customer expectations?

Over the years, cable TV companies have been deploying this technique, although cable TV doesn't offer the same "royalty" effect as walking on a cruise ship and indulging in whatever you want. The point is this: As we approach the year 2029, more and more companies will make a business out of packaging up content and offering it at a flat rate. "Content" could be anything: movies, television programs, and videos of all types; music, podcasts, and audio of all types; software, databases, and cloud space; the right to sell products and other business opportunities; opportunities to advance your career; and so on. Anything can be packaged, with the right software to manage it. Some companies will get it right, and some won't.

Do what the cruise ships do. Design a comprehensive package, and engineer it to offer value while making the customer feel extra special. If you work with your strategic and financial experts to make this feasible, the customers will gladly take advantage of your win-win offering.

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