The brilliance of recurring revenues

recurring revenues

This chilly morning, as I saw a lorry unpacking a Peloton 🚴🏻 into my neighbour’s garage, it reminded me of a company doing recurring revenues well.

Amazon, Spotify, Gyms, Software, E-learning, Calm apps… – use monthly subscriptions as they know that the longer you can keep a customer the greater the profit 💰 Customer retention is so much more cost efficient 📈

Are you able to move to a membership/subscription mode to get predictive cash flow? Peloton’s share price has more than tripled.

Top tips for recurring revenues:

✅ Introduce a fee-paying memberships or subscription

✅ Create a loyalty program

✅ Focus on customer life-time value and retention metrics

✅ Offer incentives for repeat business – can be financial or non-financial (e.g. 10% off or a great view in a restaurant)

✅ Provide consistently brilliant customer service

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But creating guest loyalty shouldn’t be the remit of just one person. Everyone should be involved. It’s not just about sending out emails with discounts, it’s about embedding ideas that make people remember your hotel and love it.

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