Thursday, September 18, 2008

Avis Tries Harder: To Get Your Money!

As a marketing communications pro, I'm rarely surprised by some of the ingenious and insidious ploys my fellow marketers adopt to separate you from your money. Many marketers I know conceive and implement elaborate and often successful schemes to do so, disparagingly viewing their "target audiences" as "marks" and propagating the old saying, "a fool and his money are easily parted."

This weekend--courtesy of Avis Rent a Car--I was exposed to a clever new ploy. I know it's effective because I saw it work on three of the four people in line ahead of me. Rather than rely solely on personal observations, I called Avis to corroborate the anecdotal "evidence." Probably on the advice of counsel, Avis neither confirmed nor denied that they've instructed their agents to act in accordance with this aggressive up-selling scheme.

Here's how it works:

Avis (and other rental car companies) are losing market share to name-your-own-price clearinghouses like Priceline. Instead of cutting their prices to meet the threat, however, they're adapting their sales techniques.

The agents at the desk know when you've reserved your car on Priceline. They offer you an upgraded car for "just $4 or $8 or $10 a day." If you're on business, they blithely inform you that you can expense it. If you're on vacation, they say, "you deserve it."

Smartly, they aggressively pitch you an upgrade from which they--not Priceline--get the full amount. They don't have to share it with Priceline because the amount gets charged directly to your credit card. By quoting a small amount per day, they distract your attention from the bottom line and appeal to your perceived needs. For really effective agents--like the one I encountered at the Palm Beach Airport--it's an easy sell.

I'm not against Avis--or anyone, for that matter--trying to make an extra buck or two. From a purely professional standpoint, I admire and appreciate the way Avis has adapted to the Priceline 'threat'.

Personally, however, it seems a bit slimey.

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