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| Nano Brands: How deep is your relationship?
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By: Bill Nissim, October 2005 ©
We’ve all heard the phase “niche marketing” and what that means to narrow the
focus of both your communications and business model. Most consumer-based
industries have slowly migrated from micro-segmentation down to the individual
consumer. But is that enough?
The challenge most organization’s face - how deep is you relationship with current
and potential customers? Not unlike most valued relationships, you must anticipate
their wants, behavior, thought process, and future needs. These desires are
expressed through a variety of sensory activities and will be unveiled throughout
this article. Let’s use the hotel industry as a model to evaluate these issues through
a concept I call “Nano Branding.”
To set the stage, we first need to understand the context of this “hotel-consumer”
relationship. At first blush, any current or potential customer would discern hotel
brands through a variety of venues: an advertisement, signage, travel agent
suggestion, Internet (and Internet Portals), recommendation from a colleague, and
general word-of-mouth. In some cases, you only have one opportunity to introduce
your value proposition and first impressions are critical (like a first date).
One question remains – how engaging and innovative is this hotel-consumer
relationship?
Initial Search:
In the 21st Century, current and potential consumers will most likely utilize your
site where they begin the price/availability search. The discount shopper will
typically seek third-party sites (Hotels.com, Expedia, Priceline, etc.), but highly
valued consumers are generally business travelers and prefer a direct connection
with a brand. (We’ll refer to business travelers as “clients” henceforth).
To assure consistency, I viewed five commonly known hotel sites and followed their
respective process from the home page to check-out. The brands considered
included Marriott, Westin, Hyatt, Hilton, and Crowne Plaza. To evaluate each
brand, I sought accommodations in a progressive city (Irvine, California) and used
each site to secure a reservation.
In each case, all hotel companies offered nearly the same experience. They allowed
the client to search city, state, and dates of travel. In addition, they all offered
various rates based on type of room and other accommodations. The number of
“clicks” to achieve a valid reservation ranged from three to five (web pages).
Marriott had a few extra settings such as choice of pillow (foam or regular), but on
the whole, the experience was similar.
Let’s assume a match occurred between a client and a desired room rate. At this
juncture, all hotel brands usher you off to check-out and miss a HUGE opportunity!
From the hotel management’s point-of-view, their job is done. From the client’s
experience, it’s good enough, but no better than any other offering. The following
prescribes an alternate approach to relationship and brand enhancement.
Nano Branding Applied:
What is a Nano Brand anyway? It simply means moving a brand into the deepest
level imaginable within the client’s minds-eye! You achieve this by creating a new
value that’s not currently available
and executing it in such a way
that’s hard to follow. Starbucks
took generic coffee drinkers, and
by changing the rules of the game,
turned them into committed brand
patriots! Serious joggers invest in
shoe technology and will only
consider the Nike Brand to other
competing offerings. If you need a
package sent overnight and
demand assurance it will get there,
your only consideration would be
Fed-X. In the same respect,
understanding the value required
in a given setting drives brand commitment. This changes the client’s view from
casual user to a committed brand owner. Let’s apply Nano Branding to the hotel
industry and consider the possibilities.
Dare to Dream:
Imagine if clients were treated differently. In addition to selecting criteria such as a
non-smoking/king, consider the unveiling of offerings that would enhance their
experience and build brand loyalty at the same time? After a client completes the
reservation essentials, gently draw them to a world where they can customize their
experience. Using current IT technology and infrastructure most hotel companies
employ, let’s imagine a full-service hotel chain which seeks to “change the rules of
the game.” How could this be done? Let’s break the hotel experience into
fragments and address each component.
Room Ambience:
When a client walks into your hotel room, what is their first impression? Is the
room pitch black? Do they fumble to find the light switch? Once the light is turned
on, what do they see? Is the room silent and uninviting? If you stayed one night in
each of the brands mentioned, would the experience differ?
Now imagine a world where valued clients can specify their preferences. Consider a
web page on your site which graphically depicts a standard room. A “pop-up”
invites the client to explore this interactive site and the many surprises to be
discovered. By running the mouse (arrow) over various objects, the client can now
set the tone of the experience: from lighting to genre of music (through the TV, a
CD player, or other satellite music devices). After each “click” by your captivated
client, the visual and audio elements on the web page change to reflect the expected
brand promise (lighting in the room changes and a sample music clip plays). To
fully engage your client, you must attend to all of their senses!
One important caveat to consider – ask the client during their FIRST visit if they
would like to save their settings before checking out. In this manner, the client
“wins” because this hotel took the time to ask and remember their preferences, and
in turn, the hotel also “wins” by deepening their relationship and achieving
personal desires. This simple interaction will pay enormous dividends in the form
of future revenue streams.
Amenities:
This particular client has now experienced something new and inviting and returns
to your site to book his/her next visit. After completing their reservation, they run
the mouse around the room graphic and come across a menu perched on the desk.
How about a fruit plate or their favorite bottle water awaiting them in addition to
the proper room ambience? These amenities can be “ordered” through this same
venue and delivered by room service.
What’s happening here? Two distinct and simultaneous events are occurring that
generate REAL VALUE. For the client, they are empowered to “customize” their
experience and begin to trust the brand to deliver the kind of relationship they
desire. For the hotel, a deeper relationship has developed in addition to a greater
“share-of-wallet.” As you can see, this forum moves the client from Price to
Experience offered and Casual to Preferred user.
Food and Beverage:
As your client becomes (and now prefers this type of treatment) more familiar with
his or her profile on your web-site, they begin to seek new venues of gratification.
Does your client enjoy a cup of coffee and toast at 6:25am sharp each morning?
Why do you make them call room service? Would they prefer the Wall Street
Journal or USA Today? How about dining facilities? If you have the best Shrimp
Creole in town, ask if they would like a reservation during their stay. If your client
enjoys a martini after work, have one waiting for them. You can now visualize the
deepening of the brand-client relationship from casual usage to a “must have.” Can
you hear the cash register ringing yet?
Services:
Does your client golf or play tennis after work? Do they enjoy Theatre or an avid
movie buff? Whatever their pleasure, you need to know these things. Sites like
Barnes & Noble and Amazon use software to track your reading preferences and
actually recommend newly published books along the same genre. Why not employ
intelligence gathering and use software to gently push specific venues? Even if your
client doesn’t use these “recommendations,” they certainly appreciate the offer.
S2E:
Now that you’ve captivated these clients with the front-end web site, delivering the
brand promise is critical. The essence of a brand promise contains three
constituents: it’s consistent, timely, and a perception of continued, future
excellence. However you execute this process, the procured resources and logistics
already exist and only require S2E (steps-to-execution)! Conversely, miss any one of
these components (however small), and the brand promise begins to unravel.
You can equate S2E to your next visit to Starbucks. You briskly walk in the door
with a pre-conceived notation (brand promise) – a Venti Sumatra which is both
steaming hot and possesses a clean, yet flavorful taste that lingers on your palate.
Imagine if the S2E disintegrated for just one day. Was the coffee cold or too bitter?
Did they change the music to a local hard rock station verses the usual relaxing
jazz? Were the uniforms dirty or wrinkled?
To assure S2E, Starbucks provides their employees with a small manual called the
“Green Apron Book” which details every nuance; including values, daily mission,
and attire. Both the work area and equipment are arranged to effectively deliver
the brand promise despite the traffic flow or time of day. In short, an intelligently
designed process and communication system will ensure the brand promise will be
executed each and every time.
Conclusion:
In many ways, “points” of differentiation in the hotel industry becomes allusive
since most competitors can quickly replicate these short-term advantages. A recent
article in one hotel magazine ran a story about kiosks as a preferred method for
check-in/out by their patrons. Not unlike the airline industry, the ability to copy this
capability equalizes any advantage and simply raising the standard (and associated
costs) to do business.
The key to “changing the rules of the game” comes down to execution (S2E).
Simply look to market leaders in varying industries. Dell offers the same computer
hardware as does Gateway and HP, but the market valuation resides in how Dell
executes their strategy. The same holds true for Southwest Airlines. While every
major carrier wallows in Chapter 11, SW just announced their 32nd (consecutive)
profitable year. You decide!
The ability to create a disruption in any given market space comes down to two
points: did you change the rules of the game and S2E. Dell and Southwest took
rather mundane industries and turned them into profitable, market leaders. They,
in affect, applied Nano branding by identifying what people really value and
created a business model to serve that need. They took casual users and turned
them into brand patriots. In short, the hotel industry is just waiting for someone to
do the same!
Bill Nissim consults with organizations on strategic branding
imperatives. His website www.ibranz.com contains reference materials, links, and helpful
articles on the many facets of branding. In addition, Nissim released his first book
“The Brand Advocate” to provide a tool-kit for the marketing practitioner.
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