| By
Gary C. Sain, CMO/Partner, YPB&R
As we bring in 2005, the travel industry looks exceptionally bright
and robust. Certainly, a much more positive shift from where the industry
was a couple of years ago. Although we still face major challenges and
unforeseen threats, 2005 has the potential to go down as the most successful
year in the history of travel. A bold statement! However, no one can
argue with the current and projected travel success we are experiencing
as an industry.
If you truly believe 2005 will be a benchmark year, you will have an
excellent opportunity to refortify your brand capital. Brand capital
is the overall value of your brand. It is more than bricks and mortar.
It is the value your brand has in the minds of your targeted audience/customers.
It is more than dollars and sense. It is not a logo or an ad campaign.
It’s a relationship you have built with your customer. Brand capital
is about loyalty to your brand. Assess your brand capital by asking
these simple questions…how personally appropriate is my brand?
How distinctively is my brand perceived? Is my brand easily understood?
How well regarded is my brand?
Since 9/11, as an industry, many of us have greatly depleted our brand
capital with our targeted audiences. Granted, we needed to offer promotional
pricing/discounting to stimulate revenue during a very dark period of
our history. Branding was put on hold for more favorable tactical executions.
It was a proven approach which would generate immediate returns vs.
longer strategic investments. We think it was the right thinking based
on the issues and threats we faced at the time. However, what should
we be doing now to ensure we are increasing our brand capital?
Although the business, political, economic and social environments have
changed, consumers are still more price loyal than brand loyal. A recent
study states just 4% of consumers would be willing to stick with a brand
if its competition offered a better value for the same price. Very concerning!
However, it illustrates the “sameness” which many consumers
feel exist with products/services in the marketplace. Has effective
story telling been told? What strategic moves should travel marketers
be doing now to ensure they are maximizing their brand capital for the
future? What can we do now to weather the next threat or challenge which
may face our industry? How can we create brand loyalty with a price
loyal audience? Do we offer a sustainable, discernible difference with
our brand? Good questions we all should be asking.
I would like to offer three proven suggestions…
Be a Compelling Storyteller
Stories are memorable; promotions are not. Your brand
capital is based on how well you communicate your brand story to your
targeted audience…external as well as internal. Sounds easy. However,
it is where most travel companies fall short. If you don’t believe
me, do this. Ask 15 different people who work for your company (at various
levels within your enterprise) what your company does, what service
you provide, why you are in business, and how you are different from
your competitors. I think you will find many of the answers to be inconsistent,
misinformed, outdated and noncompelling. If these are your fellow employees
telling/delivering your brand story and they are not all on the same
page, what will your customers think? What is being communicated to
them? What is their perceived story regarding your brand? How different
is it?
Employee enculturation is one of the most important marketing weapons
to ensure brand clarity and build brand capital. It starts with the
senior management team, lead by the CMO, who first must agree to a brand
story. Story will then drive all brand communications, product development,
employee hiring and training, and guest interactions. Delivering the
brand promise across all customer touch points can only be successfully
implemented and executed based upon compelling brand story.
We believe brand differentiation is one of the most important marketing
issues facing travel companies today. A proliferation of travel brands
worldwide is leading to commoditization and non distinguishable travel
experiences. In fact, this issue was ranked third in the 7th annual
ISHC (International Society of Hospitality Consultants) Survey of the
top industry concerns for 2005. Being effective in communicating a compelling
story of your brand to your targeted audience is the only way to build
brand clarity and build brand capital. Discounting worked in the past
where supply clearly outstripped demand. As demand continues to set
new records, consumers will place more importance on their personal
relationships with brands than how much it costs. It will be about value.
Telling a compelling story is where it begins.
At YPB&R, we believe story precedes branding. You can’t brand
something if you don’t have a story. We have developed a proprietary
process called Story Jam which helps companies become great storytellers,
which in turn, dramatically increases their brand capital.
Delivering the Brand Promise
Building brand capital can be achieved only by delivering
the brand promise to each and every customer. Sounds simple enough,
doesn’t it? Do you realize that almost 70% of customers who don’t
return to a certain store or service provider do so because of an attitude
of indifference by the staff! We all see this in our everyday lives.
We patronize brands we have a relationship with. Those brands that deliver
consistently against our expectations; and they do it with a smile!
Starbucks comes to mind as one of the best in delivering exceptional
customer service/customer attitude.
Delivering great customer service/customer attitude certainly starts
with the right hiring practices. Consistent training is critical. Do
your employees know their company’s story? The company’s mission?
Why the company is in business? What separates their company from all
others? To ensure you are delivering on your brand promise, you need
to inspect what you expect. Just because it is in the employee handbook
or presented by senior management does not mean it is embedded in the
employee’s mind. The first line of interaction/communication with
your customer is not at the CEO’s office. It is with front line
employees; the front desk clerk, the doorman, the housekeeper, the 800
number, the Web site, security, etc. How well these individuals interact
with your customer determines if brand capital is being wisely invested.
Why do customers return to a specific brand? Yes, it may be the product,
the technology, the array of services, etc. However, the reason they
come back is service…how they were treated and the attitude of
the employees. It’s the relationship they have with the brand.
Positive word of mouth is the best marketing tool in your arsenal. According
to the YPB&R/Yankelovich National Leisure Travel MONITOR, leisure
travelers rate recommendations by family and friends as their #1 information
sources when choosing vacation options. The best way for you to ensure
positive word of mouth is to consistently deliver the brand promise
to each and every customer; each and
every time. Your employees are your discernible difference and for the
most part…they are your brand!
Developing measurable ways for you to inspect what you expect is paramount
in building your brand capital. YPB&R has developed proprietary
programs for travel companies to help them deliver their brand promise.
The Brand Champions
Traditionally, the CMO is the Brand Champion. Typically,
this person has had responsibility for brand management. However, if
you believe (as we do) that the brand is the most important asset to
manage, I would like to make the recommendation that it is more than
just one person. Brand Champions should include the CEO, COO, CFO, CMO
and the Director of HR. We call it the brand executive team.
The brand executive team is responsible for building brand capital.
The great companies that process brand charisma have the ability to
inspire and attract consumers with such passion that they aggressively
seek the brand out. A brand with charisma has the following qualities
that speak to consumers’ need for “something more” from
the marketplace…
• Embody a compelling sense of leadership through integrity, authenticity,
and a tangible vision of the future
• Display momentum, imagination and self-assurance
• Are lightning rods for a positive experience
• Care about consumers more than they care about themselves
• Recognize when the consumer’s mindset or lifestyle changes
and immediately lets the consumer know it knows
Only a few brands in the travel industry have achieved brand charisma.
This is why it is so important to have a brand executive team who can
integrate, share, promote, measure and “champion” the brand.
It is a total team effort. Every employee is involved. One unified brand
voice.
Travel companies that recognize the importance of effective and integrated
brand management will be able to distance themselves from their competition
and increase their brand capital. If 2005 turns out as positive as we
think; this will be the year to maximize your brand capital for the
future. A strong brand can fortress your company against volatility.
YPB&R has a comprehensive branding practice which helps travel companies
create new brands and reinvigorate existing ones. We offer a proprietary
brand identity process, coupled with exceptional talent and experience.
If you need help in creating brand charisma and building your brand
capital, please give me a call at 407-875-1111, gary_sain@ypbr.com.
We wish you much success in 2005. It should be a great year for all
of us! 
YPB&R is a leading travel marketing specialist
that delivers marketing payback through the creation of compelling,
integrated communications, including everything interactive. For more
information, please contact Gary C. Sain at gary_sain@ypbr.com
or 407-875-1111.
©Yesawich,
Pepperdine, Brown & Russell. 2005. All rights reserved.
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