1 Brand Reputation How to make it, how to break it 24th June 2015 BMA House, London #bdrcbrandconf
1
Brand Reputation How to make it, how to break it
24th June 2015
BMA House, London #bdrcbrandconf
2
Welcome 09:30
Measuring Brands & Reputation 09:40
Social Media 10:20
Coffee Break 10:45
Crisis Management 11:10
Mind the gap 11:40
Ask the Experts 12:10
Lunch 13:00
Brand Reputation How to make it, how to break it
James Bland
Director, Hotels & Hospitality
BDRC Continental
3 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 RESTRICTED
Process
Physical
Evidence
People
Marketing
Mix
Promotion
Place
Price
Product
What makes a brand?
How can we measure one
Value
Size & Scale
Coverage
Price (Premium)
Communications
Quality
Service Skills & Efficiencies
Attributes
Awareness
Relationships, Loyalty,
Values, Preference etc
4 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 CONFIDENTIAL
How else can we measure brands?
Matrices
Indices
Ladders
Spatial
Analysis/Mapping
Heatmaps
Scorecards
• Composite measure
• Common Base
• Swift, easy comparisons
• Good for trend analysis/YOY
and rankings
• Shows progression and journey
• Excellent for target setting
• Can also be used for trends
• Need a large starting point
• Analyse two dimensions quickly
• Point in time snapshot
• Comparison of ‘status quo’
• Great for clarifying priorities
• Analyse multiple data points
• Ideal for measuring
performance vs targets
• Easy to share and understand
• Visual and engaging
• Inclusive
• Perfect for flagging up problems not
immediately visible in large datasets
• Complex…
• …but powerful
• Shows relationships between many
different concepts
5 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 CONFIDENTIAL
Strength is relative. Priorities evolve!
• Strong brands aren’t all the same!
• Determinants of strength vary at different life cycle stages
• Your focus should shift as your brand evolves, so establishing where you are is as
important as understanding how you’re doing
6 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 CONFIDENTIAL
Strength is relative. Priorities evolve! Sale
s
Time
Introduction Growth Maturity Decline
Value
Skills
Quality
Service
Attributes
Relationships
Values
Size & Scale
Coverage & Reach
Communications
Awareness
Value
Skills
Quality
Service
Attributes
Relationships
Values
Price (Premium)
Efficiencies
Size & Scale
Coverage & Reach
Communications
Awareness
Value
Skills
Quality
Service
Attributes
Relationships
Values
Price (Premium)
Efficiencies
Size & Scale
Coverage & Reach
Communications
Awareness
Value
Skills
Quality
Service
Attributes
Relationships
Values
7 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 CONFIDENTIAL
But I’m not a hotel…
• The life-cycle principle is not unique to hotels
• In fact, industry life cycle is another dimension to consider
• In mature industries, even new brands will need to be more defensive to respond to
emerging threats and disruptors
5760 59
6367
7377 78
84
94 95 94.8
100102
106109 109
107104
106 107 106108
106
35 3633
38 3943
45 4549
55 5452 51
48
5357
59 5956
58 58
53 54 54
2224
26 2528
3032 33
3539
4143
49
54
53 5250
48 48 48 4953 54
52
0
20
40
60
80
100
120
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total
Business
Leisure
8 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 RESTRICTED
Process
Physical
Evidence
People
Marketing
Mix
Promotion
Place
Price
Product
What makes a brand?
How can we measure one
Value
Size & Scale
Coverage
Price (Premium)
Communications
Quality
Service Skills & Efficiencies
Attributes
Awareness
Relationships, Loyalty,
Values, Preference etc
Reputation
9 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 RESTRICTED
Reputation
What makes a brand?
How can we measure one
Product Service Behaviours
Values Stories People
Quality Governance Relations
IP Financial Perf. CSR
Investors Customers Suppliers
Employees Regulators Communities
Is a function of our actions (and
perceptions of our actions) in these
categories…
…with these audiences.
10 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015
What about Reputation?
A BRAND is the sum of perceptions, held primarily by a company’s
current and potential customers or clients, about a company’s specific
product, service, or line of products or services.
REPUTATION is the sum of perceptions about a company’s corporate
actions held by the public in the areas where the company
operates.
http://www.hkstrategies.com/insights/executive-view-difference-between-brand-and-reputation Peter Zandan, Ph.D. Global Vice Chairman, Hill + Knowlton Strategies
Michael Lustina, Ph.D., US Director of Research, Hill+Knowlton Strategies
11 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015
Brand Message
Jennie Grimes, VP of brand and demand marketing, NetApp
http://www.forbes.com/sites/netapp/2014/06/23/brand-ownership/
12 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015
When a #hashtag becomes a #bashtag
Finish the sentence: “I shop at Waitrose because ________.” #WaitroseReasons
…I hate poor people
#WaitroseReasons
Twitter campaign,
January 2012
And these are some of the replies….
…I once heard a 6yo boy say
“Daddy, does Lego have a “T”
at the end, like Merlot?” …their colour scheme
matches my Range Rover
…Tabitha and Tarquin only eat
phoenix eggs that have been
collected by wizards who share their
values
…their swan burgers are good
enough for the Queen …I WILL NOT stand next to
the scumbags at M&S
13 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015
Brand is becoming less important, shifting control even
further from our grasp…
42 37
43 47
36 39
35 32
All European Leisure
Travellers
Babyboomers Generation X Generation Y
Review Sites Hotel Brands
When selecting a hotel for leisure, how important is each of the following? (% rating 8+/10)
Source: BDRC Continental Hotel Guest Surveys 2014
14 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 CONFIDENTIAL
Reputational risk
Reputation-Reality Gap
https://hbr.org/2007/02/reputation-and-its-risks
• Whenever these two are misaligned, there is the potential for risk
• If the reality is worse than the reputation, there is the constant risk of being caught out
• If the reputation is worse than the reality, there is the risk of other work and effort being
undermined
• The bolder the claim, the higher the risk. But there is also risk in doing nothing!
15 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 CONFIDENTIAL
Reputational risk
Reputation-Reality Gap Change in External Beliefs
or Perceptions
https://hbr.org/2007/02/reputation-and-its-risks
• This can be a gradual erosion over time, or a instantaneous shock that occurs
• Organisations often implement Business Continuity plans without thinking about Reputation
Management responses…. More on that later
16 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 CONFIDENTIAL
Reputational risk
Reputation-Reality Gap Change in External Beliefs
or Perceptions
Quality of Internal
Communication
https://hbr.org/2007/02/reputation-and-its-risks
• The classic “left-hand”, “right-hand” syndrome
• If reputation doesn’t “belong” to any one individual or department/team, this risk increases
17 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 CONFIDENTIAL
Summary / Conclusions
• Brand Strength can be measured in many ways – choose the right tool for the job
• Brand Strength is influenced by different things at different stages in a brand’s life cycle
• New and Emerging brands need to focus on the building blocks
• Awareness is then the growth engine. It’s key to unlocking all the great things about your
brand
• Mature brands mostly have to defend their position, but can attack on communications to
drive share, and efficiencies / price premium to drive profits
• Reputation is the sum of the sum of perceptions about a company’s corporate actions held by
the public in the areas where the company operates
• The message is being gradually prised from our grasp, but there’s still plenty we can influence
18 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 RESTRICTED
About BDRC Group
BDRC Continental
London
BDRC China
Beijing
BDRC Australia
Sydney
BDRC Asia
Singapore
& Indonesia
BDRC Americas
Washington DC
Launched in London in 1991, BDRC Group has grown into a renowned international
consumer insight consultancy, conducting research in over 60 countries and turning over
more than USD 35,000,000 per annum.
The group’s businesses cover the full range of research services from data collection
through to consultancy. BDRC Group, based in prime central global locations, works across
a range of vertical business sectors. Common to all are seven key challenges where our
insight helps inform better decisions:
BDRC Group’s Research and fieldwork support services
Markets opportunities
& dynamics
Customers experience
& loyalty
Brands communication
& strategy
Products development
&pricing
Channels development
& innovation
Employees engagement
& perceptions
Compliance and
regulation
BDRC Group offers the full range of research agency services but also provides advice and guidance as to how to interpret, harness and act upon research data.
Two research divisions (Commercial and On-the-Move) contain teams of specialist professionals in Hotels & Hospitality, Culture, Leisure & Tourism, Transportation,
Public Sector, Media, Financial Services and General B2B. Combining cross-sector expertise with market specialism allows us to provide an approach that is not only
completely in tune with the specifics of a sector, but also benefits from the experience of experts from broader business contexts.
19 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015
To get back in touch…
@BDRCHotels @james_e_bland
+44 (0)207 400 1000
James Bland Director, Hotels & Hospitality Global Head of Customer Experience (Hotels & Hospitality)
www.bdrc-continental.com
1
Brand Reputation How to make it, how to break it
24th June 2015
BMA House, London #bdrcbrandconf
2
Welcome 09:30
Measuring Brands & Reputation 09:40
Social Media 10:20
Coffee Break 10:45
Crisis Management 11:10
Mind the gap 11:40
Ask the Experts 12:10
Lunch 13:00
Brand Reputation How to make it, how to break it
Jon Young &
Tim Sander
BDRC Continental
Introducing BDRC’s new Social
Media Report
Social Media Impact
Brand Reputation Presentation
4
What we did…
…about their social media
interactions in the last 6 months…
Airlines
Online Travel
Agents
Hotels
Car Rental
Companies
Railway
Companies
Airports
Coffee
Shops
Visitor
Attractions
…with brands across eight
leisure industry sectors.
We surveyed a nationally
representative sample …
n=1,007
5
What we discovered…
How effective each sector is at converting social media interactions to brand use
3
What users think about the leisure sector’s social media activity 4
The different roles of social media platforms 2
Why and how leisure users interact on social media 1
How consumers’ needs change according to sector type 6
The key drivers of converting interactions to use 5
Behaviour by age group 7
Our report
Key sector and brand analysis
Headline findings
7
How big is the leisure social media market?
46% of Britons interacted with a leisure
organisation on social media in the
last 6 months
!
8
41% 24% 10% 25%
Why do users interact with leisure brands on social media?
LEARNERS
Interact to learn about a
brand and its products or
about something related
to the brand and its
products
WATCHERS
Interact to follow a brand’s
information updates or
enjoy / engage in a
brand’s social media
campaigns
CONNECTORS
Interact to connect to a
cause or subject that is
important to them
PROACTIVES
Interact to ask questions,
express dissatisfaction,
endorse brand, share
brand experience,/post
enter a competition or get
a discount
Q4b What was the reason for your most recent interaction?
9
How does this change across social media platforms?
47 38 37
30 31
16 16
23
20 27
33
17 40
26
6
10
15 14
17
24
26
23 32
21 22
35
20
32
Facebook YouTube Twitter Instagram LinkedIn Pintrest Tumblr
Segments by each channel used for most recent interaction (%)
Q3 On which of the following social media sites was your most recent interaction with…
Q4b What was the reason for your most recent interaction?
LEARNERS
WATCHERS
CONNECTORS
PROACTIVES
10
Do social media interactions convert to brand use and brand satisfaction?
5
26
48
22
A lot of influence
used product directly as a
result of social media posts
Some influence
social media interaction was
one of many usage influencers
No influence
No influence
Rather discouraged me from
using
70
% a lot / some influence
25
51
24
A lot of influence on
satisfaction
Some influence on
satisfaction
No influence on
satisfaction
% a lot / some influence on
satisfaction
75
Brand use Satisfaction
Q6/7. How much influence did this interaction with <insert brand> have in encouraging you to use their product/have
on your satisfaction with them?
Influence on brand use and satisfaction (%)
11
Are we as annoying as our ‘friends’?
12
We are not your ‘friends’ (thankfully)
Q10. How would you describe <insert brand’s posts?
13
What key metrics drive brand use and satisfaction?
Q6. How much influence did this interaction with <insert brand> have in encouraging you to use their product?
Key influencers of brand use. Key driver analysis map
They provide useful information
They provide interesting
information
They inspire me
They are entertaining
They annoy me
They are boring
They aren’t relevant to me
They are too sales-based
They are too frequent
A lot of influence
Some influence
No influence
Negative influence
Primary
importance
Secondary
importance
Q5. how would you describe <insert brand’s posts?
14
46% of Britons
interacted with a
leisure
organisation on
social media
in last
6 months GEN Y (18-34)
GEN X (35-54)
BABY BOOMERS (55+)
66%
50%
34%
How does engagement differ by age group?
Our reports
Key sector and brand analysis
Headline findings
16
Which brands did we track?
Airlines
Online Travel
Agents
Hotels
Car Rental
Companies Railway
Companies
Airports
Coffee
Shops
Visitor
Attractions
17
46% of Britons
interacted with a
leisure
organisation on
social media
in last
6 months
The market picture…
18
Which sectors have the highest penetration?
29%
(13.7) 28%
(13.3) 27%
(12.8) 26%
(12.3) 25%
(11.9) 22%
(10.4)
16%
(7.6)
10%
(4.7)
Airlines
Online Travel
Agents Hotels
Car Rental
Companies Railway
Companies
Airports
Coffee
Shops
Visitor
Attractions
Sector penetration – (Millions of adults)
19
On average adults interacted with
6.5 leisure brands in the 6 months
prior to fieldwork
20
Which sectors are best at relationship building?
Based on interactions with brands from respective sector
Organisation I can
trust
41 Hotels
Make me feel good
30 Coffee
shops
Represent cause I’m
interested in Have similar values
to me
20 15 Car
rentals Car
rentals
21
What makes a good social media post?
Description of social media posts from brands in respective sector
They provide interesting
information
!
47 30
They inspire me
26 14
They are entertaining
29 16
They annoy me
9
They provide useful
information 54 32
Best and worst in class
22
Which sectors are best at generating satisfaction with their posts and at influencing product purchase?
A lot of influence Some influence
Visitor
Attractions 27 54 25 49 81 74
Airports 21 59 21 49 80 70
Online Travel
Agents 23 53 21 53 76 74
Railway
Companies 24 50 22 45 74 67
Airlines 22 50 20 51 72 71
Hotels
Coffee
Shops
18 51 20 45
28 42 21 42 70
69
63
65
27 58 26 57
Influence of interaction on
satisfaction with brand
Influence of interaction on
using / buying the brand
Car Rental
Companies 85 83
23
The brands that can be analysed further
Airlines
Online Travel
Agents
Hotels
Car Rental
Companies Railway
Companies
Airports
Coffee
Shops
Visitor
Attractions
24
And the overall top performer is…
Our reports
Key sector and brand analysis
Headline findings
26
The freemium report?
This report provides a commentary on Britons’ interactions with leisure organisations on social media.
It will provide you with insight on:
How effective your sector is at converting social media interactions to brand use 3
The key drivers of converting interactions to use 4
The different roles of social media platforms 2
Why and how leisure users interact on social media 1
The full report?
Our full report will provide you with much richer and deeper analysis including:
Key driver analysis to understand the drivers of use by sector 3
The performance of your organisation (if surveyed and robust enough base) 2
Brand ranking index, overall and by sector 1
You can purchase the full report for £975.
27 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 RESTRICTED
About BDRC Group
BDRC Continental
London
BDRC China
Beijing
BDRC Australia
Sydney
BDRC Asia
Singapore
& Indonesia
BDRC Americas
Washington DC
Launched in London in 1991, BDRC Group has grown into a renowned international
consumer insight consultancy, conducting research in over 60 countries and turning over
more than USD 35,000,000 per annum.
The group’s businesses cover the full range of research services from data collection
through to consultancy. BDRC Group, based in prime central global locations, works across
a range of vertical business sectors. Common to all are seven key challenges where our
insight helps inform better decisions:
BDRC Group’s Research and fieldwork support services
Markets opportunities
& dynamics
Customers experience
& loyalty
Brands communication
& strategy
Products development
&pricing
Channels development
& innovation
Employees engagement
& perceptions
Compliance and
regulation
BDRC Group offers the full range of research agency services but also provides advice and guidance as to how to interpret, harness and act upon research data.
Two research divisions (Commercial and On-the-Move) contain teams of specialist professionals in Hotels & Hospitality, Culture, Leisure & Tourism, Transportation,
Public Sector, Media, Financial Services and General B2B. Combining cross-sector expertise with market specialism allows us to provide an approach that is not only
completely in tune with the specifics of a sector, but also benefits from the experience of experts from broader business contexts.
28 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015
To get back in touch…
@BDRCContinental
+44 (0)207 400 1000
www.bdrc-continental.com
1
Brand Reputation How to make it, how to break it
24th June 2015
BMA House, London #bdrcbrandconf
2
Welcome 09:30
Measuring Brands & Reputation 09:45
Social Media 10:30
Coffee Break 10:50
Crisis Management 11:10
Mind the gap 11:40
Ask the Experts 12:10
Lunch 13:00
Brand Reputation How to make it, how to break it
Crisis Management
What happens when it all goes
wrong?
David Carter Head of Issues & Crisis
What happens when it all goes
wrong?
June 2015
THE CHANGING NATURE OF CRISIS
REVERSE
CONTROL
PARADIGM
NATURE
PREPARE
MANAGE
RECOVER
FINITE│FORESEEABLE UNFORESEEN │WILDFIRE
POTENTIAL
REACTIVE
TOOLKIT
SYSTEM │ INFRASTRUCTURE
STATEMENT CONVERSATION
WAIT LEARN
│ADAPT
YOUR TARGET AUDIENCE
A COMPELLING COMBINATION
NATURE OF CRISIS NATURE OF AUDIENCE
A PERFECT
STORM
Landmark moments
(Christmas / New Year /
weddings)
Landmark events
(crashes / faults / health
and safety issues) Otherwise rational people
predisposed to over-react
Expecting (and
demanding)
exceptional
Significant investment of
(personal) money and
time
OUR VIEW
We believe that a
resilient business
must also have a
resilient
reputation
REPUTATION RESILIENCE
BE PRE-EMPTIVE
BE PRESENT
BE PRACTICAL
BE PERSONAL
BE PATIENT
BE PRE-EMPTIVE
HAVE A RESPONSE SYSTEM IN PLACE
AGREE WHO
SHOULD BE ON
THE CORE
RESPONSE
TEAM
(INCL.
LEADERS /
DECISION
MAKERS)
ESTABLISH
OUT-OF-
HOURS
CONTACTS
AND MEETING
MECHANISMS
IDENTIFY
CHANNEL
OWNERS AND
ACCESS
DETAILS
(WEBSITE /
SOCIAL MEDIA)
MAINTAIN
RECORD OF
PREVIOUS
CHALLENGES,
RESPONSES
AND
OUTCOMES
MAINTAIN A LIST
OF YOUR
PRIORITY
STAKEHOLDERS
AND THEIR
CONTACTS
MANAGE CUSTOMER EXPECTATIONS
GENERAL DUE DILIGENCE
Clarify compensation / cancellation / delay / loss and
damage policies in advance
Direct to instant access online guidance, rather than
having customers queue to ask questions at difficult
moments
SPECIFIC PROVISIONS
Consider advice and gestures to compensate before
being asked
Personalise response - tell customers if you envisage
issues arising around their planned experience
THE STORY OF MR JETSETTER…
www.flyertalk.com
(This is also shows the
importance of being
PERSONAL, which we will
come back to later)
CREATE AND COLLATE POSITIVE STORIES
Encourage customers to review
positively (within reason)
Monitor and understand your footprint
across external review sites (often better
respected)
Take average scores and track progress
over months and years
Retain links to great examples:
- Customer service
- Above-and-beyond behaviour
- Etc.
HOMEPAGE OF TRIPADVISOR (23 JUNE 2015)
BE PRESENT
KNOW YOUR OWN LANDSCAPE
MARCH 2014
MARCH 2014
TIME IS ALWAYS OF THE ESSENCE…
“If you delay
communications until you
know everything, you will
never say anything”
THE CONVERSATION WILL HAPPEN WITH OR WITHOUT YOU
mailonline
One of the TOP FIVE most read news websites
GLOBALLY
BE PRACTICAL
TAKING ACTION – A TOUGH DECISION
“The only man who never makes mistakes is the
man who never does anything.”
Theodore Roosevelt
“In any moment of decision, the best thing you can do is
the right thing. The worst thing you can do is nothing.“
Theodore Roosevelt
CRISIS: WHERE ACTION CAN COUNT
GENERIC COMPONENTS OF A
MEDIA STATEMENT:
- Explanation
- Context
- Responsibility
- ACTION
HOTLINE: for those concerned that their loved ones may
have been involved in the crash
ALSO CLOSED: The Saw ride at Thorpe Park in Surrey and
the Dragon’s Fury and Rattlesnake rollercoasters at
Chessington World of Adventures
BE PERSONAL
WHY PERSONAL IS SO IMPORTANT
understanding
behaviour action
strategy relationship
management
BEST
PRACTICE
Behaviour + Action
Taking charge of the situation
Understanding + Behavior
Taking charge of the
Relationship
Action + Understanding
Taking charge of the Strategy
WHAT DOES IMPERSONAL LOOK LIKE?
https://www.youtube.
com/watch?v=ivOxiS
7dB9A
(Anne from
Watchdog and Eileen
from Pontins)
Telegraph, 7 May 2015
BE PATIENT
THE CRISIS LONG TAIL
Costa Concordia sank in 2012 with the loss of 32
lives
INDEPENDENT, MARCH 2015
DRIVING RECOVERY
EXTERNAL
• Demonstrate change to position yourself as a
learning and agile company
• Work to educate critics (media and social
influencers)
• Create fresh content to direct the news agenda
and drive down the online legacy of the issue
INTERNAL
• Evaluate communications and policy changes
required (if needed)
• Evaluate traditional media, social media, and
stakeholder responses
BE PATIENT
BE PERSONAL BE PRACTICAL
BE PRESENT
BE PRE-EMPTIVE
PREMIUM
crisis response
David Carter Director, Head of Issues and Crisis
Ogilvy Public Relations Worldwide
T: +44 (0) 20 7309 1002
M: + 44(0) 7980 621 912
35 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 RESTRICTED
About BDRC Group
BDRC Continental
London
BDRC China
Beijing
BDRC Australia
Sydney
BDRC Asia
Singapore
& Indonesia
BDRC Americas
Washington DC
Launched in London in 1991, BDRC Group has grown into a renowned international
consumer insight consultancy, conducting research in over 60 countries and turning over
more than USD 35,000,000 per annum.
The group’s businesses cover the full range of research services from data collection
through to consultancy. BDRC Group, based in prime central global locations, works across
a range of vertical business sectors. Common to all are seven key challenges where our
insight helps inform better decisions:
BDRC Group’s Research and fieldwork support services
Markets opportunities
& dynamics
Customers experience
& loyalty
Brands communication
& strategy
Products development
&pricing
Channels development
& innovation
Employees engagement
& perceptions
Compliance and
regulation
BDRC Group offers the full range of research agency services but also provides advice and guidance as to how to interpret, harness and act upon research data.
Two research divisions (Commercial and On-the-Move) contain teams of specialist professionals in Hotels & Hospitality, Culture, Leisure & Tourism, Transportation,
Public Sector, Media, Financial Services and General B2B. Combining cross-sector expertise with market specialism allows us to provide an approach that is not only
completely in tune with the specifics of a sector, but also benefits from the experience of experts from broader business contexts.
36 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015
To get back in touch…
@BDRCContinental
+44 (0)207 400 1000
www.bdrc-continental.com
1
Brand Reputation How to make it, how to break it
24th June 2015
BMA House, London #bdrcbrandconf
2
Welcome 09:30
Measuring Brands & Reputation 09:45
Social Media 10:30
Coffee Break 10:50
Crisis Management 11:10
Mind the gap 11:40
Ask the Experts 12:10
Lunch 13:00
Brand Reputation How to make it, how to break it
Mind the gap: exploring tensions
between transactional satisfaction
and longer term reputation
Ian Wright
Head of Insight
Daily Telegraph 01.01.15
The media’s view of rail travel Daily Mail 07.02.15
Metro 12.02.15
Daily Express 13.01.15
SO
CIA
L M
ED
IA
While TOC communication has a positive impact, negative perceptions are driven by the media rather than through passenger word of mouth
Q32. Where have you seen or heard anything about the railways (train services and companies) recently? Q33: On balance, would you describe everything you have heard or
read about the railways recently as generally positive or generally negative? Base: All respondents – 4000; All apart from saying none of the above or don’t know in Q32 – 2747
Sources of information about railways
TE
LE
VIS
ION
INT
ER
NE
T
NE
WS
PA
PE
RS
WO
M
RA
DIO
PO
ST
ER
S
(tra
in)
PO
ST
ER
S
(sta
tio
n)
EM
AIL
S
(fro
m T
OC
)
LE
AF
LE
TS
(sta
tio
n)
SO
CIA
L M
ED
IA
(TO
C)
LE
AF
LE
TS
(po
st)
Generally
positive
Generally
negative
Mixed
Traditional media Train Operating Company media New media and Word Of Mouth (WOM)
Chart shows description of overall positivity split
by those who have seen or heard each source of
information. Respondents may have seen more
than one source
Q32. Where have you seen or heard anything about the railways (train
services and companies) recently? Q33: On balance, would you describe
everything you have heard or read about the railways recently as generally
positive or generally negative?
Base: All respondents – 4000; All apart from saying none of the above or
don’t know in Q32 – 2747
Generally
positive
Generally
negative
Mixed
32% 28% 60%
37% 30% 75%
38% 16% 52%
48% 33% 48%
44% 23% 61%
33% 22% 74%
46% 42% 47%
45% 38% 45%
51% 43% 53%
45% 40% 56%
45% 41% 44%
TOC
media
New media
and WOM
Traditional
media
The best performing TOCs have a much higher incidence of TOC communications than coverage in traditional media
Top 10 TOCs Remainder overleaf…
TOC media 10 percentage
points lower than other
channels
TOC media 10 percentage
points higher than other
channels
L&SE
L&SE
L&SE
L&SE
Q32. Where have you seen or heard anything about the railways (train services and companies)
recently? Q33: On balance, would you describe everything you have heard or read about the
railways recently as generally positive or generally negative?
Base: All respondents – 4000; All apart from saying none of the above or don’t know in Q32 –
2747
Generally
positive
Generally
negative
Mixed
London & South East operators have higher traditional media coverage generally and lower scores overall, suggesting the two are linked
21% 23% 43%
39% 44% 48%
40% 35% 58%
41% 36% 34%
26% 42% 56%
57% 44% 49%
45% 33% 47%
56% 23% 31%
42% 38% 42%
52% 29% 34%
TOC
media
New media
and WOM
Traditional
media
TOC media 10 percentage
points lower than other
channels
TOC media 10 percentage
points higher than other
channels
Bottom 11 TOCs
L&SE
L&SE
L&SE
L&SE
L&SE
L&SE
The Rail Passenger Trust Survey aims to understand customer relationships with TOCs, specifically looking at how to generate trust
The National Rail Passenger Survey
(NRPS) provides a network-wide
picture of customers’ satisfaction with
rail travel
The focus is on key transactional
measures that provide important
information on functional performance
The Rail Passenger Trust survey looks
more closely at the relationship between
Train Operating Companies and
consumers
The focus is on relationship measures
that provide important information on
how to improve brand and industry
perceptions
National Rail Passenger Survey (NRPS)
Rail Passenger Trust Survey (RPTS)
The passengers’ view of rail travel
http://www.passengerfocus.org.uk/research/national-passenger-survey-introduction
•The National Rail Passenger Survey uses a self-completion
questionnaire handed out at stations and on trains to measure
satisfaction ‘in-the-moment’
The ‘recency’ effect and the relationship
Grand Central
Merseyrail
c2c
Virgin Trains
Chiltern Railways
East Coast
London Overground
ScotRail
First Hull Trains
East Midland Trains
[Top 10 TOCs only]
Satisfaction
(top two box) with...
Q12. To what extent are you satisfied or dissatisfied with this train company for the journey you make most often? Base:
All aware of a named TOC – 3751 Q28. Taking into account your experience at the stations you used and on the train,
to what extent were you satisfied or dissatisfied with your last journey by train? Base: All respondents who have
mentioned about last journey – 3900
A passengers view of key service sectors
Q4. Please rate your feelings towards each of the industries below, using a scale where 0 is “Extremely negative”
and 10 is “Extremely positive” and thinking overall about the range of businesses within each of these areas . Base:
All respondents – 4000
Q5. Why did you give a score of <score from Q4> for Rail industry?
How service brands build Trust
Defining the relationship
• A relationship . . . .
– Is extended over time
• run of the mill episodes remembered for 6 months - 1 year
• exceptional episodes may be remembered for much longer
– Has a history/is defined by key episodes
• emotive, memorable episodes when something very good or very bad happened between
those in the relationship – if bad, did the guilty party handle their mistake in the right way?
– Requires the provider to have, at least, an identity
• a name, a place where you can find them
• and preferably a personality – a public face, personal traits, emotional associations
– Has a halo effect on ongoing transactions
• current transactions interpreted more or less charitably depending on the goodwill or ill will
accumulated in the relationship
– Involves conversations
• dialogue between those in the relationship
• gossip between parties about shared events/experiences – WOM
The drivers of Trust
How the train operators perform (1/2)
How the train operators perform (2/2)
Reshaping passengers’ view of rail travel
Hygiene – Keep at it!
Low – build engagement to
encourage Trust to grow
Longer term ambition
• NRPS metrics (focussing on Service) are now built into DfT franchise awards
Should a Trust metric be incorporated too?
Good Product Product/service being
improved and innovated
Good quality product
that can be trusted not
to disappoint
Much of the rolling stock is old and needs renovating
Both rolling stock and on-board facilities are often unclean
However, acknowledgement of the investment some TOCs have
made
Facilities sometimes inadequate, particularly at smaller stations
Good value for
money
Not necessarily the
cheapest, but doesn’t
leave the customer
feeling short-changed
Increasing rail prices above inflation
Quality of the service not in line with increases in fares
Lack of rewards scheme/offers
Variation in pre booked vs. on the day tickets
Consistency &
predictability
Know what to expect
from the service, feel
reassuring
Unpredictable service
High expectation/incidence of delays
Huge service variability across TOCs
Effective
problem
resolution
Hassle free with a focus
on urgency
Customer always right
policy
Complicated complaints process, requiring effort
Compensation not regarded as adequate
Unclear who to complain to
Honesty &
transparency
Honest advice
Advice to help get the
best out of service
Transparent pricing
Lacks transparency across multiple touchpoints e.g. which ticket
to buy
Lack of honesty in various scenarios
- e.g. information about delays and alterations often illogical,
inaccurate or contradictory
How the railways compare? (1)
Visible choice Vast choice of providers and
options to switch/go elsewhere
Limited choice Particularly in terms of which TOC to use
Even when choice available it proves negative e.g.
overwhelming choice of tickets to purchase, often
impersonal ticket purchase
Staff
Excellence
Easily accessible and respond to
enquiries promptly and accurately
Visible staff across touchpoints
Information plentiful
Limited staff available for advice
Unwilling to talk to customers
Limited staff apology re delays, overcrowding – sense
of not caring
Lack of knowledge of who is responsible for decisions,
and who to complain to
Individual staff members can be the exception but this
lacks consistency
Going the extra
mile
Doing everything, and more, to
ensure the customer is happy
Often not getting the basics right, let alone going
above and beyond expectations
Personalisation/
feeling valued
Companies look out for individuals
to ensure they are happy
Not treated as an individual
Lack of personal nature hinders this
Limited attempt to personalise the product
NB varies by TOC
Feeling in
control
Given choice, feel in control Control lies with rail operator
Consistent
message
Consistent brand story across the
customer journey
Visible brand
Regularly hear about the brand
No communication
No brand story/message (NB exception of Virgin)
Confusing message about the railway
Unknown entity
How the railways compare? (2)
“Over five days, you’d be very lucky to
get ten journeys hassle free and on
time” (Commuter, 18-39, Doncaster) “It’s never clear what ticket
you should get, when I can
use it and what it will cost”
(Business/Leisure, 18-39,
Newport)
“You get on the train
and never see any
train staff for quite a
while and when you
do they only grunt for
your ticket”
(Business/Leisure,
40+, Manchester)
“It’s not so much that we
don’t have a voice, it’s just
there doesn’t seem to be
anyone listening”
(Business/Leisure, 18-39,
Newport)
“Sometimes ticket
inspectors can be
unnecessarily strict”
(Commuter, 40+,
London)
“They know we have no
choice but to use the
train so they don’t care
about us” (Commuter,
40+, London)
Relatively recent rolling stock, more technologically advanced on-train experience
A reliable service with greater punctuality than previous operators
Often aim to solve problems as they happen with limited fuss
A case apart
Consistent &
predictable
Staff
excellence
Personalisation/ treated
like individual
Going the
extra mile
Feeling
valued
Good product Effective problem
resolution
Brand
message
CU
ST
OM
ER
DIA
LO
GU
E
EM
OT
ION
AL
LY
EN
GA
GIN
G
PR
AC
TIC
AL
Across the board (even non-users/ irregular travellers) Virgin is held in high regard. It is believed to set the standard and
performs well against many of the characteristics of best in class brands. Even where there are negative experiences, it is still
believed that Virgin is doing something different and above and beyond other TOCs
Staff considered positive, friendly and helpful – genuinely wanting to make the experience better - opening first class to let people sit down when standard class is overcrowded, cleaning trains before boarding
Staff visible at stations and on trains (guards, catering staff etc)
Proactive in receiving customer feedback and listening to passengers
Communicate well with passengers and take responsibility, for example when reservation systems not working
profusely apologising over the tannoy to make passengers aware at each stop, acknowledging they have made a
mistake, and trying to reduce confusion
Believed to put the customer at the heart of decision making
Profits perceived to be invested to benefit the customers
Clear brand message – visible brand, consistent message across the wider Virgin brand. This enables
everyone to have a point of view regardless of level of experience
Ro
le in
bu
ildin
g tru
st
Virgin offers a consistent experience with strong staff performance, reinforced by other
experiences and the wider brand presence
Reshaping passengers’ views of rail travel Website: http://www.passengerfocus.org.uk
Report – Passengers’ relationship with the rail industry:
http://www.passengerfocus.org.uk/research/publications/passengers-relationship-with-the-rail-industry
@TransportFocus www.transportfocus.org.uk
uk.linkedin.com/in/ianwright
Thank you
22 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015 RESTRICTED
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23 © BDRC Continental
Brand Reputation – How to make it, how to break it. 24th June 2015
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