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1 Brand Reputation How to make it, how to break it 24th June 2015 BMA House, London #bdrcbrandconf

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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

[email protected]

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 (%)

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

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

[email protected]

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

E: [email protected]

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

[email protected]

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

[email protected]

uk.linkedin.com/in/ianwright

Thank you

22 © BDRC Continental

Brand Reputation – How to make it, how to break it. 24th June 2015 RESTRICTED

About BDRC Group

BDRC Continental

London

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Beijing

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Sydney

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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

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& 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,

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completely in tune with the specifics of a sector, but also benefits from the experience of experts from broader business contexts.

23 © BDRC Continental

Brand Reputation – How to make it, how to break it. 24th June 2015

To get back in touch…

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+44 (0)207 400 1000

[email protected]

www.bdrc-continental.com