The value of a brand promise

Perspectives

The value of a brand promise

Marketers know a strong brand can hold immense power. When delivered correctly, a brand promise can have a significant impact on business results and help unlock customer loyalty. In the hotel business, creating a positive guest experience is often the most clear-cut way to create loyalty. But underlying this customer experience, knowing what your brand means to both your customers and employees can determine whether hoteliers thrive or simply survive—showing just how powerful a brand can truly be.

The impact of a brand promise on hotel guest loyalty

Recent findings show that hotel guest loyalty and commitment are strongest when a brand offers a differentiated brand promise and consistently delivers on that promise by providing an outstanding experience.1 A clearly defined and credible brand promise can help generate rebooking, ancillary spending, and brand advocacy. In fact, one study found that—regardless of guest experience—a 1 percent increase in a hotel’s brand promise (as defined by strength of reputation) can improve a guest’s intent to recommend the hotel by more than 3 percent and intent to rebook by more than 4.5 percent.2

The same study found that guests who experience a problem at a hotel were twice as likely to return to a hotel viewed as “high prestige” versus “low prestige” after experiencing a problem during their stay. So, when guests have a negative experience during a visit, having a strong brand promise to fall back on can help a hotel maintain customer loyalty.3

Executing on your brand promise

The impact of a brand promise is clear for hotels—so how can marketers capitalize on these lessons to make brands stronger?

Developing a differentiated brand promise is only the first step in the journey toward building customer loyalty. The second step is to begin capitalizing on your brand promise through measuring, monitoring, and ongoing training.

  • Measure how well your brand promise resonates among both employees and customers.
  • Monitor how well you deliver on your brand promise and create standards that operationalize the brand promise.
  • Train employees and create internal operations to deliver your brand promise consistently to reinforce the message behind your brand.

Read the full article: "The value of a brand promise.”

Published on March 21, 2016.

Sources:

1, 2, 3 The 2015 North America hotel guest satisfaction index study is based on responses gathered between June 2014 and May 2015 from more than 62,000 guests in Canada and the United States who stayed at a hotel in North America between May 2014 and May 2015. The study covers eight hotel segments: luxury, upper upscale, upscale, upper midscale, midscale, economy/budget, upper extended stay, and extended stay, and ranks more than 70 hotel brands. See more at http://www.jdpower.com/press-releases/2015-north-america-hotel-guest-satisfaction-index-study.

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