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2017 Trends Report PDF
2017 Trends Report PDF
Table of Contents
Preface: Richard Solomons 4
Executive Summary 6
Changing World 21
The Four Paradoxes
1. T
he Paradox of Separate but Connected: The New Definition of Connection 23
2. T
he Paradox of Abundant Rarity: The Changing Definition of Luxury 30
3. T
he Paradox of Seeking a Better Me and a Better We: Responsible Individualism 40
4. The Paradox of Do It Myself and Do It For Me In My Way: Rethinking Consumer Control 46
Six Best Practices for Addressing Paradoxes of the Age of I 52
Conclusion 58
Endnotes 60
This is IHG®’s fifth Trends Report. We are trade-off. Customers expect brands and With all the challenges today, these
once again pleased to share our insights businesses to optimise conflicting needs. new practices guide the development
into the changing world and provide best For short-term and long-term success, and implementation of highly relevant,
practices that help make business and single-minded solutions will not work. differentiated product and service brand
brands fit for the future. Creating brand Today’s customer is uncompromising. experiences. This is a key focus for IHG.
experiences for long-term profitable Consistent global brands must address The purpose of our business is to create
growth is at the core of all of the IHG Trends the consumer paradoxes of the Age Great Hotels Guests Love, through
Reports. Since 2013, we have examined of I: be locally relevant and personally providing True Hospitality to all.
developments such as the brand-business differentiating, delivering a compelling, This requires a dedication to real service;
transition from transactions to branded valuable, multi-dimensional idea. genuine compassion, thoughtfulness
relationships, and we have explored how and the human touch. These are the
Working with our long-time partner,
to make membership meaningful at a characteristics we know are important to
Arcature, synthesising IHG information
time when loyalty is becoming ever more meeting modern day consumer needs.
as well as a variety of external, third party
important to many industries. We have
discussed the importance of trust in
sources, we have identified the paradoxes For businesses, creating these Brands play integral roles by offering
shaping our world. In this Report, extraordinary brand experiences
strengthening these branded relationships.
we explore four that represent major strengthens customer relationships and compelling paradox promises of
This year’s 2017 IHG Trends Report,
The Uncompromising Customer:
opportunities with important business,
brand and financial implications.
grows brand loyalty, leading to strong,
profitable, high quality revenue growth.
brand experiences that optimise
Addressing the Paradoxes of the Age of I
focuses on the brand-business strategy of
Brands play integral roles by offering contrary needs. Resolving conflicting
compelling paradox promises of
addressing contradictory customer needs
experiences that optimise contrary needs.
customer needs with preferred brand
in order to create compelling, trustworthy,
customer-driven branded products and
Resolving these conflicting customer
needs requires businesses to adopt new
experiences requires new behaviours.
services. Customers today do not want
behaviours, The Six Best Practices for
either/or solutions: they want the best of
Addressing Paradoxes. Richard Solomons
both worlds where the best trade-off is no
Chief Executive Officer,
InterContinental® Hotels Group
• Technology, digitisation and the 24/7 • Today our attention spans are shorter. • Also, new office spaces offer places
existence have changed how we relate to The result is that brands must for people to work individually together
family, friends, strangers, automobiles, meaningfully connect in mere seconds. with others just like them, reflecting the
appliances, our homes, medicine and Generation Z wants information as individuality and inclusiveness of the
entertainment. More than contacting, quickly as possible yet they lose interest Age of I. “We Work” spaces are an
communicating, and collecting “friends”, quicker than other cohorts. Brands must example. Additionally, research shows
connecting means integrating with affect people who connect and disconnect that Millennials believe work is a place
individuality. In The Age of I, connection in the blink of an eye. for career-building connections, more
means bonding together with others than a place to build a career 3.
• People have sacrificed human
and brands to augment a community
connections for digital dimensions. • Age generates connection paradoxes.
while at the same time communicating
We want both: the optimisation of human Cohorts respond differently to how,
uniqueness of self.
touchable and conveniently clickable. when, why, and where to connect.
• The Paradox of Separate but Brands (organisations) need to juggle
• Implicit in the new definition of
Connected also reflects our need for conflicting connection needs.
connection is that social networking
the optimisation of connecting and For example, Gen Z appreciate brand
is no longer a channel strategy or a
disconnecting: individuals seeking sharing for connections but want
communications tool: it is a way of life,
constant belonging with people, personal safeguards, while Boomers are
a way of having individual freedom with
brands, places and things while seeking sceptical of brand sharing but participate
personal interdependence within the
personal asylum from intrusive alerts. because they want brands to know them.
network. Social networking is today’s
Always on, we are in contact at all times,
evolution of community – technology • The Kinship Economy is defined
linked in the flurry of the never-ending
makes it easier for us to connect with by the business evolution of brand
fast news flash keeping us up-to-date.
those who share our interests. experiences based on transactions to
We connect with the environment, with
those based on relationships, changing
local cultures, and with products and • The new meaning of connection creates
attitudes from feeling disconnected,
services enmeshing us in the world, yet paradoxes in the way we work.
to feeling connected, to wanting to feel
individually, we want time for solace, For example, I am part of a business
interconnected. Brands are credible
silence, and solitude. We face the brand and I am my own business.
interconnectors with customers,
paradox of both constant up time and also The on-demand economy connects
prospects, loyalists, and membership
the need for regular down time. The need unified branded work communities of
communities. People want a feeling
for down time in a constant uptime world individuals who operate as independent
of Meaningful Membership in an
is labelled as Digital Detox by Bloomberg businesses: an untethered force of
interconnected community that also
BusinessWeek 2. individuals integrating into organisations
respects their individuality.
on a flexible, personal basis creating a
• Constant connection and sharing
brand experience of unity with diversity.
create databases that erode privacy.
Disconnecting would bring back privacy
but at the sake of being connected.
• In The Age of I, luxury is no longer • Privacy is a vanishing luxury; so providing Boutique is the fastest growing segment in the hotel
something scarce, expensive and “secure privacy with personalisation” industry. This growing demand for boutique hotel
available only to the lucky few. Luxury is one way to deliver a luxurious brand experiences means that these kinds of hotels need to be
means different things to different experience. Privacy has become a available in more places and attainable by more people,
people in different situations. Luxury is valuable asset. but at the same time, offer consistent, unique luxurious
a multi-dimensional concept reflecting experiences that guests have come to expect from boutique
• Brands providing a feeling of relaxation, hotel brands.
multiple conflicting needs and desires.
restoration, and rejuvenation deliver
Luxury can be the most premium, most Boutique hotels by their very nature are distinct properties
luxury experiences. Yet we live in a
exclusive, elusive offering for a small available only in one location in the same way, making
techno-world. Comforting technology
group of wealthy people. Or, luxury is an these scarce luxuries – yet the luxury experience remains
puts our minds at ease.
offering maximising both scarcity and consistent across all properties.
availability. In other words, the potential • Time is a luxury. A paradox of luxury time
profitable paradox challenge will be a is the maximisation of desire and delay: With 63 hotels across the US, at Kimpton Hotels &
luxury brand that epitomises “abundant Restaurants, new hotels start with a blank slate and
instantly satisfying desire while building
rarity.”4 Globalisation hastens this luxury fresh perspective when it comes to design. The brand
the anticipation (and waiting-list status)
paradox: being available in more places also represents decades of experience marrying historic
of delay.
where more people can experience buildings with modern interpretations, reflecting yet another
• Today, we can experience luxury paradox: old and new. These are hotels that cannot be
luxury, makes it less rare.
without having to own the luxury. replicated given their unique architecture and storied pasts.
• Demographics generate luxury Luxury experiences are available for Coupled with Kimpton’s heart-centred culture of care, luxury
paradoxes. For example, Gen Z, the hire, from yachts, gowns and cars, to is reimagined with an inclusive, not exclusive approach.
generation following Millennials, define homes and villas. Access-based luxury Just as no two neighbourhoods are alike, no two Hotel
luxury as products and services that demonstrates how important the total Indigo properties are alike. Of over 70 properties worldwide,
anyone can access and that highlight brand experience is relative to actually they are each designed to reflect the local culture, individual
one’s individuality. Truly authentic, purchasing and owning the luxury items. character and history of the surrounding area, close to the
original, crafted products and services shopping, local restaurants, museums, art galleries and
are available luxuries. • Luxury and prestige are different,
great music that makes each neighbourhood distinct.
although not mutually exclusive.
Each neighbourhood has its own special markers and
• Today, giving to others is considered A prestige brand has widely recognised
traits reflected in its Hotel Indigo, but all Hotel Indigos
a luxury.5 Giving helps others, while prominence, perceived worth and/ are integrated by the connectivity of the brand’s promise.
transforming the giver. For example, or importance, expressing money and
Carnival Cruises created a luxury power. A luxury brand has extravagance,
vacation category they call “social sensuousness, and great comfort.
impact travel” where customers help Prestige means, “I am important.”
to transform the areas of their ports Luxury means, “I feel indulgent.”
of call. The cruise line thinks of this A Patek Philippe watch is prestigious;
as mobilising and educating their an Omega watch is luxury.
travellers for the better good.6
The IHG Foundation is an independent charity, launched by To support emergency relief efforts, the IHG Foundation made
• A Better Me and A Better We is a new • Better Me and Better We has implications IHG in February 2016. It focuses on four key areas – helping donations to the International Red Cross and International Red
dimension where people seek personal, for corporate brands. Corporations have communities to develop skills in hospitality, providing support Crescent Societies.
self-improvement while seeking public, the opportunity to augment credibility, for those impacted by disasters, facilitating local community
Over 400 aid workers from the Italian Red Cross were sent
civic or global improvement. They want integrity, and responsibility by leading in investment and protecting the environment.
with emergency vehicles to the area immediately after the
self-satisfaction and selflessness. being good by doing good. This accrues
The IHG Foundation gives IHG colleagues and guests quake. Mobile kitchens were set up for those forced to leave
A Better Me and A Better We is the Trust Capital.
the opportunity to actively participate in giving back to their homes, and the Italian Red Cross team were on hand to
outcome of Responsible Individualism
the local community. It allows them to take responsibility support victims.
where individuals seek opportunities
for their own behaviours, while also taking responsibility
to take responsibility for their own for the impact of their behaviours on others – to seek
behaviours, while taking responsibility personal, self-improvement while also seeking public,
for the impact of their behaviours on civic or global improvement.
others. Responsible Individualism is
not only how we behave as individuals For example, IHG® Rewards Club loyalty members have the
but also how we behave within a social option to donate their points to the IHG Foundation via the
context that has social meaning: good online redemption catalogue and are kept up to date with
for me while good for you. This impacts stories and case studies from the charity, so they can see how
Corporate Social Responsibility as well. their contribution has truly made a difference. By supporting
IHG Foundation projects across the globe, IHG Rewards Club
• There are workplace and workforce members are doing their part to make local communities
implications as data shows that employees better places to be for all.
who genuinely feel connected to the
In 2016 over 120,000 colleagues from IHG hotels and corporate
business and the brand in terms of
offices worldwide joined in on a week of global awareness
happiness perform better as does the
and fundraising activities in aid of the IHG Foundation.
organisation: better brand, better business They were encouraged to pledge and take part in as many
and better me.7 As part of corporate different activities as they could outside of their daily routines.
meaningful membership, internal The activities raised more than $350,000 for the IHG Foundation.
marketing must incorporate employee
wellness (happiness) with all employee Disaster Relief
process building engagements. Good for Through the funds raised by IHG guests and colleagues, when
the individual and good for the group. disaster strikes, the IHG Foundation works with humanitarian
agencies around the world to help people get back on their feet
• Age makes a difference: IHG identified and ensure they are better prepared for future disasters.
the Expansive Mid-lifer in the 2013 IHG
Trends Report as older people who For example, in August 2016, a 6.2 magnitude earthquake hit
the central region of Italy. More than 260 people were killed,
have an appetite for travelling well
and over 400 injured. The villages of Accumoli and Arquata
in the world while enhancing their
del Tronto were severely destructed following the quake,
personal well-being. Gen Z desires
and in Amatrice, three quarters of the town were completely
human engagement yet equates
destroyed, with more than 180 people killed.
improved self-betterment with digital
social media, as “followers” provide
validation of self-worth. IHG® Foundation
14 Executive Summary 15
1 2 3 4 5 6
Aim for Integration Use Needs-driven, Occasion-based Communicate Manage the Brand’s Develop Ambidextrous Address the Paradox
Rather than Balance Segmentation for Superior with Conversation Multi-Dimensionality Brand-Business Teams of Brand Control
Business Management
In a world of paradoxes, aiming for Needs-driven, occasion-based, Brand experiences are built on In the paradoxical world of brand Paradox promise solutions and Who controls the brand? Some say that
balance will not foster profitable success. segmentation is not a mere marketing tool, relationships with customers who feel communities and co-creation, the idea of management require a new way of business does not own the brand, but
Balance means viewing paradox promises but a strategic brand-business practice connected to each other while expressing owning a single-minded, distilled word thinking about the brand, its experience customers own the brand. The external
as constant sum contests of conflicting that if properly conducted helps define the who they are as individuals. In the Age of in the customer’s mind worldwide is an and the business ramifications. Create world of peer testimony, news, word-of-
benefits: 50% of one thing and 50% of brand-business landscape for enduring I, the lost art of conversation is a luxury. out-of-date business idea. In The Age of I, ambidextrous brand-business teams with mouth, and ratings websites controls the
another. The result is that neither benefit profitable growth. It is a brand-business Conversation is collaborative: it is an where sharing and engagement within a divergent thinkers who can strategise brand. This is the new paradox of brand
is optimised. This is not today’s reality. necessity helping identify the conflicting engaging, connecting, channel-agnostic, branded experience community are critical, and act unified on behalf of the brand. control: is brand control in the hands of the
Integration means making a better, new needs that must be addressed in order interactive and integrative force. It can distilling a brand into a single thought is a Each member has individual strengths, business or is it in the hands of the external
whole from the combination of two or to deliver an effective paradox promise. be vocal or digital. For those who need formula for failure. The logic of the paradox talents, and passions. Yet, the team world? The answer is both. Business must
more entities. It means moving from Recognise that people’s needs change the human touch, a human voice can be promise means that a brand is not merely a can work in an integrated manner. not give up control of the brand to the
promising a compromise to delivering the based on the occasion. highly involving. For those who prefer simple idea or word: a brand is a complex, An ambidextrous brand-business team external world. Yet, the external world does
best of both. Promising and delivering digital dialogue, text messaging can be multi-dimensional idea that includes turns the uniqueness of the team members impact and influence the brand reputation
satisfying solutions for customers that appealing and absorbing. Conversation is relevant, differentiating features, functional, into cohesive, unified initiatives for brand and perceived trust.
integrate the best of both is a winning, also about listening: it is a chance to hear emotional and social benefits as well as a success. Brands benefit from both lateral
commercial formula. what someone else has to say. Listening distinctive brand character. No single idea and linear thinkers. HR has a key role
builds trust. Within the brand experience, can possibly relate a standardised brand to play. The creative friction that exists
conversation can be turned into commerce message to every customer that is relevant when pairing people who think differently
if managed properly. Understand the at the right time for the right reasons. generates original ideas. The paradox of
consumer’s communication needs, then A compelling brand experience must genuine creative thought and disciplined
listen and use the brand experience to engage its members with the right thinking produces breakthrough strategies
make it meaningful. combination of elements not a simplistic, and tactics.
over-condensed singularity.
18 Executive Summary Executive Summary 19
Conclusion
YOUR RATE BY IHG® REWARDS CLUB –
ADDRESSING THE PARADOX OF BRAND CONTROL The Paradoxes of the Age of I
In the Age of I, we live in the paradoxical As a consumer-driven company, IHG goes directly to its
world where we seek inclusion in a loyalty members to ask what they want most from IHG
meaningful group and at the same Rewards Club, and uses these insights to continue evolving
time want to protect and express our the programme. Thus, allowing consumers to influence the
individuality. It is a transformative time development of the brand, while still maintaining control
– short-term and long-term – where and ensuring IHG Rewards Club continues to provide a
the strongest brands will promise and superior and personalised experience for its millions of
deliver the “best of both” when addressing guests around the world.
conflicting customer needs. Addressing In May 2016, IHG introduced Your Rate by IHG Rewards Club
a trade-off by compromising important giving members access to preferential rates when they book
elements of a brand experience in return direct. This was supported by extensive consumer research,
for gaining other equally important which showed that IHG Rewards Club members want to
elements, is not the path to profitable feel that they belong to a ‘special club’ with preferred
growth. Brands that succeed do not pricing for members.
concede. People desire the duality in
Consumer insight also revealed the importance to
a relevant, differentiated, integrated
members of ‘recognition’ as individuals. In response,
brand experience. In our new, fast-paced,
a new, integrated Customer Relationship Management
24/7 Age of I culture of individuality and
(CRM) System enables hotels to respond to members’
inclusiveness, people want brands to
individual preferences and offer services and experiences
optimise not compromise. that are personally relevant to them. From recognising stay
The goal of business is to satisfy customer preferences such as room location or pillow type, to tailored
needs profitably. By creating solutions for booking options and relevant post-stay offers.
contradictory desires – paradox promises
define brand experiences leading to brand
preference and loyalty.
20 Introduction 21
Introduction
Individualism: Seeking a Better provides concessions between desired perceived brand value of the company’s places where they feel they can Social media connections work but
many are not actually real: the sharing
Me and a Better We
needs, treating solutions as constant brands generates satisfaction leading to express their individuality.10 is virtually genuine. Connections have
sum contests: 50% of one thing and 50% brand loyalty, which in turn increases the
of another. More of one desire means perceived reputation of the corporate brand9 evolved from voice to virtual, from human
4. The Paradox of Do It Myself accepting less of another. Integration – a virtuous circle. Addressing conflicting touchable to digitally clickable. And, now
and Do It For Me In My Way: makes a better, new whole from the needs is a win-win situation for customers people want both.
Rethinking Consumer Control combination of two or more entities. It and brands. Creating extraordinary trusted
means moving from promising the best brand experiences delivering valued,
compromise to delivering the best of both, satisfactory paradox promises, leads to
the paradox promise. high quality revenue growth.
24 1. The Paradox of Separate but Connected 25
Light-switch Linkage: On-Off, people seek antidotes to “alerts” that Unified Workplace of
interrupt and distract from real life. IHG® NEW IN-HOTEL DESIGNS – UNIFIED
Up-Down People feel the loss of time to reflect,
Connected Individuals WORKPLACES OF CONNECTED INDIVIDUALS
Always on throws us off, yet another the lack of time-outs and pauses in our The new meaning of connection creates
paradox. All-the-time connections, and pace of life. Reports indicate that when paradoxes in the way we work. The on- Today’s business travellers want to be as productive as
confused internal clocks alter lives, as under connection consumption pressure, demand economy creates unified work possible. They work while they travel. They know that their
people are no longer regulated by day- people tend do more things at once. communities of connected individuals: an best work requires a comfortable environment conducive
part, mealtime, work-time schedules; time That compounds the stress, preventing untethered force of individuals integrating to productivity. They seek a hotel experience that blends
zones are the new continents.15 People no feelings of task accomplishment.16 into organisations on a flexible basis work and relaxation.
longer just complain about reduced time creating a brand experience of unity with
Connections require attention. Research The Crowne Plaza® brand’s Flexible Meetings Solution
due to activity over-scheduling: people now diversity. Building unity of purpose among
from Microsoft indicates that the human provides modern business travellers with a holistic
complain that they have reduced time due working individuals – when many are not
attention span fell from 12 seconds in environment.It combines Stimulating Spaces, On Demand
to information overload. We are always employees – is a key challenge for brands
2000 to eight seconds in 2013.18 Shorter Service enabled by technology, and Food That Fuels,
plugged in but wish for some unplugged and organisations. The increase in devices, enabling how people meet and work today – through
human attention spans force brands to
time. We connect with the environment, data traffic, and storage has transformed impromptu individual and informal groups – the “meetings
meaningfully connect in mere seconds.
with local cultures, and with products and our working lives. Where we work, how around the meetings”.
Gen Z wants information as quickly as
services enmeshing us in the world, yet we we connect with employers, co-workers
possible yet they lose interest quicker Crowne Plaza Hotels & Resorts also introduced the
desire solace and solitude. The paradox and clients can be immediate regardless
than other cohorts. Brands must affect Work Life room, which provides guests with flexibility to
of constant up time and the need for down of place and time. Communal workplaces
people who connect and disconnect sleep, relax and work all in one space. Like the ‘working
time: although constantly connected, are a burgeoning industry: estimates
in the blink of an eye. triangle’ of a chef’s kitchen, the new Crowne Plaza room
indicate 10,000 co-working places
worldwide by the end of 2016 – a small allows guests to move freely between three key areas
The Privacy Calculus – a cocooned bed, a flexible ‘nook’ and a streamlined
number yet clearly growing.20
Bombarded with constant workspace. These spaces address the modern business
Constantly connecting and sharing personal
Additionally, new data suggests that traveller’s needs for informal meetings and the paradox
intrusions of communications, information creates data that erodes
Millennials in the US say career-building of ‘room’ for comfort and productivity.
privacy. Disconnecting would bring back
some people want the power privacy at the sake of personalisation of workplace connections are as important
To ensure that the brand remains at the forefront of the
as “doing a good job” in the workplace.
to separate from the stream. services and communications. Research
Millennials find that networking and
new way of doing business, in the Americas region, IHG will
indicates that customers create a “privacy invest in design-led, culturally-relevant, technology-enabled
A start-up in London called calculus” weighing the benefits of the relationship building is highly valuable solutions to genuinely empower, energise and inspire the
Kovert creates wearable sharing reward against the sharing costs. for one’s future.21 modern business traveller. This is designed to further
Brands have an opportunity to address the create a guest experience with modern swagger, innovative
jewellery products – connected technology, responsive service and flexible spaces that put
paradox of privacy reward and privacy risk.
to an app – designed to Trust is required: people want to know to the modern business traveller feel comfortable, in control
“empower you to disconnect” by whom they are giving their information. and productive.
There is another opportunity: to collaborate
giving the wearer control to filter and create standardised approaches to
out the overwhelming intrusions privacy across industries while hyper-
of mobile and digital devices. personalising responses to individuals’
information profiles within brand.
The user can program the app Segmentation is critical: different people
to identify people and sources have different attitudes and behaviours
when it comes to privacy. The increase
and stop these messages.17 of “wearables” means personal data is
accumulating and being accessed by a
wide range of providers.
Flexible Meeting Solution at Crowne Plaza Atlanta-Midtown, Atlanta, USA
26 1. The Paradox of Separate but Connected 1. The Paradox of Separate but Connected 27
“Luxury means different things to different people. More mature markets are craving a new, evolved
kind of luxury. This is why offering luxury customers a relevant, personal and exclusive experience
will become even more crucial than it is today. It will be a differentiating factor between old and
new luxury,” Rob Sinclair-Barnes, strategic marketing director, Amadeus IT Group, a global travel
technology company.
32 2. The Paradox of Abundant Rarity 33
Age Makes a Difference deeper into members’ personal lives” Personal and Person-less
with social events, dating services, career
The 2013 IHG Trends Report highlighted advice and entrepreneurial connections. As invisible technologies increase,
Invisible Travellers: they go from home- SoFi “hosts dinners and happy-hour mixers automation takes the human out of
printed boarding pass to in-flight Wi-Fi for its ‘members’ and recently took a group experiences, especially service. One
to app-ordered taxi to hotel kiosk to of singles skydiving. One Twitter wag called common service business definition67
app-ordered food. Invisible Travellers it ‘Tinder for banking.’”65 is “a set of one-time consumable and
are aided by invisible technologies, which perishable benefits. It relies on the human
are especially pervasive and unnoticed by connection aspects of a relationship.”
many customers. Many first time, Gen Z, The supplement, FT.com/Wealth However, in our brave new world, non-
then short after Millennials are Invisible
Travellers preferring the paradox of a reported, “Millennials matter human, biometric, sentient technologies,
bots and robots provide many of the service
Kimpton Hotel Palomar, Los Angeles Beverly Hills, Los Angeles, USA
personal yet person-less travel experience. to the wealth management activities. Assistance and helpfulness are
In contrast, Gen Z desire some human
contact: although true digital natives,
industry. But different from important and make life easier, regardless
Boomers and Gen X, Millennials of how it is delivered. But each brand
Gen Z also seek person-to-person contact.
experience is different requiring different
More and more businesses focus on find Robo-advising appealing. levels of technological integration or none
younger people who are more comfortable The report stated that younger at all. Some believe that hospitality cannot
The Three Dimensions of Ease The Evolving Workplace What Can Brands Do?
In several issues of IHG Trend Reports, Many young people today will soon Continue to build and nurture a strong,
IHG discussed the three dimensions of work in jobs that do not yet exist or in adaptable, flexible intelligent and IHG® VIRTUAL REALITY –
ease: ease of choice, ease of use and ease industries that have not yet been created. empathetic corporate culture. The Paradox of Do It Myself and Do It for Me in My Way: RETHINKING CONSUMER
of mind. As people increasingly delegate Ten years ago, people did not know about Digitised does not mean dehumanised. Rethinking Consumer Control CONTROL
services, tasks and decisions to technology, shared industries like Uber, BlaBlaCar, The technological changes in the
they will not want to trade-off ease of or Rent-The-Runway. Even with all of the workplace should not allow a Brands must address the consumers’ desire for being in control while In Europe, IHG is using Virtual
mind for the ease of decision-making and automation and technological, digital dehumanised personal experience. in many cases not being the controller. Reality both as a design tool for
convenience. Certain things such as making workplace changes, people are still needed. new rooms, as well as a research
Brands must address the consumers’
dinner with meal kits delivered daily do not They will need different skills but humans tool for gathering guest insights
desire for being in control while in
appear to make people feel uneasy. still matter. to improve the guest experience
many cases not being the controller.
But travel decisions, financial decisions, as a whole.
There is a new collaborative workplace Brands must determine by customer set
health decisions, these decisions require a
where people, technologies and robots where the line is between machine and Using Virtual Reality in this way
lot of credibility before people will delegate.
work together in making things and me. In the battle for the soul of control, gives consumers the control they
Brands must take care when deciding who
providing services. Are machines the best brand experiences will be control seek to develop their ‘own’ brand
or what is the decision-maker. Smart Home
“Tools for Conviviality”? Convivial means delivered my way. product or experience but at the
technologies create a paradox of ease: we
with life: is this technologically possible? 70 same time allows the brand to
are used to taking care of the house and Trust is earned, not given. Customers
Trust is essential. People need to not only be in control by facilitating the
now the house is taking care of us with must trust the technology to deliver the
trust each other. They also need to trust experience and then ultimately,
all the intelligent connections of comfort promised brand experience in a quality developing the new concept.
their interactions with the digital world.
and safety. People want both. Brands are manner. Customers must trust the
one-think decision-making entities. machine to perform the task and without Brands including Holiday Inn® and
When customers trust the brand and depersonalising and dehumanising the Crowne Plaza® Hotels & Resorts
believe that it delivers the promise on all task. Doubt damages trust. are using this new innovation
three dimensions of ease, decision-making to drive more than just design.
is both trustworthy and speedy. IHG is using this new technology
to research, prototype and in the
Purveyors of home connectivity (smart future, provide guest facing Virtual
homes) now realise that selling products Reality content. In this way, the
that do things is not nearly as compelling brand is building its future hand in
as selling services providing ease of mind. hand with its guests, its staff and
For example, “Early on we found that if its hotel owners.
you called what we do ‘home automation,’
people liked it but would not spend money
on it. But if you called it ‘peace of mind’ and
anchored it in home security, then people
knew they need to have that and would
spend $35 to $45 a month on it,” Letha
McLaren, CMO, Icontrol Networks, Inc.69
Digital is more than an e-commerce
channel: digital is a social force that
diffuses control. Robotics make our lives
and choices easier putting us at ease.
Is the machine merely computing or
actually thinking? Another paradox:
digitised or humanised or both?
52 Six Best Practices for Addressing Paradoxes of the Age of I Six Best Practices for Addressing Paradoxes of the Age of I 53
5 6
Develop Ambidextrous Address the Paradox
Brand-Business Teams of Brand Control
Paradox promise solutions and An ambidextrous brand-business team Who controls the brand? Some say that perceived trust. Brand loyalists, acting
management require a new way of thinking turns the uniqueness of the team members business does not own the brand, but both as individuals and as members of
about the brand, its experience and the into cohesive, unified initiatives for enduring customers own the brand, indicating a brand community, respond, react and
business ramifications. Ambidextrous profitable growth. Its goal is to combine that the external world of peer testimony, recommend. Sharing information online
brand-business teams address the and complement the knowledge and news, word-of-mouth, social media sites, creates knowledge that is highly valuable.
collaborative paradox of individuals talents of individuals into a “community” and ratings websites control the brand. Meaningful membership communities make
who think differently but also strategise of shared ownership of ideas and actions. This reflects the new paradox of brand a difference to the brand. The better the
and act unified on behalf of the brand. It is an open forum combing the diversity control: is brand control in the hands of brand interacts with customers, the greater
Each member has individual strengths, of individuals into a unified group. An the business or is it in the hands of the the value to the customers and to the brand.
talents, and passions. Yet, the team ambidextrous brand-business team has its external world? The answer is both.
Corporations must invest time, money
can work in an integrated manner. own collaborative identity that is a function Having active, participatory loyalists
and effort into brand-building initiatives
Brands benefit from divergent thinkers. of the combined individual identities: it is is essential for the health of the brand.
to create brand authority and specialness.
The friction that exists when pairing people the best way to organise in The Age of I. Growing branded experience communities
Brands also need to invest in two-way
who think differently generates original based on meaningful membership
connections with customers and other
ideas. The paradox of genuine creative generates increased attitudinal brand
external influencers. External parties
thought and disciplined thinking produces loyalty74 and trustworthy brand value.
can strengthen or weaken the brand’s
breakthrough strategies and tactics.
Brand owners deliver relevant and reputation. In a world of integration,
creative brand experiences to these brand building a relevant, differentiated brand
stakeholders. Business must not give experience and also investing in external
up control of the brand to the external reputation management builds enduring
world. Yet, the external world does impact profitable growth.
and influence the brand reputation and
58 Conclusion Conclusion 59
Conclusion
In order to address consumer paradoxes The Paradoxes of the Age of I
of the Age of I, brands (organisations)
must learn how to satisfy contradictory
needs in compelling and exciting ways.
Maximise, do not compromise.
The traditional thinking that a brand
must only be a single-dimension solution
regardless of geography no longer
makes sense. People do not want to give up
certain elements of the brand experience
to receive a compromised experience.
They do not want to make concessions.
Instead they want brands to create no
trade-off brand experiences.
Resilient, powerful brands that address
the diversity of global consistency, local
relevance and personal differentiation
must address opposing needs.
Business in The Age of I requires new
ways of thinking and new actions. The goal
of business is to satisfy customer needs
profitably. Now is a transformative time
where the strongest brands will promise
and deliver the “best of both” when
addressing conflicting, relevant customer
needs. Crafting paradox promises means
creating brand experiences, which optimise
contradictory desires. In The Age of I, the
challenge is to create no trade-off brand
experiences as the basis of high quality
revenue growth. Business management
and brand management are intertwined.
How you run your brands is how you run
your business.
60 Endnotes Endnotes 61
Endnotes
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