by Sean McCoy (@TheRealMcCoyTRM) No, this is not a dyslexic distortion of words but a deliberate play on the blurring of the boundaries between products and services and the increasing commoditisation of both — there is parity everywhere and the distinction between what a product is and what a service is has become as grey as the world of communication and branding itself.
Although the two are increasingly intertwined, the service component still represents the real opportunity for differentiation, as I have repeatedly suggested.
Renting cars in Cape Town
This thought came back to mind following my recent arrival at Cape Town International airport for the annual Mining Indaba — a global industry showcase that sees the host city under siege, hotels charging double the normal rate and the car hire industry, the focus of my column this month, in the spotlight as it attempts to cope with the increased demand in a month that also sees fairly active levels of tourism post the peak December/January season.
All in all, it’s a pressurised time for the Mother City and the brands that engage in the visitor experience during this peak period.
The nature of the car hire industry exacerbates its commoditisation: each of the players has a similar-sized retail space, zoned along a similarly located strip for ease of access to the landing traveller. This is not always the case as, in other instances massive, rental premiums are paid for preferential locations to secure customer attention first.
Product is essential identical
Vehicles are categorised into similar bands and the product is essentially identical, as are the price points, to a large extent. Vehicle quality, general condition and maintenance are often variables — but an unacceptable one at that — a good, clean and safe vehicle should be a hygiene factor in the category and not a point of difference.
The key differentiator ultimately comes down to the service experience: how groomed, courteous, efficient, interested and client-focused the retail team is, and what the overall encounter is like for the client.
This is naturally facilitated and augmented by the quality of the retail environment and fit out; the efficiency and speed of the booking system; the quality of uniforms and people appearances in an industry that promotes this; and the little touches such as a city map, complimentary newspaper or cup of coffee while you queue.
In a complete rage
Sadly, during this visit, I encountered a little old lady in a complete rage at a service assistant over her booking that had gone missing, in spite of the voucher she produced, and why the company had been unable to help her in the last hour and 15 minutes that she had been there.
To compound the problem, the person trying to help her had no idea as to how to handle her agitation or resolve her problem and there was no manager or supervisor in sight to intervene.
To further dramatise the situation, this was a new service provider I had been trying, for the third time I might add, and the service problem remained the same, always blamed upon systems failures. Needless to say, I have defaulted to my original provider which has generally been good; I had made a poor judgement in being lured by this competitor in pursuit of a promised car hire experience that failed to materialise.
Can’t be a faddish effort
The principle of brand alignment or internal brand building cannot be an occasional or faddish effort at doing things differently.
As I have pointed out previously, it requires a visionary and deep-seated commitment on the part of the business to really differentiate through people and service; and to invest in this on a continuous basis.
A classic case study in tagline consistency in the category is that of Avis, which has not changed it in this country in over five decades. More to the point, it holds out a humble, yet transactional, promise of “We Try Harder”.
Even though it has to demonstrate that it is constantly trying and, therefore, still has to deliver on its commitment, there is something grounded and appealing in its commitment to strive to do it better — something that the car hire industry certainly could do — and something that we as brand builders need to constantly pay attention to.
Footnote: In my grumpy column focus of last month, picking on the apathy of an unnamed technology service provider, I am delighted to advise that I carried through on what consumers should do and voted with my wallet. My internet connectivity is in the process of being changed to what will hopefully be a better solution; and I have yet to receive a phone call from the managing director who continues to pontificate about the provider’s excellent service levels via all manner of communication platforms. Brand alignment is a construct he has yet to get.
Dr Sean McCoy, MD and founding member of HKLM, is a prominent figure in the branding arena, with his expertise centered on client service, brand strategy and business development. Sean has been chairperson for the Brand Council of South Africa since 2012. He contributes the regular “The Real McCoy” column focusing on internal branding to MarkLives.
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