Once upon a time, luxury brands were
premium and budget brands were mass-market. Yet as consumers become
more demanding, brands are becoming ever more creative in meeting
multiple, seemingly irreconcilable customer needs.
The launch of Bloc Hotels is in
Birmingham is the latest in a series of such feats. A ‘Boutique
Budget’ hotel brand, Bloc has developed a new model based on an
in-depth understanding of customers’ behaviour and needs when
travelling on a budget (rooms start at £30).
As most short-stay travellers do not
unpack and prefer not to eat in their hotels, Bloc has chosen not to
offer storage or dining facilities. The resulting savings mean that
its hotels can focus on those elements that cue a premium
accommodation experience for guests: for example luxury linen,
powerful drench showers, state-of-the-art WiFi and HD TVs, and a
superb location.
By focusing on the brand touch points
that make a real difference to its customers, Bloc is able to provide
a luxurious experience in spite of its failure to tick all of the
customary ‘luxury hotel’ boxes (with associated price tags).
This innovative challenger model has potential to shake up not only
the travel industry, but also potentially any luxury product
category.
Even if you can’t build your customer
experience from the ground up, do you have a full understanding of
what’s important to your customers and what isn’t? Focus on the
elements that have a real impact on consumers’ perceptions, rather
than wasting resources on those that don’t, and you can create a
superior experience without an associated increase in cost.
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