Brand Lessons From the ‘stache
The brands behind the sharing economy have been overturning industries and buying habits around the world. Here’re 4 Lessons your brand could learn from the brands behind the sharing economy….
1.) Meet real market needs:
Back in 2008, an unexpected rent increase during a recession left a young entrepreneur’s bank account a tad too short to make rent. Armed with a resourceful disposition and an extra air mattress, he marketed his living room to out of towners visiting SF for an upcoming design conference. And that was the beginning of Airbnb.
Airbnb’s founder wasn’t the only one struggling to make rent, which is one of the reasons this startup took off. During 2008, Airbnb’s first year in business, home foreclosures went up 81% in the US. Tight budgets were also making travel more difficult for bootstrapped families, adventurers, and business travelers. Airbnb used technology and a savvy brand to pair “hosts” who’d like to earn extra income, with travelers who’d like to save money and enjoy the experience of living like a local.
Airbnb transformed the financial constraints of homeowners into the solution for budget travelers, creating a win-win for both its target audiences, and did so with impeccable timing. 47% of airbnb hosts say airbnb has helped them stay in their homes during the recession.
After only 7 years in business, Airbnb is now valued at $25.5 billion. When you’re the solution to your customers problems, its easy to shift loyalties, buying habits, and drive engagement.
Since 2008, Airbnb has been meeting very real wants and needs for its customers, and responding swiftly to market shifts.
How are you meeting real market needs?
What real wants and pressing need are you solving for your customers?
What emerging market realities are you positioned to address?
How are you keeping your finger on the pulse of market shifts and customer needs?
2.) Guard your differentiators
Lyft is a fabulous example of an organization that knows how to strategically guard its differentiators.
The top complaints people have about taxi cabs include: lack of friendliness, lack of cleanliness, and poor navigation. When we interviewed people who prefer taxis to ridesharing services (like Lyft, Uber, and Sidecar), they reported safety concerns as one of the top reasons they haven’t jumped on the ridesharing bandwagon.
It’s easy to become a lyft driver- pass a background test, a driving test, a car inspection, have proof of insurance, and you’re good to go. Maintaining your spot as a Lyft driver is a whole lot harder. Lyft drivers have to maintain a 4.5 star rating out of 5 stars. After every lyft ride, a passenger is asked to rate their driver, based on 4 criteria: safety, friendliness, cleanliness, navigation. If a driver isn’t able to maintain the competitive differentiators that are giving Lyft an edge over the competition, while reducing the number one factor preventing new passengers from giving Lyft a chance, they wont last very long as a lyft driver. Lyft guards their differentiators. How do you guard yours?
Do your employees know what differentiates your brand from the competition?
Do they understand why those differentiators matter?
Are they incentivized and rewarded for reinforcing those differentiators?
Do they know how to make decisions in-line with your mission and purpose?
3.) Invest in brands that are likilable and credible
Uber and Lyft were designed as likable experience-driven brands. The Lyft experience is designed to act, look, and feel less like a cab and more like “your friend with a car”- from the fuzzy pink mustache that adorns drivers’ cars to simplicity of the app and practice of encouraging passengers ride up front.
In a recent brand Mother poll, more than 82% Percent of participants said the likability of Lyft and Ubers brands give them a legitimate competitive advantage over the taxi companies.
What makes your brand likeable?
How do customers perceive your brand?
How are you leveraging your brand internally to ensure you’re able to operationally deliver on your external brand’s promises, campaigns, and messaging?
4.) Drive the trends rather than fighting them!
If taxi drivers around the country had been adapting to the shifting wants and needs of their passengers, guarding their differentiators, and investing in likeable credible brands there likely wouldn't have been a market for Lyft, Uber, or Sidecar.
Culture and technology are always evolving, if your business practices aren’t keeping up then you’re falling behind and leaving gaps wide open for a competitor to fill.
How are you driving trends?
How are you adapting to the shifting expectations of your customers and your industry?
How are you closing the gaps that make you vulnerable to market shifts?
How are you strategically position to drive innovation, rather than respond to it?
You can read more about successfully navigating disruptive markets, right here: http://www.comstocksmag.com/web-only/how-navigate-disruptive-market