At the 2009 World Savers Congress hosted by Conde Nast Traveler, Wendy Perrin of Conde Nast Traveler led a discussion about how companies can express their commitments to sustainability most clearly to their customers. In a blog post she wrote earlier, she highlighted the focus of her panel:
We’ll focus on how companies that are committed to sustainable travel can best articulate their message to travelers. The panelists? Carmen Baker, VP for Responsible Business, Carlson Hotels; Richard Edelman, CEO, Edelman Public Relations; Niki Leondakis, COO, Kimpton Hotels; Gregg Michel, President, Crystal Cruises; and Bruce Poon Tip, CEO, G Adventures.
Committed Consumer: Conde Nast 2009
11:15 a.m. Panel: The Committed Consumer: Engaging Your Guests Now
* Carmen Baker, VP of Responsible Business, Carlson Hotels
* Richard Edelman, CEO, Edelman Public Relations
* Niki Leondakis, COO, Kimpton Hotels
* Gregg Michel, President, Crystal Cruises
* Bruce Poon Tip, CEO, G Adventures
* Moderator: Wendy Perrin, Consumer News Editor, Condé Nast Traveler
Its almost conventional wisdom that Corporate Social Responsibility is good business. But will consumers really care about CSR efforts? And how do you best communicate your efforts to your consumers?
If consumers care, then CSR efforts promise rich economic rewards. Transmitted virally through social media, green and socially aware consumers can spread brand karma broadly through social networks. According to Wendy Perrin, “there is no story that gets more traction in the online space than doing good for others.” Maybe CSR is a great way to build up a Facebook group (sidebar: read this post on online slactivism vs. activism). But will anyone pay for this?
Wendy Perrin led the panel through these questions. Katheryn Maier, at the new Conde Nast Informer.Truth.Travel blog just launched today, blogged about the panel:
Her panelists agreed that travelers all seem to care more about corporate social responsibility now than they did in years past. According to a recent study by Carlson Hotels, 76 percent of travelers said that a hotel’s degree of environmental friendliness influenced their decision of where to stay. Some are willing to pay a premium to companies with a high CSR involvement; some simply expect that their companies will be good corporate citizens.
“The traveler’s expectation is that the company is going to be green,” said panelist Richard Edelman, President and CEO of Edelman Public Relations. “Instead of being the eco-cherry on the sundae, it’s in the ice cream.”
Go read her post for more great examples of the efforts that Crystal Cruises, Carlson Hotels, Kimpton Hotels, and G Adventures have done to connect guests with their sustainable travel efforts.
Bruce Poon Tip at Conde Nast Traveler World Savers 2009
Niki Leondakis, Bruce Poon Tip (Photo CC UpTake Networks)
Consumers care, but are not willing to pay a premium
I found Bruce Poon Tip most eloquent in characterizing how consumers think about sustainable travel practices. According to Tip, people care more but their willingness to pay a premium has also taken a hit, in the face of this economic crisis. Therefore, travel providers have to provide products at price parity while funding their social responsibility eforts. Of course, in a huge industry like the travel industry, many consumer segments don’t follow Bruce’s rule, are less price conscious and thus willing to pay more for a “green” travel experience or hotel stay, for example. But its clear that effective communication to consumers is a big part of “getting credit” for good work, andtherefore building brand preference that helps fund these efforts.
Social media can be effective means for infusing sustainability into travel brands
How does social media fit into the Sustainability and Travel picture? Richard Edelman shared some thoughts about the social media revolution and how traditional brands in travel need to change.
Bottom line is that there needs to be a cost-effective transmission method for CSR and sustainability efforts to drive brand preference and willingness to pay. Richard Edelman’s delicious analogy of the “eco-cherry on the sundae” vs. “being in the ice cream” is a great analogy of fully integrating sustainability into the brand promise of your product, whether it be a tour, a hotel, a plane, or other travel services. As Wendy pointed out, there is a good fit between the medium (social networks, social media, blogosphere) and the message (CSR).
The media environment has changed today. According to Richard, an average person receives information from 8 sources, and an average person needs to see a story 5 times before they believe a story. CEO’s are trusted only by 17% of people, and government officials trusted only by 20%. People want to trust experts, peers, and employees. In this new world, the best brand ambassadors is not necessary the CEO–according to Richard who serves as CEO of Edelman “a guy my age is just hopelessly uncredible.” The best spokesperson is likely to be an average person working at the hotel that is actually doing something everyday with guests or clients.
Richard Edelman at Conde Nast World Savers 2009
From Left to Right: Niki Leondakis, Bruce Poon Tip, Richard Edelman
Customer communication moving from the “authority axis” to the “horizontal axis”
Richard frames customer communication along two axes: the “authority axis” and the “horizontal axis.” The “authority axis” is top down, from the leadership of the company to the employees, and then to the guests. The “horizontal axis” is between consumers and between actors in the marketplace, and even between front-line employees and guests. He also highlighted an opportunity to partner with NGOs, who are twice as credible as businesses today, and thus can add “rocket fuel” to your marketing initiatives.
In this “dialectic between credibility and control,” travel companies are generally not responding correctly, allowing the great fear of employees talking directly to consumers (”what will they say about our brand? will it be on-message?”) to prevent them from allowing an authentic, horizontal voice to come out of the companies. Who doesn’t want to be authentic? But at the end of the day, we are asking disciplined brand stewards to throw everything they learned at Procter & Gamble and the Kellogg School out the window to allow non-media-trained porters, concierges, housekeeping staff, and front desk staff to represent your brand.
Furthermore, companies need to go where the conversation is going, which is increasing through social media and social networks. Brands must set up “embassies” (or as Chris Brogan calls them, “outposts“) where they don’t try to control the conversation (they can’t anyway) but to listen to customers and occasionally insert their own point of view.
Some addition points I got from the panelists:
1. Bruce – provide forums for customers and prospects to talk to each other.
2. Niki – use social media to see what customers are talking about and find opportunities for real time service recovery.
3. Niki – for Kimpton, its best to not to “tell too much of the CSR story” in the hotel but find ways to help interested guests opt-in to a conversation about CSR efforts. Example was the use of the loyalty program as a way to enable Kimpton to understand specific interests of people.
4. Bruce – be tangible. The large omnibus non-profits have a challenge in helping donors understand exactly where their money is going. Bruce’s approach is to provide highly specific options for donation, up to 27, and to make the causes extremely specific. For example, he highlighted a example of a Tibetan eye camp where 60 doctors and medical staff went to Tibet to operate on over 300 people. Be specific.
5. Carmen – Carlson has been successful at engaging guests at the front desk in their efforts to save water by allowing guests to be charitable at the front desk and in the lobby.
6. Gregg – The key factor for success is training staff and reinforcing the change.
7. Gregg – The message that resonates is how so little–e.g. $5–can do so much. A simple message can connect with guests.
8. Bruce – For some businesses, sustainability can be a key weapon in recruiting and retaining the right person.
9. Carmen – Don’t leave your staff behind. Understand that you are telling your staff not to change the linens after telling them to change for over 20 years!
10. Niki – set up local “Eco-champions” to evangelize program locally. Also, expect about 70% of your best ideas to come from your employees to you, not from you (at HQ) to them.
11. Bruce – Create a higher purpose.
I’m sure I missed a lot because I was busy taking photos and uploading to Flickr. I’ll put more related posts here as they go up. In summary, an interesting discussion bringing together Corporate Social Responsibility and the use of social media to help engage customers in this important work and get brand credit while doing so!