Amid major shifts in the consumer and business landscape, companies in the Middle East must revamp their value propositions. -McKinsey
Brand value is critical for businesses in the modern marketplace.
With so many competitors in today’s marketplace, it can be difficult for brands (old and new alike) to stand out. When competition is fierce, value driven solutions are the best answer to achieving competitive edge in your region, especially for sectors where supply may be outstripping demand – such as property, hospitality and hotels.
This tougher trading environment has overall led to many businesses taking a reality check on their business outlook.
Dubai’s hotel sector for instance, has reported a 15 percent drop in RevPAR (average revenue per available room) according to EY (Hotel Benchmark Survey MENA). Whilst occupancy was down only slightly, average room rates fell more dramatically.
How can customer expectations enhance brand value?
In speaking to operators, we’ve found that higher expectations from customers around brand experiences – from the basics right through to the ‘wow’ factors at the luxury end of the market – are making owners, investors and managers aware they have gaps in their business plans.
Whilst some brands may find success by moving to more flexible, leaner operating models and matching products to the needs of a specific demographic or ‘tribe’ – others need to consider new ways to add value at the luxury end of the market, taking into account the way in which different cultures value luxury. The glitz and glamour that some markets value highly may not work for the markets that favour simpler, eco conscious experiences.
86% of customers – whether clients or consumers – will pay more for a better experience.
– PwC 2020 Forecast
Putting structure around a review of your current brand experience or customer experience can help make sense of the new competitive environment and the changes needed to gain an edge, no matter your business or sector.
Built from years of experience in brand recovery and turning the ideal customer experience into the reality through practical delivery at every brand touch point day after day, our ‘business health check’ will help you through each step to ensure you achieve your goals.
If you are in need of help with business recovery, guest experience, brand engagement and employee engagement, drop us a line!