Home is Where the Heart is: Know how this lodging company won people over with its bold strategy!

Tuesday: Return Driven Strategy From the desk of Miles Everson: Hello and welcome to today’s “Return Driven Strategy (RDS)!” I’m thrilled to discuss another interesting topic with you. EIf you are new to RDS, it is basically a framework structured like a pyramid, featuring 11 principles and 3 foundational elements. When effectively implemented, these principles help both businesses and individuals achieve their organizational and career goals. Today, let’s focus on the 6th principle of the RDS framework: Brand Offerings. Are you ready? Read more to discover how this lodging company succeeded by redefining its identity through the power of belonging. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

Home is Where the Heart is: Know how this lodging company won people over with its bold strategy! Embarking on an adventure, either alone or with the people we love, is like unlocking a world of endless possibilities. From spontaneous road trips to fun escapades, the journey becomes as unforgettable as the destination itself. Although sometimes, amid the laughter of friends or the warmth of family, we find ourselves silently adrift. More often than not, we feel disconcerted when we are in an unfamiliar place filled with different people. After all, home isn’t just a place; it is also wherever the heart finds belonging. In 2014, American lodging company Airbnb transformed its accommodations into inviting spaces where people could find a sense of belonging. Let us explore the motivation behind this rebranding, the lesson this move offers, and whether the rebrand worked or not… Lodging and Belonging: Airbnb’s Bold Rebranding Journey Airbnb is a company founded by Brian Chesky, an American businessman and industrial designer, Nathan Blecharczyk, a Polish-American businessman, and Joe Gebbia, an American designer, in 2008. The brand emerged as a leading global platform enabling people to either rent out their accommodations or share their homes with fellow travelers, making it one of the largest and most popular temporary housing worldwide. Some of you might be wondering by now: “If it’s already a leading global platform, why did it still have to rebrand?” To answer your question, it’s to align Airbnb’s identity with its new ethos and attract more people. Airbnb underwent a major rebranding, introducing a new logo, website design, and marketing plan, in 2014. The aim was to present itself as a higher-end option compared to traditional hotels, while still highlighting its unique community-driven culture. Through research and testing, the company discovered that what people cherished about Airbnb was how it provides “the sense of belongingness.” With this, the company decided to expand its message and mission through rebranding and emphasizing the concept of belonging. Here’s what the company did… Airbnb dropped the “AirBed & Breakfast” name, helping the company shift away from being seen as a cheap lodging option. Afterwards, the brand introduced the new logo called Bélo. The name came from the words “belong” and “believe,” indicating the company’s desire to create connections and forge trust between travelers and hosts. Bélo holds a significant meaning, representing a person, the letter A shape for Airbnb, a geotag symbol, and a house all within a circle. This new logo signaled a modern, sophisticated approach with its sleek, geometric design. That’s not all! Bélo also showcased the brand’s intent to position itself as a premium choice over regular hotels, while highlighting the sense of belonging in its accommodations. Ditching its old name and look was a bold move for Airbnb… In the end, it paid off BIG TIME! According to Brandsonify, a creative brand agency, Airbnb has over six million listings in almost 200 countries as of 2024, resulting in an estimated worth of over USD 30 billion. See? By doing a strategic rebrand, Airbnb stood out in a crowded market, attracting new users and driving up profits in the years that followed! Rebranding Done Right: Mastering Customer Connection Leads to Success In their book “Driven,” Professor Joel Litman and Dr. Mark L. Frigo emphasized the importance of branding and establishing emotional bonds to achieve significant returns. These points are explored more in Return Driven Strategy’s (RDS) 6th Tenet: Brand Offerings. Tenet Six emphasizes the importance of creating emotional connections with customers. Airbnb successfully did this by highlighting its community-driven culture. Instead of simply providing accommodations, Airbnb repositioned itself as a platform where individuals can find welcoming spaces and a sense of belonging. This successfully provided the brand’s identity with a deeper meaning. What’s more? By tapping into the themes of belonging, sense of community, and trust, Airbnb managed to fulfill the needs of its customers while also connecting with them. This connection is what drives loyalty and trust to the brand, making it stand out in a crowded lodging market. Clearly, rebranding can either make or break your brand! If done correctly, just like in the case of Airbnb, this process will lead you to success. Remember: Defining your brand’s identity and purpose is crucial during a rebrand. Also, it’s important to conduct thorough research and planning that aligns with both customer expectations and the company’s strengths. By doing this, you and your business can be set apart from competitors and win the hearts of your target market! — If you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out “Driven” by Professor Litman and Dr. Frigo. Click here to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm. Hope you found this week’s insights interesting and helpful. EXCITING NEWS AHEAD The world of work has shifted, and there’s no going back. The barriers to entry have never been lower for talented professionals to work independently, and today’s massive external workforce is hardly a pandemic-produced fad. Business owners can only survive in the new work landscape by partnering with this deep talent pool. 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