Challenges in the branding of services

The main purpose behind branding is to "add value". Today, most companies view "brands" as assets that will yield long term returns through customer satisfaction and loyalty. This is based on the brand's capacity to add value to the usage experience of the customer. We define "value" here as 'the consumer's estimate of the product's overall capacity to satisfy his or her needs' (Kotler). This satisfaction comes from comparing the product's perceived performance in relation to her expectations. There is no doubt that branding adds to both expectations (if I fly Singapore airlines I will get quick, efficient, courteous service. I will get whatever I need with minimal effort on my part) and perceived performance (I am flying Singapore Airlines. It is known for its top class service. I find the food and ambience to be of excellent quality. The service personnel go out of their way to make me feel comfortable).

Most branding goes on to add value through "intangibles"(such as brand associations, values, culture, brand personality) to what is essentially "tangible" in terms of the product itself (soap, shampoo, toothpaste). But this does not happen when the product in question is a "service".

A service is a deed, process and performance (Zeitaml and Bitner). It is intangible and does not result in the ownership of anything. It cannot be standardized. Services cannot be displayed as "tangible" products can. It is therefore difficult to communicate even the basic benefits and attributes of a service.

The success of any brand lies in consistently delivering "value" over a period of time. Such consistency is possible in the case of a "tangible" product that is homogenous, standardized, readily displayed and communicated. But how does one manage this aspect of consistency when the product in question is intangible or a "service"?

A service is essentially delivered through an interaction between the service provider and the customer. When you brand a service you are essentially branding this interaction. A service is also displayed and communicated through such interactions. The attributes and benefits of a service are also manifested through these interactions. How does one control these as one would for a tangible product? Further, how does one add further "intangible" values through branding (brand associations, values, culture, personality, et al) to this?

Human interactions carry with them all the behavioural implications that are difficult to manage. And here we are talking of 3 aspects that will affect a customer's experience of a service.

• Behaviour of the service provider
• His own behaviour
• Behaviour of other customers (Irate co-passengers on a delayed flight, well-heeled, genteel people sitting around you in the coffee shop of a 5 star hotel)

Each such interaction or experience is either going to reinforce the brand's core values or negate them.

But for the customer, branding in a service definitely adds value. This is because the decision making process in a service is essentially a complex one. Let us look at the various stages.

1. Information search : Since services cannot be displayed, information regarding them is hard to evaluate. Branding can reduce the risk associated with selecting a service by making this evaluation easier.

2. Evaluation of alternatives : Again, the evoked set of alternatives in the case of a service is likely to be smaller because a service is not readily displayed (hairdresser, travel agent, hotel). And if a brand has been successful in capturing a place in the consumer's mind it is likely to stay there. This is because the consumer may find that the costs of switching from the currently used service are high.

3. Purchase and consumption : Branding can influence the customer's experience of a service in terms of both expectations and perceptions.

4. Post purchase evaluation : If a customer is satisfied, she may go to the same service brand again to cultivate a " more satisfying" relationship (using the same tailor, designer, courier).

So how does one successfully brand a service and what does one brand?
The answer probably lies in managing the following:

• The process : Even if a service is non-standardized, a fair degree of standardization can be achieved in the actual mechanism and flow of activities through which a service is delivered (interaction of bank staff with customers)

• The people : Successful service brands such as Singapore Airlines, Club Med, Walt Disney and Hyatt have shown that training and motivation can make service interactions a success. Most of these organizations have a
' what to do if ...' kind of a list as a part of their training. Roles of service personnel are rehearsed to achieve a fair degree of consistency. A word of caution here. While the roles should be rehearsed, the 'scripts' should not, and should be spontaneous (witness the interactions of airhostesses on Indian Airlines. They have given a new meaning to the terms 'friendly' and 'courteous')

• The evidence : Since a service is essentially intangible, it is the tangible aspects that reassure a customer and create a certain amount of credibility.

This could be in the form of documents, physical equipment and personnel themselves (the actual credit card for a subscriber, the facilities at the hotel for a user, appearance of flight attendants for a traveler). A brand can help shape expectations and perceptions about all these to add value to the customers' experience.

If you work in the services sector please do write in with your opinion.