What Cruises and Cosmetology Have in Common: Royal Caribbean

How One Cruise Line Brand Combines Customer Experience and Influencer Marketing to Sail Past Competitors

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Philip Mandelbaum
07/22/2022

A behind aerial view of a cruise ship heading toward a setting sun and deep orange sky

They tell investors to sell high and buy low. So that’s what Royal Caribbean did Monday, July 18, 2022, when the world's second-largest cruise line operator bought the Endeavor for $275 million — “significantly below the cost of construction of the ship” — amid its own stock RCL plumitting 55% in the last year. Of course, as a customer experience specialist, that’s not what caught my eye; corporate investments don’t impress travelers comparing cruise prices, destinations and amenities, particularly when (“family-friendly”) competition is increasing. Customer centricity? Well, this is a time-tested solution for sealing up a sinking ship (more on this later).

Following earnings reports in June, Ed Ponsi of Real Money sees Royal Caribbean’s stock price (and that of Carnival and Norwegian) plunging even lower; “however,” he says, “these stocks are priced for an industry-wide calamity, and I’m not sure that’s realistic… Cruising enthusiasts tend to be older and wealthier. They are among the least susceptible to a recession.”

Indeed, while cruising was called “the perfect petri dish that allows the virus to thrive and spread quickly,” and all cruises were suspended worldwide in March 2020, some ships were already launching by the summer — and, in 2021 the industry began to reemerge, hosting nearly 14-million vacationers worldwide, with around 200 cruises departing in the second half of the year alone. In fact, even with cruise disruptions continuing through late December, in 2021 60% more cruise ships were built; Royal Caribbean carried more passengers than any of its competitors.

Nevertheless, Ponsi (not the best name, I know) predicts RCL nosediving to $5 a share (it’s currently floating around $35)! If it does, I may invest — because the upside of getaway providers is limitless; the more pain we feel in our everyday lives, the more committed we become to saving for even a few days of escape.

So, instead of prioritizing what the institutions and ultra-high-net-worth investors want — i.e., immediate cost cuts and revenue rebounds — Royal Caribbean (and its competitors) should be targeting couples and families who can still afford to vacation and want a break from their treacherous commute or new hybrid work rules.

A party on a Royal Caribbean cruise at Port Canaveral, Discovery Place, Cape Canaveral

Overcoming Titanic Obstacles Through Customer Centricity and Influencer Marketing

This is exactly what Royal Caribbean has been doing, in two ways:

“Stepping up their communications with customers as covid protocols and itineraries [change],” demonstrating transparency and a commitment to customer health and safety, limiting unpleasant surprises and lost customers
Focusing on the end user, and the little things that can turn a good vacation into one of life’s unforgettable moments

How do I know? Influencer marketing.

I love the ocean, but I don’t like the heat. I love boats, and relaxing on vacation, but we have two children who are too old for the kids’ activities and too young to hang with the adults. In other words, I’m not the cruise line's target audience. So I never would’ve even seen or heard about the brand’s CX efforts if it weren’t for a viral video my youngest found on TikTok — and not on Royal Caribbean’s account.

@mikaylanogueira OKAY @Royal Caribbean I SEE YOU 🛳👀 THANK YOU FOR THIS!!!! #cruise #towelanimals ♬ Monkeys Spinning Monkeys - Kevin MacLeod & Kevin The Monkey

Mikayla Nogueira, a makeup artist with more than 15-million followers across her verified Instagram and TikTok accounts, shared a story recently about “loving towel animals on cruises.” Royal Caribbean could’ve ignored it, or left a witty reply from the corporate account and accrued a few new followers (though maybe not customers); but, instead, the brand’s social media team collaborated with the customer experience team and onboard cruise staff to present the popular online influencer with a viral-ready surprise: a room on the ship filled with towel animals.

Mikayla came through, as the social media team probably promised she would. The TikTok video of her panning across the towel jungle has nearly 10-million views, three-million likes, 12,000 comments and 76,000 saves. Royal Caribbean is tagged in the description, and thanked profusely in the audio.

And now my daughters want me to write to Royal Caribbean about their love for towel animals — and how long it’s been since our family’s traveled for fun. I have a feeling, too, that our next trip may be our first cruise, on one of the ships helmed by the brand that cares about its (young) customers.

Mikayla is in her 20s; she’s not only part of the largest, fastest-growing and most liberal segment of our society, she’s one of the leaders of the very online generation — young people raised during the Great Recession and a global pandemic, who won’t unplug (or, sometimes, even leave the house) without inspiration from someone with greater digital clout.

A sun-tanned social media influencer with long, straight brown hair, blowing in the wind, and a sheer swimsuit overshirt looks out at the sea from a cruise ship

Why Every Brand Needs Influencers

Influencer culture isn’t going anywhere. Nearly 90% of Gen Zers and millennials initially learn about things they want to purchase on social media — and four in 10 teens trust influencers more than their friends. But that’s not all: their parents are now listening; 84% of C-suite and VP-level executives now use social media to make purchasing decisions, and 92% of all consumers consider peer reviews and user feedback to be the most credible source of potential purchase information.

Why? Because consumers have caught up with the corporations — and no longer view customized email and DM salutations as true personalization. While not every customer expects their preferred brands to protest alongside them, they do demand more from their individual engagements; they all want to feel heard, understood and valued. They want to be the priority, over profits or brand reputation. And there’s no better way to provide the appropriate level of customer centricity than to deliver a customer experience that not only trumps the competition but highlights the humanity behind the logo.

When Mikayla shared an Instagram story (that disappeared in 24 hours) about towel animals and cruises, someone from Royal Caribbean was paying attention, and jumped on a mutually beneficial opportunity — a life raft, if you will, for a brand and industry that’s been treading water amid years of CDC regulations, staffing shortages and consumer safety concerns.

The question, of course, is whether this was pure luck or the result of an informed influencer marketing strategy; hopefully for employees and investors, if it was the former, the results initiated a strategic shift.

A closeup of the cockpit of a cruise ship

Influencer marketing produces, for instance, a 1,100% greater ROI than traditional banner ads — and creates 520% return on every dollar spent. This is why nearly nine in 10 companies plan on working with a social media star in the next year, 71% intend to increase their influencer marketing budget, and almost 20% expect to dedicate more than half of their entire marketing budget to influencer marketing.

What’s most important for Royal Caribbean and all these other brands is how they develop and implement their influencer marketing strategy.

To maximize your opportunity, ensure:

Your digital marketing team has the right roles and responsibilities in place
Your influencer marketing strategists follow these top five tips

The Top 5 Tips for Implementing a Masterful Influencer Marketing Program

The data is clear: influencer marketing works, when you do it right. As consumers become more and more sophisticated, though, the right part of the equation becomes increasingly complicated. That’s why I developed this list of the five most important influencer marketing tips for the 2020s (and beyond).

1. Prioritize Ongoing Influencer Relationships and Communities

One-off projects and short-term influencer relationships can play a pivotal role in testing new campaign ideas, expanding into new niches, and trying out new influencers. They can also help you scale your influencer marketing program. Now imagine the potential Royal Caribbean has in recruiting Mikayla Nogueira to create additional, strategic videos for her massive audience!

When you find an influencer that loves your product or service, showcases your brand in line with your messaging and maintains strong engagement with their followers, consider offering them a long-term contract. These influencers can generate higher ROI because of the authentic connection they’ve developed with their online communities, and by nurturing these relationships and communities you can develop these influencers into brand evangelists or ambassadors.

You could then create a community or network of brand ambassadors to facilitate collaboration and cross-promotion, exponentially expanding the potential audience for the brand as well as each influencer (a win-win!).

A closeup of a film strip, showing a photo of three young, female-presenting people, two Black and one white with red hair, symbolizing a modern-day influencer community

2. Always Demonstrate Transparency and Authenticity

More than one-billion dollars is spent on influencers with fake followings, and nearly four in 10 influencers artificially inflate their follower counts. This is why two thirds of brands are concerned about influencer fraud, and 94% of consumers say they’re more likely to be loyal to a brand that offers transparency.

However, this isn’t the only way marketing teams get caught spending big dollars on influencer marketing campaigns that don’t deliver. As calls for transparency and authenticity have reverberated across the world of digital marketing, it’s become ever more obvious that even the most popular and compelling influencers can’t stir up enough fervor for a product or service they don’t genuinely endorse.

Avoid “influencers” who contact your company offering to help; often, they take your money or free product, and don’t produce promised results
Do your research and only build relationships with influencers whose audiences are actively engaged
Nurture your influencers and build influencer communities and networks
Provide your influencers campaign guidance and offer post-campaign feedback and optimization techniques

Over time, your organization and your influencers will prove themselves transparent and authentic. And, fortunately, 85% of consumers say they’ll return to a brand even after a bad customer experience if the company has built a reputation based on a history of transparency.

3. Equitably Employ and Include a Diversity of Influencer Marketers

Another way to build trust for your brand is to demonstrate a commitment to diversity, equity and inclusion — and employing influencers with different backgrounds is no longer enough.

Almost nine in 10 millennials say it’s crucial for brands they support to be aligned with their values, and more than 70% will pay more for a product if even part of the proceeds are donated to charity. In fact, 70% of all consumers now feel that it’s important for brands to take a stance on political and social issues, and two thirds have taken an action after seeing a brand ad or marketing message they believed to be diverse or inclusive.

Although some brands have found incredible success emphasizing the exclusivity of what they offer, even while diversifying the models in their ads, creating a culture of inclusivity (and equity) is what allows your target audience to connect with your brand. As they say: diversity is being invited to the party, inclusion is being asked to dance.

So what does that mean for marketers looking to develop an influencer marketing strategy? It means equitably including everyone — and it starts with who comprises your marketing team.

Build a diverse team (organizations that are intentional in hiring, retaining and developing diverse talent are 19% more innovative, earn 140% more revenue and are 35% more likely to outperform their competitors)
Actively develop and promote people from traditionally marginalized communities
Have the difficult conversations
Immerse yourselves in different cultures
Solicit outside contributions from underrepresented populations
Prioritize intimacy, authenticity and transparency with your customers
Focus on tone of voice

A bright, smiling, young, light-skinned Muslim influencer in a black hijab, gray sweatshirt and silver jewelry speaks on her mobile phone

4. Incorporate Influencer Marketing Across Channels and Devices

Google has found that 98% of Americans switch between platforms and devices on the same day. This is why marketers who simply use three or more channels in any one campaign deliver a 287% higher purchase rate. Of course, if you optimize how you use these channels, you can experience even better results.

While multichannel marketing allows you to cast your net as widely as possible to reach more consumers and build brand awareness, marketers who commit to omnichannel marketing provide a consistent customer experience across channels — and retain nearly nine of 10 customers (versus 33% for those who don’t)! So what does omnichannel marketing mean?

Ninety percent of all consumers expect consistency in their interactions, no matter where they are. Omnichannel marketing represents a rethinking of the customer lifecycle, with a focus on providing a seamless and personalized user experience across all channels relevant to the buyer journey.

For organizations invested in influencer marketing, and particularly those who’ve nurtured influencer communities and developed brand ambassadors, this means leveraging your influencers and their stories across all platforms, and from lead generation to sales and customer experience.

5. Invest in an Influencer Marketing Platform

A lot has changed since 2006, when CX was all about call centers and Izea founder and CEO Ted Murphy created the first influencer marketing platform, PayPerPost. At the time, blogs were still called “online diaries!”

By 2016, 70% of influencers already felt the most effective way to collaborate with brands was through an influencer marketing platform, or influencer marketing hub; by 2020, there were 1,360 agencies dedicated entirely to influencer marketing.

Unless you’re part of the mere 22% of brands that think it’s easy to find the right influencer, you’re probably asking yourself:

Should I hire a third party to manage my influencer marketing program, or should I keep it in house?
If I keep it in house, what tools are available to improve our likelihood of success?

Although some believe businesses should hire an influencer marketing agency to develop and oversee their marketing efforts, and I have worked at a number of these agencies, I believe companies that truly know themselves, their mission and their products/services are best equipped to identify their target audiences, create their user personas, and present themselves publicly with passion and authenticity.

Thus, I believe the pressing question for marketing teams is whether an influencer marketing platform or other tool can aid them in attracting, retaining and nurturing effective influencers and/or influencer communities.

The silhouettes of four young, in-shape, shirtless men in bathing suits standing and sitting on a door-, window- and roof-less Jeep Wrangler, looking out at the ocean on a sunny, partly cloudy day

The Top 15+ Influencer Marketing Platforms

Influencer marketing platforms provide:

Influencer discovery tools for brands and agencies
Searchable databases of potential influencers
Influencer marketplaces
Influencer vetting
Relationship management tools
Campaign management tools
Content amplification capabilities
Advanced analytics
Third-party integrations

To determine which performance-driven influencer or creator marketing platform is best for you, consider requesting a demo from two or more of the following 14 highly rated options: