Pop the myths about RedBalloon with
Josh Zail
Mission (The Why):
RedBalloon’s mission is to “discover and deliver
the best personalised experiences and gifts that inspire people to give, share
and live.” They pioneered experiential gifting in Australia , bringing to life the notion that incredible
experiences bring more happiness than a wrapped box.
Selling happiness is a great strategic move, but with
RedBalloon it’s not a hollow platitude. Founder Naomi Simson is “committed to
making the world a happier place”, and RedBalloon’s products are specifically chosen to deliver
maximum happiness. This is a company with a clearly defined purpose and vision,
which makes it a company worth talking about.
 |
| Everyone loves happiness |
Philosophy (The How):
RedBalloon are
known for their experience vouchers, and those vouchers are the engine of their
mission, representing their core philosophy of giving, sharing and living.
“Moments that start with RedBalloon stay with you forever” reads their Instagram tagline, and by delivering
unique and challenging experiences, RedBalloon ensures that the moments it
delivers to its customers become cherished memories.
Legal Structure (The What):
RedBalloon Pty Ltd is a Proprietary Limited
Australian Private Company. Since my last post was about a charity , I’ll
give you a quick refresher on the legal jargon. RedBalloon is a company owned by a small
number of ‘shareholders’, and doesn’t sell its shares to the public. And it’s
Australian. Yay.
Stuff it does (The More Interesting What):
RedBalloon
sells presents. But not just any presents. From skydiving and riding in a
supercar to spa treatments and wine tasting masterclasses, there’s an
experiential gift for everyone! I’m trying really hard
not to sound like an ad here, but it’s tough to describe the experiences
without getting a little bit excited.
 |
| Tell me that doesn't look like fun |
The website
contains enough details to satisfy even the most neurotic shopper. For each experience you’re told ‘Why you’ll love this’, ‘what’s included’ and exactly
what you’ll need to do ‘On the Day’ .
RedBalloon even suggests ‘Gift Ideas’ to suit any recipient, price
range and occasion. The suggestions include experiences and products, and my
favourite department is the ‘Personalised Gifts’, where you can make your mark on everything from a box of chocolates to a set
of golf accessories.
They've made
shopping for gifts so easy it’s actually fun, when typically, the process of
finding and purchasing a great present can be a daunting task, especially around the holiday season.
What they do well:
RedBalloon
doesn’t advertise, at least not like most companies. They now feature on
Facebook, Instagram, Flickr, and Twitter, but they’ve never been big on
traditional advertising media like TV, radio, newspapers or billboards. So what
was their marketing strategy before the social media era?
Word of
mouth. No other company I’ve seen has done so much with this age-old medium as
RedBalloon. Today, despite their extensive digital marketing campaigns,
RedBalloon still relies heavily on word of mouth. Creating an incredible
customer experience has been the centrepiece of their strategy from the start, and that’s what gets people
coming back for more, and raving to anyone within earshot.
Whatever the
experience, RedBalloon makes sure you have a bucket of fun
Room for Improvement:
Although all
of the experiences look incredible, I think RedBalloon could do better at the budget
end of the spectrum. The cheapest one I could find was a Half Day Caving Experience at $80, which is probably great value, but still a fair bit of money. I think
if they expanded their offering of budget options, RedBalloon could capture a lot
more business from the cash-strapped university student demographic who want to
impress with a gift, but are reluctant to part with $80.
Opportunities (Exciting stuff on the horizon):
RedBalloon
launched operations in New Zealand only a month ago, yet they’re already sizing up their prospects in a much
bigger market: Asia. Their business model relies on
offering a wide range of high-quality experiences, which means they’ll need to
form relationships with plenty of reputable tourism providers in the area. They’ll
need to recruit some local know-how to help them navigate the foreign terrain,
but they’ve already practiced the technique, hiring a former tourism NZ
employee to head up Products and Partnerships across the Tasman. If they can
build a team with the right expertise and connections to cultivate a reliable network
in Asia, the potential windfall is huge.
Unfair Advantage (why it deserves an entire blog post):
RedBalloon
value and respect their customers and their employees, treating them as people,
rather than assets or statistics. Named in the top 50 ‘Best Places to Work’ in Australia from 2009 to 2015, and
last year becoming the first Australian company to make the international list
of Most Freedom-Centered Workplaces, RedBalloon gets ahead by valuing its
people.
RedBalloon employees
are encouraged to put their unique personalities into their work.
RedBalloon’s
commitment to people courses through the company’s DNA and finds expression in
every facet of their operations, from the way they treat their staff, to the
products they deliver, their focus on customer experience, and their mission to
provide ‘good times’ and incredible memories.
Final Thoughts:
With the benefit of hindsight, RedBalloon seems like a genius
idea, but when it was founded, it represented a quantum leap in gift
methodology, and a huge associated risk. Naomi Simson and the team at RedBalloon
have passed the startup test with flying colours, and I can’t wait to see where
this exciting enterprise floats off to next.
