Zipcar has been around for 13 years and is often cited as the first true example of collaborative consumption. So successful has it been, that a phrase - 'Zipcar capitalism' – has even been coined to describe the business model. Pamela Whitby reports

When Zipcar launched in 2000 there was a huge amount of scepticism around how the sharing model would work on an operational level. How wrong those sceptics were. Today Zipcar has a presence in 21 major metros around the world, 300 college campuses and 11 airports – and it is also a profitable enterprise.

For Brian Harrington, chief marketing officer, Zipcar a big part of the group's success is down to having a high-touch approach to customers. In order to achieve this you need to know what your customers want, so each year Zipcar runs a survey to find out what the so-called millennial generation is thinking. What they have found year-on-year is that this generation – which today numbers around 82 million – values access over ownership. "The millennials have really driven the change in attitude about the sharing economy," says Harrington, who will be speaking at the Travel Distribution Summit, North America (23-24 September) "This generation is also leveraging technology, social networks and innovative new business models to give them 'on demand' access for what they desire."

Social media, technology and innovation are all things that Zipcar takes seriously, so let's take a closer look at how the company is addressing these issues.

Social media strategy

Social media is certainly an important part of Zipcar's communications mix. "We actively monitor the space and engage our members in a dialogue via Facebook, Google+, Twitter, Instagram, Yelp and LinkedIn," explains Harrington. The company also maintains both national and local Twitter handles to ensure local relevancy. There is a national Facebook presence as well as ZipcarU, a Facebook site specifically designed for our University segment. On LinkedIn the group fosters relationships with Zipcar for Business customers.

Social media is really about engagement and relationships and there are three relationships within the Zipcar service.

1. The relationship between the company and its members

2. The member's relationship with their car

3. The relationship members have with one another.

"As a brand this is a huge opportunity because it means we can relate to our members in a very multi-dimensional way," says Harrington. Marketing is tackled at all three levels but what is really unique is the relationship members have with their cars! "This can be emotional since many members often drive the same cars," Harrington explains. Each Zipcar – and there are 30 models, which could be anything from a BMW to a pick-up truck or sedan - has a name, usually given by members. "One of my favourite moments at Zipcar was this Valentine's Day where employees signed cards to some of our highest value members from the car they drive," says Harrington. "Our marketing team personally signed cards that said: 'I honkin' love you' from Applesauce the Audi A3." This is just one example of a high-touch member interaction that Zipcar uses.

Harrington acknowledges that their job is made a bit easier because Zipcar vehicles do transport people at important moments in their lives – to a marriage proposal on the Oregon coast, to the delivery room in Chicago, to a first job interview in Baltimore, to move furniture out of a girlfriend's apartment after a break-up. "These are real stories we hear all the time and we are invited to be part of them," says Harrington, adding that this results in a number of one-on-one interactions that are authentic and meaningful. When members approach Zipcar with a story, they are encouraged to share it in a public space and many do.

The original social media

Zipcar is very much in the real world too and seeks to engage members by inviting them out for an ice cream or burrito, for example. "Talking with your customers is the original 'social media' and allows us to gather important insights directly about what is important to them – it also happens to be a lot more fun than a focus group."

The company also does a lot of traditional marketing such as advertising and public relations. "We know that our members are educated and tech-savvy, and we want to ensure we have a presence on the websites they are visiting and in the publications they are reading," he says.

Talking technology

Zipcar is looking deeply into customising the in-car experience to match the user's personal preferences. "As you can imagine – there's some incredible potential to make the user experience better and better, and we believe we've just scratched the surface of what's truly possible," he says.

For Harrington we can expect to see a very different urban mobility landscape in the not too distant future. And this is all because of the connected car and wireless technology. He believes we'll see many fewer personally owned cars and wirelessly enabled smart parking will be mainstream. "The concept of having to drive around endlessly looking for a vacant parking space will disappear. People will use technology to help find parking and pay-as-you-go cars will pave the way of the future of transportation."

Giving the customer what they want

Zipcar has over 10,000 cars and membership is becoming increasingly valuable for members who travel for business or leisure. While the company has always been about wheels when you want them its recent expansion to 11 airports and addition of new markets such as Minneapolis now means members can have wheels when and where they want them on a self-service basis. The availability of Zipcars at airports provides increased options and flexibility for members who may not need a full day rental car, or for those who need to travel somewhere not easily accessible by public transit or who have a long layover.

So where to next? The aim, says Harrington, is to grow into new cities, and continue to attract new members in cities where they already have a presence, while working toward realising the vision of a world where car sharers outnumber car owners.

To hear more insights from Brian Harrington, chief marketing officer, Zipcar join us at the Travel Distribution Summit, North America (23-24 September) where he will be speaking

Ina Zekaj
International Marketing Co-ordinator
+44 (0)207 375 7163
Reuters Events (former EyeforTravel)