Enjoy the ride: Harley Davidson's user community

User communities, usually associated with technology products, help customers connect with each other and the brand. User communities are not just for computer products, however. An exceptional example of developing and sustaining an active, dynamic user community is Harley-Davidson Motorcycles. Harley Executive Ron Hutchinson outlined the motorcycle company's user community and its role in entering the China market at the recent "Creating Value through Service" symposium in Shanghai. The event was organized by the W. P. Carey School's Center for Services Leadership and the Center of Service Marketing and Management at Fudan University.

Type "Apple User Group" into any Internet search engine and over 2 million sites appear, representing communities around the globe. Group members meet like-minded people, get help on technical problems and attend on- and off-line events. User communities are not just for computer products, however. High-end low-frequency products like automobiles benefit from established user communities, educating and encouraging new customers while promoting services or accessories to existing customers.

An exceptional example of developing and sustaining an active, dynamic user community is Harley-Davidson Motorcycles. Harley Executive Ron Hutchinson outlined the motorcycle company's user community and its role in entering the China market at the recent "Creating Value through Service" symposium in Shanghai. The event was organized by the W. P. Carey School's Center for Services Leadership and the Center of Service Marketing and Management at Fudan University.

"Let me be very clear about one thing," said Ron Hutchinson, senior vice president of product development for Harley-Davidson, after rumbling to the stage on a sleek chrome hog, "Harley-Davidson is not in the transportation business. We are, however, in the entertainment business. Now don't get me wrong. People all over the world hop on a motorcycle and ride from point A to point B.

But the reason they do that is they're not worried about point A or point B, but rather they want to enjoy the ride." Enjoying the experience is central to Harley's corporate culture, according to Hutchinson. "Our products allow the rider to escape the daily humdrum of life. It's the experience through the use of the products that we are selling."

Enjoy the ride

Given its "enjoy the ride" mantra, it's not surprising that Harley supports a lively and diverse user community. Harley Owner's Group (HOG) boasts one million members around the world. HOG sponsors rides, rallies and rental activities for its registered members. "HOG makes it much easier for our customers to get connected not only to the brand, but to each other.

It's about giving people opportunities to connect with other riders and get the most out of their Harley experience,"said Hutchinson. HOG's tremendous success lies in strong service support, executive commitment and participation, and positive customer relationships. Harley's other paid services, including finance, insurance, delivery, rental, rider training and travel programs all help customers get on the bike and experience that legendary ride at HOG rallies.

HOG events do not only include customers. All Harley senior management are encouraged and expected to attend at least two to three events a year. "We use those events to understand how customers are using the bikes and what they want from their motorcycles. That's customer service," said Hutchinson.

The door to a relationship

The Harley-Davidson's user community really starts at the dealership. Comfortable customer lounges invite visitors to browse bike magazines and chat with other customers. Owners and franchisees bring their own individual style to each showroom. "While we certainly have global standards," Hutchinson said, "we allow our dealers to express themselves. We give them the freedom to incorporate their perceptions of motorcycling in their stores."

The sales people themselves form another part of the user community — since most staff own a bike. "From our assembly line workers to our CEO, we have riders at every rank. We encourage our employees, not just to learn how to ride but we make it easy for them to buy a motorcycle," said Hutchinson. Most importantly, inside these dealerships, end of sale is not the focus. Harley employees see sales as "opening a door to a relationship," Hutchinson said.

Harley's perception of sales as the beginning rather than the end highlights the importance of the user community. "In the case of the Harley-Davidson, people aren't buying a bike every year — these are bread-and-butter customers. Yet Harley keeps these customers over many years," commented Stephen Brown, executive director of W. P. Carey School's Center for Services Leadership. "Pursuing a relationship with your customers is a challenge but also an opportunity," said Kevin Burkhard, director of strategic initiatives at the Center for Services Leadership.

"If you look at traditional manufacturing, companies build products then go out and try to sell them. When you move toward building customer relationships, it's challenging because it requires investment in a different set of interactions aimed at delivering a broader experience. But if you build strong customer relationships like Harley-Davidson has done, you have a differentiator that's very difficult for competitors to copy."

Overcoming road blocks in China

Harley-Davidson recently entered China, an extremely competitive market. Despite serious roadblocks — inner-city riding and licensing restrictions, heavy competition, and little biking culture — Harley remains confident that its unique user community and strong customer relationships will offer Chinese riders something new.

In Shanghai, the location of Harley's new dealership and Asia sales office, motorcycles are restricted from the downtown area, defined as encompassing over 100 roads inside the outer ring road of the city. In the congested urban streets across the rest of China, city officials tend to restrict motorcycles, rather than cars, in order to decrease traffic. Now, the biggest 80 cities across China have some sort of motorcycle licensing, riding or ownership restrictions.

Harley-Davidson executives continue to discuss restrictions with local and national government bodies. Yet, interest has grown for the two established HOG chapters and the groups plan a trip through western China later this year. But it's still too early to determine whether the lure of the open road will prove irresistible to Chinese consumers. Harley believes it unquestionably will.

"China is an extraordinary beautiful country that we believe is best experienced in the saddle of a Harley-Davidson. Why? Because we truly believe the desire to explore a beautiful country, experience your surroundings, and have connection with others is a universal dream," said Hutchinson. According to sales staff, the six-month-old dealership in Shanghai sells an average of four bikes a month.

As sales increase, time will tell what the Chinese Harley-Davidson user community looks and feels like. "I am a member of Shanghai HOG and we will develop our own biking culture," Alden Yan, sales representative at the Shanghai dealership said. "I do not have long hair or a tattoo, but I have freedom in my heart."

Bottom Line:

• User communities, usually associated with technology products, help customers connect with each other and the brand.
• Harley-Davidson's Harley Owner's Group is an exceptional example of an active and diverse user community.
• Successful user communities need positive customer relationships, executive commitment and participation, and related service support .
• Harley-Davidson hopes its user community proves a strong draw for Chinese customers.

The W. P. Carey MBA-Shanghai, launched in 2003, is an accelerated executive program for CEO-level participants and top government officials. The vision of the program is to cultivate world-class executives for China's state-owned enterprises and to advance Sino-U.S. trading relationship.