March 2013 - c3centricity | c3centricity

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The Magic of 3: Taking a New Perspective

Like many successful entrepreneurs, I enjoy helping local associations with their marketing problems whenever I can. It seems that often simply offering a new perspective can be all that is needed to move things forward. 

Recently, I ran a re-positioning session for my local outdoor sports association and during it, I realised that many of the things we were doing together would also be of value to other organisations, big or small, who are in a similar situation.

For this reason I share some of the brainstorming we did, in the hope that it will inspire you to try something similar.

Background completeness defines the outcome

The president of the association asked for my advice because they were losing participation in their organised events. As a keen member myself, I offered to run a brainstorming session with his committee members, to see if together we could find some solutions. I started by gathering information from all the guides, which in itself was a challenge. As motivation was low, response rate was only around 25-30% and even then some of the responses were only general comments rather than specific responses to the questions asked. Things were even worse than I had anticipated!

However, this actually provided me with the “burning platform” that I presented to the president. If he didn’t address the issues immediately, I told him that his organisation wouldn’t exist 2-3 years from now! The low response rate to the study and the drop in event participation already confirmed this, but he hadn’t “wanted to see the facts”. This is where an external perspective can be invaluable.

Whenever you are faced with underst anding a situation, it is vital to start with a review of all relevant data and knowledge, and if incomplete, to complement it with an additional information gathering exercise. If you can’t precisely assess the current situation and identify all the relevant issues, your resultant brainstorming will be less effective than it could or should be.

Prioritising 3 areas only increases the level of success

It was clear from the answers I did receive that there were a number of related issues. The low participation of the organised events, was leading to the low motivation of the guides. The low awareness level and lack of visibility of the events, led to low participation in them. A vicious circle it was imperative to break. One positive sign however, was that past participants were very keen on attending future events, so it wasn’t the “product” that was at fault; people just didn’t know about them.

Another finding, that I often also see when addressing issues with my clients, is that the target audience for this association’s events, was ill-defined. Each guide had a different perspective of the people they were trying to attract. They were being defined as children, schools, companies, ladies 40-65 y.o. expatriates, those interested in history / geography, etc etc. As you can see, a wide variety of answers that wasn’t going to improve the overall cohesiveness of the association. When I dug deeper, I found that the differing topics of expertise of the guides meant that they each had in mind different target groups for their own offers. I suggested that a solution could be to group these into three major segments and to then attribute appropriate offers to each of them separately.

Three is a magic number with many uses. In this case, three segments were sufficient to offer diversity, whilst at the same time seeming achievable to attract rather than overwhelming. I also recommend choosing three areas to work on at a time and then breaking those down into sub-points, ideally three if you want to continue to work with the magic number. (If you are interested in the theory behind the power of three, then make a search online; there are innumerable examples of different uses given there, from various industries)

Choose impact over the ease of your actions

Once the three main areas have been identified, prioritise actions based upon the impact of each outcome. For example in their case, we reviewed ways to increase their visibility. Whilst their current website was quite useful, according to Alexa it was getting hardly any visits, so I suggested starting with other ways to improve visibility rather than updating it. Even if they improved their site, it would have little or no impact on the problem they were looking to address. It was an action that was certainly easy to do, and enjoyable to work on, but other actions would bring a better return for their efforts.

In line with my preference of working in threes, I will stop here and open up the discussion to you. Why not review why you may not be succeeding in your plans? Are you trying to do too much? Are you looking for the easy way out? Are your actions lacking the desired impact?

If you answered yes to any (or all) of these three questions, use the above example to rethink the problem through. Start by taking a step back and evaluating the situation from a new perspective. Ask a colleague or even someone outside the company to review the information you have on the issue and to give you their opinion. Sometimes that is all it takes to get to the real situation.

Then identify three areas to work on. Since this is often easier said than done, start by making a list of all the possible areas impacting the situation and then prioritise them. By choosing just three areas to concentrate on, it will enable you to better focus, which will in turn make them easier to achieve. And if you complete them and still have more time or budget resources, you can then tackle the next three on the list, and so on.

One last word on prioritising the areas on which to concentrate; if as was the case for this organisation, your target audience is not well defined, you are unlikely to succeed with your other priorities. Therefore reviewing and completing the definition of your target audience should always be the first area to review.

Finally identify the actions needed for each of the three areas to be addressed. Again, as in the above example, don’t jump on the first solution found. For instance, since the association with which I was working had a webmaster, it was easy for them to update their website. However, as mentioned, it would have had little impact on increasing the awareness of their events. We decided on a different set of actions to improve their communications and made updating the website a secondary action, once their rating on Alexa started to increase.

Are you struggling with issues that need an external perspective? Why not ask us to organise a 1-Day Catalyst session. We will get to the center of your issues and opportunities, and define actions with you that will provide the best return for your efforts. No obligation, just INSPIRATION!

For more information or to review other support options we can provide, just drop us a line at info@C3Centricity.com or check out our website: www.C3Centricity.com

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Five Ideas to Improve your Insight Development

Last week I spoke about updating your market research toolbox and how to review your metrics. This week I want to take the next logical step by turning the knowledge you gather into actionable insights.

Insights are the pot of gold that many businesses dream of but rarely find. Why is that? Are you one of them? If so then I have some ideas on how you can get better at developing insights.

#1. Insight doesn’t come from a single market research study

Management often thinks that insight is “just another word for market research”. I remember one of my previous CEOs saying exactly that to me just before he addressed the whole team at our annual conference; you can imagine what a panic I was in as he walked up to the mike!

Insights are tough to develop and are rarely, if ever, developed from a single piece of market research. Each market research project that is conducted should be designed to gather information in order to answer one or more questions. Whilst it may enable a business to make a more informed decision based upon the objectives, insight development is quite a different process.

Insight development involves integrating, analysing and synthesising all the data and information you have about a category or segment user, summarising it into knowledge and underst anding, and then developing the insight. All br ands should have (at least) one insight on which its image, personality and communication is built. For example

  • AXE (Lynx in UK): (young) men want to attract as many beautiful and sexy women as possible
  • UK anti-smoking: smokers don’t want to have to live with the guilt of having damaged a child’s health through their smoking

Insight development will provide the basis on which you will define the actions that are needed to change the behaviour of your target audience.

#2. Insight development is based upon a desired behavioural change

When sales, marketing or management look to change a category, segment or br and customer’s behaviour, it is with the objective of improving their business results. For instance:

  • From buying a competitive br and to purchasing yours
  • From using your services once a month, to once a week
  • Moving customers’ belief about your br and from a traditional to a more modern image
  • Changing customers’ perceptions about your value from expensive to good value for money

Because insights are based on a desired behavioural change, they usually contain an emotional element that is communicated through advertising. The emotion that is shown in the advertisement is more likely to resonate with customers, who are then motivated to take the desired action.

#3. Insight development needs more than Insight professionals

Although this may sound counter-productive, insights really do benefit from working from differing perspectives to get to that “ah-ha” moment, that many refer to. A deep underst anding of customers and their reasons for behaving in a certain way, comes from looking at all aspects of their lifestyle. If you only review the actual moment when they choose or use a product or service, it is highly unlikely that you will develop that deep underst anding. What happens before and afterwards also lead to that choice or that of their next purchase.

This is why it is important to work as a team when developing insights. Depending upon the issue or opportunity identified, the team can be made up of people from marketing, sales, trade marketing, production, packaging, advertising, innovation, distribution. And these people don’t necessarily need to work on the category in question alone; sometimes it is by taking ideas from different categories that real insights are developed.

#4. Insights are usually based on a human truth

The insights that resonate best with people are those that are based upon a human truth. A human truth is a statement that refers to human beings, irrespective of race, colour or creed. It is a powerful and compelling fact of attitudes and behaviour that is rooted in fundamental human values. It is a fact that is obvious when quoted, but is often ignored or forgotten in daily business. Human truths are linked to human needs and although questioned in some circles today, Maslow’s hierarchy is still seen as one of the most relevant sources of classification of human needs.

Examples of human truths include:

  • Parents want to protect their children
  • Men and women want to find love
  • Children want to be better than others

If you are struggling to find an insight, it can help to review the level of need of your target audience and see how your br and can respond to help answer it.

#5. Insights aren’t always category specific

Following on from the above points, it is particularly interesting that once found, an insight can be adapted to be used with different br ands. There are many examples of this happening, particularly amongst major FMCG / CPG companies.

Insight: Parents want to protect their children so that they grow up happy and healthy

  • Unilever’s Omo: shows that a good mother lets her child experiment and learn – even if this means getting dirty. If you don’t know their advertising, then check out one of their latest from this long-running campaign: Unilever Omo “Dirt is Good” ad on YouTube
  • Nestlé’s Nido: illustrates this need as a mother providing the nourishment for healthy growth which allows her children to explore the outside world safely. If you would like to see a typical advertisement, check it out on YouTube here. Interestingly, Nestlé has used this same insight to develop advertising for its bottled water in Asia and pet food in the Americas too.

Insight: Young women want to be appreciated for who they are ie not models

  • Unilever’s Dove was the first br and to recognise and benefit from this insight. Their famous Real Beauty campaign resonated so well with young women that many other br ands copied it, especially their Evolution film. Here is one of their more recent ads that I’m sure will give you goosebumps.
  • The Swiss Supermarket chain Migros has a store br and “I am” which uses the same insight across all the health and beauty products. Somewhat unusually, the br and name itself is based upon the same insight, and its advertising repeats it several times: “I am – what I am“.

So there you have them, the five ideas that I came up with to help you to develop better insights more easily. Although you probably already have your own process for creating them, I know from experience how hard it can be to find insights from all the information you gather. I hope this short article has assisted you in your search for those “golden nuggets”. Do share your own ideas for making insight development easier, I would love to hear from you.

For more information on Insight development, please check out our website here: https://www.c3centricity.com/home/underst anding

Do you need help developing or updating your own Insight development process? C3Centricity offers a 1-Day Catalyst session, where we work with your team to review and revitalise your own insight process, or to define one if you do not as yet have a proprietary one.

Contact us for an informal chat about it. No obligation, just INSPIRATION!

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Are you Happy with your Market Research?

Next week is the official start of Spring in Europe, although in the US you have already moved your clocks forward by an hour.

Therefore, this seems to be a good time to review what market research we are running and spring-clean our toolbox in line with our new company objectives. If you would like some help in doing this then please read on for some original ideas on how to make it all easier.

In order to decide on the tools you need, it of course depends upon the maturity of your market, the size of your budget, as well as the position of your br ands in their life-cycles.

Last Spring, we used the 5Ps of marketing as a basis for the review of the market research toolbox; if you didn’t see it or would like to re-read it then you can find it here. This year I will be taking into account the three elements mentioned above and looking at how you might adapt the tools in consequence. Whatever stage your br and is in, however, there are some metrics that you will always want to follow. These include awareness, usage, product performance versus competition and advertising & communication (including pack and web) effectiveness.

 

Market maturity

Are you competing in a mature category or is it still growing strongly? Mature markets tend to change more slowly; consumers have their purchase habits settled and in some cases choose from amongst a portfolio of br ands, between which they switch depending upon current promotions.

If you are competing in such a market, then you can probably manage with monthly or bi-monthly or even less frequent data about stocks, pricing and shares. Unless a newcomer is launched onto the market, many mature categories have br ands that are being “milked” by their manufacturers, with perhaps little investment in communications. Therefore it is price that usually dominate share changes and can to a large extent be predicted.

In terms of market research needs, retail audits, price tracking and promotional monitoring are all important metrics to gather. Br and Image studies are also important, but can be limited to every few years, when real changes are more likely to be recorded. Too frequent measurement of a static market is likely to show only noise from sample error rather than true shifts in image. If you are in a service industry, then loyalty and satisfaction (NPS) metrics are also useful. (If you’re not quite sure what NPS is or how to use it, then HubSpot did a great Infographic a few months back that I recommend reading)

If however, you are competing in a new or strongly growing category, you will need far more frequent data in order to make informed decisions. In these cases, retail chain data, shares, stocks, out-of-stocks and pricing will be vital to follow, ideally on a weekly basis. Br and Image data should be gathered annually, but everyone should underst and that in a fast moving market, things can alter rapidly, so the ratings are merely snapshot comparisons versus competition. To complement image data, social media monitoring can provide additional information on how your br and’s equity may be changing. Check out what is being said on LinkedIn groups, your Facebook page and those of your competitors, as well as on Twitter using a “#word” search.

 

Size of the Budget

Although companies should invest wisely in terms of their information needs, in reality budgets are (too?) often defined based upon previous year’s spend rather than current investment needs. It is also not wise to rely solely on a sales percentage for market research, nor marketing come to that, since you should arguably invest more in a growing br and. Many times companies work with this percentage model which seriously limits the potential of promising br ands through lack of customer awareness and information for decision making.

In addition, when budgets are tight, organisations can sometimes be tempted to use qualitative research rather than the needed quantitative data. If you need metrics, then you have to run the appropriate methodology; decisions cannot be taken based upon a few group discussions alone. And please don’t think about doubling the number of groups to get a larger sample! The results will remain qualitative in nature whatever the sample size.

 

Br and Life-cycle stage

As mentioned above, we often need more information when a br and is stagnating or declining than when it is growing, to underst and exactly what is going on. You could argue that when it is decreasing it is (almost) too late, so in fact it is important to find ways to forewarn potential declines before they happen. In many cases a br and’s image will start to stagnate or decline long before there is any dip in sales. Therefore br and equity measurement is particularly vital for a maturing br and. Other ways to revitalise such br ands is through renovation and this is where concept and pack testing come into their own. You may also decide to look at pricing and new campaigns developments which will also need verification.

When a new product or service is launched, it is wise to do some quick tracking of off-take to gauge likely success. Early measurement can help you make small adjustments to the offer before many people have considered or tried it, reducing the risk of failure in the mid-term. Of course once launched the br and can also be added to your ongoing monitoring of the basic information mentioned above.

If you have information and answers to all of these questions, whatever the stage of your market, category or br and, then your MR house is in good order. If not, then perhaps it is time to update your toolbox with newer, better tools.

Do you review and Spring clean your toolbox every year? What changes have you identified as being needed in your own toolbox? It would be great to compare our spring cleaning efforts, so please add your thoughts in the comments below.

For more information on identifying KPI’s and performance metrics please check out our website here: https://www.c3centricity.com/home/underst and

Need help running your own MR review? C3Centricity offers a 1-Day Catalyst session, where we work with your team to identify priorities & needed change in your processes. Contact us here for an informal chat about it. No obligation, just INSPIRATION!

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Why Implementing Global Creative is Risky

We are pleased to share with you another guest post from C3Centricity partner PhaseOne, our communication experts. This week Terry Villines, their SVP speaks about the challenges of taking campaigns global.

Why implementing global creative is risky:  5 market factors must align. If just one of them is off, the entire initiative will likely fail!

Most major, global organizations have tried it – attempted to use the same creative around the world, across markets.   Coca-Cola has tried it, so has Procter & Gamble, Unilever and even luxury br ands like Rolex and Patek Phillipe.

The argument for implementing a creative campaign on a global scale is strong.  When it works, it saves money (a lot of money); it provides br and stewards with a high level of control; it also ensures consistent implementation of a br and strategy with no wavering.  And, when it works, it can work BIG – take for instance Unilever’s Dove br and and their Real Beauty campaign from a few years ago.  This global work beat the odds and changed the way people think of beauty and changed the way we as advertisers communicate about beauty.

But what about all those cases where it doesn’t work?  Why does a campaign with a strong launch in Italy not work in the UK?  What about those powerful US ads that when taken to Europe, Asia or South America fall flat?  In examining case after case it becomes clear that there has to be almost precise alignment across 5 different market factors for a campaign to be successful across markets – if even one of them is off, the campaign and its investment are lost.

#1. Your Br and’s Equity

Does your target audience think about your br and the same way across all markets — do they have the same associations?  Do the br and’s values and its personality resonate at the same levels across all markets?  If so, then you are one step closer to having confidence global creative will work.  But, if awareness is high and attitudes are strong in one market and they suffer in another, then there is a high level of certainty that the same advertising will not work in both markets.

 

 #2. Your Br and Market Share / Market Position

Do you have consistent market share in each and every market in which you compete?  If you do, you are one of a very rare breed; however, it is much more likely that your market position varies.  Whether you’re a strong leader with few challengers working to grow the category and hold market share, or a challenger against stronger br ands trying to steal market share, it is almost impossible for the same kind of creative and messaging to work across all of these situations.

 

 #3. Competitive Actions

In examining the competitive environment, a number of variables must be considered.  How many competitors are there? – very crowded categories require different actions than less crowded categories.  What is the level of spend by competitors? – some competitors are more dedicated to certain markets, investing greatly in them.  Are they buying market share?  Are you prepared to compete?  What are your competitors claiming? – we often see that the claims competitors make vary by market.  Just because your message is perceived to be different in one market doesn’t mean it will be perceived as distinctive on a global scale.

 

#4. Category Penetration / Maturity

One of the biggest mistakes we see marketers make today is to assume that advertising they create for well established br ands within very mature markets will work in the markets where the category as a whole is just emerging – those markets from which future growth will come.  What they are forgetting is that the audience’s familiarity with the category dictates how much you have to explain, versus what you can assume they will readily know.

 

 #5. Target Audience / Cultural

We as human beings are complex.  Yes, there are some core things that tie us together – we all have needs that we strive to satisfy.  But even then, what our needs are and how they are expressed vary – much of that driven by culture.  More times than not, global campaigns fail by not taking into consideration the cultural differences between the markets.  This is particularly true when humor is involved.  What one culture views as funny could be offensive to another. Culture can also impact how our target audiences approach the category, for example for cleaning products – what “clean” means varies across cultures.  We see great variance for games and toys – are they for independent enjoyment or do they bring people together?  There are very few categories in which we have worked where the target audience’s approach to the category (why they turn to that category) is universal.

If you hope to behave the same across all markets, but there is not alignment across all 5 of these factors, then there is a very high probability of failure.  BUT, it doesn’t mean that you have to avoid a global campaign at all cost.  Making up for market difference through other behaviors (Sampling, Public Relations, Below-the-Line efforts) can overcome an imbalance.

What top-of-mind global campaigns can you think of?  Were they truly global (same creative around the world) or where they driven by a global strategy with local implementation?  With the complex differences we have around the world, do you think a global creative campaign is possible?

If you would like help in taking locally successful campaigns global, then please contact us for an informal chat. For more information about how to better connect with your customers, please check out our website: https://www.c3centricity.com/home/engage

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Is there a Future for Insight Departments?

Many organisations have revamped their Market Research groups as Insight Departments in the past five to ten years. However, it takes more than a name change for those involved to achieve the recognition they deserve. If you work in or with such a department, then read on, as I have some ideas on how you can achieve this.

Last month Forrester issued the results of some research they had done looking into the Future of Market Research in 2013. Their conclusions were:

  1. 2013 is the year of truth for market insights: their future will depend on how successful they are at getting increased investments and tapping into alternative information sources than just market research
  2. Market insights departments need to invest in knowledge, technology and skills: the group will need to better respond to the fast-paced management need for the customer underst anding that can impact their business decisions
  3. Vendors have to show their worth: suppliers have become commodity providers as they have allowed their clients to select on price more than differentiation.
  4. Future market insights solutions have to connect the dots: single source is no longer sufficient – if it ever was – and vendors need to be able to better respond to the need for 360 degree perspectives.

Whilst I certainly agree with these conclusions, which in fact impact both supplier and company insight professionals, I believe that most of these needs are not really new. Some more forward-thinking organisations have in fact already identified and adjusted to these changed needs. So what is there to do if you haven’t? How do you prioritise what needs to be done in your organisation? Here is my top 5 tips:

#1. Find out what management really needs

It is amazing how many market research and insight groups still have little, or no contact with top management. So how can they possibly be perceived as value creators for the business? It is not enough just to attend the presentations of the business plans or to get a copy of them to read afterwards. You need to talk with those who wrote them and those who will implement them. Ideally, you should be instrumental in helping to draw them up. Get out of your offices and into the boardrooms and hallowed top-floor offices. Listen hard and ask hard questions. Make sure you underst and where the company is going and your role in getting there.

#2. Review the information you currently collect

Most organisations have regular on-going measurements of some sort, which probably haven’t changed in years, if not decades! Now you know what the business needs, review, revamp or retire the studies that are no longer needed. Show that you are using your budget wisely, to provide management with the information and knowledge they need, to help them to take better decisions.

#3. Revamp what is important

Those projects that do add value to the organisation will certainly need updating on a regular, possibly annual basis. Do your retail audits reflect the current market situation? Are the attributes you follow in your br and image trackers accurately covering the strengths of the latest competitive launches as well as your own? Take each study and adjust for each br and in collaboration with your marketing AND sales teams.

#4. Share the knowledge

Many organisations are afraid of competition getting a hold of their information, and therefore do not make it widely available within the organisation. Have you never learnt about something going on in your own organisation, but from competition? I know I have. Therefore the risks of tipping off the competition are far lower than others may think, so start to share the information you gather. It is amazing how much you can save when you do, as other departments often then discover that they are conducting research, or buying information and reports that are already available in-house.

#5. Integrate for Insight

Despite some managers still believing that insight is just another word for market research, insights are in fact developed out of multiple information sources. Whilst Forrester suggested that this could be managed by your suppliers, I believe that whilst they may help, true insights come from integrating information and knowledge from multiple sources, both internal and external. This means not only different projects, but also different departments that have differing perspectives and perhaps also different connection points with the customer. The insight group can help bring all this underst anding together and develop actionable insights for profitable business growth.

Well this is my starter for five. What else would you add to help bring insight departments into the center of the brave new world of customer centric organisations? If you carry out these first five steps that I have mentioned, then you will start to get more appreciation for the real value you are adding to the business and your budgets might even be increased; which will then lead to even greater value. Now that’s what I call a win-win and a really bright future for everyone in Insight! What do you think?

For ideas and training on insight development check out our website: http://www,c3centricity.com/home/underst and

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

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