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How the Best Marketers are getting More Actionable Insights

Are you as busy as I am, as we plan on how we’re going to deliver on all our objectives before year-end? The last quarter of any year is a stressful time indeed, but this post on actionable insights is a must-read if you want to start 2020 ahead of the competition!

I’ve just returned from running a two-day workshop in Japan. The topic was “Insight into Action with Impact”. One of the things that I loved about the workshop was that marketing was invited too. Even though market research and insight (MRI) groups generally report into marketing in most companies, it seems to me that they are often working on different planets! In many organisations, the collaboration between these two departments goes no further than project briefings and results delivery.

This is not the case with my client in Tokyo; this MRI group has a wonderful working relationship, not only with marketing but also with Channel, Sales, R&D, Finance and even Legal. They have understood that insight development is too important to be left to the market research team alone and have worked hard to build strong relationships with all the other departments in their organisation.

Insight development is too important to be left to the market research team alone. #MRX #Marketing #Insight Click To Tweet

I am sure that many of you reading this, are asking why this is so important. It is NOT important, it is VITAL! Insights are the golden nuggets that we are all searching for. Successful companies depend upon deep customer insights to grow their business. They understand the power of engagement built on insight, to connect with and inspire their customers. And yet many companies continue to leave this to the insight team to develop and deliver on their own. It’s as if they believe that this group have some natural-born skill or magic that enables them to do it while others cannot. Don’t worry, we can all do it with the right training and a few tools.

Insights are the golden nuggets that we are all searching for. #MRX #Marketing #Insights Click To Tweet

Great companies understand the importance of insight generation and the challenges faced by everyone in developing them. This is why the best marketers search for greater collaboration. I always encourage the market researchers in my client companies to socialise with other departments, rather than sitting behind their computers all day. The best marketers already do this, do you?

I was encouraged to see that marketing have finally understood the importance of insights. In some recent research by Gartner CMOs selected market research and insights as just as important as marketing analytics and digital commerce (see graph below). Better late than never I suppose, but it always amazes me that marketing could put anything ahead of insights. After all, every action they decide to take should be based upon deep knowledge and understanding of the customers targeted.

actionable insights supporting marketing strategy

If you are struggling to develop insights that will truly resonate with your consumers or customers, then I suggest you follow these eight tips that I shared with my client’s marketing and insight teams last month.

Despite being some of the best marketers I know, they are still keen to progress their thinking and processes to embrace customer-centricity in every area of their organisation. This seems to be a trait of all successful companies, that they have a desire to improve and learn more. They never consider that they “know it all,” which is a reason I have often heard from businesses when I ask why they are not doing more to understand their customers!

1. Turn business objectives into customer-centric ones. If you are defining your objectives in terms of the business, such as increasing sales, beating the competition or increasing awareness, you are not thinking customer first.

Instead, identify what you want to change in terms of your customers’ behaviour or attitude, and you are likely to correctly identify the actions to be taken. When you think customer’ objectives rather than (just) your own, you are far more likely to meet with success.

2. Insight generation should start with customer connection. When was the last time you personally spoke with your customers? If it wasn’t in the last week, you’re not getting out enough! Make a habit of regularly watching and listening to your customers.

They are changing faster than you may realise, so it is important to keep your finger on the pulse of market changes. These days you don’t even have to leave your office. Market research interviews can be videos live and care centres are always answering calls from customers, so make a habit of listening in. For hints on how to observe your customers better, check out “Five Rules of Customer Observation for Greater Success.”

Insight generation should start with customer connection. #MRX #Insight #Marketing. Click To Tweet

3. Have regular contact with all other departments. It is impossible to really understand the business if your contacts with other groups are limited to meetings and presentations of analyses you have conducted or plans you have written. It must become a daily habit, so you are seen as the true voice of the customer / consumer internally.

Meet for a coffee, or go to lunch with someone other than your usual group of colleagues. These impromptu meetings will deliver big on understanding and will provide invaluable information from the perspective of other departments.

4. Get MRI to share their nuggets of information at every occasion. While they may present findings in formal meetings and presentations, I know that market research and insight teams learn a host of new things about the business every day. So why not share them?

Every project and analysis turns up more information than that for which it was designed. Somehow these learnings get lost, as they are not seen as relevant to the question in hand. However, make them a regular part of newsletters, Lunch & Learn sessions, or internal “Tweets” and they will surely inspire new thinking across the organisation.

Every MR project & analysis turns up more information than that for which it was designed. Make sure to share it. #MRX #Insight #Marketing #Brands Click To Tweet

5. Get into the habit of speaking with consumers at every chance you can. As already suggested, join in when research projects are being run, listen in to call centre conversations, speak to demonstrators and merchandisers, or even talk to shoppers at retail.

These connections can quickly become addictive, as they are for the best marketers in the most consumer-centric organisations. As an added bonus, the insight development process will become both quicker and less challenging for everyone.

6. Ask MRI to analyse more than market research information alone. They are the best synthesisers you have and can manage multiple data sets from all available sources. There is so much information flowing into organisations today that there is more data than even the best marketers can manage.

According to IBM, more than two-thirds of CMOs feel totally unprepared for the current data explosion, especially as it relates to social media. And in research conducted by Domo, a similar number of marketers claimed to be unable to handle the volume of data available to them. Ask MRI to help and you will both be better informed and also feel less overwhelmed.

7. Remember that insight development takes energy and time. Although my client’s teams got close to the perfect expression of an insight in just two short working sessions, it usually takes days, if not weeks or even months to refine, group and synthesise information down to an actionable insight. However, the right training and some simple tools can speed their development for even less than the best marketers.

If you’re interested in learning more, then we can provide fun training on many areas of insight development. Download our training brochure and then contact us so we can discuss your precise needs. All our courses are personalised to meet your specific requirements; no off-the-shelf trainings are ever given.

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8. Insight development should involve more than the insight team, which is why it is important for them to always be building their relationships with other departments. The alternative perspectives brought by the other groups will enhance the overall understanding of both the customer and the market situation you are looking to address.

So these are the eight tips I shared with my Japanese client during our workshop. Are you doing all of them, or have they given you some ideas on how to improve your own process? I do hope so.

If you work in marketing or even another department outside of market research and insight,  I would love to hear what you do to develop your relationships with MRI. Do they involve you in insight development or do they only deliver the results of their process to you? What could you and they do better to make insight development and customer understanding easier in your organisation? Add a comment with your suggestions below.

For more information on the training courses in insight development and brand building, please check out our website or contact us here. Let's have an informal chat about how we could support your brand building efforts and provide fun training days. We already do this for businesses in many industries all over the world. We love customers, consumers and clients and can help your teams know and understand them better.

Winning Customer Centricity

 

 

This post includes concepts and images from Denyse's book Winning Customer Centricity. It is available in Hardback, Paperback, EBook and AudioBook formats. You can buy it, usually at a discount, on our website HERE. Of course, the book is also available on Amazon, Barnes and Noble, iBook and in all good bookstores.

Never, Never, Never Give Up: How to Succeed When All Around You are Failing

 

I heard a famous quote this morning from Winston Churchill’s address to Harrow School in the UK in 1941. It was certainly one of his shortest speeches but probably also his most quoted. He said:

“Never give in, never, never, never, never”

You can read his full speech – which is not a lot longer! – here.

Hearing this quote got me thinking about failure. Failure in our lives, our businesses, our jobs, our relationships. How often do we fail merely because we give up too quickly?

Now whereas I don’t feel qualified to advise you on your private life, I do feel sufficiently knowledgeable to speak about business.

Last week I mentioned the 7 reasons most companies fail to adopt a customer first strategy. They were the conclusion to a post on what a customer first strategy is, and what it isn’t. If you missed it, then click the link above to read the full article.

Over the many years of blog posting, I have written many other posts on many different topics, and which include my solutions to failing in countless areas of marketing. I therefore thought it would be useful to share four of the most important ones here in a single post. Let me know what you think.

 

How you React to Failure could Make You a Success

Failure's only a failure when you don't learn from it
Source: Microsoft

For this first summary of a post, I’d like to share not a list of solutions but a selection of inspiring quotes on reacting to failure. I think it sets the stage beautifully for the other articles to come.

In the full post (which you can read by clicking the above link) you can also find suggested actions for each of them. They will make you realise that there is great opportunity in every failure! So don’t be afraid to fail. Just never give up!

1. “It’s fine to celebrate success but it is more important to heed the lessons of failure” Bill Gates, American Businessman

2. “Failure is not fatal, but failure to change might be” John Wooden, American Coach

3. “By failing to prepare, you are preparing to fail” Benjamin Franklin, American Politician

4. “Failure is simply the opportunity to begin again, this time more intelligently” Henry Ford, American Businessman

4. “Failure is simply the opportunity to begin again, this time more intelligently” Henry Ford, American Businessman #Quote #Success #Failure Click To Tweet

5. “The difference between average people and achieving people is their perception of and response to failure” John C. Maxwell, American Clergyman

6. “Failure doesn’t mean you are a failure it just means you haven’t succeeded yet” Robert H. Schuller, American Clergyman

7. “Enjoy failure and learn from it. You can never learn from success” Sir James Dyson, British Designer

8. “Fear of failure must never be a reason not to try something” Frederick W. Smith, American Businessman

9. “The greatest glory in living lies not in never falling, but in rising every time we fall” Nelson Mandela, South African Statesman

10. “Failure seldom stops you. What stops you is the fear of failure” Jack Lemmon, American Actor

They say that pride comes before a fall; I say success follows failure! I wish you much success in failing fast, learning faster, so you can enjoy more success!

 

How to Innovate Successfully (What You’re Still Getting Wrong!)

This post mentions the ten reasons innovation fails and then shares ideas on finding a solution to each of them. That is what I share below.

The virtuous proces of innovation

#1 The process: Introduce some creativity into the process. Use a virtuous circle (as shown above) rather than the usual linear or funnel approach.  All innovation processes should start with a deep understanding of the potential customer segment and then insight development.

#2 Meeting company quotas: Instead of company quotas on the number or proportion of new product launches, a better target is a percentage of sales. This should eliminate all but the very best ideas, which are expected to increase sales rather than merely replace current products.

#3 Lack of customer understanding: The best way to innovate successfully is to start by looking at the target customer’s lifestyle and seeing how you can make it easier and more enjoyable for them. Watching and listening to your customers with an open mind, rather than with a hypothesis in your head, will enable you to identify pain points the customer may even be unaware of.

#4 Lack of category understanding: Never assume you are competing in a certain category until you have identified how your customers are choosing and what they are currently using. You might be surprised to learn that your competitors are not those you thought they were!

#5 Not living up to your promises: In today’s connected world, false or exaggerated promises are quickly identified and shared on social media. Nothing is every hidden for long these days, so if you make a mistake, admit it, own it, correct it and move on. It will be forgotten or forgiven quicker than if it becomes a scandal.

#6 Not being sufficiently differentiated: With such an abundance of information available to everyone, comparisons are easy to make.  Solution based offers will always be able to charge more than product based ones. It’s up to you to decide which you want to be.

#7 Being too different: Identifying a sub-category of users with a precise need and then meeting that need better than anyone else is the more successful way to differentiate.

#8 Pricing yourself out of the market: Understanding how much potential customers value your offer is essential to the success of any product or service.

#9 Inappropriate distribution: Appropriate distribution doesn’t mean being in stock everywhere at the lowest price. But it does mean being in the retail outlets that your target customers visit more often.

#10 Being too far ahead of the customer:  If you can’t afford to wait for your customers to catch up with your new product or service idea, then you should certainly reconsider your launch decision. Keep the concept in your “back drawer” until customers are ready. You will then be the first to respond to these new needs and beat the competition to market with the correct solution.

The full article goes into more detail on each of these solutions of course. So if any of them resonate with you, it is worth checking out the full post.

You must innovate to stay in the game, but that doesn’t mean launching anything just to meet the company’s innovation targets. Launch bigger, bolder and better, as one of my bosses used to say. And never give up!

Secrets to Brand Building eBook50% discount with code Summer50 in July

 

What Great Leaders Know and You Probably Don't

What great leaders knowThis post summarises my easily applied learnings that will make your leadership style more efficient and effective, no matter the industry in which you work.

1. We should never stop learning. As we age and rise in the corporate world, we seem to forget that we don’t know it all! We even think that we should have all the answers, or worse still, think that we do!

2. We should accept help. Some people find it hard to ask for help or even to accept it when it is offered. This is foolish, since we cannot be an expert in every area of business. In fact if we lead a team, whether just a few people or many thousands, we should be good at managing people first. 

If we lead a team, whether just a few people or many thousands, we should be good at managing people first. #Team #Leadership Click To Tweet

3. Practice really does make perfect. It’s not only perfectionists that think they’re never good enough. We should always strive to be the best we can be. We should never compare ourselves to others, only to our previous selves. 

We should never compare ourselves to others, only to our previous selves. #Learnings #Self-respect Click To Tweet

4. That final check is worth itWhen I was learning to fly, my instructor never stopped reminding me that the pre-flight checks were vital to do thoroughly. He reminded me that once you’re in the air, it’s too late! The same goes for meetings, events and conferences once they’ve started. Make and use checklists, like pilots do, and complete that final check thoroughly and completely.

5. Accept defeat and mistakes. We all make mistakes sometimes and get defeated occasionally. We’re human after all. However, those mistakes and defeats are great teachers. If we learn and grow from them, then the pain involved should be short-lived, as we move on to bigger and better things.

6. Honesty is always the best policy. Somehow honesty is rarely discussed these days and yet we all know that trust is one of the main reasons people do business with companies. Trust built over the long term will enable companies to be forgiven for any occasional mishap that may occur.

Trust built over the long term will enable companies to be forgiven for any occasional mishap that may occur. #Trust #Failure #Mistakes Click To Tweet

7. Business isn’t only about millenials. Everyone is speaking about the Millenials these days. While Millenials may be trendy, there are other groups which are arguably just as important to consider for a successful business. For example, there are now more Baby Boomers that Millenials in the US!

Great leaders are aware of these seven points, are you? If not, then read the full article for further details. Leaders don't know it all but they do know how to learn from failure. Never give up on your plans, just adapt them when needed.

 

How the Best Marketers are getting Deeper Insights

Observe and listen for deeper insightsBe honest! Everyone struggles to develop true insights about their customers. Most times we accept summary information or facts about the marketplace and call them insights. But we alll know that insight development is difficult. So hard to get to that "aha" moment when what we have said about our customers is so obvious we can't understand how we - or anyone else for that matter - never realised it before.

If you are struggling to develop insights that truly resonate with your consumers or customers, I suggest you follow these 8 tips.

#1. Turn business objectives into customer-centric ones. Identify what you want to change in terms of your customers’ behaviour or attitudes. This way you will be thinking about your customers’ objectives rather than (just) your own.

#2. Insight generation should start with customer connections. When was the last time you personally spoke with your customers? If it wasn’t in the last week, you’re not getting out enough!

Insight generation should start with customer connections #Insights #MRX Click To Tweet

#3. Have regular contact with all other departments. It is impossible to really understand the business if your contact with other groups is limited to meetings and presentations. Make a habit of taking a coffee or lunch with people from other spheres of the company and share your latest ideas and learnings. You will both discover a lot!

#4. Get MRI (Market Research & Insight) to share their nuggets of information regularly. Market research and insight teams learn new things about the business every day, so why not ask them to share more? Don't wait for a formal presentation of the results of the latest piece of research. Get them to share findings and analyses with you on a regular, (at least) monthly basis.

#5. Get into the habit of speaking with consumers at every chance you can. Suggest to join in when research projects are being run. Listen in to call centre conversations, speak to demonstrators and merchandisers, or even talk to shoppers at retail.

#6. Ask MRI to analyse more than market research information alone. They are the best synthesisers you have and can manage multiple data sets from all available sources. Ask them to integrate more information and you will both be happier.

#7. Remember that insight development takes energy and time. It usually takes days, if not weeks or even months to refine, group and synthesise information down to an actionable insight

#8. Insight development should involve more than the insight team, which is why it is important for them to build relationships with other departments.

Following these 8 ideas will make your business one of the most successful in insight development. How would that feel? Read the full article HERE. Insight development may be difficult, but it's not impossible. Never give up!

And if you want to improve even faster in any areas of learning from failure, you can invite us to give a 1-Day training that will catalyse your team in record time. Download the summary brochure of all our current training courses HERE.

These are some ideas and processes for avoiding failure or even more importantly, learning (a lot) from them. Whether it is in business management, innovation or customer understanding, you can learn from the best, so you don't have to make the same mistakes. I hope you appreciate it!

Your Customer First Challenges Sorted!Complementary half-hour Solutions Call with Denyse - Click to Reserve
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For Greater Customer Satisfaction, Should Marketers Answer Their Needs or Desires?

In 1943 Maslow proposed his theory about people’s needs in a paper entitled “A theory of human motivation”.

He used the terms Physiological, Safety, Belongingness and Love, Esteem, Self-Actualization and Self-Transcendence to describe the pattern of needs that motivate people. At the time he didn’t present it as a hierarchy, nor as a pyramid, but that has become the accepted representation these days.

Maslow's hierarchy of needs

While the hierarchy remains a very popular framework in sociology, management training and psychology instruction, it has largely been supplanted by attachment theory in clinical psychology and psychiatry. However since attachment theory is concerned with how people respond to hurt, separation and threat within relationships, it has less relevance for marketers.

All br ands, products and services should be designed to satisfy their target’s needs, so Maslow’s hierarchy seems a good framework to use, when defining on what your offer will be based.

If this interests you, and it should especially if your business is global or geographically spread as I will explain below, then here are the three steps for doing so.

1. Satisfying: Firstly identify which of the five needs your br and or service is looking to fulfill. Remember different br ands within the same category can play to differing needs, especially in terms of their communications. Whilst it is generally accepted that the lower needs must be satisfied before higher needs can be addressed, there are exceptions.

Think of consumers in poorer countries who will buy a TV over proper shoes and clothing for their children. In such cases status and in particular consumer emotions are playing an important role, but more of that later.

2. Resonating: Next develop communications for your target audience by incorporating solutions to their relevant needs. These will obviously resonate more quickly and easily with them than pure product or service information alone. They may also be more emotional and will therefore have greater impact on them.

Here are some good examples that I have seen in recent years of easily identifiable needs being addressed through advertising.

Knorr’s packet soup in the UK, based on needs of food, safety and love. See video

Cartier’s corporate campaign from last year, which marked its 165yrs, was appropriately named “L’Odyssée de Cartier” and is clearly based on esteem and self-actualisation.

 – Omo washing powder, one from a long series entitled “Dirt is good”, based on safety and love. See video

Peugeot car, based on self-esteem and status: See video

UK back seat safety belt buckle-up campaign, based on safety. Warning, the ending is violent! See video

Interestingly, all these are examples from a few years ago. Although newer examples are available, they are not as obviously based primarily on need states as are these ones. I believe one reason for this is the increase in the level of pure emotional content of current advertising. In fact all the above examples use emotions as well in addressing the needs they are looking to answer, which is perhaps why they performed better than many.

We find much more content today that addresses primarily desires rather than needs. One reason for this is that marketers have finally realized that people often buy out of desire and not because of a need alone. However, what makes it difficult for marketing to respond, is that people find it easier to speak about their needs or what they don’t want, than their desires.

Henry Ford apparently already knew this when he said:

“If I had asked people what they wanted,

they would have said a faster horses”

He resonated with them by providing a solution to their need of travelling more quickly, but in an exciting new way. A more recent quote with a similar sentiment comes from the late Steve Jobs of Apple. People often claim that he was against Market Research, but that was not true. He was in fact only against market research in which questions were simply being asked of consumers, an nd marketers were then responding directly to the answers given without further thought. As he was quoted as saying:

“It’s really hard to design products by focus groups.

A lot of times, people don’t know what they want until you show it to them” (>>Tweet this<<)

I believe he understood that it was better to respond to a consumers desires than to their needs. Look at Apple’s advertising; it has almost always been resonating emotionally rather than merely rationally with its target customers. As a typical example, check out their ad from last Christmas, a real tear-jerker called “Misunderstood“.

http://youtu.be/nhwhnEe7CjE

However, I know that many good examples of needs-based advertising do still exist. If you yourself have any representing identified human needs, then it would be great if you would share them in the comments below.

3. Going Global: Another advantage of using Maslow’s hierarchy of needs to position your br and / service, is that the same needs are felt by all human beings. That is why these communication ideas are often referred to as “Human truths”. This means that you are more likely to be able to successfully roll out such a campaign regionally or even globally, than if you were basing communications on local specificities alone. The examples above, although mentioned as being from certain markets, were actually all regional or global campaigns.

So coming back to the question asked in the title of this post, the answer is BOTH. To guarantee satisfaction, your customers must feel that you really care about them, truly underst and their needs and that your offer also resonates with them emotionally. If you are successful in doing that, then your communications will be understood without any effort on their part. It will be so obvious to them and they will simply identify themselves with what is being shown. Furthermore, an emotionally charged ad is more likely to be shared with their friends on social media. An important additional benefit that is particularly appreciated today.

If you believe that your communications are not appropriately addressing your target customers’ needs AND desires, then please contact us. We have some great case studies from some well-known br ands that we can share to inspire and support your own improvements. You will also be excited by the unique methodology we use to underst and the meaning your customers take away from your ads.

This post is based on a much shorter one that was first published on C³Centricity in September 2011.

C³Centricity used images from Dreamstime and Microsoft in this post.

Halloween Scares & Solutions for Marketing

Halloween is coming, even earlier than usual this year, judging from all the retail displays already in the shops! Although it is now more associated with children dressing up in scary costumes and dem anding “Trick or Treat”,  it is actually a Christian remembrance of the dead on the eve of All Saints’ Day.

So what does that have to do with marketing? Apart from the obvious effort of many companies to include the pumpkin shape, flavour or aroma in almost every product they make, at least in the US, marketing too has its scary moments doesn’t it?

What scares you marketers the most, or to put it another way, what keeps you up at night? One of the most recent studies on the topic, issued a few months ago, comes from The Marketing Institute (MSI) and was summarised by David Aaker of Prophet as seven issues, which he divided into three tiers:

TIER ONE: The hot topics

  1. Underst anding customers and the customer experience with particular emphasis on the impact of social and digital.
  2. Big data and analytics, with how they will impact predictive modelling and the marketing mix.

TIER TWO: The other concerns

  1. Following on from the opportunities of Big Data, the next concern is Marketing Accountability and its ROI.
  2. Developing marketing excellence and the new skills required such as visualisation and storytelling.
  3. Leveraging digital/social/mobile technology and linking it to CRM
  4. Creating and communicating enduring customer value and how to measure it in the social environment.
  5. Developing and delivering integrated marketing

TIER THREE: Previous concerns getting under control

  1. Innovating products and services
  2. Global marketing
  3. Segmentation
  4. Optimizing social contracts

What I find interesting from this and similar studies that I wrote about last year, is the overlap between many of these challenges. Marketers are really concerned about the wealth of information that they have on their customers and how they can manage to turn it all into insights, for more profitable actions and engagement. I therefore thought it would be useful to summarise the “so whats” of all these current challenges and propose actions that will help marketers get these issues under control, so they can change their scares into solutions:

Underst anding the customer experience

SCARE: With the exciting new worlds of social and digital taking up much of the thoughts of marketers, they are struggling to find ways to think integration, but that is the only way to underst and today’s customers. 

SOLUTION: Starting from the customers’ perspective makes looking at the bigger picture much easier. Instead of thinking single channels of communication, think connection and engagement. (>>Tweet this<<). Instead of thinking purchase and loyalty, think advocacy. Creating value for the customer goes way beyond providing a product or service these days. (>>Tweet this<<)

Knowing what to do with data

SCARE: We have gone from an information rich environment to complete data overload. This challenge definitely keeps a lot of marketers up at night. They feel as if they have to use everything available but at the same time are also aware that they are incapable of doing so.

SOLUTION: The answer lies in the old “eating an elephant” solution. Rather than worrying about what is not being managed, marketers should review what they already have, and only then decide what else they could use to help answer all their questions. There is so much information available today that we can’t work with it all, but we can ask better questions that can be answered by analysing this data. Start with the right question and then use the data you have to answer it. (>>Tweet this<<)

Engaging customers

SCARE: Every br and has some sort of web presence today. Whether that is a website, Facebook page or Twitter account, most companies have rushed into social media without a detailed underst anding of why they are there. If this is your case, it’s time to take a step back.

SOLUTION: How are you connecting with your customers today, both offline and online? The two should be complementary. However if there is too much overlap and you are doing the same on both, then you are wasting your money. You are also wasting your money if you don’t know why you are online in the first place! (>>Tweet this<<)

I had a client once who wanted help in updating one of their websites. In running a first analysis of all their websites, I found that more than 80% of them were being visited by less than 30 visitors a month! We cancelled all those websites and invested the money in the remaining active ones, improving both their ROI and the engagement with their customers. Maybe it’s time to take a look at your own web statistics?

Marketing ROI

SCARE: Marketers are scared for their budgets and even more so for their jobs. With the rise in the importance of technology and IT, marketers need to move from br anding  and creativity alone, to embracing data and analytics much more than they have done in the past.

SOLUTIONBecome friends with your CIO and see IT as a support of rather than as a threat to your budgets. Yes managing new technologies and data analysis will need more investment, but that won’t (shouldn’t) come at the expense of br and building. In fact with the increased power of the customer and the number of channels on which to reach them, marketing needs increased budgets to be where and when the customer dem ands connection and information. (>>Tweet this<<)

Acquiring new skills

SCARE: As already mentioned, marketers must get comfortable with large amounts of different data. They also need better ways to analyse and make sense of it all, often in near real-time. This is a challenge in itself, but the new skills they have to acquire don’t stop there. They also need to turn their information into actionable insights and then share them with the rest of the business to gain acceptance and impact.

SOLUTION: Your market research and insight colleagues are the best people to help in making sense of the data and developing actionable insights. It will be the marketer’s job to share these with the rest of the business in a more creative way. Visualisation & storytelling are the new must-have skills for today. No longer can you expect PowerPoint presentations to excite and engage your C-suite executives – if they ever did!

These are five of the most pressing current scares of marketing and some simple solutions to address them. Are you challenged by something else? If so, add a comment below and I’ll help you find a solution. Or if you prefer, you can contact me here.

C3Centricity used an image from Microsoft in this post.

 

 

Should you Test your Advertising? If so, What, When and How?

 

One of my clients recently asked me a very interesting question, which I share here, as I am sure that you too have asked it from time to time. It was this: “Should I test my advertising and if so, when and how?”

Depending upon whether you work on the client side, in a media agency or are a creative in an ad agency, you will have certainly answered this in a different way. So let’s review all the pros and cons and decide what is right – for you – in different circumstances.

 

Should you test advertising?

If you work on the client side and ask your colleagues in an advertising agency, most of them would probably scream NO and that’s not surprising! Countless teams have suffered at the h ands of market research and the over-testing of their creative.

In the past sixty years or so, there have been many different metrics invented, with the intention of evaluating which of a client’s communication concepts would best meet their objectives. And that for me is one of the biggest challenges to ad. testing. Should you test a campaign or each individual ad? Should you test an ad built to increase awareness in the same way as one built for encouraging trial, purchase, repurchase, loyalty or advocacy? My answer would be a very Swiss “It depends”.

Firstly you have to be clear about why you are advertising in the first place, and what your campaign is trying to achieve. It still amazes me how many companies develop new campaigns simply because that’s what they do each year. Hopefully each new campaign has a link to the preceding one, but even that is not always obvious. Therefore start by being very clear with whom you want to communicate and why – and share that information with your ad agency.

 

When to test

A lot of companies have a st andard process of testing ads before airing. Whilst this could be admired, it often results in multiple ad developments. The feeling is that more is better. If you test two, three or more ads, you can then choose the winner to air. What’s wrong with that?

Well, in my opinion, quite a lot. You’ve just wasted a lot of time, money and energy in developing multiple ads, when you know you’ll most probably only use one in most cases. It’s time to think differently and spend your valuable resources more wisely. Once the ad agency has developed a number of campaign concepts or ideas that meet your carefully defined objectives, then that is a better time to test.

Don’t wait until you have gone further and produced animations, final prints or complete films before testing. If you wait until that late a stage in the development process, you are also more likely to designate a “winner” when in fact they could all be good – or bad! Working with concepts will help identify the real winning ideas you have, which can then be developed into a final version or two for copytesting – if you must, but more of that later. The earlier you test, the more resources your ad agency can concentrate on the most relevant concept(s), rather than diluting their efforts to give you the wide choice you usually dem and. No wonder ad agencies don’t like copytesting!

 

What to test

Another reason for testing concepts rather than finished ads, is to ensure that they can be turned into a campaign. I have witnessed many terrific, so called “big ideas” that were superb as they stood, but which it was impossible to visualise other than in the single form proposed. If you show your early work to consumers, they might even be inspired by the story of an idea and suggest other ways to show the concept you have developed and thus you get an indication of the campaignability of the idea.

For regional and global campaigns, there is often the added complication of the translation of the idea into other languages. There are many concepts in English that don’t or only poorly translate into other languages. English is a wonderful language that is particularly appropriate for advertising, because of the ability to make wordplays, or use idioms, acronyms, slang, compound words and other wonders of its grammar. In addition the English language is known for its extensive vocabulary, which is especially useful in advertising copy-writing. Whereas in another language you might only have one or two words to express a particular meaning, English may have five or six, each with subtle differences.  If you’d like to see some great examples of advertising messages “lost in translation” (>>Tweet this<<) check out this fun article from Business News Daily.

 

How to test

Depending upon their “st andard” processes, most companies will tend to use the same methodology, with no regard for the reasons for doing so. Are you used to copytesting all your developments in order to pick the “winner”, or to get airing approved by management? Some clients I know must score in the “top quadrant” on the usual copytesting impact and persuasion metrics in order to use an ad, even though there are valid reasons to accept lower scores on one or other of the metrics, depending upon the campaign’s objectives.

Some of the best – and most useful – campaign testing I have ever seen, was done qualitatively. But that alone won’t work unless you then allow the creatives, market research and insight groups to discuss the results together – ALONE! It was exciting to share consumer opinions with the creatives and they found it equally stimulating to share their ideas and get feedback based on real consumer input. Whoever said that creatives don’t like testing are wrong; they just dislike judgemental, sometimes disrespectful and bl and numerical results with little if any depth of analysis.

A powerful testing methodology I have had the privilege to work with is the unique one proposed by PhaseOne. Their scientifically based, proprietary technique, is based on over thirty years experience of academic work  and real-world validation. Their knowledgebase includes an extensive foundation including analytics in human behaviour, anthropology, culture traits, entertainment, education, communications and marketing. This enables them to accurately explain how your target will react to your messages and even more importantly the reasons why, without actually speaking with consumers. In comparative testing versus st andard copytesting, their technique has been shown to give similar outcomes, but with greater depth and underst anding of the reasons why consumers react to an ad as they do and not just the what. If you’d like to hear more about this unique methodology, especially if you’re having trouble speaking with your own target customers due to legal or confidentiality issues, I’d be happy to share some case studies.

 

In summary when it comes to testing your advertising:

  1. Know with whom you want to communicate
  2. Know what your target audience wants to hear
  3. Know why you are communicating, what the message is that you want to send
  4. Know which concept(s) have the most resonance with both your target audience and objectives, and why
  5. Know how the concept(s) will develop into a campaign across media
  6. Know how you are going to communicate, the most relevant medium and channels for your target audience

Can you answer all six questions before pre-testing you own ads? If so, well done; if not, perhaps it’s time to review your testing process.

 

Where testing came from & where it’s going

In conclusion, a few words about the future of pre-testing. Although advertising testing supposedly started in the mid 1800’s, it was in the 1950’s that performance metrics became the holy grail of clients, ad agencies and media sellers alike. From Day-After-Recall, to persuasion, and br and linkage to moment-by-moment systems, it wasn’t until this decennie that the importance of emotional rather than rational responses to advertising gained support. Today, emotional analysis has become widely available and customers’ reaction to the ads are measured, usually on the six universal emotions (happiness, sadness, surprise, fear, disgust, anger) plus neutral. Whilst it’s still early days in underst anding the connection between emotional reactions and br and impact, things are moving fast. C³Centricity is now offering facial coding as part of its services, whether for adding to market research projects or for the development of original promotions and point-of-sale activities. One such case study is available for download on the C³Centricity Members area here. (Free to join)

Interestingly, when I was doing research for this post, almost all the more recent articles I found were about the testing of online advertising, comparing PPC and positioning, of the usual paid, earned and owned media. However, with around two-thirds of budgets still being on traditional media – at least for now –  and Statista showing that consumers still trust it more than new media,  it seemed appropriate for me to concentrate on that here and leave online for a future post.

Also, I have covered only pre-testing here, yet I know many companies who are satisfied with running only post-tests. They admit that it is because they never have enough time to pre-test their ads which, at least to me, highlights a clear lack of concept testing in the first place. Hopefully I have explained why I think it is important, no vital, for clients, media and ad agencies alike, to do more of it. At least it will provide more material for those development discussions – before it’s too late!

Do you agree? Have I forgotten something? Let me know, I’d love to hear what you think.

C³Centricity used an image from Dreamstime in this post

 

The Ultimate Guide to Developing Actionable Insights

One of the biggest challenges of many marketers is developing actionable insights about the market and it’s customers.

Are you satisfied with the way you turn your data and information into underst anding and then develop insights on which you can take clear actions? If not, then you will find this post tremendously useful in helping you to update your practices.

Even if you are happy with your insight development process, converting them into actions can still be a stumbling block. In January 2013 Forrester wrote an article suggesting that last year would be the year for market insights. Eighteen months on, things don’t seem to have progressed much, so hopefully this post will enable your own organisation to advance and to get ahead of the competition.

#1. Be precise in your objectives

Your objectives for developing an insight should be presented as a desired change in your target (>>Tweet this<<). For example, if you are looking to increase your market share, you could be looking to find a way to convince competitive br and purchasers to buy your br and instead.

Identifying the change you are looking to encourage is the first step to uncovering a true actionable insight. Are you identifying the change you desire in your customers? If not then this is something you should start doing; it will make developing actionable insights more focused and thus also easier.

#2. Involve a wide range of experts

Insights are not the sole responsibility of the Market Research & Insight Department (>>Tweet this<<). Everyone in the company can bring valuable information and underst anding to address the identified opportunity. Therefore, involving people with a wide range of perspectives can make insight development more effective.

Gather a team of experts to provide a 360° perspective of the category or br and, including for example:

  • R&D, who can bring underst anding of available internal & external technical skills
  • operations who can share current defects and development aspects
  • sales who can add retail perspectives, including distribution, packaging and shelving limitations or opportunities
  • marketing who will provide the communications, image, equity and competitive environment
  • customer services who can add current customer sensitivities, problems or suggestions
  • finance who can highlight any budgetary limitations and ensure financial goals are met

The group you bring together will be a function of the change you are looking to make. I personally believe that the exercise should be run by your market research and insights team, since it is their profession to underst and people and behaviour. They also generally have the widest and most detailed perspective of anyone in the company

#3. Review all available information & knowledge

All organisations have far more information than most employees realise (>>Tweet this<<), including your market research, insight, strategy and planning teams. This highlights the need for having a group of people from different departments since they will bring alternative perspectives and information sources to light.

Once the team has been formed and the objectives for the insight development exercise have been agreed, it is time to organise a complete review of all the available information and knowledge.  You should look for recurring themes, expressions and words across the different information sources that might provide indications of the issues or opportunities around the identified objectives.

As everyone completes the review of the information, a number of working sessions can help to share the information already found and start the process of getting closer to an insight. The actual insight development exercise will take place in another meeting once all available information has been assessed and any information gaps filled.

#4. Walk in your customers’ shoes

I am always disappointed that social media has further encouraged marketers to stay behind their desks instead of getting out and meeting their customers. Is this the case in your own organisation? Although you can certainly learn a lot about your customers’ opinions and needs online, it is only when you take their place that you get the chance to really see things from their perspective (>>Tweet this<<).

Walking in your customers’ shoes can be done in numerous ways and will depend upon the issue or opportunity you have identified, as well as the underst anding you have gained from reviewing all the information you have gathered. You could for instance:

  • go out shopping and purchase item as one of your target customers. This will help you underst and the decision making process of your target customers.
  • compare competitive offers online for a service you propose. Is your website as user-friendly as your competitors’? Have you thought of all the important elements you need to include?
  • call up the customer service departments of a number of your competitors and ask questions about their br and’s uses, reliability etc. Do your own staff provide the same information? Are they as knowledgeable, credible, empathetic?
  • role play your target customer in using your product and identify opportunities to improve for instance its packaging. If your product is used by mothers of toddlers, is it easy to open with one h and? If your product is used in certain dem anding surroundings, such as outdoors, in the car, in the country, at night, is it easy to open and consume in such situations?

Whilst walking in your customers’ shoes, you should be extremely sensitive to any pain points you uncover in considering, evaluating, shopping and using your br and. If you are looking to define a completely new offer, then it is the pain points of your competitors’ offers that you also need to consider. Taking your customers perspective, rather than just observing them, can provide a wealth of information you might not get in any other way.

#5. Fill the gaps

Having gathered as much information and knowledge about your customer as you can, including walking in their shoes, it is important to turn it all into underst anding. This also enables you to identify any information gaps there may be. Never do any market research until you have first identified all the information that is already available on the topic under review (>>Tweet this<<). These gaps can be filled by running a market research project or by acquiring the required information from other sources.

Before continuing with insight development, these new findings need to be summarised and integrated into the knowledge and information already reviewed. If the objectives of the project have been well defined, this should be relatively easy to do, as you had already clearly identified the need.

#6. Develop the insight

At this stage, you will certainly have a better underst anding of your customer in relation to the identified issue or opportunity than you have ever had before. Insight development needs input from every member of the multidisciplinary team (>>Tweet this<<), which can take anything from a few hours to several days. Don’t hurry this process; we are often too keen to get to the action and accept to work with something that is not a true insight.

You will know when you have an insight. When you summarise it in one (or maximum two) sentences phrased as if it were being spoken by your customer, it creates what is known as an “ah-ha” moment. This is when everyone sees it is obvious and wonders why no-one ever thought of it before! I am sure you will agree with me that it is a wonderfully rewarding feeling when you get there.

 

These are the six essential steps to developing true insight, but the most important step of all is still to come, that of actioning them. This is where the multi-disciplinary team really comes into its own. As all the team have agreed on the objectives and the insight, it is extremely easy for them to define the next steps that need to be taken. It also means that all areas of the organisation will work together to take the appropriate actions, rather than just the marketing department which may otherwise happen.

From my experience actioning insights is only a problem when not enough time has been spent at the beginning of the whole process, in underst anding the change in your customers that you are looking to encourage. If you have trouble with this part of the process, then I would suggest reviewing the completeness of the definition of your objectives.

What areas of insight development do you find the most challenging? Do you have any questions about generating or improving your own insight development process? If so, then please add a comment or question below. I would be happy to answer them for you.

For more information on insight development, please check out our website at: https://www.c3centricity.com/home/underst and/ as well as available trainings at: https://www.c3centricity.com/training- and-evaluation/

C³Centricity used images from Dreamstime and Kozzi in this post.

How Well do you Know your Customers? Can you Answer these 12 Questions?

How well do you know your target customers? I mean really know them? Are they men, women, young, old, Fortune 100 companies, local businesses? If you can at least answer that, then you have the basics, but how much more could you know about them? Can you answer the following twelve questions?

I was recently working with a local service company who was looking for help with their online presence. They were keen to get more active on social media and had asked for advice about the best platforms, optimal frequency of publishing and possible content ideas.

C3Centricity how well you know your customers

However they were in for a surprise. Rather than getting straight onto the “sexy” topic of social media, I started by taking them through the basics of target customer identification. Lucky for them that I did! When we had finished the exercise, we had found five different targets for them to target, rather than the mere two they had been addressing until now. This clearly would have a huge impact on the where, what and how they communicated online.

These are the twelve questions that enabled us to brainstorm, identify and then complete a better and more complete description of their target customers. Their use also resulted in clear differentiated segments for their services – three more than they had originally thought!

How would you like to double your own market potential? Read on:

  1. WHO DEMOGRAPHICS: OK this is usually a “no-brainer” and is how most organisations describe their customers. Not really original and definitely not competitive, but still the essential foundation.
  2. WHAT THEY USE: Whether you are offering a product or service, you need to know what your customers are using today. And not only for your category, but in adjacent categories too. What do they use – if anything – if your product / category is not available?
  3. WHAT THEY CONSUME: Here we need to underst and what types of information and media they are consuming; what do they read, watch, listen to in their spare time. Which social media do they use, what websites do they consult on a regular basis?
  4. WHAT THEY DO: How do your customers spend their time? What type of lifestyle do they have? What are their hobbies? What do they do all day, and in the evening and at weekends?
  5. WHAT THEY BUY: This is where you describe their current category purchasing habits. How frequently and what quantity do they buy? Do they have regular buying habits? Do they do research before buying or repurchasing? Do they compare and if so how, where, why?
  6. WHERE THEY USE: Is the category consumed in home, in work, on vacation? With friends, with their partner, their children, with colleagues? Are there certain surroundings more conducive to consumption? What makes it so?
  7. WHERE THEY BUY: Do your target customers have certain places and times they buy? Is it an habitual or impulse purchase? Is it seasonal?
  8. WHERE THEY CONSUME: Today “consume” covers not just traditional media but new media as well. From where do they get information about products? From manufacturers, friends, family, colleagues? Do they access it online, in print, on radio or TV, at home or on the road? What websites and people do they follow, listen to and value the opinion of? What interests do they have in general and concerning the category?
  9. WHERE THEY SEE: One reason to target a specific group of customers is so that you can better communicate with them. Where are they most likely to be open to your messages; what media, what times, which days?
  10. WHY VALUES: What values do your customers have that you are meeting with your product or service, and explain why they are using it? Do they have other values that are not currently addressed, either by you or your competitors? Do these values offer the possibility of a differentiated communications platform or product / service concept?
  11. WHY EMOTIONS: What is the emotional state of your customers when they are considering a purchase or use, both of the category and the br and? Clearly identified emotions enable you to more easily resonate with your customers through empathising with their current situation. You are more likely to propose a solution that will satisfy their need or desire when their emotional state is precisely identified.
  12. WHY MOTIVATIONS: What motivates the customer to consider, buy and use their category and br and choice? Emotions and motivations are closely linked both to each other and to the customer’s need state. By identifying the need-state you want to address, you will be better able to underst and your customers and increase the resonance of your communications.

If you can answer all twelve of these questions in detail, then you certainly know your customers intimately. But before you sit back and relax on your laurels, remember that people are constantly changing and what satisfies them today, is unlikely to satisfy them tomorrow. Therefore you need to keep a track on all four layers of your customer description to stay ahead of competition, as well as to satisfy and hopefully delight your customers.

As mentioned above, by answering and completing a detailed description of the target audience for my client, we were able to identify a couple of new segments that my client’s services could address. Although their demographics were similar, their emotional and need states were quite different. This gave us the opportunity to respond with slightly different service offers for each group.

If you would like to try out this exercise for yourself, we have some useful templates that we make available to C³C Members. Why not sign up and get access? It’s FREE to join.

For more information on better identifying and understanding target customers, please check out our website: https://www.c3centricity.com/

C³Centricity used images from Dreamstime and Microsoft in this post.

This post has been adapted from one which first appeared on C³Centricity in April 2013.

New Thinking for Old Ways of Business

I’ve just come back from IIeX-EU (Insight Innovation Exchange – Europe) in Amsterdam, and my head is full of exciting new things to experiment. It’s strange what happens to our brains when we have the chance to get away from the office and THINK! We become more creative, less bound by old habits, and ready to try new experiences.

After these few days away, I am fired with enthusiasm to bring real changes to my own business, those of my clients, as well as to yours through this post. I’d like to share a few of the ideas which were stimulated by some of the best presentations I’ve ever seen grouped into one single conference. Read on for four inspirational ideas for you to implement immediately, to bring new thinking into your own business.

Partner for Growth

Lowes logo eOne of the first speakers at the event was Kyle Nel from Lowe’s, an American home improvement chain. He explained that business is about changing customers’ behaviour and to do this we need to constantly update our methods for underst anding them. Lowe’s finds inspiration in partnering with organisations including Coke, UNICEF and NASA; how’s that for thinking outside the box? By connecting with companies in other industries, their thinking is constantly challenged, which enables them to grow exponentially, rather than in the linear fashion that most of us seem to be satisfied with. Kyle shared how Lowe’s accepts that whilst there may often be disappointments, the one in ten new ideas that truly deliver are worth all their efforts.

NEW THINKING: Find a catalyst for your own growth to bring you new ideas from external sources. Also look outside your industry for inspiration, and partner with a select few industry leaders that are trying new, exceptionally creative things (Like Loew’s!)

Know what you Know

Information & knowledge sharing is essentialGregory Short, author of “The Billion Dollar Paperclip”, suggested that it’s time we took a new look at our business and the eco-system in which it is operating. Amongst the list of things mentioned, he included identifying what you already know. This resonated with me because so often when new clients ask for help, they often already have a lot of the information they are seeking, they just didn’t know they had it!

Haiko van Lengen and Sjoerd Koornstra shared a Heineken case study which covered a similar point on knowledge sharing. They mentioned the 2009 Boston Consulting Group Insight Benchmarking study which showed that most companies are not using the majority of the information they gather.

Haiko and Sjoerd suggested that before doing any sort of information gathering, we should first assess what is already available internally on the topic. This review should include talking to all departments and definitely not just market research. You would be surprised how many companies operate in silos, each buying their own reports and information, and too often without the knowledge of their market research and insight department.

NEW THINKING: Find a way of sharing more information across your organisation, by setting up an easily accessible storage system. This could be as simple as a shared folder or as proprietary as a knowledge management system and library.

Don’t be Scared of Emotions

Plutchik's wheel of emotionsDiana Lucaci at True Impact Marketing, spoke about the surprising habit many marketers have of being satisfied with knowing just the “Who” and the “What” of their customers’ behaviours. She pointed out that it is even more important to underst and the “Why” of customer actions in order to impact them.

With the rapid expansion in the use of neuroscience and biometric measurement in market research, we now have the possibility to underst and a lot about our customers without even directly asking. Perhaps it’s time for you to experiment (again?). Let me know if you’re interested in trying out the leading emotional measurement tool around.

Diana also made a throw-away comment at the end of her presentation that was also later picked up by Daryl Travis during his talk on “Why emotions win the battle of the br ands”. It reminds us that there are simple things we can do that can have an incredibly positive impact on our customers’ loyalty:

“Make sure that checkout, or the last action your customer makes, is a memorable and positive experience” (>>Tweet this quote<<)

Daryl also ended his presentation with another well chosen, inspiring quote from Maya Angelou, the American author and poet:

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel” (>>Tweet this quote<<)

NEW THINKING: Review your own customer journey maps, but this time as an emotional journey and ensure that the last step is a positive experience – or urgently correct it if it isn’t!

Customers only Care about the Benefit

Benefits are what interest customersThis links to the previous comment on emotions. Michael Bartl from Hyve, mentioned that your customers don’t really care about who or how you solve their problems, only that you have a solution. Whilst this is probably correct in general, I believe there are some customers who do care and you need to know who they are. Concerns about sustainability, sourcing and ecological impact can all be relevant for some industries and br ands, so you need to check whether they are to your customers or a segment of them.

NEW THINKING: Review your advertising and see if you too spend most time speaking about rational product or service elements and less about the customer benefits. If it’s the case, make the swap to a more benefits-driven communications and measure the impact.

These are just four of the tens of pages of ideas I wrote, that were stimulated by presentations I followed during the IIEX-EU conference in Amsterdam last week. I hope they inspired your own thinking and interest in trying out some new things in your own marketing and market research. Let me know if you have any questions or comments, or if you’d be interested in getting some help in catalysing change in your own organisation.

C³Centricity uses images from Dreamstime and  Kozzi

8 Marketing Essentials for 2014

Over the past few weeks I’ve been in the US catching up with a few C³Centricity partners about marketing priorities for 2014. The meetings were as inspirational as the new products being presented at the Las Vegas CES (Global Consumer Electronics & Consumer Technology Tradeshow)!

We discussed some of the most important challenges marketing will be facing in 2014 and brainstormed some possible solutions. If you are having any of these difficulties then I’m sure you will find the following ideas useful:

Social Media Metrics

Email is a popular customer service connection pointAs many companies transfer budget from traditional to online advertising, it is essential to also shift some of your funds to measuring its impact, even if some people do question the validity of such metrics. However, the most important thing to do is to link the metrics to what is happening in your business. Your CEO isn’t interested in how many Facebook Likes you’ve managed to get, but he is interested in knowing that you gained x% in awareness. Some st andard numbers often followed are mentioned in “ 10 Social Media Measurement Best Practices” but remember that engagement and listening for better customer underst anding are also (more?) important, as mentioned in this Business Insider post. What everyone does agree, is that every campaign must have objectives and metrics to gauge their efficacy; do yours?

Storytelling

There is so much (too much?) information flowing into organisations today, but it is not being sufficiently accessed because most of it is not being integrated and analysed. Even when it is, sharing the insights is often a challenge because of the complexity of the process. Turning knowledge and underst anding into stories and then visualising or videoing them is a better way for both sharing and getting participation in actioning them. Why not review both your insight development and your knowledge sharing processes this year? If you’re comfortable with where you are, perhaps now is a good time to start storing your information and insights in easily-accessible libraries?

Showrooming & Virtual Reality

Virtual realityIt has been suggested that showrooming will be the end of retail outlets, but I believe there will be an integrated, rather than an either / or future. Virtual reality enables shoppers to see how products could be used, or how they would look in their homes, office or even on themselves. It also allows both retailers and manufacturers to improve their offer by identifying any pain points, and enables them to hold less stock and still offer maximum choice to customers. How about going online with 3D catalogues or providing in-store areas to offer your customers product trial and experience?

 

New Communication Opportunities

According to Jay Walker-Smith of Yankelovich

“We’ve gone from being exposed to about 500 ads a day back in the 1970s to as many as 5,000 a day today.”

Whether that second number should be 5,000 or 20,000 as I’ve also heard mentioned, it suggests that little can or is being retained our customers. Since this is unlikely to change in the future, as attention spans shorten even more, finding new messaging opportunities that resonate with our customers is vital. Why not use social media to track your target audience’s expressed wants and needs, and then compare them to what your key competitors are communicating. This will help you to uncover hidden communications’ gaps which you can then use to connect with your customers.

Adapting Communications to Personas

Don't alienate your business from its customersAre you dissatisfied with your current segmentation efforts? Creating personas can already add interest and thus actionability, by visualising their similarities and differences. Have you thought of taking the same approach to your communications too? By crafting personas built from your existing data on media habits and going beyond traditional segmentation, you can focus your attention on how to actually communicate with these different groups.

Channel Management

Mapping your br and’s story as told by the br and across channels can provide a “mosaic” of its communications and quickly highlight areas which need attention.Successful campaigns work across multiple channels but it is important to examine the contribution of each to avoid overlaps and gaps. Why not make 2014 your year of br and building through improved channel management?

Better Communications for Organisational Strategy

Following on from the above point, people’s attention spans are diminishing and we are all skimming rather than reading today. This means that companies need shorter, more impactful copy, for advertising and websites, but also for internal newsletters and communications. Analysing the content of communications can be very informative in underst anding the messages our customers, employees or consumers are receiving. We can no longer be satisfied with knowing just what we are sending out. Make this year the one in which all your communications resonate and provide the right messages to your targets.

Disruptive Innovation

Trends around the worldCustomers are becoming more and more dem anding – no news there! They don’t stay satisfied or surprised for long. What was novel yesterday is normal today and boring tomorrow. I suppose that’s why shows such as CES get so much air-time on local, national and even international media. We all love to dream and imagine a better life just around the corner. The same goes for our customers, who are always open to new and better propositions.   What are you doing to meet these increasing dem ands? Is your innovation linear, exponential or disruptive? If it’s not the second and hopefully the third, you are probably missing out. Why not make 2014 the year you disrupt your innovation process?

These were eight of the tens of ideas that I discussed with my partners to help companies identify their marketing priorities. Have a look at your plans and see whether you are still playing it safe by just repeating what you did last year? The same number of campaigns, the same promotions, even the same type of innovations. There’s still time to make 2014 the year of exponential growth and change for your company. 

Out of Sight, Out of Mind: Is this Why you Can’t Get Closer to your Customers?

As we get to the end of 2013, it is common for many of us to review what we have and haven’t accomplished during the year. If becoming even more customer centric was one of your objectives, let’s review one aspect of it, that of really underst anding and getting closer to our customers.

It is good to remember that even if we want to become more customer centric and might have planned it as one of our objectives this year: 

“Customer centricity is a journey, not a destination”

It is something we need to keep top-of-mind constantly and continuously look for even more ways to make the customer the heart of the business. Deep customer underst anding comes from a multitude of sources of knowledge and information that has been gathered, built up and integrated over time. Nevertheless, the way we go about doing this, can make a huge difference to our chances of success in underst anding and pleasing our customers.

There are four ways we can collect and then use information and knowledge about our customers, and all are necessary for the deep underst anding that brings customer delight and business success.

#1. Hindsight

Hindsight is backward looking but still gets you closer to customersDespite the ever-increasing flow of real-time information into a company, this is arguably still the most used “sight” in customer underst anding today. We record or measure what our customers do; where they bought; how much they consumed; what advertising they saw and when. Unfortunately, despite the possibility technology provides us to record and send this information immediately to businesses, for most organisations, these metrics are based on past performance by the time we get to analyse them.

Even worse, this is exactly the type of information that we use to estimate how healthy our br and and business is going to be in the future. We assume that the market will stay roughly the same and that our continued efforts will be rewarded with similar, if not greater success. However, in today’s fast-paced world, nothing stays the same for long, especially not the customer.

Examples of hindsight are market shares, media consumption and shopping habits. Whilst br and equity can also be considered hindsight, it has been found that declining image often precedes a sales decline, so could arguable be seen to contain elements of both hindsight and foresight.

#2. Eyesight & Hearsight

Eyesight  and Hearsight helps you get closer to customersThis is the qualitative element of the previous “sight”. It helps us to confirm the decisions we take about important metrics to follow, or can deepen our underst anding of the information we have already recorded. Management can sometimes feel less comfortable with this type of knowledge if it is not complemented by “solid” quantified information. However, it is a powerful way to more deeply underst and our customers’ thoughts and behaviour and to share it with others.

Examples of eyesight include observation and ethnography, listening in to call centres and following or joining in to online social media discussions and chat. In addition, new technologies are exp anding this area with additional sources, often using biometric and / or neuroscientific readings. These include retail eye-tracking, webcam emotional facial analysis and online impact algorithms. (If you’re interested in learning more about any of these, which are available through C³Centricity and its partners, I would be happy to discuss further with you over Skype or a quick call)

#3. Insight

The spark of insight brings you closer to customers

This is what hindsight and eyesight should ideally be developed into. This suggests that no single piece of research, nor one project, should be expected to deliver insight, at least on its own. Insights come from combining different sources of information and knowledge, into underst anding and insight. Until we underst and the “why” behind the knowledge we have found, it is unlikely that true insight can be developed.

Depending upon your own definition of an insight, these can include an explanation of the behavioural change sought, or a statement, voiced from the consumer’s perspective, of what their need or issue is and what feelings they are looking to achieve when they solve it.

#4. Foresight

Foresight is planning for the future whilst getting closer to customersAlthough a business may be successful if it develops insights alone, in an ideal world it should also be considering the future and likely changes to the current situation. This will enable an organisation to be better prepared to take advantage of future opportunities, as well as to plan for possible risks.

For some, going beyond insight to foresight might mean making them feel uncomfortable as they are forced to think about possible scenarios that perhaps they would prefer NOT reflecting upon. And yet it is only by thinking about them and planning for our reactions to such situations, that we can really be best prepared to meet the opportunities and challenges the future might hold.

Now that I have summarised the differences between these four sights, I want to go back to the title of this post, “Out of sight, out of mind; how we underst and our customers”. I believe that underst anding comes out of these four sights and the integration and making sense of everything coming out of our minds. As technology starts to replace traditional market research information gathering and in some case the reporting too, we should be looking to move our skills’ emphasis from gatherer to sharer of insight.

Risks of not opening up to other sights

So, which sight are you using more often? As I already mentioned, we need to use all four, but not necessarily in equal proportions. Their use will each time depend upon the situation in which we find ourselves, but working with all four will ensure we try to underst and our customers from all possible perspectives.

If you work mainly with hindsight, you may risk a delay in reacting to market changes and new situations, so you need to strengthen your foresight. This can be done by following societal trends and then developing future scenarios to challenge your thinking.

If you work mostly with eyesight / hearsight, perhaps it’s because you feel threatened by the risk of your hypotheses and assumptions being proven wrong by “hard” facts. If this is the case, why not try quantifying some of your observations to see whether or not what has been observed is normal behaviour or merely your perception of reality?

If you work in an organisation that runs a lot of market research projects and draws conclusions and action plans from each one of them individually, it is time to strengthen your insights. (If you don’t have a process for developing insights from information integration, then contact us and let’s discuss how we might support you to develop a proprietary one). Perhaps surprisingly, insight development can actually save you resources, since running an evaluation of what is already known – the frequent first step of insight development – may produce the required answers and avoid the need for further studies.

Finally if you are living mostly in the future, you may be unaware of current opportunities / threats that quantification can indicate. Even when comfortable working with foresight, a business still needs to be managed on a day to day basis and for that, nothing beats a few numbers. Whilst foresight is essential to long-term business growth, the hypotheses must be based upon facts rather than assumptions.

Which sight do you need to strength in 2014? How are you going to do that? Plan to start this coming New Year by taking a critical look at which sight you are currently most comfortable using and then decide to strengthen your other sights. Please share your thoughts with everyone below.

Would you like some help with your own insight development process or information gathering? Then let us help you catalyse your customer centricity; contact us here

This post was inspired by one published on 11th January 2013 in C³Centricity

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Are you MAD? You may be if you’re still doing any of these

I may be mad, but whilst North America celebrates Thanksgiving this week, I am NOT going to talk about it. That already makes me different from every other blogger, newspaper and magazine at the moment! Instead let me start with a story.

It was not a comfortable position to be in. I was facing my doctor for the nth time, who was telling me for the nth time that I would have to get my weight under control. Last year he suspected that I was gluten intolerant, but being a bread lover I didn’t listen too hard, although I did try not to eat it every day. However, I did still include gluten in all my meals in one way or the other and over time these have become the main ingredient of many of them – pasta, chips, risotto anyone?

It was Rita Mae Brown, not Einstein who is often attributed with it, who wrote in one of her books:

“Insanity is doing the same thing over and over again but expecting different results”

Although Psychology Today would disagree, it does sound pretty mad to do the same thing and expect different results, so I must be mad to expect a different outcome from my gluten “addiction”!

Perhaps you have a similar dilemma in your own personal or professional life, perhaps even both. Well I’ll stick to what I know, with the following examples of madness in work; why not check how “mad” you really are by reviewing them?

#1. Following trends and not applying them to the business

Trends around the worldMAD: It is certainly important to underst and the market and the way things are changing. However trend following is what your competitors are doing too and probably they’re following exactly the same trends as you are. AND almost certainly working on new product ideas that meet these identified trends, just like you.

SANE: Develop the trends into future scenarios. You’ll be looking further out for indications of possible opportunities and risks that you can prepare for before they happen.

SEE “Turning trends into Future Scenarios and the 10-step process you need to do it” for more on this topic.

#2. Hanging on to outdated metrics or measurement tools

MAD: You may be proud that you can track br and image or other metrics back ten, fifteen or even more years. Comparability is great, but only if you are consistently reviewing your metrics and adapting them to the changing environment so they remain relevant.

SANE: Regularly assess the image attributes you are using, adding or eliminating items to ensure a good coverage of both your and your competitors’ br ands. The same goes for any other tracking you might run on a frequent basis. Have consumption or purchasing habits changed? Have new distribution or media channels opened that you’re not following? Make sure you’re not running projects on autopilot.

SEE “Are you happy with your Market Research” for more on this topic.

#3. Ignoring that the world has gone mobile

Multiple connection choices with customersMAD: For anyone over 25 or 30, it is difficult to imagine that someone would prefer to text rather than call, but that is exactly what younger people do today – a lot! So how are you going to reach them? They won’t be at home waiting to see your advertising on the TV or keen to answer the questions of your next market research study.

SANE: Adapt how, where and when you communicate with your customers, as well as the messages you share. Become a trusted adviser, a useful partner rather than just a seller of your wares. Investigate new ways of getting the information you need; try mobile, online, social media analysis, or real-time monitoring as a start.

SEE “What’s keeping marketers up at night & solutions to help them sleep” which covers many of these areas.

#4. Continuing to develop multiple advertising concepts to just before airing

MAD: Too many organisations continue to develop multiple advertising concepts, almost to pre-airing readiness, before getting their customers’ feedback. Whilst this may be the way you’ve always done things, and your ad agency isn’t going to suggest you change, there are better ways to get high-performing communications.

SANE: Get early input from your customers about the possible directions, or use a tool such as PhaseOne’s meaning segments analysis. This will ensure choice happens early in the process and your money can be spent on airing rather than the development of doomed communication concepts.

SEE “Four steps to building br and affinity” for more on this topic.

#5. Innovating using your technical knowledge rather than by better underst anding your customers

Innovation leversMAD: Your R&D people know your products really well and have the skills and techniques to make them. However in many organisations they know very little about the people that will use / consume them. Therefore it doesn’t make sense to let R&D alone decide what the company will be selling in the future.

SANE: Your customers may not be able to tell you what they want, but they almost certainly can tell you what they DON’T want, as well as the problems they are having in certain situations. Wouldn’t that be a better place to start investigating possible new product opportunities?

SEE “How to get R&D excited about innovation” for more on this topic.

#6. Not using the information you’ve got

MAD: The knee-jerk response to information needs is usually to request market research, but most organisations don’t make use of the information they already have.

SANE: Whenever you need to underst and a situation, start by gathering and reviewing everything you already have on the topic. In many cases this will be sufficient to finding your answer. If not, it will give you a precise objective for any further information gathering that is necessary.

SEE “Increasing your information ROI: turning knowledge into gold” for more on this topic.

#7. Not watching and listening to your customers regularly

Watching & listening to customersMAD: Leaving customer connection to your market research suppliers, sales & merch andising teams or call center personnel alone.

SANE: Making it company “policy” for (almost) everyone to connect with your customers on a regular basis. This could be through connection events, call center following or even just attending market research fieldwork. Regular contact with your customers provides invaluable – and free – information on their changing needs and desires.

SEE “How to become a fan of your customer” for more on this topic.

#8. Actioning market research results rather than insights

MAD: Market Research is a useful tool for reducing risk in decision making, but it is rare that one project alone will deliver deep insight. It is only when multiple sources of data and information are integrated that true insights can be developed.

SANE: Besides a first review of all available information mentioned above, identifying the behaviour change you are seeking is a great way of ensuring that market research and information integration lead to insight.

SEE “A new guide to insight development” for more on this topic.

#9. Expecting your customers to call you in office hours

Social media as part of plansMAD: It is naive to expect all your customers to not only accept to wait until your care center is open, but also to expect that everyone is happy to connect by phone.

SANE: Make it easy for customers to contact you because if you don’t, many will get frustrated and just voice their issues on social media. Provide all possible channels of communication, so that your customers can choose the one that best suits their needs: phone, email, postal mail, even your physical address. Also make sure that at a minimum, you are available when your product or service is most likely being used. This means meal times for food and cooking products or in the evening and late night for TV, Internet and Telecom services for example.

SEE “How great customer service leads to great customer loyalty” for more on this topic.

These are just a few of the areas where continuing to run your business without due care of the changing world is total madness. What mad things is your company doing that you would love to change? I am sure we’d all love to hear about your own insane examples.

Need help in sorting out a few “mad” practices in your company? Let us help you catalyse your customer centricity; contact us here.

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Does your Organisation Really Need a Market Research Department? And in the Future?

There’s been a lot of talk recently about New Marketing; how communication is now all about engagement, how the consumer is boss and such like. But there has been very little said about New Market Research, perhaps because there isn’t any! If you’re concerned by this situation, whether you work in marketing, market research or a completely different area, then read on for some thoughts on how this situation can and must change.

Earlier this year I wrote about the future of market research / insight departments and what researchers need to do within their organisation to improve their image and perceived value. This week I want to take a wider look at the profession in general. 

Current Perception of Market Research

According to  Wikipedia, Marketing is “The process of communicating the value of a product or service to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers” The definition of  Market Research is “Any organized effort to gather information about markets or customers. It is a very important component of business strategy”.

What is interesting in comparing these two definitions is the difference in appreciation of the value to business of the two. Marketing is said to be a “critical function”, whereas Market Research is said to be “very important”. Perhaps this is why Market Research Departments continue to be hammered, their budgets are constantly under pressure and their value to the business is questioned.

Well, things are about to change, or at least there is an opportunity for this, if researchers take up the incredible chance offered to them in today’s world of information (over?) abundance. You can’t continue to do the same old same old when marketing, and more importantly the consumer, is clearly on the move.

 

What Business gets from Market Research

I think that one of the biggest problems that Market Research has (continues to have) is that Marketing and Management in general, find it too complex. What is often delivered from market research, BY researchers,  tends to be numbers and findings, not underst anding, insight and recommendations.

We no longer need market research to share the numbers and information today. More and more often, these are coming automatically into companies from an ever-growing number of sources, and a lot of it is even in real-time, something market research results never were! Think sensors on products, GPS on smart phones, retail purchases with debit / credit / loyalty cards, social media interactions …. DataShaka recently wrote in their The Lab an interesting perspective on data management and information sources which you might want to check out.

That’s a lot of data; indeed Aaron Zornes, chief research officer of The MDM Institute, was recently quoted in Information Management as saying that “a typical large company with (has) 14,000 or so databases on average”. And most of that data will be just sitting around in IT storage systems, rarely reviewed and even less likely to be integrated for meaningful knowledge development. It needs analysts and who better to interpret the meaning of all this data than market research?

What Market Research could Offer Business

 

What an incredible opportunity! The question is whether the market research profession is ready to take it up; whether researchers are ready to move from data gatherers (alone!) to interpreters and storytellers. Signs of the urgency for this change are everywhere. In a recent report by BusinessIntelligence.com (you can download the full report there), one of the conclusions drawn was that CEO’s are not getting what they need (from Big Data). Instead of Dashboards, they were more likely to be getting emails and spread sheets!

The market research profession took a small step to reinventing itself with the introduction of insight development, but this is still well within their comfort zone, and still not being done as effectively and consistently as it should. Today, market research / insight departments are being asked to make a much bigger leap into the realms of unknown territory, even for those already comfortable working with BigData.

The Questions you Need to Answer

In conclusion, here is what I believe all market research suppliers, agency and client-side researchers should be asking themselves today:

  1. Am I ready to move from data gatherer and sharer, to synthesizer and interpreter?
  2. Could I agree to the information I will be required to analyse NOT coming from statistically validated, representative samples of clearly identified populations?
  3. Will I accept that I have little control over the data sources I do use and even less over the information that is streaming into the organisation for all to see?
  4. Am I willing to shift from sending emails and spreadsheets, or presenting graphs and data, to speaking about how the world and consumers are changing?
  5. Would I happily move from sharing descriptions of data and knowledge to telling stories built from it?
  6. Can I get comfortable speaking about maybe just one or two consumers rather than about large(ish) groups of them?
  7. Am I capable of accepting that true insight development doesn’t come from one study or database, but from information integration of multiple sources?
  8. Am I ready to give up the name of my profession as market researcher?

If you can’t answer YES to all of these questions, then I believe you should consider changing jobs, before you find yourself redundant and replaced by the information analytic, machine-learning “robots” of the future.

What do you think? Is it already too late for market research? Can the profession reinvent itself? ESOMAR, which claims to be “The essential organisation for encouraging, advancing and elevating market research worldwide” has been asking a lot of the right questions about the future of the profession recently, but it is up to researchers everywhere to make the change happen. Are you going to join the lead now, or follow reluctantly when your own management questions whether they really need a department that clings to the old ways of collecting and analysing information?

Let me know how you feel about your own market research position, whether you are a member of a supplier or client-side organisation. Are there other challenges or opportunities I forgot to mention? What name would you give to your future profession?

Need help in updating and reinventing your own market research department and responsibilities? Let us help you catalyse your customer centricity; contact us here

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

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