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Five Ideas to Improve your Insight Development

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

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

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

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

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

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

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

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

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

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

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

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

#3. Insight development needs more than Insight professionals

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

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

#4. Insights are usually based on a human truth

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

Examples of human truths include:

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

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

#5. Insights aren’t always category specific

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

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

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

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

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

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

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

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

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

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Are you Happy with your Market Research?

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

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

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

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

 

Market maturity

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

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

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

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

 

Size of the Budget

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

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

 

Br and Life-cycle stage

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

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

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

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

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

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

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Is there a Future for Insight Departments?

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

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

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

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

#1. Find out what management really needs

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

#2. Review the information you currently collect

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

#3. Revamp what is important

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

#4. Share the knowledge

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

#5. Integrate for Insight

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

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

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

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

Improving the ROI of Information Investments

If you have ever worked in a typical organisation, you will have almost certainly been under pressure at times to reduce budgets. Each time this happens, market research and information gathering tend to be one of the first areas to be cut. After all there doesn’t appear to be a negative impact on sales, so its Return-on-Investment is questioned. Sound familiar? Then read on.

Unlike advertising and communications to your customers, information gathering does not have an obvious link to sales, at least in the short term, so it is the first target many managers choose when looking to reduce costs. If you are tired of having to constantly defend your budget then I have some ideas to help, so that next time someone comes looking for money, it won’t be from your budget.

#1. Take your (internal) client’s perspective

What is the boss getting for his / her money? If you reply lots of data and information, then that is the reason your budget gets cut. People who have problems don’t want data they want solutions. Therefore don’t provide nice tables and graphs, but rather a story to inspire the changes you recommend, based upon your findings.

#2. Review your methods

Are you still doing the same type of information gathering that you’ve done for the last five, ten or even more years? If so then it is time to review your methodologies, questionnaires and reporting. The world is changing fast and you can’t expect the questions you developed years ago remain as relevant today as they once were. Take a look at your customers and see how they have changed and what needs to be measured today. That way what information you do collect is likely be in areas that are new to the organisation and thus invaluable.

#3. Review your reports

Another habit we can get ourselves into is to continue to produce the same old reports with the same KPIs, graphs and tables. Or sometimes even worse, as I once sadly witnessed in a major FMCG / CPG; the reports just kept getting bigger and bigger as more and more information was added. It got to the point where management woke up to the fact one day and (rightly) cancelled the whole report!

As with methodologies, your own reports need to be regularly updated. What are your own clients really using out of everything you circulate? You may be disappointed to see just how little they use. If they are not reading / reviewing everything you send, then stop sending it. When you get over the shock, you will be happy to have more time to develop more useful analyses. After all, the main reason we get locked into habit is that we don’t have time to think!

#4. Review your costs

Are you working in a regional or global organisation? If so, has your company negotiated discounts for multiple purchases of their different external reports and analyses? Many suppliers are open to providing a discount for a st andardised report or mass purchases of regular reports they produce. However they won’t offer them if they find unnecessary multiple purchases, why should they? You have to ask for them.

#5. Review your value

With the above four points you may be able to avoid a budget cut next time, but you need to also prepare for future crises. Review what value you provide and admit honestly whether or not you would pay what you cost your organisation, for the information and insights you provide. If not, then act quickly before someone else realises this too. Find out what your clients need and provide more of it. Perhaps even more importantly, find out what your clients may need in the future and are maybe not yet aware, and pre-empt their request by offering it. That will certainly impact your value and their appreciation.

If you follow these five tips, then you have a good chance that your budget will not be cut next time your manager has to make a cost-cutting exercise. Have other tips to add? Please add your comments below and also share these with your colleagues. They will appreciate your foresight.

Let’s discuss how we can help you achieve a better ROI on your information investments; contact us today and check out our website: https://www.c3centricity.com/vision

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Which Sight do you Use the Most?

There have been a lot of posts in the last few weeks suggesting we take a look back over our experience in 2012 or to start planning what we would like to do in 2013. I therefore thought I would combine both perspectives by reviewing how we can work more efficiently with customer underst anding and information to develop deeper insight and grow our businesses.

All organisations try to underst and their customers in order to satisfy their rational needs and emotional desires. The way they go about doing this however, can make a big difference in how successful they are. There are globally four ways we can consider to collect and then use information and knowledge about our customers:

#1. Hindsight

This is arguably the most used “sight” in customer underst anding. We look back and record or measure what our customers did. Where they bought; how much they consumed; what advertising they saw and when. All these metrics are based on past performance and we often then use this information to estimate how healthy our br and and business is going to be in the future. This is based on the assumption 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 preceeds a sales decline, so could arguable be seen to contain elements of both hindsight and foresight.

#2. Eyesight

This is the qualitative element of the previous “sight”. It helps us to qualify the decisions we take about what is important to measure before we do so, 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 quantified 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, as well as online social media discussions and chat.

#3. Insight

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

Depending upon your definition of an insight, these can include a statement voiced from the consumer’s perspective of what their need is and what feeling they are looking to achieve in solving it.

#4. Foresight

Although a business can be successful if it develops insight, 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 threats.

Going beyond insight to foresight can mean making ourselves uncomfortable by thinking about possible scenarios that perhaps we would prefer avoiding. However it is only by thinking about them and planning for our reactions in such situations, can we be best prepared to meet the challenges the future may hold.

Now that I have summarised the differences between these four sights, which are you using more often? To be successful we need to use all four, but not necessarily in equal proportions. Their use will depend upon the situation in which we find ourselves, but we need to be able to work with all four of them, in order for our businesses to remain healthy.

If we work mainly with hindsight, we risk being unprepared for market changes and new situations, so we need to strengthen our foresight. This can be done by following societal trends and developing future scenarios to challenge our thinking.

If we work mostly with eyesight, we may feel threatened by numbers and the chance of being proven wrong in our hypotheses and assumptions. Why not try quantifying some of our observations to see whether or not what has been observed is normal behaviour, or due to some sort of bias in sampling or due merely to our perception?

If you work in an organisation that runs a lot of market research projects and draws conclusions from each of them individually, it is time to strengthen your insights. If you don’t have a process for developing insights from information integration, then C3Centricity can help. Insight development can actually save you resources, since running an evaluation of what is already known may produce the required answers and avoid the need for further research.

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 supposition.

So, which sight do you need to strength in 2013? How are you going to do that? Start this New Year by taking a critical look at which ones you are most comfortable in using and decide to strengthen your other sights. Please share your thoughts with everyone below. 

For more information on all these sights, please check out some of our ideas and training here: https://www.c3centricity.com/home/

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5 Tips for Global Project Management

One of my global clients recently called me about a problem her team was having implementing a process change within her organisation. After a long conversation, during which I gave her some tips on global project management, she was happy to continue the work with renewed enthusiasm.

If you are facing a similar challenge at the moment, you should find these five ideas I shared with her, to be of use.

#1. Involve the markets

This particular client works for a leading consumer packaged goods company in their London headquarters. One of the biggest challenges a global organisation can face when introducing process changes, is getting market buy-in, even when centralised.

My suggestion was to invite five to ten market representatives to work on the project team with her. Whilst a face-to-face meeting or two will be needed in the beginning, the project can usually continue with conference calls or webinars once it is under way. I also suggested taking a selection of markets from her different regions and not just the major ones, which always seem to be chosen due to their importance. This will reduce, but perhaps not totally eliminate a “it won’t work in our market” type of reaction which could slow down or even exclude adoption, especially by emerging markets.

#2. Allow for culture

When working in a global or regional environment, we often wrongly assume that everyone is making allowances for cultural differences. For this reason it is vital to double-check underst anding and agreement at every major milestone and before each new step is started. Although there is often an over-simplification of cultural differences made, such as Asians tend to always agree, Germans are not flexible, or Americans are opinionated, it still remains true that people think differently. The advantage of a diverse project team is that it includes people with differing perspectives, so make sure everyone appreciates the diversity, listens and adapts to it as appropriate.

#3. Involve different departments

I am amazed at just how many projects can be running simultaneously in large organisations. Whilst this should not be surprising with today’s dem and for rapid change and continuous innovation, I am always disappointed that in most cases, only the members of the department working on the project are aware of it. This may appear normal until one realises that most projects have impact beyond just departmental borders and sometimes can in fact actually be redundant. Let me give you an example.

I was once developing a proposal for a customer information integration programme and I discovered that there were four separate projects that were already running on similar areas to my project. And none of the departments were aware of the others’ projects! R&D was developing a st andard customer complaint classification; finance was harmonising category and br and definitions; market research was developing a tool for analysing customer call content and customer services were updating their platform.

I am sure you can see the value there would be in the departments collaborating together in order to avoid duplication of effort. Luckily, I was able to integrate and prioritise all five projects, making each department responsible for their specific part of the whole development. Everyone felt good about it because they saw the implications of the integration, and realised that the impact of the combined project would be greater than that of each separate plan alone.

#4. Think forward

Even when different departments are collaborating, there can still be an issue with taking the bigger picture. This is particularly important when planning for future expansion. I have witnessed several projects fall short of their potential, by not considering the future needs as well as todays. Are all areas going to exp and? Will customers have different needs? Will the company have different needs, different partners, or different categories and br ands? All of these can impact a project’s system and platform in the long-term and need to be considered before anything is developed.

#5. Over-communicate

Especially when the project team is spread across the world, it is vital to keep everyone informed about progress. In addition to the conference calls and webinars mentioned above, status reports with input from all areas on a regular basis will ensure that everyone underst ands how their part builds into the whole. It also shows that they are responsible for the success of the total project, as they will see the impact of delays or changes they initiate.

These are just five of the tips that I shared with my client and I am looking forward to hearing from her soon, that the project is now back on track and advancing successfully.

What other tips would you have given her? Please add a comment below.

If you are looking to improve your own global project management and knowledge sharing processes, please contact us for an informal chat. No Obligation, just Inspiration!

For more ideas on process development, knowledge sharing and many other topics on customer centricity, why not sign up for our weekly email and monthly newsletter? Just complete the form on the right of our homepage: https://www.c3centricity.com/ 

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Social Customer Service: How to be Responsible, Resourceful & Ready in Real-time

A recent Infographic got me thinking about what has and hasn’t changed in customer service thanks to social media. In fact I should have said what has still not changed and MUST change in the very near future.

If you feel that you haven’t made all the necessary changes to meet the challenges of the new social customers and their dem ands, then read on for four actions you should be taking to improve your customer service.

#1. Responsibility

Marketing, Sales and Customer Service all have contact with customers and therefore also responsibility for them. Today these departments must work more closely together to provide a seamless connection with the customer. They need to build on each other’s efforts to satisfy the customer, so that each customer perceives that there is one company working to delight him and that he is really important to them.

Action: Employees from all customer-facing departments need to meet regularly, at least monthly, to exchange and share their latest experiences and learnings. What are customers talking about, complaining about or dreaming of? What new opportunities are there to get ahead of competition in better satisfying these current or latent needs? Organise regular exchanges or “lunch & learn” sessions and if you work in the USA recognise your most active employees by signing them up in the “Most Engaged Employee Contest”.

#2. Resources

Most organisations underst and the importance of their customer, and we all know they are more than ever in control thanks to social media. However, few companies are investing in developing their customer centricity and keeping their customer database current. Business needs to start walking the talk so their customers notice and feel a difference in how they are being treated, listened to and satisfied.

Action: Did you know it costs about 8 times as much to acquire a new customer as it does to retain a current one? Review how you collect and store your customer information. Have you verified their details in the last year? Most companies have upwards of 28% of their database which is out-of-date; when did you last check your own level? Is data stored by br and or business unit? Integrate the information, so the connection with your customer is seamless, more intimate, knowledgeable and fulfilling for you both.

#3. Ready

Social Media connections are growing exponentially but is your organisation staying ahead of the curve?. Recent figures from the latest Burson Marsteller Global Social Media Check-up 2012 suggest there are more than 10 million references to major global companies on social media every month and more than half of these are are on Twitter. Companies need to be following these discussions in addition to responding to customers in the usual way through call centers, email or postal mail.

Action: Review and revise your care center resources and training. Ensure you have a sufficiently growing number of trained staff to be available when the customer most needs to contact you. Provide the customer service agents with the knowledge, information and authority to respond to customers on social media as well as over traditional contact means. Remember that nothing disappears on the web, so written responses need to be accurate, precise and appropriate. If not you may fall into a PR disaster similar to the one Nestlé found itself in on its Facebook page in early 2010.

#4. Real-time

Did you know that customers expect a more rapid response to queries than they are used to getting? This is driving them to non-traditional methods of interacting with customer service agents such as chat and social media. According to the latest State of the Industry report from Acxiom and Digiday 74% of companies cannot respond to customers in real-time. How have you changed your care centres to respond to this dem and?

Action: Review your current customer service practices to ensure you are responding to your customers’ dem ands in real-time or at least offering a short-term solution. Have you made your agents available 24/7 or found a way to propose an alternative solution to customers who might contact outside normal working hours but when they are most likely to need help with your product or service? Customers expect answers within one to four hours these days.

These are the four essential steps that most organisations have still not taken to respond to the new social customer and their increased dem ands. What are you waiting for?

If you have taken other steps to optimise your organisations customer centricity to respond to the dem ands of the social customer then please share them here.

For more information on customer connection, please check out our website: https://www.c3centricity.com/home/engage/

10 Things your Customers won’t tell you

Customer centricity has many organisations buzzing in anticipation today. Everyone seems to be talking about it and saying how important it is to the success of their business. 

We are all trying to satisfy our customers as best we can, but all too often we continue to take our own perspective, instead of theirs. Here are ten things your customers wished you knew about them.

#1. I’m sometimes irrational

Don’t ask me why I do what I do. Sometimes I don’t even know why I do things myself! If you really want to underst and me, don’t ask me questions, be a part of my life to underst and things from my own personal perspective.

 

#2. I like gifts

Yes I know I won’t tell you I bought something because I saw it advertised, but the promise of a gift really does help. We never get enough gifts, especially as an adult. Even if I know it is not that special, it makes ME feel special on an otherwise ordinary day, so go on, give me an unexpected treat.

 

#3. I like advertising

Yes I know I tell you it doesn’t matter, but I really do like watching some ads on television. Especially if they make me laugh or tell me something I didn’t know, or entertain me. I will watch them and even more than once, so your br and name might just be in my head when I next go shopping.

 

#4. I don’t like being taken for a fool

I know prices are going up all the time, but don’t try and fool me by putting less and less in the pack whilst maintaining the same pack size and price. One day I’ll notice and I won’t be happy – at all!

 

#5. Don’t promise what you can’t deliver

Also, don’t try to fool me by promising something on the pack you can’t or don’t deliver. OK you need to make your product or service look appealing to me, but if you over-promise and under-deliver it will only make any negative feelings I might have become even stronger. Even if I buy once, it’s doubtful that I’ll buy again if you have disappointed me.

 

#6. I’m just not that into you

With very few exceptions that I am really passionate about, most products and services I buy satisfy a need that I am looking to fulfil. There are usually choices available to me, so don’t take my loyalty for granted. Every purchase is a decision for me, so make it easy by always satisfying my continually exp anding needs. If you don’t, one of your competitors can probably do just as good a job as you do.

 

#7. Don’t confuse me with statistics

Whether it is offering different pack sizes at differing prices, or calculating fat / sugar content by weight instead of calories, I check your maths with my smart-phone today. I believe I should get larger sizes for less money per gram, and lower fat / sugar content for less calorie intake. I will check your claims, so don’t play the numbers game with me.

 

#8. Be happy when I complain

If I complain about something it means I care. You should be happy that I care enough to actually tell you when I am dissatisfied. Make it easy for me to contact you, give me a choice of mediums and make damn sure you satisfy me completely when you listen and respond. I will not only take my business elsewhere if I am unhappy with your response, but will probably tell the whole world about it on social media too.

 

#9. Respect my ignorance

I like to know what you are offering me. What ingredients you use; where they come from; are they from sustainable sources; can I trust you? Give me the information I need, when I need it. Don’t bombard me with too much, or hide less positive things from me. Discuss with me as an equal, don’t talk down to me, after all I pay your wages.

 

#10. Be thankful I’m not satisfied

I know I may sometimes be a pain, but be thankful that I buy from you, tell you what I think of it and ask for more, better, larger, smaller etc etc. My need for constant change and improvements will challenge you to greater things and if you satisfy my rational needs and emotional desires, I might just stay loyal. Oh yes, and don’t believe everything I say; as I said in the beginning I can be irrational, so underst and not what I am saying, but what I mean by what I say.

What are your customers saying to you? Are you listening? No-one knows them better than they do themselves, even if they don’t know how to express what they are feeling / thinking in many cases. They might not always know what they want, but they can always tell you what they don’t want.

What have you heard lately? Please share the surprising comments your have listened to recently.

For more information on customers, how to connect and underst and them, please check out our website: https://www.c3centricity.com/

The shocking truth about managing data: it’s simple!

There is so much talk about information and Big Data these days, every organisation is feeling swamped by the belief that they should be doing more with their data.

From gathering more, to analysing more, and developing more insights about their customers, they are also afraid that their competition is doing more. If this is your situation, then this post will provide the answers you need.

Organisations have always collected information about their customers; it’s nothing new. Whether this is through conducting market research studies, or simply from obtaining details when customers buy something, there is already a lot you can do today to manage your data. However, there is an even bigger opportunity to get a better underst anding of your customers and their needs and desires, when you integrate all the information sources you already have at your disposal. This is why there is so much news about Big Data these days. For all of you that have been shocked into inaction by all this talk, here are some simple ideas that you can use to start your own journey to managing your data, whether Big or Small:

 

#1. Make your information more visible

You are certainly already collecting a lot of data, both internal and external, but it is probably only the former that is shared today; sales, distribution, targets, budgets, plans and forecasts are the most common examples of this. How are all these numbers shared across your organisation? Why not develop a simple dashboard showing the most important numbers?

Using comparisons to competitors, indices and trends are generally the most useful way to provide a quick overview of business, into which viewers can then dig deeper, depending upon their area of interest. You don’t need to show it all on the dashboard, and you shouldn’t try, just keep the summary to the KPI’s that are most relevant for everyone to know.

For more on how to choose your KPI’s see here.

 

#2 Make your information more available

You already have many sources of information, but who has access to it? If you are like most companies, it is the department that collects the data that analyses and uses it, and other departments rarely know of its existence, let alone get to see it. Why not develop a library in which you can store all the information and insights that are gathered and developed, and then give everyone access to it?

This library can be as simple as a folder in a shared file, an Excel folder, an Access database, or a more sophisticated system that can manage budgets, projects and suppliers, as well as the storage of the processes and reports. Some organisations are afraid of doing this for fear of information getting into the h ands of their competitors, but access rights today are easy to manage so that you can significantly reduce such a risk.

You can find more information on knowledge sharing here.

 

#3. Make your information more actionable

Much of the information that companies gather is backward looking, coming from sales and distribution that have already happened or your customers’ consumption and usage habits of last week, last month or last year. Whenever you gather any sort of information, it is a good idea to review the description of your target audience for each br and, in order to ensure it is as complete and as deep as possible. This should not be a once a year exercise, at the time of plan writing, but a continuous process to stay in close contact with your customers’ desires and changing opinions and behavior.

You will almost certainly find that in today’s fast paced world, they have changed quite significantly in some areas. However, even if the current descriptions have not changed substantially, the review of your information should enable you to enrich it further for an even better underst anding. Additionally, in order to build insight and foresight the information you gather needs to be complemented by forward looking metrics such as trends and future scenarios. By looking at how your customers are adapting today, and hypothesizing on their future changes, your organisation will be better prepared for future opportunities and challenges, providing a real competitive advantage.

To learn more about developing your Vision & strategy check here.

 

#4. Make your information more readable

If you have gotten beyond the amount of data that is humanly possible to analyse, you need to consider building a database that can be analysed and modelled with the help of complex analytics. This is when information starts to become BigData and can result in a step-change in the insights an organisation can gain from it.

The sophisticated algorithms that can now be developed can make your information “speak” more clearly about your customer and become usable for many different purposes. You can try hypothesizing about your customers future behaviours, the likely success of your promotions or innovations by region or country, and then get near real-time answers to your questions about them. In some cases, you can even simulate market response to new ideas before they are even launched, in order to identify the best roll-out plan, or even to decide whether or not to launch in the first place.

If you yourself are at this tipping point, as descibed in Malcolm Gladwell’s book of the same name, and need support in developing your integrated marketing database, please contact us so we can share with you some of the successes our clients – your competitors? – have already had.

These are just a few ideas on how to make more and better use of the information you are already gathering. What made the biggest change for your own organisation in the use of the information and knowledge it gathers? Have you reached the tipping point to BigData yet? If you are proud of what you’ve done, why not share it with everyone here?

For more information on developing processes for the integration of information, the development of insights and the internal sharing of  knowledge, please check out our website: https://www.c3centricity.com/home/underst and/

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Build Better Insights in just 4 steps

We are lucky to be living in an information rich environment, where numerous data sources are readily available to us.

However, this can also be a challenge since we are usually:

“Drowning in data and starving for insight”

as I have often been quoted.

If you too are drowning in data, take a look at these four easy steps you can take to meet the challenge of better insight development. We call them the four “I’s” of Insight development to impact business:

Step 1 – IDENTIFY: first identify the most relevant pieces of information for the issue or opportunity you have selected to address, as well as for the business or industry you are in. How do you decide what is relevant?

Look at who your target audience is; what do they like to do in their spare time; what are their hobbies; what are their needs, desires and dreams; what motivates them; what are their basic values? What are they tweeting and blogging about? Do they speak about problems they have with the products and categories you are reviewing? All of these will help you to really underst and them and what issues or opportunities there are for your product or service and br and.

Step 2 – INTEGRATE: once you have gathered and prioritized the most valuable sources of information, it is necessary to integrate them in order to reap their full benefits. Customer information and facts that are integrated help to build deeper knowledge. It also enables the extraction of essential underst anding on which the business can grow.

Data integration can be done manually or using technology, which is advisable when managing large amounts of information. Integration of underst anding can be done by looking for themes and key topics that get repeated across the different sources.

Step 3 – INSIGHTS: after integration of the information, you need to develop the insights. If you haven’t already done so, get a mixed team of experts from different relevant departments together to review all the information, and have the project led by one of your Market Research or Insight group. They will love both the recognition and the challenge of running an insight development session, using everything that has been gathered and integrated.

Step 4 – INSPIRE: as the team begins to hypothesize insights coming out of the information, find someone who can then synthesize their findings into a compelling story. Storytelling will fire enthusiasm into both the team and the company at large, and everyone will be more ready and willing to take the required action. Storytelling helps the findings and insights to be transmitted to all interested parties within the organisation. In some cases, a presentation using storytelling is sufficient for decisions to be made.

How do you develop insights in your own organisation. Do you have other ways to integrate information and knowledge? Please share your ideas with everyone.

For more on Insight development, please see our website https://www.c3centricity.com/home/underst and/

This post first appeared in C3Centricity Dimensions on December 29th 2011

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Ten reasons NOT to commission market research: Part II

If you commission or conduct market research, then you really should read this post, which concludes the Ten reasons not to commission market research.

Last week I shared with you the first five of my ten reasons not to run a market research project. You can read it here if you missed it. Here are the remaining five reasons.

#6. When findings would not be actionable

If the information will just be “nice to know” but will not be actioned, and I have seen enough of those in my career, then you shouldn’t be running any research. This can happen when the objectives are not well defined, or when action needs to be taken, but no one knows what to do, so they decide to conduct some research.

Running a research project will certainly get people into action, but not necessarily in a relevant way and will anyway delay the required situation analysis that is more important to be undertaken.

#7. When market research is politically motivated

This situation can arise when a researcher is relatively young in his or her career and doesn’t feel confident enough to refuse a project. It can also be linked to a half-hidden requirement from the management concerning the outcome as well. This puts the researcher in the difficult situation of working on a project that will be ignored if it doesn’t confirm the boss’s opinion.

In these situations it is vital to agree upfront what actions will be taken based on the otucome, before the research is undertaken. In fact this is a good idea for all projects; review possible outcomes before the project starts and evaluate the consequent actions that should be taken. They might not be firmly agreed, but at least everyone will have had the chance to review possible outcomes and to think about their consequences, before the results are presented. It will hopefully open peoples’ minds and if this is not the case, well the project should not be run.

#8. When what is to be measured changes only slowly – or too fast

Everyone today underst ands the importance of measuring br and image, to underst and what their customer perceptions are of their offer and how it differs from what was intended. In most industries, unless there is a significant change in the market such as a powerful new competitor or communications drive, the images of the br ands will change relatively slowly over time – certainly more slowly than marketers would like. Therefore it doesn’t make sense to measure it more than bi-annually, or annually at most.

The same would apply to usage and habits in a market where very little is happening and customers rarely switch br ands or segments. In most of these cases, market research run in the last few months can often be sufficient for most assessments of issues and opportunities.

However, there is also the case where habits are changing almost daily, such as in a heavily discounted or promoted category. In these cases, it is best to either run  a continuous measurement and present rolling averages, or measure at the same time each year, accepting that it will be just a “snap-shot” of the true market’s reality at the moment of the fieldwork and will have already changed by the time the results arrive in many situations. Following trends and changes then becomes more important than the actual level at the time of measurement.

#9. When the information provider / institute is not “OK”

Many agencies have been around a long time and have built up solid reputations for high class, accurate data and information gathering. Newer agencies can be faced with a hard struggle to gain market share and a few are tempted to “cut corners” to be able to offer cheaper prices or shorter timings, in order to get the business.

I remember once discovering that an agency had in fact only run half the agreed number of interviews for which we had paid, and had then “weighted” every answer in the database during its analysis to show a larger base size. Unfortunately for the agency, we asked for the weighted and unweighted base sizes – which is always recommended to ensure there are not skews in the sub-samples.  This is how we discovered the deception.

Especially when budgets are tight or timing is too short, neither MR agencies not departments should be tempted to meet the dem ands of management by resorting to such practices.

#10. When the information already exists

This is linked to #1 mentioned last week; all projects should start with a detailed situation analysis during which time all current knowledge, information and underst anding are reviewed. In some cases it can just be due to laziness that a new study is asked, rather than taking the time to review the results of all previous market research surveys and analyses.

This completes my list of the ten reasons NOT to run a market research project. If everyone checks that none of them are the reason why they want to run a project before commissioning the work, it will ensure that resources are used correctly and both client and agency will be happy with the outcome.

Have another point you think should be on the list? Then please share it below.

If you would like to know more about underst anding your customers, please check out our website here: https://www.c3centricity.com/home/underst and/  Or why not contact us today to discuss how we can help you optimise your own market research processes? No obligation, just opportunity!

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Ten reasons NOT to commission market research: Part I

If you commission or conduct market research, then this post is for you. It shares some of the reasons I have learned over the years for NOT doing research, but which are unfortunately still prevalent today. Here are the first five of my ten; are you guilty of any of them?

#1. When the issue / opportunity is not clear and the objectives are not well defined

Most organisations will have a briefing of some sort, written or oral, for each piece of research required. It usually includes the background to and the objectives of the research, which should be specified in terms of the opportunity or issue identified, as well as the relevant information and data already gathered and analysed. If it doesn’t include these basics, it might mean that someone wanted to know or underst and something and just thought research could quickly provide them with the answers. Wrong! The best studies come from a thorough situation analysis which should include a complete review of all current knowledge and past research findings.

#2. When the cost would exceed the value of doing the research

Following on from the above point, when requesting a study, if the objectives are well defined, then the decisions and actions resulting from the findings should be clear and therefore also the expected benefit of the information too. Thinking about how you will use the data and information gathered is one of the best ways to estimate the true value of it before it is gathered. If the decisions and actions to be taken cannot be clearly expressed, then the research results will be just “nice to know” and not “need to know”.

#3. When the budget is too small to do an adequate job

Most agencies would agree that clients often want a top-class work, but at a lower price than it would cost. Some clients even make a point of negotiating all prices downwards on principle, but their reputation soon goes before them and agencies start adding an amount that they will then remove in answering the client’s request for a cost reduction.

A second example of this aspect of cost is when a client wants to do some research but doesn’t have an adequate budget to cover it, so requests something “quick and dirty”. My recommendation would always be to refuse to get involved in such a project. If it is worth doing it is worth doing well, and a good agency will always work with the client to accommodate their needs as best they can within the budget available.

#4. When time is an enemy

How many times have you been asked to run a research project, but in fact the requestor is actually in need of the results – now?! As already mentioned in #3 if a study is worth doing, it is worth doing well. Today there are luckily more opportunities to reduce the time needed to run a study, using panels, the web, or by reducing the sample size or number of groups / regions. Again the best projects are developed as a win/win, with client and agency working together to deliver the highest quality results within the available resources of both time and money.

#5. When conducting the study would “tip off” the competition

This is a difficult situation to be in, as this is often a worry of management, especially when running research on innovation projects. Whilst it is a very valid concern, and a lot can be done to limit the risk, it cannot really be totally eliminated.

There is also the view that in many industries, all major companies are often working on very similar developments within a similar time scale, so competition is not likely to be surprised if they learn about your own efforts. The most important thing to do to reduce to a maximum the risk of tipping off the competition, is to ensure that people who work or have friends or family members working in relevant professions and positions, are eliminated at the start of the research.

Next week I will complete the list with the remaining five reasons not to do market research, but I would already like to know if you have been guilty of any of these and if so, what you did to correct the situation.

If you would like to know more about underst anding your customers, please check out our website here: https://www.c3centricity.com/home/underst and/  Or why not contact us today to discuss how we can help you optimise your own market research processes? No obligation, just opportunity!

Please share this post with all your colleagues who you would like to help underst and why not all market research requests are approved!

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