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4 “Free” Ways to Connect with Customers for World-Class Understanding

Last week I spoke about five of the most important actions you can take when starting your journey to improved customer centricity. If you missed it, you can read the post  here; it will be good background information to build from for this week’s ideas and suggestions.

In this post, I would like to continue to support your efforts with some suggestions on an area that many struggle with, that of connecting with and underst anding your customers.

I believe that one of the main reasons for this, is that the target customer segment has been poorly defined. Perhaps it is too wide, such as all category users, or only superficially described just in terms of demographics. C³Centricity’s 4W™ Template, free to download in the members area, will provide a simple way for you to complete a more detailed description of your customer. Once you have that, you can then start to connect with them to deepen your underst anding of them.

1. Retail connections

There are numerous ways that an organisation can connect with its customers. If you have a retail presence, then this is as simple as going to a few of them  and then talking to the customers present. If you yourself don’t own the outlet then you will need to ask permission of the owner, but since retailers are also interested in getting to know their customers better, they will usually accept in exchange for your sharing any learnings with them. (>>Tweet this<<) Customers are more sensitive to value than price

Another opportunity to connect with your customers in retail is through promotions, demonstrations and sampling activities. These have the added benefit of being able to speak with customers who are already interested in what you have to offer, because they have stopped beside your st and. They also are generally more willing to take the time to talk to you even if they are busy, something which can be a struggle if you are just walking up to customers in the store. (>>Tweet this<<)

In addition, I have found that both these exercises can be a great way to improve your image with the retailer and may even warrant special treatment for your br and.

2. Secondary connections

If you don’t have the luxury of meeting your customers in person, then there are still ways to learn more about them. If you have a call centre, then why not listen in or even spend time answering calls? It is both a rewarding and useful exercise to do. This is why many organisations such as Zappos, make their new employees do just that in their first few weeks after being hired.

Market research can make you more customer centricMarket research projects are also another easy way to observe and listen to your customers, although in general you will be a silent observer behind the interviewer, who is asking the questions. Some people prefer to follow focus groups or in-depth interviews, even from behind the two-way mirror, since they will have the opportunity to impact the discussions by feeding questions to the moderator.

A third way for you to make these less direct connections is by following social media discussions. These can either be on the major platforms such as Twitter, FaceBook, Pinterest and Instagram, or your company’s own panel if you are lucky enough to have one. In either case, I would encourage you to observe and not get actively involved in the conversations. There have been many infamous embarrassments caused by under-qualified people responding to heated customer conversations on social media. DiGiorno (Nestle) and Progressive are just two of the more recent examples; this post gives many others that can heed as a useful warning should you be tempted to get personally involved.

3. Website connections

Today, most organisations rely on some form of online presence, to be available wherever and whenever their customers would like to connect with them. Understanding why your customers need to contact you is important to providing them with the best experience. 

Understanding why your customers need to contact you is important to providing them with the best experience. Click To Tweet

The first place to ensure you are supplying the right information is on your contact page. Are you requesting customers to complete an online form where you request many details from them? If so, it is definitely worth checking if everything you are dem anding is really necessary for that first connection. Name, email address and perhaps telephone number if you plan to call them back, should be sufficient, together with the reason they are wanting to contact you.

Connect with customersSecondly check that you are giving your customers multiple ways for them to contact you. (>>Tweet this<<) The form mentioned above is a rather anonymous connection, since there is no way for the customer to follow up, other than by sending a second completed form. The vast majority of consumers hate such forms with a vengeance and prefer to chat directly, or at least to be given alternative contact choices. Therefore you should provide your email address, telephone number and ideally a postal address. How many times have you been interested in a company only to find that you don’t know in which country they are based? Frontiers today are more linguistic than geographical, so your customers have the right to know whether or not they can visit your offices in person.

One area where this becomes vital is in online purchasing. Ensure that you make it as easy for customers as possible to shop your website. Enable them to check-out as a guest if they want, rather than imposing the completion of a long form of their details. Kissmetrics wrote a great post on this topic, with good and bad examples, which is worth a read if you are selling online.

Finally you should check the performance of your website; how many visitors do you have, where do they come from and what are they looking for in terms of information? This underst anding could be a whole post topic on its own, but since there are many already available, suffice it to say that if your website is getting few visits or your customers are bouncing away quickly, then it is not serving its purpose of building a relationship with your customers. (>>Tweet this<<)

4. Sharing connections

Meeting and getting to know your customers is probably one of the most enriching and inspiring experiences an organisation can have. (>>Tweet this<<) There is so much you can underst and about your current category and br and users by talking to them, that everyone should find ways to do so on a regular basis. As already mentioned, this could be by speaking with them directly whilst shopping, during a market research project, or over the internet. Share experiences when you connect with customers

You won’t be able to speak to everyone, so you will also rely on your colleagues to make such connections, or even external hostesses. This is why it is important that you get a full debrief, ideally in person, whenever you can.

It amazes me every time I speak to demonstrators, that they just go home at the end of the day with rarely any sort of debrief back to the client. On the rare occasions when they do tell their supervisors something of interest that they discovered, they are generally met with a lack of interest and enthusiasm. What a waste of intimate knowledge about the customer, their likes, dislikes and unmet needs and desires! Therefore share whatever you learn with your colleagues and ask them to do the same.

These are four ways for you to get a deeper underst anding of your customers  and which are probably already available to you today. How many are you using on a regular basis? Which have you found to be the most useful or inspiring. Please share your experiences below; it would be great to hear about your own successes.

Winning Customer Centricity BookThis post has been inspired by the first chapters of Winning Customer Centricity and includes images from the same book. You can buy it in Hardback, Paperback or EBook format in the members area, where you will usually find a discount code. It is also available on Amazon, andnoble.com/w/winning-customer-centricity-denyse-drummond-dunn/1121802409?ean=9782970099802″ target=”_blank”>Barnes and Noble, iBook and all good bookstores. If you prefer an Audiobook version, or even integrated with Kindle with Amazon’s new Whispersync service, you’ll have to be patient a little longer.

Why Marketing doesn’t Always Get the Research it Needs, But Usually What it Deserves

Why do marketers sometimes complain about the market research they get? I’ve often heard comments during presentations such as “We already knew that” or “This can’t be right” or “Why can’t you answer the questions I have?” I am sure you have said something similar yourself or been on the receiving end of such statements. What’s going on?

I believe that one of the reasons for such comments is poor briefing. Poor briefing by marketing which results in a poor market research brief to the supplier. If you too are sometimes dissatisfied with your results, then read on for some useful tips on how you can get the information you need.

Briefing

A market research brief is a document that helps a market research specialist to deliver the knowledge the business needs, in a timely manner. In some cases this will require conducting a market research project, but not always. Sometimes, it may simply be necessary to re-analyse previous work, in a different or more detailed way, in order to answer the questions asked.

Therefore I would never encourage internal clients to always think in terms of requesting a market research project when they are looking for information. In fact I would actively discourage it. This is especially valid when budgets are tight, as cheap research is often useless research.

Choose what you Need

As noted by Arthur C. Clarke, there is a management “trilemma” encountered when trying to achieve production quickly and cheaply while maintaining high quality. This is the basis of the popular project management aphorism “Quick, Cheap, Good: Pick two.” Conceptualized as the project management triangle as shown below, this aptly applies to market research projects as well.

A trilemma

Marketing is a profession where progression is often rapid and therefore the marketer may not be aware of all the information that is available within an organisation. In my opinion, it is essential for market research specialists, who are more likely to have been in their position for many years, to appropriately advise and support their internal clients, and not be just order-takers. (>>Tweet this<<) Unfortunately in many companies this is what they have become, which is such a waste of knowledge and expertise!

When it has been established that a new research project is required, then the brief becomes the vital first step for getting the information that is needed, when it’s needed. It should be drawn up to meet individual internal requirements, and as a minimum it should contain the following sections:

1. Background

This should provide all relevant information on your company’s situation and what risk or opportunity has been identified, as well as how and why this has been identified. Previous reports and studies that are relevant to the situation should also be mentioned and of course have been reviewed for answers before a market research survey is requested. 

2. Objectives

Clearly defined objectives are essential to the success of any project. In addition to the background, detailed objectives allow the best possible work to be carried out  and ensure the research meets them as fully as possible.

Their precision will also avoid many of the comments mentioned above, since everyone will be starting from the same level of knowledge and underst anding, and will have agreed that there is a gap in underst anding that can only be met through the running of a research study.

3. Decisions to be taken

Knowing what questions are to be answered and how the information obtained will be used, will help to identify the best methodology. For example if large investments will be necessary to action the results, then a quantitative study should be conducted, to ensure solid information and as reliable a result as possible.

However, when looking for your customers’ ideas, thoughts, feelings, issues and desires, you could find such answers through a qualitative study or perhaps from the analysis of social media comments online.

The methodology which is finally chosen will have a direct impact on the project’s pricing, so underst anding how the results will be used will avoid any waste in resources. 

4. Budget and Timing

These go h and in h and, both with each other, as well as with the choice of methodology. Normally faster is more expensive, as it requires a larger field force or online panel, and a tighter control of the project’s progress. It is also essential to underst and any budget limitations, as one that is too small for say a large quantitative study should prompt the market research expert to refuse running it. As quoted above, good, cheap, fast, choose two!

One further point is that if timing is too tight, especially for the delivery of results, you may not have enough leeway should something go wrong in fieldwork, or there is the need for more time to analyse the output. I always agree with the often quoted advice of Tom Peters, the American writer perhaps best known for his 1982 book, that he wrote with Robert H Waterman Jr and which is entitled, ‘In Search of Excellence’:

“Formula for success: under promise and over deliver” 

Formula for success: under promise and over deliver Click To Tweet

This doesn’t only apply to timing or market research either; it applies to everything else you have to deliver as well!

5. Research target and approach

Although the MR specialist is the expert, any (internal) client suggestions about the respondents to contact or their preferred methodology to be used, should be clearly identified. If your client doesn’t believe in qualitative work, it may be unwise to rely solely on such a technique. I’ve known companies – dare I say quite a few in the US? – that run tens of group discussions, just to have a “sufficient sample size of respondents to analyse.” If you are likely to meet such criticism, then I think it’s better to know before you start, so you can make relevant changes to the methodology!

6. Test materials and availability

If materials are needed to run the test, whether products, concept boards, advertising prints or videos, clear numbers of copies and their delivery date must be specified. Too often they are delivered late but the research results are still expected to be provided on the agreed date, which just puts everyone under unnecessary and easily avoidable stress. 

7. Deliverables

Not all research needs a detailed report (>>Tweet this<<); sometimes a presentation or summary of the results is sufficient, especially when timing is tight. Again, knowing upfront your internal client’s needs can impact both cost and timing and the likely success of the outcome.

So there you have it, a summary of the seven major parts to a good market research brief. Of course, in reality there are many more sections that can be added, which are more dependent upon internal priorities and specific industry or category requirements.

This post was prompted by a request from a client who is looking to update their market research and insight processes. If you too would like to upgrade yours, then why not contact us today and let’s discuss your own particular needs? Each of our offers is unique and customised, and can include a market research toolbox audit, process updates and one-day catalyst sessions to get everyone on the same page within your organisation.  

The image used in this post came from Denyse’s forthcoming book Winning Customer Centricity, now available for pre-order on C³Centricity, Amazon.com and Barnes & Nobles.

Are you Jeopardising your Customers’ Loyalty? Or is it Going to Disappear Anyway?

As you have no doubt already noticed, my Blog posts and those of many other Bloggers too, are often prompted by real-world experiences. This week is no exception.

I want to share with you some examples of how companies jeopardise the loyalty of their customers and also seriously limit their chances of getting repeat purchases. But manufacturers aren’t the only guilty party; there have been some interesting comments on retail loyalty as well these past few weeks, so I will touch upon that too.

Promising More than the Customer Gets

This week I bought a new br and of bacon; I fancied a real English breakfast for once. When I opened the pack up, I was shocked to see that under the first three or four deliciously lean slices, was a pack of rather fatty, poor quality meat. Now why would a company do this? To make the sale of course. Seeing such great quality you would rightly expect the pack to contain similar meats to the front slices.

Another example which uses a similar ploy involves packaging. How often have you been enticed into buying a new product because of the picture on the pack? Or perhaps it was in an advertisement showing a delicious-looking meal or an amazing improvement to the skin or hair? Sometimes the pack content or product result may be acceptable, but when it’s not, you’re disappointed rather than delighted, aren’t you? (I previously wrote about one such experience in a post on br and honesty here) Again, why would a manufacturer set themselves up to deceive the customer into buying – once?!

Are such behaviours customer-centric? Certainly not! They are deceitful tricks used to sell customers less than they were led to expect. Yes you may get the sale, but you won’t get repurchase and certainly not loyalty. Which do you want? One, several or long-term purchases?

Raising Prices without Saying so

Most major markets have seen low rises in their CPIs (consumer price index) in 2014 with Switzerl and actually in the current situation of a deflation! However that hasn’t stopped several manufacturers from increasing their prices. Or should I say decreasing the content of their packs, as that seems to be the more usual response of many of them? This is not a very customer-centric approach to pricing.

The shopper is buying the same br and at the same price, but the contents, which the consumer rarely verifies, have decreased. If the reduction is significant, consumers may notice that the pack is significantly larger than the contents inside, which may then prompt them to check the actual weight they have bought.

A recent article in the UKs “The Telegraph” talked about some of the most noticeable offenders, including Birds Eye (Pirmira’s Iglo Group) and Twix (Mars) c andy bars. However many categories were using the same method of hidden price rises.

A survey of 1,257 UK’s Which? members found that over half (58%) said they would rather prices rose than packs got smaller. A further 37% would rather the pack shrank, but only if they were told. (>>Tweet this<<)

 

M andatory Sign-ups for Free Products

There are hundreds of new offers on the internet every day, trying to entice new customers to “try before you buy”. However some sites dem and m andatory sign-up to the paid program before allowing their customers to test their service. Credit card details and other personal information is requested, supposedly to “help the customer to subscribe more easily” should they decide to buy after the trial period.

However there is also most likely an automated transfer included from the free to a paid service should the customer forget to cancel in time. They then find themselves in the situation of buying a paid suscription without full knowledge of it. Is this customer centric? Of course not. If a customer decides to buy, he would be much happier to provide the necessary information to do so at the time of purchase. Again, you may have sold one more membership, but are extremely unlikely to get a happy or loyal customer.

 

Cheap isn’t Always Less Expensive

More and more airlines and hotels are selling their services “on the cheap” or at least that’s what it looks like. However, when you start adding on the extras, those attractive prices don’t seem quite so cheap anymore.

Take a low-cost flight for instance; in Europe that would probably be with Ryanair or EasyJet, and in the US with SouthWest Airlines or JetBlue. In addition to the cost of the flight, you will often pay for hold luggage and sometimes  carry-on items too, as well as food on board, priority boarding, seat reservation, pillows, blankets, headphones and even entertainment.

Hotels will add on charges to guarantee bed type, taxes, WiFi, breakfast, gym use, bag storage, resort fees and even m andatory gratuities.

IMG_0217Retail advertising and promotions are other areas where shoppers need to have their wits about them and a calculator on h and. The old adage that bigger is better no longer seems to apply. If several sizes are offered purchasers really need to check prices per 4 ozs or 100 gms. The BOGOF (buy-one-get-one-free) and BOGO promotions can also sometimes work out more expensive than buying one pack at the usual price charged.

One of my favourite promotional ads of all time is one I photographed in the UK at the local Pound Store, the equivalent of the Dollar Store in the US. See the photo above. Now that really is a bargain!

Consumers are Getting Wiser

The above are just a few examples of “tricks” that manufacturers and retailers play on their customers. It’s almost as if they are trying to see just how far they can go before their clients notice. Well, I think we have noticed, and this is confirmed in an article on CMO.com that caught my eye last week. It mentioned a panel discussion at the National Retail Federation’s Big Show in New York City. Faisal Masud, Staples’ chief digital officer and EVP of e-commerce, who was part of a panel discussion at the event, made the following comment:

“Consumers are agnostic to where they shop. The days of window shopping and just paying the price you think is fair are gone. A lot of folks don’t even want to interact with people or companies. They just want their goods fast and at the lowest possible price. For that reason, a lot of the retail loyalty programs are a little bit doomed.”

I would add that a lot of br and loyalty will go the same way if practices such as those mentioned in this article continue. I believe these behaviours are short-terms acts of desperation of a losing br and. In fact I spoke in detail about using pricing in another post calledAre you on the way to br and heaven or hell?

Winners treat their customers as important people who have a choice and to whom they offer the best product or service they can, to satisfy, delight and why not also surprise them? If you are still thinking of such trickery as a way out of your current br and decline think again. It’s just not customer centric.

Do you have other examples you have seen of behaviour that is not customer centric? If so, I would love to hear about them.

And if you would like help in finding a solution to your own current business issue I would love to help. Just contact me for a chat and let’s see where it takes us.

C³Centricity used an image from Microsoft in this post.

Are P&G Right to End Marketing?

In the last couple of weeks, there has been a tremendous amount of discussion around P&G’s decision to change marketing into br and management.

The consumer products world closely watches whenever P&G announces changes, whether to their strategy, marketing or in this case their organisational structure. As this AdAge article (herementions “P&G seems well out in front of the rest of the marketing world — or what used to be known as the marketing world — on this”.

As businesses have become more social, there have been a lot of articles about marketing. Some have spoken about the need for marketing and IT to get together, if not even merge in some way (See this Forbes article). Others have proclaimed the end of the CMO’s position altogether, including the infamous piece by IMD’s President Dominique Turpin “The CMO is Dead ..… Welcome to the CCO. Then there have been even more articles challenging marketing to show their worth and suggesting metrics to prove their ROI (See  Fournaise 2011 study of 600 CEOs or  Forrester’s Marketing Performance Management Survey).

The fact that there have been so many different pieces on the topic over the last year or so, suggests to me that marketing is still vital for and extremely attractive to business, but that it is in desperate need of reinventing itself. I believe this is behind P&G’s move.

At the end of last year I wrote a post proposing what I thought would and wouldn’t change and what needs to. Six months on, in light of P&G’s announcement, I thought it useful to review my list:

What will change

  • Marketing can no longer work alone in a silo; it needs to become more collaborative and more commercial or business oriented. It can no longer remain fuzzy and hide behind claims that its ROI is difficult to measure.
  • anding customer service opportunities” width=”375″ height=”226″ />The sales funnel will be (has already been) replaced by the purchase decision journey, which will be a multi-layered, flexible representation of the route to purchase. For more on this, read “How Great Customer Service Leads to Great Customer Loyalty”.
  • Advertising  and messaging TO the customer will be replaced by valuable information made available FOR the customer. In line with the longer sales journey and multiple online consultations, communication will become more informative, more useful, more timely.
  • Local will no longer be geographic but “Native”. Whether it’s language, habits or interests, customers will be targeted on their similarities that will rarely, if ever, include geographical proximity.
  • Mobile web consulting will become the norm, so br and sites need to become adaptive. Content will aim to inform, educate and entertain first and foremost, rather than sell, and websites will become flexible and adaptive to the differing screens and customer needs.

What won’t change

  • The customer is still the king, but content joins the ranks in almost equal position, needing more respect and value, and less commoditisation. For a great post on this read “5 Ways Content Marketing Must Change in 2014”.
  • Recommendations will remain a vital part of choice and decision-making, but they will no longer come from just friends and family. They will come from organised collection – think TripAdvisor or Angie’s List – or from (self) proclaimed experts through their Blog posts and faithful followers.
  • Customer (consumer) underst anding remains vital and in fact the need for underst anding will even increase as customers will be in constant evolution.

What must change

  • We are all swamped with messages and information and yet – perhaps because of this – our attention span is declining. Messaging must become shorter and simpler as people use headlines to decide whether or not to stick around.
  • In addition to the increased need for informative content, it will need to engage as well as (or is it more than?) inform. Storytelling will become an essential skill for marketers, both internally and externally.
  • Wearable technology will totally change our where and when decisions of messaging. The customer will not only be in charge of what messages are received but when to be “visible” to receive them.
  • The old marketing funnel to advocacyHaving changed the sales funnel to a path to purchase, the usual loyalty funnel no longer works. The simple path from awareness to loyalty will be replaced by a constant and consistent battle for trust. What’s more it will never be truly “won” as customers continue to be fascinated by novelty.
  • Marketing can no longer depend on creativity alone. It won’t be enough, as if it ever was, and marketers will need to get (even more?) comfortable with their BigData and its usage.
  • Customer underst anding will come from multiple sources and market researchers will become underst anding analysts responsible for turning the unstoppable flow of information into the organisation, into palatable morsels of digestible stories.

Although I didn’t predict P&G’s change, it does in fact address most of the above, by combining four functions under the new title of Br and Management: br and management (formerly known as marketing), consumer and marketing knowledge (their name for market research), communications and design. At least by combining these groups under a single leader they will be forced to work less in silos and there should be more and better collaboration. Only time will tell if this move will be successful.

Do you think P&G’s change is the right move? Will you consider doing something similar? I’d love to hear your thoughts, especially if you are, or aspire to the “old” CMO or marketing roles. 

If you need help in adapting to the new world of marketing, why not work with one of the new breed of marketers? Someone who combines cultural sensitivity with creativity and technical know-how; a catalyst for the change your organisation needs. Contact us here  and let’s discuss your needs.

C³Centricity used an image from Microsoft 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.

How you React to Failure could Make you a Success

These past few weeks I have been speaking about very basic, rational and tangible subjects like br and planning, innovation and portfolio management. Therefore I’d like to take a step back and look at a more philosophical and emotional approach to marketing this week. After all we’re all creatives, even if these days we must manage br and data almost as often as we create communications.

Life is a journey made up of highs and lows, wins and losses, and the same applies to business. This week I have been working on a new product idea based upon the most popular Blog posts on my website. These are the ones that suggest actions coming from some of the most inspiring marketing quotes I’ve found over the years. In my search for new ones, I was reminded of one of my all-time favourites:

“A man’s life is interesting primarily when he has failed. I well know. For it’s a sign that he tried to surpass himself”

Georges Clemenceau, French Statesman

I love this quote for two reasons. Firstly because it reminds us that we all – without exception – fail sometimes. And secondly, that it is these failures that are the signposts of our moving forward. If we never try anything new then we are unlikely to fail.

Why is it then, that at least in Western culture, we are taught to avoid failure and celebrate success? Shouldn’t it in fact be the other way around? A similar proverb shows how Eastern culture has, at least in my opinion, a better perception of failure:

“Fall seven times, st and up eight”

Japanese proverb

In other words, it is not the failure that matters as much as what we do afterwards. If we learn from it and get back up, then success will follow. In fact it was the prolific inventor Thomas Alva Edison who it is claimed “failed” thous ands of times before he succeeded in inventing such things as the phonograph, the motion picture camera, and a long-lasting, practical electric light bulb. As far as he was concerned:

“I have not failed. I’ve just found 10,000 ways that won’t work”

We have all known and will continue to experience failure, but it is what we do after it that differentiates winners from losers, the successful from the less so. However, failure in itself doesn’t mean that you have failed, only that you haven’t as yet found the right way to succeed.

So with a few more inspiring quotes on failure, let’s all think about the future, st and back up and take action; success might just come from our very next idea.

1. “It’s fine to celebrate success but it is more important to heed the lessons of failure” Bill Gates, American Businessman (>>Tweet this<<)
THOUGHT: Do you only celebrate success? If so, your business is giving out the wrong message. In fact we learn much more from our failures than from our successes.

2. “Failure is not fatal, but failure to change might be” John Wooden, American Coach (>>Tweet this<<)
THOUGHT: Learn from every failure and celebrate those who share theirs with everyone, because it takes courage to do so, but also gives free learning.

3. “By failing to prepare, you are preparing to fail” Benjamin Franklin, American Politician (>>Tweet this<<)
THOUGHT: Lack of success can come from a lack of preparation, as much as from a lack of, or incorrect action. Thinking before acting increases the chance of success.

4. “Failure is simply the opportunity to begin again, this time more intelligently” Henry Ford, American Businessman (>>Tweet this<<)
THOUGHT: Every failure teaches us something new. Use that knowledge to change the future and get closer to success.

5. “The difference between average people and achieving people is their perception of and response to failure” John C. Maxwell, American Clergyman (>>Tweet this<<)
THOUGHT: As already mentioned everyone fails at times, but successful people don’t stop, they just try again, but differently.

success comes from failure

6. “Failure doesn’t mean you are a failure it just means you haven’t succeeded yet” Robert H. Schuller, American Clergyman (>>Tweet this<<)
THOUGHT: I love this one, as it gives hope for the future. Never take failure – or success for that matter – personally. We are all just on a road of growing and learning.

7. “Enjoy failure and learn from it. You can never learn from success” Sir James Dyson, British Designer (>>Tweet this<<)
THOUGHT: This quote from James Dyson is particularly poignant. As Edison before him, Dyson made thous ands of “tries” before getting his inventions right (5,127 and 14 years of “failures” to get his vacuum cleaner prototype to be precise). Success is never easy and it is never fast – except when viewed from the outside.

8. “Fear of failure must never be a reason not to try something” Frederick W. Smith, American Businessman (>>Tweet this<<)
THOUGHT: We should never fear failure when we can learn from it. Success should be feared, as we might then stop trying and learning.

9. “The greatest glory in living lies not in never falling, but in rising every time we fall” Nelson M andela, South African Statesman (>>Tweet this<<)
THOUGHT: This reflects the Japanese quote mentioned above. Appreciate failure as a chance to prove your strength to st and again.

10. “Failure seldom stops you. What stops you is the fear of failure” Jack Lemmon, American Actor (>>Tweet this<<)
THOUGHT: Never give in to fear. Prepare as best you can and then if you fail, learn from it and move quickly forward.

I hope you enjoyed reading these quotes and the thoughts they prompted in my head. They say that pride comes before a fall; I say success follows failure. I wish you much success in failing fast and often, so you can enjoy more successes!

If you have a favourite quote on failure, please share it below. I’d love to add it to the collection on our website, with attribution to you of course.

Marketing Information Lost in Translation: How to Save yourself & Rise above the Competition

A recent report I came across this week shows that 76% of marketers do not use behavioral information in either segmentation analysis or targeting. They have the data, they’re just not taking advantage of it to better identify and then satisfy their consumers. This shocked me, so I went looking for more information to clarify the situation. 

The study was conducted in late 2013 by Razorfish and Adobe amongst marketing and technology executives in the US, Canada, Germany, France and the UK. According to Pete Stein, CEO of Razorfish, the two main reasons for this lack of usage are firstly that today’s marketers are driving consumer segmentation with outdated technology, processes and tools, and secondly that there is an exponential growth in the availability of behavioral data.

In another study called “From Stretched to Strengthened” IBM reports that 71% of CMOs feel unprepared to h andle today’s “data explosion”. A third study, Domo‘s “2013 Data-driven marketing survey” found that two-thirds of marketers feel unable to h andle the volume of marketing data that’s available for analysis without feeling overwhelmed, and  concluded that there were five reasons why this is the case:

  • 69% don’t have the time to analyse it
  • 66% can’t see it integrated
  • 44% don’t have the time to collect it
  • 40% don’t have access across devices
  • 40% can’t see it in real time

These statistics suggest some interesting, no vital, changes that business intelligence / planning / market research / insight (BI) departments should make to address these needs of marketers. Once made, they would increase their perceived value and recognition, as well as that of the marketing department as well. Now that can’t be bad can it?

Here are my thoughts on each of them:

No time to analyse the data

I personally believe that if the support function (BI) was doing its job properly, marketing wouldn’t have to analyse the data. In fact I don’t think it is, nor should it be, their responsibility. Of course, this does mean that BI should be attributed with the appropriate levels of resources in both time and personnel to run the analyses and generate actionable insights.

Studies conducted every couple of years by the market research arm of the Corporate Executive Board (MREB), consistently show that world-class businesses have BI departments that have progressed from methodological experts to insight consultants, and then to knowledge synthesizers. Therefore unless you allow your team to develop in this direction, the onus for analysis will remain a challenge.

Can’t see the data integrated

Even before Big Data became a buzz word, companies have struggled to break down the internal silos of information ownership. The ever-increasing flow of data into organisations has just made the matter worse, so that it can no longer be ignored. Information integration may dem and a significant investment in both time and money, but the rewards are huge.

For example, from my own experience with clients, I have witnessed a grocery retailer increase sales by 15% whilst decreasing its promotional & discount allowances by 13%. This was achieved by simply making better use of the information they already had, and enabled them to make more relevant suggestions and offers to their customers. Airlines too are realising increased buy-in of their vacation and flight promotions, through more timely and relevant mailings to precisely segmented customer groups. That was only possible because they integrated the information from their different departments.

Don’t have time to collect the data

For me the problem is actually no longer simply not having the time to collect the data, but a rather subtle adaptation of our expectations to near real-time data availability today. We have all become less patient and this as true for the CEO, as it is for the CMO and on downwards.

Marketing must become more agile and flexible to be able to react to the latest data and adjust their actions and communications accordingly. Why continue to reward retailers with promotional pricing for items that are not flying off their shelves? The money could be better spent elsewhere, whether at a different retailer more aligned to the targeted segment, or even to another type of action.

Don’t have access across devices

Tablets set to outsell PCs in 2015It amazes me that so many people are still struggling to acknowledge that the PC is rapidly losing out to tablets. In fact, according to the International Data Corp. tablets will outsell PCs within the next year or so. IDC also says that while global smartphone sales in 2013 were up by 39% over 2012, they’re expected to grow by only around 19% this year.

However, as more smartphones get connected to cars as presented at the recent Geneva Car Show, marketers will be expecting to review their latest audience data or sales during their drive into work. It therefore makes sense to enable cross-device accessibility.

As an aside, I hope marketers also underst and what this trend means to their communication plans and how they connect with and engage their consumers.

Can’t see data in real time

With the never-ending flow of information into organisations it makes sense that marketers dem and to be able to look at the latest data in real time. Retail or audience data that is a month or even a few weeks out of date is of little use in this fast-paced world in which we live. Marketers will also expect market research to provide direct access to consumers and become less and less patient of studies that take weeks if not months to complete.

My conclusion from all of this is that the C-Suite needs to invest even more in data management for marketers and not only for the financial results to which they have become accustomed. They should not dem and the ROI of marketing without empowering marketers to be able to analyse the data available to them. What do you think?

C³Centricity used images from Microsoft and Mashable in this post.

NEVER Succeed at Innovation: 10 Mistakes even Great Companies make

There have been many attempts to dethrone the blond supermodel doll Barbie over her fifty plus years of existence, mostly without much success. The latest endeavour (named Lammilly, after her creator) is different in that Nickolay Lamm is going after co-funding and has already achieved over $350,000 in just a few days according to the website.

This interesting addition to the “Anti-Barbies” story prompted a number of questions in my head:

  • Is it wise to go after a declining segment?
  • What was wrong with Barbie’s customer satisfaction?
  • Who is the target for this new doll? Child, adult, collector?
  • Why now, after so many previous unsuccessful attempts at dethroning Barbie?

Those questions and various discussions on FaceBook then got me thinking more generally about innovation and how companies have adapted their processes (or not) to today’s connected world. So here are my thoughts on how NOT to innovate:

1. Change the colour, perfume or taste of your current product and then charge more.

Pepsi innovation of Crystal PepsiThis is what Pepsi did when launching Pepsi Crystal: it lasted less than a year. Interestingly this is also what Apple just did with its iPhone 5C, except it charged less. Again it is already being discounted at Walmart because of disappointing sales, which might just be a good thing for Apple in the long run. Sales of the 5S remain buoyant and any damage to the corporate image caused by the cheaper 5C should hopefully be significantly reduced.

2. Organise an innovation team and provide them with a separate office, ideally far away from the current business.

If this is how you are set up internally, get the team back into talking distance with the rest of the business. Rather than stimulating creativity as it has been claimed to do, by being separated from everyday business concerns, it actually alienates everyone else to innovation and decreases overall creativity.

3. Make sure R&D heads up innovation so your new products can make use of your technical know-how and skills.

R&D needs to connect with customers for improved innovationWhilst this may result in technically improved products, they are all too often not in line with consumer current needs or future desires. Your research people need to connect with your potential customers regularly so they can be tuned into customers’ wants and current frustrations. Wouldn’t you rather have your R&D developing new products that practically sold themselves? As Peter Drucker said “… know and underst and the customer so well the product or service fits him and sells itself” (>>Tweet this<<). If R&D are in constant contact with your customers, they will always have them in mind when planning their product development.

 

4. Don’t let people from outside the organisation work on innovation; prefer well-established thinkers from within the organisation, preferably with more than ten to twenty years in the company.

This often happens as the result of a naïve manager lacking the required confidence to accept criticism, to challenge the status quo and to get out of their comfort zone. No person, let alone an organisation, can be an expert in every area. Why not take full advantage of external expertise to catalyse innovation? It’s certainly faster than learning   and training the required new skills internally. Just think about how many major Fortune 500 companies have joint ventures: they know something about reaping the benefits of collaboration for a win-win to grow their businesses.

5. Only move an innovation concept forward when it is finalised and everyone in the company agrees with its potential.

Apple still excels at innovation

If you wait for complete agreement on a new concept, you will never launch any new product. Rather than looking for total buy-in from everyone, accept the proof of a well-documented justification; if it looks and feels right you can learn from in-market measurement once launched to make adjustments. This is the approach often used by many successful hi-tech companies including Apple. Become a beta tester but make sure you fail fast and learn fast (>>Tweet this<<).

 

6. Follow a well-tested established process for concept development. Take time to ensure everything is working perfectly before launching.

St andard innovation funnelRigid processes and creativity rarely go together (>>Tweet this<<). Rather than working step-by-step through a st andardised process every time, accept that your approach can and should be adapted to the concept as well as market needs.

Some argue that the more ideas you have the better the winning concept. I personally think that massive numbers of ideas merely dilute both thinking and action. I recommend working through a few potential “promising concepts” with some target customers, to refine and develop the winner. I have found this approach to lead more consistently to a winning concept that customers would buy, as well as far more quickly than any st andard funnel process of proliferation and elimination.

7.  Never use social media or test amongst consumers who are outside the control of the organisation, so competition doesn’t learn about what you are developing.

As with no. 4 above, this situation often arises from less experienced managers afraid of being found lacking in creativity. In reality, competition often knows far more about an organisation’s innovations than the majority of its employees do. Therefore test and learn, then test and learn some more, whilst of course making reasonable efforts to reduce any confidentiality risks involved.

8.  Never share ideas with anyone outside the innovation team to avoid leaks.

As mentioned in no. 2 above, everyone can be creative and have great, innovative ideas. It therefore makes no sense at all to limit accepted creativity to one team alone. Whilst it is important to have an innovation lead team, all employees should feel encouraged to bring their ideas to the attention of the business. After all, we are all consumers.

9. Only innovate products and services similar to those in which you are already an expert.

This is not innovation, this is renovation. As with no. 1 above, it is unlikely to provide significant growth for a business, but it can satisfy consumer dem ands for novelty until such time as your disruptive innovation is ready. Never accept renovations as a replacement for true innovation. (>>Tweet this<<)

10. Don’t think too far ahead; after all, the world is moving so fast that we don’t know what the future will look like.

Preparing future scenarios can speed innovation

Whilst it’s true that the world is moving forever faster, this actually makes forward thinking vital not impossible. My recommendation is to develop future scenarios to challenge the organisation to think through a number of “what if” scenarios so that the business is prepared for multiple opportunities and risks.

 

These are my ten mistakes that even the best companies make sometimes in innovation. Are you guilty of any of them? Hopefully these ideas will provide you with food for thought as well as possible solutions.

C³Centricity used images from Dreamstime, PepsiCo and Apple in this post.

The New Marketing Role: Testing & Tested

There have been many discussions lately about new marketing and how the function of the marketer has changed in recent years. The position has gone from a primarily creative role to one encompassing many new competencies.

As if that wasn’t difficult enough, marketing is also being challenged more and more to prove its ROI to the business, whilst at the same time being “forced” to get intimate with IT. These are very tough times for marketers. That is why I thought I would add my support and sympathy with a few ideas on how to make your life a little easier.

A/B Testing

Oreo's creative marketing at 2013 SuperBowl

It is no longer sufficient to publish great content on the web. Marketers are required to constantly challenge their own thinking and to improve what they are doing. A/B testing is now C/D/E and almost every other letter of the alphabet.

Great is no longer enough and anyway doesn’t stay great for long in the eyes of the customer. They are now (too) quickly losing their first positive impressions, accept as normal what was surprising just one week earlier and are soon off looking for something better.

 

IDEA: It is essential to work out a detailed plan of online activities, just like any other section of the marketing plan. Decide who will publish what and when, and make sure it aligns with and supports your offline events. Incorporate testing of content and headlines into your plans too, but always leave a little space and flexibility for topical content should something inspiring happen in the marketplace. Think Oreos at the 2013 SuperBowl.

Prepare to be challenged

Greenpeace marketing against P&G

Although I don’t know whether P&G were prepared for last week’s direct Greenpeace attack on their Head & Shoulders br and, it is not something they can easily ignore. After a similar attack on Nestle’s KitKat last year, it is clear that customers feel empowered to verbalise discontent in a ferocious manner. For this reason, it is vital to be prepared for as many possible eventualities as possible. This is where future scenario planning can be of immense support.

IDEA: Watch how other br ands are being called up short and consider what you would do if something similar happened to one of your br ands. Spend time studying societal trends (you are of course following them, aren’t you?) and then develop a few plausible future scenarios. The easiest way is probably to identify the two most important axes of uncertainty and then to describe each of the four worlds created. Review and agree what marketing and management would need to do in each of these situations.

Proving what you’re worth

Marketing has never been so closely scrutinised nor challenged as in recent years. The wealth of information being produced thanks to new technologies makes it arguably easier to measure activities than ever before. So marketing is being challenged by the business to prove its ROI. It is no longer acceptable to claim the lack of direct relationships between actions and outcomes, because of the wealth of data available.

IDEA: Review and agree with management the KPIs that you both consider to be indicators of marketing success. And then measure them, regularly if not permanently. Read this article for the top ten KPIs you should be following. Real-time information has become the new norm and although challenging at times, it does provide the advantage of the possibility for a quick response when things are not going according to plan.

Getting more comfortable with data

Marketing & IT need to be friends

It has never been a priority for marketing to befriend the IT department in their own organisation, but that time has come. But marketers need help in managing all the data available to them and for this they require systems and platforms. As was reported in a recent Domo report, the majority of marketers would work with data more often if they had the time and it was all in one place instead of dispersed across platforms.

IDEA: Work with IT to develop a system to provide easy access to the KPIs you’ve identified as of most relevance. Also develop dashboards that summarise all you activities on one page and into just a few, if not one single number – which management too will appreciate.

Get intimate with your customers

Just in case you haven’t heard, your customer is in control and that includes of your own marketing in many instances. From venting their dissatisfaction on social media, to boycotting your br ands when they don’t agree with your sustainability or sourcing efforts, today their voice is most definitely heard. If you still don’t have company objectives which include spending time with your customers then you need to set this up – urgently.

IDEA: Introduce your whole organisation to your customers and make sure you put them first in every single thing you and the company does. There are so many ways for people to get a better underst anding of their customers and rather than feeling you are losing control, you can lead the area and get additional recognition as a customer representative, rather than “just” a defender of br ands. That is in my opinion the only real future for marketing.

These are just five ways that marketing is being tested today and hopefully my ideas have inspired you enough to see this as an opportunity rather than as a threat. Let me know what you have introduced in your own organisation to meet these new challenges, or maybe others you yourself have faced; I’m sure everyone would love to learn from you.

C³Centricity used images from Microsoft, Forbes & Greenpeace in this post.

Reputation and Trust: Do you Have Both?

At the end of last year I asked readers to send me their biggest challenges for 2014. The winning question was related to innovation, which I wrote about last week: “This is why your new products crash & burn“.

Another of the questions I received was related to measuring equity and the relative importance of following the image of the br and or the corporation. I respond below to this interesting dilemma and propose some ideas about what you should be following.

The three essentials of br and valueLet me start by saying that I covered br and image metrics in some detail last year in a popular post  called “ How to Build Br and Reputation and Consumer Trust: And then Track it”. The article spoke about the three important areas that you need to measure in order to have a complete perspective of your br and image, namely Rational / Functional, Emotional / Subjective and Cultural / Relational.

Whilst this is the simplest method for measuring br and equity, it is said that there are in fact seven essential elements that make a business great in the eyes of the customer. These elements are a combination of product perceptions as above, together with those of the enterprise. Perhaps surprisingly, the latter actually trump the former in driving behaviours today, so corporate reputation is now essential to follow too. It also suggests that whilst product performance, services and innovation are important, it is the companies behind the br ands that influence a consumer’s trust and final choice. If you’d like to read more about this, please click on the above link where you can find more details.

Coca Cola logo

However, measuring br and image and corporate reputation is still not going to give you all the answers you need. One of the areas that few organisations study today, even when they measure both of these, is the relationship between the images of the br ands and the company.

Unilever AXE logoFor some br ands such as Coca Cola, the relationship is both obvious and strong, whereas for Pantene or Axe the link to P&G  and Unilever may be far less evident.

P&G Pantene logo

Despite an increasing effort by both companies to strengthen the association between their br ands and themselves as manufacturer, the connection remains tenuous at best.

So how do you measure this link and underst and what the br and brings to the corporation and vice versa? Read on for a simple process.

Following Br and & Corporate Reputations is a 3-step process

Step 1: Measure your br ands’ images

Hopefully you are already doing this on a regular basis. If not please start immediately since you cannot manage br ands without knowing where you are today, even if you have a clear idea planned for where you want to go. The post linked above gives you a start on getting this done.

The one addition that you may have to incorporate in your current questionnaire is to ensure that you clearly identify whether the respondent knows who makes each of the br ands. This will be essential for the analysis later on.

Step 2: Measure your corporate image

Again you should already be doing this, but I am always amazed how few companies collect such metrics on a regular basis. The prompt for doing so is often a crisis or a change of management and vision, but by then it is actually too late. Whatever you measure in such circumstances will be difficult to analyse since you don’t know what the figures looked like before the event happened. This is why it is essential to measure it at least annually and perhaps even more regularly when a lot is happening in the marketplace.

As was also the case for your br and equity metrics, you will need to include a measurement of br and attribution for each of the companies you measure. This will again be used in the analytical phase.

Step 3: Analyse and cross-reference the information gathered

The third step of the process is to first review the images of each br and by the knowledge and awareness of the consumers about its parent company. Then review the corporate images based upon whether each is attributed or not to each of its br ands, or maybe even to competitive br ands. Then by crossing these two sets of relational information, you will get a clear picture of what the br and brings in terms of reputation to the company and what the corporate reputation adds to or detracts from each br and. Once you underst and the relationship between your br ands and your business, you can start to lay out a plan to boost your consumers’ knowledge and trust with appropriate PR and advertising.

Some organisations, including those mentioned above, find ways to associate their company name within their br and advertising. For instance Nestlé and Purina both end their ads with a company link and logo. Unilever and SCJohnson are a little more creative in showing  a fold up / down corner with their logo and name and in the case of the latter, even their corporate slogan. This is far less intrusive and leaves the br and to shine as hero in the ad.

If you already run your own br and equity or corporate reputation studies, why not combine them as suggested above, for improved actionability? If you do a different type of analysis I would love to hear about it; just add a comment below or write to me in person at denysedd@c3centricity.com. It would be great to hear your thoughts on this essential element of tracking.

This is Why your New Products “Crash & Burn”

Last month I invited readers to share some of the problems and challenges they need to address in 2014. I offered a free consultation to one lucky winner who asked the most interesting question, which could also be of interest for me to answer for other readers.

Well, the winner is Jean-Francois (JF) who has just started working with a start-up in the tech and app areas – I feel that’s more and more of us these days, don’t you? His question was:

“I would like to commercialize a new XXX; what would be the right approach to identify the consumer need and then the market potential, considering that the company has very limited financial resources?”

This is a great question and a reminder that not every organisation has access to large market research or marketing departments and extensive budgets. In fact, in many companies these roles are being h andled by one and the same person with very few resources; is that your case? If so then you will definitely find this post of interest, but even if it isn’t, I’m sure you will still find value from the ideas shared.

As I had promised, I gave Jean-Francois a one-on-one consultancy which ended up lasting several hours, as he had planned well for our session together. He also happens to be really passionate about his innovative idea, as well as in finding solutions to all his challenges.

The product JF and his team want to launch doesn’t exist on the market today, although there are some products which are unsuccessfully trying to address the perceived customer need. The proportion of product launches which fail every year is generally “accepted” to be about 95% – although why companies continue to accept such levels is beyond me! With such odds, I think it is incredibly courageous to start a whole company based around just one new product idea, but that seems to be the norm in many areas today.

Let’s start by taking a look at some of the reasons new products fail and identify ways to reduce if not completely eliminate them for your next launch.

  1. New product Process wheelThe process itself: Innovation is by definition a creative process, but many organisations use a well-worn, restrictive and uncreative process to develop their new products. They are at best most likely to come up with renovations than true innovations. The solution is to introduce some creativity into the process, and why not include potential customers in the process too?
  2. Meeting company quotas: It is surprising that with such miserable statistics concerning the likely success rate of new products, that so many companies – and which shockingly include many of the largest CPGs around – fix quotas on the number of annual new product launches. How crazy is that?! It just encourages too many new products to be launched too early, and almost guarantees failure! I believe it would be much better to seriously limit the levels of acceptance amongst all new product ideas proposed in any year, then only the best would get through.
  3. Lack of customer underst anding: This is most likely one of, if not the most important reason for new product launch failures. And I don’t mean that you should ask the customer what he wants, he doesn’t know until you make it available to him in many industries. No, I mean starting by looking at a customer’s lifestyle and seeing how you can make it easier and more enjoyable for them. If you already have a new product idea, which was the case for JF, then consider how it would make the customer’s life easier or better. If it doesn’t, then you perhaps need to reassess its market appeal.
  4. Lack of category underst anding: This follows on from customer underst anding, in that you need to identify how the customer is currently working around or compensating for their need today. Don’t assume you are competing in a certain category until you have identified what the customer is currently doing or using. That is the way to identify your true competition.
  5. Not living up to your promises: If you promise a better, cheaper or more enjoyable experience, then customers deserve to be able to confirm this if they buy. Especially in today’s connected world, if you disappoint by not meeting customers’ expectations, your product will fail even more quickly than in the past, since early-adopters will Tweet or leave comments on Facebook, Blogs or other social media platforms for all to see.
  6. Not being sufficiently differentiated: Following on from living up to your promises, customers need a reason to change behaviours, and depending upon the category this can be costly, whether in time, money or effort. Many customers prefer to continue buying an inferior product or service than making the effort to change – think Telecom, Banking, Hotels, Air travel or Insurance as some of the most typical examples of such industries. These businesses are in a constant battle to differentiate themselves and provide a real advantage to attract new customers.
  7. Being too different: Whilst not being sufficiently differentiated can be a certain cause of failure, being too new can also meet with no success. The reason for this is that if customers are totally unfamiliar with the new product or service offering, you will need to spend considerable resources to educate them. If you are unable or not willing to invest the time and money in doing this, then you will undoubtedly fail to attract more than just a few customers who take the time to underst and what you are offering.
  8. Correct pricing is key to NPD successPricing yourself out of the market: Here I’m not just speaking of pricing your product too high; being too low can also negatively impact your likely success. Underst anding how much potential customers value your offer to essential to the success of any product. Getting it wrong can result in lost revenue or worse a promotional spiral leading to br and hell (read more about this in “Are you on the way to br and heaven or hell“)
  9. Inappropriate distribution: This can be the consequence of an incomplete underst anding of your customer and is also linked to differentiation. Whilst you can just follow near competitors into their own distribution channels, why ignore the possibility of being available where and when your customer might buy it most? By reducing the effort necessary to change their habits and buy, you can attract more potential customers to at least try your new product.
  10. Being too far ahead of the customer: There are many examples of great products that were ahead of their time. Gillette brought out 2–in–1 shampoos with conditioners included in the early 70’s, but they were a dramatic flop. Ten years later most personal care manufacturers offered these products, and were met with huge success, even if such products have gone out of fashion somewhat since then. It took Nespresso almost twenty years to become profitable and Philip Morris has needed similar levels of patience for their most infamous of br ands Marlboro, in many markets. If you can’t afford to wait for your customers to catch up with your new product idea, then you should certainly reconsider your launch decision.

These are ten of the most common reasons for new product launch failure. Which do you think is most prevalent in your own company? What are you going to change to increase the success of your own new products? Is it some other reason altogether, that I’ve missed? Let me know and share your thoughts below. 

Coming back to JF, most of our time together was spent discussing ways to collect information on many of the above points. As he has little budget for extensive market research, it was important for him to find other ways of gathering the much needed information and not to just bypass that stage; perhaps many people don’t bother to search out the information they need to truly assess the likely success of their new product, which would explain the high failure rate mentioned above.

By the end of my session with JF, he had a clear plan of action and I have since heard that he is progressing incredibly fast, so watch this space for an announcement concerning the launch of his new device.

I will be sharing the tips I gave him in a future blog post, but in the meantime feel free to continue sending me your own questions; I’m always ready to have a short Skype or phone call to assist you with your own marketing and innovation challenges.

C³Centricity uses images from  DreamstimeKozzi  and Microsoft

Why Global Campaigns often Fail and What You Can Do So Yours Won’t

It’s been a while since we had a guest post so I am happy that this week Angelo Ponzi from C³Centricity partner PhaseOne, based in Los Angeles, has shared one of his most popular articles on taking local communications global.

If you’re a global advertiser or have done research on global advertising, you know it’s not easy to launch a global campaign.

Year after year, many br ands launch global campaigns only to have them fail.  Sometimes it’s the message that doesn’t translate.  Other times, a product name or slogan just doesn’t translate around the globe — or worse, it offends the target audience. Or, perhaps the behavior the br and is trying to influence just isn’t relevant.

What are the pitfalls that must be avoided and what strategies do you need to have in place in order to set the stage for a successful global campaign?

Benefit of a Global Campaign

Unilever Dove logoThere is a strong argument for implementing a creative campaign on a global scale.  When it works, it provides br and stewards with a high level of control.  It also ensures consistent implementation of a br and strategy, and it saves money — a lot of money.  When it works, it can work BIG.  Take for instance Unilever’s global work for their Dove br and and their Beauty campaign. This global work beat the odds, changed the way people think of beauty, and changed the way we as advertisers communicate about beauty.

Regardless of the br and, all br ands — even regional or local ones — need to think globally. Why?  Because a br and’s image or reputation is only one post, tweet, blog, pin or share away from being talked about on a global basis.  Social media has changed the way we market, but more importantly, it has changed the way we need to think.

It’s difficult enough to create relevant communications that include a strategic message, strong theme and a br and story that appeals to the target audience in one market. Creating one that appeals to multiple cultures is extremely difficult. One size fits all does not apply here folks!

Important Considerations:  A Common Voice Spoken in Many Languages

What are some of the important considerations when beginning to think about a global approach?  Certainly, humor or the use of slang when trying to establish a br and across borders does not always work.  For example, humorous TV spots that aired in the UK didn’t make audiences giggle as it traveled across borders to other English and non-English-speaking countries.   Keep in mind, the joke or “shtick” doesn’t always travel well from country to country.  The use of humor may also be impacted by cultural values, etiquette, language and dialects, as well as social economics of the audiences.  Individually, these are all important considerations to be researched when developing campaign strategies and creative executions. Br ands must learn to have a common voice that can be spoken in many languages.

Campaigns need to consider the four elements of the br and

In addition, you should take into consideration your international competition, since they are most likely exploring global and local (“glocal”) approaches as well.  But, while you’re looking in the rearview mirror at your primary competitors, don’t forget to look out in front for those local br ands that are already entrenched and may already be the leaders in the market.  Know where your br and st ands in the market.  Are you a challenger in one market and a leader in another? How you speak to your target audience will be different based on your market position, making it even more difficult to identify a distinctive message that is relevant globally from market to market.

Define your br and’s core personality, including the tone in which you speak to your audiences, and keep it consistent.  Identify a common motivation or need across cultures that speaks to their aspirations, not just your br and’s product benefits. By doing so, the overall culture of the br and remains constant and familiar to the audiences throughout the world.

Key Factors for a Successful Global Campaign

In examining the factors in developing and implementing a successful global campaign, we have found that it becomes clear that there has to be almost precise alignment across five different market factors for success.  If even one of them is off, the campaign and its investment are at risk.

As we explore these five key factors, ask yourself the outlined questions and answer them honestly as you assess the possibility of your global campaign.

#1. Your Br and’s Equity

Does your target audience think about your br and the same way across all markets (i.e., do they have the same associations)?  Do the br and’s values and its personality resonate at the same levels across all markets?  Is awareness high and attitudes strong in one market while they suffer in another?  If so, then there is a high level of certainty that the same advertising will not work in both markets.

#2. Your Br and Market Share / Market Position

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

#3. Competitive Actions

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

#4. Category Penetration / Maturity

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

#5. Target Audience / Cultural

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

To help lay the foundation for global campaign success, a research study that examines your br and in your current and planned markets is essential, as is the same research on your competitors to see how they have succeeded and failed so you can learn from their efforts.  Underst anding where you st and and where you intend to go versus your competitors is essential to creating a successful and lasting global br and strategy.

Get thinking about what’s important in developing a global campaign.  Do your homework.  Invest the time ( and money) to underst and your target audience country by country. 

Before you start ask yourself, “What campaigns have been successful on a global basis?  How did they do it?  And, which ones failed and why?”  Learn from it.   Now go take over the world.

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