connecting market research to business growth
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Connecting Market Research to Business Growth
Follow us on Twitter:
@billalberti
@communispace
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Agenda
• The ultimate value proposition
• The problem with market research today
• The hidden value of its past
• 5 steps to demonstrate value tomorrow
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An infinite value proposition
THE BETTER YOU UNDERSTAND CUSTOMERS
THE BETTER YOU CAN SERVE THEM
THE BETTER YOU’LL PERFORM
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UNDERSTANDING =
PERFORMANCE
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MARKET RESEARCH IS NOT DELIVERING ON THIS PROPOSITION
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Market Research as order takers
• Little access to senior executives
• Emphasis on tactical research
• Little involvement outside marketing
“The Consumer’s Voice – Can Your Company Hear It?” BCG Report, Center for Consumer Insight Benchmarking 2009
• Stronger consumer focus mandated by senior executives
• Strategic rather than tactical emphasis
• Some influence beyond marketing
• Focus on insight into individual behavior
• Stronger consumer focus on the part of senior executives
• Significant influence beyond marketing
• Growing knowledge base
• Focus on synthesized insights across data sources
and studies
• Strategic consumer research a C-suite priority
• Extensive involvement across functions
• Able to build knowledge base to become a learning organization
• Focus on both insight and foresight across data sources
and studies
Traditional Market Research Function
Business Contribution Team
Strategic Insight Organization
Strategic Foresight Organization
Market Research as an order-taking function Consumer insight as a
source of competitive advantage
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4ALMOST 90% OF COMPANIES ARE IN STAGES 1 AND 2
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MR investment is significant yet marginalized
~GDP of Lebanon
$1 $14vs.
MARKET RESEARCH
ADVERTISING
ESOMAR, International Monetary Fund, Group M, Communispace
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Tactical vs. Strategic support
80% of funding
Exploration CollaborationEvaluation and testing
BCG, ARF, Communispace
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An industry talking to itself
(842 entries in ESOMAR’s Market Research Glossary)
ESOMAR, Communispace, Wordle
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THE BUSINESS OPPORTUNITY OF UNDERSTANDING CUSTOMERS
MISSING
BETTER
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The roots of market research
CHARLES COOLIDGE PARLIN (1872-1942)
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The roots of market research
“he sought not to understand business, society, or the human condition as a means of intellectual exercise and a higher order of learning, but rather to help businesses to improve their profit margins.”
~ A New Brand of Business
“A New Brand of Business” Douglas Ward, Temple University, 2010
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“CONFIDENT PROMISE
OF STEADY PROFITS
THROUGH UNDERSTANDING
CONSUMER THINKING”
“A New Brand of Business” Douglas Ward, Temple University, 2010
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Circulation Ad revenue
63%
664%
Curtis Publishing Company Results 1911 - 1926
“A New Brand of Business” Douglas Ward, Temple University, 2010
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Legacy lives on in methodologies, not the impact
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Market research has become WAY too complicated
Market research God Parenting Diet Advertising
182,881 168,862
57,270 55,801 49,715
# of book results on Amazon.com
Amazon.com, Communispace, 7/15/2010
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Recreate the simplicity
THE BETTER YOU UNDERSTAND CUSTOMERS
THE BETTER YOU CAN SERVE THEM
THE BETTER YOU’LL PERFORM
UNDERSTANDING = PERFORMANCE
Insight IMPACT
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5 steps
1. Elevate the proposition
2. Align with the business
3. Design for impact
4. Connect to the fundamentals
5. Share
Step 1ELEVATE THE PROPOSITION
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THE BETTER YOU UNDERSTAND CUSTOMERS
THE BETTER YOU CAN SERVE THEM
THE BETTER YOU’LL PERFORM
UNDERSTANDING = PERFORMANCE
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ANSWERING QUESTIONS VS.
SOLVING PROBLEMS
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SOLVING PROBLEMS
CUSTOMERS
COMPANY
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Answering “so what?”
Our consumer insight team consistently answers the
question “so what?” about the data they provide
Insight team Business line
73%
34%
-39 pts
% strongly agree / agree
“The Consumer’s Voice – Can Your Company Hear It?” BCG Report, Center for Consumer Insight Benchmarking 2009
Step 2ALIGN WITH THE BUSINESS
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ALIGNING THE BUSINESS,
THE CUSTOMER AND THE RESEARCH
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Listening made actionable to drive growth
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Listening is a balance
Rational
About their lives
Emotional
About your brand*
Feedback
Discovery
*and competitors
Step 3DESIGN FOR IMPACT
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Tracking Impact
• Impact is as much about the input as the output
• Creating impact is a partnership and shared responsibility between research/insight group and the business
Business objective
Activities
INPUT OUTPUTInsights
Actions
IMPACT
Step 4CONNECT TO THE FUNDAMENTALS
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UNDERSTANDING = PERFORMANCE
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Understanding = Performance
Working with customers to:
Increase adoption
Decrease time to market
ONE
TWO
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A customer makes a decision…
Let’s say she has a 25% chance of choosing Moxup…
25% 75%
Competition
Ultimately it’s about
“increasing the odds” of her choosing us
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$
Traditionally, marketing would amp up the spend
Dial up the marketing investment to try to gain a greater share of mind and wallet
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Work with her, for her
Instead, what if we partnered with her to understand her better?
Co-createFeedback
Ideas
Insight
Behaviors
Aspirations
Dreams
Needs
Pain-points
Challenges
Opportunities
Trends
Thoughts
Feelings
Desires
Hopes
Decisions
Motivations
Influences
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Solving problems together
A small community working together with Moxup for the good of the greater customer
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A customer makes a decision for Moxup…
Ultimately to affect the choice of that one customer…over and over
25.03%25.02%25.01%
25%
75%74.09%
74.08%74.07%
Competition Increasing Adoption = Increasing Revenue
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Understanding = Performance
Working with customers to:
Increase adoption
Decrease time to market
ONE
TWO
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Explore
Ideate
Prototype
Make, market and sell
Typical development cycle
From concepting to marketing, a time intensive process
365 days
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Continuous customer involvement
Decrease time-to-market by involving customers along the way
Explore
Ideate
Prototype
Make, market and sell
365…4…3…2 days
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Time equals money
By decreasing time, we are shortening the cycle and taking out costs
Explore
Ideate
Prototype
Make, market and sell
365…4…3…2 daysDecrease
time = Decrease expense
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Understanding = Performance
Working with customers to:
Increase adoption
Decrease time to market
IMPACT PROFIT
ONE
TWO
THREE
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Small advances, big impact
Revenue Expenses Profit+ =
Increaseadoption
Decrease time-to-market
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Modeling scenarios
Inc
rea
se
ad
op
tion
Decrease time to market (days)
% profit increases
1 2 3 4 5 6 7 8 9 10
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
1.00%
0.10%0.20%0.30%0.40%0.50%0.60%0.70%Pro
fitab
le im
pact
Step 5SHARE
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Impact Stories
• 5 components to the story: Business Objective, Activities, Insights, Actions, Impact
Business objective
Activities
INPUT OUTPUTInsights
Actions
IMPACT
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Sharing Impact Stories
• Make the stories memorable
• Bring customers and their insights to life
• Create an internal marketing strategy…and execute it
• Share up, down and across – build buzz
Examples of customer inspiration
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CUSTOMER PULSE CUSTOMER LEARNING CUSTOMER VOICE
Snapshot email
RapidFire report
Frontpage report
Insights report
Summary books
Video
Live presentation & events
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Examples of our own research at communispace.com
Insight IMPACT
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5 steps
Elevate the proposition
Align with the business
Design for impact
Connect to the fundamentals
Share
Understanding = Performance
Feedback + Discovery
Input > Output > Impact
Performance = Profit
Impact Stories
ONE
TWO
THREE
FOUR
FIVE