Connecting Market Research to Business Growth

3,429 views
3,446 views

Published on

Published in: Business

Connecting Market Research to Business Growth

  1. 1. Connecting Market Research to Business Growth<br />Follow us on Twitter:<br />@billalberti<br />@communispace<br />
  2. 2. Agenda<br />The ultimate value proposition<br />The problem with market research today<br />The hidden value of its past<br />5 steps to demonstrate value tomorrow<br />2<br />
  3. 3. An infinite value proposition<br />THE BETTER YOU UNDERSTAND CUSTOMERS<br />THE BETTER YOU CAN SERVE THEM<br />THE BETTER YOU’LL PERFORM<br />3<br />
  4. 4. UNDERSTANDING = <br />PERFORMANCE<br />4<br />
  5. 5. MARKET RESEARCH IS NOT DELIVERING ON THIS PROPOSITION <br />5<br />
  6. 6. ALMOST90%OF COMPANIES ARE IN STAGES 1 AND 2<br />4<br />3<br />Strategic Foresight Organization<br />2<br />Market Research as order takers<br />Strategic Insight Organization<br /><ul><li>Strategic consumer research a C-suite priority
  7. 7. Extensive involvement across functions
  8. 8. Able to build knowledge base to become a learning organization
  9. 9. Focus on both insight and foresight across data sources and studies</li></ul>Business Contribution Team<br /><ul><li>Stronger consumer focus on the part of senior executives
  10. 10. Significant influence beyond marketing
  11. 11. Growing knowledge base
  12. 12. Focus on synthesized insights across data sources and studies</li></ul>1<br /><ul><li>Stronger consumer focus mandated by senior executives
  13. 13. Strategic rather than tactical emphasis
  14. 14. Some influence beyond marketing
  15. 15. Focus on insight into individual behavior</li></ul>Traditional Market Research Function<br />Little access to senior executives<br />Emphasis on tactical research<br />Little involvement outside marketing<br />Market Research as an order-taking function<br />Consumer insight as a source of competitive advantage<br />“The Consumer’s Voice – Can Your Company Hear It?” BCG Report, Center for Consumer Insight Benchmarking 2009<br />6<br />
  16. 16. MR investment is significant yet marginalized<br />~GDP of Lebanon<br />MARKET RESEARCH<br />ADVERTISING<br />$14<br />vs.<br />$1<br />ESOMAR, International Monetary Fund, Group M, Communispace<br />7<br />
  17. 17. Tactical vs. Strategic support<br />80% of funding<br />Exploration<br />Collaboration<br />Evaluation and testing<br />BCG, ARF, Communispace<br />8<br />
  18. 18. An industry talking to itself<br />(842 entries in ESOMAR’s Market Research Glossary)<br />ESOMAR, Communispace, Wordle<br />9<br />
  19. 19. MISSING <br />THE BUSINESS OPPORTUNITY OF UNDERSTANDING CUSTOMERS<br />BETTER<br />10<br />
  20. 20. The roots of market research<br />CHARLES COOLIDGE PARLIN (1872-1942)<br />11<br />
  21. 21. The roots of market research<br />“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.”<br />~ A New Brand of Business<br />“A New Brand of Business” Douglas Ward, Temple University, 2010<br />12<br />
  22. 22. “CONFIDENT PROMISE OF STEADY PROFITSTHROUGH UNDERSTANDING CONSUMER THINKING”<br />“A New Brand of Business” Douglas Ward, Temple University, 2010<br />13<br />
  23. 23. Curtis Publishing Company Results 1911 - 1926<br />“A New Brand of Business” Douglas Ward, Temple University, 2010<br />14<br />
  24. 24. Legacy lives on in methodologies, not the impact<br />15<br />
  25. 25. Market research has become WAY too complicated<br /># of book results on Amazon.com<br />Amazon.com, Communispace, 7/15/2010<br />16<br />
  26. 26. Recreate the simplicity<br />THE BETTER YOU UNDERSTAND CUSTOMERS<br />THE BETTER YOU CAN SERVE THEM<br />THE BETTER YOU’LL PERFORM<br />UNDERSTANDING = PERFORMANCE<br />17<br />
  27. 27. IMPACT<br />Insight<br />
  28. 28. 5 steps<br />Elevate the proposition<br />Align with the business<br />Design for impact<br />Connect to the fundamentals<br />Share<br />19<br />
  29. 29. Step 1ELEVATE THE PROPOSITION<br />
  30. 30. THE BETTER YOU UNDERSTAND CUSTOMERS<br />THE BETTER YOU CAN SERVE THEM<br />THE BETTER YOU’LL PERFORM<br />UNDERSTANDING = PERFORMANCE<br />21<br />
  31. 31. ANSWERING QUESTIONS VS. SOLVING PROBLEMS<br />22<br />
  32. 32. CUSTOMERS<br />SOLVING PROBLEMS<br />COMPANY<br />23<br />
  33. 33. Answering “so what?”<br />% strongly agree / agree<br />-39 pts<br />Our consumer insight team consistently answers the question “so what?” about the data they provide<br />“The Consumer’s Voice – Can Your Company Hear It?” BCG Report, Center for Consumer Insight Benchmarking 2009<br />24<br />
  34. 34. Step 2ALIGN WITH THE BUSINESS<br />
  35. 35. ALIGNING THE BUSINESS, THE CUSTOMER ANDTHE RESEARCH<br />26<br />
  36. 36. Listening made actionable to drive growth<br />27<br />
  37. 37. Listening is a balance<br />About their lives<br />Discovery<br />Rational<br />Emotional<br />Feedback<br />About your brand*<br />*and competitors<br />28<br />
  38. 38. Step 3DESIGN FOR IMPACT<br />
  39. 39. Tracking Impact<br />Impact is as much about the input as the output<br />Creating impact is a partnership and shared responsibility between research/insight group and the business<br />Activities<br />INPUT<br />OUTPUT<br />Business objective<br />Insights<br />IMPACT<br />Actions<br />30<br />
  40. 40. Step 4CONNECT TO THE FUNDAMENTALS<br />
  41. 41. UNDERSTANDING = PERFORMANCE<br />32<br />
  42. 42. Understanding =Performance<br />Working with customers to:<br />Increase adoption<br />Decrease time to market<br />ONE<br />TWO<br />33<br />
  43. 43. A customer makes a decision…<br />Let’s say she has a 25% chance of choosing Moxup…<br />Ultimately it’s about “increasing the odds” of her choosing us<br />25%<br />75%<br />Competition<br />34<br />
  44. 44. $<br />Traditionally, marketing would amp up the spend<br />Dial up the marketing investment to try to gain a greater share of mind and wallet<br />35<br />
  45. 45. Work with her, for her<br />Instead, what if we partnered with her to understand her better?<br />Motivations<br />Pain-points<br />Co-create<br />Feedback<br />Opportunities<br />Aspirations<br />Hopes<br />Feelings<br />Dreams<br />Ideas<br />Behaviors<br />Thoughts<br />Insight<br />Desires<br />Needs<br />Challenges<br />Trends<br />Decisions<br />Influences<br />36<br />
  46. 46. Solving problems together<br />A small community working together with Moxup for the good of the greater customer <br />37<br />
  47. 47. A customer makes a decision for Moxup…<br />Ultimately to affect the choice of that one customer…over and over<br />25.03%25.02%25.01%25%<br />Competition<br />Increasing Adoption = Increasing Revenue<br />75%74.09% 74.08%74.07%<br />38<br />
  48. 48. Understanding = Performance<br />Working with customers to:<br />Increase adoption<br />Decrease time to market<br />ONE<br />TWO<br />39<br />
  49. 49. Typical development cycle<br />From concepting to marketing, a time intensive process <br />365 days<br />Explore<br />Ideate<br />Prototype<br />Make, market and sell<br />40<br />
  50. 50. Continuous customer involvement<br />Decrease time-to-market by involving customers along the way<br />365…4…3…2 days<br />Explore<br />Ideate<br />Prototype<br />Make, market and sell<br />41<br />
  51. 51. Time equals money<br />By decreasing time, we are shortening the cycle and taking out costs<br />365…4…3…2 days<br />Decrease time = Decrease expense<br />Explore<br />Ideate<br />Prototype<br />Make, market and sell<br />42<br />
  52. 52. Understanding = Performance<br />Working with customers to:<br />Increase adoption<br />Decrease time to market<br />IMPACT PROFIT<br />ONE<br />TWO<br />THREE<br />43<br />
  53. 53. Small advances, big impact<br />Increaseadoption<br />Decrease time-to-market<br />+<br />=<br />Revenue<br />Profit<br />Expenses<br />44<br />
  54. 54. Modeling scenarios<br />% profit increases <br />Profitable impact <br />Increase adoption <br />Decrease time to market (days) <br />45<br />
  55. 55. Step 5SHARE<br />
  56. 56. Impact Stories<br />5 components to the story: Business Objective, Activities, Insights, Actions, Impact<br />Activities<br />INPUT<br />OUTPUT<br />Business objective<br />Insights<br />IMPACT<br />Actions<br />47<br />
  57. 57. Sharing Impact Stories<br />Make the stories memorable<br />Bring customers and their insights to life<br />Create an internal marketing strategy…and execute it<br />Share up, down and across – build buzz<br />48<br />
  58. 58. Examples of customer inspiration<br />49<br />CUSTOMER PULSE<br />CUSTOMER LEARNING<br />CUSTOMER VOICE<br />RapidFire report<br />Summary books<br />Snapshot email<br />Video<br />Frontpage report<br />Insights report<br />Live presentation & events<br />
  59. 59. Examples of our own research at communispace.com<br />50<br />
  60. 60. IMPACT<br />Insight<br />
  61. 61. 5 steps<br />Elevate the proposition<br />Align with the business<br />Design for impact<br />Connect to the fundamentals<br />Share<br />Understanding =Performance<br />Feedback+Discovery<br />Input >Output >Impact<br />Performance =Profit<br />Impact Stories<br />ONE<br />TWO<br />THREE<br />FOUR<br />FIVE<br />52<br />

×