Net Gain 6 Presentation: Riding The Change Wave

RIDING THE CHANGE WAVE: ARCHITECTING MARKETRESEARCH FOR THE FUTURE

THE JOURNEY BEGINS…“RESEARCHERS MUST MAKE THE JOURNEY TO BECOMECONSULTANTS. THE JOURNEY REQUIRES A SHIFT IN HOW RESEARCHERS DEFINE THEIR PURPOSE, IN WHAT THEYPROVIDE THEIR CLIENTS, IN HOW THEY DEFINE VALUE, IN HOW THEY WORK, AND IN THEIR ABILITY TO INFLUENCE PEOPLE. THE FUTURE ROLE OF MARKET RESEARCHERS CAN BE BOILED DOWN TO FOUR HEADLINES:1) CONSULT, 2) SYNTHESIZE, 3) TELL A STORY, 4) TAKE A STAND.”From New Roles for Marketing Researchers, S. Chadwick and I. Lewis. LeadingEdge Marketing Research, Sage Publishing. Publishing Date Nov 2011

THE CLIENT HAS SPOKEN“Research has become a game of connecting the dots, thinkinglike a consultant and being able to pull all kinds of disparateinformation together to tell a story that will grow the business.The skills and expertise required for the role today makestaffing for success difficult. There’s enormous pressure toevolve the function into something much more than it washistorically. Social analytics is where we’re moving, and dataanalytics will be the research currency of tomorrow.”Michelle AdamsHead of Shopper InsightsPepsiCo “If you focus on consumer insights, you will develop consumerist strategies, but if you focus on understanding the human condition, then you will understand people’s lives in totality and, therefore, probably have a much better chance of coming up with breakthrough ideas.” Stan Sthanunathan, Vice President, Marketing Strategy & Insights, The Coca-Cola CompanyAll quotes were collected from public sources.

DRIVERS OF CHANGE New competitors: Marketing Agencies, BI Tech, DIY, SM Client Human demands: Capital: ROI, IntegratiChanging skill on, Implicatio sets ns & Outcomes Market Research Suppliers Consumers: Economics: Engagement,Cheaper, Fast Socialization, er, Better Fun, Rewards Technology: SM, Mobile, C onverged Lifestyle

ONLINE PARADIGM SHIFTS TO MOBILE

THE MOBILE DRIVEN DATA ECONOMY

AN INDUSTRY IN TRANSITION • Data ponds • Methodological rigor Traditional • Objective Reporting Business • Low touch Model for • Production models • Slow to adapt to technology MR • Process vs. People • Market focus • Data Rivers • Methodologically curious • Narratives & Implications Transition • High touch Model • Deep partnerships • Embracing technology • People vs. Process • Regional focus • Data Oceans • Methodologically agnostic • Narratives, Implications & Outcomes Future • High touch Model • Integration with client orgs • Leading technology • People-driven • Glocal focus

DON’T TAKE MY WORD ON IT Almost 60% of Client Research VPs expect major transformation by 2020* 70% of whom expect this to be evident by 2015Source: Cambiar Future of Research Study, 2011 *38% among total respondents (N=160)

SURVEY SAYS!

THE GREENBOOK RESEARCH INDUSTRY TRENDS STUDY Summer Fall ’11 Fall’10 Spring’10 2009 2008 2007 2006 2005 2004 2003 2011Base: (818) (1008) (673) (875) (512) (284) (366) (600) (336) (720) (431)Full-service 50% 43% 41% 48% 43% 46% 43% 43% 50% 44% 36%providersResearch 18% 23% 26% 21% 26% 24% 21% 15% 13% 12% 14%consultancyAcademic/non- 1% 3% 14% 2% 4% 4% 7% 7% 7% 7% 18%profit/medicalData Collection 12% 9% 10% 10% 14% 13% 15% 20% 18% 5% 6%(Quant/Qual)Research 15% 16% 6% 17% 11% 10% 11% 12% 9% 18% 22%client/buyerAdvertising 3% 3% 3% 3% 4% 3% 3% 3% 4% 4% 5%agency

IS IT REALLY CHANGE WE CAN BELIEVE IN? Research buyer or client Research provider or supplier Im excited for my future and cant wait. 20% 16% I see much more opportunity than threat 34% 23% I see more opportunity than threat 38% 27% I see equal measures of threat and 7% opportunity 27% I see more threat than opportunity 1% 3% I see these changes as much more threat 0% than opportunity 3% These things threaten our industry and my 0% job. 1% 0% 10% 20% 30% 40%Research buyer or client Research provider or supplier Note: Among research buyers (n=95) and research suppliers (n=470). Tremendous 3% 6% A lot 30% 32% Quite a bit 31% 32% Some 32% 26% Very little 4% 4% 0% 10% 20% 30% 40% Note: Among research buyers (n=149) and research suppliers (n=669).

PERCEIVED THREATS & OPPORTUNITIES Companies doing Research their own becoming a low research/in house cost research/DIY commodity/more surveys focus on low cost possibilities Innovative/new methodologies Lack of Customerbudget/limited Online techniques centered solutions funding/cost replacing humans cutting Social media monitoring/minin More data to Mobile research Lack of skills to analyze applications g social media compete comments effectively instead of actual research More focus on faster research Measuring real Social media alternatives/appr responses research oaches Neuromarketing

IMPORTANCE OF FACTORS IN SELECTING SUPPLIERS Quantitative Research Qualitative Research Listens well and understands client needs 93% 92% Good relationship with client/supplier 92% 90% Completes research in an agreed-upon time 90% 89% Has knowledgeable staff 90% 86% Familiarity with client needs 89% 90% Previous experience with client/supplier 88% 86% Rapid response to requests 88% 87% Familiarity with the industry or category 82% 85% Good reputation in the industry 81% 82% High quality analysis 81% 81% Flexibility on changing project parameters 78% 84% Provides highest data quality 77% 76% Breadth of experience in the target segment 75% 81% Consultation on best practices and methodology… 68% 68% Provides data analysis services 66% 48% Length of experience/time in business 62% 69%Understands new consumer communication channels &… 52% 53% Lowest price 50% 42% Offers unique methodology or approach 49% 51% Uses sophisticated collectionresearch… 48% 34% Company is financially stable 45% 41% Uses the latest data collection technology 41% 32% Also does qualitative/quantitative research 32% 33% Uses the latest statistical/analytical packages 31% 19% Company owns its own research panel 20% 17% 0% 100% 0% 100% Note: Among Quantitative Research (n=726) and Qualitative Supplier research suppliers (n=700).

DEMAND FOR A NEW BUSINESS MODEL“Market research is in transition. Clients want more meaningful insights to create new growth opportunities.”

MR FIRMS ARE ALREADY SHIFTING Research Providers/ Suppliers 25%39% Traditional Business Consultant Strategic Insights 35% Note: Among research suppliers (n=268).

THE BIGGEST GROWTH AREAS IN MARKET RESEARCH

CHARACTERISTICS OF THE METHODOLOGICAL SHIFT Industry Transition From To Questioning Discussing Asking Observing Data (collection) Insight (analysis) Insight Foresight “The Big Survey” “Data Streams” Rational Emotional Geographically Fixed Mobile Quarterly Trackers MROCs Explore-Create-Test-Launch Co-create Siloed Converged

WHAT EMERGING TECHNIQUES ARE BEING USED TODAY? Online Communities 36% 33% Social Media Analytics 30% 27% Eye Tracking 27% 15% Mobile Surveys 17% 24% Text Analytics 16% 21% 12% Webcam-Based Interviews 19% Virtual Environments 11% 7% 11% NeuroMarketing 4% Visualization Analytics 7% 8% Prediction Markets 7% 10% Mobile Ethnography 7% 14% 7% Crowdsourcing 8% Apps based research 6% 11% Mobile Qualitative 5% 13% 5% Biometric Response 5% Research buyer or client Facial analysis 4% 6% Research provider or supplier Gamification methods 3% 6% None of these 28% 31% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: Among research buyers (n=149) and research suppliers (n=669).

WHAT EMERGING RESEARCH TECHNIQUES WILL BE USED IN 2012? Online Communities 66% 64% Social Media Analytics 66% 59% Mobile Surveys 53% 64% 43% Text Analytics 45% Webcam-Based Interviews 35% 46% 32% Apps based research 40% 31% Mobile Qualitative 46% 31% Mobile Ethnography 43% 31% Eye Tracking 21% Virtual Environments 23% 22% Crowdsourcing 19% 24% Visualization Analytics 17% 24% 16% Prediction Markets 21% 13% Biometric Response 10% Research buyer or client 11% Gamification methods 25% Research provider or supplier 11% NeuroMarketing 11% 9% Facial analysis 13% 0% 10% 20% 30% 40% 50% 60% 70% Note: Among research buyers (n=149) and research suppliers (n=669).

THE RESEARCHER OF THE FUTURE: RECRUITING FOR FUTURE GROWTH

Client researchers and suppliers have developed as project managers, becomingmore proficient at managing projects as theircareers developed. The river concept offers aparadigm shift in which researchers will need to become synthesizers. This will require substantial training, rewriting of jobdescriptions, and reevaluating hiring criteria.The Shape of Marketing Research in 2021JAR March 2011Micu, Dedeker, Lewis, Moran, Netzer, Plummer and Rubinson

EMERGING RESEARCH MANAGER ROLE Role: to leverage a wide range of information sources in order to drive business impact What are the emerging What are the emerging responsibilities? success factors? • Understand specific business • Business knowledge needs of client and other business functions • Consulting skills • Mine information sources • Understanding of wide range of information sources • Supplement information sources with research studies • Ability to synthesize from a if needed wide range of information sources • Synthesize information, identify insights and recommend • Storytelling skills actions • Communicate and follow-up to create business impactFrom New Roles for Marketing Researchers, S. Chadwick and I. Lewis. Leading Edge Marketing Research, Sage Publishing.Publishing Date Nov 2011

NEW SKILLS FOR A NEW ERA FUTURIST JOURNALISTANTHROPOLOGIST CONSULTANT STRATEGIST ANALYST

WHAT ARE THE SKILLS FOR SUCCESS? The Researcher The Researcher of Today of the Future

CONSULTING AND STORYTELLING ARE TOP TRAINING NEEDS % Rate as Top 3 Training Need Among 9 Needs plus “other” Consulting skills 63 71% large depts. Storytelling and other impactful 62% VP+, 54 61% large dept. presentation skills Influencing skills 40 49% large dept. Synthesis of info from multiple 38 sources Developing rich insights 36 54% AnalystInnovative research methodologies 31 53% < 5 yrs in MR Source: Cambiar Future of Research Study, 2011

THE TYPES OF ROLES GRIT RESPONDENTS EXPECT TO HIRE Total Client Suppliers GapBase: (1008) (209) (799) +/- % % %More social media experts 53% 53% 54% -1%More marketing strategists 46% 54% 43% 9%More data integration experts 40% 45% 38% 7%More experts in the mechanics and 39% 28% 42% -14%technologies of data collectionMore business strategists 32% 41% 30% 11%More bilingual (or poly-lingual) employees 30% 21% 32% -9%More sociologists or anthropologists 23% 14% 25% -11%More process (i.e., supply chain) strategists 10% 10% 11% -1%More field interviewers 7% 4% 8% -4%Other 11% 9% 12% -3%None of these/ No new skills 8% 7% 8% -1%

THE RESEARCHERS OF THE FUTURE WILL BE:

ARCHITECTING THE MARKETRESEARCH FIRM OF THE FUTURE

BASELINE FORECAST FOR MARKET RESEARCHTelephone & web-based survey research declines dramatically.Surveys become much shorter.Target demographic panels become highly valued as participation rates drop.Listening, as defined by real-time social media monitoring and MROCs, flourishes.Research becomes more mobile, geography and time focused.As more is discovered about our emotion-based decisions, the industry begins to focus more onemotional measurement (projective techniques, eye tracking, facial scanning, neuromarketing).Overwhelmed by data, but lacking insights, corporations turn to data-insights consultants thatanalyze multiple data streams within a corporation. IBM is clearly headed in this direction, as aresome management consulting firms.The “data-driven insights industry” booms, but large, traditional, market research firms struggle tokeep up. New entrants overwhelm and redefine the field.The “data-driven insights industry” undergoes a merger between traditional MR, managementconsulting research, social media listening, CRM, shopper trends, neuroscience, predictive analyticsand strategic foresight.

WHERE DOES TRANSFORMATION BEGIN?“Strategic differentiation does not occur bydelivering data, it occursby redesigning thinking”

THE 4 AREAS WE MUST RETHINK1. Client Needs & Expectations 4. Process2. People Skills and Capabilities 3. Technology Enablers

CREATING A NEW VISIONBuilding a holistic model that is based on leveraging key values and strengths in new ways to lead the future Data Synthesis Strategic Measurable Insight Client ROI Consulting Delivering Innovative Impact Approaches Curious & Leading-edge Creative Technology

GRIT 50: THE MR FIRMS OF THE FUTURE 2010 2010 2011 2010 20102011 Rank Company Votes Votes Rank Difference Rank Company Votes Votes Rank Difference 1 BrainJuicer 204 60 1 0 26 Maritz 12 11 15 (11) 2 Ipsos 110 25 5 3 27 Qualtrics 12 0 0 58 3 Vision Critical 88 32 3 0 28 Insight Consulting Services 10 0 0 57 4 Kantar Operations/TNS 84 32 2 (2) 29 SSI 10 0 0 56 5 Nielsen 77 25 6 1 30 Conversition 10 0 0 55 6 GfK 64 17 7 1 31 Decipher 10 0 0 54 7 Synovate 59 31 4 (3) 32 FreshMinds 9 0 0 53 8 itracks 47 18 8 0 33 Burke 9 7 28 (5) 9 20/20 Research 38 15 9 0 34 comScore 9 0 0 51 10 Millward Brown 29 14 11 1 35 Sawtooth 9 0 0 50 11 InSites 26 5 38 27 36 GMI 8 0 0 49 Lieberman Research 12 Affinnova 26 9 21 9 37 Worldwide 8 4 40 3 13 Anderson Analytics 22 21 7 (6) 38 Firefish 8 0 0 47 14 Qualvu 21 11 16 2 39 Flamingo 8 0 0 46 15 MarketTools 20 7 27 12 40 Forrester 8 6 32 (8) 16 Communispace 20 15 11 (5) 41 MESH Planning 8 0 0 44 17 Toluna 19 10 20 3 42 BuzzBack 7 4 45 3 18 Revelation 18 10 19 1 43 Join the Dots 7 0 0 42 Research Through 19 Harris Interactive 17 0 0 66 44 Gaming 7 0 0 41 20 NeuroFocus 16 8 22 2 45 Truth 7 5 39 (6) 21 Research Now 16 8 24 3 46 Gallup 7 6 30 (16) 22 Hall & Partners 14 6 31 9 47 SymphonyIRI 6 0 0 38 23 e-Rewards 14 6 33 10 48 EmSense 6 6 29 (19) 24 Hotspex 12 0 0 61 49 Schlesinger 6 0 0 36 25 uSamp 12 4 49 24 50 McKinsey 6 0 0 35

THE FUTURE IS UP TO YOU; WHICH WAY WILLYOU GO NOW?

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Net Gain 6 Presentation: Riding The Change Wave

by Lenny Murphy on Jan 31, 2012

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Net Gain 6 Presentation: Riding The Change Wave — Presentation Transcript