The future of consumer insights


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  • Joel,
    Good to see that there is this industry initiative to set the blueprint for the industry in the new 10 years, especially the role of research to be more future looking and thought leading instead of looking at what happening now. However, as a research leader working inhouse, it is also important to consider the metrics and the manner in which the outputs of such direction should be measured, in order for such direction to take up by inhouse MR depts as they justify their value in the organisation. Putting it more simply, there is a need to address the question - How to assess the performance of MR depts inhouse in a measurable way? Like to have your views on this topic.

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The future of consumer insights

  1. 1. Prepared by: <br />Joel Rubinson, President Rubinson Partners, Inc. <br />“Marketing and research consulting for a brave new world”<br />E-mail:<br /><br />Oct 15, 2010<br />The Future of Consumer Insights<br />
  2. 2. My role here today<br />President of Rubinson Partners, Inc.<br />Retained as ARF executive to continue to drive Research Transformation and Shopper Insights<br />Former Chief Research Officer at the ARF<br />2<br />
  3. 3. Research Transformation Journey<br />New blueprint<br />
  4. 4. On July 15th 2008, we began a journey<br />13 industry leaders spent a day at the ARF to discuss “listening”<br />Advertisers: Procter, Unilever, General Mills<br />Providers: Nielsen, TNS, Motivequest, Keller-Fay<br />Media: ESPN, Razorfish, Digitas<br />Within 45 minutes, the topic shifted:<br />“Research has lost its ability to see the big picture; to hearthe unexpected”<br />“Surveys are torture for respondents”<br />“Research needs to inspire; storytelling is key”<br />“Research used to be discrete events, now there’s a continuous<br />Flow of insights that we can tap into”<br />4<br />
  5. 5. Bell Curve of Product Research Spending<br /> 80%<br />of<br />Funding<br />Reallocate $$$<br />$$$ Reallocate<br />EVALUATION<br />&<br />TESTING<br />CONSUMER<br />FEEDBACK<br />INNOVATION<br />“Eighty percent of our funding goes into the evaluating and testing area in the middle of the curve and I know that at least 40% is wasted. I would like to see this money redistributed to the front end of the curve, in innovation, and at the end of the curve, responding to consumer feedback.” - Kim Dedeker, P & G<br />
  6. 6. The current landscape<br />85% of research leaders indicated they are either “neutral” or “dissatisfied” with the impact of marketing research in their company.<br />P1-Q5a. How satisfied are you with the impact of marketing research throughout your company? 1 to 5 rating scale (1=very dissatisfied)<br />
  7. 7. 7<br />Non-believers<br />60%<br />50%<br />40%<br />30%<br />20%<br />10%<br />0%<br />C-Suite<br />Marketing<br />Sales<br />Region<br />Finance<br />Heads<br />Research Has High Level Champions…<br />60 % of those surveyed had C-Suite level advocates for research.<br />…But “Skeptics” Throughout<br />“Skeptics, those who either avoid using research or use it in a discretionary fashion come from all over the organization:<br /><ul><li>Creative
  8. 8. Sales
  9. 9. Unit/Product Heads
  10. 10. Brand Managers
  11. 11. Channel Managers
  12. 12. Design & Development
  13. 13. CFO
  14. 14. Company President
  15. 15. Events Marketing
  16. 16. International Management
  17. 17. Marketing
  18. 18. Operations</li></ul>P1-Q2a. Who are the most important champions of the marketing research department in your organization? <br />P1-Q2b. Conversely, who are least inclined to use research even when they should? What do they do or who do they turn to instead? <br />
  19. 19. Revisualizing research.<br />A brand is a belief system, reinforced by a system of behaviors. <br />
  20. 20. Research must move from point A to point B<br />Marketing Research Today<br />Marketing Research Tomorrow<br /><ul><li>Visionary leadership
  21. 21. Courage to take a stand
  22. 22. Driving strategy
  23. 23. Demonstrated business impact
  24. 24. Answers research questions with technical proficiency
  25. 25. Sometimes discretionary
  26. 26. Inconsistent impact on strategy</li></li></ul><li>Are we at a “Strategic Inflection Point”, triggering a massive shift in strategy?<br />Strategic Inflection Points represent…what happens to a business when a major change takes place in its competitive environment…due to introduction of new technologies…different regulatory environment…simply a change in the customers' values…what is key is that they require a fundamental change in business strategy. Nothing less is sufficient.<br />Some key warning signs that hint that the change you are dealing with make a Strategic Inflection Point is when it is clear to you that all of a sudden the company or the entity that you worry about has shifted.<br />Academy of Management, Annual Meeting<br />Andrew S. GroveChairman of the Board, Intel CorporationSan Diego, Calif.August 9, 1998 <br />
  27. 27. Why now?<br /><ul><li>Marketing concepts forever changed which changes all of the questions
  28. 28. Role of emotion and low attention processing
  29. 29. Heuristics for simple decision-making
  30. 30. People as social creatures
  31. 31. Social media
  32. 32. Biometrics
  33. 33. Massive behavioral datasets</li></li></ul><li>Competing voices for consumer insights…<br />Listening to blogosphere<br />Digital, shopper analytics<br />Also:<br /><ul><li>Customer care
  34. 34. Retail
  35. 35. Own instincts</li></ul>Planners, consultants<br />
  36. 36. 13<br />Lose relevance, lose leadership<br />
  37. 37. video<br />14<br />
  38. 38. Research transformation leadership<br />Susan Wagner<br />VP Global Strategic Insights, <br />Johnson & Johnson Group of Consumer Co<br />Donna Goldfarb<br />VP Consumer and Marketing Insights, Americas, Unilever <br />
  39. 39. The ARF Research Transformation Super-Council: Leaders<br />The following research and insights leaders have committed to leading the creation of the research transformation blueprint via the ARF:<br />Co-Chairs:<br />Donna Goldfarb (Unilever), Susan Wagner (Johnson & Johnson), Joel Rubinson (ARF)<br />Decision-making processes/metrics:<br />Gayle Fuguitt (General Mills)<br />John Forsyth (McKinsey)<br />Jim Thompson (IPSOS)<br /> <br />Consumer-led strategies:<br />Gloria Cox (The Cambridge Group)<br />Jennifer Nelson (Johnson & Johnson)<br />Todd Cunningham (MTV Networks)<br />Walker Smith (The Futures Group)<br /> <br />Engagement and talent:<br />Amelia Strobel (Kraft)<br />Ian Lewis (Cambiar)<br />Kim Dedeker (Kantar)<br />Richard Thorogood (Colgate-Palmolive)<br /> <br />16<br />
  40. 40. Future Forecast: Trends That Will Impact Marketing<br />2020 Vision: Trends that will Impact Marketing<br />Technology/digitalization<br />Privacy <br />Changing economic power balance (driven by ascent of China followed by India) <br />More connected, more empowered consumers<br />"Media makeover" - includes media brands becoming multimedia brands, 360 media planning & measurement, geosynchronous targeting<br />Glocalization<br />The challenges for developed markets<br />Aging populations, Healthcare, Pensions, Government Budget Crises<br />The multicultural world<br />Sustainability<br />
  41. 41. Technology/Digitalization<br />Technology/Digitalization<br />The future<br />Digitalization: Integration of digital technologies into everyday life by the digitization of everything that can be digitized. <br /><ul><li>Clouds
  42. 42. Mobile
  43. 43. Social
  44. 44. Real time information and marketing fuse together</li></li></ul><li>A digital river of information<br /><ul><li>fed by numerous tributaries
  45. 45. Reflecting changing societal values, lifestyle trends, and brand engagement
  46. 46. Mostly naturally occurring, on-going 24/7
  47. 47. Some tributaries are “man-made” and proprietary like a brand tracker
  48. 48. Start research with river rather than projects</li></ul>19<br />
  49. 49. Changing Economic Power Balance<br />Source: PriceWaterHouseCoopers January 2010 Forecast<br />
  50. 50. The Challenges for Developed Markets<br />Aging Populations, Healthcare, Pensions, Government Budget Crises<br /><ul><li> Between 2010 and 2050, U.S. population projected to grow from 310 million to 439 million (increase of 42%).
  51. 51. One in five US residents will be aged 65 and older in 2030. </li></li></ul><li>Glocalization<br />The dilemma is how to manage brands globally while activating them locally<br />Culturally relevant<br />Reflect local retailer practices and footprints<br />Frienemy relationship between manufacturers and retailers<br />22<br />
  52. 52. Our mission<br />“Inspiring better business futures by listening, learning, and translating humans and markets to bring them to life, in order to anticipate and give knowledge to the enterprise.”<br />23<br />
  53. 53. Transforming your organization<br />Learning organizations: <br />Learning organizations always have their ear(s) to the ground. They are open minded, and their doors are open to new thinking, new trends, and new ideas. They intentionally seek out “newness” and find ways to democratize what is new, make it understood and acceptable, and make it available. <br />The people they seek to connect with are their icons.<br />People on their terms<br />
  54. 54. 25<br />
  55. 55. Marketing Research Creed<br />Understand the business. Create value from insights by getting to the “now what” and be accountable for the business result<br />Be a thought leader. You must shape thinking not just validate. Tell the marketing team something they didn’t know. Prove your point and show the way. You must be a courageous risk-taker.<br />Bring the human into all marketing decision-making. Be the voice that connects the brand and consumer.<br />Be charismatic. Infuse with theatre to be heard and to become unforgettable<br />Be future focused. If you prove your foresight, research will be viewed as an investment rather than an expense which is critical.<br />Stay grounded. Our professional standards, principles, and processes for generating grounded insights set us apart<br />Become an agent of change. Embrace new marketing ideas, new research tools, and become an effective activist for cultural change in the organization.<br />26<br />
  56. 56. The path forward<br /><ul><li>The vision of where we want to be communicated at the Oct 28, 2010 one day ARF conference in NY
  57. 57. Metrics of the transformed organization (end of year)
  58. 58. Insights framework (Nov)
  59. 59. C-suite interviews (Nov)
  60. 60. 2020 vision (big changes, digitalization, the river) (Dec)
  61. 61. Engagement and talent; buyer implications, supplier implications, talent implications (Dec)
  62. 62. Roadblocks and strategies for circumventing (Nov-Dec)
  63. 63. Reanalysis of Ogilvy winners
  64. 64. JAR article
  65. 65. Synthesis into white papers: first quarter 2011, timed for Rethink</li></ul>27<br />