eMarketing Techniques Conference_Give Your Customers what They Want

Slide 1: 4/29/08 Give your customer what they need— before they know it! May 2, 2008 Mitch Slater Mitch@visinno.com 216-225-0589 So what’s the big deal? •  Too much risk and too little time •  Most product introductions fail •  Over time, market tastes change •  Traditional market research misses too much •  When it’s new, it is hard to know where to start the development process © 2008 Visible Innovations Without purpose, there is no meaning •  What should we sell? •  How should we package it? •  What shall we charge for it? •  Who should we target? ...for the BIG BUCKS! $ •  How shall we entice them to buy? •  How can we increase our chance of success? © 2008 Visible Innovations 1

Slide 2: 4/29/08 What’s in it for the customer? Remember, it is ALL about THEM! © 2008 Visible Innovations So what do your customers know? •  Less than you might think. •  Can they tell you what they want? •  Can they tell you what they need? •  Can they tell you what they like? •  Can they tell you why? © 2008 Visible Innovations Sure, Focus Groups, Surveys… No wait, Analytics or CTR or… © 2008 Visible Innovations 2

Slide 3: 4/29/08 How about a systematic approach? •  No more random •  No more haphazard •  No more guessing •  No more dependence on “the Genius” © 2008 Visible Innovations What’s in it for you? •  What product characteristics do they LOVE HATE or ? •  And in what combination? •  Discover market segmentation with   strong affinity   ...or repulsion © 2008 Visible Innovations Why? •  Highly differentiated products/services   ...are compelling   ...stimulate demand   ...command the highest prices   ...instill strong customer loyalty © 2008 Visible Innovations 3

Slide 4: 4/29/08 Rule Developing Experimentation •  Systematic •  Repeatable •  Statistically based •  “Rules of Thumb” •  Universally applies to product and message •  Usable in any business situation © 2008 Visible Innovations To Coin a Phrase “RDE is a systematized solution-oriented business process of experimentation that designs, tests, and modifies alternative ideas, packages, products, or services in a disciplined way so that the developer and marketer discover what appeals to the customer, even if the customer can’t articulate the need, much less the solution!” Howard R. Moskowitz & Alex Gofman © 2008 Visible Innovations Products and Services are •  Complex •  Multi-faceted •  Rich with variety The Possibilities are endless! •  Hard to analyze •  Difficult to isolate © 2008 Visible Innovations 4

Slide 5: 4/29/08 Basis: Conjoint Analysis •  Stimulus – Response •  Assumes they don’t know •  Assumes they can’t articulate •  Looks at multiple elements taken together © 2008 Visible Innovations Step 1 Think about the problem and identify groups of features that comprise the target product Structure the Problem •  Selling Luxury Real Estate •  Expanding the Marketing for Financial Services •  Promoting energy saving controls for the home © 2008 Visible Innovations Categories and Elements © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET 5

Slide 6: 4/29/08 Categories and Elements © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET Categories and Elements © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET Step 2 Mix and match the elements according to a special experimental design (a schema of putting together elements) to present a set of prototypes. © 2008 Visible Innovations 6

Slide 7: 4/29/08 An E-mail Survey Example © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET Step 3 Show the prototypes to your target audience © 2008 Visible Innovations Step 4 Analyze results © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET 7

Slide 8: 4/29/08 Other Views © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET 8

Slide 9: 4/29/08 Step 5 Optimize and Segment © 2008 Visible Innovations Segment © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET Segment Again © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET 9

Slide 10: 4/29/08 Iterate and Verify © 2008 Visible Innovations Images courtesy of IDEAMAP® .NET Bringing it all together •  A repeatable methodology •  Provides structure •  “Reads customers’ minds” •  Finds the most profitable and compelling   Product / Message Mix   Target Market Segments © 2008 Visible Innovations Any Questions? Mitch Slater Mitch@visinno.com 216-225-0589 10