Will social data eat the market research industry? A look at the opportunities and challenges of using social data.
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Will social data eat the market research industry? A look at the opportunities and challenges of using social data.

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Presentation from Webit 2103 (http://webitcongress.com/) on the question of whether social data and the attitudinal insights that can be harvested online could disrupt the market research industry,......

Presentation from Webit 2103 (http://webitcongress.com/) on the question of whether social data and the attitudinal insights that can be harvested online could disrupt the market research industry, covering the benefits and challenges to be overcome for widespread adoption.

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  • 1. Will social data eat the market research industry? Nils Mork-Ulnes, Beyond Twitter: @nilsmu @beyond © Copyright 2012 Beyond. All rights reserved. Private and Confidential
  • 2. TECHNOLOGY INSIGHT LESS FINANCIAL RISK, MORE CREATIVE PRECISION, AWESOME RESULTS © Copyright 2013 Beyond. All rights reserved. Private and Confidential SOCIAL
  • 3. Our clients drive the social web ... and harness it LONDON NEW YORK BAY AREA © Copyright 2013 Beyond. All rights reserved. Private and Confidential
  • 4. The opportunity: From scarcity to abundance of data “Between the dawn of civilization and 2003, we only created five exabytes [of data]; now we’re creating that amount every two days.” - Google Source: New York Times, 2013 © Copyright 2013 Beyond. All rights reserved. Private and Confidential @nilsmu @beyond
  • 5. from this, Two kinds of digital data 1 2 © Copyright 2013 Beyond. All rights reserved. Private and Confidential Behavioral data Attitudinal Data This presentation will focus here
  • 6. “Word of Mouth” has a always had a large impact on brands but now we can measure it more readily 2.1 billion a day in the US alone 6% occur online © Copyright 2013 Beyond. All rights reserved. Private and Confidential Source: The Keller Fay Group, 2013, based on 1 year of data from more than 31,000 US consumers aged 13-69 @nilsmu @beyond
  • 7. An industry ripe for disruption? “the global market research market... [is valued] at $31 billion... ...We believe 100 percent of the current marketing analytics market can be captured through social technology… with savings of up to $1Bn” - McKinsey, The social economy: Unlocking value and productivity through social technologies, July 2012 © Copyright 2013 Beyond. All rights reserved. Private and Confidential @nilsmu @beyond
  • 8. The BENEFITS OF SOCIAL data McKinsey report on benefits of social data: © Copyright 2013 Beyond. All rights reserved. Private and Confidential ➡Removes survey biases: unprompted, uncompensated and unfiltered observations ➡Greater speed: more timely insights into preferences and trends ➡Cost: reduced data collection costs allows more of the budget to be spent on analysis @nilsmu @beyond
  • 9. The challenges OF SOCIAL data ➡Noisy unstructured data is hard to analyse at scale ➡Lack of standards - and lack of methodology maturity - leads to lack in buy-in in C-suite ➡Silos in organizations means that this data isn’t shared - social data tends to remain in comms function ➡New biases introduced, favoring the vocal & connected consumer © Copyright 2013 Beyond. All rights reserved. Private and Confidential @nilsmu @beyond
  • 10. than alone. Tweets having generally a higher impact than negative Tweets. Therefore, to gain the most out of the online wordof-mouth embodied by Tweets, companies would be best served by addressing the balance of sentiment about their games through increasing the number of positive Tweets. short-term impact + predictive power, but... Table 1 summarises the impacts on sales volume from a 30% change in positive Tweets, negative Tweets and New game on each genre, as a WOM average of the estimated title level with sales traditional advertising & movie releaseweightedhas measurable correlationimpacts. The results in the table on the impact of positive Tweets correspond to a thought experiment: “How would the sales of a title respond to a having a 30% higher number of positive Tweets about it?” E.g., positive Tweets explains 5x the variability in sales of advertising for video games Table 1. Impact of key levers on sales volume in the first 10 weeks of release by genre Genre 30% more positive Tweets 30% fewer negative Tweets 30% more non-Twitter advertising Shooter Sports Racing Action Role playing Other 8.1% 6.3% 6.3% 4.2% 8.0% 3.1% 2.4% 6.7% 3.3% 2.0% 7.5% 3.1% 1.6% 0.7% 0.9% 1.9% 3.2% 3.9% Overall 6.1% 3.3% 1.6% Source: Deloitte analysis of data from GfK, Nielsen and Crimson Hexagon ng” in this Caveat: correlation ≠ causation ers to traditional The results show that for the key genres of shooter, sports and racing games, the impact of having more positive above-the© Copyright sentiment is a multiple of the impact of increasing traditional advertising spend by an equal proportion. Across the tising spend, 2013 Beyond. All rights reserved. Private and Confidential @nilsmu @beyond
  • 11. Companies mostly use quant metrics Metrics used Source: Duke University’s CMO Survey, 2013 © Copyright 2013 Beyond. All rights reserved. Private and Confidential @nilsmu @beyond
  • 12. "When we say it's positive, the machine about 21% of the time says it's negative" Eric Schmidt, senior manager-marketing strategy and insights at Coca-Cola, on automated social media sentiment © Copyright 2013 Beyond. All rights reserved. Private and Confidential
  • 13. Don’t confuse this with this Carefully researched conclusions © Copyright 2013 Beyond. All rights reserved. Private and Confidential
  • 14. No Black boxes For “market research grade” insight, you still need sound, transparent research methodology © Copyright 2012 Beyond. All rights reserved. Private and Confidential
  • 15. getting the best from both HUMAN: Ambiguity Machines: Scale Ex: Twitter using custom mechanical turk pool for “human computation” = accuracy+scale © Copyright 2012 Beyond. All rights reserved. Private and Confidential
  • 16. Key points 1 3 2 28:32 Social data is still a massive untapped opportunity for both brands and agencies to use along with conventional research © Copyright 2013 Beyond. All rights reserved. Private and Confidential Abundance of data means investments must be made in “human computation” to overcome challenges of unstructured data Methodological rigour and transparency needed for C-suite buy-in @nilsmu @beyond
  • 17. Social Methodology Traditional Methodology • Lower Cost: Permits frequent measurement • Targeting : Filtering through demographic data allows • Targeting of Influencers: Online conversations are often traditional methods to target a specific sample segment conducted by influencers • Structured Data Collection: You will get answers to all your • Uncovering Trends: Unprompted observations are likely to lead to trend discovery questions • Scaled Response: You can quantify a consumer attitude or a • Group Comparison: Fairly easy to identify people who are feeling pre versus post purchase • Uncovering Intent: Previous research indicates that online • Representative Sample: Targeting specific demographics word of mouth is strongly related to intent • Data Analysis: Analysing quantitative data is easier than • Data Versatility: Conversational data is unstructured analysing qualitative data, which is unstructured allows the researcher to study a representative sample and thus not limited by expected responses • Lack of Demographic Information : Demographic • More expensive: Incentives and human factors drive costs information within social media conversation often has to be • Group Comparison: Group comparisons are often costly and inferred difficult due to the additional sample required • Possible Response Bias: People more likely to share a very • Structured Trend Discovery: Discovery of trends is limited positive or very negative experience than a more neutral to the type of questions the researcher is asking experience • Selection Bias: Incentive based studies attract a specific type • Difficult to Analyze: To get high quality data, unstructured conversational data needs to be cleaned and analyzed in a of respondent • Observer Bias: Prompted observation miss what the labor intensive manner researcher did not think of measuring © Copyright 2013 Beyond. All rights reserved. Private and Confidential @nilsmu @beyond
  • 18. Examples of uses of social data Social Data Type Product Development Consumer Insights category (unsolicited) Discover unmet needs Crowdsourced Insights - category/ brand (solicited) Product co-creation Marketing & Sales Operations Customer Service Proposition development, positioning, and testing. Channel and campaign planning. Brand product/ service conversations Brand health measurement & positioning Positive word of mouth; fan interaction Advocacy and loyalty programs Customer service interactions via social © Copyright 2013 Beyond. All rights reserved. Private and Confidential Forecasting & monitoring NPS measurement Improve customer service processes @nilsmu @beyond
  • 19. HOW WE APPLY IT © Copyright 2013 Beyond. All rights reserved. Private and Confidential
  • 20. Service attributes: Segmenting by customer journey stage Complementing Voice of Customer Research: Top 10 Attractors and Barriers Top 10 (Dis)satisfaction Drivers 1. Pricing 1. Call Centres 2. Reliability 2. Reliability 1. Ongoing monthly KPIs instead of yearly cycle of VOC 3.... 4.... 4.... Current'' 60%' 2. Fraction of the cost Unknown' 27%*' Former'' 1%' 3. Captures important social WOM factor VOC can’t 4. Captures moment-ofengagement rather than afterthe-fact 3.... Considering'' 12%' Top 10 (Dis)satisfaction Drivers Top 10 Attractors and Barriers 1. Reliability 2. Reliability 2. SPEED 3.... 3.... 4.... © Copyright 2013 Beyond. All rights reserved. Private and Confidential 1. Call Centres 4....
  • 21. Consumer insights: which features people want Complementing qualitative research for market entry in electronic wallet space: 4% Barriers to Adoption 4% Pin Battery dependency Multiple cards 3% Transaction tracking RFID 2% Threats% Remote swiping 2% Ads 2. Unprompted attitudes P2P Payments Frozen money 3. Competitor SWOT Fingerprint verification Digital/NFC keys NFC Sticker Sonic Payments Barcode Scanning Transaction errors 1% Digital Receipts Loyalty/Rewards cards Customer service © Copyright 2013 Beyond. All rights reserved. Private and Confidential 3% Deals/Coupons 1. Understand early adopter needs 4. Fraction of cost of focus groups/ surveys Reasons to Adopt Transaction Speed 1% Digital tickets 0% 5" Very%Nega*ve% 4.5" 4" 3.5" 3" Balanced% Avg. Sentiment 2.5" 2" 1.5" Very%Posi*ve% 1" @nilsmu @beyond
  • 22. From social data through strategy to designing new Virgin.com Fewer people are searching for virgin.com All Organic Search Referrals to Virgin.com "Virgin" Keyword Search Referrals to Virgin.com 30,000 Who’s talking about virgin and entrepreneurship? Conversations align with some values and not others Percentage of Conversations Including Brand Value*: Fair Play (4%) Delightfully Surprising (19%) 68.1% Heartfelt Service Red Hot (29%) Insatiable Curiosity Business/Technology Interests 2% Eastern Europe 7% Asia 31.9% Male USA Focus 7% Western Europe USA Insatiable Curiosity (4%) 10,000 11% UK/Ireland 61% Heartfelt Service (4%) 20,000 Skews Male What Virgin should strive for in a content strategy: Female Skews 18-35 Delightfully Surprising 1% M.E. Content 0 1-Sep-08 1-Jan-09 1-May-09 1-Sep-09 1-Jan-10 1-May-10 1-Sep-10 Virgin.com referrals from search have grown by people searching for Virgin’s brands. 1-Jan-11 1-May-11 1-Sep-11 1-Jan-12 1-May-12 1-Sep-12 Smart Disruption (49%) Fair Play Smart Disruption © Copyright 2012 Beyond. All rights reserved. Private and Confidential Entrepreneurship Subthemes within Social Media Conversation High Penetration Business Tips and Advice Small Business Focus • Harnessing Virgin’s community of followers to write content about entrepreneurship – tech and startups in particular – could provide content on either side of the neutral line to help drive conversation. Startups + Tech Culture Young Entrepreneurship Social Responsibility Work/Life Balance Negative Tone Neutral Tone Low Penetration Sustainability Positive Tone © Copyright 2012 Beyond. All rights reserved. Private and Confidential © Copyright 2013 Beyond. All rights reserved. Private and Confidential Technology/Engineering Startups Sports and Fitness Art and Design Music Travel Environment Business Owner Focus 0% 63% 34% 3% 18-35 35-65 Over 65 Central / Latin America 4% 3% Other Africa 3% South Africa Australia and N.Z. 31% Business Owner Self/Employed 22% Corporate Executive 17% Works in /with Technology 11% Musician/Artist/Writer/Filmmaker 3% Student 16% Other employee type © Copyright 2012 Beyond. All rights reserved. Private and Confidential what emotions are surrounding the conversations? Takeaway Takeaways • Content could take more of a stance or instigates a response, put forth a genuinely unique idea, or looks at business from a different angle. 2% Under 18 * Out of a sample size of 900 conversations Conversation is on average neutral General Business Red Hot People searching for Virgin itself have decreased. © Copyright 2012 Beyond. All rights reserved. Private and Confidential 36% 20% 18% 7% 6% 5% 4% 2% Target personas* personas “Music Festival Junkie” Music festival content should build on consumers’ sense of anticipation, as well as aim to keep the experience alive after the festival itself. Emotive Reaction Within Conversations What triggers reactions in the Emotive Conversations? Contest: Anticipation: Call to Action* 31% 2% 20% No reaction: 47% © Copyright 2012 Beyond. All rights reserved. Private and Confidential (47%) (29%) Wonder: (8%) Recommendation: (4%) Experience: (1%) Humour: (1%) Other: (9%) *Call to action: the post actually directs users to engage with the content or with Virgin itself (e.g., “you must read this ASAP”). “Self-made Musician” Kate Randolph • Loves to dance • Interest in sports and fitness • Uses Facebook, Twitter Sam Spear James Fallow @samuelspear Age 37 Senior Account Manager, PWC London, UK @singinjames Age 28 Independent Musician Austin, TX @kran2010 Age 20 Student Manchester, UK Key points: • Student at university • Very outgoing, social • Knows hot music trends “Enthusiastic Music Advocate” Key points: • Devoted to his craft • Trying to ‘make it big’ • Seeking sponsorship • Side job as radio DJ • Uses Twitter, Facebook • Works at a recording studio Key points: • Self-proclaimed music fanatic • Explores the current trends • Side interest in sports and art • Mid-level employee • Often attends concerts • Spreads taste to peers and a local venue at night What’s important to her? • Keeping up-to-date on the music fests in the UK with lineups, prices, dates and giveaways. • Having a great time dancing and listening to music with her friends, as well as meeting new people with whom she can share these fun experiences. What’s important to him? • Making time outside of his work to write his music and practice the guitar, as well as prepare for shows, promote himself, and try to raise money for an EP. • Maintaining his musical originality and seeing its effect on people’s pleasure. What’s important to him? • Being the tastemaker among his group of friends by discovering the best new indie and pop artists. • Attending concerts and music festivals after work and on the weekends to meet new people and share common interests about music and other culture. What’s she looking for? • Deals on tickets and special access for the music festivals she wants to attend, as well as information on early lineup releases, new venues and after-hours shows. • Fun ways to enjoy the music festivals she can’t attend from afar, via television, streaming or a combination. What’s he looking for? • New methods for promoting himself, financing a record, travelling to shows and finding equipment. • A means to get involved in the music community by keeping a handle on the scene and by supporting his fellow musicians. What’s he looking for? • An online content destination where he can discover new artists, read profiles and download playlists. • Exclusive behind-the-scenes looks at music festivals and concerts, ways to watch concerts and festivals he isn’t able to attend, and access passes for other shows. © Copyright 2012 Beyond. All rights reserved. Private and Confidential *Personas are formulated based upon the most common trends within the demographic data. They are not actual people.
  • 23. © Copyright 2013 Beyond. All rights reserved. Private and Confidential
  • 24. THANK YOU for your time contact us Nils Mork-Ulnes Head of Insights, Analytics & Strategy +44 (0)2079 086556 +44 (0)7713 077994 nils@bynd.com © Copyright 2013 Beyond. All rights reserved. Private and Confidential