Sentient Services (Ubiquity Marketing Un Summit 2009) V1

Ubiquity Marketing unSummit
Is Market Research Dead in a 2.0 world?09.03.09

What we will talk about
Sentient
Is research dead – in a 2.0 world?
Inc. article and response
Why research?
Ways for entrepreneurs to leverage
Best practices – stuff you can leave with

Who We Are
Sentient Services is a Knowledge Studio® - the amalgamation of market research, user experience and information design practices. We leverage these core competencies for our clients in product development, interactive, sales, marketing, advertising and branding.
Sentient provides the knowledge to lead and the tools to connect with customers through research, customer innovation and technology.
We work with startups and F500 clients around the globe
We specialize in technology and companies that leverage technology and the internet in their products, marketing and sales
Accolades as a good company to work with and for:
2008 Inc. 5000 list
2007 and 2008 Fast 50 – Named one of the fastest growing privately held companies in Central Texas
2007 and 2008 Top 15 agency in Austin, Texas by the Austin Business Journal
2007 Best Places to Work in Central Texas

What We Do
Information design providing the right information, in the right place, at the right time.
Usability services for web, software, product and creative with state-of-the-art lab.
Customer insights through advanced quantitative and qualitative methodologies.
Our Information Design practice provides an unparalleled scientific and customer research driven information platform
Content strategy | Information architecture | Heuristic design|
Interaction layers & dependencies | Wireframes
Full-service worldwide quantitative and qualitative research. We cover branding, customer engagement, market analysis (segmentation, sizing, pricing), product development and usability.
Focus groups | In-depth-interviews | Usability & Eye tracking | Online groups |
Web-based surveys | Phone-based surveys | Custom panel development
We conduct concise, measurable and actionable usability research, covering a range of different media including websites, software, email, packaging, interactive, print and television.
Business definition | Contextual assessment | Heuristic evaluation | Personas |
Task analysis | Usability analytics | Reporting (IA, content, wireframe)

Sentient
Why research?

“The Customer Is the Company”
In June of 2008 Inc. published an article about Threadless entitled “The Customer Is the Company”. MIT’s Eric von Hippel implied that their business model spelled the end of traditional market research and large R&D departments.
You see, they get all their designs and input on what to sell from their customers via their website. Welcome to a web2.0 company.
So, is the market research industry out of business?

Market Research – current state
On the surface, some major shifts.
Web2.0 “Threadless” effect
Response rates are declining, development cycles are shortening, costs are increasing…
Free survey software is out there and you can now use Facebook, LinkedIn… (all actually good resources given the right task)
Just because it worked 50 years ago does not mean it works today
Non-response bias, large internet samples lead to false stats…
There is still a place for market sizing and large scale quant segmentation studies
However, these are few and far between
Biggest value in market research for emergent sectors and companies lies in
developing the right product/service (usability, UI, lead user and observational design)
clearly communicating emerging and technical concepts with associated value propositions
… all targeted to the right person at the right time via engaging and salient media (what the other fine folks are here to talk about, so I will skip this)

What is changing, what is not.
So, I wrote back to Inc.
“You can call it crowdsourcing or customer-driven design, but what Threadless does is essentially market research. I think of Threadless's user base as one large consumer panel. Threadless's business model immediately implements the findings from this market intelligence. What traditional market research does is similar. It provides the framework, methodology, and discipline to solicit feedback from customers. The rise of Threadless does not mean the end of market research but a transformation in the way companies implement it. That's what's changing.”
Knowledge by itself is not power, knowing what to do with it is. Call it what you want, but the basis of needing to understand customers and cut through questioning biases, sampling issues, analysis and then turning data into bite-sized business intelligence has not changed. Oh, and that is called market research.

Why Market Research?
Two main reasons: Product Development + Branding. Why these two?
Product Development
If you want to keep your customers, if you want to know why you are losing business, if you want to know how to make your product/service better – just ask
Observational design and lead-user development are key and cost-effective tools to avoid extremely costly mistakes AND to develop additional breakthroughs that internal teams simply couldn’t have imagined – “forest and trees”
Branding
Rapidly changing paradigms make today’s bleeding edge old tomorrow – you can get leapfrogged much too easily
Minimum ownership of means of production – the true knowledge economy
As quickly as tech is emerging many sectors are becoming “commodities” where good enough covers end-user needs

Sentient
Why research?

Research is important, but it costs $
Yes and yes – but here are a few ways to get around that
There are many great FREE web survey tools out there (www.zoomerang.com is one of my favorite, and it has discounted non-profit pricing)
And, since the best research you can do is with current customers, typically the sample costs you nothing
Most research does not have to be complicated! Keep It Simple. If you don’t, you will spend more time convincing others that the analysis is correct than actually taking action on it
You can easily create basic online groups or forums to get feedback using LinkedIn. Facebook, Ning and other platforms
There is a ton of research already done – look at SEC filings, press releases, lobbying firms for your industry do a ton of research, local Chamber of Commerce…the list goes on

What will still cost you
Time – if you want your research done on time, typically you will need to dedicate resources or hire an outside firm
Advanced analytics – segmentation, conjoint…
Nuanced survey writing – internal and external validity
Professional research management (replicates, non-responses analysis, normalizing data…)
In-person with facilities, one-way mirror, eye tracking
Prospect survey or focus group respondents

Sentient
Why research?

Market Research
What is it?
Understanding why you are in business
When to use it?
When you don’t know, really
When not to use it?
When you can’t do anything with the answers
What can you do with it?
Make better products, say the right thing to the right person at the right time – spend your money wiser!
What it is not? Why are budgets hard to get sometimes?
Production, sales staff, advertising…not historically tangible or integrated
Why spend money on market research?
Because it makes the list above infinitely and measurably better

Scoping a Project
What to do in-house?
Understand your business and where you have questions – don’t pay someone to do basic homework.
What to outsource?
Survey writing and analysis at a minimum – these are where the adage “Forest andthe trees” can bite you.
How to choose a methodology?
Quant. – when you need to size, project, track and otherwise measure
Qual. – when you need to understand, develop, “speak” and interact
How to choose a vendor?
Varies by your internal expertise and need for output and implementation

Survey Writing
Tone – don’t speak down, assume limited time and attention (respondents will skim), but don’t make too techy
Scales – huge debate here but some general guidelines:
Allow a Don’t Know/Refuse option
If the survey is short anchor all points
Avoid a mid-point (unless you can make a strong argument)
Create positively skewed response scales
Design and layout
Just because the web is “easy” does not mean that design can be ignored
Same basic principals that go into mail surveys apply here
Eye movement (columns, scrolling, etc.)
Column widths, number of pages vs. scrolling etc.

Fielding and Project Management
Invitations and reminders
Subject line is important
“Need your feedback”
Check for common words that will get caught by SPAM filters
Have a call to action and how they benefit – “This is your chance to provide direct feedback on the products you use and to help make them better.”
Timing
Launch Tuesday-Thursday 10-2pm CST – for US
Majority of responses will come back within 48 hours
Send reminders out 3-5 business days later, no more than 2 reminders at most
SPAM and customer service
Stay in compliance (physical address, opt-out links, etc.)
Quality control
Check responses – do numbers make sense, it if looks wrong it probably is
Check for response outliers and remove if needed
Ensure that survey fielding period is long enough to get hard to reach respondents – replicates
Non-response bias
Sub-par response rate
Panels vs. RDD

Turning Data into Insight and Action
Don’t walk…. Run – don’t let the results gather dust
Do share the results – don’t worry about knowledge ownership
But, ensure that implications and application of the data is clear in presentation/ briefing
But, don’t rush – one insignificant (there is not such thing) wrong number will call the entire study into doubt
Don’t overcomplicate the data or the results
Avoid weighting if at all possible
If you can’t summarize the key points on one page, try and try again

Market Research – Core Competency
Our Market Research practice helps clients take the first step in interacting with customers, building better products and communicating – LISTENING
We combine our proven research principles with a depth of experience in sociology, psychology, economics, statistics and marketing. Key business areas we provide research intelligence for include:
Branding
Customer Engagement
Market Analysis (segments, sizing, pricing)
Product Development
Usability
Interactive
Social Media

Market Research – Goals + Methodologies
RESEARCH GOAL
Understand the motivations
underlying customer behavior
Develop, design, refine
Observe, brainstorm, ideate
Develop survey content
Marcom testing/development
Understand how users interact with product, software, or website
Pinpoint deficient or difficult-to use areas
Identify ways to improve the user experience
Increase interaction and sales
Brand awareness/Brand equity
Market size
Customer profile
Customer experience
Product/Service development
Marcom testing/development
METHODOLOGY
QUALITATIVE
USER EXPERIENCE
QUANTITATIVE
SENTIENT TOOL KIT
In-person/Web-based groups
In-person/Web/Phone interviews
Language analysis
Facial and behavioral coding
Observational fielding
Group ideation
Projective techniques
In-depth interviewing
Usability testing
Contextual inquiry
Eye-tracking analysis
Facial and behavioral coding
Language analysis
Experimental design
Web/Telephone surveys
Brand concept mapping
Market segmentation
Advanced modeling
Conjoint analysis
Text analysis
Data mining/Segmentation

Market Research – Messaging Research Platform
IMAGERY & CREATIVE
POSITION:
WHO ARE YOU? What is the one idea or thought that will resonate with customers above all else, match their needs and set you apart from the crowd?
DIFFERENTIATION:
How are you better?
SIGNIFICANCE:
Why customers should care?
IDENTITY:
What do you do?
Very specifically & very simply – who are you?
True & meaningful differences. This is why you exist.
What is in it for the customer? Why do your differences matter to them?
MESSAGING SUPPORT:
Attributes, features and benefits
3
1
4
2
EMOTIONAL:
Emotional derivatives of brand interaction

User Experience – Core Competency
We conduct concise, measurable and actionable usability research, covering a range of different media including websites, software, email, packaging, interactive, print and television. Our User Experience group works across the board from product development to creative optimization to increase business success through user-centered design.
Business Definition
Contextual Assessment
Heuristic Evaluation
Persona Development
Task Analysis
Usability Analytics
Reporting (IA, content, wireframe)
Consulting (see Information Design section)

User Experience – Lab
Sentient owns and operates a singularly dedicated, state-of-the-art usability lab and focus group facility. The lab has the latest technology, including eye tracking, huge HD viewing screen, remote web viewing, and studio-quality video and sound.
We conduct:
Eye Tracking for web, software, packaging and advertising
Usability sessions
Focus groups
In-depth-interviews
Our usability setup (including eye tracking) can roll mobile to any location globally

User Experience – Why Eye Tracking?
Eye tracking complements traditional behavioral and self-reported measures of user experience with physical measures of eye movements, showing us what users pay attention to and how they process the information they see
Eye tracking sheds light on the why underlying the what of user behavior:
Assess decision-making processes
What elements of the medium do users consider before finally selecting one - all available options or only a few?
Search strategies and efficiency
How do users look for relevant information? Where do they expect it to be? Do they quickly recognize a relevant link/action signifier or do they need to read over it several times before taking action? How does messaging and copy interplay with the design and user experience?
Evaluate the match between visual design and business objectives
Which elements are users immediately drawn to during those critical first seconds of impression formation? Are the impressions formed from these images consistent with business objectives?
When eye tracking is added to the usability arsenal, we learn not only if design weaknesses exist, but also where they lie, why they fail and how to fix them
Eye tracking allows for meaningful benchmarking and measurable usability tracking
Heatmaps and gaze timelines allow for easy and accurate comparison between sites, ads and other visual stimuli (e.g., does it take 8 views to find vs. 5, is X viewed more than Y?).

Heatmaps – What Do They Tell Us?
A heatmap is an aggregate image representing the eye gaze data of all users viewing a given page - the warmer colors at specific points on the page indicate where people’s viewing patterns converge, and thus show us which items or region draw the most attention from the group
A heatmap image provides a single-glance depiction of information viewing and patterns of usage
Even more importantly, it shows those areas that users never see at all – and if they didn’t see it, they can’t use it or choose it
Heatmaps provide a powerful visual tool that is driven by user behavior and allows clients to quickly spot design gaps, capitalize on usage patterns and communicate design direction easily to teams

Heatmap – Example
Warmer colors indicate the areas that are viewed the most
Symbols indicate where each user clicked to navigate away from the page

Gaze Timelines – What Do They Tell Us?
A gaze timeline is an individual image that indicates the path of one user’s eye gaze for the duration of each page, view or visual stimulus. Each circle indicates a fixation, and larger circles indicate longer fixations
Analyzing gaze timelines allows us to answer fine-grained questions such as:
What element(s) are viewed first, second and so on for a given task or impression?
Did users have trouble comprehending the information or design before taking action?
Did users see and then choose to skip over an area or simply not see it at all?

Gaze Timeline – Example
This site is well-designed for Search Task A
This site is not well-designed for Search Task B
Relatively few fixation points and short scanpaths (lines between the fixation circles) indicate an efficient search
Numerous fixation points and long scanpaths indicate an inefficient search

Gaze Timeline – Print Ad Example
In the first 5 seconds a viewer looks at faces first
Prices are not noticed in the first 5 seconds
Words in bubbles get read before standard text
Colored text and shapes draw attention to offers on the right, but not to pricing
Bottom left corner is a “dead” spot
5 Seconds

Information Design– Core Competency
Our Information Design practice provides an unparalleled scientific and customer research driven information platform
Sentient Service’s Information Design group creates a user experience that delivers the right information in the right place at the right time
Content Strategy
Information Architecture
Heuristic Design
Interaction layers and dependencies
Wireframes

Information Design – Approach
Our approach is user driven:
WHO
WHY
WHAT
Understand who is using, their intent and motivations for interaction
Understand why they are using it this particular time
Understand what information and activity is important in the dialogue
From here we follow these rules that drive your success:
REDUCE
SMART
INCREASE
Reduce the interaction layers and communications layers to their essence – smart is simple
The tools for smart design – market research, user experience/eye tracking, interactive expertise
Increase click rates, brand interaction, stickiness and sales through an improved user experience

Contact Information
512.288.1706
www.sentientservices.com
info@sentientservices.com
Paul Janowitz, CEO & Founder
paul@sentientservices.com

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Sentient Services (Ubiquity Marketing Un Summit 2009) V1

by Paul Janowitz

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