Ubiquity Marketing unSummitIs Market Research Dead in a 2.0 world?09.03.09

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

Who We AreSentient 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 globeWe specialize in technology and companies that leverage technology and the internet in their products, marketing and salesAccolades as a good company to work with and for:2008 Inc. 5000 list2007 and 2008 Fast 50 – Named one of the fastest growing privately held companies in Central Texas2007 and 2008 Top 15 agency in Austin, Texas by the Austin Business Journal2007 Best Places to Work in Central Texas

What We DoInformation 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 platformContent 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 developmentWe 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)

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

“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 stateOn the surface, some major shifts.Web2.0 “Threadless” effectResponse 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 todayNon-response bias, large internet samples lead to false stats…There is still a place for market sizing and large scale quant segmentation studiesHowever, these are few and far betweenBiggest 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 DevelopmentIf 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 askObservational 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”BrandingRapidly changing paradigms make today’s bleeding edge old tomorrow – you can get leapfrogged much too easilyMinimum ownership of means of production – the true knowledge economyAs quickly as tech is emerging many sectors are becoming “commodities” where good enough covers end-user needs

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”

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

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

Research is important, but it costs $Yes and yes – but here are a few ways to get around thatThere 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 nothingMost 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 itYou can easily create basic online groups or forums to get feedback using LinkedIn. Facebook, Ning and other platformsThere 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 youTime – if you want your research done on time, typically you will need to dedicate resources or hire an outside firmAdvanced analytics – segmentation, conjoint…Nuanced survey writing – internal and external validityProfessional research management (replicates, non-responses analysis, normalizing data…)In-person with facilities, one-way mirror, eye trackingProspect survey or focus group respondents

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

Market ResearchWhat is it?Understanding why you are in businessWhen to use it?When you don’t know, reallyWhen not to use it?When you can’t do anything with the answersWhat 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 integratedWhy spend money on market research?Because it makes the list above infinitely and measurably better

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 ProjectWhat 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 measureQual. – when you need to understand, develop, “speak” and interactHow to choose a vendor?Varies by your internal expertise and need for output and implementation

Steps

Survey WritingTone – 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 optionIf the survey is short anchor all pointsAvoid a mid-point (unless you can make a strong argument)Create positively skewed response scalesDesign and layoutJust because the web is “easy” does not mean that design can be ignoredSame basic principals that go into mail surveys apply hereEye movement (columns, scrolling, etc.)Column widths, number of pages vs. scrolling etc.

Fielding and Project ManagementInvitations and remindersSubject line is important“Need your feedback”Check for common words that will get caught by SPAM filtersHave 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.”TimingLaunch Tuesday-Thursday 10-2pm CST – for USMajority of responses will come back within 48 hoursSend reminders out 3-5 business days later, no more than 2 reminders at mostSPAM and customer serviceStay in compliance (physical address, opt-out links, etc.)Quality controlCheck responses – do numbers make sense, it if looks wrong it probably isCheck for response outliers and remove if neededEnsure that survey fielding period is long enough to get hard to reach respondents – replicatesNon-response biasSub-par response ratePanels vs. RDD

Turning Data into Insight and ActionDon’t walk…. Run – don’t let the results gather dustDo share the results – don’t worry about knowledge ownershipBut, ensure that implications and application of the data is clear in presentation/ briefingBut, don’t rush – one insignificant (there is not such thing) wrong number will call the entire study into doubtDon’t overcomplicate the data or the resultsAvoid weighting if at all possibleIf you can’t summarize the key points on one page, try and try again

Market Research – Core CompetencyOur Market Research practice helps clients take the first step in interacting with customers, building better products and communicating – LISTENINGWe 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:BrandingCustomer EngagementMarket Analysis (segments, sizing, pricing)Product DevelopmentUsabilityInteractiveSocial Media

Market Research – Goals + MethodologiesRESEARCH GOALUnderstand the motivations underlying customer behaviorDevelop, design, refine Observe, brainstorm, ideate Develop survey contentMarcom testing/developmentUnderstand how users interact with product, software, or websitePinpoint deficient or difficult-to use areasIdentify ways to improve the user experience Increase interaction and salesBrand awareness/Brand equityMarket size Customer profileCustomer experienceProduct/Service developmentMarcom testing/developmentMETHODOLOGYQUALITATIVEUSER EXPERIENCEQUANTITATIVE SENTIENT TOOL KITIn-person/Web-based groupsIn-person/Web/Phone interviewsLanguage analysisFacial and behavioral coding Observational fieldingGroup ideationProjective techniquesIn-depth interviewingUsability testingContextual inquiryEye-tracking analysisFacial and behavioral codingLanguage analysisExperimental designWeb/Telephone surveysBrand concept mappingMarket segmentationAdvanced modelingConjoint analysisText analysisData mining/Segmentation

Understand the motivations

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

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 PlatformIMAGERY & CREATIVEPOSITION: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 benefits3142EMOTIONAL:Emotional derivatives of brand interaction

User Experience – Core CompetencyWe 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 DefinitionContextual AssessmentHeuristic EvaluationPersona DevelopmentTask AnalysisUsability AnalyticsReporting (IA, content, wireframe)Consulting (see Information Design section)

User Experience – LabSentient 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 sessionsFocus groupsIn-depth-interviewsOur 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 seeEye 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 efficiencyHow 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 objectivesWhich 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 themEye 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 groupA heatmap image provides a single-glance depiction of information viewing and patterns of usageEven 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 itHeatmaps 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 – ExampleWarmer 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 fixationsAnalyzing 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 – ExampleThis site is well-designed for Search Task AThis site is not well-designed for Search Task BRelatively 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 ExampleIn the first 5 seconds a viewer looks at faces firstPrices are not noticed in the first 5 secondsWords in bubbles get read before standard textColored text and shapes draw attention to offers on the right, but not to pricingBottom left corner is a “dead” spot5 Seconds

Information Design– Core CompetencyOur Information Design practice provides an unparalleled scientific and customer research driven information platformSentient Service’s Information Design group creates a user experience that delivers the right information in the right place at the right timeContent Strategy Information ArchitectureHeuristic DesignInteraction layers and dependenciesWireframes

Information Design – Approach Our approach is user driven:WHOWHYWHATUnderstand who is using, their intent and motivations for interactionUnderstand why they are using it this particular timeUnderstand what information and activity is important in the dialogueFrom here we follow these rules that drive your success:REDUCESMARTINCREASEReduce the interaction layers and communications layers to their essence – smart is simpleThe tools for smart design – market research, user experience/eye tracking, interactive expertiseIncrease click rates, brand interaction, stickiness and sales through an improved user experience

Our approach is user driven:

From here we follow these rules that drive your success:

Contact Information512.288.1706www.sentientservices.com info@sentientservices.comPaul Janowitz, CEO & Founderpaul@sentientservices.com