Qualitative Why you need it & how to get value Presented by: Susan Abbott Abbott Research & Consulting www.abbottresearch.com

Wouldn’t you love a business like this?

1% of owners buy pet health insurance Why do only 1% buy insurance? Was this market lying dormant for decades? Or did something change? An estimated 1,300 companies, including Viacom, Ford Motor Co. offer pet insurance to their employees. STARTRIBUNE.COM | 9.11.06

Why do only 1% buy insurance?

Was this market lying dormant for decades? Or did something change?

An estimated 1,300 companies, including Viacom, Ford Motor Co. offer pet insurance to their employees. STARTRIBUNE.COM | 9.11.06

Is Curves Right for Me?

How do you get this without qualitative?

Standard Chartered Segmentation Developing Loyals I Share of customers 9% Share of profits 44% Highest asset balance across segments 25% of segment has high bank assets Liabilities low Now what?

Developing Loyals I

Share of customers 9%

Share of profits 44%

Highest asset balance across segments

25% of segment has high bank assets

Liabilities low

What are your goals?

Where are we going? When to use Designing the study: scope parameters Interpreting and using the insights Emerging trends in qualitative Hybrid quali-quant research techniques

When to use

Designing the study:

scope

parameters

Interpreting and using the insights

Emerging trends in qualitative

Hybrid quali-quant research techniques

When to use: before you design a model Develop hypotheses A priori segmentation ideas Formulate ideas about how you would use segmentation based on understanding of customers Get organized to build model Deepen Learning Build Model Use

Develop hypotheses

A priori segmentation ideas

Formulate ideas about how you would use segmentation based on understanding of customers

When to use: after you build the model To understand each segment better Test different communication strategies with segments Feedback on concepts from segments All your research should incorporate segment knowledge Get organized to build model Deepen Learning Build Model Use

To understand each segment better

Test different communication strategies with segments

Feedback on concepts from segments

All your research should incorporate segment knowledge

When to use: during ?? Recruit respondents from the quantitative survey You may now know what segment they are in Instantly have a group for follow-up qualitative research Get organized to build model Deepen Learning Build Model Use

Recruit respondents from the quantitative survey

You may now know what segment they are in

Instantly have a group for follow-up qualitative research

Designing the Study Scope & Parameters

Who do you want to talk to? Be exact Customers or non-customers? Users or non-users? Recent experience Widest possible profile

Be exact

Customers or non-customers? Users or non-users?

Recent experience

Widest possible profile

Scope: Cost vs. Payoff What is the total investment in the segmentation project? 10:1 rule of thumb

What is the total investment in the segmentation project?

10:1 rule of thumb

Quali-Quant Methods Adding quantitative data gathering to a qualitative method Good idea when you can’t get a large sample E.g. CEO interviews – unlikely to get sample of 300 Content analysis methods can be revealing E.g. word cloud diagrams

Adding quantitative data gathering to a qualitative method

Good idea when you can’t get a large sample

E.g. CEO interviews – unlikely to get sample of 300

Content analysis methods can be revealing

E.g. word cloud diagrams

How to interpret findings You are paying for insight, not methodology

What you want insight about Language used, metaphors Usage, context, occasions & sequence Motivations & desires Goals & alternative solutions Problems Experiences & stories Influencers Emotions and feelings

How to look for patterns “ pattern recognition begins with variation recognition” Cultural anthropologist Grant McCracken

Teens and technology project  First off - I am constantly left on. Sometimes even overnight. She leaves me in her purse all day. It's stuffy in that tiny pocket shared with all of her other items! I feel like my battery is being charged everyother day from all of the use I get. Luckily, I haven't been dropped, scratched thrown or anything else, so I am in top condition. I've seen her other friend's cellphones and I consider myself very lucky. i got the cell for two reasons one privacy i can't count the number of times my mom picked up the phone when it was for me i'd say "don't pick it up but she would and start trying to have a conversation with them.the second reason is my friends always wants to know where am at so we could get together and chill  

Methods New and emerging

Interviews & Dyads In-person or on phone Can add web-meeting for audio-visual Can add web-cam if needed When interaction can hurt the analysis Where group influence is feared Where you need to cover more ground Where they’ll never come to a group (e.g. lapsed users)

In-person or on phone

Can add web-meeting for audio-visual

Can add web-cam if needed

When interaction can hurt the analysis

Where group influence is feared

Where you need to cover more ground

Where they’ll never come to a group (e.g. lapsed users)

Focus Groups & Roundtables When discussion and interaction aids understanding When you can get people in a room together

When discussion and interaction aids understanding

When you can get people in a room together

Text Chat: Online Focus Group Whiteboard Respond here The Discussion

Online Discussion Forum / Bulletin Board

Ethnography

Games, customer workshops Develop hypotheses Develop action plan

Develop hypotheses

Develop action plan

Emerging – Instant Messaging 1

Emerging – Webcam 2

Blogs, communities, virtual worlds Blogs and electronic journals/diaries Online communities What’s next Virtual worlds 3

Blogs and electronic journals/diaries

Online communities

What’s next

Virtual worlds

Qualitative inside the organization Facilitated workshop to develop a plan Interviews and focus groups to gather input from all stakeholders Understand how groups are handling segments today E.g. relationship strategy, sales strategy Develop buy-in for new approach

Facilitated workshop to develop a plan

Interviews and focus groups to gather input from all stakeholders

Understand how groups are handling segments today

E.g. relationship strategy, sales strategy

Develop buy-in for new approach

Best Practices

Collaborate Bring the researcher in early to assist in scoping and design Particularly important if you do not have in-house research staff Involve as many company insiders as you can Insight in planning Buy-in to execution Variety of perspectives Watching is more compelling than reading a report Participating is more compelling than watching

Bring the researcher in early to assist in scoping and design

Particularly important if you do not have in-house research staff

Involve as many company insiders as you can

Insight in planning

Buy-in to execution

Variety of perspectives

Watching is more compelling than reading a report

Participating is more compelling than watching

Before, During and After Plan for when you can get the best use of the qualitative Get organized to build model Deepen Learning Build Model Use

Plan for when you can get the best use of the qualitative

Keep researching… Some things don’t change How our brains are hardwired Our need for sustenance Our desire for safety, security, self-confidence, etc. How we age How taste-buds work The stages of child development People tend to form some kind of family or social group Some things change constantly How we respond to the culture around us Our ways of meeting our needs and desires Our expectations and aspirations Our roles within the social groups and families

Some things don’t change

How our brains are hardwired

Our need for sustenance

Our desire for safety, security, self-confidence, etc.

How we age

How taste-buds work

The stages of child development

People tend to form some kind of family or social group

Some things change constantly

How we respond to the culture around us

Our ways of meeting our needs and desires

Our expectations and aspirations

Our roles within the social groups and families

Remember … We are not our customers. The more you understand your customer segments, the more competitive you can become.

Thank you! Questions? Susan Abbott Web: www.abbottresearch.com E-mail: [email_address] Blog: www.arc.typepad.com/customercrossroads Phone: 416-481-7409 or 888-244-0285