Increasing the ROI of Consumer Insights
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This document discusses the importance of activating insights and increasing their return on investment (ROI). It highlights that while marketers spend billions on research, there is no correlation found between spending and quality of insights. Through interviews and surveys, the authors found that while marketers believe they spend enough on insights, they tend to forget them and insights do not always change business practices. The document then provides exercises and frameworks to help insights flow through organizations by seeding, activating, collaborating and harvesting insights. It introduces the concept of the "Insight Activation Studio" to facilitate sharing observations and turning insights into habits within companies.
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Increasing the ROI of Consumer Insights
- 1. INCREASING THE ROI OF INSIGHTS Anouk Willems & Tom De Ruyck
- 2. Hi! I’m Tom Managing Partner & Ambassador Insight Activation Studios I’m Anouk Head of Insight Activation Studios 222
- 4. 444
- 5. 20 talks with marketers and insights managers MR Impact Research survey with 185 marketers and insights managers
- 6. BELIEVES THEY SPEND ENOUGH ON RESEARCH* 28% ONLY YET, NO CORRELATION IS FOUND BETWEEN $ AND QUALITY OF INSIGHT *BCG study (2009) The consumer’s voice, can you hear it?
- 7. $ 43.000.000.000 | THE INSIGHT ACTIVATION studio | @ANOUKW1
- 8. John Wanamaker “Half of the money I spend on advertising is wasted: the trouble is, I don’t know which half”
- 9. IT’S A CASINO WORLD…
- 13. WHAT DOES IMPACT MEAN? | THE INSIGHT ACTIVATION studio | @ANOUKW1 EXERCISE #1
- 15. Internal
- 16. Internal
- 17. Internal
- 18. ‘infotainment’ IS NOT THE BIG LEAP FORWARD
- 19. WHAT IS THE POWER OF AN INSIGHT? HOW TO LET INSIGHTS FLOW? HOW TO MAKE IT A HABIT? “These insights are interesting, but we tend to forget them. It’s not in our routines” “Interesting finding…but this insights will not change my business?” “I will share these insights with other teams as well, so they are up to date”
- 20. EXERCISE #2WHAT IS NOT AN INSIGHT?
- 22. Insight ≠ (big) data
- 23. Insights ≠ ideas 2005 2013
- 27. A fresh, new way of looking at things Aha!
- 29. An insight cannot be neutral: I want to change!
- 31. Relevance A good insight is recognizable & real to a consumer. Freshness A good insight is a fresh way of looking at things. Emotion A good insight creates an emotional desire to change. In-sight |’in.sit| Key to success A good insight creates the foundation for actionable marketing decisions.
- 32. The brand behind... When I travel I want to experience my trip through the eyes of a local and get to places where (almost) no hotels are, but I do not want to spend too much money. It would be great if I could really experience my holiday in a unique place but in an affordable way
- 34. The brand behind... When I travel I want to experience my trip through the eyes of a local and get to places where (almost) no hotels are, but I do not want to spend too much money. It would be great if I could really experience my holiday in a unique place but in an affordable way Relevance Freshness Emotion
- 35. 35
- 36. “When your EYES are looking at the company, your ASS is facing the consumer.” 36
- 37. 37
- 38. CONSUMER & SHOPPER DRIVEN TRADE & FACTORY DRIVEN ONE CONSUMER CENTRIC LANGUAGE NO COMMON LANGUAGE ONE ENGAGED COMMUNITY SHARING BEST PRACTICES SILOS ONE INSIGHT FORMULA & ONE SET OF TOOLS DIVERSITY IN KNOWLEDGE CONTENT & QUALITY TODAY TOMORROW
- 39. Break
- 40. WHAT IS THE POWER OF AN INSIGHT? HOW TO LET INSIGHTS FLOW? HOW TO MAKE IT A HABIT?
- 41. 1. MENTAL :: The mental state of operation in which a person performing an activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process of the activity. 2. PHYSICAL :: to move in a continuous and smooth way. 41 ‘FLOW’ˈflō
- 42. 4 BUILDING BLOCKS TO LET INSIGHTS FLOW SEED ACTIVATECOLLABORATE Work together to shape outcomes Spreading new insights through the organization Trigger stakeholders to interact with insights HARVEST Collecting insights we already know
- 43. EXERCISE #3 WHAT DOES THE LIFE OF AN INSIGHT LOOK LIKE?
- 46. #HARVEST #LIVE #PROJECT #CATEGORY #ARCHIVE USING INSIGHTS IN THE RESEARCH PROCESS
- 47. THE INSIGHT ACTIVATION STUDIO INTRODUCING
- 48. INSPIRATION WALL INSPIRATION TILE ADD NEW TILE HOW IT WORKS
- 49. START FROM INSIGHTS ADD YOUR OBSERVATIONS & IDEAS
- 51. STRATEGIZE AS A CONTENT MARKETER
- 52. MIX THE LEVEL OF INTENSITY & ATTENTION Updates: Pins of consumer inspiration (e.g. a consumer story) Projects: Deep dive study on specific consumer question (e.g. customer journey) Campaigns: Communication of insights around a certain theme, cross projects (e.g. immersion week)
- 54. WHAT IS THE POWER OF AN INSIGHT? HOW TO LET INSIGHTS FLOW? HOW TO MAKE IT A HABIT?
- 56. WHY? MOTIVATED ENOUGH? #MOTOR IF..THEN.. ROADBLOCKS? TOOLS? #ENVIRONMENT WHEN? AFTER I…I WILL.. #TRIGGER HOW+? POSITIVE EMOTION? #REINFORCEMENT HOW? STEP 1, STEP 2, STEP 3 EASY ENOUGH? #ROUTINE
- 57. WHY? “I want to share my observations and contribute to knowledge and ideas within the company” IF..THEN.. If I have my morning coffee, then I catch-up on my social media feeds WHEN? After I’ve read something interesting that illustrates (new or existing) insights, I will share it with my colleagues HOW+? Colleagues reply to my inspiration message, add their thoughts and add relevant people to the conversation. HOW? I copy the link to the article, and add my comments before I send it
- 59. DEVICE AGNOSTIC | SNAPPY & SIMPLE | NOTIFICATIONS | EMAIL TRIGGERS | COLLEAGUE INVITATIONS | …. FACILITATE YOUR HABIT CREATION
- 61. Tom@insites.eu Managing Partner & Ambassador Insight Activation Studios Anouk@insites.eu Head of Insight Activation Studios THANK YOU!
Editor's Notes
- Gemeenschappelijk Nieuwe stijl kwali onderzoek > CCB, communities uitgerold Gebeurd te weinig met die inzichten Frustratie > passie voor de ROI van consumer insights Workshop maar ook een product
- Wie zijn jullie? + verwacht v workshop Onze frustratie van marktonderzoek
- Niet alleen > industry wide
- STRANDBAL
- As will be clear from what will follow, insights are much more than just observations. Seeing is not enough, feeling is essential! What that feeling refers to, will be covered later in the presentation.
- An insight goes beyond the data that are supporting it. We love to talk about big data, but we have difficulties in generating strong insights from them. To have great insights we need to clearly understand the motivations and emotions behind the data. We need to get to unmet needs, aspirations or frictions the consume is motivated to have solved.
- An insight is is also not the same like an idea. One insight can be the base for multiple innovations and brand activations. Take for example Dove. As many of you know the consumer insight behind Dove is ‘real beauty’. They had one of the most successful campaigns in 2008 when they used real women in their ads, conveying a relevant message to women all around the world. Today, the same insight is still used today but in a different way, using just another idea to execute the insight. People are asked to describe their own appearance to a sketcher who is not able to see them. A second sketch is drawn based on the decription by somebody else. When comparing the two sketches, the sketch of the second person is more beautiful. On next page, their new 2015 execution……same strong insight, new- powerful- idea!
- So if an insight does not equal data nor ideas ... What is it? A real insight is a unique combination of 3 key ingredients that unlock something good... Let’s look at those separately
- First, an insight should be recognizable and relevant to the consumer, really tapping into daily life. It triggers the reaction from consumers that you really understand them, even to the extent that you might understand them better than they understand thelmselves. It is something that when you hear it, you realize that this is true and it resonates with you. People identify with a certain situation or context, whether that is driven by personal identification or by peer identification with aspirational others.
- It is the insight behind the brand Oreo. Whenever people eat an Oreo, they like to eat the middle first and save the chocolate cookie outside for last. They often use it in advertising and people love it because they feel that they still came up with the idea first and that aedvertising is just a way of reminding them of this. Twist,lick, dunk
- Second, an insight brings to the surface something that was subconciously there. In that respect, an insight is a bit like a refrigerator: it is only when you open a refrigerator, that you see the light. An insight encovers a latent need and often you only realize that it is true the moment you hear it. In this respect, an insight represents a fresh and new way of looking at things. This includes both discovering something completely new as uncovering an existing reality in a new way.
- A good example here is Dyson, changing the business model within the vacuum cleaner industry. They always thought that people did not want to see the dirt or dust … but in fact the opposite was true. They found that consumers who are cleaning wanted to see the effect of their efforts. The success behind Dyson is not only that it is a vacuum cleaner without a dust bag. More importantly is that it has a transparent container to collect the dirt. This insight changed the vacuum cleaner industry. insight can lead to disruptive product or service innovation
- Third, an insight cannot be neutral and it should drive the willingness to change something. Is there a problem that consumers want to solve? Do they have a desire for something? Are they excited about a potential solution? Caterpillar to butterfly
- A good insight is recognizable & real to a consumer. Relevance can be driven by personal identification or by peer identification taps into daily life Which is when an insight becomes ‘contagious’. A good insight is a fresh way of looking at things. Either discovering something new and looking at an existing reality in a new way. You realize it’s true the moment you hear it. A good insight creates an emotional desire to change. It can be a friction or problem consumers want to solve, or an aspiration or desire. Consumers should be excited about its potential.
- But what exactly are we talking about when we are talking about ‘an insight’. Let’ start with some examples... Let me see if you can help me find the brand or product behind this insight....
- For property owners: want to make some extra money for the extra’s in their life; want to learn English; want to help other people Brings people together More than 10 million nights booked since 2008 After hurricane Sandy (2012 jamaica, bahamas, haiti, eastcoast Us/Canada), they had more than 1400 rooms available for free to people who were displaced (moving faster than the government)
- Yes, it does for most of us I guess... Because ultimately it is the target group that can only truly assess this
- Who invented the digital camera? Ironically, Kodak did – or, rather, a company engineer called Steve Sasson, who put together a toaster-sized contraption that could save images using electronic circuits. The images were transferred onto a tape cassette and were viewable by attaching the camera to a TV screen, a process that took 23 seconds. It was an astonishing achievement. And it happened in 1975, long before the digital age. Mr Sasson and his colleagues were met with blank faces when they unveiled their device to Kodak's bosses. Even he didn't full see its potential. "It is funny now to look back on this project and realise that we were not really thinking of this as the world's first digital camera," Mr Sasson was later to write on a company blog. For Kodak's leaders, going digital meant killing film, smashing the company's golden egg to make way for the new. Mr Sasson saw in hindsight that he had not exactly won them over when he unveiled his toy: "In what has got to be one of the most insensitive choices of demonstration titles ever, we called it 'Film-less Photography'. Talk about warming up your audience!"
- However, there is another stream of thought as well, focusing on customers first. There is a real danger being too focused on your company’s inside. And there is ample evidence that treating customers as the ultimate heroes pays off. According to Bain & Company, a 5% increase in customer retention can increase profits by 25% to 95%. Brands at the top of Forrester’s Customer Experience Index show far better stock market and revenue performance than customer experience laggards. At Amazon, Jeff Bezos underlines the importance of customers by bringing an empty chair into meetings so that people would be forced to think about the crucial participant who wasn’t in the room: the customer. Also Paul Polman, CEO of Unilever, thinks in a similar way. Within Unilever, consumers are referred to as ‘the boss’.
- Early 2000, Lego was in trouble. They were facing huge losses. They lost connection with the consumer. They realized that were are not in the business of technologies or even toys, but in the business of play. To remind their employees, they drastically changed their company culture and even office. Their CMO wanted everybody to connect as much as possible with their inner child because, according to him, they are the only honest people except for drunk people. Today`s offices are not only accessible for designers and children: as an employee you are encouraged to bring your child to work. Everywhere, yo will find hotspots with games. People are sitting in oversized chairs to remind them how it feels to be a child. Want a visual image for repeatability? Think of LEGO bricks. But the company’s strategy in the 1980s and 90s strayed from this solid foundation. "LEGO Group entered theme parks, clothing, television programming, watches, publications, and learning labs,” says CEO Jørgen Vig Knudstorp, who took over in 2004. “As a result, the company entered a 10-year period of declining performance." LEGO’s margins dropped from 15% in 1993 to negative 28% in 2004. The company declined in value at an average rate of €300,000 a day. The company built robust learning systems to ensure that its model continued to adapt and stay relevant to customers. For example: LEGO collects Net Promoter® scores at each customer touch point (shops, online, consumer services, etc.) and for each major product category. It distributes the scores throughout the company every month, and employees follow up on negative responses. Scores have improved 26% since 2005. The Kids Inner Circle is an online community of five thousand children, by invitation only, who love to interact with LEGO concerning new products in process. A “quick poll” system helps LEGO learn customers’ reactions to specific themes, features and stories as LEGO Group works on new products. 135 company-sponsored LEGO shows have drawn 2.6 million visitors and spawned user groups totaling 65,000 members. The company launched more than 80 cocreation projects with these groups in 2009. Thanks to its renewed model, LEGO’s core business has snapped back into place. In 2009, net profits increased 63% and pretax profit margin rose to 24%—a far cry from the enormous losses of the previous decade. Meanwhile, revenues grew 22% while industry sales were flat, pushing up LEGO’s global market share. Beyond the financial results lie a more customer-oriented culture, a shortened distance between the CEO and the front line, a 50% faster product development time and an outpouring of innovative products such as a virtual LEGO world and a Disney licensing agreement to create Toy Story LEGO sets. When Jorgen Vig Knudstorp came in as Lego CEO in 2004, the company was struggling to give consumers what they wanted and effectively manage costs. Knudstorp finally brought fiscal responsibility to the Danish toy maker. He also tried something novel — handing over creative direction to the core fans of the brand. After consolidation and streamlining, Knudstorp led a charge to put creative control into the hands of hardcore fans of the brand rather than in those of top designers who had skills but lacked a real understanding of Lego's history. The company held its first designer recruitment workshop in Sept. 2006. Writes Stafford: I was one of the 11 designers hired at that time, new managers were in place in the Design building, all developed inside the company, these guys loved the product, they knew the customers as they had grown up playing with LEGO and they had ideas that had been restrained for years. They hired several kid focused design graduates and a few AFOLs (adult fans of LEGO), of which I was one. Read more: http://www.businessinsider.com/how-lego-made-a-huge-turnaround-2014-2#ixzz3UvWq4Pki Read more: http://www.businessinsider.com/how-lego-made-a-huge-turnaround-2014-2#ixzz3UvWJHTJG http://www.businessinsider.com/how-lego-made-a-huge-turnaround-2014-2?IR=T
- Orangina Schweppes was looking for a way to become more consumer centic. Make decisions driven by what consumer wants, not what we can produce Speak one language & Use one definition Act as one team instead of different silos, to share best practices Asked us to help them first to better understand what insights are
- HOW DOES THE LIFEJOURNEY OF AN INSIGHT LOOK LIKE?
- Hoe gaan we ervoor zorgen dat we co-created, always accessible, en acties stimuleren Piece of technology Waarom co-created, always accessible, action trigger Walls, in fasen research process