A good idea may move and inspire people, but it takes more to make them act. Moving to a new situation requires the new situation to be better than the old one, but also that consumers' concerns are addressed. That's because moving to the new situation requires action, and it is far easier to do nothing than to take the risk. How to overcome this inertia?
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SKIM Webinar "How to overcome Inertia"
1. How to overcome Inertia
Robin de Rooij
Margreet Hanemaaijer
Senior Project Manager
Today’s webinar host
Telecom, Finance & Durables
SKIM Webinar | January 26, 2012
2. My product is great. Why don’t people buy it?
What prevents them from acting?
2
3. Overcoming inertia is about a balancing act
• Triggers • Barriers
• Aspects of the product and • Doubts or concerns that
its use that cause people to people may have about the
be excited about it and product and stops them
cause them to act from acting
3 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
4. To help overcome inertia, we work with different types of
communication
True motivators Reassurances
• Motivate consumers to purchase • Help consumers to overcome
the product barriers and doubts
• Represent new news • E.g., endorsement claims, claims
• E.g., claims expressing the true of no side effects or adverse
promise effects
4 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
5. To capture such trade-offs in market research,
an interview procedure mimics a conversation
between the brand and the consumer
5
6. SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
7. Space View
example
http://youtu.be/V_3iMXKfF00
7 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
8. Step by step, we learn more about why a consumer wants
a product or not
And a consumer will only buy if all requirements are met
Interest Is the consumer interested in the product concept?
Are the communicated benefits compelling and
Benefits relevant?
What are the doubts preventing the consumer from
Doubts acting, if any?
Are reassurances powerful enough to overcome the
Reassurances doubts of the individual?
Is price a barrier to the consumer, what is a
Price consumer’s reference point?
SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
9. At every intersection, a product can fail to convince
SOLD!
Willing to pay
the price?
Overcome the
Not reached
doubts?
Like the
Not reached
benefits?
Interested? Not reached
Not reached
9 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
10. Based on this insight, SKIM has developed the
integrated Triggers & Barriers approach
10
11. In Triggers & Barriers, we use an integrated approach to
maximize the Reach of a product
11 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
12. Performing a Triggers & Barriers study
• Performing a study requires a good understanding of the market
• What are relevant triggers?
• What are relevant barriers?
• How can these be addressed?
• This is an integrated solution to understand reach. So if one part is not
accurate enough, overall results will suffer
• In case you are unsure what the main Triggers & Barriers are in the market
you are operating in, we recommend performing qualitative research first to
obtain this understanding
12 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
14. For prospects to be persuaded, all criteria must be met
Mr. A Mrs. B Mr. C
Interest Concept exposure
Positive triggers, e.g.,
Benefits adventurous, unique
Reassurances, e.g., certified
Reassurances safety, no harmful side-effects
Price Willingness to pay € 70,000
Persuaded Persuaded or not
14 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
15. What do you think?
• Which of the following Triggers would motivate you
most to buy a ticket for Space View?
• Which of the following Barriers would stop you from
buying a ticket for Space View?
15 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
16. For each barrier, we have one or more predefined
reassurances
Barriers Reassurances
• Safety – Crashing • Safer than most airlines due to proven NASA
technology and safety standards
• Safety - Health problems • Weightlessness does not cause
health problems unless exposed for
extended period of time (months)
• Physical Discomfort • Launch and landing are no more
uncomfortable than a roller coaster ride
• Limited visibility • 33% of earth surface covered in clouds, but
you will always have a magnificent view
18 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
17. To what extent can the proposed reassurances take away
barriers and why?
Safety - Crashing 19% 29% 10% 24% 14%
Safety - Health problems 11% 17% 6% 14% 8%
Physical Discomfort 7% 11% 9% 6% Definitely
Probably
May or may not
Limited visibility 6% 10% 8% 5%
Probably not
Definitely not
19 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
18. In many cases, the absence of brand can also be
considered a doubt
Barrier Reassurance
• I’m afraid the product or • If the product or service is
service is offered by an offered by …, I will trust it
untrustworthy brand • This could be multiple or NO
brands.
55% 45%
35% 20%
Do not trust unless NASA KLM KLM - NASA
20 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
19. With an integrated approach, we put it all into
perspective
• Strength of Triggers & Barriers
• Reassuring/ addressing these barriers
• Added value of multiple communication messages
21 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
20. This allows us to understand the total Reach based on a
communication strategy
Message 1 Message 2 Message 3 Total Reach
Benefit 1 Reassurance 1 Reassurance 2 64%
Benefit 1 Reassurance 1 45%
Benefit 1 12%
• Some people do not have strong doubts or barriers, they can be reached by just focusing
communication on a relevant benefit, but this is generally a small group
• Most consumers have strong doubts and need to be reassured, multiple reassurances
allows the brand to reach more consumers
22
SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
21. TURF analysis allows us to discover an optimal number of
messages to communicate
This does not yet take into account limited amount of space for
communication
100%
Total
Reach 80%
60% Total Reach
based on
40% Triggers &
Barriers
20%
0% Number of messages
1 2 3 4 5 6 7 communicated
23 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
22. Finally, we measure purchase likelihood at a number of
price levels
Purchase Revenue
likelihood measure
100% € 35 mln
€ 30
80%
€ 25
60% € 20
40% € 15
€ 10
20%
€5
0% €0
€ 50,000 € 70,000 € 90,000 € 110,000
Purchase Likelihood (%) Revenue
24 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
23. So in the end we can…
• Help you to overcome inertia and successfully launch your product by
identifying a balanced mix of messages that maximizes action.
• Optimize Reach and Revenues, identifying the best combination of
communication and pricing to target those willing to pay
• Strategies can be targeted to those most likely to take action, because
overcoming barriers is harder for some people than for others
25 SKIM Webinar | January 26, 2012 | “How to overcome Inertia” | Robin de Rooij
25. Go to www.skimgroup.com/webinar-inertia
for today’s presentation slides and more!
Robin de Rooij Margreet Hanemaaijer
r.derooij@skimgroup.com m.hanemaaijer@skimgroup.com
+31 10 282 3525 +31 10 282 3514
Find out about our next webinar at skimgroup.com/join-our-marketing-webinars.