This document summarizes Joel Rubinson's presentation on the future of consumer insights. Some key points: - Research needs to shift from discrete projects to providing a continuous flow of insights and move from validating findings to shaping thinking. - New technologies and data sources are changing the landscape of consumer insights, like social media and behavioral data. - Research must understand consumers as social beings influenced by emotion and focus on brand experiences rather than surveys. - A "research transformation" is needed to make research more visionary, impactful, and inspire organizations with insights.

1. Prepared by: Joel Rubinson, President Rubinson Partners, Inc. “Marketing and research consulting for a brave new world”E-mail: joelrubinson@gmail.comSlideshare.net/joelrubinsonOct 15, 2010The Future of Consumer Insights

2. My role here todayPresident of Rubinson Partners, Inc.Retained as ARF executive to continue to drive Research Transformation and Shopper InsightsFormer Chief Research Officer at the ARF2

3. Research Transformation JourneyNew blueprint

4. On July 15th 2008, we began a journey13 industry leaders spent a day at the ARF to discuss “listening”Advertisers: Procter, Unilever, General MillsProviders: Nielsen, TNS, Motivequest, Keller-FayMedia: ESPN, Razorfish, DigitasWithin 45 minutes, the topic shifted:“Research has lost its ability to see the big picture; to hearthe unexpected”“Surveys are torture for respondents”“Research needs to inspire; storytelling is key”“Research used to be discrete events, now there’s a continuousFlow of insights that we can tap into”4

5. Bell Curve of Product Research Spending 80%ofFundingReallocate $$$$$$ ReallocateEVALUATION&TESTINGCONSUMERFEEDBACKINNOVATION“Eighty percent of our funding goes into the evaluating and testing area in the middle of the curve and I know that at least 40% is wasted. I would like to see this money redistributed to the front end of the curve, in innovation, and at the end of the curve, responding to consumer feedback.” - Kim Dedeker, P & G

6. The current landscape85% of research leaders indicated they are either “neutral” or “dissatisfied” with the impact of marketing research in their company.P1-Q5a. How satisfied are you with the impact of marketing research throughout your company? 1 to 5 rating scale (1=very dissatisfied)

7. 7Non-believers60%50%40%30%20%10%0%C-SuiteMarketingSalesRegionFinanceHeadsResearch Has High Level Champions…60 % of those surveyed had C-Suite level advocates for research.…But “Skeptics” Throughout“Skeptics, those who either avoid using research or use it in a discretionary fashion come from all over the organization:Creative

8. Sales

9. Unit/Product Heads

10. Brand Managers

11. Channel Managers

12. Design & Development

13. CFO

14. Company President

15. Events Marketing

16. International Management

17. Marketing

18. OperationsP1-Q2a. Who are the most important champions of the marketing research department in your organization? P1-Q2b. Conversely, who are least inclined to use research even when they should? What do they do or who do they turn to instead?

19. Revisualizing research.A brand is a belief system, reinforced by a system of behaviors.

20. Research must move from point A to point BMarketing Research TodayMarketing Research TomorrowVisionary leadership

21. Courage to take a stand

22. Driving strategy

23. Demonstrated business impact

24. Answers research questions with technical proficiency

25. Sometimes discretionary

26. Inconsistent impact on strategyAre we at a “Strategic Inflection Point”, triggering a massive shift in strategy?Strategic Inflection Points represent…what happens to a business when a major change takes place in its competitive environment…due to introduction of new technologies…different regulatory environment…simply a change in the customers' values…what is key is that they require a fundamental change in business strategy. Nothing less is sufficient.Some key warning signs that hint that the change you are dealing with make a Strategic Inflection Point is when it is clear to you that all of a sudden the company or the entity that you worry about has shifted.Academy of Management, Annual MeetingAndrew S. GroveChairman of the Board, Intel CorporationSan Diego, Calif.August 9, 1998

27. Why now?Marketing concepts forever changed which changes all of the questions

28. Role of emotion and low attention processing

29. Heuristics for simple decision-making

30. People as social creatures

31. Social media

32. Biometrics

33. Massive behavioral datasetsCompeting voices for consumer insights…Listening to blogosphereDigital, shopper analyticsAlso:Customer care

34. Retail

35. Own instinctsPlanners, consultants

36. 13Lose relevance, lose leadership

37. video14

38. Research transformation leadershipSusan WagnerVP Global Strategic Insights, Johnson & Johnson Group of Consumer CoDonna GoldfarbVP Consumer and Marketing Insights, Americas, Unilever

39. The ARF Research Transformation Super-Council: LeadersThe following research and insights leaders have committed to leading the creation of the research transformation blueprint via the ARF:Co-Chairs:Donna Goldfarb (Unilever), Susan Wagner (Johnson & Johnson), Joel Rubinson (ARF)Decision-making processes/metrics:Gayle Fuguitt (General Mills)John Forsyth (McKinsey)Jim Thompson (IPSOS) Consumer-led strategies:Gloria Cox (The Cambridge Group)Jennifer Nelson (Johnson & Johnson)Todd Cunningham (MTV Networks)Walker Smith (The Futures Group) Engagement and talent:Amelia Strobel (Kraft)Ian Lewis (Cambiar)Kim Dedeker (Kantar)Richard Thorogood (Colgate-Palmolive) 16

40. Future Forecast: Trends That Will Impact Marketing2020 Vision: Trends that will Impact MarketingTechnology/digitalizationPrivacy Changing economic power balance (driven by ascent of China followed by India) More connected, more empowered consumers"Media makeover" - includes media brands becoming multimedia brands, 360 media planning & measurement, geosynchronous targetingGlocalizationThe challenges for developed marketsAging populations, Healthcare, Pensions, Government Budget CrisesThe multicultural worldSustainability

41. Technology/DigitalizationTechnology/DigitalizationThe futureDigitalization: Integration of digital technologies into everyday life by the digitization of everything that can be digitized. Clouds

42. Mobile

43. Social

44. Real time information and marketing fuse togetherA digital river of informationfed by numerous tributaries

45. Reflecting changing societal values, lifestyle trends, and brand engagement

46. Mostly naturally occurring, on-going 24/7

47. Some tributaries are “man-made” and proprietary like a brand tracker

48. Start research with river rather than projects19

49. Changing Economic Power BalanceSource: PriceWaterHouseCoopers January 2010 Forecast

50. The Challenges for Developed MarketsAging Populations, Healthcare, Pensions, Government Budget Crises Between 2010 and 2050, U.S. population projected to grow from 310 million to 439 million (increase of 42%).

51. One in five US residents will be aged 65 and older in 2030. GlocalizationThe dilemma is how to manage brands globally while activating them locallyCulturally relevantReflect local retailer practices and footprintsFrienemy relationship between manufacturers and retailers22

52. Our mission“Inspiring better business futures by listening, learning, and translating humans and markets to bring them to life, in order to anticipate and give knowledge to the enterprise.”23

53. Transforming your organizationLearning organizations: Learning organizations always have their ear(s) to the ground. They are open minded, and their doors are open to new thinking, new trends, and new ideas. They intentionally seek out “newness” and find ways to democratize what is new, make it understood and acceptable, and make it available. The people they seek to connect with are their icons.People on their terms

54. 25

55. Marketing Research CreedUnderstand the business. Create value from insights by getting to the “now what” and be accountable for the business resultBe a thought leader. You must shape thinking not just validate. Tell the marketing team something they didn’t know. Prove your point and show the way. You must be a courageous risk-taker.Bring the human into all marketing decision-making. Be the voice that connects the brand and consumer.Be charismatic. Infuse with theatre to be heard and to become unforgettableBe future focused. If you prove your foresight, research will be viewed as an investment rather than an expense which is critical.Stay grounded. Our professional standards, principles, and processes for generating grounded insights set us apartBecome an agent of change. Embrace new marketing ideas, new research tools, and become an effective activist for cultural change in the organization.26

56. The path forwardThe vision of where we want to be communicated at the Oct 28, 2010 one day ARF conference in NY

57. Metrics of the transformed organization (end of year)

58. Insights framework (Nov)

59. C-suite interviews (Nov)

60. 2020 vision (big changes, digitalization, the river) (Dec)

61. Engagement and talent; buyer implications, supplier implications, talent implications (Dec)

62. Roadblocks and strategies for circumventing (Nov-Dec)

63. Reanalysis of Ogilvy winners

64. JAR article

65. Synthesis into white papers: first quarter 2011, timed for Rethink27