2009 market research dynamics
TRANSCRIPT
2009 Market Research Dynamics
Lessons from Across the IndustryDecember 3, 2009
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About Our Speakers
Brian KomaVP ResearchFounder of Stratagem Marketing, acquired in 2004. Earlier, in charge of global enterprise-systems marketing at Legent Corporation.
Jeffrey Henning Founder & VP StrategyCo-founder of Perseus, which was combined with WebSurveyor to form Vovici in 2006. Earlier roles as a market researcher at BIS.
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About VoviciSELECTED CUSTOMERS
KEY PARTNERS
Of the Fortune 500
Customers in over 47 countries
Million completed surveys in more than 115 different languages.
Years of industry experience, leadership and innovation
60%2,000
150 16
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Conferences
Gartner CRM, AMA MRC, ESOMAR ORC, MRA FOC, CASRO DC
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Your Webinar Requirements
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Topics You Want Covered
Analysis of results
Social media
Online communities
Actionable information
Latest trends
Affordable/DIYB2B
Qual/QuantQualitySurvey
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Three Categories of Insights to Research
Human Insights
Universal
“Unchanging”
Lifestages
Psychology
Ergonomics
Cultural Insights
Vary by culture
Change slowly
Lifestyles
Values
Macro trends
Marketing Insights
Vary by market
Change rapidly
Product category
Consumer
Channel
Source: Coca-Cola
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Aging Population
Changing Physiology
Consumer Is King
Rising Power of Women
Ethical Consumption
Top 10 Macro Trends
Crisis of Confidence
Careful Consumption
Safety & Security
Information Addiction
Information Overload
Source: Ford
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Trends in Quantitative Research
Source: Transition Strategic Corp.
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Mail Surveys
Face-to-Face or Intercepts
CAPI (Computer-Assisted Personal Interviewing)
Surveys in virtual communities (e.g. Second Life)
Hybrids (two or more quant techniques in same study)
Using panels (all kinds) for sample
Online surveys
-20%
5%5%
8%25%
29%44%45%
48%48%
58%60%61%
Net Organizations Increasing Use of Mode in 2010
n=512Source: Rockhopper Research
Please indicate the usage you anticipate for your business in 2010 compared to 2009: Increase, No Change, Decrease
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Operat-ional CRM
60%
Analytical CRM30%
Social CRM10%
Spending
Customer Relationship Management
Operat-ional CRM10%
Analytical CRM30%
Social CRM60%
Growth
Source: Gartner
“CRM is the most fruitful innovation opportunity for your company and your customers.” – Kathy Harris, Gartner VP
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Customer Experience Initiatives Beyond the Survey
Source: Gartner
Before Experience
During the Experience
After the Experience
Operational CRM
Campaign Management
Knowledge Management
Survey
Analytical CRM Propensity Mode
Real Time Next Best Action
Speech Analytics
Social CRM Forum Customer Self-Service
Media Monitoring
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State of EFM - 2009
What? Feedback hubs, central survey repositories
Why? Oversurveying & mis-surveying
Who? Vovici & ConfirmIt then 60-70 other vendors
When? Now! “Your competitors are getting better at this!”
Where? By department and across the organization. In online communities.
Source: Gartner
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Agenda
Online Communities
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Engage Partners in Innovation
Outside-In Network
Co-Development Network
Inside-Out Network
Source: Gartner
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Crowdsourcing
Source: Gartner
Innovation Jams Idea Marketplaces
“If you don't engage your customers in innovation, someone else will.”– Kathy Harris, Gartner VP
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Communities: Open vs. Closed, 1 Client vs. Many
Independent Open
Community
Multi-Client MROC
Branded Open Community
Branded MROC
Source: BrainJuicer
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From Standing Community to Project Communities
“We have a mandate at General Mills to move as much of our qualitative research online as possible.”
As a result of 22 community projects:
Focus on Discovery
Smaller communities
Shorter duration communities
Larger incentives
Geographically centered
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+ Provides easy access to consumers
+ Yields quick feedback on insights and attitudes
+ “Spontaneity allows for flexibility”
+ Targeted research
+ Viral marketing
+ Many research projects are quite small and targeted, leading to shorter, more focused questionnaires
ABC Studios Advisory Panel: Pros & Cons
– Unable to verify that members aren't reporters or competitors
– Leaks of sensitive material to the entertainment blogs and press
– Piracy of episodes posted
– Requires ongoing investment of time and money to recruit new members
– Qualitative data is voluminous and time consuming to analyze
– During off-production times need to keep members engaged
– Victim of success - get pushed for rapid turnaround
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Kitchen 2020 Co-Creation
Five week-long phases1. Problem analysis and individual idea generation
2. Idea sharing and enrichment
3. Evaluation by customer
4. Evaluation by professional
5. Selection
150 participants with unusual activitiesCreate moodboard (collage)
Picture associations
Document current frustrations
Explore scenarios
Unlike MROCs, members could see each other’s ideas but not discuss
Source: MetrixLab
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MROC Suppliers Range from Full Service to Technology Only
Internal Bandwidth
Out of Pocket CostSource: DRI
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MROC Member Activities beyond Discussions
Static ethnography
Representational images
Idea banks
Insight games
Cartoon captions
Personal diaries
Collages
Fun polls and quizzes
Team activitiesSource: DRI
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Watch Configuration Tool
Enables average user to playfully create
– 24 components
– 108 gems
Vote and comment on one another’s designs
Over 1300 configurations submitted
Extensive quantitative analysis of gems and components used
Source: HYVE AG
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10%20%30%40%50%60%70%80%
TelephoneF2F InterviewsOnlineCommunitiesFocus Groups
Australian Consumers’ Perspective on Research Methods
n=1,082Source: Colmar Brunton
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Web 1.0 Web 2.0
Survey Enjoyment
8.20 8.25
Ease of Use
8.86 8.85
Desire to Repeat
7.02 6.56
Web 1.0 Surveys vs. Web 2.0 Surveys
Rich media buttons vs. radio buttons took 20% longer to complete
Questions in 2.0 survey were 2x times more likely not to be read
36% variance between results from slide vs. from radio buttons
Source: element54
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Agenda
Social Media
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The Screen Age
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Social Media is a Rich Source of Qualitative Insights
Social Media• Open-ended comments
• Provide the Story behind the story
• Can’t extrapolate to a larger audience
Random-Sample Surveys• Closed questions • Limited response options• Can’t get the story behind
the story• Provides hard data that can
be extrapolated to a larger audience
Qualitative Research
Quantitative Research
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Blog Content Analysis
Gartner sees marginal to no ROI from its clients’ investments in blog content analysis
“It’s eye candy: management likes to see it.”
Gartner sees no strategic value in connecting customers to their social networks
In terms of concrete ROI, instead learn the language of the Voice of the Customer:
Ask more open-ended questions in surveys and use text mining on them
Use text mining on the keywords customers use in your web site’s search box
Source: Gartner
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Guidelines to Using Blogs in Market Research
Caveat: Online persona does not always reflect offline persona
Remember bloggers’ motivations and concerns about privacy and security
Recognize impact of the audience and interaction on what the blogger shares
Process
Engage by acquiring bloggers as sample
Eavesdrop to analyze online statements
Connect in order to understand context of what is being shared and to authenticate identity
Source: Gfk NOP
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Surveys to Social Media: Apples to Orange Juice
Social media's impact is disproportionate to the level of activity
The data is dirty
Brands with unique names are easier to research
Topics are not always organized to answer our questions
Social media is not representative, only directional
PricePremium OJIngredientsConfusion
New DesignReversion
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Survey Research Steps, with Social Media
Study Design: Use social media to frame hypothesis
Sample Selection: Identify potential respondents
Questionnaire Design: Learn language of respondents; develop choice lists
Fielding the Survey: Invite respondents by Twitter
Analysis: Add tweets for color commentary
Source: Vovici
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Surveys and Biometrics
MTV Networks researched ad awarenessUsed biometric vests and eye tracking
Follow-up survey for brand recall
Focused attention: 30% for TV commercials, 80% for TV programming, >95% for videogames
15-second preroll commercials had double the recall of 30-second commercials
Prerolls more effective before action games rather than cognitive games
Strategically integrating branding into the game resulted in 80% recall Source: Innerscope Research
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Agenda
Analysis & Communications
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7 Principles for Researchers to Collaborate with Executives
1. Be clear on the Essential Question
2. Lead a hypothesis flip-chart session
3. Practice smoke-jumping
4. Reveal the surprises
5. Steer clear of the squiggly-line syndrome
6. Avoid the “Alice in Wonderland” meeting
7. Make your bottom-line your top line
Source: Chris Frank
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8 Principles for Researchers to Become “Deviant” Leaders
1. Plan: Know the company’s strategy
2. Position doesn’t matter
3. Eliminate Project mentality
4. Profit: seek ways to improve the bottom line
5. Accelerate the Pace of change
6. Don’t succumb to the Pressure
7. Develop Partnerships
8. Perfection: Forget itSource: YRC Worldwide
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Overcoming Objections to B2B Research
“We already know that.”
“They just won’t get it.”
“It’s too complex.”
“It’s too small.”
“You’ll never find them.”
“They’ll never tell us that!”
“It’s way too expensive.”
Source: Strategic Spark
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Juggling Key Performance Indicators
Gartner client had 137 “key” indicatorsAs practical matter, she concentrated on 7
Unfortunately her manager cared about a different 7
No manager should have more 5-9 KPIsCan’t keep too many “balls in the air”
World record for juggling measured in hours for a few items, in catches for many items
Select KPIs with carePerformance indicators are often tracked because they can be, not because they should be
Focus on metrics that drive Life-Time Value
Source: Gartner
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Agenda
Quality
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Survey Research: Internet v. Telephone
Probability-sample Internet surveys more accurate than RDD
Probability-sample Internet surveys contain less random error
Internet-survey respondents are less susceptible to social desirability bias than telephone respondents
Internet-survey respondents are less susceptible to satisficing
Response rates are essentially uncorrelated with the accuracy of probability-sampled surveys
Opt-in Internet surveys are consistently less accurate than probability-sampled surveys
Accuracy of results of opt-in Internet surveys vary considerably across surveys and within surveys
Accuracy of results of opt-in Internet surveys vary considerably across panels
Source: Jon Krosnick
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Microsoft CMRI Embracing Six Sigma
For its research on research, the Microsoft Central Market Research Insights team has adopted Six Sigma
“We are reducing the number of defects study by study by study.”
“We averaged 12 defects per final report in a six-month period to 3 the next period down to 2 most recently."
“We spend millions of dollars that affects hundreds of millions of dollars in marketing spend that affects billions of dollars in revenue. We have to get it right.”
Source: Microsoft
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Meta-Analysis
• Most organizations fail to study and improve their decision-making process
• “We have to create a culture of auditing the decisions.”
• Identify ways to make better decisions in the future
Generally Performed
Common in Successes,
Rare in Failures
Sometimes Performed
Not Universal, but More
Common in Successes
Δ Presence in Success – Presence in Failure
% S
atis
fact
ory
Pro
ject
s
With
Bes
t Pra
ctic
e
Source: McKinseySource: Gartner
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Quality Initiatives
ISO 20252 StandardSurvey research quality
All stages
All mode
ISO 26362 StandardAccess panel
Quality Enhancement Process
Panel level
Sample level
Survey level
ESOMAR Code8 key principles
1948
E26Panel purchase FAQ
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Why Your Management Doesn’t Listen to You
Elephant in the room: Consumers often lack true awareness of their actions
Bad research perpetuates myth of consumer self-awareness
Integrate behavioral metrics into your research
With careful planning and research, challenge executives’ sacred cows
“Appointment viewing” believed by TV execs but even Sopranos viewers only watched 3.7 of 10 episodes (the high)
Source: Jack Wakshlag, Time/Warner
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Our Presenters Welcome Your Questions
Brian KomaVP Research@bkoma1-800-787-8755 x 551
Jeffrey Henning Founder & VP Strategy@[email protected] x 550 To request a demo or to
talk with a sales advisor:
1-800-787-8755
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Check Out Our Blog
http://blog.vovici.com
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Customer Momentum
Software 500 Top 10 in 2009 for growth
Existing customers drive half our growth
Over 2,000 customers, and 60% of the Fortune 500
Responses have increased 500% in the past 18 months
Value Proposition
Consistent Double-Digit Growth
About Vovici
SaaS revenue growth
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