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Can 21st Century Marketers Count on Researchfor Insight and Intelligence?
INNOVATING INSIGHTS:
Jennifer Hanson
Sequoia Partners
Inventors of the realsight insights method
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Consumer Understanding = Success
Measurable/Projectable Insights
Expectations/Motivations
Business Application
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Cycle of Failure
INSIGHTS & IDEAS
IN MARKETFAILURES
REDUCED
BUDGETS
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The Research Industry: Aiding and Abetting
ConsolidationEconomies of Scale vs. Useful Information
Reliance on Historical Databases
Benchmarking against old ideas
Underutilizing Technology
Same information, just faster and cheaper
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Lack of Innovation for 21st Century Marketers
Same methods, same data, same results:
Standard questions
Standard industry data
Qualitative tunnel vision
Professional respondents
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The Groundhog in the Room
20th century insights methods simply DO NOT WORK.
Surveys
Focus Groups
Short-term observations
DAY ONE DAY THREEDAY TWO
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HOW DO WE INVEST
IN OUR BUSINESS?
Lack of understanding about consumers
Brands losing competitive edgeInefficient spending
REDUCED ROI AND SHAREHOLDER VALUE
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Partner with the Consumer
Weve pushed them away Weve ignored them
We lose their loyalty
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Understand Satisfaction
being satisfied means consumers have found a solution to meet their
expectations, even if it requires a system of many inefficient steps to
get to the end goal
this is why satisfaction is proven to explain only 8% of repeat usage.
Consumers are satisfied 75-85% of the time with any product or service
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IPOD Tivo Wii
The Innovation
The System
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Consumers Have Changed The Rules
Blurring of snacks and meals
snacks are now meals
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Consumers Have Changed The Rules
Blurring of medicine and nutrition
nutrition is now medicine
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Consumers Have Changed The Rules
Blurring of media and entertainment
media is now entertainment
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ninety-five percent of thinking takes place in the unconscious mind
Jerome Kagan, Surprise, Uncertainty and Mental Structures
rather than guiding or controlling behavior, consciousness seems
mainly to make sense of behavior after it is executed.George Lowenstein, The Creative Destruction of Decision Research
Understanding Consumers Starts in their Heads
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What Needs to Change
Focus on the broader context of decisions, NOT on the product
Focus on the reasons behind repeat usage vs. initial purchase
Accept the consumers perspective, even if it differs from our own
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The Research Challenge
Provide Quantitative Insights - Measurable/Projectable
Provide Qualitative Insights - Expectations/Motivations
Provide Strategic Guidance - Business Applications
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The 21st Century Solution: realsight insights method
Video Cameras,
Audio Recordings,
Written Diaries,
Forums, Surveys
Statistical
Analysis
of Text and Videos
SuccessfulBrandGrowth
Extended
Engagement
via Community
Qualitative
Analysis
of Behavior Using
Academic Theories
An observational technology system that delivers more accurate,
complete and actionable ways to grow brands:
1. more complete information about consumer decisions
2. deeper understanding of expectations and motivations
3. new ways to deliver competitive advantages
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How it works
Video cameras capture incidents of usein daily life for 3-4 weeks
Quantify behavior
Comparisons with online diary
Proprietary analysis using unique applicationof statistical, sociological, psychological and
anthropological tools.
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What it uncovers
Archetypal Consumer Experiences
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How it is applied
What is convenience in the morning?
Most companies focus on the rational grab n go definition of convenience.
We discovered 3 common behavioral patterns that represented different aspects of
convenience in the morning.
One of the three, multi-tasking is a larger and more emotionally rich consumer opportunity.
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How it is applied
What is the best entry point into snacking with my new product idea?
Restructured the category of the new product idea to a consumer defined marketplace,
transformed a $2B fragmented category with a single product format and no clear point of
entry into a $41B consumer defined market.
The consumer-defined market resulted in discovering a $2B market for the existing product
idea and an emerging $3B snack market previously ignored for the long-term pipeline.
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WHAT MAKES IT DIFFERENT
Focus on what people DO, not what they SAY
Quantifiable data with qualitative understanding
Demonstrates and validates opportunities and ideas
CONSUMERS SHOW YOU WHERE TO GO AND HOW TO GET THERE
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SAY SAY & DO
from to
low
fast
low to average
SPEED
COST
ACCURACY high
average
average
Extended data collection:
1. Observations as they occur, 3+ days2. In person interviews
CHANGES
Multiple work streams:
1. Interview + observation
2. Real-time analysis
3. Multimedia reporting
Superior results:
1. More complete view of consumers
2. Deeper understanding of motivations
3. Better ideas and investment decisions
A positive shift in the marketplace: Improved Quality & Accuracy
lowQUALITY high
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Cycle of Success
BETTER
INSIGHTS & IDEAS
IN MARKETSUCCESS
INCREASED
BUDGETS
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There is always risk
GARBAGE IN, GARBAGE OUT!
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The realsight insights method has uncovered validated consumer defined ways to...
Create emotional messages tied to product experiences
Strengthen brand equity at purchase and usage
Source volume from brands outside traditional category definitions
Target the multiple dimensions of common need states
Grow through redefining channels of purchase
Tap into habitual and auto pilot choices often unreported
Identify ideas from consumer work-arounds and trade-offs
Maximize portfolio growth
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Anyone can use it
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S i P t 2010 C fid ti l
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Marketing success can only come from 21st Century research practices
Bridge the knowledge gap between consumers and corporations
Focus on the broader context of decisions, NOT on the product
Focus on what people DO, not what they SAY
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We help our clients focus on the right opportunities that work for
consumers everyday lives from the start, saving precious time, money
and becoming more profitable in the end.
Brand Growth Through
Consumer Experiences
Sequoia PartnersP.O. Box 235, Pequabuck, CT 06781
(888) 316-1723, [email protected]
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