Navigating The New Insights Landscape
Simon Chadwick, Managing Partner, Cambiar; Chairperson, Insights Association
- Change is here and the industry is in the midst of the sot rapid transformation it has every seen
- Most conferences talk about how technology has pushed the change forward. Tech is the enabler. An amazing enabler. Let’s us do the things we’ve done before in an affordable faster way.
- Clients are pushing the change. CLients dictate what our industry looks like.
- Decades ago, major agencies spawned new agencies as people left and set up their own agencies in an entrepreneurial way, there were few barriers to entry, you just needed a new idea or way of thinking, or they got a first follower. Today’s being names came up that way.
- Now clients must do far more with far less. People used to make their money from annuity income – trackers, A&U studies, big studies, big clients, a with big relationships. You could count on the money coming through the door. However, those are the areas that clients are reducing or dropping. Can’t count on this money now.
- Clients want to spend more on data integration, analystics, digital ad optimization, customer journey, path to purchase, most of which demand tech and we must learn those. These technologies belong to people who seem to be outside our industry.
- Collection of data, creating insights form the data, translate that into business decisions, supporting those business decisions – the four core business areas of research
- Our core business is incredibly fragmented, quant, qual, panel, DIY, mobile, communities, ethnography, mystery shopping, mobservational, etc
- Half of research suppliers did not exist ten years ago, this is incredible, it is due to tech.
- Funded by 14 billion in new capital, much of it for big data platforms in 2012. Gave way to social media, then web, then mobile analytics, and now predictive. Huge wave shifts on a yearly basis.
- Private equity is now funding much of these, safe, solid, can be grown. They are concerned with growing the companies.
- Large enterprises are being bought to consolidate and add to, and create larger enterprises that they can take to public markets.
- Now we have public, private, venture capital, private equity, and corporate companies.
- Now it’s an uneven playing field with a huge amount of money. Our industry is not used to this. You wouldn’t realize our industry have tons of cash but we do.
- BIG research acquires innovation and consolidates. Big analytics is organic innovation and consolidation. Small analytics is top line growth and survival. Automation is share growth, disruption, and exit planning. New MR is gaining niche acceptance, survive by being clever. Small MR is like with like mergers, and partnerships.
- [he encourages us to attend the qualtrics concert] Qualtrics is like a Star Trek conventions is massive fans
- This all affects how you reward people, how you innovate, and what your ultimate goals are. You should know about your competitors and vendors work.
- Shifting revenue mix matters to associations. Pool of members is shrinking. Pool of potential members is growing. Associations must expand the tent.
- Insights association has 9 separate segments that need to be addressed. Voice of client must be heard loud by the association. They still need to meet client needs. Chapters are vital because they allow us to deliver cross education and networking we need.
- Tech and researchers need to cross education – do analytics companies understand th ended for associations, the benefits we bring them. Probably they don’t until a problem with security or privacy happens.
- What does education look like? How do we education VC and PE on industry issues. How does political cliemate of your own and other countries affect industry?
… Live blogging from downtown Toronto…
Future Trends in the Industry
Simon Chadwick, Managing Partner of Cambiar and Editor-in-chief of Research World, ESOMAR and author of the Future Trends Annual Report (Simon is presenting from the Washington airport as his flight was delayed. Tech problems? No way!)
- Driving forces of change – economic power balance, connected empowered consumers, technology, media makeover/fragmenting
- Communispace? Crowdsourcing? Neuroscience? SurveyMonkey? Who/what were these merely ten years ago?
- 1.2 billion people watched the cricket finals last year, digitally or otherwise connected. Rise of a global middle class which changes marketing and research expenditures. Shift away from major markets and towards emerging markets
- Europe is a crisis of demographics, not enough children. It’s not a debt crisis. This impacts marketing and research also.
- Winds of change
- more, faster, for less: affects the types of research companies will do and with whom they will do it, e.g., CSAT
- new methods, better processes
- river of information, big data: streaming real time data, CRM, transactional
- growth of the global middle class
- new talent for a new age
- 60% of client research VPs expect major transformation by 2020, of whom 70% think it will be evident in 2015. Not incremental but rather a revolution. Companies like cocacola, microsoft, GM, P&G C-suite feel this way.
- If you don’t like change, you’ll like irrelevance a whole lot less. Joe Tripolie – Coca-Cola
- Huge thought partner gap – clients want thought partners but feel they aren’t getting that. 92% of clients want it, 37% are getting it.
- Vendors feel like order takers and not being treated as consultants and advisors. Like they don’t have access to the business knowledge.
- Research must create business impact, tell a story and take a stand.
- Two thirds expect a non-traditional leader of the research industry by 2020, not a Kantar, Neilsen, or GFK
- 27% of clients expect google to be research leaders by 2020
- 40% of research departments feel they will be marginalized by new sources of information
- We are doing more: embracing change, innovation, data synthesis, non-traditional approaches, story-telling, social media listening
- We are doing less: being brought in too late or treated as order takers
- What is hot: web analytics, DIY, proprietary panels, digital qual, social media listening, MROCs, emotion measurement, mobile
- What is NOT hot: prediction research, behavioural economics, gamification, eye tracking, neuroscience, virtual shopping
- 60% of clients say DIY will replace much standardized research by 2020
- Full service agencies have put out the welcome mat to their competition – ignored market niches, disruptive technologies.
- It appears agencies aren’t reading their clients well, agencies are ignoring red flags. But it’s not too late.
- We need three types of people:
- management consultants (we all cringe) in the senior research positions, they talk the language of the C-suite;
- polymaths, people who are experts in many different areas, technology, synthesis, different data, qual and quant
- specialists: feed data to the polymaths, just one technology, just one type of analytics
- If you want to be rich, go into analytics
- The four toughest questions you must ask #MRX (lovestats.wordpress.com)
- 11 signs that you don’t have a research objective #MRX (lovestats.wordpress.com)
Welcome to this series of live blogs from the American Marketing Association’s Research & Strategy Summit in Las Vegas. Any errors, omissions, or silly side comments are my own.
Ian Lewis, Director, Research Impact Consulting, Cambiar LLC
- Fewer than 4 in 10 client researchers said they are thought partners
- Why isn’t everyone buying into short presentations? This is what CEOs want
- Why don’t clients want closer partnerships with agencies” Agenciees want it, clients less so
- Agencies – I never know the whole picture. How can I deliver insights that have business impact?
- Corporate researcher – I get 80 page PPTs when I want insights that solve problems. Why should I invite you in?
- Corporate researchers – You bring me in too late. I need a seat at the table to be more effective.
- Top management – I get data dumps when I want insights that solve problems. Why should I invite you in?
- Clients are much more into integrating innovative research tools than agencies, e.g., MROCs, emotion measurement, new qual.
- Client adoption is slower for neuroscience and biometrics, but it’s still more than among agencies
- Data synthesis focuses on traditional sources like surveys, quant, qual.
- Big data is a potential tsunami that will wash over everything.
- Who do you believe more? 1000 people who answered a boring 20 minute survey, or millions of records of live actual web behaviour?
- Talent types
- management consultants – more toward strategic, future leaders of consumer insights functions
- polymaths – client researchers and full service research partners. good at many different things.
- specialists – insurgent research and technology companies
- 2012 training to focus on power skills – innovative research methods, insights, storytelling, leadership, consulting, synthesis, influencing, integrating, advanced analytics
- What should corporate researcher leaders do? Become thought partners. Leverage the expanding toolkit.
- What should agencies do? Reassess participation strategy, where to compete. And operating strategy, how to compete. And talent. Are you a deep insight partnership? Are you a specialist company? Are you a data provider?
- What does the MR profession need? Must define, attract, educate, and hire the right talent.
- Which half of my digital marketing is working: David Rogers #AMAresearch #MRX (lovestats.wordpress.com)
- Media Consumption from the 2012 London Olympics: Wurtzel from NBC, and Fulgoni from comScore #AMAresearch #MRX (lovestats.wordpress.com)
- CEOs Speak: Mike Gettle @TNS, David Krajick @GfK, Marc Litvinoff @ORC, Mary Ann Packo @Millward Brown #AMAresearch #MRX (lovestats.wordpress.com)
- Yay me! David K. Hardin Memorial Award Winner #MRX (lovestats.wordpress.com)
Welcome to this series of live blogs from the Market Research in the Mobile World Conference in Cincinnati. With so many sessions, I’m only blogging about a few sessions each day. All posts appear within minutes after the speaker has finished. Any errors, omissions, or silly side comments are my own. I’ll also be providing end of day summary blog posts for Esomar so keep your eyes peeled for those as well.
Michael Sosnowski TRC Research: Getting greater value from mobile quant
- Current focus is 5 to 10 questions, simple responses but short and sweet won’t be enough
- “You can’t do conjoint on a small screen!” We do cojoint to understand preferences. We CAN do that on a mobile.
- How many choices do you need to see to get good quality data?
- You can do valid conjoint with fewer tasks and simplified choices
- Try a tournament style approach when choosing options – ask people to choose the most and least important and the results show the right rank ordering
- Don’t keep showing me stuff when i already told you I don’t like them
- They did the study online as well and got very similar results
- More with less mobile can help improve all methodologies, be an optimizer, not a maximizer
- [i’d love to read this white paper, sounds VERY cool, mmmmm data!]
Kevin Lonnie & Sean Holbert KL Communications: Sony Electronics case study in customer collaboration
- [Introduced as the funniest guy ever. hard to live up to that!]
- The crowd has nothing to do with innovation [could that fad being dying out?!]
- We need to find wise crowds not irrational crowds
- “If you could combine any electronic products on the market to make your life easier, what would you design and how would it work?” In 2 weeks, 100 ideas, 650 comments, 1200 votes
- Winning ideas were originally well thought out but then critiqued and tweaked by the community
- Don’t wait for the brand to create ideas, let the community help you
Shane Skillen Hotspex: I second that emotion! Emotional measurement is the new norm
- Memory is enabled through emotion so market research must take advantage of emotions
- 70% of drivers of phone purchases are emotions
- rational mind is 7% of predictive ability, emotional mind is 92% of predictive ability
- only 96 words are needed to describe emotions
- negative emotions are 3X more powerful at driving behaviours
- boring is the best correlate of purchase behaviour, albeit a negative one
Jeff Lienfelser and John Dick CivicScience: Survey Research Meets Big Data
- Millions of people answer polls all day long every day with no incentives
- they simulate a 2500 question omnibus with one question polls [i think that’s what i heard]
- individual responses are connected across sessions. hyper targeted questions delivered with seemingly no screeners or incidence rates
- Landline data is very different from census data
- Big Data can mimic the gallup presidential approval tracking study or the michigan consumer sentiment index
Beth Rounds Cambiar Consulting: Separating fact from fiction
- forces of change – economic power balance, more empowered consumers
- More faster cheaper, new methods better practices, river of information, growth of middle class, new talent in a new age
- by 2020, 40$ of people think the MR industry will under major transformation, but people think it’s going to happen earlier rather than later
- the 2020 industry leader will likely not be traditional MR – think google which might be 25%
- mobile is part of the standard tookit for 96% of us
- increasing change = rethinking research process, integrating social media listening, embracing innovation
- a lot of people have their heads in the sand [absolutely, and they won’t admit it]
- non-traditional suppliers – PLEASE learn the terminology!
- [be sure to ask for the presentation. it is chock fill of great tidbits]
- These are a few of my favourite tweets #MRX #MRMW (lovestats.wordpress.com)
- Reality meets co-creation #MRMW #MRX (lovestats.wordpress.com)
- Emotions and Client Priorities #MRMW #MRX (lovestats.wordpress.com)
- Business Value Through Smarter Research #MRMW #MRX (lovestats.wordpress.com)
- Google surveys, and oh, some other people too #MRMW #MRX (lovestats.wordpress.com)
- Mixing up your survey data for better results #MRMW #MRX (lovestats.wordpress.com)
- What Market Research in the Mobile World means to me #MRX #MRMW (lovestats.wordpress.com)
- Mobile Perspectives: Africa, Privacy, ROI, and Beyond #MRMW #MRX (lovestats.wordpress.com)
- 100 years of the internet and no more underwear #MRMW #MRX (lovestats.wordpress.com)
- Seems we’re fearful of establishing global benchmarks for mobile research #MRMW #MRX (lovestats.wordpress.com)