Tag Archives: segmentation

The evolution of insights: practicing what we preach: 6 summaries #IIeX #MRX 

Live note taking at #IIeX in amsterdam. Any errors or bad jokes are my own.

Power of human intelligence in the new era – man and the machine by Simon Edward and Seda Tokcan, (IBM)

  • Our personal lives have blurred, it’s an always on world, a do it yourself mentality prevails
  • Expertise still drives world progress, but what is the role of expertise
  • There are barriers associated with building expertise in the new digital era
  • Even simple analytics are not straightforward 
  • Human cognitive capacity is inadequate compared to what is required in today’s digital world
  • Advances are ushering in a new era of computing, no more punchcards, no more simply programming, now we’re in cognitive systems era
  • To error is human but to really mess things up requires a computer, now computers can learn and build expertise
  • What is so unique about human intelligence, ability to create a novel idea, ability to differentiate between causality and correlation, ability to combine intuitions with intelligence, ability to ask questions
  • The essence of being human is asking questions, not answering questions
  • Technology boosts the expertise of intelligence professionals – enhance, scale and accelerate expertise
  • computer system confirmed 99% of medical diagnosis but added diagnosis precision to 30% of them
  • Think of technology as an enabler, let it cut through the ego and bias of humans

Automation: Robot vs Researcher by Paul Albert (Zappistore) and Tony Costello (RB)

  • WHat used to take 6 months is now being done in hours and TV marketing budgets have gone up
  • Research budgets are continuing to decline for three years in a row
  • In fifteen years, half of Fortune 500 companies have disappeared
  • Data and digital requires more research to fuel profit, Netflix and uber have grown immensely but TASI and blockbuster are dying
  • We need lower cost and more speed but we also need validated methodologies
  • Do you delay until the method os fully validated or launch Asap
  • Business that don’t adopt technology are destined to fail, bravery is need to adopt new approaches
  • Now they can test many more ads for more brands and chose more effective ads

System 1 Driven Brand Insights by CHristian Ohm (Magda) and Karthik Posnanski (BrainJuicer)

  • Mazda has rebounded because of the product line, youngest
  • They moved from lower premium and generic to more premium and distinctive, premium experience not high price
  • Have a strong product perception but a weak brand image perception, most brands don’t
  • Fragmentation leads to a weak brand, in message or tone, sounds like a different brand in different markets
  • Took a co-creation approach, more people than marketing need to understand the brand – call Center, dealer, sales person
  • People knew the brands and could talk about them but there isn’t a lot of emotion but some people just love driving and are passionate about it, they want to deliver on this experience
  • Spirit of Hiroshima – challenger attitude, never give up, we can do it
  • Emotional connection is achieved when care and driver are in perfect harmony
  • Created a brand book to share with everyone
  • Tracking needs to be fast and actionable, cover emotions, simple and engaging, modular and flexible, adapt latest MR thinking, forward focused and predictive, strategic and tactical, more qualitative [excellent advice for research in general]
  • Considered fame, feeling, and fluency for brand growth

The nature of consumer emotion by Aaron Reid

  • Visceral factors theory – Lowenstein, falling asleep at the wheel – extreme deviation from a desired equilibrium point
  • It was a bold man who first ate an oyster – well, maybe a crazy person or simply a very hungry person
  • System 1 ans system 2 interact, it can’t be one or the other
  • The proportion of emotion model combines emotion and reason in a single predictive algorithm, we are more accurate in predictions if we use both
  • You can’t measure racism explicitly, emotion interacts with reason
  • We see eye tracking and emotion tracking of the Budweiser immigration ad, can see attention in the right places and emotion being positive or negative at the right moments
  • Adding implicit facial coding and implicit impact of ads greatly increases ability to predict virality of an ad
  • Need to quantify the emotions from pride, gratitude, and anxiety

Unilever’ innovation in action by Vijay Raj (unilever), @vijayiraj

  • They engaged with startups so they could increase the work with half the cost, half the time and better quality
  • Have worked with 800 startups in recent years – the Shark Tank, piloted 200, recruited 30 for research and the new way of doing business
  • Want to move away from asking to observing, people forget, they give estimates (not because they’re lying)
  • Used google glass technology and advanced video analytics
  • Move from asking to sensing, though people struggle to articulate emotions, FMRI, emotion coding, facial coding, they use facial coding on every ad
  • Why should we ask at all? Asking reveals needs, combine what people search for on google with what people say on social media to replace traditional research
  • Move from studying consumers to building relationships with people
  • The technology enables them to string together a more powerful story
  • Let’s move to “i have the answer what is your question’
  • The pyramid of tomorrow: Input powered by tech, output enabled by tech, outcome delivered by people
  • Make the leap from insights to ideas
  • They pay their vendors bonuses if they do a job well [fabulous idea, will you do this?]

Integrating new data sources to improve the value of your segmentation research by Hilary DeCamp (LRW)

  • Can you buy an ad for a segment?
  • Geolocation, attitudinal profiles, likely voters
  • Need to use machine learning and targeting to buy thousands of direct targeted ads
  • Microsegmentation has its use but you still need to use classic segmentation for higher level needs
  • Alternative lenses for segmentation – demographics are targetable in media, behaviors for usage styles of path to purchase, attitudes for believes about category or self, needs for key buying factors, occasion based for needs that vary by occasion
  • Right now demographics and behavior segmentation are highly used
  • Challenges with segmenting – surveys are too long and phones are too small, we don’t know what we don’t know, self report behavioural data is not very accurate or precise, targeting segments is hard to do in advertising
  • Can profile based on quantative data but people are bad with numbers, qualitative research brings richness and texture, plus can add real world behaviours like actual online activities or models propensities
  • Audiences are identified and you can message them differently by segment
  • The new tools are making classic segmentation more actionable than ever before
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Jobs to be Done: A Roadmap for Customer-Centered Innovation by Stephen Wunker, New Markets Advisors

Live note-taking at the November 10, 2016, webinar. Any errors are my own.

  • People aren’t just buying products or services, they are trying to get things done, many ways to get these things done
  • How can we sell more ice cream? No calories, better distribution. Now think about you personally the last time you had ice cream, why did you have it? Completely different answers, nice way to end the evening, bribe the kids, want to cool down after a run, playgrounds, coffee, cigarettes, beer are the competition. It’s not an ice-cream company and the competition is much broader.
  • Can do job quicker and faster because you’re more targeted on what needs to be done
  • Need to know why consumers prioritize certain jobs and why they buy the things they buy
  • When: understand target markets fully and meet the needs of multiple stakeholders
  • How: address root causes and specific use cases
  • Why: broad solution space base don both functional and emotional insights
  • Discover the jobs, what do stakeholders want to accomplish, what are the pain points and current approaches but don’t start there are you will miss the why
  • Identify the success criteria and investigate the obstacles, go into detailed planning
  • Assess the value and beat the competition, do NOT start by trying to beat the competition
  • Credit card company – are you in the ‘gold card’ segment? Not very sophisticated. Add demographics which isn’t much better. Maybe go further with ten life-stage segments (college students, couple with baby) but this is not all that predictive for a gold credit card. Company really wanted to attract high spenders – business travelers, small business owners who put business charges on personal cards, these are very different people. Not everyone is seeking more even though that’s what we’re trying to give them. Business travelers might want instead preferential events so they can connect with their family at home.
  • Toothpaste – satisfies a very specific job. Is Wisp the worst toothbrush? It’s hardly a toothbrush at all. But it’s a huge category success. Has a very clear view of the customer. People who travel during the day and it’s hard to brush your teeth when you’re away, don’t want to carry a wet toothbrush. You don’t need a dental hygiene cleaning, you need to make sure there’s no broccoli in your teeth. Can’t be bulky. Have to be okay with throwing it away. [Darn, they almost had me until I heard it’s disposable]
  • Décor Aid redefined the norm by focusing on hundreds or low thousands of dollars clients, not hundreds of thousands. Value of freshening a living room before a party. Give you a newly interesting den. No obvious competition other than DIY and maybe it looking like DIY.
  • Go from big to narrow, get more targeted over time.
  • Case study – prepared food company expanding product portfolio. Functional job – budget, nourish, reduce time on menial tasks, eat healthy. Emotional job – unwind, bond, try new things, variety, demonstrate caring, express creativity. Makes more sense to start with the emotional jobs in this case – “feed yourself” isn’t very useful. Success criteria – tasty, filling, healthy, easy, fresh, variety. Obstacles – lack of energy, lack of ideas, distractions, cravings, timing. There are industry benchmarks and you have to be prepared to break those so you can stand alone a bit. Myth – couples want quick meals is more correctly couples want easy meals.
  • Jobs To Be Done goes different than needs or features. It’s only one piece of understanding the market. Don’t compete on features.
  • Map the entire process of customer behaviour and keep digging to get a root causes. Be a kindergartner and keep asking why why why. Create a hierarchy of stakeholder jobs and priorities. Satisfy both functional and emotional jobs.
  • Get out of the conference room and talk to actual people. people have a hard time telling you these kinds of things on a questionnaire. You can quantify context and experience, you can ask about frequencies. And then qualitative gives you the full experience
  • Two segments is probably too simplistic and too many is unreasonable. Direct mail gives you more options for more segments. 4 to 7 is probably a good balance to exploit richness of the world but not getting over detailed.

 

 

 

 

 

 

Research effectiveness award finalists #ESOMAR #MRX 

Live blogged at Esomar in Dublin. Any errors or bad jokes are my own.

Driving success through big data segmentation

  • Australia affected by the global financial crisis, growth rate almost stopped, increase in unemployment, reduced household wealth
  • GE consumers were trying to pay off their debt balances, also high losses
  • needed to identify the new norm, how did consumers feel after this crisis, can we build a segmentation
  • success factors were driving cultural transformation, fine tune value proposition
  • needed to engage senior stake holders, involve agency partners at every step
  • did an audit of GE’s customer data
  • two samples, 3000 people around australia, 5000 people from GE database, link the two together
  • what is the new norm?
  • australians felt destabalized, the signs weren’t good, felt vulnerable, pessimistic, uncertain about the future
  • they wanted control over whatever they could, they could control their spending, new norm was to live within your means
  • needed a unique GE segmentation that lived on the GE database
  • don’t sit back once the research is underway
  • used videos, handbooks, training packs, reference desk stands
  • everyone knows the target segments and understands them
  • they saw actual change as a result – different people could talk to each other and understand each other
  • net promoter score went up 5 points [cue all the NPS isn’t enough arguments]
  • saw improved sales measures, increases in sales, this led to them training the entire company on segmentation
  • essential to have senior management endorsement
  • essential to have committment to change, high quality research agencies, education, communication, make outcomes tangible by putting numbers on the outcomes

Reinventing convenience store food

  • [huge fan of the 7/11 slurpee! woot!]
  • 620 stores in australia, all franchised, 1.5 billion annually, 6 customers per second
  • how to become a destination for food on the go
  • it wasn’t in decline, but they did make it grow
  • did a knowledge audit with many stakeholders
  • did a qual phase with real people, took them on a bus to various stores
  • also did a quant phase with 1000 people
  • 3 key things: shoppers trust quality and freshness, customers prefer no service, customers see it as fast food
  • hot food still rated high on trust but not as high as chips and candy
  • but people didn’t think the store was fun or attractive, looked bland, no sense of discovery
  • nailed efficiency but not the experience [yup, if I wanted to talk to restaurant staff, I’d go to hungry jack]
  • people want to be left alone in the store – anonymity, no judgement, freedom, naughty fun, gives them control and flexibility with flavours and additives
  • on a survey, they ranked with burger king, subway, kfc, hungry jack as a fast food store – they both offer real meals – i.e., a meal is a chocolate bar, chips and a pop [LOL yeah, i get it 🙂 ]
  • each meal has different marketing needs, needed to build craving for lesser known products
  • growing in appeal and affinity in this category finally
  • [This is my choice as the winner, hope you win!]

Using survey data to target customers and increase ROI through digital media

  • conversion model to identify consumers willing to spend more on your brand
  • survey of 10 000 travelers of 7 brands of holiday inn brands, about 2200 open to staying at holiday inn in the future
  • [quite the sales pitch here. you can ALWAYS discuss a product without making it a sales pitch 😦 ]
  • scaled 2200 travels into 15 million travels with a look alike model of internet behaviour
  • four outside companies played a role in creating ads, tagging and measuring the campaign, purchasing the audience
  • 500% increase in bookings
  • [didn’t get to see a model 😦 ]

What’s Your Twitter Segment?

On several occasions now, I’ve come across a comment like, “Everyone on Twitter is smarter/funnier/more dedicated/better than I am.” I even saw a tweet from someone who said something like, “I go to Store ABC because the people on Twitter make me feel dumb.”

Well, if you stop and think about it, the only people you CHOOSE to follow (ignoring courtesy follows) on Twitter are the people you either:

  1. admire,
  2. want to learn from,
  3. want to laugh from,
  4. have similar interests, or
  5. have some commonality with you that prevents you from turning off the follow.

Also think about this, do you follow people who bore you, have a stupid sense of humour, say stupid things? I doubt it. You tune those people out as fast as you can. This means you end up with a finely tuned group of people who make you happy, people who choose the best of their witty remarks, the best of their smart remarks, and the best of all the random junk that’s passing through their brain. It’s a very personalized self-determined segmentation. In my case, it means I follow:

  1. researchers,
  2. gardeners,
  3. birders,
  4. bakers,
  5. online icons, and
  6. a bit of random silliness.

Those are my segments. In the end, these leaves you with a very skewed representation of who is on Twitter. You’re only seeing what you want to see, and it’s dang hard to see what you can’t see. Again, in my case, it seems like everyone on Twitter loves research and works in a professional setting. So, forget that nonsense about how much better or worse people on Twitter are and enjoy what it offers you.

And if you’re interested, here’s what my Twitter interest profile looks like, thanks to Wordle. (Hi Tom!)

twitgroups

 

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  • Consumer Segmentation Gone Wrong

    Don’t get me wrong. I know why they do it. Company’s want to make sure that when someone visits their website, the site is as relevant as possible. They want to ensure that what you see on their website is what you’ll see in the store. But, things have gone just a bit too far for me. For instance, Home Depot won’t even let me look at their website unless I tell them my zip code. Are they not aware that zip codes are PII (personally identifiable information)? They don’t even give you an option to see a generic site. Your only option is to lie, something I’m completely against given I am an expert in survey data quality. So basically, when I shop around, I don’t end up buying at Home Depot.
    HDsegment

    Here’s another example. Cheerios won’t let me look at their site unless I tell them my age and how old my children are. Sure, I could just choose one of the four sites that I think would be most interesting, but dang it, I just want to see their website. Where’s the generic site for people who want to maintain some sense of privacy, the site where people know their demos aren’t being tracked? Nowhere that I see.
    cheersegment
    Segmentation is a great tool. It lets you understand people better and provide better services. But please, don’t segment me out of your store. Unless you don’t want my money.

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