Insight2Perspective's blog

Physics Meets Marketing

 

Some great insights in Dan Cobley's talk, which anecdotally connects two seemingly unrelated fields.  

The second point made (using Heisenberg's Uncertainty Principle as a basis for his point) describes the dilemma that faces marketers wanting to do research.  Cobley's point is this: the act of researching people skews the results.  Ask a person in a health and fitness focus group how much fast food they eat, and you're likely to hear an answer much less frequent than reality.

What does this mean for marketers wanting to better understand their customer?  Traditional research may not be the best solution.  Non-traditional types like of research like ethnography may affect consumer behaviors, but inevitably force discrepancies to come to the surface.  

Case in point: have you ever been caught in a lie when you were a kid?  (If you are legitimately proud to say "no" to this, you may need to examine your life for a moment.)  Was it because your lie wasn't believable enough, or because your actions and your words didn't line up?  A good observer/interviewer/researcher can spot contradictions in a consumers words and behaviors and force a confession that is often more enlightening than a partial truth in the first place!

When you're doing research, consider what you're trying to learn and how you're trying to learn it.  After all, sometimes it takes non-traditional research to obtain the non-traditional results you need!

Little Things, Big Effects

In this video, Rory Sutherland presents how massive strategic and organizational changes can have nearly zero effect on customers, but a seemingly slight detail can make a lasting impression.

Sutherland's likening of business to meteorology is genius.  While a massive event (a huge hurricane for instance) can break records of windspeed, size, or duration, it may stay out at sea and have minimal effect on the average person.  However, a slight change (a 1 degree shift in global temperature) has created a world-wide sense of urgency to adjust our lifestyles and be more environmentally conscious.

Where is your company investing major time and resources to solve simple problems?  What problems could you fix with a little attention to detail and a couple pennies?  Major innovation can be the holy grail of 21st century companies, and it's most certainly a great thing. However, there's often a lot of money (and a huge positive impression) to be made by just listening to your customers and providing solutions that actually solve their problems.

Immersion: Why We Love What We Do.

One of the greatest things in running a company like Insight2 is the diverse experiences that come with it.  We talk a lot about "contextual immersion" which is just a fancy way of saying that we get into the world of our consumers so that we can both experience it as well as observe people that naturally live there.  For a given project we will recruit target individuals that we can interview and "shadow" so that we can uncover opportunities to better satisfy their needs.  But in addition to the recruiting, we typically immerse ourselves in our client's target environment so that we come to understand issues first hand.  That's the greatest part of the job really.  In the past we have played paintball, motored around on boats, golfed, gardened, landscaped, played with dolphins, thrown huge grilling parties, cleaned homes, cut grass and even taken showers with a huge array of shower heads.  We feel it's important to ground ourselves in the reality that is the category we're researching.  It helps us not only to ask better questions during the research, but it helps us to notice things that might otherwise never be observed.

It looks like we're ramping up for another busy summer, and the immersion is beginning again.  This summer I will again be putting in a vegetable garden to better empathize with one project, bowling several times a week for another project and using high-end cookware for a third.  I've got a phone meeting with a company that runs day camps on the West Coast.  If that materializes, I may suggest that my kids attend a week of camp there while I work at observing and interviewing other participants and
  parents.  We're firm believers that to develop opportunities for a product we should know the product first-hand. 

So with this in mind, here is our future project wish list (in no particular order):

• Innovating the high-end cruise line experience
• Hot air balloons - experience innovation
• Convertible sport cars
• Mountain or sea-side resorts
• Video game systems
• Etc.

But we're not proud.  If projects regarding recycling, garbage collection, personal hygiene or roofing come up, we'll take those too.  The reality is, immersion is fun, no matter what form it takes.

How do you communicate true innovation?

Do yourself a favor and watch this short video.

Pretty cool stuff.  But now you're asking yourself, "How could this possibly relate to consumer research and/or innovation?"  The answer: people are predictable.

Bobby McFerrin, best known for not worrying and being happy, is able to plant a seed in his audience's mind early, and then elicit a specific behavior without giving any instruction.  

What does this mean for product companies?

How many millions of dollars are spend each year educating and instructing consumers on how to use products "the right way"?  Consumers look to understand new things very early, classifying them subconsciously into schema that they understand.  For example, think of the importance placed on first impressions.  Within a minute of meeting someone, you've compared them to everyone you know, and to a certain extent, decided how you are going to relate to them.

So if you are planning on launching a new product, service, or other innovation that is staggeringly different, make sure you're paying close attention to what seeds you are planting.  

If you're selling a radically new hat that can perform 100 different tasks from driving nails to opening pickle jars, work with people's schema, not against them.  

 

 

If you try to sell people a hat, then they will focus on it being a piece of fashionable accessory, and may not be able to accept it as a viable tool for completing tasks.

 

 

If you try to sell them a multi-tool, then they may not be able to accept it as a piece of attire.  

 

 

However, if you plan the seed of , Inspector Gadget (one of my childhood cartoon heros) in people's minds, anyone who is familiar will know instantly what the product is capable of.

Just like Bobby McFerrin figured out, if you can successfully give people the first few notes, then they will play the whole songs for you!

Looking for extraordinary results from ordinary research?

You're probably not going to find the results you're hoping for....

Focus groups and quantitative surveys are great for concept validation or capturing product preferences, but were never meant to be the foundation for product development because they can't capture needs beyond what the consumer knows.

Non-traditional research, like observational and contextual inquiry, digs deeper than consumer opinion tools, enabling researchers to uncover unmet needs consumers could never express.

The problem with traditional research methods is that consumers can’t tell you what they really need because they can’t see past existing products.

When they express frustrations with a product, it’s often followed up with “But I know _____ already does this.”  While they can point to existing products as things they aspire to own, asking a consumer “What if you could have the perfect _______, what would that look like?” and you’re be met with a blank stare.

Observational and contextual inquiry allow you to get past what is known by the consumer and lets you get at something far more critical; their unmet needs. 

Unmet needs come in a variety of forms, but most notably they are either articulated (a need that a consumer can express if put in the right environment) or unarticulated (a need that they have, but are not consciously aware of). 

The key to effective product or service innovation is to get past the consumer’s stated desires to understand their unmet needs.  Offerings that satisfy these needs have a much higher probability of market success than even products that people have “asked for”.

Immersing yourself into your consumers’ world is the only way to effectively capture these unmet needs.  Watching them interact with products, and engage in the processes that are part of their everyday life can reveal valuable insights regarding breakthrough product development opportunities. 

Most companies are experts in their respective product lines.  If given the right design criteria, there is no one more capable of developing effective solutions than the people that have been hired and trained to do so. 

Converting insights from non-traditional research into design criteria is the first step in creating true innovation. Once these concepts have been developed, you can go back to traditional research for validation or selection purposes.

The Curse Of Knowledge

 What you know can hurt you... 

Every industry has its core tenants of knowledge that are understood by every employee.  Whether its the ingredients that separate cola from diet cola, or the accepted units that measure speed, efficiency, thoroughness, or quality, every business has its own essential know-how.  The problem occurs when marketers believe that everyone, including customers, share this knowledge.

For example, my company is tied into both the market research and innovation consulting fields.  As a result, we take great pride in our research which is primarily "video based ethnography".  You may know what ethnography is, and surely you understand the concept of video, but does the phrase above actually mean anything to you?  We've found shopping for research is hard.  After all, could you decide between quantitative or qualitative, and then choose an ethnographic study over focus groups, in-depth interviews, or other study?  Does even thinking about it start to cause you a little frustration?

From the inside of an industry, it is easy to understand what is being communicated to consumers.  From the outside, customers only see arbitrary rating systems or misunderstood lists of product attributes.  This concept is referred to as "Tribal Knowledge" in one of my favorite books: Made to Stick by Chip and Dan Heath.

In order to conquer this obstacle, you have to acknowledge that consumers don't share your knowledge.  You must turn your industry knowledge into meaningful benefit statements.  Even if its widely know within your company what benefits material A59 provides, material A59 may have no meaning to your customer.  A rule of thumb is to explain your product as your customer would recommend it to a friend.  For instance, "Material A59 makes this product lighter/faster/more durable than competitive products," means more than "This product is the only one to use Material A59."  Its easier to compare benefits (substantiated by a product attribute) than attributes left by themselves.

Example time: lets say you're looking to buy a hammer.  Assuming the below lists (which are comprised of purely made up criteria) are on the packaging, and all other factors (price, etc) are equal, which are you more likely to buy:

Nail Driver

• 1.25" diameter striking surface
• 2/3 Kg head mass
• 87% pine synthetic blend handle
• Rated 8 on the Harberfeld Scale

 

Strikemaster

• Larger head surface is more accurate when driving nails
• Greater mass helps you drive nails faster
• Low-recoil handle reduces fatigue and muscle ache
• Received the highest rating on the Harberfeld Scale which measures quality and durability: 8

Are these two products saying the same thing?  Which product is easier to understand?  Which looks more appealing?  Why?  

Consumers aren't stupid, but successful companies must learn to speak their language.

Talk About Knowing Your Customer....

Customer Feedback Not On elBulli's Menu

If you get a chance, read this short case study by Julia Hanna from HBS Working Knowledge.

Summary

Chef Ferran Adrià is by any reasonable standard an awful businessman.  His restaurant elBulli is only open part of the year, and has a notoriously confusing reservation system.  He charges 230 euros for dinner, intentionally limits himself to 8,000 customers per year, and overstaffs his restaurant with 30-40 cooks preparing dinner for no more than 50 patrons each night.  And yet, he is at the very pinnacle of his industry, because he provides his customers with a once-in-a-lifetime experience.

What does this mean?

Lots of restaurants try to service niche populations (Bamboleo used to be my favorite provider of Cuban-Brazilian fusion dishes in Glastonbury, Connecticut), while some try to provide the finest of dining experiences.  However, elBulli stands alone.

"If the product is merely food, Adrià should move the restaurant to Barcelona or Madrid," says Norton, who has written a case on elBulli with Julián Villanueva and Luc Wathieu. "Another view is that the product is the whole experience, from start to finish—so driving for two hours in the mountains is a crucial aspect of the product."

Ferran Adrià understands that there are many ways to satisfy the dining preferences of the rich and elite.  However, he's not selling a niche restaurant or fine dining.  He is selling the much more romantic idea of a 'once-in-a-lifetime culinary experience'.  By developing an understanding of romance and lasting memories, he was able to construct a unique opportunity which for many is a life-long goal to be experienced.

"Adrià's idea is that if you listen to customers, what they tell you they want will be based on something they already know," Norton observes.  "If I like a good steak, you can serve that to me, and I'll enjoy it. But it will never be a once-in-a-lifetime experience. To create those experiences, you almost can't listen to the customer.

If you work for a product or service provider, you may never get the opportunity to create this sort of 'dream experience' for you client.  If you disagree, remember that a free year's subscription to the Jelly of the Month club (or other bundle) is NOT going to be seen as romantic.  However, there is an important lesson to take away here: knowing your customer goes much deeper than asking questions.  

Here's an example from one of our past projects:  Patio heaters function just as their name suggests; they heat patios.  If you ask a potential customer how to improve one, the typical answer will involve more or better directed heat (ease of control, or aesthetics notwithstanding).  However, if you sit with customers of the product in context, you will quickly realize that users are far less concerned with their heater and far more concerned about entertaining.  Knowing that patio heat is all about entertaining, suddenly the opportunities for innovation becomes apparent (the Bistro Table Patio Heater was born).

Its time to quit asking questions and start observing.  Really get to know your customer.  Only then can you truly innovate and offer the product or service he/she really needs.  

Do you think the iPhone came out of a study on how to make a better portable CD player?

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Are you buying research or are you buying knowledge?

Believe it or not, the difference is big enough to separate the proactive from the reactive.  If you're sick of playing 'catch up' in the market place, this blog may provide a first step toward change. 

Companies buying research are buying a process with predictable results.  Whether or not companies like to admit it, they often have a checklist of desirable (and undesirable) results in mind before they start a given study.  Rather than trying to gain a true understanding of the situation, research buyers are often looking for 'affirmation' (in other words, the ability to say "thats what we thought!").  Research shopping is safe and rarely results in genuine A-HA! moments.

Shopping for knowledge has a much greater risk/return ratio.  Few companies are willing to step out into unknown territory and ask open-ended questions that might expose them to harsh realities.  No one wants to hear that their once innovative product has become a commodity or that they've been missing an obvious market for a long time.  However, gaining access to these blind spots gives companies the insight they need to get on the right track.

It all starts with developing the right goals.  It's very different to set out to gain understanding that can drive direction than to get quick answers to an immediate situation.  Gaining understanding requires a lot of thought, effort and creativity after the study.  However, it can lead to breakthrough ideas.  Quick answers provide quick solutions... But often of questionable quality. 

Does the following example sound familiar?

A product manager has been charged with developing new ideas for next year's product line.  In order to find answers; he approaches a number of research companies with the following request:

Product Manager:  "We want to hold 6 focus groups to come up with new ideas to improve our existing product line"

Now that you know the difference, what do you think this product manager really buying?  More importantly, what will this product manager receive in return?

If you are willing to take the leap and buy knowledge over research, make sure you are working with the right people.  Look closely at your potential research vendors; are they catering to a desire for 'affirmation' or are they challenging you to grow in (sometimes shocking) understanding?  

Understanding Your Audience Starts in the Mirror

The company I work for, Insight2, specializes in helping companies through the 'fuzzy front end' of marketing processes.  Companies invest in us to help them overcome the standstill inertia of repetitive product lines or static markets and point them in a new, profitable direction.  As a result, one might assume that anyone who spends as much time with a company such as ours would have no problem starting a new blog from scratch.

This is not the case.

Just like our clients, when my boss said to me, "You should really start a new blog to get some online exposure," I was lost.  Sure, I know what a blog is, but how the hell are you supposed to start one from scratch?  Infinite is the best word I can think of to summarize the amount of potential topics, commentaries, and subjects that could potentially be addressed.  Even then, the most important factor yet has to be addressed: How am I going to make this entertaining?

For a couple days, I found myself drowning in a baby pool of cruddy ideas.  Rather than pouncing on the first semi-amusing idea that came to mind (the same problem our clients approach us to solve), I backed off and took a new approach.  If I am marketing this blog to my decision-making peers in other industries, then what am I currently reading and how do I currently read it?  Without a budget to do big picture market research, I figured I could probably take the time to figure out my own values when it comes to internet materials.

And so I put on my Sherlock Holmes monocle and started perusing.  Here's how I define a blog as worthwhile or a bust:

1.  Clear Purpose - Subject matter is important, but I knew going in that high-speed roller sculpting and Scandinavian doll collecting weren't going to be on the list.  However, the blogs I value over time manage to have a tightly defined scope.  Marketing blogs tend to cover a singular facet of marketing.  The design blogs tended to cover an area of design.  Even the sports blogs covered a single team or sport.  Blogs that tend to drift around from topic to topic don't stay on the RSS reader long.

2.  Enlightening - Something worthwhile was brought to my attention.  This can range from a humorous video, to a new product concept, a marketing study, or a status update on my favorite team's roster.  While some blogs I read 'break the news' while others just 'report the news' that someone else uncovered, the importance to me is that I don't have to go searching for meaningful news.  Some of the blogs I read link most of their articles to other blogs.... that's one google search I didn't have to make.

3.  Personality - By reading blogs, I get to know the writer.  Unlike college, you get to choose who you're learning from when you're reading blogs.  I'm gonna choose the professors that I like.  Sarcastic, ingenious, straight-shooting, detail-oriented.... everyone is different, but if I can't hold an enjoyable conversation with the author, then the five minutes it takes to read their blog can be better spent.

I'm certain that there are other elements in play, but these are the three that I'm going to focus on while I build the Insight2Perspective blog.  This blog is going to be focus on providing perspectives on consumer understanding, accompanied with meaningful links and materials.

As for the personality, well, you'll figure that out on your own.