14
Mar

Insight Communities – Driving ROI, Not Just Research Value


Richard Clarke, Vice President
Global Partnerships, VisionCritical

For decades, research has delivered powerful consumer sentiment and opinion into organizations – enabling these organizations to put the voice of the consumer into their decisions with the goal of creating more meaningful, successful, and effective products and services.

Methods and modes have changed over the years, with more and more complex solutions being created to get closer to the consumer truth at an ever-increasing speed. Incredible insight has been (and will continue to be) gleaned from consumers, informing multiple parts of clients’ business eco-systems. However, for many clients and users, research is seen as a cost center within an organization – something that needs to be done as part of a process or something that must be purchased as part of the broader vision of the business. The value of research is not generally associated as being an integral and fundamental part of overall business planning and development.

This is why whenever there is a downturn in business performance, or regional/global downturns (ex: 2008 Global Financial Crisis), one of the first areas to be questioned and lose budget is research.

What is the “value” that research is delivering?

There are many answers to this question, both objective and subjective, however, too few times does research itself get directly linked back to business performance. Ultimately, asking about the “value” of research is the wrong question. We should be asking: What is the “Return on Investment” of research? Because that is what research is: an investment into the organization, and not a cost.

There are many ways that Return on Investment in research can be measured, including:

  • More informed/accurate business decisions – what is the cost savings from NOT doing the wrong thing or validating the decision (risk aversion)?
  • Faster to market with the RIGHT product – how much does speeding up the development cycle save?
  • Quicker reaction time to customer feedback and demand – what is the short- and long-term savings of rapidly reacting to the situation or of knowing your customers’ buyer journey and pain points?

For years, I have been an advocate of research and Insight Communities – the idea of engaging with individuals to answer the business issues at hand with engaged members who, ultimately, also drive advocacy for the brand. Insight Communities should not be considered a research “cost” but rather as an organizational asset that both informs business decisions and creates brand advocacy among members.

Forrester Consulting recently completed a Total Economic Impact™ Study on the ROI of Insight Communities to clients. In addition to the cost efficiencies and speed value propositions of Insight Communities, Forrester quantified the financial value of continually engaging with members in a community. The highlights include:

  • $1.7M business value from increased customer insight
  • 590% ROI
  • $546K incremental profit and $4.7M increased sales from community members
  • 39% increase in average order value and 70% lower churn rate from community members
  • 75% reduction in cost compared to traditional market research methodologies
  • 4-6x faster speed to results

This continues to reaffirm the belief that an Insight Community is not only an incredibly valuable tool in providing fast and efficient consumer insight, but also drives business action that results in incremental sales and profit for organizations.

These are just some of the reasons that organizations are implementing communities. The client stories about the impact of an ongoing Insight Community are powerful and continue to prove out the short-term and long-term Return on Investment. Shifting the mindset to consumer engagement is resulting in hundreds of organizations realizing significant returns and outcomes (click here for client stories).

Five years ago, communities were more of a niche solution or emerging technology but, according to the latest GreenBook Research Industry Trends Report (Q3 2017), 82% of respondents stated that communities were either in use (60%) or under consideration (22%). This has led GreenBook to no longer believe that they are an emerging solution but are, in fact, a mainstream solution:

“In future editions of GRIT, it is likely that online communities will also be removed from “emerging methods” now that it is mainstream.” (GRIT Q3/Q4 2017).

Ultimately, these two pieces of evidence indicate that an Insight Community is not only a solution that spreads efficient business insight across organizations but is also an asset that drives revenue and profitability – thereby attaching a real-world ROI to the value of the asset.

Feel free to contact me to learn more about how an Insight Community can become your most powerful asset.

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14
Nov

How to Market Products Using China’s City Tiers

By Jenny Zhang, Research Analyst

Companies looking to market in China will hear about the country’s city tiers and wonder what it’s all about. It’s no question that the world’s most populated country would have the highest consumer demand. Their consumer expendable income is also on the rise, and with a flashy, name-brand-recognizing culture, marketing is more important than ever. The question is, can we market products to these so-called “tier cities” and how can we do so? I’ll start with a little explanation and let’s work on answering that question.

I’d like to reference South China Morning Post’s (SCMP) interactive definition of tiers. Here, they divide 613 cities into 4 tiers, but another popular approach is 6 tiers. As you can see, there is no standard way of defining tiers from the government, but the highest tiers, 1 and 2, are generally agreed upon by economists, politicians and the public.

Name a city in China: Beijing? Shanghai? These are Tier 1. The combination of GDP, Politics and Population classifies cities into the four tiers, however, some cities rank differently in the three areas so the average is taken to identify the tier, says SCMP. You can start to see how companies would want to understand tiers so they can target certain people. Consumers in Tier 1 cities tend to be more affluent and highly educated. Tier 4 cities are in the rural parts of Western China. Population is scarce and so are resources. They include provinces such as Tibet and Inner Mongolia. Are you starting to get ideas?

Advertising needs to appeal to the demographics. Same with promotions or deals. We will start asking what kind of media to advertise on based on what the consumers have access to. So the answer to the question we had in the beginning is “yes”, we can market products to different tiers and the way to do so depends on your product. The next time a client asks you about marketing in China, suggest looking at tiers and see where your research takes you.

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8
Nov

Tactics For Humanizing Data From Connected Devices and IoT To Drive Business Outcomes

By Lucas Lowden, Research Director

Connected devices. Automation. Machine learning. Artificial intelligence.

Just a few short years ago, we would’ve thought we were watching a science fiction movie.

There is much discussion around these technologies – and for good reason! Each are critical components of scalable Internet of Things (IoT) applications.

Today, it is the reality of our day jobs. With the support of various functions across the organization, we are actively establishing Morpace’s thought leadership and positioning for what we believe will be the future of the market research industry.

In support of these technologies, the importance of the human element should not be discounted.

There are numerous human interactions that provide crucial inputs to enable successful automation of machine processes. Doing so allows for a broader understanding and application of big data to produce actionable insights for business outcomes.

With several years growing in this space, we have developed a passion about leveraging big data and IoT systems. We have also realized the importance of Big Context – the intersection of man and machine that layers contextual understanding and lends business meaning to these massive data systems.

Are you leveraging Big Context in your business? Are you finding the humanity within your organization’s data?

Join the Strategists on Morpace’s Growth & Innovation Team – Jason Mantel (Sr. VP), Dania Rich-Spencer (VP), and myself, Lucas Lowden (Research Director) – for our webinar from Qualtrics’ Experience Week, Big Context: Humanizing Big Data From Connected Devices” and learn about tactics for driving positive business outcomes. To sign up and view our webinar, click here.

In the webinar, we explore the tenants of Big Context and how we have proven the importance of the human element and answering the question “Why?” for an automotive manufacturer and a transportation & logistics fleet.

We encourage you to reach out to us directly for any questions or further discussion around humanizing your organizations’ data at information@morpace.com.

 

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26
Jul

Pokémon Go Consumers, You Gotta Catch ‘Em All

Pokemon Go Consumers, You Gotta Catch 'Em All

By: Cory Kinne, Project Director

It’s 2016 and the Pokémon craze has struck again, this time in the form of a mobile app called “Pokémon Go”. As of July 21, Over 30 million downloads have occurred since the app’s release earlier in the month, and the hype doesn’t seem to be slowing down any time soon.

Not surprisingly, many Pokémon Go players are adults, since Pokémon first came out more than two decades ago. It’s nostalgia for many in their 30s and 40s and the game’s social features appeal to most millennials as well, not to mention teens.

Because of this broad appeal, Pokémon Go presents retailers with an opportunity for free promotion. No matter how big or small a business may be, welcoming Pokémon Go players to their shops and restaurants, or malls and boutiques has little downside.

Simple in-game purchases can be made by businesses in order to draw more customers through the doors. Items like “Lures”, which draw Pokémon to a certain location, can be purchased for as little as $1. New customer bases can be reached and the return on investment is promising; one New York pizzeria is boasting huge returns by investing only $10 in the Pokémon “Lures”, causing a 75% increase in business over the course of a single weekend.

Businesses can also be a “Pokéstop”, a place where players (or “trainers” as they are referred to in the game) go to receive items like “Poké Balls” and “revives”, or a “gym”, a place where players battle their monsters to become leaders. You literally have to be within a few feet of a Pokéstop to take advantage of the bounty of items within.

Such features of Pokémon Go draw players to the area, and businesses can up their marketing prowess by offering incentives such as discounts, prizes, or a free gift for players stopping by to increase interest in their products or services.

Our research and technology partner Qualtrics had some interesting statistics from Pokémon Go trainers they surveyed. See some fun and interesting infographics here.

For any retailer, it’s an opportunity they can’t afford to pass up. Engage customers in simple e-marketing campaigns, inviting Pokémon players, and informing them of nearby gyms or announcing your status as a “Pokéstop” is easy to do and costs little more than time. You literally have to be within a few feet of a Pokéstop to take advantage of the bounty. Better yet, business owners, managers and even employees should download the app and play the game to become familiar enough to converse with customers about it.

You may not get to level 30 in Pokémon Go, but chances are many of your customers have that as a potential goal. If your retail location hasn’t started using Pokémon Go, you don’t want to miss out.

For further insights contact the Morpace Retail team at ckinne@morpace.com. When we’re not catching the Wild Rattata lurking in our hallways or checking out the three nearby gyms adjacent to our Detroit headquarters, we’ll be there to answer your questions on how to take advantage of this craze. After all, you gotta catch ‘em all (customers that is)!

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7
Dec

How Delta Airlines Got Me Charged Up and Won My Loyalty at 32,000 feet

By Julie Vogel, Vice PresidentDelta plane

How Offering Customers an Open Runway for Sharing Feedback Can Reap Huge Dividends

On a recent early morning flight from Chicago to San Francisco, I experienced how a seemingly small customer experience detail can go a long way in boosting brand loyalty. This underscores how essential it is for brands to provide an avenue for consumers to easily provide suggestions that can improve customer experience.

This brand-transforming experience happened the first day of a one-week family summer vacation to Marin County, California. I learned that a client had requested significant changes to a presentation to be delivered later that afternoon.  Because I had authored the presentation, I was the one who would be able to most efficiently handle the revision.

Opening my PC it showed only 27% battery power, my anxiety skyrocketed: surely not enough to fuel the amount of work I needed to complete during the 4-hour flight to San Francisco. Darn, I thought I had fully charged up at home. I quickly began to play a frantic game of Musical Airport Outlets:  a seemingly good-natured but, in truth, desperate squabble with other travelers to lay claim to the few available electrical outlets in the gate area, often located under chairs, outside bathrooms, on obscure posts.  By the time the boarding announcement came I was, literally, powerless.

I slid into seat 24A on the Delta Airlines plane we were traveling on, and noticed an emerald-like sparkle shining out of small, dark, rectangular plate mounted at knee height on the seat back in front of me.  Could that actually be what I thought it was??  I looked closer. To my surprise and delight, it was: Delta had outfitted my main cabin seat with my own personal electrical plug.

It glistened a warm, friendly ‘green-as-in-go’ that brought immediate relief and delight, and changed everything about the experience I thought I would be having on that flight:  I would now be able to get my work done in flight, reclaim peace of mind, and start my vacation. Thank you, Delta.

Delta is likely committed to understanding and improving the customer experience.  This type understanding can often be developed through innovative approaches to consumer insight gathering.  For example, check out this Ford Motor Company site where it offers an open door to consumers interested in offering feedback on a host of product or customer experience topics.  Several of our clients use Claros online research communities as a way to create and follow a focused agenda for gaining suggestions that improves customer experience.

Overall, my keenest memory of that flight was an image of the interior cabin, aglow with luminescent knee-high green lights, as passengers throughout the cabin – their needs met — moved their electrically-powered lives forward.

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