As discussed recently in the blog Forging a Clear Path to Corporate Innovation, involving consumers in the innovation process leads to a richer pipeline of new product ideas. Even in the absence of this approach, companies are constantly generating ideas for new products. With all these ideas coming in—from consumers, employees, management, consultants—on which should management develop into full concepts for testing?
Given the relatively low rate of success for new product launches (less than 3% of new consumer packaged goods exceed first-year sales of $50 million—considered the benchmark of a highly successful launch; HBR, April 2011), and the cost and time in developing and testing concepts, selecting the right ideas for deeper concept testing is critical.
A clear definition of innovation, leadership who supports it and employees empowered to execute it are hallmarks of a strong innovation-oriented company. But, as my colleague Paul Donagher noted in Innovation Journey: Is It Better to be Lucky or Good?, the voice of the consumer is also important to product development research though including the right kind of consumer along the Innovation Journey is critical.
To include consumers in idea generation, we need a repeatable and reliable process that produces groundbreaking, market-relevant concepts by bringing creative individuals and forward-thinking consumers into the innovation process. This consumer-oriented process includes the following steps:
In May of this year, Applebee’s introduced its “hand-cut steaks over wood-fired grill” menu. It was a $40 million investment, and it hasn’t gone too well. In fact, Q2 sales were down 4%. It seems that, as far as consumers see it, wood-fired grilled steak is a blip for a brand that needs to do more than reconfigure kitchens to grill steaks. It’s still a steak at Applebee’s, and consumers aren’t biting (so to speak).
But the question that led to the initiative was right: how do you stay relevant when Millennials shun big chains and brands? Continue reading →
I just returned from the 2015 Corporate Researchers Conference in St. Louis—a well-run conference with a fair, though not quite balanced, cross section of brands and solution providers. I made some new friends, met some old friends, ate too much, stayed at an attractively remodeled hotel and saw some good presentations from very smart people.
There were many great themes, and the rapid adaptation of technologies for the purpose of data collection and management fueled much discussion, including our own presentation, How Technology Has Transformed Consumer Journey Research. But there was another prominent theme behind the presentations and parties. Once again I heard brands lamenting the lack of deep insight in an upper management-digestible form and providers lamenting the lack of time (as a function of revenue) to create deep insight in an upper management-digestible form. You know what I heard at conferences in 2005? Brands lamenting the lack of deep insight and providers lamenting the lack of time to create deep insight. What about 1995? The same.
With all these great technologies and the chasm growing between the what and where of data analytics and the why of attitudinal analytics, perhaps it’s time to face some truths so the undertone of an MR conference in 2025 isn’t that brands want more insight and providers want more time to provide insights. Oh, who are we kidding? If that’s the conversation in 2025, our industry will no longer be viable in that economy and others will have heeded the call. So what are some truths we should face?
Editor’s Note: Read how an American multinational CPG manufacturer set out to understand the online shopper mindset and pinpoint the key interactions that lure consumers to their aisles.
Three years ago, Harvard Business Review labeled Data Scientist the sexiest job of the 21st Century. This pronouncement sent The Big Bang Theory to the top of syndication and made a Data Insights Department de rigueur in every firm that wanted to be taken seriously in marketing research consulting.
No doubt data analytics is a critical tool in predicting consumer behavior, but savvy research firms are combining this data with attitudinal data collected using creative methods to help brands understand the reason behind the behavior and to remap the new consumer shopping journey.
I recently attended the 25th DistribuTECH Conference and Exhibition. As part of the conference, I attended the Smart Grid Consumer Collaborative Symposium. Since my team and I conducted much of the research that was presented, I knew the content, but was interested in hearing the opinions of others at the meetings. You’ll have to visit the SGCC website to download the 2015 State of the Consumer Report, and I encourage you to do so, but much of what was discussed, and much of what we at Market Strategies have been advocating over the past year or two is that consumers clearly want the benefits that come with smart grid and smart meters, they just don’t necessarily want to talk about smart grids and smart meters. Awareness of, and favorability toward, the terms “smart grid” and “smart meter” has not changed much over the past 3-5 years. Yet consumers are more interested than ever in the benefits that come from these technologies.
We are emotional, rather than rational beings. Decisions are made at a subconscious level, though we like to think we are making rational decisions. There is a level of emotional engagement with the things we see and do. That is why constructively engaging customers in a manner they choose, with services and products they find beneficial, can lead to greater customer loyalty. The evidence is clear—engaged customers are more satisfied, more profitable and more loyal.
Loyal customers generally fall into one of three categories. There are Passive Loyals, Captive Loyals and Passionate Loyals, each requiring different methods to engage—and stay engaged.
How Energy Utilities Have Redefined Program Marketing
It seems hard to believe now, but from the turn of the century to 2008 Market Strategies International did not conduct a single segmentation study for an energy utility client. Since 2009, we have completed about a dozen.
What changed? Many utilities discovered a need to find more efficient and effective ways to market their energy efficiency, demand response and smart meter-enabled programs and services. Segmentation, a proven tool used widely in other industries, was ready to help meet these challenges.
Now that a critical mass of energy utilities has created sophisticated segmentation frameworks, we can begin to understand and measure the bottom line benefits. Understanding and applying segmentation in day-to-day operations can be a challenge. Nevertheless, there are a growing number of success stories that show how utilities are gaining real value from their investments in residential and business segmentation.
Did the Denver Broncos overpromise and under-deliver? In a contest billed as the unstoppable force versus the immovable object, the object dominated the force from start to finish.
Had you conducted a key driver analysis to the Super Bowl Championship for the Denver Broncos a few years ago, the driver with the most impact would likely have been to change the quarterback. Releasing Tim Tebow and eventually signing one of the greatest quarterbacks of all time, Peyton Manning, was a seismic shift toward the goal of winning the Super Bowl. Yet they failed to deliver.
In Market Strategies International’s E2 (Energy+Environment) study we, once again, see an uptick in consumer views that the US is heading in the right direction with regard to energy issues. And continuing a positive trend dating back to the Deepwater Horizon oil spill in the summer of 2010, electric and natural gas utilities are considered credible sources of information on environmental issues by almost 3 out of 4 consumers.
It doesn’t hurt that the industry is also being carried by another wave–technology–allowing us to engage our customers as never before.