Qualitative Research in Segmentation

Qualitative

Why you need it & how to get value

Presented by: Susan AbbottAbbott Research & Consultingwww.abbottresearch.com

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Abbott Research & Consulting 2006,2007

Wouldn’t you love a business like this?

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1% of owners buy pet health insurance

Why do only 1% buy insurance?

Was this market lying dormant for decades? Or did something change?

An estimated 1,300 companies, including Viacom, Ford Motor Co. offer pet insurance to their employees.

STARTRIBUNE.COM | 9.11.06

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Is Curves Right for Me?

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How do you get this without qualitative?

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Standard Chartered Segmentation

Developing Loyals I

Share of customers 9%

Share of profits 44%

Highest asset balance across segments

25% of segment has high bank assets

Liabilities low

Developing Loyals I

Share of customers 9%

Share of profits 44%

Highest asset balance across segments

25% of segment has high bank assets

Liabilities low

Now

what?

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What are your goals?

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Where are we going?

1. When to use

2. Designing the study: scope parameters

3. Interpreting and using the insights

4. Emerging trends in qualitative

5. Hybrid quali-quant research techniques

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When to use: before you design a model

Develop hypotheses A priori segmentation ideas Formulate ideas about how you would use segmentation based on understanding of

customers

Get organized to build model

Deepen Learning

Build Model

Use

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When to use: after you build the model

To understand each segment better Test different communication strategies with segments Feedback on concepts from segments All your research should incorporate segment knowledge


Deepen Learning

Build Model

Use

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When to use: during ??

Recruit respondents from the quantitative survey You may now know what segment they are in Instantly have a group for follow-up qualitative research


Deepen Learning

Build Model

Use

Designing the Study

Scope & Parameters

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Who do you want to talk to?

Be exact Customers or non-customers? Users or

non-users? Recent experience Widest possible profile

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Scope: Cost vs. Payoff

What is the total investment in the segmentation project?

10:1 rule of thumb

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Quali-Quant Methods

Adding quantitative data gathering to a qualitative method Good idea when you can’t get a large sample

E.g. CEO interviews – unlikely to get sample of 300

Content analysis methods can be revealing E.g. word cloud diagrams

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How to interpret findings

You are paying for insight, not methodology

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What you want insight about

Language used, metaphors

Usage, context, occasions & sequence

Motivations & desires

Goals & alternative solutions

Problems

Experiences & stories

Influencers

Emotions and feelings

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How to look for patterns

“pattern recognition begins with variation recognition”

Cultural anthropologist Grant McCracken

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Teens and technology project

First off - I am constantly left on. Sometimes even overnight. She leaves me in her purse all day. It's stuffy in that tiny pocket shared with all of her other items! I feel like my battery is being charged everyother day from all of the use I get. Luckily, I haven't been dropped, scratched thrown or anything else, so I am in top condition. I've seen her other friend's cellphones and I consider myself very lucky.

i got the cell for two reasons one privacy i can't count the number of times my mom picked up the phone when it was for me i'd say "don't pick it up but she would and start trying to have a conversation with them.the second reason is my friends always wants to know where am at so we could get together and chill

Methods

New and emerging

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Interviews & Dyads

In-person or on phone Can add web-meeting for audio-visual Can add web-cam if needed When interaction can hurt the analysis Where group influence is feared Where you need to cover more ground Where they’ll never come to a group

(e.g. lapsed users)

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Focus Groups & Roundtables

When discussion and interaction aids understanding

When you can get people in a room together

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Text Chat: Online Focus Group

Whiteboard

Respond here

The Discussion

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Online Discussion Forum / Bulletin Board

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Ethnography

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Games, customer workshops

Develop hypotheses Develop action plan

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Emerging – Instant Messaging11

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Emerging – Webcam22

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Blogs, communities, virtual worlds

Blogs and electronic journals/diaries Online communities What’s next

Virtual worlds

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Qualitative inside the organization

Facilitated workshop to develop a plan Interviews and focus groups to gather input

from all stakeholders Understand how groups are handling

segments today E.g. relationship strategy, sales strategy

Develop buy-in for new approach

Best Practices

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Collaborate

Bring the researcher in early to assist in scoping and design Particularly important if you do not have in-house research staff

Involve as many company insiders as you can Insight in planning Buy-in to execution Variety of perspectives Watching is more compelling than reading a report Participating is more compelling than watching

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Before, During and After

Plan for when you can get the best use of the qualitative


Deepen Learning

Build Model

Use

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Keep researching…

Some things don’t change How our brains are hardwired Our need for sustenance Our desire for safety, security, self-

confidence, etc. How we age How taste-buds work The stages of child development People tend to form some kind of

family or social group

Some things change constantly

How we respond to the culture around us

Our ways of meeting our needs and desires

Our expectations and aspirations Our roles within the social groups and

families

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We are not our customers.

The more you understand your customer segments, the more competitive you can become.

Remember …

Thank you!Questions?

Susan AbbottWeb: www.abbottresearch.comE-mail: [email protected]: www.arc.typepad.com/customercrossroadsPhone: 416-481-7409 or 888-244-0285

Qualitative Research in Segmentation

Business

Transcript of Qualitative Research in Segmentation