The Strategic Use of Research

© 2003 Firebox Research & Strategy LLC

The Strategic Use of Research

Presented to:Precision Printing Marketing Seminar SeriesOctober 22/23, 2003

Michael SchillerFirebox Research & Strategy LLCwith

DecisionPoint Marketing & Research


Agenda

• Research– The traditional approach versus an actionable approach

• Key to effective research– Match methods to goals

• Case Study: Retailer• Case Study: Direct Marketer• Case Study: Online Sales


The Tradition of Corporate ResearchDecorative additions to office shelves

Someone says… “Hey, we need some research!”

• So you– do some focus groups– and maybe a survey

• And you get a picture of the market– But it’s not much more than a

snapshot of your market at a single point in time

– You know where you are

• And then its gets put on a shelf– And there it sits…something a

professor would be proud of!

Man, this will look

good on my shelf!


Good Research is ActionableDelivering insight into what to do

It’s not about data or even information…it’s about knowledge

– Data is raw– Information is organized– Knowledge is actionable

• To get a rate of return on your marketing dollar$, you need knowledge about

– your customers– your competitors– your markets

that will allow you to take action

“Ok, we are here… and we want to be

here!”


The Key to Effective ResearchKnowing you business goals

Focus first on your goals…and then seek answers to the key questions

• What are we trying to do?– Clearly define your goals and

objectives

• Objectives will in turn drive the questions you need answers to to take action that will enable you to achieve your objectives

• The types and nature of questions you ask will drive the research methods you choose The key to action is building a roadmap

based upon knowledge

Who?What?

When?Where?

Why?

How?


MethodsThe questions determine what you do

The method toolbox is diverse…

• Qualitative Research– Valid information– Understanding– Causes– Process

• Quantitative Research– Reliable– Counting– Attitudes and Behaviors– Statistically analyzable

• Non-obtrusive measuresWhere the act of the research doesn’t

impact the behavior of the respondents– Ethnographies– Observation– Data mining/modeling

• Obtrusive measuresWhere the research involves direct

interaction

– Focus group sessions– Mini-group sessions– Interviews– Surveys– Diaries


Case Study: Retailer


Competitive PositioningBeating the competition in retailing

What the client wanted to do…

• Primary marketing goals were to– Increase the number of customers– Increase the size of the average

sale– Position against competitor-driven

erosion of market share

What we delivered…

• A multi-phase research program that– Built knowledge across each phase– Gained insight into the customer,

competitors and markets using multiple research techniques


Research DesignThe questions determine what you do

What we did

POSAnalysis

Store profileStore segmentation

Data mining &modeling

StoreInterviews

Customer Profile“Product” Analysis

ObservationExpert Interviews

Environmental Analysis

CustomerIntercepts

CustomerProfiling

ConsumerInterviews

FocusGroups

Brand Image,Selection &

Decision Process

DiscussionGroups

MarketSurvey

Market Analysis& Segmentation

PhoneSurvey

Techniques Used

What was delivered


POS AnalysisData Mining & Modeling

Objective• Understand product movement

relationships and store patterns

Analytical Method• Utilized sales data from 60 store

– Data at the department level– Three years of sales and gross

profits

• Statistical techniques– Factor analysis– Cluster analysis

Results• Discovered five product groups

– Products that tend to sell together

• Discovered six types of stores– Based on store sales patterns

Implications• Promotional product offers to increase

sales• Identified “optimum” stores for resource

management and future site selection


Store InterviewsEnvironmental analysis

Objective• Gain perspective on customer profile

and in-store behavior

Analytical Method• Store selection

– Sample of each type of store• Interviews

– Qualitative interviews with store managers and sales clerks

• Observation– Watched customers as they

browsed and made purchases• Environmental audit

– Photo survey of merchandising environment

Results• Discovered customer mix, shopping

patterns and visitation frequency

Implications• Loyalty programs

• Merchandising enhancements


Customer InterceptsProfiling

Objective• Learn who customers and where they

come from

Analytical Method• Store selection

– Sample of each type of store• Interviews

– Three minute interviews with customers in the stores

Results• Profiled current customers

– Demographic profile– Point-of-origin– Visitation frequency– Purchase patterns– Competitor usage

Implications• Geographic targeting opportunities to

attract more, similar customers

• Promotional product offers to increase sales


Focus Group SessionsHow and what customers think

Objective• Learn what customers think about the

client and competitor stores • How customers make their store

selection decisions• Understand why customers buy what

they buy• Test store design concepts and

marketing communication concepts

Analytical Method• Focus group sessions

– 90 minute discussions– Customers and non-customers– Multiple geographies

Results• Brand image of our client and their key

competitors• Why customers choose particular

stores to meet their needs• What the “ideal store” should look like

to improve customer satisfaction and repeat visitation

Implications• Branding themes that will differentiate

the client in the market• Store presentations of the brand that

will have the greatest effect• Advertising concepts that will attract the

most attention


Market AnalysisSurvey of the total market

Objective• Quantify what we learned in the

previous phases• Create market segments for refining of

marketing communication and merchandising strategies

• Create a benchmark for comparing store brands and customer values

Analytical Method• Telephone survey

– 12 minute phone interview– All category shoppers– Multiple geographies– 600 interviews – statistical

significance (+/- 4%)

Results• Quantified client and key competitor

market share • Mapped customers and customer

segments against brand preference and usage

• Identified positioning concept most likely to succeed

• Defined scope of store trade areas

Implications• Targeting of competitors for “protection”

versus aggressive customer attraction• Identified opportunities for new market

segment exploitation


And the client…What did they do?

• Acting upon the learning, the client– Redesigned their stores to strengthen the things customers liked and

eliminate the things they didn’t– Launched a revised branding campaign based on the concept executions

that proved the strongest– Launched promotional programs that tied products together for purchase– Launched a marketing communications program very different from the

previous campaigns

• With the result of– Increased sales per square foot among existing stores– Improved customer satisfaction with store presentation and performance– Estimated recapture of lost customers


Case Study: Direct Marketer


Improved CommunicationCreating better, higher response documents


• Primary marketing goal was to improve response rates to a health care program direct mail piece


• A series of focus group sessions with target market consumers


Focus Group SessionsHow and what customers think

Objective• Learn what customers know about the

health care programs they are eligible for

• Gain insight into how they feel about their health care providers

• Test letter body copy and visual presentation

Analytical Method• Focus group sessions

– 90 minute discussions– Eligible participants

Results• Learned what they liked and disliked

about direct mail• Identified the content most likely to

attract interest and attention

Implications• Identified an opportunity to increase

participation by redesigning the insert materials and “professionalizing” the mailing envelope



• Acting upon the learning, the client redesigned their mailings by– Modifying letter content– Changing the layout of the letter– Adding a response card– Providing additional contact points by phone and internet

• Still waiting on results…


Case Study: Online Sales


Redesigned Web SiteRe-engineering a website


• Primary marketing objective was to redesign their website to better support sales through their distributors and to strengthen their online presence against dedicated web marketers


• A sophisticated web usability test program


Research ObjectivesSeven Major Areas of Concern

1. Assess the overall user friendlinessof the site

2. Assess the ease with which users are able to find what they are looking foron the site whether they are searching for information, product choices and specifications, ordering instructions or other items of interest

3. Assess the quality and depth of information provided by the site in terms of meeting the requirements of the target user populations

4. Assess usefulness of the site in supporting product selection and decision-making for each of the target user populations

5. Assess effectiveness of the site at communicating the brand value of the manufacturer and the quality of the products

6. Assess the graphical presentationand quality of the visual site experience

7. Assess how well the site performs its functional and content objectivesrelative to those of competitors and best in class performers


Test MethodComplete control of the test experience

• Group experience– Sessions lasted about 2.5 hours – Completed at a specially designed

facility– Four sessions were conducted –

four market segments - consisting of 4 to 5 participants each

• Session consisted of three steps– Participant objective briefing– On-line task execution– Post-task discussion of sites

experienced

• Tasks were designed to assess functionality effectiveness

– Allowed 1 hour for online experience

– Three sites were used

• Discussion groups focused on review of the sites by task and comparison between sites on other factors

– Screen shots were utilized of all sites

• Data collection– Keystroke/page flow recording– Video recording– Audio recording


The DecisionPoint FacilityA Quick Tour…

Main Discussion Room

Foyer

Recruiting CallCenter

Kitchen

Restroom

A / VCenter

Web UsabilityLab

19’ x 14’

MainDiscussion

Room

26’ x 16’6”

PrivateOffices

PrivateOffices

PrivateOffices

Integrated Viewing Room15’ x 18’ & 17’9” x 14’6”

Food &BeverageService

Street Entrance(Public)

Client Entrance

MainLobby

ClientRestroom

Building Entrance

Public Restrooms(Hall Access)

Hallway

Foyer

Recruiting CallCenter

Kitchen

Restroom

A / VCenter

Web UsabilityLab

19’ x 14’

MainDiscussion

Room

26’ x 16’6”

PrivateOffices

PrivateOffices

PrivateOffices

PrivateOffices

PrivateOffices

PrivateOffices

Integrated Viewing Room15’ x 18’ & 17’9” x 14’6”

Food &BeverageService

Street Entrance(Public)

Client Entrance

MainLobby

ClientRestroom

ClientRestroom

Building Entrance

Public Restrooms(Hall Access)

Hallway

Flexible Floor Plan

Web Usability Lab



• Acting upon the learning, the client redesigned their website by– Changing the graphical presentation to make it more visually appealing

and easier to see navigational tools– Improved the functional components of the site to make it easier to learn

about product, find the right product and order items from the dealer of their choice

• With the result of– Planning on a retest of improved site later this year


Questions?

The Strategic Use of Research

Documents

Transcript of The Strategic Use of Research