Innovating Insights

8/14/2019 Innovating Insights

1/31

Can 21st Century Marketers Count on Researchfor Insight and Intelligence?

INNOVATING INSIGHTS:

Jennifer Hanson

Sequoia Partners

Inventors of the realsight insights method


2/31

Sequoia Partners 2010 Confidential

SequoiaPartners

Consumer Understanding = Success

Measurable/Projectable Insights

Expectations/Motivations

Business Application


3/31


SequoiaPartners

Cycle of Failure

INSIGHTS & IDEAS

IN MARKETFAILURES

REDUCED

BUDGETS


4/31


SequoiaPartners

The Research Industry: Aiding and Abetting

ConsolidationEconomies of Scale vs. Useful Information

Reliance on Historical Databases

Benchmarking against old ideas

Underutilizing Technology

Same information, just faster and cheaper


5/31


SequoiaPartners

Lack of Innovation for 21st Century Marketers

Same methods, same data, same results:

Standard questions

Standard industry data

Qualitative tunnel vision

Professional respondents


6/31


SequoiaPartners

The Groundhog in the Room

20th century insights methods simply DO NOT WORK.

Surveys

Focus Groups

Short-term observations

DAY ONE DAY THREEDAY TWO


7/31


SequoiaPartners

HOW DO WE INVEST

IN OUR BUSINESS?

Lack of understanding about consumers

Brands losing competitive edgeInefficient spending

REDUCED ROI AND SHAREHOLDER VALUE


8/31


SequoiaPartners

Partner with the Consumer

Weve pushed them away Weve ignored them

We lose their loyalty


9/31


SequoiaPartners

Understand Satisfaction

being satisfied means consumers have found a solution to meet their

expectations, even if it requires a system of many inefficient steps to

get to the end goal

this is why satisfaction is proven to explain only 8% of repeat usage.

Consumers are satisfied 75-85% of the time with any product or service


10/31


SequoiaPartners

IPOD Tivo Wii

The Innovation

The System


11/31


SequoiaPartners

Consumers Have Changed The Rules

Blurring of snacks and meals

snacks are now meals


12/31


SequoiaPartners


Blurring of medicine and nutrition

nutrition is now medicine


13/31


SequoiaPartners


Blurring of media and entertainment

media is now entertainment


14/31


SequoiaPartners

ninety-five percent of thinking takes place in the unconscious mind

Jerome Kagan, Surprise, Uncertainty and Mental Structures

rather than guiding or controlling behavior, consciousness seems

mainly to make sense of behavior after it is executed.George Lowenstein, The Creative Destruction of Decision Research

Understanding Consumers Starts in their Heads


15/31


SequoiaPartners

What Needs to Change

Focus on the broader context of decisions, NOT on the product

Focus on the reasons behind repeat usage vs. initial purchase

Accept the consumers perspective, even if it differs from our own


16/31


SequoiaPartners

The Research Challenge

Provide Quantitative Insights - Measurable/Projectable

Provide Qualitative Insights - Expectations/Motivations

Provide Strategic Guidance - Business Applications


17/31


SequoiaPartners

The 21st Century Solution: realsight insights method

Video Cameras,

Audio Recordings,

Written Diaries,

Forums, Surveys

Statistical

Analysis

of Text and Videos

SuccessfulBrandGrowth

Extended

Engagement

via Community

Qualitative

Analysis

of Behavior Using

Academic Theories

An observational technology system that delivers more accurate,

complete and actionable ways to grow brands:

1. more complete information about consumer decisions

2. deeper understanding of expectations and motivations

3. new ways to deliver competitive advantages


18/31


SequoiaPartners

How it works

Video cameras capture incidents of usein daily life for 3-4 weeks

Quantify behavior

Comparisons with online diary

Proprietary analysis using unique applicationof statistical, sociological, psychological and

anthropological tools.


19/31


SequoiaPartners

What it uncovers

Archetypal Consumer Experiences


20/31


SequoiaPartners

How it is applied

What is convenience in the morning?

Most companies focus on the rational grab n go definition of convenience.

We discovered 3 common behavioral patterns that represented different aspects of

convenience in the morning.

One of the three, multi-tasking is a larger and more emotionally rich consumer opportunity.


21/31


SequoiaPartners

How it is applied

What is the best entry point into snacking with my new product idea?

Restructured the category of the new product idea to a consumer defined marketplace,

transformed a $2B fragmented category with a single product format and no clear point of

entry into a $41B consumer defined market.

The consumer-defined market resulted in discovering a $2B market for the existing product

idea and an emerging $3B snack market previously ignored for the long-term pipeline.


22/31


SequoiaPartners

WHAT MAKES IT DIFFERENT

Focus on what people DO, not what they SAY

Quantifiable data with qualitative understanding

Demonstrates and validates opportunities and ideas

CONSUMERS SHOW YOU WHERE TO GO AND HOW TO GET THERE


23/31


SequoiaPartners

SAY SAY & DO

from to

low

fast

low to average

SPEED

COST

ACCURACY high

average

average

Extended data collection:

1. Observations as they occur, 3+ days2. In person interviews

CHANGES

Multiple work streams:

1. Interview + observation

2. Real-time analysis

3. Multimedia reporting

Superior results:

1. More complete view of consumers

2. Deeper understanding of motivations

3. Better ideas and investment decisions

A positive shift in the marketplace: Improved Quality & Accuracy

lowQUALITY high


24/31


25/31


SequoiaPartners

Cycle of Success

BETTER

INSIGHTS & IDEAS

IN MARKETSUCCESS

INCREASED

BUDGETS


26/31


SequoiaPartners

There is always risk

GARBAGE IN, GARBAGE OUT!


27/31


SequoiaPartners

The realsight insights method has uncovered validated consumer defined ways to...

Create emotional messages tied to product experiences

Strengthen brand equity at purchase and usage

Source volume from brands outside traditional category definitions

Target the multiple dimensions of common need states

Grow through redefining channels of purchase

Tap into habitual and auto pilot choices often unreported

Identify ideas from consumer work-arounds and trade-offs

Maximize portfolio growth


28/31


SequoiaPartners

Anyone can use it


29/31

S i P t 2010 C fid ti l


30/31


SequoiaPartners

Marketing success can only come from 21st Century research practices

Bridge the knowledge gap between consumers and corporations

Focus on the broader context of decisions, NOT on the product

Focus on what people DO, not what they SAY


31/31

We help our clients focus on the right opportunities that work for

consumers everyday lives from the start, saving precious time, money

and becoming more profitable in the end.

Brand Growth Through

Consumer Experiences

Sequoia PartnersP.O. Box 235, Pequabuck, CT 06781

(888) 316-1723, [email protected]

Innovating Insights

Documents