My Mom Was Right…

April 13th, 2012

My Mom always said that the best parties are the ones where people do not already know each other. If they are all “office people” they will talk about the office; if they are all parents of 5th graders they will talk about the happenings in the 5th grade.

I went to a lecture this week by Jonah Lehrer whose book Imagine just hit #1 on the NY Times Non-Fiction Bestseller List. The lecture was titled “Creativity and the Brain: What is it, who has it and how do we achieve it?”

I would not have guessed that Jonah shares a view (and has the data to back it up) that is very similar to my Mom when she is planning a party!

And the view is this…an entrepreneur with a wider social network is more likely to be successful. As Jonah put it, don’t only hang out with people like you. Hang out with engineers and gardeners and artists and scientists and kindergarten teachers. He shared that now he is that annoying person on a plane who will talk to you when you have your nose in a book or are writing a presentation.

Jonah and my Mom posit that the formula for success, whether it be an entrepreneurial venture or a dinner party is a wide variety of people whose stories and experiences enrich the venture, whatever it may be.

What is the lesson here for research tools and techniques, particularly those that are exploratory in nature? Maybe we go beyond “customers and prospects.” What can we learn from non-users? Optimization Group will be pondering this as we plan both projects and parties…

ABOUT THE AUTHOR
Renee Cameron is Global Account Director and one of the founding partners of Optimization Group. She works with clients to produce customized marketing analytics and contributes her expertise to product development. She has over 15 years of experience in advertising and market research.

Her depth of experience, from customer satisfaction to new product development research, enables her to develop actionable research recommendations for clients. She received her Bachelor’s degree in Psychology from The University of Dayton and her MBA from The University of Cincinnati.

Her work has been honored by multiple professional associations. Her professional honors include three Effie awards from the American Marketing Association and two AME International Awards.

Don’t Throw Out All The “Old Stuff”

March 16th, 2012

This morning, I spotted a link to an article on LinkedIn® entitled “The Old Marketing Methods Are Dead.”  And, I clicked on the link – I guess that’s proof that digital works.  I was compelled to take action and consume information that would not have been on my radar screen without that link staring me in the face.   So that proves it – new marketing methods work!  (Don’t you just love anecdotal evidence?)

But just because new marketing methods may work, does that mean that old marketing methods are dead?

Having conducted Return-on-Marketing-Investment (ROMI) analyses for clients across many different industries, we have found what appears to be a common result:  the decision to deploy “new marketing methods” versus “old marketing methods” should not be an either/or decision.   The best success comes from finding the right mix.  We also continue to learn that there this no magic “right mix” across categories – or even for different products within the same category.   The blend of marketing activities that optimizes a sales effect varies by product and by even target customer segment.

For a durable goods client, we discovered that TV continues to do “the heavy lifting.”  Television AND Outdoor really moves the needle, but only when launching a new product.  And a recent analysis for a services firm concluded that newspaper … dubbed “the dying media” … did the best job in activating requests for information.  In this case, digital pay-for-click reached a different segment and the effect was additive.   One client routinely invests about 10% of their budget in emerging media … we’ve seen mobile spike sales and building-wraps pay out.  But there was also a bedrock base of traditional activity that demonstrated solid contribution … especially when interactions between the various activities were factored in.

I certainly applaud all of the people who are working hard to develop, test and rollout “the new marketing methods.”  It’s fun.  It’s cool.  It’s great cocktail party conversation.   But this grey-hair can’t help but bristle at a headline warning that “Old Marketing” is dead.   The evidence simply doesn’t support it.

ABOUT THE AUTHOR
Jeff Ewald is the founder of Optimization Group and the chief architect of the IdeaLoopz process. He has held research and senior marketing positions on both marketer and agency sides. Jeff’s career has been notable for his efforts in making marketing measurably effective. His work has been widely published, and a collaboration with Howard Moskowitz earned honors from the ESOMAR in 2001.Jeff’s professional career has included time at General Mills, Campbell’s Soup and J. Walter Thompson. He has been an Adjunct Professor of Marketing at Wayne State University in Detroit. A former professional musician, Jeff will share road stories if prompted.

 

MONEYBALL: Statistics Makes Its Hollywood Premiere

February 27th, 2012

UPDATE: MONEYBALL starring Brad Pitt almost wins the Oscar for Best Picture!

Imagine that you are a movie mogul looking for the next big hit. Two screenwriters come to you with a great idea for a baseball movie starring Brad Pitt. It combines America’s favorite pastime with one of Hollywood’s biggest names. It sounds like a sure hit. The next obvious question is, “What’s the storyline? “, to which the writers enthusiastically answer, “It’s about statistics!”

Though there is obviously more to the story, it is true that statistics plays a key role in the movie Moneyball . The film premiered this past fall and, though it has not become a major blockbuster, it has received some critical acclaim. Now, we aren’t movie reviewers. We’ll leave that to the experts. However, we are excited that a major motion picture shows the competitive advantage that can be had from statistical analysis (yes, we really ARE that nerdy).

Moneyball, adapted from a book by Michael Lewis, author of The Blind Side, is about General Manager Billy Beane and the Oakland Athletics. Beginning in 1997, Beane builds the club into one of the top American League Teams, despite the players being paid near the bottom of the pay scale. He does it by employing statistical analysis, or in this case, a type of analysis, called Sabermetrics. (For more information about Sabermetrics, see How Sabermetrics Works).

In a nutshell, Sabermetrics applies statistical analysis to objective data in order to calculate a team’s optimal performance. It’s the same principle that is used in determining the ROI of a marketing campaign (that’s why we are so giddy)…look at existing data, determine those elements that are most valuable and predictive, build the campaign and, “swing for the bleachers.”

ABOUT THE AUTHOR
Jon Griffin is an Account Manager for Optimization Group. Jon has had extensive experience in developing and leading marketing teams in both corporate and agency settings. His experience includes broadcasting, marketing communications, account management and creative direction. Jon has led project teams for companies such as Ford, Johnson Controls, HON, Steelcase and Kemin. He holds a B.A. in Communications and an M.M. in Management.
Jon is responsible for the day to day management of research projects. He works with clients to clearly define the objectives of the research to assure Optimization Group’s work meets those objectives. In addition, he leads Optimization Group’s internal teams to the successful completion of research projects.

 

The Chief Marketing Officer’s Challenge

February 16th, 2012

Recently, it seems as though every time I turn around, there’s another new catch phrase or technology demanding to be seen as the centerpiece of marketing: mobile marketing, social media, customer experience, customer satisfaction as strategy, lead nuturing, QRCs, etc.

Corporations and marketers are diving head first into the technologies and trends as if they solve all marketing problems. And, of course, no one wants to be left behind.

Here’s the problem: As the mechanisms and technologies multiply, so do the corporate bureaucracies. There are social media managers, mobile marketing managers, customer experience managers, and on and on. All this, of course, is on top of the traditional product managers, corporate communications managers, Web masters, etc.

It is quickly reaching the point that all these managers are developing tactics that quite often overwhelm the organization’s marketing strategy. Each part of the bureaucracy sets out a “strategy” – mobile, social, etc. But, in fact, to be successful as an organization, each of these “strategies” should be considered tactics used to achieve the corporate goals.

Bureaucracies exist to be self-sustaining and expansionist. Turf wars develop. Chinese walls are erected to protect areas from intrusion from other areas.

Pity the poor CMO.

As technologies and communications mechanisms evolve and multiply – a trend that does not look to be slowing down – how can any reasonable person be expected to stay on top of it all? How can he/she be expected to ensure that the mini-strategies (tactics to the rest of us) actually coalesce into something that supports the corporate goals of increasing market share and ROI?

The CMO’s challenge for the 21st century is not merely to stay on top of marketplace trends and emerging marketing mechanisms, as it was in the 20th century. The challenge is to prevent mixed messages, fractured tactics, and the growth of mini-empires based on technology from overwhelming the whole.

The CMO’s challenge for the 21st century is to ensure the integration and unity of the entire organization’s marketing efforts. The CMO’s challenge is to prevent the dis-integration of marketing.

ABOUT THE AUTHOR
Dr. Emily R. Coleman has more than 20 years of hands-on executive experience and expertise in business operations management, change management, and marketing. Her range and depth of experience have created an ability to cut to the heart of issues and create real-world results in a timely fashion.Coleman has managed her own company since 1984, working with clients ranging from Fortune 100 firms to entrepreneurial enterprises. The depth and breadth of her engagements has given her hands-on and P&L responsibility in a wide range of operational areas. Her industry experience is extensive, ranging from high tech and telecom to insurance to import/export management to manufacturing.Coleman excels at taking the “best practices” from each industry sector and applying them to the problem at hand. She is quickly assimilated into her client’s executive teams and routinely trusted with both financial and personnel responsibilities. Her compassionate objectivity, pragmatic fiscal approach and multi-disciplined perspective to solving business problems set her apart as an interim leader.
For more information, visit Competitive Advantage Marketing and Management

 

The Rise of DIY in Market Research

February 10th, 2012

Several LinkedIn Groups have been discussing the effect of the various Do-It-Yourself (DIY) tools now available to those who want to create online surveys. Many of those tools are either very inexpensive or in some cases, free.  Because the barriers to entry are now so low, some client-side researchers (and non-researchers) are taking advantage of their ability to field studies without hiring external MR experts.

Does this trend signal the decline or demise of the MR industry?  From our standpoint, the answer is no.

DIY tools certainly have their place and can be efficient ways to get the job done, provided their users clearly understand the limitations – both those of the tool and those of their own knowledge.  When I can look above my desk and see thick tomes discussing various marketing scales and their proper survey applications, I have to believe that the average DIY tool user is less than optimally educated in survey design.  As my family will gleefully testify, my ability to purchase the requisite tools and “How-To” books does not make me a carpenter, or a plumber (don’t ask).  If the task is simple enough, though, I have a good chance of saving myself real money and time by tackling it myself.  Therein lies the first challenge:  learn how to tactfully advise clients on when and when not to exercise their own “carpentry” skills.

The rise in DIY tool use also ties into another significant trend:  the commoditization of quantitative data collection. Only in the past decade has technology allowed almost anyone this kind of access to tools, platforms, and processes to reach an audience.  We now compete with clients and prospects on a playing field we once owned. Our response should not be to compete directly with the low or no cost options.  Instead, we must face our second challenge:  continue to emphasize delivering value to clients by providing sound study design, accurate and thoughtful analysis, actionable insights, and insight-driven consulting services.   That is where the market still sees value.

The market research industry is certainly not doomed. But it is changing, and quickly. For a profession based on expanding knowledge and uncovering insights, change should be a good thing.

ABOUT THE AUTHOR
Tom Thompson is Director of New Business Development for Optimization Group.

As an accomplished executive with international experience, Tom provides our clients with extensive experience and knowledge of marketing analytics and research, client services, quality management and operations management. Prior to joining the Optimization Group, Tom held senior sales and account management positions in Market Research, Marketing Services, and Quality Management, including time as the Market Research Director for the largest Customer Satisfaction Measurement program in the automotive industry. He also implemented an ISO9000 quality standards certification process and administered multiple Six Sigma trainings. In addition, Tom gained international experience by opening offices and launching programs in Brazil, India and Canada.

Tom is a graduate from the University of Michigan. He is a member of Business Development Stars.

 

How Confident are America’s Marketers?

February 1st, 2012

Consumer confidence has long been looked to as a bell weather of the health of the economy.  Yet no such index exits to measure the confidence of Marketing Managers….until now.

In an effort to establish a reliable of measure marketing confidence, Optimization Group surveyed Marketing Managers across multiple industries.  The results of the survey revealed that the key factor in Marketing Confidence is aligning one’s executive management team with marketing objectives. However, the majority of Marketing Managers indicate that they rely on other factors to gain confidence.

To learn about other factors that contribute to marketing confidence, download the free whitepaper Marketing Confidence Report: How Confident Are America’s Marketers?

ABOUT THE AUTHOR
Jeff Ewald is the founder of Optimization Group and the chief architect of the IdeaLoopz process. He has held research and senior marketing positions on both marketer and agency sides. Jeff’s career has been notable for his efforts in making marketing measurably effective. His work has been widely published, and a collaboration with Howard Moskowitz earned honors from the ESOMAR in 2001.

Jeff’s professional career has included time at General Mills, Campbell’s Soup and J. Walter Thompson. He has been an Adjunct Professor of Marketing at Wayne State University in Detroit. A former professional musician, Jeff will share road stories if prompted.

 

Do Your Customers “Belong” To Your Brand?

December 14th, 2011

One of the great things about the holidays is that almost everyone celebrates them. We come together to celebrate Christmas, Hanukkah, Kwanzaa or other traditions. By participating in the celebration of one of these traditions, we enjoy a unique spirit of community and togetherness.

It’s enough to make even a hard-boiled data analytics jockey like me stop and reflect.

What if a brand could create that sense of community and togetherness with its customers? How might that impact satisfaction, loyalty and repeat sales?

The conventional wisdom behind marketing’s entrance into social media is to encourage customers to become more fully engaged with a brand…to create a community of loyal customers. While it is still unclear how, and if, social media achieves these goals, it’s clear that the desire to “belong” to a community is significant. Maslow puts the need to belong just above our basic needs for food/shelter and safety.

So the next logical question is, “How do we motivate customers to want to belong to our brand community?” A common theme in many of our IdeaMap® studies is that customers want a greater level of control over their experience. This was confirmed in a recent study conducted by Pitney Bowes: “…consumers are more likely to stay engaged (with) companies that offer them a level of control over concrete customer service initiatives rather than those that focus solely on brand-building and web community experiences.” The study also found that an important way to encourage repeat business was to allow customers to have, “…a say in the company’s development of products and services,” (The Customer Dance: When to Lead, When to Follow).

As we celebrate the holidays this year, I think it might be worth pondering — “How can we create a greater sense of belonging to a community for our customers in the new year?”

ABOUT THE AUTHOR
Jeff Ewald is the founder of Optimization Group and the chief architect of the IdeaLoopz process. He has held research and senior marketing positions on both marketer and agency sides. Jeff’s career has been notable for his efforts in making marketing measurably effective. His work has been widely published, and a collaboration with Howard Moskowitz earned honors from the ESOMAR in 2001.

Jeff’s professional career has included time at General Mills, Campbell’s Soup and J. Walter Thompson. He has been an Adjunct Professor of Marketing at Wayne State University in Detroit. A former professional musician, Jeff will share road stories if prompted.

 

A New Online Survey – How Confident Are You About Your Marketing Programs?

November 11th, 2011

We have tested thousands of marketing messages and campaigns over the last ten years. Why so many? Simply put, marketers want to have confidence that their marketing efforts will be successful.

In the past three years, confidence has been hard to come by, particularly when it comes to marketing. While the demand for proven marketing efforts has increased, the corresponding resources aren’t always available… making confidence difficult to achieve.

In an effort to determine the areas of greatest (and least) marketing confidence, Optimization Group has launched an independent online survey. Marketers can answer a series of short questions about their confidence in specific marketing techniques and tools. The results of the survey will be presented in a marketing industry report, which will be made available free of charge.

If you are a marketer interested in participating in the survey, you can CLICK HERE. The survey takes about 10 minutes to complete. Please be assured that this survey is confidential. Your participation will not be used for any marketing purposes.

If you would like to receive a copy of the report, you can submit your email address at the end of the survey and copy of the report will be emailed to you. You can also request more information about the Optimization Group.

ABOUT THE AUTHOR
Jeff Ewald is the founder of Optimization Group and the chief architect of the IdeaLoopz process. He has held research and senior marketing positions on both marketer and agency sides. Jeff’s career has been notable for his efforts in making marketing measurably effective. His work has been widely published, and a collaboration with Howard Moskowitz earned honors from the ESOMAR in 2001.

Jeff’s professional career has included time at General Mills, Campbell’s Soup and J. Walter Thompson. He has been an Adjunct Professor of Marketing at Wayne State University in Detroit. A former professional musician, Jeff will share road stories if prompted.

 

Mindtyping™: Increasing Response Through Message Optimization

October 4th, 2011

Earlier this week a client joked that she is working on her Black Belt in IdeaMap®, an online message optimization tool popular with our clients.

For those unfamiliar with IdeaMap®, it is an online tool rooted in decision based conjoint…or trade-off…analysis. It recognizes that when people make decisions they are “trading-off” bundles of attributes against each other and models the trade-offs they are willing to make.

An IdeaMap® study will reveal naturally occurring groups of consumers – groups who are motivated by the same messages. We may find one segment motivated by emotional benefits and another segment motivated by facts and figures. We call this MindTyping™…knowing which segment a consumer is in.

At its inception IdeaMap® was limited to the effect on intent of each message individually.

Then came the Interactive Effects Analysis™, an analysis developed to identify the most powerful combinations of messages – maybe a feature + benefit or brand promise + brand name. Marketing communications are generally a mix of messages that tell a story, this analysis helps clients optimize the mix.

Not one to rest on our laurels…what about when a client wants to go beyond the optimal message to the target overall or key subgroups? These clients want to know the optimal message for Consumer A (maybe an emotional benefit) and the optimal message for Consumer B (maybe facts and figures).

In our work with the American Heart Association’s Go Red for Women campaign the AHA increased donations by 42.5% when they were able to identify which segment a consumer was in, then deliver a segment specific message to them. It’s all about getting the right message to the right person at the right time.

MindTyping™ represents the next evolution of IdeaMap®.

Maybe we will have to start referring to this new IdeaMap® capability as Black Belt Plus!

For more information about how MindTyping helped an organization grow, click here.

ABOUT THE AUTHOR
Jeff Ewald is the founder of Optimization Group and the chief architect of the IdeaLoopz process. He has held research and senior marketing positions on both marketer and agency sides. Jeff’s career has been notable for his efforts in making marketing measurably effective. His work has been widely published, and a collaboration with Howard Moskowitz earned honors from the ESOMAR in 2001.
Jeff’s professional career has included time at General Mills, Campbell’s Soup and J. Walter Thompson. He has been an Adjunct Professor of Marketing at Wayne State University in Detroit. A former professional musician, Jeff will share road stories if prompted.

 

Getting Unstuck: Making Smart Marketing Decisions When Data is Scarce

September 28th, 2011

Precise response data like leads, click-through rates, conversions and sales is valuable in making decisions about future marketing efforts.

But what do you do to if you don’t have data? How do you make marketing decisions when you have only partial information or just estimates?

That’s when a “What if…” analysis can be extremely useful.

A “What if…” analysis uses existing data, along with estimated data points, to calculate a range of probable outcomes. This information allows a marketer to make more informed decisions.

For example, suppose you are planning a new product launch and need to project the profit margin for the product. You know what the fixed costs will be, but variable costs depend on several factors that are not defined. “What if…” analysis takes the known factors (in this case, fixed price) and estimates of unknown factors (variable costs such as raw material costs, product pricing and sales) and determines a range of probable profit margins. This information can be immensely helpful in deciding if a new product will likely provide enough margin to justify further investment.

“What if…” analysis has been used for years by many major corporations such as General Motors, Proctor and Gamble and Eli Lilly.

While a “What if…” analysis doesn’t predict a specific outcome, it does provide a precise range of probable outcomes. By varying the input data, decision makers can see how those changes impact the probability of desired outcomes.

ABOUT THE AUTHOR
Jeff Ewald is the founder of Optimization Group and the chief architect of the IdeaLoopz process. He has held research and senior marketing positions on both marketer and agency sides. Jeff’s career has been notable for his efforts in making marketing measurably effective. His work has been widely published, and a collaboration with Howard Moskowitz earned honors from the ESOMAR in 2001.

Jeff’s professional career has included time at General Mills, Campbell’s Soup and J. Walter Thompson. He has been an Adjunct Professor of Marketing at Wayne State University in Detroit. A former professional musician, Jeff will share road stories if prompted.