market research today - fast, lean, flexible
TRANSCRIPT
2016 Dr. Ute Hillmer www.better-reality.com1 von 133
Market Research (MR)Day 2: Market Research: Customer Discovery 21.1.2016
SIBE-Management-MasterDr. Ute Hillmer
© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer
New Ways of gaining Market Insight:
Lean, fast, agile!
2016 Dr. Ute Hillmer www.better-reality.com
What’s Ute’s STORY?
I am in business to change the lives of my technology
clients by finding them hungry customers that get
them into sustainable growth!
2016 Dr. Ute Hillmer www.better-reality.com
WHO is Dr. Ute Hillmer? an expert in positioning and promoting technology
products, with a carving for innovative products that are not self-explaining.
With such products, human behavior is often outside the boundaries of rationality - despite its economic context.
Buying behavior is here typically a result of social, cognitive and emotional factors, along with the economic ones.
2016 Dr. Ute Hillmer www.better-reality.comWhat did Ute do?
• 27 years of international marketing (HP, CoCreate, MFG Innovation Agency State of BW, Better Reality Marketing)• Dissertation in business administration, behavioral economics in
technology marketing: Technology Acceptance in Mechatronics•Worldwide company and product communication;
mainly 3 continents (America, Europe, Asia)• Product-, program-, channel-, partner marketing, marketing
communication, branding, positioning• Responsible for operative, strategic + corporate marketing, branding,
sales training• Experienced in large corporations, SMEs and freelance work as well as
political institutions.• Responsible for the first international website of Hewlett Packard in 1993
2016 Dr. Ute Hillmer www.better-reality.com
Agenda 1. Changes in Market Research
2. What is Market Research good for?
3. What should you Research?
4. Market Segmentation and Target Markets
5. Find your most important Questions
6. Where to get Answers
5. How to get your Most Important Answers
• Qualitative Research TodayGoogle + Amazon AnalysisThe Problem with Traditional Quantitative Research
• Quantitative Research Today
• Interviewing People
2016 Dr. Ute Hillmer www.better-reality.com
This lecture is about…
• Understanding why market research is changing• Understanding customer discovery• The 5 big Q‘s of market research
• What do you want to learn?
• Who do you want to learn from?
• How will you get to them?
• How can you ensure to be effective?
• How do you make sense of what you learn?
2016 Dr. Ute Hillmer www.better-reality.com
The New Market Research Manifesto1. New media allows for new methods in market research2. New management methods require new methods in market
research. 3. Learning first hand about the customer, the value he is willing
to pay for and to develop a product or service that delivers this value is called CUSTOMER DISCOVERY.
4. Customer Discovery is NOT ABOUT statistically relevant answers. It is about the questions: Where do we find hints and patterns what our customers want and what they are willing to pay for
5. Customer Discovery is all about fast, agile and lean.6. Customer Discovery is a way to built market focused
innovations, that don‘t take forever and that don‘t eat an endless research budget.
2016 Dr. Ute Hillmer www.better-reality.com
The Problem and the Opportunity in Marketing
Enhancing a Product: „Customer needs and motives for buying are difficult to determine“ Kottler+Armstrong 2015
the understanding is required by companies to obtain customer and market insight
Developing a new Product: “Fresh understanding of customers and the market derived from marketing information” Kottler+Armstrong 2015
Becomes the basis for creating customer value and relationships
2016 Dr. Ute Hillmer www.better-reality.com
Elements in a Customer Driven Marketing Strategy
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
2016 Dr. Ute Hillmer www.better-reality.com
What should you Research?What are the Questions, you need answered?
2016 Dr. Ute Hillmer www.better-reality.com
Weaknesses Remove (internal) WEAKNESSES to use opportunities
Strengths Use Chances with own (internal) STRENTH
Opportunities OPPORTUNITIES that can be taken
Threads THREADS that must be overcome
Internal /today
External / tomorrow
A SWOT of your Product or Project
2016 Dr. Ute Hillmer www.better-reality.com
To get the SWOT right, you need to Research the Marketing Environment
CompanySuppliers Customers
DistributersCompetitors
Micro-‐Environment
EconomicPolitical/ Legal
Social/Cultural
Technology
Macro-‐Environment
Ecological/Physical
2016 Dr. Ute Hillmer www.better-reality.com
Weaknesses Remove (internal) WEAKNESSES to use opportunities
Strengths Use Chances with own (internal) STRENTH
Opportunities OPPORTUNITIES that can be taken
Threads THREADS that must be overcome
Internal /today
External / tomorrow
Market Research
2016 Dr. Ute Hillmer www.better-reality.com
Gain Customer Insight
CompanySuppliers Customers
DistributersCompetitors
Micro-‐Environment
EconomicPolitical/ Legal
Social/Cultural
Technology
Macro-‐Environment
Ecological/Physical
2016 Dr. Ute Hillmer www.better-reality.com
Weaknesses Remove (internal) WEAKNESSES to use opportunities
StrengthsUse Chances with own (internal) STRENTH
Opportunities OPPORTUNITIES that can be taken
Threads THREADS that must be overcome
Internal /today
External / tomorrow
Competitive Intelligence
2016 Dr. Ute Hillmer www.better-reality.com
Understand the Dynamics in the Marketplace
CompanySuppliers Customers
DistributersCompetitors
Micro-‐Environment
EconomicPolitical/ Legal
Social/Cultural
Technology
Macro-‐Environment
Ecological/Physical
2016 Dr. Ute Hillmer www.better-reality.com
What are your most important and most risky assumptions you are making?• How you reach your customers
Quelle: businessmodelgeneration.com
• What do customers really want? … need?
• How you make money (generate usage)
2016 Dr. Ute Hillmer www.better-reality.com
Internal /today
External / tomorrow
The Macro-EnvironmentWeaknesses Remove (internal) WEAKNESSES to use opportunities
StrengthsUse Chances with own (internal) STRENTH
Opportunities OPPORTUNITIES that can be taken
Threads THREADS that must be overcome
What Forces must be looked at?
2016 Dr. Ute Hillmer www.better-reality.com
Analyzing Major Forces in the Projects Macro-Environment
3-28
Kotler / Armstrong 2016
D. Jobber 2010
2016 Dr. Ute Hillmer www.better-reality.com
You are a Cinema Owner: How is the Macro Environment Changing?
3-29
Kotler / Armstrong 2016
D. Jobber 2010
2016 Dr. Ute Hillmer www.better-reality.com
Task: Part-Time MBA How is the Macro Environment Changing?
3-30
Kotler / Armstrong 2016
D. Jobber 2010
Teams of 4, 20 Minutes,draw a poster of the changes,
present
2016 Dr. Ute Hillmer www.better-reality.com
Task: Your Study Project (PSA2): How is the Macro Environment Changing?
3-31
Kotler / Armstrong 2016
D. Jobber 2010
By yourself, 5 Min,
write down the key forces in your project, explain to your
neighbor (2 Min each),
get feedback (1 Min)
2016 Dr. Ute Hillmer www.better-reality.com
Political and Legal Forces
• EU + national laws• Codes of practice
2016 Dr. Ute Hillmer www.better-reality.com
Economic
• Economic growth• Unemployment• interest and exchange rates• global economic trends (growth of some countries)
2016 Dr. Ute Hillmer www.better-reality.com
Ecological / Physical Environmental
• Global warming• pollution, energy and other scarce resources; environmentally
friendly ingredients + components• recycling and non-wasteful packaging
2016 Dr. Ute Hillmer www.better-reality.com
Social / Cultural
• Changes in world population, age distribution + household structure
• attitude and lifestyle changes• subcultures within and across national boundaries• consumerism
• + Graphic: Management-stiles US+Europe (Jobber 2010)
2016 Dr. Ute Hillmer www.better-reality.com
Technological
• New product technologies• New process technologies• New materials
2016 Dr. Ute Hillmer www.better-reality.com
Weaknesses Remove (internal) WEAKNESSES to use opportunities
Strengths Use Chances with own (internal) STRENTH
Internal /today
External / tomorrow
The Micro-Environment
Opportunities OPPORTUNITIES that can be taken
Threads THREADS that must be overcome
2016 Dr. Ute Hillmer www.better-reality.com
Analyzing Major Forces in the Micro-Environment
3-38
Kotler / Armstrong 2016
Porters 5 ForcesMarket AnalysisCustomer Analysis
Competitor Analysis
Supplier AnalysisDistribution Analysis
2016 Dr. Ute Hillmer www.better-reality.com
You are a Cinema Owner: How is the Micro Environment Changing?
3-39
Kotler / Armstrong 2016
Porters 5 ForcesMarket AnalysisCustomer Analysis
Competitor Analysis
Supplier AnalysisDistribution Analysis
2016 Dr. Ute Hillmer www.better-reality.com
Task: Part-Time MBA ProviderHow is the Micro Environment Changing?
3-40
Kotler / Armstrong 2016
Porters 5 ForcesMarket AnalysisCustomer Analysis
Competitor Analysis
Supplier AnalysisDistribution Analysis
Teams of 4, 20 Minutes,draw a poster of the changes,
present
2016 Dr. Ute Hillmer www.better-reality.com
Task: Your Study Project (PSA2): How is the Macro Environment Changing?
3-41
Kotler / Armstrong 2016
Porters 5 ForcesMarket AnalysisCustomer Analysis
Competitor Analysis
Supplier AnalysisDistribution Analysis
By yourself, 5 Min, write down the key forces in your project, explain to your neighbor (2 Min each), get feedback (1 Min)
2016 Dr. Ute Hillmer www.better-reality.com
Customers
• Who they are• their choice criteria• how, when and where they buy• how they rate us vs. the competition on product, promotion,
price, distribution, service, whole product• how customers group (market segments) and what benefit each
group seeks• trends
2016 Dr. Ute Hillmer www.better-reality.com
Distributors
• Channel attractiveness• distributor decision-making unit• decision-making process + choice criteria• strength and weaknesses• power changes• physical distribution methods• trends
2016 Dr. Ute Hillmer www.better-reality.com
Competitors
• Who are the major competitors (actual and potential)• their objectives + strategies• strength + weaknesses• size, market share and profitability• entry barriers to new competitors• trends
2016 Dr. Ute Hillmer www.better-reality.com
Suppliers
• Who they are and location• strength and weakness• power changes• trends
2016 Dr. Ute Hillmer www.better-reality.com
Finding the Most Critical Questions
• Size of the market• Market trends• Customer Needs• Evaluation of
Strategies/promotions• Assessing marketing mix• Forecasting• Planning
• Identifying market segments• Identifying consumer needs• Identifying competition• Identifying opportunities/gaps
in the market• Reduce risk
Cartoon copyright of Giff Constable, „Talking to Humans“
2016 Dr. Ute Hillmer www.better-reality.com
What are the Critical Assumptions in your Business Model?
source: businessmodelgeneration.com
How you reach your customers?
How you make money? (generate usage)
What do customers want? What do customers need?
https://youtu.be/QoAOzMTLP5s
2016 Dr. Ute Hillmer www.better-reality.com
A Brief Introduction to the Business Model Canvas
https://cdnsecakmi.kaltura.com/p/506471/sp/50647100/playManifest/entryId/0_7lgk4yf5/format/url/protocol/https/flavorParamId/457711/video.mp4?ts=1446678185
2016 Dr. Ute Hillmer www.better-reality.com
What are your Most Critical Assumptions about your Customer?
Pains describe bad outcomes, risks, and obstacles related to customer jobs.
Gains describe the outcomes customers want to achieve or the concrete benefits they are seeking.
Customer Jobs describe what customers are trying to get done in their work and in their lives, as expressed in their own words.What urgent needs do they have?
What are their compelling desires?
2016 Dr. Ute Hillmer www.better-reality.com
What Job is the Moviegoer trying to get done?describe the things your customers are trying to get done in their work or in their life. Look at the world though their eyes!
- the task they try to perform or complete- the problems they are trying to solve- the needs they are trying to satisfy
Functional Jobs: perform or complete a specific task or solve a specific problem. (mow the lawn, eat healthy, write a report, help clients as a pro)
Social Jobs:How to be perceived by others; Try to look good, gain power or status.
Emotional Jobs:Seek a specific emotional state, such as feeling good or secure
List the jobs, make them specific, then rank them by importance!
2016 Dr. Ute Hillmer www.better-reality.com
What drives a Moviegoer?• What value is a moviegoer looking for? • What’s supporting it?• What can be in the way?
2016 Dr. Ute Hillmer www.better-reality.com
Your Cinema Customer as a Theater Chain OwnerLooking at it the old fashioned way:
Movie Behavior:• Prefers action movies• Likes popcorn and coke• Does not like waiting in line• Buys tickets online• Goes once every 2 month
Psychographic Profile:Jane Moviegoer20-30 years oldupper middle class, earns 80K/yearmarried2 kids
2016 Dr. Ute Hillmer www.better-reality.com
Your Cinema Customer Market Today is Segmented!Is strongly influenced by the context he/she finds herself in. Which current job matters more or less?
…
2016 Dr. Ute Hillmer www.better-reality.com
What drives each Moviegoer Segment?• What value is this moviegoer segment looking for? • What’s supporting it?• What can be in the way?
2016 Dr. Ute Hillmer www.better-reality.com
What is Market Segmentation?
Market segmentation requires dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. Kottler, Armstrong 2014
Segmentation is used to identify and further define your ideal customer
2016 Dr. Ute Hillmer www.better-reality.com
• Segmenting consumer markets?• Segmenting business markets?• Segmenting international markets?• Effective segmentation?
Criteria for
2016 Dr. Ute Hillmer www.better-reality.com
Segmenting Consumer Markets
• The big 4
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
Copyright © 2016 Pearson Education, Inc.
2016 Dr. Ute Hillmer www.better-reality.com
Geographic SegmentationRegions following ACNielsen
Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods.
2016 Dr. Ute Hillmer www.better-reality.com
Demographin SegmentationAge and Gender
Demographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
2016 Dr. Ute Hillmer www.better-reality.com
Demographin SegmentationAge, Gender, Income, …Age and life-cycle stage segmentation divides a market into different age and life-cycle groups.
Gender segmentation divides a market into different segments based on gender.
Income segmentation divides a market into different income segments.
2016 Dr. Ute Hillmer www.better-reality.com
Psychographic SegmentationSinusmilieu
Psychographic segmentation divides a market into different segments based on social class, lifestyle, or personality characteristics.
2016 Dr. Ute Hillmer www.better-reality.com
Behavioral Segmentation
Behavioral segmentation divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
• Occasions• Benefits sought• User status
• Usage rate• Loyalty status
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
2016 Dr. Ute Hillmer www.better-reality.com
Segmenting Business Markets
• Consumer and Business have many of the same segmenting variables. Additional variables include:
Customer Operating
Characteristics
Situational Factors
Purchasing Approaches
Personal Characteristics
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
2016 Dr. Ute Hillmer www.better-reality.com
Segmenting International Markets
Geographic location
Economic factors
Political and legal factors
Cultural factors
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
2016 Dr. Ute Hillmer www.better-reality.com
Intermarket segmentation involves forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
7-‐21
Segmenting International Markets
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
2016 Dr. Ute Hillmer www.better-reality.com
Requirements for Effective Segmentation
Measurable Accessible Substantial
Differentiable Actionable
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
2016 Dr. Ute Hillmer www.better-reality.com
When Segmenting Markets, watch out for:Measurability• “otherwise the scheme will not be operational” • next to impossible in some markets, hard in most markets => most companies use
qualitative and intuitive methods Substantiality• “the variable should be relevant to a substantial group of customers”• Challenge: find the right size / balance: large group segment: risk of diluting
effectiveness• Too small: you lose the benefits of economies of scale• Sometime one large customerOperational Relevance (Actionable)• Segmentation should enable to offer the suitable product/service to the chosen
segment, e.g. faster delivery service, special 24-hour technical support, etc.
Source: Webster, 2003
2016 Dr. Ute Hillmer www.better-reality.com
Task: Market Segmentation for MBA Education
Copyright WPI Foisie School of Business
Copyright Our Education Blog
Teams of 4, 10 Minutes,pin on the
board in groups,present
2016 Dr. Ute Hillmer www.better-reality.com
Selecting Target Market Segments
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Your target market should be a segment that has urgent pain and the money / resources to do something about it. Additionally you have or you plan to have a product or service to reduce the pain.
A target market is a set of buyers who share common needs or characteristics that the company decides to serve.
2016 Dr. Ute Hillmer www.better-reality.com
Undifferentiated marketing targets the whole market with one offer• Mass marketing• Focuses on common needs rather than
what’s different
Copyright © 2016 Pearson Education, Inc.
Selecting Target Market Segments
2016 Dr. Ute Hillmer www.better-reality.com
Differentiated marketing targets several different market segments and designs separate offers for each.• Goal is to achieve higher sales and stronger
position• More expensive than undifferentiated marketing
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
2016 Dr. Ute Hillmer www.better-reality.com
Concentrated marketing / Niche marketing targets a large of a smaller market• Limited company resources• Knowledge of the market• More effective and efficient
Niche Marketing
Copyright © 2016 Pearson Education, Inc.
2016 Dr. Ute Hillmer www.better-reality.com
Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.• Local marketing• Individual marketing
Micromarketing
Copyright © 2016 Pearson Education, Inc.
2016 Dr. Ute Hillmer www.better-reality.com
Local marketing involves tailoring brands and promotion to the needs and wants of local customer segments.• Cities• Neighborhoods• Stores
Copyright © 2016 Pearson Education, Inc. 7-‐32
Micromarketing
Copyright © 2016 Pearson Education, Inc.
2016 Dr. Ute Hillmer www.better-reality.com
Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers.• Also known as:– One-to-one marketing– Mass customization
Micromarketing
Copyright © 2016 Pearson Education, Inc.
2016 Dr. Ute Hillmer www.better-reality.com
Choosing a targeting strategy depends on• Company resources• Product variability• Product life-cycle stage• Market variability• Competitor’s marketing strategies
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
2016 Dr. Ute Hillmer www.better-reality.com
The Moviegoer Market SegmentsWhat drives each Moviegoer Segment?• What value is this moviegoer segment looking for? • What’s supporting it?• What can be in the way?
2016 Dr. Ute Hillmer www.better-reality.com
Your Most Important QuestionsWhat Job is the Moviegoer trying to get done?describe the things your customers are trying to get done in their work or in their life. Look at the world though their eyes!
- the task they try to perform or complete- the problems they are trying to solve- the needs they are trying to satisfy
Functional Jobs: perform or complete a specific task or solve a specific problem. (mow the lawn, eat healthy, write a report, help clients as a pro)
Social Jobs:How to be perceived by others; Try to look good, gain power or status.
Emotional Jobs:Seek a specific emotional state, such as feeling good or secure
List the jobs, make them specific, then rank them by importance!
4 Teams, different segments, 5 minutes,pin on the board,present
2016 Dr. Ute Hillmer www.better-reality.com
Your Most Important Questions:What Problems is the Moviegoer trying to Solve?Describe what annoys your customer before, during and after trying to get a job done. What prevents them from getting a job done? Pain also describes potential bad outcomes (risks).Undesired outcomes, problems, and characteristics:They can be
functional (e.g. solution doesn’t work, doesn’t work well, …)emotional (“I feel bad every time I do this”)ancillary (it’s annoying to go to the store for this)
Obstacles:Prevents from even getting started or it slows them down (lack of time; cant afford cost)
Risks:What could go wrong + have important negative consequences? (I might loose credibility)List the pains, make them concrete, then rank them by importance!
4 Teams, different segments, 5 minutes,pin on the board,present
2016 Dr. Ute Hillmer www.better-reality.com
Trigger Questions for Customer Pains1. How do your customers define “too costly”? “Takes a lot of time”, “costs too much money”, or “requires
substantial efforts”?2. What makes your customers feel bad? What are their frustrations, annoyances, or things that give
them a headache? 3. How are current value propositions under performing for your customers? Which features are they
missing? Are there performance issues that annoy them or malfunctions they cite?4. What are the main difficulties and challenges your customers encounter? Do they understand how
things work, have difficulties getting certain things done, or resist particular jobs for specific reasons?5. What negative social consequences do your customers encounter or fear? Are they afraid of a loss of
face, power, trust, or status?6. What risks do your customers fear? Are they afraid of financial, social, or technical risks, or are they
asking themselves what could go wrong?7. What’s keeping your customers awake at night? What are their big issues, concerns, and worries?
8. What common mistakes do your customers make? Are they using a solution the wrong way?9. What barriers are keeping your customers from adopting a value proposition? Are there upfront
investment costs, a steep learning curve, or other obstacles preventing adoption?
2016 Dr. Ute Hillmer www.better-reality.com
Your Most Important Questions: What Gains is the Moviegoer trying to get?Describe the outcome and benefit your customers want. Some gains are required, expected or desired, some surprise them. Required gains:
Without them, the solution does not work.Expected gains:
Relatively basic gains that are expected from the solutionDesired gains:
They go beyond what we expect and we love to have it. This is what customers usually come up with, when we ask them.
Unexpected Gains:They go beyond customer expectation and customers would not typically come up with them when asked.
List the gains, make them concrete, then rank them by importance!
4 Teams, different segments, 5 minutes,pin on the board,present
2016 Dr. Ute Hillmer www.better-reality.com
Trigger Questions for Customer Gains 1. Which savings would make your customers happy? Which savings in terms of time, money, and effort
would they value?2. What quality levels do they expect, and what would they wish for more or less of?3. How do current value propositions delight your customers? Which specific features do they enjoy?
What performance and quality do they expect?4. What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more
services, or lower costs of ownership?5. What positive social consequences do your customers desire? What makes them look good? What
increases their power or their status?6. What are customers looking for most? Are they searching for good design, guarantees, specific or
more features?7. What do customers dream about? What do they aspire to achieve, or what would be a big relief to
them?
8. How do your customers measure success and failure? How do they gauge performance or cost?9. What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower
cost, less investment, lower risk, or better quality?
2016 Dr. Ute Hillmer www.better-reality.com
Innovation: Understand your Customer beyond your Solution! What does he/she Value?
2016 Dr. Ute Hillmer www.better-reality.com
Where to get your Most Important Answers(for your Customer Insight)
2016 Dr. Ute Hillmer www.better-reality.com
Who do you want to learn from?1. The ideal + typical customer
you envision if you get traction with your product (or project)
2. Your early adopter = the people who will take a chance at your product before anyone else does
3. Critical partners for distribution, fulfillment, other parts of the business
Cartoon copyright of Giff Constable, „Talking to Humans“
your job is to think through the kinds of people who have the problem you are interested in solving!
2016 Dr. Ute Hillmer www.better-reality.com
What is an “Ideal Cusomer”?
This isn’t about your most common customer – it’s about who you want as your most wanted customer! The 20% that create 80% of your revenue. If you have more than one ideal customer, define more than one, but set a limit to 3-5 max.
Your most hungry customer!
2016 Dr. Ute Hillmer www.better-reality.com
Gain true Customer Insight
• In-depth knowledge of customers = successful marketing• Understand consumer behavior and organizational buying
behavior
Who is important in the buying decision?
How do they buy?
What are their choice criteria?
Where do they buy?
When do they buy?
2016 Dr. Ute Hillmer www.better-reality.com
Gain true Customer Insight for Internal Projects
• In-depth knowledge of customers = successful marketing• Understand consumer behavior and organizational buying
behavior Who is important in the buying decision?How do they buy?What are their choice criteria?Where do they buy?When do they buy?
Who is important in the usage decision?How do they use it?What are their choice criteria?Where do they use it?When do they use it?
2016 Dr. Ute Hillmer www.better-reality.com
Quantitative Research Today
Start with available Information. Test your assumptions through Secondary Research• Analyzing available Data
Social Media Monitoring (SMM)Google Tools:• Google Advanced Search • Google Keyword Planner
Google Trends (Insight)• Google Analytics
Amazon Tools:• Booktitel Search• 3-Star Search
2016 Dr. Ute Hillmer www.better-reality.com
Qualitative Research Today
Test your assumptions through Qualitative Research• Asking people• Watching people• Go through the experience yourself• Test Markets
QuestionnaireFocus GroupsUser GroupsPostal SurveyTelephone SurveySocial Media MonitoringCustomer InterviewsTest MarketsInternet feedback
2016 Dr. Ute Hillmer www.better-reality.com
Where to get AnswersQuick Content Analysis: Find the right Product/Problem description1. Google Search
– what come up in autofill? – Google Advanced Search (erweiterte Suche)
2. Google Keyword Planner
Detailed Content Analysis: What exactly are people looking for?1. Amazon Booktitel-Search2. Amazon 3-Star Search3. Google Analytics
Interviews: In-Depth Understanding
2016 Dr. Ute Hillmer www.better-reality.com
Task: Do a Google Search Analysis (Part-Time) MBA: Job – Problems - Gains Take your product/project description to Google Search1. What wording does Google-Autofill suggest?2. What topics, web-pages, blogs, companies come up
⇒what is their wording?⇒what is their content?⇒Who is there?
3. Results: – What are your new 2-4 keywords? – Who are your 3-5 key competitors?
1/3 of Class: Teams of 3,
5 minute search,share in team; agree on Top 3 in each category,
present
2016 Dr. Ute Hillmer www.better-reality.com
Google Advanced Search
Video: https://www.youtube.com/watch?v=yc6ssZnCyuA
2016 Dr. Ute Hillmer www.better-reality.com
Task: MBA: Job – Problems - Gains Do a Google AdWords Analysis
Take your product/project description to Google Adwords1. Open Google Adwords (maybe register), go to → Tools →
Keyword Planer2. Enter your keywords and take notes:
Keyword mtl. Search Competition Price (CPC)
1/3 of Class: Teams of 3,
5 minute search,share in team; agree on Top 3 in each category,
present
2016 Dr. Ute Hillmer www.better-reality.com
Task: Do the Amazon Booktitle SearchMBA: Job – Problems - Gains
1. Start looking for book titles 2. What seems to be the core
concern of people interested in this topic?
3. Modify the answers and the wording in your workbook based on your learnings
1/3 of Class: Teams of 3,
5 minute search,share in team; agree on Top 3 in each category,
present
2016 Dr. Ute Hillmer www.better-reality.com
Do the Amazon 3-Star Search1. Look at the 3-Star
Reviews2. What seems to be
the core concern of people interested in this topic? What are they looking for and praise or can’t find?
3. Make a list of the core problems people seem to have
2016 Dr. Ute Hillmer www.better-reality.com
Google Keyword Planner adwords.google.com/KeywordPlanner
Know how your customers are searching and talking, get wording ideas and traffic forecasts• Keywords are the phrases that customers use to research and
select a product or service• You want to use the words that your target customers use + look
forsearch for keyword and ad groups ideas based on terms that are relevant to your product or service, your landing page, or different product categoriesGet historical statistics and traffic forecasts
2016 Dr. Ute Hillmer www.better-reality.com
Find information in Keyword Planner
• Keywords, Search Volume, Competitiveness (based on AdWordscompetition)
• Note: Only use EXACT match to explore keywords– Exact match = tennis shoes– Phrase match = tennis shoes for women –or-
blue tennis shoes size 9– Broad match = shoes for tennis –or-
tennis rackets and shoes• Keywords must be compared “apples to apples”
Video: http://youtu.be/bxREkVhzEkw
2016 Dr. Ute Hillmer www.better-reality.com
• useful for casting and short term forecasting of consumer trends (where statistics is not available or not yet available)
• Free publicly available dataset; search per country, category, period
• Google taxonomy of 256 categories (“jobs” including “job listings” “career resources and planning”, “resumes & portfolios”, “developing jobs)
• Overview of increases and decreases in the use of search category in real time (normalized within search categories)
1 Exploring statistics from the internet Google Trends http://www.google.com/trends
2016 Dr. Ute Hillmer www.better-reality.com
Google Analytics
• Does daily, monthly, yearly tracking of web visits– Graphed over time
• Shows which pages visitors go to, how long they stay– Bounce rate– Entrance pages
• How they got there– Search engines and Search terms used
• Location, operating system, monitor resolution• Over 80 reports available
2016 Dr. Ute Hillmer www.better-reality.com
Google Analytics
How it works• Sign up for Google Analytics
– https://www.google.com/analytics/• They return code to you• You paste the code just below the </body> tag• Put it on EVERY page
– Edit>Find and Replace is easiest option• Put it in your template pages, so it will be automatically on every
page• Go to the Analytics dashboard page to see daily metrics
2016 Dr. Ute Hillmer www.better-reality.com
Google Analytics
Useful Reports• Visitors:
– Map overlay, Browsers, Operating systems, Screen resolution, Connection speed
• Traffic sources– Direct links/Referring links/Search engines, Most frequent search
words used• Content
– Top content, Site overlay
Video: http://youtu.be/WC3ONXJn9FQ
2016 Dr. Ute Hillmer www.better-reality.com
Digging Deeper: Social Media Monitoring
Social Tracking: Twitter, FB/Xing/LinkedIn Groups
2016 Dr. Ute Hillmer www.better-reality.com
The Problem of Traditional Quantitative ResearchTest your assumptions through quantitative research by using• Secondary Research• Do your own primary research• Analyzing available Data
2016 Dr. Ute Hillmer www.better-reality.com
InterviewsThe 5 big Q‘s of Interviewing People• What do you want to learn?
• Who do you want to learn from?
• How will you get to them?
• How can you ensure to be effective?
• How do you make sense of what you learn?
2016 Dr. Ute Hillmer www.better-reality.com
Interviews:Talking to People
3 Phases• Pre-planning• Interviews and other discoveries• Analysis and Insight
Cartoon copyright of Giff Constable, „Talking to Humans“
2016 Dr. Ute Hillmer www.better-reality.com
Some Rules when Talking to People• Do it yourself, don’t use an agency• One person at a time• Add a note taker if possible• Start with a warm-up question and keep it human • Avoid confirmation bias by hearing what you want to hear
(you can play a game with yourself)• Ask for stories: “How did you do xyz” “Why?” “What was good
about it?” “What was not so good about it?“• Are there solution hacks? Ways the customer tried to solve the
problem?
2016 Dr. Ute Hillmer www.better-reality.com
Develop a Question GuidelineGet Stories, not Speculation!• Watch out for speculations (Would you buy this product? How much
would you be willing to pay? …) …humans are very bad in predicting their future behavior!
• Instead, ask your interview partner to share a story about the past!• How did you do… in the past?• How exactly did you do it?• What worked well? Why do you think this worked? What was really good about it?
What was the most fun about it? …• What would you like so see improved? What frustrated you most? If you could do it
all over again, what one thing would you change?• What were the overall “cost” to you (time, money, nerves, …) – watch out for the
words used!• What were the overall “gains” to you (fun, outcome, …) - …the words used!• What was the most important reason you bought/used XX at the time?• …Why ….Why…..Why….Why….Why?
2016 Dr. Ute Hillmer www.better-reality.com
More to Develop a Question Guideline• Ask open questions• Talk little and get the other person sharing openly (80/20 Rule!)• Observing uninfluenced behavior upfront, can lead to great
insight and will help you find the right questions.• Parrot back or misrepresent to confirm• Do a dry run
2016 Dr. Ute Hillmer www.better-reality.com
Even more to Develop a Question Guideline• If anything, ask: “If this new product were to solve just one
problem, what would you want it to solve?”• No Magic Wand Questions:
“If you had a magic wand that makes this product do whatever you want, what would it do?”
It’s the customers job to explain their behavior, goals and challenges. It is the product designer's job to come up with the best solution.
2016 Dr. Ute Hillmer www.better-reality.com
Asking for the PriceTesting for price: the hardest questions to get answered by qualitative questions are
– „Will people pay?“ – „How much will people pay?“
because answers to these Q‘s are extremely suspect.
2016 Dr. Ute Hillmer www.better-reality.com
Find your Interview Subjects• Try to get one degree separation away• Be creative and don’t expect people to come to you
– Where are they waiting and bored? (in line; moms on soccer tournaments, …)
– Where are they in in their moments of pain?– Referrals?– Conferences, trade-shows, meet-ups?– Social Media Groups?– What do they enjoy? (pay a café, a manicure, ....)
If something does not work, try something new!
2016 Dr. Ute Hillmer www.better-reality.com
More about Enterprise Interview Subjects
• Conferences, trade-shows• Xing, LinkedIn, - know the title of your prospects• Start in the middle – move up with more experience and
knowledge• Ask for advice in a relevant chat • Decide if you want to ask for advice or if you want to sell• People are willing to grant time to friendly people, more so, if
they are students or researchersIf something does not work, try something new!
2016 Dr. Ute Hillmer www.better-reality.com
Task: You want to develop the Next Generation MBA Education. Find out, what really adds Value to your Customers
Task 1: develop a question GUIDELINE- What do you want to learn?- How do you get stories, not fairytales?- How do you dig deep?
• What value is your segment looking for? • What’s supporting it?• What can be in the way?
Teams of 3, 15 minutes
development in written form
2016 Dr. Ute Hillmer www.better-reality.com
Task: You want to develop the Next Generation MBA Education. Find out, what really adds Value to your Customers
Task 2: Do 4 Interviews (an interviewer, a note taker, an interviewee + 1x interviewee outside the class; each one 1x in each role)- “get out out the building” catch one
person outside this class- Each one is an interviewer once, each
on is a note-taker once- Observe what works and what does not
work
Teams of 3, 60 minutes,
Then write down key findings on the Value Proposition Canvas, present + comment on observations.
2016 Dr. Ute Hillmer www.better-reality.com
Data AnalysisHow do you make sense of what you learn?It’s not about scientific significance, its about pattern detection• To find patterns, you need to track the data
Good working method: – write down as many patterns and observations as you saw on post-its– Put them all on a wall and sort them– Discuss the patterns as a team and re-view your assumptions, your b-
plan, product plan, project plan.• Don’t take one persons comment to literally: look for patterns and
apply judgment! In real life, talking to 50 people is a good amount.And remember:• You are an intelligent filter, not an order taker• People want to be helpful and nice; you want to hear nice things –
keep that in mind!!
Illustration copyright of Steve Blank, „The Startup Owners Manual“
2016 Dr. Ute Hillmer www.better-reality.com
Lean Experimenting your way up• Only talking to people is not enough; building a live product is
expensive and time consuming. Built your way up, iterating to the RIGHT product that meets a customer need and that sells.
Source: Chart by Gliff Contable, Talking to Humans
2016 Dr. Ute Hillmer www.better-reality.com
How do you make sense of what you learn?Verify your learnings by testing and re-testing our “product”:
ConversationsMock-upPrototypeLive Product
Put your product or project in front of customers and watch and listen to their reactions. customers and get their feedback.
Illustration copyright of Steve Blank, „The Startup Owners Manual“
2016 Dr. Ute Hillmer www.better-reality.com
Making more sense of what you learn by putting people through the actual experience• Built a Minimum Viable Product (MVP) that offers the value your
customers value most and get feedback• Built a landing page test that offers the MVP or tests some
wording and run the analytics of who- is interested to read more- asks for material by entering an address- clicks the “buy now” button
Illustration copyright of Steve Blank, „The Startup Owners Manual“
2016 Dr. Ute Hillmer www.better-reality.com
ReCap1. Changes in Market Research
2. What is Market Research good for?
3. What should you Research?
4. Market Segmentation and Target Markets
5. Find your most important Questions
6. Where to get Answers
5. How to get your Most Important Answers
• Qualitative Research TodayGoogle + Amazon AnalysisThe Problem with Traditional Quantitative Research
• Quantitative Research Today
• Interviewing People