CUSTOMER

INSIGHT TO

OL

S

Iwan Setiawan

Chief Executive of MarkPlus Consulting | Co-Author of Marketing 3.0

Marketeers Dinner Seminar

Bandung | Jakarta | Surabaya | Feb 27-29, 2012

Part

1

Customer Behavior In Indonesia – 9 Trends

9 Customer Behavior Trends

1

in In

do

ne

sia

“Deals help justify

unnecessary

consumption”

9 Customer Behavior Trends

2

in In

do

ne

sia

“Faster product

adoption leads to

shorter lifecycle”

9 Customer Behavior Trends

3

in In

do

ne

sia

“Instant and

experiential are no

longer oxymoron”

9 Customer Behavior Trends

4

in In

do

ne

sia

“Idealism is natural

counterbalance to

consumerism”

9 Customer Behavior Trends

5

in In

do

ne

sia

“Local is the new

sexy”

9 Customer Behavior Trends

6

in In

do

ne

sia

“I connect,

therefore I am”

9 Customer Behavior Trends

7

in In

do

ne

sia

“Good life makes

you have

something to lose”

9 Customer Behavior Trends

8

in In

do

ne

sia

“Making choices

feels good”

9 Customer Behavior Trends

9

in In

do

ne

sia

“My lifestyle doesn’t

mean I’m not in

shape (denial

mode)”

Part

2

Understanding Customer Behavior – 2 Tests

“People may not

make sense to

you, but they

always make

sense to

themselves”

Are customers crazy?

“People may not

make sense to

you, but they

always make

sense to

themselves”

Crazily creative?

The Stanford Marshmallow Test (1972)

One of the Most Successful Behavioral Observations

Customers are

irrational at

times!

How customers “think”:

Basic life

regulation

Emotions

Feelings

Pain (punishment) & pleasure (reward)

Fear, anger, sadness,

disgust, surprise, happiness

bloodstream & neural pathways

Sensory images

Continuous thoughts

Limbic Brain

Drives & motivations

Cortex Brain

SUBCONSCIOUS

UNCONSCIOUS

Reasoning Perceived

“reality”

Illusionary

Reptilian Brain

CONSCIOUS

“I better wait

for the second

marshmallow”

“I want the

marshmallow

now”

The Penn & Teller Bottled Water Test (2003)

A Show that Proves Irrationality of Customers

Customers are

master

storytellers!

say do

make

How we "understand" them: Ask articulated

and explicit

knowledge

Observe

unreported

actions

Learn how they

innovate i.e.

workarounds

Part

3

Using Customer Insight Tools - 3 Cases

Innovation EFFORTS (Past 10 Years)

Core

process

Process

Enabling

process

Business

model

Model

Networking

model

Offering

Product

system Service Channel

Delivery

Brand Customer

experience

Hi

Lo

vo

lum

e

Product

features

Source: The Doblin Group

Innovation VALUE (Past 10 Years)

Source: The Doblin Group

Hi

Lo

Core

process

Process

Enabling

process

Business

model

Model

Networking

model

Product

features

Offering

Product

system Service Channel

Delivery

Brand Customer

experience

valu

e

Customer Insight Sources

Customer Insight

Sources

Secondary Data Primary Data

Quantitative

Approaches

Qualitative

Approaches

The Taxonomy of Qualitative Approach

Customer Context Critical?

Yes

Immersion with Customer

Critical?

No

Client Benefit from

Customer Experience?

Yes

ETHNOGRAPHY

YES

CUSTOMER

VISIT (B2B)

NO

OBSERVATION

No

Group Dynamic or

Individual Depth?

GROUP

Online or Offline?

INDIVIDUAL

IN-DEPTH INTERVIEW

ONLINE

Company or customer

run communities?

Customer-run

NETNOGRAPHY

Company-run

MODERATED

COMMUNITY

OFFLINE

Ad hoc

or routine?

Ad hoc

Lead user or

mainstream?

Routine

CUSTOMER

PANEL

Lead

LEAD USER STUDY

Mainstream

FOCUS GROUP

1

2 3

4

5 6 7

8 9

Emphatic research is the most proven

Empathic Research

Traditional Research evaluative improves existing things explicit needs reported market segments artificial settings static interviews isolated experiences

generative inspires new possibilities latent needs revealed individuals natural context dynamic conversations comprehensive experiences

Focus

Groups

Etc.

Empathic

Research

Surveys

etc.

Video

Ethnography

etc.

traditional

qu

an

tita

tive

latent

qu

alita

tive

Sampling: Wide, Deep, Real

Innovators

Early

Adopters

TH

E C

HA

SM

Early

Majority

Late

Majority

Laggards

Extreme

users for

breadth

Extreme

users for

breadth

Small

numbers

for depth

Small

numbers

for depth

Real

People

Observation: know what you are looking for

Remember

Alexander

Flemming

Talk about the individuals you met

and the places you visited

Create personas from real people

Compare and contrast the things that

you learned

Synthesis: Observation + Inference = Insight

Case #1: Sampoerna Hijau (2000)

Case #2: XL(2007)

Case #3: Aora TV (2010)

Tonight’s Takeaway

What customers say and what they do are at times contradictory: • Sometimes it’s their justification

• Sometimes it’s counterbalance

• Sometimes they just don’t want to say what they do

“What they do” is always the right insight!

Observation without purpose is meaningless

Observation without inference is naïve

Observation with inference is the true meaning of “

finding insight”