Sales Talk Track for Consumer/Market Research

anne_milley

Consumer and Market Research

TALK TRACK

Consumer and Market Research with JMP® 15

 

 

Usage:  This is intended to be a living document.  We need sales’ help validating this messaging.  Does it play well?  We will gladly incorporate changes in future versions of this document in the spirit of continuous improvement.  Thank you!

 

 

AUDIENCE:Anyone with an affinity for data who cares about shareholder value, customer satisfaction, and going to the next level.  People doing consumer or market research to better understand what consumers are seeking in products and services, as well as how they respond to questions about existing products and services. Market researchers (especially in consumer packaged goods), behavioral science researchers, social scientists, analysts working in the area of “voice of customer.”

CRITICAL BUSINESS ISSUE: How to delight customers with innovative offerings efficiently and effectively.

GOAL:Maintain happy customers to increase profitability; grow or maintain market share. 

 

1. Defining the Problem

Customer Issue Description

·   Generate value. All organizations – whether publicly traded, privately held, or nonprofit – care about generating value for and from their stakeholders. ·   Manage customer/stakeholder issues and problems. When consumers call an organization’s toll-free number with questions or feedback about its products or services, the group that manages this incoming information must be able to sort and analyze the data – by offering, reason codes, etc. – to address customer issues. ·   Determine customer/consumer satisfaction through basic surveys. Surveys provide feedback about customers’ experiences (typically with a Likert scale but also with open-ended questions to capture more information and explore further with text analytics). Organizations need surveys to evaluate how they are doing and to determine what customers like and don’t like. Surveys are also used to manage and maintain customer satisfaction levels. ·   Manage margins. Some organizations are constantly working on new formulations of existing products to lower costs and keep margins up. They need to know the features and qualities that are important to customers and determine how to deliver them at lowest cost, or how to remove unnecessary costs by providing a less expensive, more robust component or product or by offering a product that is preferred to what the competition offers. ·   Go to the next level in their offerings. To maintain or grow market share—and to keep current with stakeholder expectations—companies need to design a new product/service or enter a new market. To do so, they need a way to tease out customer expectations, which are always changing. This is an ongoing effort to stay informed about expectations in a target market; it includes determining the key new features their products and services should have, as well as assessing preference versus price and doing trade-off analysis.

 

Business Impacts of Not Addressing the Issue

·   Dissatisfied customers could damage your brand. ·   Declining customer loyalty and greater attrition could result in lower market share, profitability, and a disenfranchised stakeholder base. ·   Without loyal customers, costs will be higher. It is more expensive to recruit new customers. Losing loyal customers means losing their good word of mouth, which brought you additional market share.  Example: Blackberry used to be No. 1; now it’s barely hanging on. What did Blackberry and its parent company, RIM, do or fail to do that resulted in losing so much market share? It wasn’t able to hear the voice of the customer to stay ahead.

 

External Validation of the Business Impact

“Knowing that one piece of content has worked online socially is great, but why has it worked compared to something else? … It’s about being accountable, and to become more accountable we have to start measuring things in a structured way,” he says. “It’s not about just measuring the research results of brand uplift, it’s about how we increase shareholder value by growing the number of people purchasing these products. That’s why I’m trying to get people to use JMP.” -Huw Davis, Data and Analytics Lead for Asia Pacific, J. Walter Thompson

 

 

Challenges/Barriers to Addressing the Issue

·   Culture of the organization. Some organizations (e.g., P&G, Apple) have a strategic view and use all opportunities to hear the voice of the customer, and some don’t (e.g., RIM).  ·   Execution. We can design and analyze the surveys, but we don’t execute them. Execution is critical and there are many Internet survey companies that have taken the place of direct mail to execute surveys: Webmonkey, SurveyMonkey, SurveyGizmo, Confirmit. For example, JMP partner Rob Ruel uses JMP to design a survey and transforms it into Confirmit, which then executes the survey and generates the data. The data is then fed back into JMP and analyzed.  ·   Different data streams. Routine data comes in from many sources: call centers, surveys, websites, etc. Getting a handle on the data and wading through standard reports to find trends and patterns can be a challenge. Companies struggle with managing the information and seek easier ways to explore and visualize the data.  ·   Data availability. You might have good intentions, but if you don’t have the data, you won’t get results. ·   Lack of competence. Companies must have some level of analytic competence to collect and deal with data effectively.  ·   Boss who doesn’t get it. Analysts must be able to articulate value in a way that gains support from management.

 

1. JMP’s Solution to the Problem

Our Approach and Value Proposition

JMP provides a comprehensive repertoire of tools for quickly and easily getting value from your data. The speed and interactivity of JMP make it particularly suited for ad hoc studies, but its programmability also provides options for expediting routine, ongoing studies, all from a desktop application. From exploratory, descriptive or causal research to sensory studies and predicting behavior, JMP helps you understand your data (including textual data), find new consumer insights more quickly, and communicate these insights to other stakeholders in compelling ways to lead to consensus and action – regardless of your level of statistical expertise. Consider JMP’s development trajectory. Building relationships with customers is important to JMP. We’ve been around for 30 years, always adding more and more functionality on a very regular 18-month release cycle.

 

Differentiating Capabilities

·   Easy to use, yet powerful. It is very easy to use JMP to study and display results. JMP’s power comes from its advanced tools: experimental designs, predictive modeling, simulation, trade-off analysis, etc.  Growing capabilities in the area of Consumer Research:  categorical, Choice modelling, MaxDiff, Uplift modelling, Multiple Factor Analysis, and other methods relevant for consumer research within JMP including text analytics and more. ·   Cost of ownership. JMP is less expensive than its competitors. It can support many areas (e.g., market research, quality engineering) deeply and broadly at a low cost of ownership. ·   Dynamic visualization. Competitors don’t have the graphical capabilities of JMP to interactively explore your data so that you can find what’s important faster. ·   Superior DOE. Because JMP excels at DOE, you’re going to make better decisions and derive trade-off information more accurately. JMP’s Custom Designer fits your specific business need so your problem doesn’t have to conform to a classic design. With JMP, you won’t ask questions that are unnecessary or nonsensical. JMP enables you to ask only the questions that maximize your insight, thus restricting your cost of executing the designs to optimal questions. To cover all the attributes you seek to measure, some software generates a slew of questions, some of which are nonsensical (e.g., Would you pay the least amount of money for the fastest computer or pay the most for the slowest?). JMP avoids this. ·   Statistical discovery. It must be data-driven. Visualization is a great way to look at data, but statistics and analytics are also valuable. Statistical discovery is like adding 1+1 and getting more than 2; visualization and statistics are synergistic and the fact that you can explore textual data statistically and visually is also a huge plus.  ·   Concept of personalization and extensibility. You can use JMP in free-form mode and be productive, but you can also embed JMP in a larger context by building applications and tailoring the software to the users’ specific needs. The world is full of software – some of it is good, some less so. It may not be clear on the surface, but JMP is as much about the way we do things as it is what we do. We recognize that it's the interplay between user and software that generates the value. JMP is designed to make the user productive. We provide a greater level of customization and automation compared to other software (even if it appears equivalent at first glance).

 

Case Study

Kraft Foods

Situation:  To offer Kraft Foods’ researchers a more effective means of analyzing data from taste tests involving professional tasters and hundreds of consumers.

Solution:  The consumer test evaluation tool, developed with JMP® software through a close collaboration between Kraft Foods UK and SAS Professional Services.

Results:  This customized tool has halved analysis time, significantly reduced training time, minimized calculation errors, ensured and increased use of Kraft Foods best practices, and reduced software costs.

 

JMP® 15

·   Continued enhancements to consumer and market research: BY groups are supported in Choice and MaxDiff and other minor enhancements to Categorical and Choice.

·   JMP users could potentially get rid of SPSS or Sawtooth by moving to JMP 15.

 

JMP® Pro 15

·   Note:   In JMP 14, Multiple Correspondence Analysis, Multidimensional Scaling, Factor Analysis, and Item analysis were moved to the Multivariate Methods menu.  New in JMP Pro 15 (also in the Multivariate Methods menu) is the new Structural Equation Modeling platform, which is useful in understanding some aspects of consumer behavior.  ·   JMP users could potentially get rid of SPSS, Smart PLS, or MPlus by moving to JMP Pro 15.

 

JMP Live

If they need to share information in an interactive way with others that scales (not in Powerpoint, Excel, emails, etc.), make JMP reports available to non-JMP users, publish reports that are created automatically, have a repository for project data and reports, deploy dashboards, or create a shared space to foster collaboration, JMP Live may be an option.

1. Sales Cycle Guidance

Prospecting Criteria
Stay or become more innovative:
·   Manufacturers that seek to stay on the leading edge in their offerings to continuously exceed customer expectations. ·   Manufacturers that want to become more competitive and innovative in their offerings (particularly the ones that may have fallen behind or lost market share). ·   Service organizations (hotels, car rental companies, companies with call centers, etc.) that want to ensure they are using the voice of the customer to keep customer satisfaction high and to evolve their services. ·   Any organization (CPG, pharma, etc.) that strives to improve its products and services.
Maintain customer satisfaction:
·   Any organization seeking to learn from customer feedback to keep customers loyal.

 

Conversation Starters

·   What functional group are you in and how does your group fit within your organization? How is marketing organized? ·   What is your role, how do you fit in and what’s your background? (Get the prospects to talk about their product or service. Even if you already know, have them explain their product portfolio and what they do.) ·   How do you assess how well you’re doing?  ·   How do you measure customer loyalty/satisfaction?  Does that include analyzing textual data? ·   How do you use customer feedback? How do you understand your customers? ·   What kind of data is available to you? What are your challenges? Do you aspire to do more? What does data-driven decision making look like to you? ·   What type of analysis do you use on your data? How do you visualize that data? How do you identify trends? How is your performance with those data streams?  ·   Do you perform advanced market research for trade-off analysis or do you farm it out? If you farm it out, what kind of analysis do you get back? Is it telling you all you need to know? (We may be able to augment even if they farm out.)    ·   How do you manage the margins on your products?  ·   How do you know that you’re staying ahead of the competition?  ·   What kinds of analysis are you currently doing?  ·   What tools do you use? Who are the primary users of the current tools?

 

Sales Cycle Tips

·   Generating value for and from customers is a reciprocal arrangement. It’s all about what you give customers and what customers provide in return – it is a balance. Market research is like consumer research but taken up a level; customers inhabit markets (competitor research would be another subset of market research).  ·   If it supports the whole company (rather than being embedded in a LOB), marketing as a topic can transcend all groups, but it may be undervalued.  ·   The more you can get prospects to talk the better. ·   Determine what’s important to them and what they’re willing to pay for. ·   What resonates the most: looking back or looking forward? You will run into various degrees of expertise. For example, P&G is an expert. It has the in-house knowledge, while Ocean Spray has market research, but farms out more advanced stuff to Maritz.   ·   Stress that JMP is comprehensive and will address many challenges inherent in their analytic workflow—from messy data and data prep to discovery to sharing results, including posting to JMP Live if needed. ·   We don’t currently do adaptive conjoint designs. ·   Worst-case scenario is that we provide “me, too” functionality, but in a JMP paradigm (especially if competing with SPSS and the customer doesn’t like its pricing or support), we do it in a way that’s better for them.  ·   Distinguish where people are in the continuum. You may be talking to someone who’s an expert or who’s a novice.  We can move them along the learning curve to get them up to speed on what they didn’t learn in college. JMP does it in a way that’s sympathetic to the prospect.  ·   Tell them how easy it is to use JMP. Be sure to say every company is different, but give examples of other companies we’ve worked with, such as Kraft. ·   To answer “If you had this, how would it help you?”, learn the context. If sensory is important (as it was with Kraft), they will be interested in variability platform. If they are using predictive modeling, they should be interested in uplift modeling, PLS, linking sensory studies, etc. ·   Customers that stand out: P&G, Unilever (not quite on the same level as P&G), Kraft (perhaps overspecialized).

 

1. Capabilities Map

 

Expanded Discussion of JMP^®Capabilities and the Value Created/Vision

Capability Description	Diagnostic Questions	So What? Value/Impact
Exploratory research: ·  Access to a variety of file types, including SPSS Desktop Reporter. ·  Many options for exploring data including textual data. ·  Ways to combine category levels.	·  Are you able to compile data from various sources – surveys, customer care call data, etc. – to understand and manage customer issues? ·  How do you explore and analyze textual data? ·  Are you able to interactively define tables with grouping variables and create interactive graphical output, including geographic maps? ·  Do you have sparse data in survey responses?	·   In addition to the file types we already supported, our import wizard now supports SPSS Desktop Reporter file types, as well as spreadsheets with hierarchical titles in columns and rows. ·   Dynamically linked graphs in JMP let you quickly see any interesting structure in the data, isolate unusual cases, and handle them appropriately. ·   Tap into the value of textual data from open-ended survey responses, online reviews, transcribed call-center recordings, etc. ·   JMP allows you to define super categories to increase cell counts to make survey results more reliable.
Descriptive research: ·  Use multivariate techniques like factor analysis, clustering, principal components, multiple correspondence analysis, and multidimensional scaling. ·  Fit models to identify relationships between inputs and outcomes.	·  Is your data getting ever-wider in this era of big data? ·  Do you have a good handle on the relationships and interrelationships of variables in your models? ·  Do you need to do sensory analysis? ·  Are you able to see complex customer relationships when you have multiple categorical variables?	·  JMP has many multivariate techniques to reduce dimensionality to more quickly gain insights into consumer perception and market opportunities. ·  Whether you need to build simple or complex models, JMP gives you options to identify, visualize and show relationships that matter. JMP’s profiler is especially powerful in conveying these relationships; it also includes a Monte Carlo simulator to assess how real-world variability in inputs will manifest in outcomes of interest. ·  Idenitfy potential target audiences for advertising campains.
Causal research: ·  Classical and custom DOE. ·  Conjoint experiments. o    Choice o    Rating o    Ranking	·  Do you need to establish causal relationships through statistically designed experiments? ·  Do you need to better understand which products and service attributes customers prefer? ·  Do you need to understand which attributes are most important through rating and ranking experiments?	·  JMP excels at DOE, not just classical designs, but also easily built custom designs that fit your exact problem. ·  JMP allows you to generate designs that help consumers more easily and clearly state their preferences. ·  JMP allows you to generate and analyze rating and ranking conjoint experiments as well as assess consumer’s perception of “best” and Worst” options in a choice set.
Sensory studies: ·  Graphical and statistical tools that can be used as they are or organized into a custom application. ·  Multiple Factor Analysis	·  Do you need to better understand consumers’ sensory experiences of your offering? ·  Do you need to link sensory and consumer panel results for greater insight into product categories?	·  JMP provides all the graphical and statistical tools you need to assure that the rankings and ratings produced are reliable, and whether your panel results allow you to objectively differentiate between products. ·  Identify groupings of similar products and outlier panellists. ·  JMP’s Dashboard Builder (and JSL) allows you to easily build custom apps that help you or others repeat sensory analysis or showcase your findings including publishing to JMP Live if needed.
Predicting behavior: ·  Predict behaviors to better anticipate the future. ·  Know which actions or treatments are having the desired effect.	·  Do you know which customers are likely to respond to an offer, churn, be receptive to an upsell, etc.? ·  Do you know which factors are driving consumer behaviors? ·  Do you know which consumers (or other experimental units) will be most responsive to offers or treatments you provide?	·  JMP provides a wide range of predictive modeling capabilities, allowing you to build and visualize models to predict future outcomes that will perform well on new data and understand what factors are driving consumer behaviors. ·  JMP’s uplift modeling allows you to see the incremental impact of treatments on consumer responses to know if they are effective.