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Flying the Friendly Skies?

Posted by Chris Neal

Thu, May 18, 2017

pexels-photo (1).jpgI don’t envy the United Airlines (UAL) management team these days. Last month’s removal of passenger Dr. David Dao from an overcrowded plane in Chicago sparked a major PR nightmare for the airline carrier.  This debacle comes to a brand that was already struggling from image problems in an industry that has long been comedic fodder for bad customer experiences.

Overbooking, heightened security procedures, skyrocketing baggage fees, and shrinking legroom have made domestic air travel a very stressful experience. With emotions running high on the tarmac, in the air, and on Twitter, what’s an airline to do?

Emotions matter... and we've proved it.

Emotional analytics are a critical tool to help create a truly consumer-centric brand. Emotions are a key driver in consumer brand adoption/loyalty and will undoubtedly play a major role in how United performs going forward. In our self-funded study of the impact of emotions across 90 brands in 5 industries, CMB found that a brand’s overall emotional impact score can heavily influence future likelihood to purchase along with other key KPIs (advocacy, engagement, etc.).

We identified which specific emotions drive business outcomes in the airline industry, the top being “secure”, “efficient”, and “happy”. Of the negative emotions we tested, “anxious” proved to be the most damaging to a company:

drivers of airline use.jpg

We also found that of the five major airline brands tested, including United, UAL had the lowest Net Positive Emotion Score (NPES). NPES is the balance of positive emotions activated through experience with a company subtracted by the extent of negative emotions activated. It also accounts for overall emotional “activation” (high vs. low), and the general sentiment of that activation (positive or negative).

airline NPE net.png

Both United and American both share a special place at the bottom of the “Negative Emotion” spectrum (17 and 18, respectively), out-activating negativity by ~30% over the airline industry average of 13.

airline NPE neg.png

A Path Forward

Now let’s have a look-see at what specific emotions have the biggest impact on likelihood to consider flying United, specifically, and how that compares to the overall industry average of emotional drivers:

top emo drivers-airlines.png

The “Anxious” vs. “Relaxed” emotional spectrum is the biggest emotional driver of future United purchase intent. Lowering feelings of “Anxiety,” in particular, is much more important for United’s brand than it is for the industry average.

Unfortunately for United, their brand already generated 33% more “anxiety” than the industry average:

UAL anxiety.png

I can only imagine the anxiety Dr. Dao felt when he was removed from the seat he paid for to make room for a UAL employee. And I can also imagine the emotional connection felt by the millions of others who watched the video of him being dragged off the plane by airport security because they could relate to it in some way from their own travel experiences or common worries people have about flying:

  • “Will they arbitrarily change my flight times in a way that messes up the rest of my travel plans?”
  • “Will they cancel my flight altogether and put me on another (later) flight if it is under-booked?” (something that happens a lot on connector flights to smaller airports).
  • “Will I be forced to vacate my seat if they are over-booked?”
  • “Will there be delays that cause me to miss my connection, an important meeting, etc.?”
  • “Will I be sitting next to a 6’5” linebacker in a cramped coach class seat?”

No doubt this incident would have been a PR disaster for any airline, but the blowback was likely even more intense because it happened on a UAL flight—a brand that already activates more negative sentiments than most competing brands.

The bad news:

United Airlines was already in the hole before this incident, and now that hole is vastly deeper. Bad press and bad experiences linger longer in peoples’ memories than positive press or positive experiences, so it’s likely the image of Dao’s forced removal is here to stay (at least for a while).

Similarly, angry customers are much more likely to tell others about their bad experiences (typically with a bigger megaphone) than those with positive ones. Righteous indignation goes viral more readily than positivity. Furthermore, bad word-of-mouth has larger negative impact on a brand than good word-of-mouth has positive impact (by an order of magnitude). And some of the most prolific public haters will likely never be swayed otherwise, no matter what UAL does from this point forward.

The good news: 

In our analysis, we found that—across all industries tested—emotional reactions to the most recent experience have a much bigger impact on likelihood to buy in the future than the worst experience a customer has ever had with a brand (or the best). In other words, even brands that mess up big time can recover if they begin to deliver customer experiences and marketing communications strategies that foster the right emotions. With our “EMPACT” approach, we can identify very specific customer experiences, creative executions, and messaging that will deactivate the most damaging emotions like “anxiety” and activate key positive emotions like “relaxed.”

May the skies be friendlier.

If United wants to be a truly consumer-centric brand, they need to consider emotion measurements like NPES as a valid metric for tracking and analytics. United will need to profoundly understand which emotions matter, and how to proactively influence these emotions through specific customer experiences, promotional campaigns, and influencing what is (and isn’t) said about the brand on social media.

Emotional metrics deserve the same level of visibility and focus that traditional industry metrics like Revenue Per Available Seat Mile (RASM) and classic NPS receive. Until this happens, UAL may struggle to focus their customer experience strategies and creative campaigns in a way that helps them recover from this low point.

Chris Neal leads CMB’s Technology & Telecommunications practice. He gets emotional very easily. He is also a frequent flyer on United Airlines. While extremely angered and disgusted by the viral video of the UAL incident, he is curious to experience how UAL actually changes in future and will fly this airline again to find out.

Want to learn more about how we're revolutionizing  emotional measurement with our EMPACT solution? Watch our webinar:

 Learn More About EMPACT℠

Topics: EMPACT, emotional measurement, customer experience and loyalty

Look Everywhere

Posted by Julie Kurd

Fri, May 12, 2017

NEXT.pngA F500 CMO walked in to our office with just a pen (but no paper). This isn’t the intro to bad joke, it really happened.  If a CMO can be open, prioritize learning, and trust the world to freely share ideas (and a sheet of paper to write on), then as the Head of Strategy and Insights, or even as the Insights Analyst fresh out of school, you should too.

One of the easiest ways to learn and grow professionally is to attend conferences and webinars. It’s not enough to just be great at your role and manage and execute a stable of projects—and you definitely don’t get points for saying things like ‘system 1 thinking’.  

Have no budget and no time allocated for conferences? Attend free webinars offered by virtually everyone with something to say (you can find CMB’s here). Have a small budget and a day per year? Sign up for the economically priced local chapter sessions (New England’s on May 18 and San Francisco’s on June 8). Can you commit to a larger format that takes more time away and offers more tracks (and costs more)?  Participate in conferences such as the Insights Association’s NEXT or CRC

Earlier this week I traveled to NYC for the NEXT Conference. What did I learn? Glad you asked:

  • Science and Creativity walk into a bar—I loved the title of Pranav Yadav’s presentation but the content was even better: a great strategic summary of the neuro category (e.g., eye tracking, facial coding, galvanic skin response, belts/monitors, MRIs) followed by specific advertising examples of when the neuro element is tracking above or below average. Do you just roll ads that were tested on TV into your digital and other (e.g. billboard) content? Depending upon the channel, the ads should be recut. For example, iconic triggers work best on billboards and more functional use screens (iPads/tablets), whereas particular cuts of a longer ad should wind up in a shorter spot that’s rearranged for social media.
  • The Control (Freak) Enthusiast–Michael Tchong decribes a trend among the US population that’s growing increasingly obsessed with having control over all things at all times. Think about how the control phenomenon has seeped into your life, too. You know exactly how far away your Uber driver is, every movement of your Amazon order, and when your pizza from GrubHub will be arriving—we’re all becoming Control Enthusiasts. What does this mean for your brand?
  • Shark Tank Stories for dwindling attention spans—You have to make heads “turn” not “spin”. Don’t just revise your 50-slide decks. Instead, if you receive one of these monster decks, reply to the attached document simply saying “TL;DR” (too long; didn’t read) to disrupt your reporting and inspire a sea change. Insights NEXT scheduled a ‘shark tank’ session where four talented companies pitched their ideas and of the four, the pitch by Anders Bengtsson from Protobrand, won the shark tank portion.

Life is hectic and budgets are tight, but you can’t afford not to learn and grow. You can afford to send each of your team members to a few free webinars, a local chapter event, or to the next great conference where you can meet your peers, new vendors, and get exposure to the latest ideas and technology. 

Kelsey Saulsbury of Schwanns summed up the conference imperative in a single phrase uttered by a squealing child on an Easter Egg Hunt at her cousin’s house, “Look everywhere!”

Julie Kurd thrives in hectic, dynamic environments full of shiny thinkers with snowflake personalities.

Topics: conference recap

7 Things Yoga Can Teach Us About Product Innovation

Posted by Judy Melanson

Thu, May 04, 2017

yoga group sitting-1.png
Last month I spent a week in Costa Rica attending a yoga retreat and returned home feeling relaxed and balanced. As I reflected upon what I learned, I realized that what was driving my positive feelings can be applied equally well to driving success in new product innovation.

I recently wrote an article commending brands for thinking “outside the box” to drive innovation, so this parallel struck me as a relevant and timely follow up. Here are the seven steps:

Step 1: Remove Distractions

At the retreat, we were encouraged to remove distractions that interfere with being present and mindful. Try this: take a couple deep breaths, focus on steady breathing, and try to quiet your mind. Once your mind is clear, you may find yourself at peace, more relaxed, and with space to visualize your goals. Similarly, when embarking on new product innovation, a company needs to remove distractions, ground itself, and make space to visualize its goal(s). 

Step 2: Articulate the goal and visualize a successful future

Now you have space to identify your goals and visualize the futureto explore your personal purpose and to consider your North Star (your guidance). Similarly, brands must recognize and articulate the purpose of its new product innovation:  Why is innovation important (or necessary) to the organization? What are the desired outcomes? Is it attracting new (next generation) customers or reengaging current ones?  What brand benefits (or positioning) can be leveraged?  What is the North Star: Where will success take the organization? 

Step 3: Identify the roadblocks

To progress along the path of personal development, at the retreat we identified the barriers to achieving our goal. This is personal and can be challenging, but if roadblocks aren’t identified early on, it’s possible that you’ll run into them later. What’s holding the organization back? Is there anyone or anything that is preventing/hindering innovation? How can these obstacles be overcome?

Not all barriers are negative. When I’m working with clients on new product development, we look for the constraints–the rules by which the innovation must exist. While it’s tempting to chafe at the constraintsto react negatively to existing guiderailswe’ve learned about their value. Without any constraints, it’s easy to lose your way. Paradoxically then, these constraints can become a tool of innovation.  

Step 4: Stretch your thinking

With your mind clear, goals outlined, and obstacles identified, it’s time to start moving. Brands need to step outside their comfort zone into an expanded way of thinking, so develop an action plan to stretch your perspective and view of what’s possible. For me at the retreat, the action that brought me out of my comfort zone was yoga dance (!!), but brands should consider other methods. How about running a Co-Creation session? Or instead engage a panel of thought leaders or futurists on perceptions of where the industry is headed. Perhaps reach out to some Gen Z-ers, artists, or hackerssomeone who will make you think differently. If a brand is open and mindful, it’ll find points of inspiration. 

And remember to keep goingeven when you think you’re done. Just like in yoga, the work starts when you’re getting tired.

Step 5: Draw from and reflect energy back to your community

Sometimes it feels like you’re the sole voice of change, but recognize that you are part of a greater ecosystem. In yoga, this community is called your “sangha” and can provide strength, power, and support when you need it. Seek it out. Listen for it. Feel it. Innovation demands teamwork and collaboration across multiple teams, so leverage these different insights and perspectives.

Step 6: Service for others

At the retreat, I learned that yoga is something far more powerful than a fitness routine or a timeout from a busy life. Yoga is a transformative tool that enables you to show up for others and be of service to them. Similarly, an organization seeking innovation needs to act in service of its consumers. It must believe in and clearly articulate the benefit innovation provides to the consumer. Focus on how it will positively serve the consumer instead of the features and functionality it provides.

I’ve been in sales for most of my life, but I’ve never considered myself a “salesperson”.  I like to consider myself a “facilitator”—someone who helps people/brands accomplish their goals. I’m motivated by this place of serving others.

Step 7:  Commit to daily practice

Innovation that drives business results doesn’t happen overnight, and just like yoga, it requires continual practice and study. Even after you’ve launched a new product, you and your team should commit to reviewing results and continued adaptation and growth. My suggestion for daily practice: Turn off your email and go for a walk. Stretch your thinking and listen carefully to those with different perspectives. Be open to learning. Give yourself permission to fail. Just keep trying and never give up.  

I hope these learnings can help ground and focus your plans for new product innovation. I hope you find yourself more confident in your path, with a stronger sense of your organizational purpose and a franker assessment of the barriers. I hope you feel better aligned with the opportunity and to your community. I hope you feel more flexible while still being focused on your goal. 

yoga group posing-1.png

 Namaste (Peace).

Judy Melanson leads the Travel and Entertainment practice at CMB, focused on helping companies prioritize operational and marketing investments to drive positive business results.  An empty nester, Judy now has time in her life to enjoy painting, running and, obviously, yoga!

Topics: product development, growth and innovation

Dear Dr. Jay: How To Predict Customer Turnover When Transactions are Anonymous

Posted by Dr. Jay Weiner

Wed, Apr 26, 2017

Dear Dr. Jay:

What's the best way to estimate customer turnover for a service business whose customer transactions are usually anonymous?

-Ian S.


Dear Ian,

You have posed an interesting question.  My first response was, “you can’t”. But as I think about it some more, you might already have some data in-house that could be helpful in addressing the issue.DRJAY-9-2 (1).png

It appears you are in the mass transit industry. Most transit companies offer single ride fares and monthly passes while companies in college towns often offer semester-long passes. Since oftentimes the passes (monthly, semester, etc.) are sold at a discounted rate, we might conclude that all the single fare revenues are turnover transactions.

This assumption is a small leap of faith as I’m sure some folks just pay the single fare price and ride regularly. Let’s consider my boss. He travels a fair amount and even with the discounted monthly pass, it’s often cheaper for him to pay the single ride fare. Me, I like the convenience of not having to make sure I have the correct fare in my pocket so I just pay the monthly rate, even if I don’t use it every day. We both might be candidates for weekly pass sales if we planned for those weeks when we know we’d be commuting every day versus working from home or traveling. I suspect the only way to get at that dimension would be to conduct some primary research to determine the frequency of ridership and how folks pay.

For your student passes, you probably have enough historic data in-house to compare your average semester pass sales to the population of students using them and can figure out if you see turnover in those sales. That leaves you needing to estimate the turnover on your monthly pass sales.

You also may have corporate sales that you could look at. For example, here at CMB, employees can purchase their monthly transit passes through our human resources department. Each month our cards are automatically updated so that we don’t have to worry about renewing it every few weeks.  I suspect if we analyzed the monthly sales from our transit system (MTBA) to CMB, we could determine the turnover rate.

As you can see, you could already have valuable data in-house that can help shed light on customer turnover. I’m happy to look at any information you have and let you know what options you might have in trying to answer your question.

Dr. Jay is CMB’s Chief Methodologist and VP of Advanced Analytics and holds a Zone 3 monthly pass to the MTBA.  If it wasn’t for the engineer, he wouldn’t make it to South Station every morning.

Keep those questions coming! Ask Dr. Jay directly at DearDrJay@cmbinfo.com or submit your question anonymously by clicking below:

Ask Dr. Jay!

Topics: advanced analytics, data collection, Dear Dr. Jay

If you can’t trust your sample sources, you can’t trust your data

Posted by Jared Huizenga

Wed, Apr 19, 2017

people with word bubbles-2.jpgDuring a recent data collection orientation for new CMB employees, someone asked me how we select the online sample providers we work with on a regular basis. Each week, my Field Services team receives multiple requests from sample providers—some we know from conferences, others from what we’ve read in industry publications, and some that are entirely new to us.

When vetting new sample providers, a good place to start is the ESOMAR 28 Questions to Help Buyers of Online Samples. Per the site, these questions “help research buyers think about issues related to online samples.”

An online sample provider should be able to answer the ESOMAR 28 questions; consider red flagging any that won’t. If their answers are too brief and don’t provide much insight into their procedures, it’s okay to ask them for more information, or just move along to the next. 

While all 28 questions are valuable, here are a few that I pay close attention to:

Please describe and explain the type(s) of online sample sources from which you get respondents. Are these databases?  Actively managed research panels?  Direct marketing lists?  Social networks?  Web intercept (also known as river) samples?  

Many online sample providers use multiple methods, so these options aren’t always exclusive. I’m a firm believer in knowing where the sample is coming from, but there isn’t necessarily one “right” answer to this question. Depending on the project and the population you are looking for, different methods may need to be used to get the desired results.

Are your sample source(s) used solely for market research? If not, what other purposes are they used for? 

Beware of providers that use sample sources for non-research purposes. If a provider states that they are using their sample for something other than research, at the very least you should probe them for more details so that you feel comfortable in what those other purposes are. Otherwise, pass on the provider.

Do you employ a survey router? 

A survey router is software that directs potential respondents to a questionnaire for which they may qualify. There are pros and cons to survey routers, and they have become such a touchy subject that several of the ESOMAR 28 questions are devoted to the topic of routers. I’m not a big fan of survey routers, since they can be easily abused by dishonest respondents. If a company uses a survey router as part of their standard practice, be sure you have a very clear understanding of how the router is used as well as any restrictions they place on router usage.

You should also be wary of any sample provider who tells you that your quality control (QC) measures are too strict. This happened to me a few years ago and, needless to say, it ended our relationship with the company. This is not to say that QC measures can’t be too restrictive, and in those cases you can actually be throwing out good data.

At CMB, we did a lot of research prior to implementing our QC standards.  We consulted peers and sample providers to get a good understanding of what was fair and reasonable in the market. We investigated speeding criteria, red herring options, and how to look at open-ended responses. We revisit these standards on a regular basis to make sure they are still relevant. 

Since each of our tried and true providers support our QC standards, when a new (to us) sample provider tells us we’re rejecting too many of their panelists due to poor quality, you can understand how that raises a red flag. Legitimate sample providers will appreciate the feedback on “bad” respondents because it helps them to improve the quality of their sample.

There are tons of online sample providers in the marketplace, but not every partner is a good fit for everyone. While I won’t make specific recommendations, I urge you to consider the three questions I referenced above when selecting your partner.

At Chadwick Martin Bailey, we’ve worked hard to establish trusted relationships with a handful of online sample providers. They’re dedicated to delivering high quality sample and have a true “partnership” mentality. 

In my world of data collection, recommending the best sample providers to my internal clients is extremely important. This is key to providing our clients with sound insights and recommendations that support confident, strategic decision-making. 

Jared Huizenga is CMB’s Field Services Director, and has been in market research industry for nineteen years. When he isn’t enjoying the exciting world of data collection, he can be found competing at barbecue contests as the pitmaster of the team Insane Swine BBQ.

 

 

Topics: methodology, data collection

Don't Over-Generalize My Generation

Posted by Reed Guerino

Wed, Apr 12, 2017

Dollarphotoclub_103845102-1.jpgI’m sure you’ve heard that Millennials are entitled narcissists (or mold-breaking visionaries) and Gen Z expect instant gratification (or they have the most integrity of any generation yet). Of the companies pouring millions of research dollars into generational research, who’s getting it right? Well maybe nobody.

In fact, we can’t even agree on where one generation begins and the other ends. Millennials are generally considered those born between 1980 and 2000, but there’s disagreement over the exact years—some say it’s as loose as the mid-1970s to the mid-2000s while others say strictly between 1980 and 2000.  When you’re comparing mid-1970 to 1980 and 2000 to mid-2000, it’s not a huge discrepancy. However, the point is that there is a discrepancy. And with growing interest in the emerging generation (Gen Z, “Post-Millennials”, "iGeneration", "Plurals"), once again we face an arbitrary age designation and battle over who best understands these future consumers.

As a market researcher myself, I'm the first to admit that researchers will be tempted to define and assign attributes to Gen Z early on because of our natural tendency to categorize and bucket into mutually exclusive groups. However, in our need for clean groups with labels, we forget that some groups aren’t mutually exclusive, and different groups (or in this case, generations) might share some overlapping qualities.

What’s more, generations aren’t as homogenous as we’d like to think. While normally there are overarching behaviors and attributes assigned to each age group, there can be room for variations among the cohorts. For example, we recently released a report where we found a segmentation of Millennials revealing five distinct personas with various preferences, attitudes, and behaviors. Our self-funded study focused specifically on financial behaviors, but it can serve as a microcosm for the rest of the generation. You can learn more about it here. This research underscores the potential for inaccuracies that can result from defining a generation too narrowly.

There will always be a place for analysis by generation, but we have a lot more data to consider today than ever before. In his 2013 book "Buyographics", Matt Carmichael reaffirms the importance of demographics, but emphasizes analysis shouldn’t stop there. He explains, "Demographics drive consumer behavior, and that's as true today as ever. We just have better means, thanks to more data sources, of measuring those behavioral impacts and targeting around them. All data needs to be considered through a broader lens and put into context."

Cuts by generation alone ignore the impact of geography and make assumptions about how age influences behavior and psychographics. For example, we often find our psychographics (e.g. our attitudes and aspiration), regardless of age, are good indicators of who we are and who we want to be. In fact, these aspirations (e.g. Who do I want to be?) are strong motivators of brand consideration and loyalty. This means if two people from separate generations can identify with the same type of person, they'll likely share an affinity for the brand because of that identification, not their age.

We'll hear a great deal about who Gen Z is in the next few years until they are eclipsed by the next group. But researchers, advertisers, and marketers should take heed against categorizing Gen Z—and the ensuing generations—solely by their date of birth. Without a multi-faceted approach to understanding consumers (considering demographics, psychographics, etc.), we'll continue to yield narrow insights that may result in marketers producing ads that alienate their target audiences.

Want to learn more about Millennials’ financial needs and expectations and what that means for your industry? Check out our webinar!

Watch here!

Reed Guerino is an Associate Researcher at CMB who is an entitled Millennial on the side and is bitter he missed being the “mature and in control” generation by 1-5 years.

Topics: millennials, Consumer Pulse, research design

Spring into Data Cleaning

Posted by Nicole Battaglia

Tue, Apr 04, 2017

scrubbing.jpegWhen someone hears “spring cleaning” they probably think of organizing their garage, purging clothes from their closet, and decluttering their workspace. For many, spring is a chance to refresh and rejuvenate after a long winter (fortunately ours in Boston was pretty mild).

This may be my inner market researcher talking, but when I think of spring cleaning, the first that comes to mind is data cleaning. Like cleaning and organizing your home, data cleaning is a detailed and lengthy process that is relevant to researchers and their clients.

Data cleaning is an arduous task. Each completed questionnaire must be checked to ensure that it's been answered correctly, clearly, truthfully, and consistently. Here’s what we typically clean:

  • We’ll look at each open-ended response in a survey to make sure respondents’ answers are coherent and appropriate. Sometimes respondents will curse, other times they'll write outrageously irrelevant answers like what they’re having for dinner, so we monitor these closely. We do the same for open-ended numeric responsesthere’s always that one respondent who enters ‘50’ when asked how many siblings they have.
  • We also check for outliers in open-ended numeric responses. Whether it’s false data or an exceptional respondent (e.g. Bill Gates), outliers can skew our data and lead us to draw the wrong conclusions and make more recommendations to clients. For example, I worked on a survey that asked respondents how many cars they own.  Anyone who provided a number that was three standard deviations above the mean was set as an outlier because their answers would’ve significantly impacted our interpretation of the average car ownershipthe reality is the average household owns two cars, not six.
  • Straightliners are respondents who answer a battery of questions on the same scale with the same response. Because of this, sometimes we’ll see someone who strongly agrees or disagrees with two completely opposing statements—making it difficult to trust these answers reflect the respondent’s real opinion.
  • We often insert a Red Herring Fail into our questionnaires to help identify and weed out distracted respondents. A Red Herring Fail is a 10-point scale question usually placed around the halfway mark of a questionnaire that simply asks respondents to select the number “3” on the scale. If they select a number other than “3”, we flag them for removal.
  • If there’s incentive to participate in a questionnaire, someone may feel inclined to participate more than once. So to ensure our completed surveys are from unique individuals, we check for duplicate IP addresses and respondent IDs.

There are a lot of variables that can skew our data, so our cleaning process is thorough and thoughtful. And while the process may be cumbersome, here’s why we clean data: 

  • Impression on the clientFollowing a detailed data cleaning processes helps show that your team is cautious, thoughtful, and able to accurately dissect and digest large amounts of data. This demonstration of thoroughness and competency goes a long way to building trust in the researcher/client relationship because the client will see their researchers are working to present the best data possible.
  • Helps tell a better storyWe pride ourselves on storytelling–using insights from data and turning them into strong deliverablesto help our clients make strategic business decisions. If we didn’t have accurate and clean data, we wouldn’t be able to tell a good story!
  • Overall, ensures high quality and precise dataAt CMB typically two or more researchers are working on the same data file to mitigate the chance of error. The data undergoes such scrutiny so that any issues or mistakes can be noted and rectified, ensuring the integrity of the report.

The benefits of taking the time to clean our data far outweigh the risks of skipping it. Data cleaning keeps false or unrepresentative information from influencing our analyses or recommendations to a client and ensures our sample accurately reflects the population of interest.

So this spring, while you’re finally putting away those holiday decorations, remember that data cleaning is an essential step in maintaining the integrity of your work.

Nicole Battaglia is an Associate Researcher at CMB who prefers cleaning data over cleaning her bedroom.

Topics: data collection, quantitative research

ARF 2017 Annual Conference

Posted by Savannah House

Mon, Mar 27, 2017

NYC-1.jpg

Last week I attended the 2017 Advertising Research Foundation’s (ARF’s) Annual Conference in New York City. Researchers, advertisers, marketers, and everyone in between descended upon the Hilton in Midtown for two days of keynote addresses, presentations, demos, networking, inspiration, and more.

This being my first ARF conference, I wasn’t sure what to expect. But I give the ARF high marks for carefully cultivating and selecting their speakers to ensure attendees are exposed to the industry’s best.  

There’s a lot I could write about, but as I reflect on my time at ARF, there were a couple of “highlights” that I’d like to share:

The Longevity of Stories

The average brand lasts for 15 years. So how does a brand like Levi’s manage to not only last, but remain culturally relevant and desirable for 143 years? By storytelling.

Levi’s is a unique product because the jeans themselves bear the markings of the customers’ lives—every mark, tear, and rip—the product itself tells a meaningful story. Recognizing the power of storytelling, a big part of Levi’s marketing strategy is creating conditions to let people tell their personal stories. The brand aligns themselves with centers of cultural movements, like Coachella and SXSW—two events at the center of art, music, and innovation—to foster experiences for their customers.

Traditional advertising is important to Levi’s—they still use qual and quant methods  to test their ad creative—but it’s a much smaller part of their marketing mix. As CMO Jennifer Sey explained, the Levi’s brand is carried through the generations—from the rebels of the 50s, the punks of the 70s, to the hipsters of the 2000s—by the stories created.

The lesson? To become the “youngest oldest brand in the world”, you must tell meaningful stories about your brand and create conditions that let people tell their own.

Equal Representation in Advertising

Step aside, Brawny Man. There’s a new Brawny Woman in town.

During a lunch roundtable, Douwe Bergsma, CMO of Brawny’s parent company Georgia Pacific, shared the company’s desire to create a better emotional connection with consumers. So, for the month of March, the iconic Brawny paper towel man has been replaced with a woman to support their #StrengthHasNoGender campaign.

This move comes as Georgia Pacific recently teamed up with the #SeeHer movement, led by the Association of National Advertisers (ANA), to increase the accurate portrayal of women and girls in media through the new Gender Equality Measure (GEM). Replacing the burly man with a strong woman figure was a way for Georgia Pacific to breakdown stereotypes and support equality among men and women in advertising—while garnering positive GEM scores.

It’s becoming increasingly important for brands to be cognizant of equal representation in their messaging. Heavy hitters like AT&T are making the GEM score a standard measurement in their marketing efforts, and based on Georgia Pacific’s recent success, maybe other brands should follow suit.

Creating Personal Customer Experiences

 Customers like to feel special and valued. So, fitness king Nike teamed up with creative agency R/GA to create the ultimate customer experience. Using data, algorithms, and machine learning, R/GA engineered Nike on Demand—a humanized interactive messaging service through WhatsApp—to help motivate and keep athletes on track to overcome barriers and achieve their fitness goals.

Whether athletes are training for a marathon or overcoming an injury, Nike on Demand is particularly motivating because it’s a person sending words of encouragement, not a robot. This humanization of communication creates a special bond between athlete and Nike—ultimately driving usage and brand loyalty.

While Nike on Demand is a large-scale program, brands can glean some high-level insight from this case study. It’s a fantastic example of a brand leveraging personalization to create custom experiences that let their customers know they are special.

Aligning Content with Motivation

As the adage goes, “content is king”. And as content marketing becomes more important for brands, it’s critical that creative is brought to life in a way that’s meaningful and relevant to consumers.

Vicki Draper, Director of Consumer Analytics and Research at AOL, Inc., Dr. Niels Schillewaert, Co-Founder and Managing Partner at InSites Consulting, and our own Dr. Erica Carranza, VP of Consumer Psychology at CMB, shared insights into their discovery of eight content moments—motivations for why people engage with content—and how brands can use these moments as “guardrails” for the type of content they should be producing.

Instead of producing content just to keep up with the Joneses, focusing on the behavioral motivations for why consumers engage with content will help brands develop an intentional and strategic content marketing strategy.

If there’s one overarching lesson I learned at ARF 2017, it’s that marketing is as much an art as it is science. The most successful brands are those who are diverging from traditional techniques, challenging norms, and finding new ways to innovate to keep customers engaged and happy.

The ARF Annual Event is definitely on my list of must attends for 2018! Did you attend? Let us know what inspired you in the comment section below!

Savannah House is a Senior Marketing Coordinator at CMB who after ARF 2017 is inspired to make new memories and tell more stories in her pair of Levi's 501 jeans. 

Competition is fierce:  How to innovate to drive value

Posted by Judy Melanson

Wed, Mar 22, 2017

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In April, fast food giant McDonald’s will run a promotion to drive more foot traffic to their restaurants: customers will pay $1 for any size soda and $2 for any McCafe specialty drinks. While this short-term promotion may help reverse or at least slow the decline in visitors and boost short-term sales, McDonald’s still faces a long-term problem that a temporary price promotion can’t fix: how to drive more visitors and encourage those visitors to spend more money at their outlets. 

Increased competition and changing market needs are making it increasingly challenging for brands like McDonald's to acquire new customers while retaining existing ones. And this challenge isn’t confined to the food and beverage industry; marketers across all industries are rolling up their sleeves, putting on their thinking caps, and developing innovative strategies to stay relevant and competitive.

Here are a few stories to inspire you:

Evolution or Revolution: Opportunities to strengthen the core 

As the tourism industry evolves, heritage brands need to get creative to compete with new marketplace entrants. We’ve been working with a leading travel brand to identify opportunities to boost sales among its past travelers. First, we ran a database segmentation to identify groups of travelers with similar demographics and behaviors.  We then conducted product development research to uncover trip attributes and types of trips that would most motivate these past travelers to return.

Because of this collaboration, our client has a prioritized list of product features to consider offering to its most valued and engaged guest segments. Some preferred options are evolutionary, requiring only minor operational tweaks, others would require significant operational changes. In the short-term, they can use this information in their marketing efforts and develop tailored messaging that highlights elements that motivate each segment to travel.  When thinking long-term, the client can use this valuable information to make strategic decisions about the future of their company.                  

Engage and Grow: Offer benefits to acquire and incentivize the next generation of customers

Travelers today have more lodging options than ever before. As Millennials and Gen Y grow into “tomorrow’s best guests”, traditional hotel brands are looking to foster loyalty.  We partnered with a leading hotel loyalty program to redesign its pricing model so that members can now pay for rooms by combining earned hotel points and cash.  This change is engaging "future best guests" by allowing loyalty program members to get value from earned points in smaller increments.  Guests can redeem points earlier in their engagement cycle, incentivizing them to choose one of the hotel’s dozen brands now and in the future.

Build solutions to solve pain points

Customers and prospects may have difficulty articulating their needs (particularly when it comes to technology) but they have no trouble articulating what causes problems or pains.  Companies can take advantage of this by proactively identifying and solving for customers’ pain points. We worked with a leader in personal computers, servers, and networking products to identify, size, and target specific pain points with traditional data center infrastructure projects. With this knowledge, we designed and tested different form factors to see which type of disruptive product would be most attractive to target buyers, and how many would actually switch over in specific buying scenarios.

Strengthen foundational insight about today’s path to ‘purchase’

We’re a far cry from the traditional broadcast days. Not only are new players entering the market and pushing out original content, but now consumers can access this content when, where, and how they want.  This increased competition and increasingly complex distribution and consumption model is making it more challenging for broadcasters to connect and engage with viewers. To help understand this evolution, we collaborated with a leading broadcast network on a foundational study in the content discovery path to viewership and successfully identified specific actions and high impact segments to connect with and engage. 

The fact is, solutions like McDonald’s temporary price promotion may alleviate short-term sales slumps, but brands need to be thinking “bigger picture” to develop innovative, sustained solutions to address long-term challenges like increased competition and evolving customer needs.

 Judy Melanson leads CMBs Travel & Entertainment practice and enjoys working with clients on innovative strategies to stand out from competition, remain relevant, and break through the clutter.  She’s an aspiring painter, a yogi and a slow long-distance runner. 

Topics: customer experience and loyalty, growth and innovation

Don’t get ganked! What the rise of esports can teach us about building products that survive

Posted by Josh Fortey

Tue, Mar 14, 2017

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PAX East just left town and if you don’t know what esports is—let alone what “ganked” means—you’re missing out. While traditional team sports continue to rule the roost in the American sports landscape, esports have become the fastest growing spectator sport.

To put this into perspective, the 2016 NBA championship finals game garnered 31 million viewers, the highest count of a NBA finals on both ABC and ESPN in over 10 years. Yet more people—36 million in 2015 and 43 million in 2016— tuned in to watch some of the world’s best League of Legends teams battle it out across the Summoners Rift for the world championship crown. But these remarkable figures aren’t unique to League of Legends. Twitch, the world’s largest gaming-orientated streaming platform, clocked in 95 million hours of esports streaming across the top 10 esports titles in January 2017 alone. And that 95 million hours of esports streaming is just one third of all the streaming that happened in January for these top ten esports titles. In addition to these staggering numbers, esports has effectively carved out a niche of digitally-engaged younger gamers; approximately 1-in-5 of all Millennials are now regularly watching esports online.

Based on this strong viewership, it’s no surprise that the esports category is estimated to surpass the $1.5 billion mark by 2020. But looking beyond these remarkable numbers, esports serves as an excellent example of an industry—comprised of brands, publishers, and developers—that continues to successfully deliver on rapidly changing consumer needs despite being in a constant state of adaptation, progression, and evolution. These factors are all important in understanding the meteoric rise of esports, but they also serve up a number of lessons about listening to your customers. Lessons that brands, marketers, and product innovators must learn if they want to develop products that stand the test of time:

  • Deliver meaningful experiences. The esports graveyard is littered with failed games that sent the right message to consumers and appeared to have the “winning formula”, but ultimately just didn’t cut it. Let’s look at Infinite Crisis. Infinite Crisis launched with all the makings of "the next big thing” in esports gaming: development by Turbine, the reputable gaming studio owned by Warner Bros., financial backing from a major IP in DC Comics, a spin on the hugely popular multiplayer online battle arena (MOBA) genre, an extensive beta testing phase, and a highly accessible free-to-play business model. But despite these attributes, just two months after launch, development of Infinite Crisis ended. Why? Because its makers failed to nurture a critical mass of consumers across a generic gaming audience and ignored users’ complaints of unbalanced gameplay. Infinite Crisis serves as an example of what can happen when a brand doesn’t consider what its community of users/customers is telling them about their experience.
  • Nurture your community. The Infinite Crisis example also emphasizes the importance of nurturing and listening to your community. The growth of esports is largely driven by its engaged users, and so fostering these communities is key. Fostering a community is mutually beneficial to the brand and the user—the brand enjoys increased user retention while its customers have the satisfaction of knowing they are valued.
  • Community interactivity and engagement. Brands committed to their customer communities enjoy a more genuine dialogue with their users—ultimately helping strengthen customer loyalty. Strong brands recognize this as a cornerstone to a successful esports game. Take gaming giant Blizzard and its wildly successful game Overwatch. Overwatch developers pay close attention to feedback provided on their forums (underscores the importance of my first point, too), updates users on product developments, enhancements, and innovations (or product patches), and provide detailed product roadmaps. In the world of gaming, players aren’t just customers; they’re fans, loyalists, and advocates who deserve to be engaged and updated.
  • Embed consumers in product development. When gaming companies foster a community, they open up the possibility of embedding consumers into the early stages of product development. Across many of the most successful competitive gaming titles, publishers rely on the customer voice to formulate and enhance the brand experience from early alpha testing to open public test environments. Dota 2, a successful MOBA title, takes an innovative approach to embedding customers into its esports product strategy by crowdsourcing and crowdfunding. For example, the proceeds from players’ in-game cosmetic (items that don’t affect gameplay) purchases are partially donated to its competitive tournaments prize pools. Users can also create their own cosmetic items that can be sold through an online marketplace. Both initiatives resulted in Dota 2 customers amassing a staggering $20 million in prize money for its 2016 world championship tournament, The International—the largest overall prize pool in esports history.

Esports and competitive gaming are gleaming examples of how an industry has successfully used its customers’ voice to create sustainable and attractive products/experiences. It also demonstrates the perils of ignoring customer needs. Infinite Crisis is just one example among myriad others, including Dawngate, Battleborn and Minions. If there’s an overarching lesson to be learned from the explosive success of esports, it’s that brands should first and foremost prioritize the needs of its customers.

Josh Fortey is a Project Manager at CMB who is all too familiar with the feeling of being “ganked”.

Topics: product development, customer experience and loyalty, growth and innovation