Voices: the CMB Blog

Originally published on Loyalty 360

I love New Year’s Resolutions!  Every December, I enjoy reflecting on what I’ve learned in the last 12 months, and set goals to grow professionally and personally.  On my list again this year, is studying opportunities to drive customer engagement—understanding how companies in the travel and hospitality industries can use new techniques and technologies to drive loyalty and ultimately profits.Every two years, Marketing Science Institute (MSI), a think-tank bridging academic theory and business practice, reaches out to thought leaders to set its priorities for upcoming research and conferences.  MSI’s “Priority Topic” list reflects marketing’s key challenges and opportunities (see the full list here). Topics include: Big Data; insight into people as consumers; rethinking the journey to purchase (and beyond); and mobile’s impact on how people live their lives. 

If you were to improve your organization’s effectiveness in any of these areas, chances are good you will increase your customer’s engagement and loyalty.  My “2013 professional resolution” is to share learnings about each of these Priority Topics.

Today, let’s tackle Big Data:  leveraging the customer and market information available to drive business results.  Although the topic of Big Data is just that— “Big,” the reality is when you break it down into small steps you can begin to drive customer engagement with data you already have on hand.

Big Data: The promise and the pitfalls

As computers and cell phones play an increasingly important role in consumers’ daily activities, mountains of data are collected and stored by travel and hospitality companies.  From customer transactional (e.g., bookings, loyalty program redemptions, web site visits, call center logs) to interactional data (e.g., posts on Facebook) and observational data (e.g., networked sensors in cellphones or cars), the amount of data available for analysis is immense and expanding daily.    

When it comes down to it, Big Data is useful only as we are able to glean useful business intelligence from all this data.  The true value of Big Data (or any data for that matter) is not in the bits and bytes but in using the knowledge gained to help you make better decisions—to reduce the chances of making a bad decision and to help you “sleep better at night.”  Companies can leverage big data in a number of ways including product and service development, process improvements, and revenue management.

Some companies who’ve found success with Big Data engagements (outside of travel and hospitality) include:

• Amazon.com, eBay, and Google continuously test factors—from where to place buttons on a Web page to the sequence of content displayed—to determine what will increase sales and user engagement. 

• Capital One continues to refine its methods for segmenting credit card customers and for tailoring products to individual risk profiles. According to Nigel Morris, one of Capital One’s cofounders, the company’s multifunctional teams of financial analysts, IT specialists, and marketers conduct more than 65,000 tests each year, experimenting with combinations of market segments and new products.

• The online grocer Fresh Direct adjusts prices and promotions daily (or even more frequently) based on data feeds from online transactions, visits by consumers to its website, and customer service interactions. 

The pitfalls: 

Quantum physics might be easier to explain than Big Data and brain surgery might be easier to do!  Not only do you need to conceptualize the plan, structure the data, acquire the software and/or analysis tools but then you need to do the analysis.  This is hard to get your head around! 

Big Data exercises to predict customer behavior have been met with limited success.  Netflix offered a $1 Million prize to the firm that could improve its movie selection algorithm by just 10%.  Three years later, a group managed to create a model using available data however the formula was too complicated for Netflix to implement.   If you haven’t read it yet take a few minutes to check out this HBR post that talks about the challenge of modeling consumer behavior: Big Data Hype (and reality).

Big Data: Baby steps

Here are some practical ideas for you to begin to look to incorporate some ‘Big Data’ activities into your 2013 plans:

• Link financial data to your customer satisfaction.  Understand the monetary value (in the short and long-term) of a satisfied guest to make informed decisions on investments and initiatives. 

• Build bridges between different data sources.  First, use the same categories to code responses in your customer satisfaction study, social media analytics and your call center. Second, ensure a person is tagged with the same identifier in all data sources so you can look at a customer’s responses across the silos of your organization. 

• What? So What? Now what?  Start your quest for decision-support with the end in mind.  Get agreement on the “Essential Question” you are looking to address, and identify the supporting information (from all relevant sources) you need to support your recommendations.  Make sure your recommendations answer the question:  Now what action should I take? 

We see a bright future for travel clients in using Big Data for building engagement and loyalty.  Develop a plan to answer your Essential Questions and, then you will be in a better position to practically analyze the right data from the right data sources – applying a laser-like focus on the problem you are trying to solve. 

How will you use Big Data (or any data for that matter) to drive customer engagement and loyalty in 2013?

Judy is VP of CMB's Travel & Entertainment practice and loves collaborating with clients on driving customer loyalty.  She's the mom of two teens and the wife of an oyster farmer. Follow Judy on Twitter at @Judy_LC

If you’re a Patriots fan you know there’s one thing that’s more consistent than Bill Belichick’s one word answers, it’s his mantra: Do your job. We’ve heard it a hundred times, and while it sounds simple, that kind of focus and trust in your team takes not only a special kind of leadership and management, but a clear understanding of the difference between the two.

As we move into this weekend with the highly anticipated match-up between the Ravens and the Patriots it’s clear success runs deep at Gillette Stadium; both rich in history and woven into the very fabric of the “Patriot Way”. It’s about leadership, management, mentoring and culture, but at its core the foundation of the Patriot Way is built on the trust that everyone on the team will “do their job”.

As Tom Brady says in the interview the message is simple: “You do your job so that everyone around you can do their job and when people trust each other you can play with anticipation and confidence.” That’s a pretty powerful statement, both on and off the football field. It speaks to their ability to focus and not worry about what everyone else is doing. There’s a lot that can be learned from the way the Patriots not only lead, but manage their success.

The Kraft family and Bill Belichick have built a culture that not only values leadership and management, but understands the differences between the two.  In a recent HBR Blog Management Is (Still) Not Leadership, Dr. John Kotter discusses this very point. Leadership is not something that is for those at the top of an organization; leadership should be fostered and cultivated throughout an organization. One could argue Belichick is not about leadership (and certainly not about charisma), but more about process, focus and management. He operationalizes success through having the team focus on doing their job. While leadership is something that must start at the top, no organization can afford to have it stay at the top. Listening to that clip it’s clear the Patriots have a deep bench when it comes to leadership.

Since we are Market Researchers and everyone loves numbers to back up observations, here are some numbers to chew on:

10 AFC East titles since Belichick became coach in 2000

5 Super Bowl appearances

3 Super Bowl Championships

To put this into perspective in the previous 40 years before he became coach the Patriots won the AFC East 4 times and lost in their 2 Super Bowl appearances. How’s that for doing your job! Go Pats!

Kristen is CMB's VP of Marketing, a mom of two, loves the Patriots, and is focused on doing her job. Follow her on Twitter: @KristenGarvey

After 19 weeks, we’re finally ready to see which two teams will meet on Super Bowl Sunday, battling it out to determine the NFL’s best. I'm really looking forward to February 3rd, because I love football, and because I've got a new take on looking at the teams. After 3 years at CMB, it’s not surprising that a market research perspective has crept into a few areas of my non-work life. Case in point, I found myself thinking about how the NFL season compared to deciding on a segmentation scheme.

I got my first experience with a segmentation project last year, and I found the process of evaluating the different schemes particularly interesting. The schemes that move past the initial round of evaluation often have a few things in common, but there is usually a differentiating factor that makes each scheme unique. In the end, the winning scheme will be the overall strongest of the bunch based on how it supports key business decisions like audience prioritization, messaging and targeting. Evaluation in the NFL is simpler— more points wins.

In the NFL, the 12 teams that make it to the playoffs also have a few things in common. A team usually needs strong (or at least competent) quarterback play to make it to the playoffs, as well as strong coaching. As of this week, we have four teams that definitely have those two factors, but there are distinguishing factors as well:

Atlanta Falcons
The Falcons have a dynamic passing attack led by a quarterback who seems to be reaching his full potential this year, along with two Pro Bowl caliber receivers and a Hall of Fame tight end.  This gives the offense the ability to go downfield with ease, which helps to open up running lanes for Michael Turner and Jaquizz Rodgers.

San Francisco 49ers
The 49ers spent Saturday night putting the rest of the NFL on notice; they finally have an explosive offense to match their bruising defense. With Colin Kaepernick at quarterback, the 49ers have the ability to make big plays on the ground or through the air. They have arguably the best offensive line in the league, with a coach who is a creative offensive mind that takes advantage of this strength.

Baltimore Ravens
The Ravens have a reputation of being a strong defensive team that does enough on offense to win. This year has been kind of a change of pace, with the offense carrying a number of games. The defense is as healthy as it’s been all year, but I would say the offense is still the better of the two units on this team. Joe Flacco has the ability to throw the ball down the field and is a proven playoff performer, and they have a strong running game with Ray Rice.

New England Patriots
No other team can score like the Patriots. Just last weekend they showed they have guys on the bench, like Shane Vereen, who can come into the game and make plays. They have the best quarterback (by far) of the remaining four teams, and enough offensive personnel to run any number of different formations and plays. The scary part about this team is how well their defense is playing. With that combination of two strong units, this team doesn’t have any glaring flaws to point out.

Taking a look at these four teams, I think two stand out. If I were picking my ideal team/scheme I would want to use the Patriots or the 49ers models for victory. If I’m right these two teams will meet in the Super Bowl, which would make for a great game.

Sean is a Senior Associate Researcher at CMB. His lackluster high school football career, spent mostly on the sidelines, led him to the hobby of amateur football analysis. He is a lifelong 49ers fan, but this bias barely affected his prediction.  

Learn more about our proven approach to Segmentation Research.

You may have heard the latest from Disney—they’re about to introduce a new “MagicBand” wristband letting wearers take advantage of perks like skipping to the front of the line for rides, as well as pay for meals, and purchase gifts.  It offers guests the ability to leave the wallet and paper tickets at home and focus on having fun.  The benefits to Disney can be huge, and a lot of people are seeing it that way; as one headline proclaimed: “Disney creates the happiest data mine on earth.”  Pretty clever, but of course there are those who aren’t quite as happy about the innovation; besides the thought of Big Brother entering our lives, won’t somebody think of the tan lines?But let's focus on the business aspect, the ability to track all activities and purchases on-park creates an immense opportunity for marketing, and much of the chatter concerns how Disney can use the data for direct marketing.  Did the guest ride all of the roller coasters?  Target promotional offers touting the latest thrill rides.  Did the guest get a picture with one of the cast members?  Send a doll to the guest’s suite to increase engagement.  Did the guest make a purchase at any of the retail stores?  Give them a coupon for a Disney store near their home.

Nearly everyone is coming up with ideas for how this might help Disney directly sell more of what it offers.  I’d like to think about how Disney can learn from this data in order to innovate and improve the experience.  In the direct marketing examples, the data remains data— it’s used solely to trigger marketing offers.  For market researchers, the data isn't useful until we find relationships that are relevant to decisions.

So, here is my challenge for you: what type of analysis do you think needs to be done?  What potential relationships might Disney find to innovate and change the experience?

I’ll get it started:

Disney could run on-property communication tests to improve messaging and information delivery.  By placing unique signs throughout the park, Disney can track all guests who pass each sign and capture behaviors after passing the sign.  Instead of waiting many weeks or months to gather feedback, Disney can get an “immediate” understanding of which signs work best – and potentially why.

Tell me your ideas in the comments:

Jeff is VP, Market Science Solutions at CMB. He'll have a pair of shiny new mouse ears for the most interesting idea. If he's not wearing his wristband you can still find him tweeting @McKennaJeff.

A practical and innovative approach to new product development.

The Challenge

Tauck Worldwide, an industry leader with over 85 years experience in premium guided tours, wanted to create a new travel concept to meet the needs of a population increasingly comfortable with researching, planning, and traveling on their own. Tauck needed innovative thinking to define and build a new type of tour product – one that appealed to next gen customers, conveyed a unique brand identity while standing out from competitors in the crowded travel market space. What We Did

CMB and principals from South Street Strategy Group used a multi-method, multi-source approach to:

• Select top opportunities on which to focus

• Ideate across functions with executives and senior managers, leveraging insight and experience in the market

• Research and assess the competitive landscape and baby boomer’s core  travel goals and needs – particularly un-met needs

• Test alternatives to guide product development, pricing and identify target guests who are most interested in the new product line

• Identify acquisition targets in the travel industry, new business models, and new product offerings, by leveraging core competencies, that would create significant value for the company and address baby boomer’s needs

• Work with the CEO, CFO, and COO and the New Ventures Group to ensure recommendations were aligned with business constraints, addressed operational challenges and met business goals

How It Was Used

Tauck launched the Culturious brand as a totally new product line on time and with unanimous board approval. The new brand, which currently consists of 8 packages and destinations, meets customer needs by offering small-group tours geared toward active baby boomers with an interest in active, culturally engaging travel. The brand has won awards, including the 2010 Innovation prize from the Connecticut Quality Improvement Award Partnerships (CQIA).

To learn more about our approach to New Product and Service Development click here.

For more of our award winning case studies click here.