Voices: the CMB Blog

In this month’s “John’s Corner,” John discusses the limits of benchmarking and its alternatives with CMB's Megan McManaman.

MM: Today we’re discussing a topic that you feel strongly about, the misuse of benchmarking in marketing. Can you tell us what benchmarking is and how it’s used?

JM: Before we get too far along, I want to make it clear that benchmarking is a process aimed at enabling you to become the best through improvements.  It is not a score. Often benchmarking is used poorly in marketing, with too much emphasis on standardized “descriptive” scores. Yes, a comparative score is useful in raising a red flag, but then what should you do for success?  Unfortunately, there are third parties that don’t just offer comparative scores, but encourage you to meet or exceed this score using a diagnosis based on a “standard” set of externally generated criteria.  By focusing on the gaps between you and your competition you are assuming you can become the “best” by essentially copying competitors using criteria. In reality that will actually ensure you will not become distinctive. 

MM: I can see why a “best in class” company might not want to focus on standardized competitor scores, but what about the fifth ranked company, the tenth?

JM: For companies somewhere in the middle I also consider it unlikely they will gain a notable market advantage by closing the gap with higher score competitors.  In fact it could be quite detrimental. A focus on scores using standard measures will obscure what makes your company unique and distinctive.  It is your commitment to innovation that will better your performance and market standing, leading to improved financial performance. Apple does this well. They are a company committed to being distinctive: they would hardly be where they are today by copying others.

MM: It strikes me that this has been a fundamental problem with how benchmarking has been used in marketing from the beginning, is it particularly problematic now?

JM: Yes, it’s true. People are acquiring information differently and at faster rates, and it is not just because of the internet. The myopia that comes with focusing on standard benchmarking scores and gaps is particularly dangerous for companies in a marketplace saturated with a broader set of competitors. In part because people travel more widely, and information is not centralized, there are very few companies that are the “only game in town” and that number will grow fewer. So benchmarking as a process striving for distinctiveness will become even more important.

MM: Could you help me understand what a diagnostic approach aimed at distinctiveness looks like?

JM: Remembering that benchmarking is a process, the essential nature of a best practice is diagnostic: functionally and in what is produced.  In marketing we must aim at a holistic perspective due to the interconnectivity of all the strategic and tactical elements, and also the growing relationship to operations or value delivery.  So, the “diagnostic approach” recognizes the need to know what your competitors are doing, but rather than scoring yourself in comparison, you customize systems and methodologies directly relevant to your unique organization that focus on what will both help you stand out in the marketplace and improve your efficiency.

A process with a customized diagnostic approach allows both small and large companies to account for emerging challenges and opportunities, and be more nimble and distinctive in the face of these changes than companies that focus more on comparative standards.  Innovation and distinctiveness are more important than ever, and a custom diagnostic approach reveals these in a way that a competitive descriptive score based benchmarking cannot.

Download the full conference presentation here: The Perils of Benchmarking 10 things to consider when deciding how you should benchmark against the market.

So what do you think? Does benchmarking stifle innovation? does it encourage marketers to "keep up with the Joneses?"

 “It's the most wonderful time of the year!”  You probably remember the singing parents in the Staples ad. So funny, and true!  And if your kids are college age, like mine, you may have wiped a tear when reading Beverly Beckham’s piece in the Boston Globe, “I was the sun, the kids were my planets.”

Back-to-School is as much about MOM as it is about kids (and teachers).   While moms miss their kids, it’s also time for mom to learn and grow.  Moms welcome the opportunity to do something for themselves for a change, and retailers can help.  You don’t have to sell pencils or lunch bags to participate.  Offer moms the opportunity and ability to learn something new themselves, or renew a prior hobby or sport.  Consider what the following moms said they plan to do, once their children are back in school:

“I’m taking a drawing class!”

“We are expanding the 2^nd floor, so I am picking out new paint and will be doing that.”

“I’d like to re-paint the bathroom and maybe re-decorate the living room.  We’re having company for the holidays, and I want the place to look great!”

There is so much opportunity to talk to moms and help them achieve their short term goals, and maybe some long-term ones as well. Whether you’re a grocer, a paint store, a gym, or you sell yoga mats or tulip bulbs, engage moms by demonstrating how you can help them achieve something this season.  They will re-pay you with their purchases, loyalty, and recommendations.

And don’t forget to also talk to moms about their kids – they’re #1 with them, and they want to explore and enjoy fall with their families.  From leaf peeping and apple picking, to biking and soccer, moms look for ways to connect their families in the midst of busy schedules.

Kathy Ofsthun is an Account Director at CMB, specializing in Shopper Insights.  Follow her on twitter @ShopperMRX, or find her at the mall, a SoHo boutique or the nearest estate sale!

I like to think of myself as a very positive person.  I appreciate the good meal at my favorite restaurant, my laptop’s ease of use, and the friendly service or good prices of our panel suppliers.  But, I’m only human, so when asked, I respond with much greater clarity about the things that irritate me.  Be it the noise in the restaurant, or the broken button on my computer; and when my suppliers provide similar offerings, I factor in how much irritation they’ve caused right along with price and service.

This quality of being much more articulate about what irritates us than what benefits us is salient to those in product and service planning. How do you have a competitive edge on what is important to consumers?   How do you get insight into out-of-the-box ideas that have market appeal?  What attributes should be accounted for in next generation products?  For providers of products and services, seeking market input for new products or feedback on service, a focus on the negative cuts to the heart of differentiation.   

I’m a fan of an old methodology that uncovers generally unarticulated “problems” that consumers have. Problem analysis utilizes long lists of potential problems that may not be top of mind. While it may seem depressing, it produces valuable and useful insights.  Although social media also picks up the negative, problem analysis differs in that it proactively and methodically probes for irritating issues.   These are issues that can direct providers to future “solutions” such as new products, or little considered but notable competitive distinctiveness.

For example, consider a medical equipment supplier that wanted to separate themselves from other competitors by implementing a meaningful service guarantee.   What should be included in the guarantee— friendly representatives, quality products, good prices?  Yes, those are important, and expected by the customers.   As it turned out, customers told us that all suppliers were friendly, were about the same in quality, and had prices in the same ballpark.  

However, while probing for problems, we found some very specific issues causing varying levels of irritation and ranging in importance to the customer.  These were issues which the supplier had not recognized as being real irritants or better yet, real opportunities for distinction.  In terms of service, customers indicated they needed more rapid product replacements.  They also indicated that they wanted representatives that were product trainers more than sellers, and during medical emergencies they had an extreme unmet need to consult with product managers. 

Armed with these insights, the medical supplier equipped a meaningful service guarantee including the “usual” aspects of service with some that would normally not have been included.   In addition, they were able to revamp their sales program and establish a new consulting service. 

I prefer being a positive person, but when it comes to useful market insights, proactive probing of problems is crucial. 

Posted by Anne Bailey Berman. Anne is the President of Chadwick Martin Bailey and enjoys volunteering in the community, traveling with her family and spending time in her vegetable garden.

A recent blog Success Comes From Better Data, Not Better Analysis from Daryl Morey @dmorey on Harvard Business Review raises quite a few interesting and maybe even hair raising questions.  And if you take any of them out of context they have the potential to ruffle quite a few feathers in the market research industry. For example,

“As much as I don't want to admit it, however, the age of the irreplaceable analyst no longer exists, if it ever did…  If better analysts won't create an edge, however, what will?  The answer is better data. Yep, that's right. Raw numbers, not the people and programs that attempt to make sense of them.” Daryl Morey

What!? “Not the people and programs that makes sense of them,” those are harsh words and we all know you can have all the data in the world, but data does not equal insights without having the right people and tools behind it. In fact, at CMB we pride ourselves on our people and tools…but I took a deep breath and read on.

And I’m glad I did. I think what he is really getting at is smart people and the right tools are not enough anymore.  I agree, we do need to be collecting more data – yes, even a “sea of data."  Data that helps us understand the currents and tides and direct change.  Analysts are still, and always will be, vital for categorizing, prioritizing, and making sense of it all. In the end, you never know where you will find the next big idea.  This happens only when you are listening, not only to your own audience, but to those of your competitors as well.

So in looking more closely at what Mr. Morey is saying, I’d have to say he makes a great point.  Companies should be doing more to find and gather useful data for their analytical efforts.  When done with an eye to competitive differentiation, data becomes more than a commodity – it becomes an investment.  And, it’s up to analysts (like us) to determine:

1. The best data to gather,

2. The best way to structure and prepare the data,

3. The most appropriate analytical techniques, and

4. The ideal method for reporting and informing internal clients of the results

I know I’m biased, but I believe market researchers should play a central role in the strategic missions companies apply to their data.  If not leading the effort, then at least being part of the core team directing the vision and activities.  I’d love to hear from you. What’s your perspective?

Posted by Jeff McKenna. Jeff is a senior consultant at CMB and a lover of the mid-west, the Cleveland Indians, and gleaning key insights from data to drive innovation and change.

Upcoming Webinar: Appearance Counts: How to Tell a More Visually Compelling Story with Your Data

Join Jeff McKenna Wednesday August 24^th 12 PM ET as he talks about how to make your “sea of data” more visually compelling.

This presentation will highlight some of the tools that are already available at little or no cost and give a hands-on view of how they can be used to make sure you and others throughout your organization get the most out of the research. Register Here

Nope, I’m not a 1970’s mustachioed running legend, and I’m never going to break any records. But that doesn’t mean that, as a novice runner, I shouldn’t set goals and track my progress.  And while my progress (and my pace) is slower than the great Pre, tracking helps me stay focused on my goals. The same is true for brand tracking.

Many of the things I’ve learned from running can also apply to MR, here are a few, with some Pre-quotes sprinkled in for extra inspiration:

“What I want is to be number one."

Setting Goals: The key here is to be realistic and just like with running, you have to take experience into account.  What should I aim for in the near future based on where I am today, and in the longer term?  This also means accounting for your competition. While a little competition is healthy, monitor a range of contenders—companies who share similar levels of awareness, as well as older and more established companies (companies you aspire to be like), and keep an eye on the newcomers.

"Success isn't how far you got, but the distance you traveled from where you started."

Tracking Progress: What is most important to your organization?  What inspires and motivates? When I run, I’m focused on distance, while my running partner is obsessed with speed.  Although we both use the same tools (I love my Garmin Forerunner!), the metrics we pay attention to are different.  Likewise if customer satisfaction is your motivator, customer experience measurement must be central to your tracking, a “one-size-fits-all” benchmarking study will not address your needs.

"Don't be afraid to give up the good to go for the great."

Updating with the Times: Just as running gear has changed with the times (gone are the days you estimated distance by driving your running route with eyes fixed on the odometer) so should your brand tracker.  With cell phones, the Do Not Call List, email, and texting, fewer people answer (or even have) landlines.  If you’re running a tracker using random digit dialing (RDD), consider moving it online. If this move makes you nervous, ease into it by running concurrent waves, both online and via phone once or twice (the equivalent of using your car’s odometer and GPS watch).

In running, adversity comes via injury or inclement weather, and each has a different remedy. (Okay, I couldn’t find an adversity quote from Pre, but in running and MR, setbacks are something we all face).

Adverse Conditions:  What happens when you injure yourself?  Just like runners, brands can also suffer temporary setbacks, and it’s important to diagnose what happened, how to fix it, and how to prevent future mishaps.  This diagnosis can come with further analysis or additional research.

If you’ve suffered a setback, it’s important to establish whether your competitors suffered similarly and how you can better prepare for stormy weather in the future.  Indexing to the mean (dividing individual scores by the overall mean) is an easy way to show if you gained or lost ground (in a relative sense) given the market environment.  Keeping a module in your tracker to address timely topics will allow you to dig deeper into brand related “injuries” and market related “storms.”

“Over the years, I've given myself a thousand reasons to keep running, but it always comes back to where it started.  It comes down to self-satisfaction and a sense of achievement."

Reaching Your Goals:  What happens when your company reaches its goals?  How do you stay motivated when you’ve gotten to a finish line? Take a moment, catch your breath, and reflect on what went well and what needs to change for the better.  It’s also important to celebrate and communicate successes both internally and externally.

Then it’s time to set new goals…and of course, keep on tracking!

All quotes are from Steve Prefontaine

Athena Rodriguez is Team Director for CMB’s Financial Services Practice. She is an Asics loyalist who has run the Boston Marathon twice as a bandit, because she’s admittedly way too slow to qualify and because “running ain’t a crime.”