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Quirk's Brooklyn Roundup

Posted by Julie Kurd

Wed, Mar 11, 2020

Conference attendance looked a little different at last week’s Quirk’s event. We’re used to shaking hands, hugging, standing close in crowded rooms, and yes, sometimes even sharing food and drinks. That was all before the rising awareness of COVID-19*. My favorite greeting was the ‘spock’ hello, which to my surprise, my tongue-in-cheek post on Twitter earned much attention. While we awkwardly navigated the new cultural morays of greetings, and depleted Dynata and WebMD’s hand sanitizer gifts (thank you), we did manage to listen to some great sessions.

Julie Kurd Quirks Brooklyn Spock Tweet

In the most recent GRIT Innovation survey, Bex Carson of Brandwatch said “your next standout researcher is a mathematician & storyteller, scientist & artist, code-breaker & journalist.”  We saw a lot of that type of broad thinking here at Quirk’s:

  • Marc Goulet (Russell Research) and Tanya Pinto (Microsoft) spoke about applying a ‘human lens’ to predict what’s next. They urged us to focus on what people value and reject a culture that values primary research over other forms of discovery. Ultimately, we can broaden and deepen our view as researchers by taking a journalistic approach to data collection and storytelling, increasing our ability to quickly combine and integrate data sets, and looking for adjacencies and patterns (quant, qual, ethno, social, telemetry). While the challenges for insights professionals are complex, Goulet and Pinto’s session provided a much-needed reminder to focus on multiple inputs in business thinking.
  • Carmel Dibner from Applied Marketing Sciences spoke about using Machine Learning as a precursor to primary research. Her convolutional neural networks yield ~2,000 sentences from several million so you can harvest and work from there. ML is faster (processing power), better (overcomes human bias), cheaper, complete (comments from thousands), easier (machine does the work) and relevant (insights at the moment of truth). She shared an example of how machine learning informed product development, and marketing of blenders (mainly because blenders had great sub-types around aesthetics, ergonomics, technology, cleanliness, performance, brand). The machine worked with 18,000 sentences, and from there, machine learning experts identified the sources, trained the algorithm, ran the machine, produced the output and conducted the analysis. In this case, the machine distilled a massive amount of information into 97 unique insights, translated directly into consumer needs. On average, Applied Marketing Science finds there’s between 30-100 needs that can be uncovered in these explorations, providing a fertile hunting ground informing primary research.

AMS_MachineLearning

  • In his Brand Disruption presentation, CMB’s own Mark Doherty spoke about how it’s impossible to build consumer-centric brands with brand-centric research. Using our latest BrandFxSM study, he described the four psychological benefits that brands must provide to drive consumers: Functional, Emotional, Identity, and Social. As consumers become increasingly empower, and industries more fragmented, it’s critical to focus on how brands help people enhance what matters to them, including their self-image and pride, as well as the aspects that connect us.

Mark BrandFx Slide

  • Finally, at Quirks, we pondered some of the holes in our own information vocabulary and knowledge. For those who really want to understand our increasingly complex information ecosystem, it’s time to listen to Kathryn Korostoff, founder of Research Rockstar. Kathryn broke down the myriad types of data sources, ways of categorizing data, and types of quantitative data. When highly-seasoned researchers are walking out of the room saying ”oh my gosh I use ‘first vs second party data’ imprecisely,’ it’s clear that there’s always room to learn.

ResearchRockstar_ComplexInfoEcosystem

Whether you’re laying low, or still traveling, the lifelong journey of learning never ends. Email us directly or click below to set up a virtual conversation.

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*Check out this Forbes article, featuring insights on consumer behavior from our own Erica Carranza, Ph.D., VP of Consumer Psychology.


Julie KurdJulie Kurd is the VP, Business Development at CMB.

For more insights, please follow us on LinkedIn, Facebook, and Twitter.

 

Topics: conference recap, BrandFx, collaborative intelligence, machine learning

Buyer (and Seller!) Beware: The Emotional Bias in User Reviews

Posted by Dr. Erica Carranza

Wed, Mar 04, 2020

In 2006, psychologist Daniel Gilbert published a book called Stumbling on Happiness. It posed a provocative question: “Think you know what makes you happy?”

Spoiler alert! You don’t.

SoH_book

The basic premise is that people are bad at predicting what will make them happy in the future. But they know when they’re happy now. In fact, scientists who study emotion generally agree that the best way to learn how someone is feeling at a given moment is not to scan their brain or read their face—it’s to ask.

So, according to Gilbert, the best way to predict whether something will make you happy in the future is to ask people who are experiencing it now: How does it them feel?

This speaks to the awesome utility of user reviews—some of which are also fun to read. (A special shout-out to the Amazon shoppers who’ve reviewed BiC’s Retractable Ball Pens “For Her”…)

Bic_review

But while user reviews can be quite helpful, most have a built-in bias: The people who write them tend to be experiencing emotions high in activation.

Emotional activation is one of two dimensions that underly all emotion; the other is valence.

  • Valence is the intensity of a positive or negative feeling
  • Activation is the amount of physical energy associated with it

They are often correlated, but they aren’t the same. Take, for example, feeling angry vs. feeling sad: Anger and sadness can feel equally and intensely bad in terms of valence. But anger is high in activation. It’s agitating and makes people want to act. By contrast, sadness is low in activation. It’s wearying and makes people want to withdraw.Core_emotion

Critical user reviews tend to come from customers feeling negative high activation emotions (e.g., anger, frustration or disgust) because they want to funnel that energy into something—like calling customer service, lodging a complaint, quitting the brand, or venting their feelings in other ways. Incidentally, that’s also the reason why stories about brands that spark moral outrage are particularly likely to go viral. (Don’t believe me? Just ask United Airlines.)

Negative low activation emotions (e.g., feeling disappointed or discouraged) can be damaging in their own ways—for example, when they lead customers to quietly lapse. But those customers are much less likely to raise a fuss or write a scathing review. 

The same goes for positive emotions: Inspiring high activation positive emotions (e.g., excitement, delight or pride) leads customers to do things like proactively recommend the brand or take time to write a glowing review. Positive low activation emotions can be good too—for example, in financial services, making customers feel comfortable and secure drives retention. Still, customers who feel comfortable and secure aren’t likely to shout it from the rooftops.

In short, user reviews only tend to capture extreme poles within the top two quadrants of emotional experience:  Customer_quad

But if we can’t rely on user reviews to give us the full picture, what can we do to predict how a brand will make us feel?

As luck would have it, at CMB, we just fielded a major study on the psychological benefits delivered by a range of brands. We had a nationally representative sample of over 20,000 people. And, to assess the emotional impact of using each brand, we applied our proprietary measures of valence and activation—so the results are perfect for (among other things!) identifying brands that make people feel great.

This brought to mind Stumbling on Happiness and got me wondering… What brands should I be considering? I can’t disclose all our results, but I can share a few things that I plan to do differently based on our findings:

  • First, I’m going to use PayPal more often. We found that, for most people, using PayPal inspires low activation positive emotions like security, peace and calm—and that’s exactly how I want to feel when I’m sharing my financial data. (Interestingly, Netflix also scores well on low activation positive emotions, bringing new meaning to the phrase “Netflix and chill”.)
  • I’m also going to surprise my kids with Mario Kart, which drives high activation positive emotions for players. But I’m sticking to my hard “no” on Fortnite. Fortnite makes players feel a whole host of negative emotions, and middle school is hard enough as it is…
  • It’s not just Fortnite! We identified many brands that trigger negative emotions—including specific financial institutions, tech brands, and media IPs like Game of Thrones. (The latter really resonated for me—the final season made me so mad I blogged about it.) There are even whole sub-industries that evoke negative emotions—like cable providers.
  • I can’t drop my cable provider. What I can do is spend more time managing my investments, which—under normal, non-epidemic circumstances—generates surprisingly strong positive emotions. In fact, we found that investing with companies like Fidelity and Vanguard feels as good as shopping Amazon or watching Star Wars, and better than checking Instagram—the top social media platform in terms of eliciting positive emotions. To quote my colleague Lori Vellucci, who discussed this in her blog Social Detox, Financial Retox: “If you want to feel really good in 2020, log off social media and invest with a financial services firm!”

Our research also has implications for brands regarding the critical importance of understanding the emotions expected and experienced by their target consumers in terms of both valence and activation.

  • To motivate the kinds of actions that support customer acquisition—like trying the brand or recommending it to friends—brands need strategies that inspire positive, high activation
  • To improve retention, they need strategies that cultivate the comforting sense of inertia that flows from positive, low activation Particularly in industries, like financial services and tech, where peace of mind is key to customer satisfaction.
  • To minimize fallout from negative, high activation emotions, brands need channels that enable customers’ frustrations to be expressed privately, addressed efficiently, and tracked in order to see whether the same issuers are irritating others.
  • To prevent attrition from customers feeling negative, low activation emotions, bands need strategies for flagging them—since they may not be making much noise—and fixing the issues they find disappointing or draining.
  • To attract new customers, brands must also manage prospects’ emotional expectations. Anticipating negative emotions—whether high or low activation—is a strong barrier to brand consideration.

Understanding brand performance in each emotional quadrant is one of the ways we help our clients inform strategies that are high in consumer EQ. And that’s the real reason we do this research—to help our clients.

Implications for how to live life more joyfully are just the cherry on top!


Erica CarranzaErica is CMB’s VP of Consumer Psychology. She holds a Ph.D. in psychology from Princeton University. Prior to CMB, she led insights research at American Express, where she was a recipient of the CMO Award for Achievement in Excellence.

Follow Chadwick Martin Bailey on Facebook, LinkedIn, and Twitter for the latest news and updates.

 

Topics: marketing strategy, brand health and positioning, BrandFx, consumer psychology

Build Customer Intuition and Empathy to Expand Your Brand

Posted by Kathy Ofsthun

Tue, Feb 18, 2020

Customize, personalize, localize, humanize – these are the elements of a customer-centric program that is designed to expand brand reach, and to cement relationships with existing users. A deep commitment to customer-centricity at every level of the organization is the key to customer engagement and brand expansion.

Your goal should be to go beyond mere understanding of your customer, and to instead build your company’s empathy for and intuition about your customer. When marketers and senior executives have built their intuition of their customers, product development, and messaging are more successful. We need only look at the Peloton disaster to be reminded that failed intuition for your customer can lead to public embarrassment, or shaming. Conversely, think of the Volkswagen Darth Vader commercial years ago (9!). Still relevant today. They totally get their family consumer.

Pelaton Commercial

Volkswagen Darth Vader Commercial

How do you build empathy, and ultimately intuition about your customers? In Qualitative research we apply new methods, and tell vivid stories:

  • Leverage technology that meets consumers where they are. For example, Gen Z are digital natives, so we advise methods that utilize apps and employ mobile-first for capturing their in-the-moment reactions
  • Agile techniques embed your customer in every stage of development, allowing for continuous refinement of your concept or prototype
  • By building compelling narratives, critical insights will resonate throughout your organization, and become everyone’s stories about your customer
  • Cement those stories by socializing them throughout your organization in vivid, creative ways such as live panels or immersion spaces

Without discarding traditional qualitative methods, we’re constantly seeking, and trying new tools. One incredibly effective example of this is the use of agile pop-up communities. We’ve worked with groups of consumers over 6, 8 and 12 weeks to react to, brainstorm and iterate on ideas, bringing them from good to great, and from brand-centric to customer-centric. Through this approach, we’ve seen tremendous success using pop-ups for loyalty ideation, understanding insurance decision making, choosing a senior community for your loved one, communicating with Gen Z about financial topics, and more.

If you’re wondering how to make this happen, join the club! This is an exciting time in qualitative research to challenge ourselves, experiment, and innovate. Try social media to recruit participants. Social media can engender strong connections quickly, and shorten the time needed for finding great participants. For UX/CX testing, consider eye tracking. We’re using this method to share and talk to consumers about their own behavior. Using another agile method, especially for concept development, we have evolved traditional focus groups into iterative focus groups. Rather than rinse and repeat across multiple groups and cities, we begin with initial concepts, and optimize them with target customers over an intensive 2 days.

We’re also extending these iterative and agile methods to socialization workshops that spread the word in lively, engaging ways, and activation sessions that bring diverse teams together in a creative space to collaborate on tangible ways of implementing action steps.

Brand relevance and expansion don’t come easily. The good news is that we’re living in a time with an abundance of creative ways to connect, to engage and build empathy and intuition, thereby achieving meaningful relationships with your target customers.

What are ways that you’ve been able to build empathy and customer intuition to expand your brand? Have you tried any of the methods above? Please continue the conversation by leaving a comment below!


Kathy OfsthunKathy Ofsthun leads CMB’s Qualitative + Innovation practices.

Favorite vacation: Cambodia / Favorite class: Philosophy / Free time: Triathlete and Volunteers for the homeless of Boston

Follow CMB on FacebookLinkedIn, and Twitter for the latest news and updates.

Topics: qualitative research, brand health and positioning, BrandFx

Social Detox, Financial Retox

Posted by Lori Vellucci

Wed, Feb 12, 2020

Sure, we all love the feels we get staying connected to family and friends, but if you want to feel really good in 2020, log off social media and invest with a financial services firm!

Hold the skepticism and allow me to give a little background. As part of our self-funded Consumer Pulse program, we asked over 20,000 people to evaluate 80 financial services, tech, and media brands on the four key psychological benefits that help people fulfill core motivations: Emotional, Identity, Social, and Functional. Each benefit plays an important role in driving brand consideration, trial, loyalty, and advocacy. Using our proprietary BrandFxSM solution, we can give our clients a complete picture of their brand’s performance versus competitors, the interrelationships between the benefits, and the best path to capturing their target audiences. 

So back to those financial services brands. Of course, we expected to see differences between brands within each industry. I was intrigued by an insight that emerged when comparing across industries. Many social media platforms performed far worse on maximizing positive and minimizing negative emotional benefits than financial services brands who, let’s face it, have traditionally been content to focus on functional benefits (e.g. low fees). But investors, competition, and the market are changing, and more, financial service brands are realizing the complex consumer psychology behind brand engagement. Take a look at the powerful consumer-centric messaging from Prudential. It’s important to note that benefits have varying levels of relative importance within different industries, but emotions indeed matter to financial brand customers. They matter a lot!

Importance of Emotional Benefits Financial Services Blog Feb 2020

The truth is, the financial services industry, and investment firms in particular, have done quite a bit in recent years to personalize offerings and humanize their brands through advertising and target-specific messaging, whether they are primarily DIY focused or advisor reliant.  At the same time, social media has been plagued by bad PR and concerns over the negative impact on users.

Blog Feb 2020 Emotional Benefits Financial Services Industry Comparison

In addition to feeling good, consumers want to enhance their self-image, pride, and self-esteem through the brands they choose. Financial services firms perform better in delivering benefits related to overall identity - personal identity, tribal appeal, relatability--where social media brands perform relatively poorly. Lastly, financial services brands significantly outperform social media on delivering important functional benefits: goals, expectations, time, and money.    

If you want to build your brand, keep your customers loyal, and achieve greatness within your industry, you can’t rely on potentially outdated measures like NPS (what is that score really telling you anyway?). Instead, measure the elements that truly drive the behaviors that matter.  And in 2020, stop watching cat videos and log onto your investment firm’s website.  Check your investments, try some tools, make a few trades and then bask in those positive emotions, feelings of belonging, and sense of accomplishment. It’s going to be a good year.


Lori VellucciLori Vellucci, VP, Financial Services Practice Leader.

Follow CMB on FacebookLinkedIn, and Twitter for the latest news and updates.

Topics: financial services research, emotional measurement, BrandFx

It’s Not Just About Baby Yoda

Posted by Dr. Erica Carranza

Tue, Jan 14, 2020

Emotion, Identity & the Benefits of Disney+

Welcome to 2020! If you’re like me, you did at least three things over the holiday—visited family, ate too much, and read about the “decade in review.” Most articles looking back at the 2010’s mentioned the massive evolution in how we consume entertainment and the onset of the streaming wars. Disney+ and Apple TV+ have launched; HBO Max and Peacock are on the way. Analysts predict there will be too many subscription services to survive. Which will be among the last ones standing?

Netflix famously focuses on the customer, not the competition. But, if they’re going to learn to live with a major competitor, I suggest they focus on Disney+. Primarily because of how well Disney’s bastion of brands delivers emotional and identity benefits, and how important those benefits are to driving engagement—even compared to the functional benefits (like convenience) that helped Netflix upend the industry.

What are these different kinds of benefits? I’m so glad you asked! Here’s a bit of background…

At CMB, we identified four psychological benefits that drive brand engagement:

  • EMOTIONAL BENEFITS (e.g., positive feelings; enhanced joy; reduced frustration)
  • IDENTITY BENEFITS (e.g., strong self-esteem; pride; a positive self-image)
  • SOCIAL BENEFITS (e.g., conversation; social connection; a sense of belonging)
  • FUNCTIONAL BENEFITS (e.g., ability to accomplish tasks or goals; saving time or money)

Each plays a role in BrandFx, our approach to helping clients attract and retain their target audiences.

As a psychologist, I love our framework because it captures what drives people in all things—not just in how they spend their time and money. Each type of benefit fulfills a core human motivation. People strive to maximize good feelings and minimize bad ones (emotional benefits), enhance their self-image and self-esteem (identity benefits), connect and build relationships (social benefits), and efficiently achieve their goals (functional benefits).

In a recent study with over 20,000 consumers, we found that these benefits are important for brands across diverse industries. But the relative importance of each benefit does differ by industry, sub-industry, and even by brand. In the media space:  

  • For umbrella brands (e.g., Disney, Universal, Warner Bros.), emotional and identity benefits dominate importance, followed by social. So, to drive engagement, these brands must inspire positive feelings, bolster positive self-perceptions, and facilitate social bonds.
  • For franchises and IPs (e.g., The Simpsons, Harry Potter, Stranger Things), the same three benefits are key. Emotional and social are most important, followed by identity.
  • For streaming brands (e.g., Netflix, Hulu, Amazon Prime), functional benefits are pretty important—so streaming brands should make things easy and affordable. But emotional and identity benefits still dominate.
StreamingWars_ImpDrivingBrandEng

And, while streaming brands score well on functional benefits, they lag Disney on emotion and identity. Among the many media brands we tested:

  • Disney brand Pixar wins on delivering emotional benefits to fans (by a large margin!)
  • …and Disney itself wins on identity.

Disney’s strength on identity benefits is linked to the strength of its brands, franchises and IPs—like Marvel, which also scores well with fans on identity. And, when people think of Disney, its IPs are top-of-mind. In analyzing over 10,000 responses to a free association question, we found that streaming brands call to mind generalities (e.g., “movies,” “shows,” “videos”), while the brands that line the top of the Disney+ homepage call to mind specifics—either specific characters, movies, shows or franchises (e.g., Mickey Mouse, Frozen, Iron Man, MCU, Yoda), or specific content elements (e.g., action, animation, space, superheroes, princesses).

StreamingWars_InitialReactions

This pattern holds even among streaming customers (e.g., Netflix or Hulu subscribers)—i.e., generalities are top-of-mind, not specifics. Arguably that’s good if the goal is to entertain the masses, but it limits the ability to enhance subscribers’ identities. For example, we found that pride in being a media brand’s fan is highly correlated with liking characters from its content.

I may be an outlier—and an ideal scenario—for a streaming brand like Netflix. When I think of Netflix, the first things that come to mind are Peaky Blinders, The Crown and Stranger Things. These are shows I’m proud to watch (identity benefit!), and all three are Netflix originals. Maybe I’m a sign of things to come. But there are yet more reasons to bet on staying power for Disney+, including:

  • Disney’s vast machinery devoted to helping fans experience emotional, identity and social benefits outside the platform. It handily beat other brands we tested on the many ways in which fans interact with its content (e.g., via consumer products, theatrical releases, theme parks and more).
  • Its strength with kids and families. Our study focused on adults, but it’s safe to assume Disney brands would perform well with kids. And today’s Descendants fans are tomorrow’s subscribers.

JediLikeMyFatherUnless-CroppedOn a related note, nostalgia is an emotional benefit that pulls double-duty for media IPs. Kids who are fans grow-up to be parents who bring their own kids into the fold. (This image captures my household dynamic pretty well...)

Then there are the strong social benefits that come with family co-viewing and bonding over shared interests.

Yes, Disney+ will have to succeed in delivering the functional benefits expected in the streaming space—like convenience and value for the money. So pricing Disney+ competitively was a smart move.

But, again, success in media isn’t about functional benefits. Not even for streaming brands. It’s about content that engages; that evokes strong feelings; that resonates, inspires and empowers; that sparks conversations and connects us with larger communities… In a way, the word “entertainment” trivializes the intense emotional, identity and social benefits we get from the content we love. (Why else would so many people be arguing online about Star Wars? They can’t all be Russian bots!)

I’m a sample of one, but my experience fits these findings. I got Disney+ the day it launched. They made the sign-up process easy. So far, so good with the functional benefits. But what really impressed me were the rows of recognizable, quality content I saw when I first logged in. I literally gasped. And I mean literally literally. Not literally in the way Millennials mean literally (i.e., not literally).

Compare that with my experience on other platforms. I tab through rows of shows and movies I’ve heard nothing about, rejecting lots of options before finding something of interest.

This suggests one more way in which Disney+ enters with an advantage: Its well-known franchises create a high ratio of familiar (vs. unfamiliar) content. This matters because…

  • People like the familiar! The comfort of the familiar feels good—it’s an emotional benefit in and of itself. The tendency to prefer things just because we know them even has a name in psychology: the “mere exposure effect.”
  • The glut of peak TV has created “too much choice” for viewers which, paradoxically, generates negative emotions. In this context, the reputable content on Disney+ makes it feel like a cultivated selection. Like Trader Joe’s vs. a grocery store.

To be clear, I’m not counting other subscription services out by any stretch. But they’ll want to carefully evaluate potential strategies for attracting and retaining customers in light of this shift in the competitive landscape (i.e., the giant mouse in the room). For example, by identifying:

  • Which of their original series inspire the strongest emotional and identity benefits for the broadest populations of viewers
  • Ways to market these series—both on and off their platforms—to harness the emotional perks of familiarity
  • Opportunities to help fans of these series express themselves and connect with each other (e.g., via licensed products), which boosts emotional, identity and social benefits

Meanwhile, Disney+ will need to keep delivering fresh content without saturating fans’ appetites. (Our analysis found that boredom is a death knell for media IPs.) But any brand that can showcase so much celebrated content is in a great position to survive—and even thrive—in the streaming wars.


Erica CarranzaErica is CMB’s VP of Consumer Psychology. She holds a Ph.D. in psychology from Princeton University. Prior to CMB, she led insights research at American Express, where she was a recipient of the CMO Award for Achievement in Excellence.

Follow Chadwick Martin Bailey on Facebook, LinkedIn, and Twitter for the latest news and updates.

Topics: digital media and entertainment research, BrandFx