Voices: the CMB Blog

You know you’ve been to a great conference when the ideas and insights are still percolating and expanding weeks later; the Insights Innovation Exchange Conference in Philadelphia definitely fit that bill.  In part one of my take on the conference I talked about the change we’re seeing in the market research industry.  In this post, I’ll discuss the implications and manifestations for the change.Technology is driving the change, but people will lead it 

Technological changes are a primary piece of the “revolution,” but does this mean we will do more with less? The short answer is no. Technology will not reduce our need for people.  In fact, the big changes introduced by technology and new tools & techniques will require most market research firms to aggressively hire more people, not fewer. The challenge, however, is defining and finding the new talent and skills that will apply to the market research of the future.  Data management skills will be critical, as will business systems knowledge. Most importantly, strong logic and an understanding of decision theory will be big differentiators for the professionals of tomorrow. 

A wider view of consumer behavior
Besides the change in how we conduct our work, technology is changing the way we view behavior.  IIeX focused an entire track on neuroscience and emotional measurement, with a variety of emotional measurement techniques like fMRI, EEG, eye tracking, and facial recognition becoming more mainstream (see Mediapost’s: The State Of Neuroscience In Market Research)

If some in our industry see these new technologies as just measurement techniques, they’re not seeing the forest for the trees.  In fact, the trends and changes in the industry reflect new consumer behavioral models that reflect multiple aspects of decision making processes. During the conference, I even noted the fact that we seem to have reached “critical mass” with regard to behavioral economics.

Gone are the days of the rational economic decision maker.  Instead, advances in neuroscience and behavioral economics reveal the strong emotional components of all decisions.  If you don’t have an understanding of the core value and applications of behavioral economics and the new research in neuroscience, you may as well go back to using MS Office ’98, collecting data on 80-column punch cards, and worrying about how to conduct interviews via that new-fangled Internet.  Cognitive models developed within the past couple decades have gained acceptance and are frequently being applied in market research. The growing regard for intrinsic measurement gives me hope that we will achieve a more cohesive framework for addressing the emotional and subconscious layers of behavior. 

New innovators, new partners, new collaborators
The conference’s final day wrapped up with two presentations around a common theme: collaboration.  Gayle Fuguitt, CEO/President at Advertising Research Foundation (and former Vice President Global Consumer Insights at General Mills), presented “A Call For A New Collaborative Model,” highlighting ARF’s efforts to bring clients and competitors together to address the promises and challenges of biometric and neurological research methods .

Gayle’s central argument is built on well-regarded themes—organizations need to find new ideas and innovations by fostering the diversity of thought and value a broad team can provide.  Her advice:  “work with people who don’t laugh at your jokes” and “seek partners who are frenemies,” highlighting the fact that true collaboration doesn’t occur among the like-minded.  In a similar vein, Kyle Nel, head of International Consumer Research for Lowe’s Home Improvement, presented “Data Philanthropy: Unlocking The Power Of Adjacency Across Sectors.”  For Kyle, the focus for the future will be on “uncommon partnerships” to help companies gain a competitive advantage.    

These new relationships will take market researchers out of their comfort-zone, working with partners who might not bring the same rigor and methodological requirements. The hard work arises from more than accepting compromises; instead, the greatest effort (and reward) comes from working with new partners to find an optimal solution aligning the strengths of each participant with the desired objective.  When working with technology partners, market researchers must be aware of tradeoffs when using the technology; no technology solves all problems. (BTW, technology partners, you’re not off the hook either. You must be aware that you can't solve all problems and will need to partner with market researchers to create optimal solutions for the business objectives). The effort of collaboration is a matter of compromise and acknowledging that “perfection is often the enemy of progress.” 

A great opportunity
In spite of all of the posturing about the end of market research as we know it—the irrelevance of the “long-form survey” and the un-engaging nature of many online interview formats, I came away from the conference with a positive outlook on the industry.  We‘re in a unique position, intimately involved in the largest trends that are shaping business and the economy: mobile, social and big data. The Information Economy is fully upon us, and market research has the opportunity to seize the value that new technologies are bringing to businesses and the economy.  It’s a matter of hard work, collaboration, and courage to accept new ideas and change that will allow us to take advantage of these opportunities.  

Jeff is VP of Market Science Solutions at CMB. This marks the first, and probably last, post accompanied by a picture of Vanilla Ice. Find Jeff tweeting @McKennaJeff.

CMB is proud to be named to the Honomichl list of the Top 50 U.S. Market Research Organizations. Check out our case studies to learn more about our business decision focused approach.

Welcome to Part One of my coverage of the Insights Innovation Exchange Conference (#IIEX) that recently wrapped up in Philadelphia. The event was three solid days of presentations and panel discussion on the changes and innovations that are shaping the future of market research and the business insights industry. The event targeted insights practitioners and anyone who wants to deliver evidence-based business insights to their clients. The event focused on the future of the industry, and the usual suspects were there: mobile, social, gamification, Big Data, neuro-measurement tools (like eye tracking and facial coding), and communities. The vendor space was filled with companies offering technological solutions, and the lion-share of presentations focused on at least one of these tech aspects. I was surprised, and pleased, to discover that this collection of innovation agents focused less on the tools and technology (partly because speakers were limited to just 20 minutes) and more on fundamental elements of change in our industry. In Part One, I’ll briefly summarize our current state. In Part Two, I’ll describe the manifestation of that change for future growth.

The Shift from Old to New Research: 

“We no longer live in a world where information is rare.  In contrast, we are overwhelmed with data, Big, Medium and Little. This represents the most fundamental challenge to the business model of market research since its inception.”

That’s Dr. Larry Friedman, Chief Research Officer at TNS, who packed a comprehensive synopsis of the market shift into his 20 minutes. The key points are nicely summarized here.

It’s true that because we are an industry that has established its value through collecting and managing data, market research faces a difficult future; its fundamental activity has become less valuable. For a hundred years, businesses and managers have turned to market researchers to design studies, collect data, and translate the data back to them. Some market researchers might find additional value in providing insights and recommendations, but it’s rare to be rewarded with full “consulting rates” for this work. 

Given that data can be collected at low cost, the management tasks of sample design are not as important today, and the science behind collecting the “right” data can be glossed over with more (and cheaper) data. Even the translation and application of research data to business decisions are becoming more common with easier-to-use software and training. Tableau, Good Data and (even) MS Excel are some of the analytical tools that now put data directly into the hands of business decision-makers. Heck, even kindergartners are learning the “basics” of market research.

But market researchers still have a head start. As the professionals who have experience with managing and translating data, we should be able to fill a vast need for curating the wide variety of data files and warehouses to support business analyses. Additionally, our knowledge of data types (e.g., categorical vs. scale, just to name one of the many ways we look at the multidimensionality of data) and structure is critical for laying the foundation for information users to access and translate data most efficiently and effectively.

We might not be able to design the right sampling methods, but who among us has not fixed a study where the sampling was done incorrectly? We might not be able to design the questions to get the best data for analysis, but who hasn't needed to come up with a method to fix data that had been coded incorrectly or had incorrect skip patterns applied? (Just to name a few of the complications that can occur). All of these new data streams bring many more opportunities to fix, translate, and apply the results to support the decisions our clients need to make.

The takeaway: there are major challenges but Market Research isn’t dying, and it’s not on life-support. It’s a reasonably secure business that has attracted other companies to its space because companies find great value in evidence-based decision making. Let’s be honest, Google wouldn’t be making a big investment in Google Consumer Surveys if it didn’t see an opportunity to make a lot of money.

But when Google enters your space, you better believe you need to put your helmet on, and get ready…

Jeff is VP, Market Science Solutions at CMB. He is just as comfortable explaining advanced analytical models as he is parsing the cultural significance of "Tommy Boy." Find him tweeting @McKennaJeff.

At any point in the innovation process, businesses can come across new information, trends or practical issues that challenge thinking about what the end result of an innovation should look like. Maybe a new technology can’t scale or the application doesn’t have a big enough market. Or perhaps competitive analysis reveals that a new service or business model isn’t as unique as once thought. There are examples that many of us could on draw from our own experiences. Challenges like these can be frustrating and force businesses to think differently—creatively—about how to move forward. They actually provide the constraints within which an innovation project must operate.

At the FEI conference in Boston, there was a lot of talk about the role of constraints in creativity. Pasquale Cetera, VP of Portfolio Management and Strategy at Merck, brought this into focus during his presentation on R&D decision-making. Pharma is clearly a very developed industry, and this is a key challenge in innovation. The low-hanging fruit has already been developed and is on the market, so to bring new products to market requires more time and investment than ever before. This, along with the fact that regulations are ever-more stringent, means that the average length of drug development is rising, and pharma companies find themselves under pressure to focus and improve success rates at each stage of the development process.

It’s a big challenge with a significant bottom line attached to it. The necessity to maintain the business in spite of this has given rise to innovations that simply were not needed to make a profit until recently. Some of the innovations that Pasquale highlighted include:

• New lead optimization approaches in the Discovery stage, so that suboptimal leads are let go early-on

• Use of biomarkers to improve the probability of success in Phase 2 (Efficacy & Proof of Concept)

• Business model innovation: from fully integrated pharma companies (FIPCOS) to fully integrated pharma networks (FIPNETS)

• Collaboration with health payers to solve problems vs. traditional antagonistic relationships

Innovating within these kinds of big-picture constraints isn’t just a big-industry phenomenon. There are impressive innovations coming out of emerging markets, be it in the form of new agricultural models that support small farmers, mobile computing in Africa, or new type of distribution system for a CPG in India—as a few examples.

So, the next time you come across a challenge that alters the reality of your business, I encourage you to approach it not as a threat, but as an opportunity to differentiate and push innovation farther than it would have gone otherwise.

Jennifer is a Director at  South Street Strategy Group. She recently received the 2013 “Member of the Year” award by the Association for Strategic Planning (ASP), the preeminent professional association for those engaged in strategic thinking, planning and action.

South Street Strategy Group, an independent sister company of Chadwick Martin Bailey, integrates the best of strategy consulting and marketing science to develop better growth and value delivery strategies. 

See how CMB and the South Street Strategy Group helped SunTrust use a customer-centric approach to inform brand strategy, improve marketing tactics, and drive organizational  transformation. Read the case study.

Last week I attended the FutureM conference here in Boston. There were a lot of sessions to choose from and some great speakers, but one presentation was so simple it caught my eye. The session was called Future: Simplicity with Chris Colbert (@cmcolbert) from @hollandmark. The session was an hour and a half, which seemed long, but it flew by and I was even disappointed when it was over.  Chris is a definitely an engaging speaker, but it was the content of his presentation that gave me a lot to think about, both personally and professionally.  His session reminded me even with all the technology available, sometimes “it” just gets complicated; “it” being everything from crafting your value proposition to explaining a TV ad about Massachusetts' Question 2 to your 7 and 9 year old.  Sometimes life is just complicated.  When it comes to the future of marketing, I believe having an eye for simplicity and the discipline to focus are key success factors.Throughout the presentation, Chris saw the simple in the complex, understood the need for focus, valued the currency of time, talked about the human need for comfort, and the fact that comfort is often found in simplicity. I thought a lot about where simplicity breaks down in my world as a marketer, and for me it is often when there is a loss of focus.  I would say I am a pretty goal oriented person and staying focused on those goals and how to achieve them gives me the discipline I need to stay on target. That being said one of the biggest things that can challenge my focus is the sheer volume and variety of data I have coming at me real time. Social, CRM, financial data, customer experience…I have a headache just thinking about the sheer volume of it all.

How do you connect all the dots? How do you uncover the story? How do you focus on the data that matters? It all comes back once again to simplicity and focus.  Focus on the business problem you are trying to solve, the key questions you need to answer and the ability to go from data to insights and deliver those insights in a way that makes them relevant to those who need to make the decisions. That’s a lot of what we do here at CMB.

This brings me to the next quote I jotted down that really hit home; “less is more, but less is harder.” It takes discipline to focus on the one or two things your product or service does really well because the temptation to try to be all things to all people is so great.  It also takes that same kind of discipline to focus on the key data sources and points you need to make a decision, and the confidence tune out the rest.

Simplicity requires focus, and focus often drives results.  This point rang true again in a recent study from the Marketing Leadership Council. They reported the best performing marketers are the “Focusers,” those who prefer depth of focus over breadth. Unfortunately, the same study also found that most CMOs’ are looking for someone very different from the Focuser. They are looking for the “Agile” marketer, those who are early adopters of technology who embrace change and are fast movers. Ironically, the Agile marketer often suffers from lack of focus and fell to the bottom of the list when rated by their manager on performance.

We all desperately need simplicity and focus, but how do you find it within this complex (and growing more complex every day!) world?  The answer is not to rely solely on the “agile” person who embraces every change and is quick to bounce from technology to technology.  Instead, the answer is cultivating a culture where people can be focused, and not become distracted in an ocean of data and by shiny new objects.

Kristen is CMB’s VP of marketing, an adjunct professor at Boston College Carroll School of Management and a mom of two. You can follow her on Twitter at @KristenGarvey

This November we'll be in sunny Boca Raton, for The Market Research Event, presenting with our friends at The Atlantic City Alliance and SunTrust Bank.  We'll share findings, challenges, and insights from two very different segmentation studies:

Track: Insight Driven Innovation Track
Time and Date: Tuesday November 13th @ 2:00 pm
Presenters: Judy Melanson, Vice President, Travel and Hospitality Practice, CMB and Rich Mirman, Consultant to the Atlantic City Alliance, Former CMO for Caesars Entertainment, The Mirman Group, LLC

While Atlantic City attracts over 30 million visitors a year, the popular tourist destination faces a number of challenges—including a recession and increased competition. Join us to hear how CMB and The Atlantic City Alliance took a foundational approach to segmentation—identifying and assessing Atlantic City's greatest growth opportunities to decide who to attract, and what to build.

SunTrust: Segmentation as a Change Agent

Track: Insights Leadership & Transformation Track
Time and Date: Wednesday November 14th @ 11:15 am
Presenters: Rich Schreuer, Senior Consultant, CMB; Mark Carr, Co-founder and Managing Partner, The South Street Strategy Group; Jeff VanDeVelde, SVP, Director of Client Experience and Loyalty, SunTrust Bank

Learn how CMB and The South Street Strategy Group partnered with SunTrust to develop and prioritize consumer segments based on goals and needs. This segmentation was central to  forming the foundation for SunTrust’s brand strategy, and helping the bank make the critical shift from a product-focused to a customer-centric organization.

We're excited to see you, click here to register, and enter CMB2012 to receive 25% off.

Check out one of our favorite moments from last year: TMRE Highlight: The Art of Choosing