Voices: the CMB Blog

Communication has changed. With the growth of the “Social Market,” businesses can no longer rely solely on traditional mediums—television, print, and radio, to win consumers. Consumers are key players in a social revolution that’s changing the way they speak with each other and with businesses.So, what does this mean for Marketing and Customer Development? The way consumers choose products and services has taken a sharp turn, with more decisions driven by word-of-mouth and experiential benefits. From a Marketing perspective, businesses need to focus on pulling customers in by offering targeted, useful, and engaging content, rather than pushing out broad campaigns.

How can businesses take advantage of this two-way communication and connect with customers in a way that drives loyalty and advocacy? One of the best ways is through storytelling.

The 5 Keys to Storytelling

• Stories help us understand the world: Throughout history, stories have been the way people make sense of the world. People thrive on stories to help them put things in perspective and to help them navigate the overwhelming amount of data, facts, and realities that confront them. Stories are one of our oldest mechanisms for security, which is why they are so powerful. If a business can use a story to show how a product/service can be beneficial, people will form a stronger connection.

• It is human nature: When you tell someone about your child or vacation, you don’t tell them your child’s hair color or that the weather was 85.2 degrees. You communicate more emotionally by telling others something funny that your child did or that you went surfing for the first time. People do not operate in the realm of data, it is counter-intuitive to how we are hard-wired, which is why storytelling in business is so powerful. If you want to connect with a person and drive advocacy, your best bet is weaving factual benefits into an even more powerful story.

• Don’t overwhelm with data: At the end of the day, you are speaking to a person.  People don’t digest data the same way a computer can. Data can be beneficial, but most people are looking for a connection. Apple is a great example of a business that has driven a connection with their customers by weaving data with storytelling, which is one of the reasons they have such high brand loyalty.

• It is no longer a ‘Business’ connecting with a ‘Consumer’: It is people connecting with people. Businesses need to understand who they are speaking with and cater communications in relevant manner. People will not connect with a business that offers no emotional connection and that doesn’t meet a need.

• It’s a two-way street: Consumers have a larger say in marketing and branding because the way consumers communicate has shifted. People are listening to other people as opposed to large campaigns. The value of word-of-mouth has soared, and social media allows people to see what others are saying, in real-time. Two-way communication is very powerful. By taking the time to have conversations with consumers, businesses have been able to learn and thrive in the consumer-driven market. This is critical to success and to building both advocacy and loyalty.

Storytelling is a pivotal part of marketing, communications, and business. Without it, consumers find it difficult to connect and advocate for something. Storytelling can and should be used in any business because it can drive loyalty, advocacy, and trust.

I don’t know about you, but I wouldn’t trust a solely data driven business to care for my interests, I would and do trust the businesses who have worked to understand my needs and who have created an emotional connection through the power of stories.

Alyse is a super-star associate at CMB, and a captain of CMB’s Light the Night team to raise money to fight Leukemia.  She is a kid-at-heart, loves Disney’s approach to storytelling, and is a 43 time Disney World visitor.

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Just when you thought you had cracked the nut on the Hispanic Consumer, a new nut has just knocked you on your head. As everyone knows, America’s demographics are shifting, driven in large part by explosive growth in the Hispanic population.  According to the Pew Hispanic Center, the Hispanic population in the United States grew from 35 million in 2000 to 52 million in 2011; a whopping 48% growth rate.  By 2060 that number is expected to more than double to 129 million, which will make nearly one in three US residents Hispanic, according to the Census Bureau. If the population numbers alone don’t peak a marketer’s interest, surely the estimated $1.5 trillion (that’s trillion with a “t”) in buying power by 2015 will. That $1.5 trillion in buying power would make the US Hispanic market the 14^th largest economy in the world if it were its own country.  Yet, for years, this consumer segment has been held at arm’s length or worse, ignored by marketers altogether. Perhaps they are confident that their strength in the “general market” will carry them, or are foolish enough not to believe in the importance of the Hispanic consumer to their bottom line. Savvier brands, largely consumer packaged goods companies, know better and have invested a lot in understanding these consumers; others continue to wander aimlessly in a sea of misconceptions and inaccuracies. Many brands have long held beliefs that are simply no longer true; chief among those is a view of Hispanics as largely homogenous, unacculturated, Spanish speaking consumers.  Unfortunately for those folks, one sobering, yet immensely important, fact evades them: more and more, the Hispanic consumer is looking and sounding less like the Hispanic consumer of yesteryear’s marketers. Despite what the prevalence of immigration related headlines today might have you believe, the growth in the Hispanic population is not totally a recent occurrence.  Latinos have long had a presence in the United States even before the well documented immigration booms of the 80’s, 90’s and 2000’s which led to immense growth in the amount of second, third, fourth and fifth generation Latinos (ever heard of the saying, “the border crossed us, we didn’t cross the border?”). In fact, the past decade’s growth has less to do with immigration than you might expect. The same Pew Hispanic Center study which showed the impressive overall growth of the Hispanic population over the past decade, also notes a 57% growth rate in the native born population over the same period of time.  Today, 64% of all Hispanics in the United States were born here.  That’s right folks; the growth in the Hispanic population is driven by US-born Latinos, most of whom speak English as their primary language and end up straddling two very distinctive cultural lines.

What evades most marketers is that these consumers are unique: not quite the same behaviorally or attitudinally as their parents or grandparents, but not like their “general market” counterparts either.  They form an ever-growing faction of bicultural Latinos.  For a crash course in what it mean to be bicultural, check out this clip from the timeless classic, “Selena,” and let Edward James Olmos tell you in his own words (spoiler alert: we have to be more American than Americans and more Latino than Latinos.  It’s exhausting!).  One study by Horowitz Associates places the percentage of Hispanics who self-identify as a mix of both Latino and American at 39%, a close second to those who identify as fully Latino at 43% (those who say they are fully American lag far behind at 18%). As such, Latinos have largely exhibited a non-traditional acculturation trajectory where full acculturation is no longer the norm or to be expected.  In fact, evidence of retro-acculturation, where previously acculturated segments of Latinos work to regain traces of their Hispanic culture, is well documented (as was the case with Selena who was a Mexican-American woman who learned to speak Spanish later in life).  Clearly, the realities of Latino acculturation coupled with the projected growth of the population have significant implications that will one day redefine the “general market” as we know it, requiring long term shifts in brand strategies for many. 

But before putting the cart in front of the horse, brands must consider what they can do here and now. Tapping into the burgeoning potential of the US Hispanic market requires a concerted effort to understand the consumer beyond language and recognize differences in behaviors, attitudes and beliefs. The most impactful Hispanic strategies incorporate a comprehensive approach to connect with both unacculturated and bicultural consumers.  At times, the approach will include similar elements for both, while at others, it will be necessary to target a specific segment.  For instance, special media buys during award shows such “Premios Juventud” on Univision have the potential to reach both consumer segments who tune-in in droves to watch the show.  However, Univision does not always appeal to the bicultural segment. 45% of Latinos overall watch TV mostly in English; that number jumps to 69% by the second generation and 83% among the third generation and higher.  For these consumers, culturally relevant (and I can’t stress culturally relevant enough!) communication on English TV, or bicultural TV such as Mun2 or MTV Tr3s, is likely to be more effective.

Certainly, understanding the Hispanic consumer can be complex and perhaps daunting for some, but it is an unavoidable bridge to cross for most brands. For many, the key will be to do away with long held beliefs. A small step for sure, but it all begins con un granito de arena (with a grain of sand). 

Elvis is a Project Manager with CMB’s Financial Services, Insurance and Healthcare Practice and the company’s bicultural Chapin (Guatemalan-American) in residence.  He is also founder and president of Casa Guatemala, an educational non-profit organization serving the Latino youth of Waltham, MA.

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.

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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.

By Caitlin Dailey

A warning to all the college seniors thinking about a career in market research: becoming a market researcher is both a blessing and a curse. Since I began working at CMB, I can’t turn away from a questionnaire or a good read on survey statistics, and having a group of classmates and friends with the same background just adds fuel to the fire. Whenever we come across an interesting study, we just have to share it.

One study came into my inbox just 3 days ago. This particular study was about “what singles want.” I found this particularly interesting given that I’m a single “twenty-something” living in a city with a relatively large number of unmarried women. According to the “what singles want” study of over 5,000 unattached adults 21+, “54% would not date someone with substantial student loan debt.” In a world where a college degree is the norm and post-grad education is increasingly becoming a requirement, I find this statistic hard to swallow. When I first decided to attend Bentley University, I remember standing around in a friend’s kitchen senior year of high school. His mother asked the group of us what colleges we had decided on, and when I said Bentley, she responded (jokingly), “good luck finding a husband with all of those student loans you’re going to have.” This has become a running joke between us.  Now that there is a statistic to back it up, the joke has turned into a reality.

And the good news just keeps on coming: “49% would consider getting into a committed relationship with someone who lived at home with parents.” I guess if I still lived at home my student loans would be less of an issue. Call me crazy, but something about living at home and being in a relationship just doesn’t add up. And let’s not neglect to mention the affect that social media has on the dating scene. “38% [of respondents] would cancel a date because of something they found while doing internet research on their date”. So your relationship could be doomed before you even get the chance to meet someone in person. And yet, finding partners online is becoming more and more common. Is your head spinning? Mine is.

So being a market researcher is both a blessing and a curse. I too easily get roped into reading all of these articles that make me contemplate life, and question whether I am in the norm or if I even want to be in the norm, but I also get to learn about market trends and answer real business questions for great clients. My head might be spinning with numbers and statistics, but it certainly makes life interesting.

Caitlin is a senior associate researcher for the Retail/Travel/Entertainment practice. Outside of work she is a company dancer with DanceWorks Boston, and continues her search for ‘Mr. Right’ despite her substantial student loan debt.

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