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CMB Researcher in Residence: UPMC Health Plan's Jim Villella

Posted by Amy Modini

Tue, Apr 26, 2016

jim_upmc2.pngUniversity of Pittsburgh Medical Center Health Plan’s Director of Market Intelligence, Jim Villella, sat down with CMB’s Amy Modini to discuss the role of insights and market research at UPMC and the health insurance industry at large.

AM: Tell us a bit about your role as Director of Market Intelligence at University of Pittsburgh Medical Center (UPMC) Health Plan.

JV: I oversee all external and internal intelligence within the health insurance industry in our market. Our Insurance Services Division (ISD) includes a lot more than just health insurance. Within the ISD, there are health insurance products as well as a suite of workplace productivity solutions under the WorkPartners brand.  WorkPartners offers worker’s compensation insurance, employee assistance programs, wellness programs, and some business productivity solutions, such as FMLA and short-term disability. Primary research is obviously one of the services that my team offers to all of UPMC ISD. This research is often an assessment of where we are compared to our competitors as well as opinions and attitudes of our current members. We also manage our marketing relational database, which is built at the consumer and employer level, so that we can do targeted marketing campaigns. Overall, it’s a pretty broad list of responsibilities.

AM: It certainly is! As we know, it’s been a disruptive few years for the healthcare industry. Looking ahead, what challenges and opportunities do you see coming?

JV: One of the biggest challenges for many health insurance companies who don’t have a large direct-to-consumer business sector is the end of the extension of the allowance for small groups under 50 to keep the plans they had prior to the implementation of the ACA. When the allowance goes away in 2017, those groups are going to have to move to community-rated insurance plans. Many of those groups will have to evaluate their situation when rates change in 2018, so that’s a challenge that insurers will face: transitioning what happens with those groups. The insurance companies will have to meet that challenge and ensure that they continue to insure those same people, whether it’s through a group or through the individual process. 

There are a lot of constraints on insurance companies with the Affordable Care Act (ACA). There are limitations on profitability and also on mitigating risk, so it’s a little bit harder to make a profit. And, as you can see in some markets, some of the more profit-driven public entities have chosen to take themselves out of the individual market in many areas because they’re finding it hard to have a viable business model in the current environment. There’s a lot of uncertainty in the market about who’s going to be there to provide the insurance solutions that are part of the ACA. 

AM: Do you think being part of an integrated system puts UPMC in a different position than other carriers that are just health insurance companies?

JV: Yes, I do. Because we’re an integrated delivery system, we have a lot more dialogue between the provider and the payer, which gives us more opportunities to intervene and identify solutions that will help people get better and stay healthy. Different payment models also emerge out of this position, which allows us to move away from a situation in which someone is paying providers for a service and move toward compensating them based on the effectiveness of the care. That’s much easier to do in an integrated system where we have direct relationships with a big portion of our provider-base. 

AM: What role do you believe healthcare insights, in particular, could play with some of the challenges and changes in the industry you mentioned?

JV: At the end of the day, much of what we deliver in the insurance business is somewhat commoditized. You have to offer things, in addition to paying claims and providing access to doctors and hospitals that members want, so that they remain with you when they have the opportunity to evaluate options in open enrollment periods. Research helps us immensely in identifying those unmet needs or identifying how well we can meet their needs that go beyond the basics of health insurance. 

Carriers have to move toward having one-on-one relationships between themselves and the individuals that they cover. In the past, carriers have had more of a relationship with a group that covers hundreds or thousands of people at a time, so the model is narrowing to an individual-level, much like auto insurance. You don’t really have employer-sponsored auto insurance. Every one of those carriers is dealing with each individual person one at a time, and that’s what the future of health insurance appears to be moving rapidly toward. The employer model is still the foundation for most U.S. health care, but if the health insurance exchanges continue to be successful and maintain competition and lower premiums—depending on who’s elected—it could continue to become more of an accepted way for Americans to obtain health insurance. 

AM: Let’s shift gears a little bit. Let’s talk about the market share analysis work we’ve done with you over the past couple of years. Can you talk a little bit about this work, and why it’s so important now?

JV: The rapid change in market share, year over year, is something we need to assess as quickly as possible, and the secondary sources we rely on to give us our definitive market share take several months to report. So, when we want to know in January what the market share shift has been, waiting for our secondary sources until July is simply too long. We partner with CMB so we can get a very quick, but accurate, assessment of how much the share has changed. The change in market share used to move at a glacial pace, but now it changes several percentage points for some carriers in a single year. We need to know about those changes as quickly as possible. We also use that study to assess perceptions and opinions of brands as well as what’s important to decision-makers, which helps us do some strategic planning for marketing purposes. 

AM: You’ve already touched on this a little bit, but how does this work play into your larger insights strategy?

JV: It helps us position ourselves and try to identify which areas of the geography we’re in that we could potentially focus on more. We get a more robust view of that at the county level from our secondary source in July. If we were to find opportunities or weaknesses in that share data—such as gaining or losing to a particular carrier in a particular region—we could react to that. It also helps us understand where the national competitors have gained traction—which ones are winning out and where. We need to be able to respond and understand who our competitors are as quickly as possible. 

AM: As you think about the next challenges for your organization, tell us what you look for in an insights partner.

JV: Several things:

  • Experience with our industry is helpful if not essential. Health insurance is a very complicated industry. I think it’s very difficult to partner with a research vendor that has no familiarity with the business. Even the terminology is difficult, so it would be hard to have to explain things about the industry over and over again.
  • A partner that does independent preparation and doesn’t rely exclusively on us to provide everything because they’ve done their homework.
  • Good problem-solving skills. Marketing and market research is basically just problem solving, and that manifests itself in even trying to design a research study. We need a partner that’s constantly asking: what’s the best way to do this?
  • Creative sample design. We sometimes have difficulty reaching certain audiences because we’re limited by our geographic footprint in western PA. So, finding a partner that can suggest alternatives for reliable ways of getting the same level of information is a huge component of what we need in a partner.
  • Visual interpretation of data is another one. That’s an art and a science, and partners who know how to show you information in a visual way are extremely helpful because that’s usually how it gets delivered to senior management, which is much easier to access than large, detailed crosstabs. 

These are all things we have working with you, and of course, we’ve had many years working together, so you know us very well and that familiarity is very helpful.

Got a market research question that you're just dying to have answered? Ask our Chief Methodologist and VP of Advanced Analytics, and he might tackle your question in his next blog!

Ask Dr. Jay! 

Topics: healthcare research, health insurance research, Researchers in Residence

CMB Researcher in Residence: A Chat with Avis Budget Group's Eric Smuda

Posted by Judy Melanson

Thu, Apr 16, 2015

researchers in residence, avis budget group, eric smudaAvis Budget Group’s VP of Customer Insights and Experience, Eric Smuda, sat down with CMB’s Judy Melanson to talk about Customer Experience, suppliers, and his work as a corporate insights executive.

Eric, it’s always fun to listen and learn from you. I’d like to start by asking a broad question: why is managing the customer experience important for Avis?

Managing the experience is critical for us—and critical for the car rental industry as a whole—because it’s the only way we can differentiate ourselves. The products we offer are identical to the products our competitors offer. We don’t have a location advantage because our competitors are immediately next door. There aren’t no-show fees, so customers are free to choose any company. It’s solely customer experience that differentiates us from our competitors and that drives growth.

Tell me a little bit about your job.

My role is to identify customer pain points and to design improvements in our customer experience. My team gathers and shares customer experience measurement data and marries that data with our operational, reservation, and financial data to really understand what, why, when, and where something is happening. This helps ABG define improvement priorities and get executive sponsorship, funding, and resources for those priorities.

How does your team interact with your end-users—both corporate and on-site?  

We want to drive macro change at a corporate level and location-specific change at a local level. One of our newer initiatives is the customer experience governance council, which includes all of North America’s senior management as well as key customer touchpoint owners.

My analytics team shares their findings with the council on a monthly basis. That way, the council can prioritize the projects we want to invest in. We then align executive sponsors, resources, and funding with those initiatives. This monthly meeting also gives us the opportunity to report back on progress made on previous initiatives.  We’ll share those insights with the marketing organization and communicate any changes we make with the customer base.

As you reflect back on the years that you’ve been at Avis, what are some of the changes you’ve made that have had the greatest impact on the customer experience?

One change that stands out is in rental rate price consistency (RRPC). We learned that when customers made reservations on our website, the site wasn’t accurately taking the daily rate, combining it with any add-ons he/she might have (insurance, car seats, GPS, XM radio, etc.), and then correctly calculating the taxes. So customers weren’t getting an accurate final bill. Now they do with the RRPC project, and we’ve seen a significant decrease in our pricing and billing complaints.

Price and cost are such important considerations in the purchase decision because they can be dissatisfiers, so that’s great.

Absolutely. We now know from our text analytics program that billing complaints are the biggest driver of negative Net Promoter Scores. The RRPC project has been one way we’re reducing those pain points and the number of calls going into our call center, and it’s had a large impact for our customers.

Another thing I’d like to mention is the rollout of the Select & Go experience to our top 50 locations. Some customers want to have the option of selecting another car if they don’t like the one we assign to them. This program was born out of that customer feedback. Customers can now receive a notification on their phone about which spot their assigned car is in, come see the car, and either take the assigned car or go to the Select & Go exchange lot where they can exchange the car for free. We also have an upgrade lot where they can decide whether they’re willing to pay $20 or $25 more to upgrade to another car class. This has been a customer experience improvement, and it’s also actually driven $3 million to $4 million in incremental revenue for the company.

That’s fantastic!

It’s a win for customers and a win for ABG. Another thing we know is that speed of service is of the utmost importance. We get more comments about speed of service in our text analytics engine than we do about anything else, so we’ve been taking a look at the entire rental process. We looked at over 100,000 customer verbatims and broke them down based on where they sit in the rental process or in the customer experience. We identified 20 projects we can complete to impact the customer speed of service at different stages of the rental experience. About half of those projects are active now, and customers should definitely look for significant upgrades over the next year or two in our ability to serve them more quickly.

I love that you’re addressing the customer needs more globally. You’re not making a touchpoint-by-touchpoint improvement, but rather an improvement about the customer’s need for speed across his/her entire engagement and experience.

I think that's the biggest philosophical change we've made over the last couple years as it relates to our customer experience program. Rather than looking at it as location-specific and driving change at the individual level, we’re now evaluating customer experience much more comprehensively. We look at macro issues at a division level that impact customers everywhere, and we start to fund and drive change in those identified areas.

What’s going to be different in customer experience at Avis in the next two years?

We’re working on a flight disruption service, which is relevant given the winter we’ve had in the Northeast. This service proactively reaches out to customers whose flights have been canceled and asks them whether they’d like to keep the car another day, turn it into a one-way rental and just drive home, and more. We want customers to know we can get them home or wherever they need to be.

Great! Let’s move a little bit more into research, tell me: what insights get you most excited?

Our program is constantly evolving as we bring in new brands and continue to evaluate our business. CMB was with us at the beginning of this journey, and you guys know that our customer experience program started with roughly 150 to 200 of our top airports.

We’ve also expanded it globally through our partners EMEA and Asia Pacific. The bigger growth challenge for us from a learning standpoint is adding the relationship view of the customer to the evaluations of the transactions they have with us. That will let us know not only how we did in Phoenix yesterday, but also how we’re doing across all of the interactions customers have with our various brands. So all of this growth we’re making in our customer experience measurement program is absolutely something I’m excited about.

As far as things that excite me, it’s really when we can dive down and understand specific customer pain points that affect specific types of customers in specific types of situations. For example, we know customer satisfaction is lower for certain types of trips vs. others, so when we can start to dig and combine that knowledge with other information like pricing strategies, billing strategies, and other policies, you start to understand why. Then, we can begin to have conversations with business decision makers and explain to them what things are getting in the way of the customer experience so they can reconsider and change those practices and policies. My passion is always trying to make things easier and better for customers, so what’s most exciting for me is the possibility of accomplishing that through those conversations.

You’re the customer advocate. There might be pricing or revenue objectives, but you can speak for groups of customers, which needs to be done in order to build engagement with the brand.

That’s always the big challenge: trying to balance customer needs against revenue and profit goals.

What would you tell market research vendors about how they can best support the decisions you need to make?

What an age old question! I feel like the supplier side has always struggled with understanding our business at a level at which they can help us drive business decisions and not just simply provide information. We want suppliers to provide context, combine the findings and the context with our financial drivers, and use all of that to help us make a more informed business decision. That’s a true partnership. That’s where I’ve had the most challenges with suppliers in the past. It’s also why I value working with your CMB team.

Can you talk a little bit about your relationship and partnership with CMB?

You understand our business as well as our management’s priorities. We have a great, trusted relationship—your guidance, partnership, and advice have been wonderful. You’ve transcended from being a vendor to being a very key advisor and trusted partner.

Got a market research question that you're just dying to have answered? Ask our Chief Methodologist, and he might tackle your question in his next blog!

Ask Dr. Jay!

Topics: travel and hospitality research, Researchers in Residence, customer experience and loyalty

5 Questions with GSP's Kelli Robertson on Positioning Cisco's "Internet of Everything"

Posted by Tara Lasker

Wed, Dec 03, 2014

800px Cisco logo.svgGS&P.logo.with.name.1Goodby, Silverstein & Partners’ Kelli Robertson talked with CMB’s Research Director, Tara Lasker, about a recent messaging study they partnered on for Cisco. This study aimed to determine the best way to communicate Cisco’s role in the “Internet of Everything.” 

TARA: There’s been a lot of buzz lately about using data to support strategic thinking. Can you talk a little bit about how you strike that balance between the two in your role?

kelli robertson, GSP, Cisco, CMB

KELLI: Well, I don’t think data just supports thinking—I think it also generates it. There’s nothing more exciting than a table full of data and going through that data to find ideas and the story. I think that’s one of the things we did with this study. I think you always have to start with hypotheses and use the data gathered to prove or disprove them, which is what we did. You also have to be open to the data giving you new ideas. For us, data isn’t just about validating—it’s about learning.

It’s also important to realize that data helps bring consensus. Marketing is hard today because everything is so uncertain, and I think it’s easy for clients to dismiss things you learn from eight or even thirty qualitative interviews. It’s a lot harder to dismiss data. So if you can combine the data with the new ideas, you’re more likely to create consensus and generate buy-in from the people you’re working with.

TARA:  That’s definitely true, and we see that throughout many of our client engagements. Moving on to our study, can you talk about how GSP and CMB partnered to help solve some of the challenges that Cisco faced?

KELLI: The first thing that CMB did really well was to quickly grasp the topic. This includes how technology influences business, the somewhat complicated concept of the “Internet of Everything,” and all of the product and technology solutions that create the “Internet of Everything.” There wasn’t a lot of explaining that I had to do because CMB just jumped in. I think that’s a testament to all of your experience with clients in the technology industry. You also recognized that the “Internet of Everything” might be a complicated concept for respondents to grasp, so you helped us craft a few different ways to talk about it in the survey, which allowed us to better measure true awareness and understanding.

Here’s another example. This was a global study, and CMB had a lot of recommendations including using max diff scaling to prioritize messages and alleviate any global scale bias. These recommendations allowed us to overcome a challenge that I wouldn’t have even known about if it hadn’t been for you. You also recommended that we test a few diagnostics within the top scoring messages. That helped us gain a better understanding of why messages were compelling instead of just showing us which ones were at the top of the list. Those diagnostics helped us feel confident in the messages that stood out.

TARA: We did a lot of secondary research on our end and asked colleagues at CMB with the most tech experience about the “Internet of Everything.” We tried to think from a respondent’s perspective when answering the questions to make sure that we were getting the most useful data we could possibly get and to ensure the respondents were reacting the way we wanted without misunderstanding.

KELLI: I think that background research you’re referring to was what allowed you to help us so much. I live in the “Internet of Everything” world. I have for the past two years. You allowed us to go deep into the “Internet of Everything,” but kept in mind the fact that people won’t view it with the same amount of understanding that we do. That helped us ask questions in a more broad sense and allowed us to have good juxtapositions regarding innovation, business, and technology.

TARA: Exactly. We also looked at the different roles within an organization and how they saw it. For example, the C-suite and technical decision makers understood and liked the more detailed messaging while business managers liked the broader, softer messaging. Speaking of, can you talk about what impact this research has had on Cisco’s brand messaging strategy? What’s happened since we’ve presented the results?

KELLI: Well, as you know, Cisco keeps coming back to get more data, and the study is really being adopted. It helped us form the messaging strategy for Cisco moving forward. For example, it helped us craft the right language to explain how Cisco is making the “Internet of Everything” possible. There’s been this question in the marketplace: what does Cisco do to make the “Internet of Everything” happen? The study helped us answer that question and address the skepticism our audience has had in the most compelling way.

The study also helped us define a sweet spot within our target audience. Prior to this, we talked broadly about C-suite executives, business decision-makers, and technical decision-makers. We summarize our audience as C-suite executives, but the study uncovered a very clear mindset that matched Cisco’s aspirations. Now we’re able to use that data to talk about our audience psychographically. We’ve found an attitudinal sweet spot because of the confidence in the data. Without the study, we could guess that C-suite executives and business decision-makers felt a certain way, but the data is invaluable in changing the way we think about who we reach out to, how we influence them, and the attitude Cisco needs to have. That’s been really invaluable, and it influences a lot of our decisions in tone and placement media.

The study also helped validate some of the Cisco product solutions that we should prioritize in our messaging. In the past, Cisco was primarily a networking company. Now, Cisco is offering a suite of product solutions way beyond networking. This study helped us uncover which of those product solutions triggered the most thoughts of innovation in our audience’s mind, which helped us prioritize where we should focus our product efforts.

TARA: Let’s talk a little more about the buy-in. This is the second time we’ve worked together on a project like this, and we’ve always had a great partnership. You understand your client and the questions they need answered, and we work through the research design and analysis. Ultimately, the goal is to get buy-in and adoption. So, can you talk about the adoption throughout Cisco?

KELLI: We’ve presented this countless times at Cisco, and we’re still getting requests to present it. We also just presented all of the work to the global regions in Cisco to help inform their work. They use a lot of the work we do, but they also do a lot of work on their own, so I’m sharing it with them so that they can use it to help inform what they do. Certain people within the organization are even using the data in their day-to-day work, which is amazing.

One of the things I’ve been most excited about is that we’re working with the thought leadership team at Cisco, who help set the agenda and public relations initiatives around key themes and topics. They’ve spent a lot of time pouring through the results, and they ended up coming back with a huge list of questions that are going to drive their thinking for the next year. So it’s helping set thought leadership, which is great.

One of the biggest things we tested is Cisco’s mission statement—“Changing the way we work, live, play, learn.” That is a statement that has always been on paper, and it has always been referred to as Cisco’s mission statement. The data we got back showed how compelling this statement was to our audience. It came back as one of the top messages if not the top message. I think that’s been giving Cisco a lot of confidence that they need to do more with their mission statement and that it needs to become not just words on paper, but something that drives all action within Cisco. I think this study is going to breathe new life into this big, bold mission statement and give them the courage to use it more overtly to make bolder decisions. There’s a difference between having a mission statement and being on a mission, and I feel like this data gave them the confidence to be a company on a mission—on a mission to change the way we work, live, play, learn.

TARA: Over the years, you’ve been one of my favorite clients for several reasons—one of them being that you really approach the relationship like a true partnership. We really work together. We get to a place where you know the client, challenges, political environment, and research questions that need to be answered. CMB brings research expertise, which allows us to design the study in a way that is going to answer your questions, so you don’t have to worry about the technicalities. I feel like both times we’ve partnered, we’ve ended up in a good, clear place at the end because of the way we work together throughout the process.

KELLI: I agree, and I will say that who we chose wasn’t necessarily my decision. I worked with the head of our research group. When we were going through RFPs, it became clear that few research companies are so thorough. There’s just this reality that not a lot of other research companies are as strategic, bring the breadth of experience, dive in, and ask questions of other experts in the organization the way you do….and these were things we noticed from the first RFP. There’s just something special you have bottled over there.

TARA: Thanks, Kelli! Hopefully we’ll get the chance to work together again in the future.

Tara Lasker is a Research Director at CMB and Kelli is a Group Brand Strategy Director at GSP. They both enjoy good beer, good music, commiserating over the trials and tribulations of motherhood, and telling a great story with primary research data.  

Topics: technology research, strategy consulting, big data, B2B marketing, internet of things, B2B research, Researchers in Residence, brand health and positioning

6 Questions with Allstate's Bob Pankauskas

Posted by Anne Bailey Berman

Wed, Aug 13, 2014

allstate, innovation, Bob Pankauskas  Allstate Insurance’s Director of Consumer Insights, Bob Pankauskas, sat down with CMB President Anne Bailey Berman to talk innovation, mobile, and what clients need to expect from market researchers.

Anne: Innovation isn’t a word people typically associate with insurance, yet the industry’s changed drastically in the past 5 years. How has that impacted you as a Market Researcher?

Bob: Innovation is a big part of what my team is charged with supporting. We’ve been doing a lot more exploration in terms of coming up with new products and services. This also means we need to broaden our toolkit with more exploratory and discovery work. For example, we’re rediscovering the world of ethnography to try and provide products and services for the future. We’ve done several ethnography projects, and we’re using new tools. We even had one of the ethnographies we did turned into a video that was used by the board of directors to showcase some interesting pain points consumers have with their cars. We’re also doing more and more concept testing and developing and exploring ideas.

Anne: So when you’re talking about innovation, you’re talking about two types of innovation. You’re talking about innovation for products and services for Allstate, but you’re also talking about the innovation of information tools in your bucket. How do you determine if the tools you’re using for innovation are really helping you more than traditional tools?

Bob: The thing we’re always searching for is that insight—that visceral reaction that consumers have. Consumers are behaving in a certain way. Why are they behaving that way? Anything that helps us get to a good insight is really useful, and a lot of the nontraditional ways seem to be more useful than the traditional quantitative approach. You have to work a little harder to get insights out of a quantitative approach, so using qualitative helps a great deal. Our CMO will say, “Great, what’s the consumer insight? What is the pain point?”  We need to focus on the problem we’re solving for the customer. It’s very easy to ask, but often we find we’re solving a problem for Allstate and not really solving the problem for consumers.  We work hard to address that.

Anne: What research challenges are keeping you up at night?

Bob: A really pressing topic of the day is the migration to mobile. It’s only a matter of time before we migrate all of our research platforms to mobile devices. We want our respondents to be able to choose when, how, and where they answer our questions. At this point, we do optimize our surveys for mobile. We pay a lot of attention to question length, simplifying response options, and usability. Our goal is to make our surveys engaging and rigorous.

Of course, trackers are a bigger challenge—it’s painful to live through that period when you say, “. . . and then we changed everything and our numbers are different.” But there are incremental opportunities that mobile provides—being in the moment, getting a real-time view of sponsored events, and just the ability to capture insights when customers are in the midst of an experience. We’re also really excited to utilize consumer-generated images to get more color and context from mobile cameras and not just words and numbers.  The shift is inevitable and the opportunities are there. We just need to be mindful of what we lose and what we gain as we make trade-offs in terms of trending.

Anne: What about target markets?

Bob: We’re trying to go after Millennials like everybody else. Everybody is chasing them, and it’s hard to crack the code. Going after a target means going after them well—understanding their motivators and having a product or service that is tailored to them. I think we have found how they liked to be talked to. They want to be treated with respect. They do want to research things online, but they still want to talk to somebody and touch base with them. It’s more about the “how” and less about the “what.”

Anne: What consumer insights get you most excited? Which tools?

Bob: It isn’t necessarily the tool that gives you the best insights. It’s creating receptivity and listening carefully. One of the most powerful insights we had at Allstate was the need for tangibility. Insurance is an intangible product or service. When you’re getting it, you really don’t know what you’re getting.

The thing is that we’re trying to solve the same problem again and again. So the issue is, how can you—as a smart marketer, researcher, or innovator—change your perspective just a little bit and look at the same thing you’ve been looking at for a long time and say, “Oh! Wow! Look at that! That’s new!” Now maybe it wasn’t new, but you changed your perspective and suddenly saw it. Many of the new techniques allow that change in perspective, and that’s pretty powerful.

Anne: And finally, what would you tell market research vendors about how they can best support the decisions you need to make?

Bob: Partner with your clients. Experiment as often as you can because you’ve got to make changes. You don’t put all your bets on the stuff, but you do have to test and learn. And then the second thing is TLDR—too long, didn’t read. It’s a great feeling to know there’s a 100 page deck of tables to support whatever the project is and that you’ve got your money’s worth. But that’s not at all what we pass on to our internal clients. We live in an ADD world. We’re all time starved, so we need to get to that 1 page summary. Tell me the 2 things I need to know—what’s your recommendation and how this is actionable? The ability to do that is what I’m looking for in a partner.

Check out our new case study to see how we helped a top 25 global bank develop a new value proposition and evaluate perceptions of various service channels and transactions.

DOWNLOAD CASE STUDY HERE

Topics: insurance research, mobile, consumer insights, millennials, Researchers in Residence, growth and innovation

Shopper Segmentation Research: 5 Questions with Electronic Arts

Posted by Josh Mendelsohn

Mon, Jul 12, 2010

shopper insightsAs we get ready for this year's Shopper Insights in Action Conference, we are taking a look back at last year's co-presentation by Stephen Day of Electronic Arts and CMB's Brant Cruz on research to help with the launch of EA Active, EA's entree into the fitness gaming market.

Following last year's session Stephen was kind of enough to sit down for a quick interview on the topic.

CMB:  What were the big takeaways from your presentation?

This segmentation really helped us define and refine what we are doing on this specific product (EA Active) in the marketplace.  For this product in particular, we didn’t have a whole lot of data about who we should market to, who these people are, etc., so it really helped us not only really understand this marketplace and market to them in a way that makes sense.

consumer segmentation for ea sportsCMB:  One of the things you talked about was using in home ethnography on the front end and the quantitative ethnography on the back end, how did you merge those two information sources together?

The qualitative was really used more to guide the product development and refinement phase, along with some demographic information.  We used the data from that to help our product development efforts.  With the segmentation we incorporated some product development components but really looked down the line at the product development road map to match key segments with new innovative products once we’re out of the gate with this initial offering.

CMB:  Was there anything in particular you think made this segmentation particularly successful or useful?

The segmentation for us, at a holistic level, was exactly what we needed.  We didn’t know a lot about the fitness marketplace in general.  We had ideas and hypotheses but this helped us clarify the internal thinking about where we need to go and what we need to do.  And it really helped us map out the future of this product line.

CMB:  Now that you’ve launched EA Active, how will you use this information?

We’re definitely going to use it.  Going forward we’ll be looking at some of the specific segments you (CMB) recommended as high priority segments that we can develop products for, and market to effectively.   It is definitely going to help us clarify the road map for future product development and product market strategies.

CMB: As we wrap up here at the Shopper Insights in Action Conference, any big takeaways you can use?

The one big takeaway for me and for us as a company is that we really need to do a bit more research that enables us to get into the mind-set of the shopper.  We haven’t done a whole lot of work in that area.  Our work is primarily focused on product development and product marketing, but given the status of the economy and changing times I think it is more critical now to understand consumer behavior at the point of purchase so we can design the best products and services for them.

CMB:  Thanks Stephen!

Posted by Josh Mendelsohn. Josh is our VP of Marketing and loves live music, tv, great food, market research, New Orleans, marketing, his family, Boston and sports. You can follow him on Twitter @mendelj2.


Consumer Spending Report 2010
 

Topics: product development, Researchers in Residence, conference recap, market strategy and segmentation, retail research