Posts Tagged ‘Business’

So What?

A recent study conducted by Boston Consulting Group illustrated a disconnect between internal insight teams and their business line counterparts (i.e., their clients). The biggest gap between what the insight teams thought they were delivering and what the business lines received was the answer to a fairly simple question, “so what?”

A recent study conducted by Boston Consulting Group illustrated a disconnect between internal insight teams and their business line counterparts (i.e., their clients).  The biggest gap between what the insight teams thought they were delivering and what the business lines received was the answer to a fairly simple question, “so what?”

A full 73 percent of insight teams thought they consistently answered this question about the data they provide (p.15).  This is in contrast to the 34 percent of business line personnel who agreed with them … a gap of 39 points … the largest in BCG’s study. 

This gap poses an interesting challenge to insight teams.  To think beyond the finding.  To not only articulate the insight, but to communicate a point of view about it.  And to make sure the insight is actionable. 

The truth is, an insight is only as valuable as the impact it creates.  That may be a hard truth for some to accept.  One might say, “If I do my job finding insights, I can’t be held accountable for what happens next.”  Maybe not.  But it’s not likely you’ll be promoted either.  By thinking about the possible impact an insight could have, you are elevating your role from one of research vendor to business partner.  And as a partner, there is more opportunity to inspire your audience and help them solve problems.  If you can effectively communicate how the business can act on and benefit from the insights you are uncovering, the insights become inherently more relevant, meaningful and impactful … and so do you.

Maybe the question you should be answering isn’t “so what?” but “what if?”  To help people think of the possibilities and opportunities created by the insights you are uncovering?  This doesn’t require you to have all the answers, but it does require you to think in context of business problems and possible solutions.  To me, that’s a more powerful place to be … evolving from one who is answering questions to one who is helping solve problems.

So what if you focused more on solving problems than simply answering questions?  What if you started to answer not only the “so what?” but the “what if?”  What if you focused more on the impact of the insights than you did on the methodology of finding them?  Could you transform the insight function within your organization?  Could you transform your organization?

One Response to “So What?”

  1. Barry Silverstein says:

    Great points Bill. Sometimes this can come from not being close enough to a client’s business to be thinking about problem solving and the “what ifs”. It’s a shared responsibility for the client to bring the insight team into their business and the insight team to be thinking proactively about the business. When that happens, real magic can take place.

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Would You Want to Know Your Competitor’s Strategy?

A story surfaced today on TechCrunch.com claiming that a Facebook employee boasted the company “has obtained copies of proprietary Google documents outlining their social strategy.” Besides being way uncool to yammer on about at a cocktail party, it poses an interesting question: Would you even want to know your competitors’ plans?

A story surfaced today on TechCrunch.com claiming that a Facebook employee boasted the company “has obtained copies of proprietary Google documents outlining their social strategy.”  Besides being way uncool to yammer on about at a cocktail party, it poses an interesting question: Would you even want to know your competitors’ plans? 

Wouldn’t it limit your thinking – from offense to defense; from what you believe to what your competitors believe?  Chasing competitors who are behind you is a dangerous business.  Might you lose focus on your customers by thinking too much about your competition?

What do you think?  Would you want to know their plans?

2 Responses to “Would You Want to Know Your Competitor’s Strategy?”

  1. Brad Mampe says:

    I read this and immediately thought, “Runners on second still try to steal the catcher’s signals.” That’s not 100% analogous, but it’s a good start. And sports and games serve as a useful analogy in and of themselves: More often than not, the person who acts last often has an advantage, as they get to plan their own strategy based on the actions of their opponent. That’s ignoring any assumptions about the time involved, of course – in football, you wouldn’t elect to kick the ball if you won the coin flip in overtime.

    There is tremendous value in understanding what your opponent is doing. Unlike the sports and games analogy, though, in a business context, you’re not limited to a single opponent, and spending time to evaluate how to best proceed can be costly.

    Consider risk/reward propositions. The risk part is the cost associated with being wrong; the reward part is comprised of the gain associated with being right. The more I understand the hows and whys of what my competitor is doing, the better I can devise an approach that effectively counters it. While I can’t quantify it, I’m guessing these gains more than outweigh the losses of plodding ahead without knowledge of what my competitors do. I’m taking the insider info virtually all the time.

    Of course, all this is assuming that knowledge is absolutely legitimate. If there’s even a small chance of deception, then the choice is much more interesting – but that’s a topic for another blog post.

  2. Rich Weiss says:

    Bill, could not agree with you more. There is a mystique to not knowing that pushes you to wanting to stay ahead. While I’m sure it would be nice to have insight into their plans, I’d much rather have a wild imagination and plan for the worse.

    Also, the pragmatist in me wonders if I were to stumble across this information, is it real or a set up? I say know who you are, what your values are, and build your strategy with that in mind instead of chasing your tail.

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Another Reason To Hate The Yankees

Every April, hope springs eternal for all 30 teams across Major League Baseball. For some teams, that hope can peter out after a poor couple of months. The knock on Major League Baseball is that the same few teams make it to the playoffs every year, without the parity seen in other leagues. like football’s NFL.

But today, in July, MLB wants to give you a reason to believe in your team. More specifically, they want you to give them some cash to give you a reason to believe in your team.

Every April, hope springs eternal for all 30 teams across Major League Baseball. For some teams, that hope can peter out after a poor couple of months. The knock on Major League Baseball is that the same few teams make it to the playoffs every year, without the parity seen in other leagues. like football’s NFL.

But today, in July, MLB wants to give you a reason to believe in your team. More specifically, they want you to give them some cash to give you a reason to believe in your team.

That’s why they introduced Postseason Ticket Reservations, the newest and boldest ruse by MLB to get fans (along with their wallets) involved in the game. Pick your favorite team, and pay a fee ($10–$20 per reservation) to reserve the right to buy tickets for specific playoff games at face value. The fee is the same for every participating team — so yes, it costs the same to reserve a ticket for a Red Sox playoff game as an Orioles game. (I had to retype that last part a few times — I can’t type when I’m laughing.)

Anyway, every team participates, except the Yankees (shocking). The fee is not refundable, as you might expect. So if a Baltimore fan pays $41.00 for the chance to buy a couple of World Series tickets, and the team loses 112 games, the bookkeeper … err, uh, MLB pockets your money. It’s easy to complain about the League’s greediness here, but really, they are giving the average fan a chance at a unique experience and a monetary reason to stay involved through the dog days of July and August. Except for Yankees’ fans, whose team doesn’t seem to care about them.

So, do you like what MLB is doing here? Will you be betting on your team’s playoff future?

*Pat Griffin is the author of Pay No Attention to That Man Behind the Curtain where he explains how we have arrived at the confluence of media and technology, and how under this new paradigm neither will ever be the same.

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Tune In, Turn On

Someone recently forwarded me a list of important leadership characteristics, from the U.S. Air Force of all places, as part of their program to identify “emerging leaders.” The list resulted from a comprehensive review of knowledge on the subject of leadership, and results in eight concise characteristics:

Someone recently forwarded me a list of important leadership characteristics, from the U.S. Air Force of all places, as part of their program to identify “emerging leaders.”  The list resulted from a comprehensive review of knowledge on the subject of leadership, and results in eight concise characteristics:

1. Is willing to assume responsibility. 2. Motivates and encourages others. 3.  Demonstrates creativity. 4. Is innovative. 5. Searches for new ideas and different ways of doing things. 6. Seeks opportunities for self-development. 7. Actively listens to others. 8. Expresses ideas in a clear and concise manner.  

While characteristics such as “assuming responsibility” and “motivating others” are certainly familiar from the “leadership greatest hits list,” some, such as “demonstrating creativity,” “searching for new ideas,” and “actively listening to others” are a bit surprising coming from the Air Force.  When the military, the ultimate top-down, command-and-control organization (by design and out of necessity) cites both creativity and innovation as important, it’s probably safe to assume we civilians should also be able to observe these characteristics in our corporate leaders.  Those folks who are paid princely sums to help the companies we invest in successfully navigate through the thick and thin. Unfortunately, when I do a mental tally, I must admit that identifying corporate leaders demonstrating those traits is the exception, rather than the rule. (Come to think of it, certain leaders of large financial services firms leap to mind as potentially just a tad bit too innovative. But that’s for another blog post.) 

The notion of “actively listening to others” grabbed my attention.  Mostly because that’s probably my personal greatest weakness in the leadership department.  Being creative, innovative, and motivating well, I find that to be the easy part.  Or at least those characteristics come relatively easy to any marginally successful entrepreneur.  It’s putting one’s own ideas aside just long enough to really hear what someone else is saying that’s the challenge.  And I suspect I’m not the only one deficient in this area.

I found six principles that form the core of “active listening” on the management website, BNet: “Encourage people to express opinions; clarify perceptions of what is said; restate essential points and ideas; reflect the speaker’s feeling and opinions; summarize the content of the message to check validity; and acknowledge the opinion and contribution of the speaker.”  Hmm, useful tips for leaders.  Also, sounds like a highly relevant set of guiding principles for anyone leading a company’s product development process.  Specifically with respect to how consumers should be brought into the process, but also, of course, in relation to managing the process internally and between partners.

Let’s do a quick review of each of the six principles.  “Encourage people to express opinions.”  This is the obvious one, but unfortunately this is where most research starts and stops.  “Clarify perceptions of what is said.”  Okay, a focus group, when well done, provides this first round of vital feedback.  “Restate essential points and ideas.”  This typically happens, but usually only after the input has been over thought by the product development team and their partners, certainly not in real time with the same consumers who provided the initial input.  The rest of the guidelines?  Forget about it.

The more I think about it, the more I become convinced that various forms of active listening are at the heart of most new product development breakthroughs — whether as part of a well-run corporate process, or the seed that first sparked an idea in the mind of an inventor.  The notion of observation, followed by a series of dialog-driven iterations, is perhaps one of the most powerful tools at our disposal. Both for driving innovation, but also for making sense of the world. 

Few of us are smart enough to figure it all out on our own.  When we do listen to input, it tends to be selective and episodic at best.  Usually we’re able to discern one small piece of the puzzle through observation. This initial conjecture then gets refined through measured internal reflection or expediency into a half-baked idea, rarely with the luxury of the user, partner or employee iterations required to really get something right.  So let’s all give active listening a try: drop your guard; open your mind; stay focused; repeat back what you thought you heard; now do it again.  Eventually we’ll figure it out, but probably not on our own, and probably not the first time.  Come on, admit it, you don’t know it all.  And your first reaction, well, hate to break it to you, it’s probably the wrong one.

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Eco Surfboards: Will the industry land a 360?

A lot of surfers feel guilty about their most prized possessions being made from pollutants, but it hasn’t always been this way. Here’s a quick timeline of surfboard design (according to the Internet):

A lot of surfers feel guilty about their most prized possessions being made from pollutants, but it hasn’t always been this way. Here’s a quick timeline of surfboard design (according to the Internet):

  • 1,000s BC – Archaeological evidence suggests that ancient Peruvians stood up and rode waves in boats made of reeds long before JC walked on water.
  • 1778 AD – In Hawaii, Captain James Cook “discovers” people standing up and riding waves on solid wooden planks made from ula, wiliwili and koa trees. Click here to learn how they were made.
  • 1926 AD – California surf legend, Tom Blake, creates the first hollow surfboards made from redwood.
  • 1948 AD – Bob Simmons creates a “sandwich board” made of Styrofoam covered in fiberglass.
  • 2005 AD – Clark Foam, by far the largest supplier of petroleum-based surfboard blanks at the time, is forced to close its doors due to alleged EPA violations.

Word of Clark Foam’s demise spread rapidly throughout the surfing community. Some predicted the death of the hand-crafted surfboard; others felt it was a wake-up call and foresaw a green revolution in surfboard design. Five years later, neither of these scenarios has occurred. Hand-crafted – yet toxic – surfboards continue to dominate the industry. However, a few companies are going really retro and making boards from organic materials.

One company, Grain Surfboards, is based out of York Beach in Maine and only uses locally-harvested, sustainable-yield wood products. They sell finished boards as well as kits for the do-it-yourselfer and support a growing movement among the more conscious, like pro surfer/environmentalist David Rastovich. Click here to watch him prove that wood still works in the surf.

It seems unlikely that wooden boards will take over the surfboard industry, but if you have a lot of guilt and an open mind, they could be for you. I can’t personally attest to how they ride, but if the folks at Grain want to float me a loaner, feel free to leave a message below…

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My Bags and Me

Ladies and gentlemen, the Captain has turned on the Fasten Seat Belt Sign; please make sure your pocket books are in their upright and open positions.

Earlier this week Spirit Airlines put a price on placing bags in overhead bins; now, depending on whether travelers ‘pre-reserve’ their place in advance or enroll in the ‘Ultra-Low Fare Club,’ their ticket prices fly an extra $20 to $45 – not exactly peanuts.

Ladies and gentlemen, the Captain has turned on the Fasten Seat Belt Sign; please make sure your pocket books are in their upright and open positions.

Earlier this week Spirit Airlines put a price on placing bags in overhead bins; now, depending on whether travelers ‘pre-reserve’ their place in advance or enroll in the ‘Ultra-Low Fare Club,’ their ticket prices fly an extra $20 to $45 – not exactly peanuts. 

Each passenger can still store one personal item under a seat for free, such as a purse, briefcase, backpack or laptop computer. Airline officials suggest their overhead storage solution provides a “bring less; pay less” policy which ultimately benefits customers. Is it Hindenburg hot-air or a grounded rationale?

The procedure for boarding creates a carry-on craze every flight. Starting with the nerve-racking race to be first on the plane to place your luggage, right through takeoff as the last man standing plays a game of hide-and-seek, desperately searching for any space to stash their stuff. Post-plane landing, patrons are then treated to an extra five minutes as the wild goose chase to bring a bag back down, stalls the stampede off the plane.

Hypothetically, fewer bags on the plane put people on the ground faster; that is, if baggage handlers do their part. More importantly, if Spirit’s newfound spare change nets the average flyer a cheaper choice in flight, its sales might actually soar.

Rash reactions will run their course as an already injured industry and airline takes on additional turbulence, but once the program passes through its takeoff jitters, Spirit Airlines will be wise to check with the consumer control tower to see if they’re clear to continue their current flight path or require a reroute to a new destination.

We request that all electronic devices be turned off until we fly through till Monday. We will notify you when it is safe to use such devices.

4 Responses to “My Bags and Me”

  1. Brad Mampe says:

    I’d be more inclined to believe you if Spirit Airlines hadn’t flat-out ignored their customers in the past:

    http://current.newsweek.com/budgettravel/2007/08/should_spirit_airlines_apologi.html

    Spin it how you want, but a very, very bad apple is about to set a horrible precedent for the rest of the industry.

  2. Matt D. says:

    With all these new fees for storing luggage, nudist colonies must be psyched! They are on the threshold of being the vacation hot-spots of the future. Picture it…747’s full of naked travelers, soaring off to the only places where they can exist without essentials like clothing & toiletries. People can barely afford to fly as it is, and now they have to start deciding if packing anything at all is worth the extra dough?
    Screw the airlines and their spin on how it will save time or gas, or whatever. They need to realize that people who travel need to bring bags along. Now I agree with a charge for numerous bags that are stowed beneath the plane, and the one carry-on limit seems reasonable since over-head cabin room is a precious commodity. But to charge for putting your carry-on above your already expensive seat? Next, they will be charging us for pressurizing the cabin. Pay your $25 or you will pass out at 25,000 ft! This is truly as ridiculous as if Health Clubs started charging people who wear sneakers, or bars who charge extra to put your delicious dirty martini in a glass.

    PS: You go, Southwest! At least you still understand that, no matter how nice a gentle breeze across my bare bottom may feel, I still need to bring some clothes with me while traveling.

  3. Lil Pro says:

    In my humble opinion, the craziness to get on the flight and secure overhead space derives from flyers not wanting to check their baggage. In my frequent travels, I have seen people’s carry-ons getting increasingly bigger. People do not want to check for two reasons, 1. it adds significant time to checking in and getting out of the airport. 2. for MOST airlines, it costs more. If airlines would put their energy into making this process more efficient and less time consuming, maybe fewer passengers would bring carry-ons and this would not be an issue.

  4. Jani Fraga says:

    After the charges for checked baggage became to be more common, of course it was natural for most travelers to bring the biggest carry-on bag they could shove into that little display next to the ticket counter. So, if checked bags are being charged, where do all the clothes go? I can see it now: everyone on the plane carrying their laptop, briefcase, or purse, and wearing every piece of clothing they intend on bringing with them.

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A Kleenex and a Communispace?

I think it’s interesting when clients or members refer to their community as “a Communispace.” For example, when a client says, “Can you help so-and-so access our Communispace?” Or when a member says, “I belong to the XYZ Communispace.”

It is reminiscent of other companies whose names have achieved noun status —Kleenex, Zipper, Velcro—and some that have even been lucky enough to become verbs, ‘googling’ and ‘xeroxing.’ In a similar fashion, “a Communispace” has become shorthand for the unique sui generis experience that is a Communispace community.

I think it’s interesting when clients or members refer to their community as “a Communispace.” For example, when a client says, “Can you help so-and-so access our Communispace?” Or when a member says, “I belong to the XYZ Communispace.”

It is reminiscent of other companies whose names have achieved noun status —Kleenex, Zipper, Velcro—and some that have even been lucky enough to become verbs, ‘googling’ and ‘xeroxing.’ In a similar fashion, “a Communispace” has become shorthand for the unique sui generis experience that is a Communispace community.

What better way to describe this thing, after all? It’s not just a regular old social networking site. It’s not just a survey site. It’s a Communispace! A space…for communicating…with a brand or company.  Nothing else quite like it.

No wonder, then, that people have naturally begun to refer to our communities by the name of our company. There’s just no other word available that succinctly captures it all. When a product is so unique that no words can describe it, it can then begin its lofty ascent into Merriam Webster-dom.

In the meantime, I’m off to see what’s going on in my Communispace…

2 Responses to “A Kleenex and a Communispace?”

  1. Nicole Adriance says:

    Hey Jimmy! I love this post! I notice our members say it, too. In fact, lately when I have been facilitating I have secretly (not so secret anymore) snuck in the use of the term ‘Communispace,’ e.g. Log in to your Communispace! or It’s great to see you in the Communispace! Communispace as noun = success!

  2. Claire-Voe Ocampo says:

    Jimmy, I love it! It’s like reaching out for my “ChapStick!” :)

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Transformations in Next-Generation Research

One of the best parts of my job is that I get to spend significant time with Communispace clients. My goal is to meet with at least 50 clients in the course of a year, and when I see them, I often ask these questions: What have you learned since we last met? What is changing in your field? What did you used to think was true that no longer is?

The answers are always fascinating—and recently, we synthesized comments from 100 insights professionals about their “New Normal.” The result is a list of 8 New Rules for Listening to Customers. As follow-up, we’ve gotten reactions from another 200 people, and we are currently getting additional responses from attendees at the recent ARF Re:think Conference in NYC where I’ll be presenting these to a large audience for the first time.

One of the best parts of my job is that I get to spend significant time with Communispace clients. My goal is to meet with at least 50 clients in the course of a year, and when I see them, I often ask these questions: What have you learned since we last met? What is changing in your field? What did you used to think was true that no longer is?

The answers are always fascinating—and recently, we synthesized comments from 100 insights professionals about their “New Normal.” The result is a list of 8 New Rules for Listening to Customers. As follow-up, we’ve gotten reactions from another 200 people, and we are currently getting additional responses from attendees at the recent ARF Re:think Conference in NYC where I’ll be presenting these to a large audience for the first time.

#1: Manage Your Social Media Jitters. In these days of Web 2.0 and conversations, it’s a constant that some consumers will tell you that your data is just plain wrong. Sometimes they are right, as in the case of members complaining last year about changes in Facebook’s privacy policy (which Facebook subsequently changed back). However, sometimes their truth is not reality for others. Example: in last year’s Motrin Moms ad “disaster,” we found that the majority of online moms had never even heard about the problem, and most of them thought that the ad was just fine. We need to listen hard to consumers, for sure, but if your target consumers are not on Twitter, for instance, then you don’t necessarily need to change strategy because of an angry tweet or two. Market researchers told us that their internal customers were just plain jittery and that they needed to be ever more educated about social media in this new age of customer engagement.

#2: Game-Changing Insights Don’t Usually Come From Testing. Time and again, clients bemoan the enormous investment they make in research that proves what they already know. This doesn’t mean that testing is unnecessary, but it does mean that equal emphasis needs to be placed on more open-ended discovery—leading to unmet needs, competitive white spaces, and new texture that can transform organizations. The most recent example of this is the Leno/Conan debacle, in which the data seemed to work, but where NBC completely missed how a generation of late-night TV watchers like to see the news, laugh, and go to sleep—in that order.

#3: Go Beyond the Ad-Hoc-Ness of Research. The notion that every time clients have a question or project they need to recruit a new group of consumers is expensive, slow, and impractical. The result of ad-hoc projects is a constant focus on whom to ask and how to recruit them, with little room left to focus on finding insights. Although many thought that the true value of online research would be related to cost-savings, the bigger benefit is that the web enables you to have continuous conversations with customers. Thus, the focus group gets extended (in case consumers have other thoughts or change their minds), the survey can reveal the “what” and the “why,” people can change their answers, and you have a chance to understand more than a small slice of your customers’ lives. This is reinforced by our new research on post-recession consumers, conduced with our partners from Ogilvy, in which a series of ongoing conversations with consumers gave texture about their lives that we could never have gotten from one project. This new research is available here.

#4: Cutting Edge Technology + Poor Research Methodology = Lousy Research. Just because a technology is new doesn’t mean it will result in the kinds of breakthroughs clients are looking for. Clients told us they were becoming more skeptical about “the shiny new thing” in and of itself—especially when it didn’t help accomplish the goal. Bernie Malinoff of Element 54 has done fascinating research to support this issue, showing how new fangled Web 2.0 surveys are often more difficult and less valid. The days of saying, “Let me see your software demo” will be replaced by questions about the fundamentals: How do you get people to open up? How do you create trust online? How do you learn what people really think?

#5: Don’t Mistake Data for Insight. In 1995, a financial services client told me he estimated that he could fill 12 Manhattan skyscrapers with data that his organization didn’t use. That was before the Internet Age, and thus I’d imagine they could now fill several city blocks. It’s just not true that whoever has the most data wins. Executives are hungry for “something I don’t know,” “something that will change how I think about my business,” or the like. We need to synthesize and report our findings in a way that gets to the core issues. The 70-slide PowerPoint presentation just won’t get read because the author can’t net it out.

#6: Top Executives Would Rather Have Fast Than Perfect. When executives have a burning question, the response in 2010 can no longer be, “If you give me $35,000 and 6 weeks, I’ll come back with a binder full of statistically significant information that will knock your socks off.” Too little, too late. The response that works is, “I can’t give you a perfect answer, but how about if I give you an early read from 50 consumers tomorrow morning?” That kind of response is in synch with the urgent pace of business today—and it’s more likely to add value to the process.

#7: Don’t Underestimate the Power of n=1. This is my favorite client quote, told to us recently by our first client, Tom Brailsford of Hallmark. Tom has several degrees in statistics and math, and he knows that there is safety in numbers. Still Tom is struck by how the big breakthroughs often happen away from the spotlight. His quest these days is often for something different than a pie chart: the lone voice that just makes him say, “Hmmmm…” This is substantiated by scores of clients who have told us that one emotional verbatim can move mountains in the executive suite.

#8: The Future Engagement Will Trump Sample Size. In an age when everyone is a professional respondent, the new currency will be less related to how many people receive the survey or how many consumers are in the online community. Instead, the metrics will relate to engagement: How many people actually participate? How much time will they spend? Will they do more than fill out a quick poll? How honest will they be? How hard will they work to help us understand their lives, dreams, and frustrations? Will they be engaged even if we don’t pay them much? The answers to these are the holy grail of 21st century listening.

I’m interested in your reactions: what you like most, what you like least, and what you think is missing. Post them here, or email me at dhessan@communispace.com, and I will send everyone’s thoughts out in the next month.

9 Responses to “Transformations in Next-Generation Research”

  1. Ted Morris says:

    I’ve always been baffled as to why the kind of innovation in marketing research, as mentioned above, did not come from MR firms in the first place. The MR industry largely ignored anything to do with social media and online communities until late 2008 when the industry saw its growth hit a wall. No wonder, as Coke recently stated, 80% of MR budgets is spent looking backwards, a reflection of the legacy MR culture of selling ‘research by the pound’. By contrast, online community insight firms have been operating in the ‘here and now’ since their origins in the early 2000’s, using an ‘outside-in’ approach to applied marketing without undue emphasis on research ‘technique’.

  2. [...] Generation Research I recently found a wonderful blog post by Diane Hessan discussing the transformations in marketing and advertising research. She has spent the past few [...]

  3. [...] To read the rest of Diane Hessan’s rules for next-gen marketing, please visit her blog at Communispace. [...]

  4. I like point #7, “Don’t underestimate power of n=1″ but probably not in the same way that the client intended.

    In text analytics we can now conduct a census of what is being said in a discussion board etc. So we don’t have to rely on sampling. So while our sample in a given month might be n=5000 that 1 person who said something differently is no longer an “outlier” but may be saying something really important.

    We have to catch what n=1 says, they may be alerting us of a new opportunity or a serious problem which if not nipped in the bud can grow.

    So even in n=10,000 pay attention to each single person, n=1

  5. [...] To read the rest of Diane Hessan’s rules for next-gen marketing, please visit her blog at Communispace. [...]

  6. Diane Hessan says:

    Ted has a great point. Isn’t it interesting, though, how the major players in any industry find it difficult to be the innovators? I think that it’s hard to let go of the business model that works for you, the core competencies you have built, and so on. Look at newspapers. You know what they should do, but how to get there?

  7. Annabel Smyth says:

    #3 I really like your point highlighting the problem that so much of the energy (and money) going into ad-hoc projects is spent on recruitment, to the detriment of the actual point of the research. The fact is that panel recruitment for “traditional” research is an incredibly difficult process, and it’s gotten steadily harder and harder over the last 20 years. Having said that, I do believe there will always be a real requirement for ad hoc surveys, e.g. for pre and post awareness testing, where you need entirely different samples. The good news for ad-hoc, is that I am sure that intelligent, innovative use of web capabilities will help to introduce time and cost savings to the process.

    Meanwhile, even for traditional panels (e.g. TV Ratings or consumer CPG panels) there are usually fixed time-limits on how long a panel member can remain on it. This is because of the belief that by virtue of being on the panel for a long period of time, panellists’ views and/or behaviour may change. Have you studied the implications of this for panel members of online communities? I can understand the value of an ongoing dialogue, but I feel that these panellists would be especially sophisticated, and perhaps even more open to changes in their views/behaviour than traditional panellists.

    #5 Don’t Mistake Data for Insight. Let’s beware the danger of experiencing a “new normal” of senior executives believing that, with all of these great new technological advances, it is now easy to produce Insight. Technology can certainly help to speed up research; to reduce costs; to significantly expand on the depth of information provided by respondents; and to use sophisticated modelling techniques to pinpoint fluctuations or new trends. However, to nit-pick Insight of mountains of Data, we still need lots of the same, old-fashioned resource: intelligent, motivated and really well-trained individuals, who can take time to mull over what are the really key points of relevance to their clients’ market/brand/situation. And ultimately, the best Insights occur when the research practitioner has an excellent, ongoing dialogue with the client, and fully understands their business priorities and issues – it’s still a two-way street.

    #6 Haven’t Top Executives ALWAYS Wanted Fast Over Perfect? It just hasn’t been possible until now. There have always been two opposing forces at work in research: the client/boss wanting the answers NOW, and the research practitioner wanting to use the best methodology to generate those answers. For the incredible new research tools such as online communities to be harnessed effectively, we must:
    · Continue to establish high quality research briefs from the client (perhaps one of the most overlooked aspects of market research)
    · And continue to press for the application of high quality research techniques. Yes, we have amazing new tools, but they still require skilled handling (let’s not throw the baby out with the bath water).

  8. [...] Hessan has some provocative thoughts on the next generation of market research. As always, the solution depends on the problem, but I liked the points [...]

  9. Diane Hessan says:

    Annabel, to answer your questions:

    Re the effects of keeping consumers for long periods of time, here’s one report on it from our research team:http://www.communispace.com/research/abstract/?Type=All%20About%20Communities&Id=6

    Re your comments on item #5, I completely agree! Despite all of our text analytics tools, there is nothing that results in insight better than people who have the ability to synthesize, analyze or find those “nuggets”. You just can’t (yet) automate that.

    Re your comments on item #6, I think executives now understand that fast is often “an early read”, or a way to check on a “hypothesis”, and we need to loosen up and be OK with that rather than assuming that executives will be irresponsible with the data.

    Thanks for the perspective!

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The Risk of Not Making Mistakes

Risk is a tricky concept. Business typically wants to limit, manage, or mitigate it. Eliminating risk altogether probably would be seen as the ultimate success (thank you, Six Sigma). But in life, most great things don’t come without some level of risk.

Getting married, having kids, quitting a job, taking a new one. Think of any of the biggest developments in your life or the broader world around you and I’d bet none of those happen without a fair amount of risk.

Risk is a tricky concept. Business typically wants to limit, manage, or mitigate it. Eliminating risk altogether probably would be seen as the ultimate success (thank you, Six Sigma). But in life, most great things don’t come without some level of risk.

Getting married, having kids, quitting a job, taking a new one. Think of any of the biggest developments in your life or the broader world around you and I’d bet none of those happen without a fair amount of risk.

However, from an early age we are taught to avoid risk. We understand that with risk comes mistakes. And mistakes can be painful. But making mistakes is also how we learn.

We aren’t born knowing that the square peg doesn’t fit into the round hole. We need to try it for ourselves. We experiment. We learn not only what doesn’t fit, we also learn what does. And in that process of learning we begin to see relationships—those between shapes and spaces, challenges and solutions, effort and satisfaction. More is learned from the time spent trying than if we got it all right on the first attempt.

But in business, mistakes mean more cost, more time, and lost opportunities. With the drive towards higher levels of productivity, higher margins, and more efficiency we don’t have room for mistakes.

Without that room, the ability of business to learn and grow is limited. Sure, companies can capitalize on incremental opportunities but they will miss the bigger breakthroughs because they didn’t see as many relationships, have as many experiences, or try as hard. They won’t learn as much from their mistakes, because they won’t make as many of them.

Companies need to create room for mistakes. To explore and try out stuff with their customers. To learn. And to do so faster, to get to the right solution sooner. When companies can make mistakes (ideally outside of the public eye) they can learn invaluable lessons from doing so and bring their customers better solutions because of it.

Risk isn’t that tricky of a concept if you think about it differently—not as the negative value of an event, but as a process capable of yielding positive, even breakthrough results. Make a practice of making mistakes. Create a private space in which to do so. Build a “learning agenda” for your company. And embrace risk. Because what’s true in life is true in business—most great things don’t happen without a fair amount of risk.

2 Responses to “The Risk of Not Making Mistakes”

  1. Dan says:

    This really hit home for me, hopefully it’s not because I’m the type of person who makes a ton of terrible mistakes, but because I’ve learned some of my best lessons from some of my worst mistakes. My dad loves to joke about how I insisted on “learning lessons the hard way” until I was about 17 or 18 years old (which I continued to do after, only no longer under his supervision). This very topic actually came up in a conversation I was having this morning, and I learned of one company that does something unique that I think is such a great idea – awards for “mistake of the month.”

    Check it out – http://www.inc.com/magazine/20050201/strategies.html#
    (Link comes courtesy of Dylan Brown)
    Another example – http://www.businessclassinc.com/2009/08/31/mistake-of-the-week-keebler-cookies-crackers/

  2. Jan Bolick says:

    Love this! Mistakes can be great if managed well.

    And “mistake of the month” is one good way to give structure to that.
    Another is the graveyard approach used by Ben & Jerry’s. Read more at: http://www.businessclassinc.com/2009/09/01/rest-in-peace-a-lesson-from-ben-jerrys/

    You might also enjoy this about Celebrating Mistakes: http://www.businessclassinc.com/2009/08/05/celebrating-mistakes/

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Moving from Social Media to Social Business

Thanks to Diane and company for giving me an opportunity to share thoughts with you via Verbatim. I’ve been following Communispace since 2006, when I covered social computing as a research analyst; now I see the value of what the company is doing through a lens of social business design.

Over the past decade, we’ve been witnessing the rise of social media. While we are fundamentally social beings, technology advances and cultural preferences have driven proliferation of these behaviors online. The series of tubes that carry data are wider and reach further than ever. Moore’s law still holds true, as does Metcalf’s—to which 400 million Facebook users across a variety of platforms can attest. We have become conditioned to share opinions on anything and everything in our new digital forums, salons, and echo chambers.

Thanks to Diane and company for giving me an opportunity to share thoughts with you via Verbatim. I’ve been following Communispace since 2006, when I covered social computing as a research analyst; now I see the value of what the company is doing through a lens of social business design.

Over the past decade, we’ve been witnessing the rise of social media. While we are fundamentally social beings, technology advances and cultural preferences have driven proliferation of these behaviors online. The series of tubes that carry data are wider and reach further than ever. Moore’s law still holds true, as does Metcalf’s—to which 400 million Facebook users across a variety of platforms can attest. We have become conditioned to share opinions on anything and everything in our new digital forums, salons, and echo chambers.

At the same time, many of us seem to have realized that pursuing work/life balance ends up as corporate Samsara. Instead, we’ve intertwined work and life to the extent that we do what we love and love what we do. (Or perhaps have gotten much better at fooling ourselves about it.) Along the way, we started bringing our toys to work and realized that our personal technology was better than the company’s.

Good businesses follow the action and most brands finally realize that these trends can be harnessed for commercial benefit. But using social media for business is easier said than done—so far, many brands have been tacking on social real estate to campaigns the same way they’ve been doing with digital microsites and banner ads. To make social media work, businesses must participate in this space differently than consumers; in other words, they’ve got to take a social business approach.

I think Communispace provides a great example in helping companies participate in social business. Using a framework developed by Dachis Group, here’s how I see the company creating social business value:

  • The Ecosystem. Providing connections with prospects and customers to help extend organizational functions beyond those on the payroll, e.g. marketing research.
  • The Hivemind. Allowing brands to become more culturally calibrated with their customers. Understanding motivations paves the way for social calibration.
  • The Dynamic Signal. Bringing out insight from previously unheard voices. The silos in existing listening processes prevent weak signals from being heard.
  • The Metafilter. Moderating discussion and drawing out signals from noise. Listening requires a balance of automated filtering and manual curation.

It’s time to shift from social media and get down to social business. Finding the right partners to help you get there matters.

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