Showing posts with label Insights. Show all posts
Showing posts with label Insights. Show all posts

Friday, July 18, 2008

THE CONSUMER FREQUENCY

Most marketers are busy crunching numbers today, like they did yesterday, and the day before, and as they will tomorrow. What they are analysing are minute changes in business performance based on standards driving businesses that have not changed in decades. We all drink beer, wine, ale and spirits to address the need states of "to party" or "to relax." There are no other reasons. When our wives had babies we bought disposable diapers that had to "fit" the baby better and keep the baby "dryer." The entire industry remained flat until the revelation that a diaper brand such as Pampers could actually capture toddlers by extending its foot print to "development" sold an incremental $1.6 billion worth of Pampers that year while all the nay sayers suggested there was no way to generate an incremental disposable diaper consumption occasion - but those were not the forward-thinking outward-looking execs.

So to what frequency do consumers tune when dialing in your business? Are you broadcasting a frequency only they can hear? That sure would cut clutter! Why ask this question? Because we all operate with our own definitions of positioning, insight, branding, ad nauseum. And they can't all be correct. There is an overburden of clutter, commoditization and desensitization to ad messages in the marketplace. So how do you tune into that one frequency that reaches that one person (thought leader, early adapter, whatever) that you want to hear your message?

About 24 million consumers ago (that's about how many consumer panelists we've intereacted with face-to-face/not online in the last 40 years) we determined that the insight you want to target is called a Special User Effect. It is not a generic emotion of the sort generated by Hal Riney for Saturn. That division still operates in the red. A Special User Effect is consumer-created (not Madison Avenue or client created) and it is the result of a process that creates new consumer knowledge that has never previously existed to be mapped, gathered or measured. It is not the product of your own mind, my own mind or insight either.

This places the bar higher. That's where "development" came from for Pampers, which grew the business by $1.6 billion that year (now that's an insight). It's also the way the oral care business determined the five category attributes that account for all consumer perceptions in oral care. So I don't really care which agency you are or you hire. Every insight they have will in some way shape or form be somehow inextricably tied to one or more of these five attributes unless you create new breakthrough knowledge. We only brush our teeth for reasons of whitening, breath freshening (includes germ killing), gum care, tartar control and cavity prevention.

Why do I make such a hard line stance and draw my line in the sand here? Because my goal is higher. I don't just sell more product with garden variety insights. I control the definition of categories with the proprietary ability to create new knowledge from the minds of consumers. That's consumer-creativity and it is not the same as merely soliciting user generated input from websites where provided input comes only from consumer's existing frames of reference. Companies only do that because it's cheap. No matter how hard you study the past [that way] it can never give you everything you need for the present.

A brand IS fewer things to fewer people. That is what causes the early adapters to glom on. The novelty is what gives a brand an allure. Then they 9the numbers crunchers and insight hounds) try to make it more things to more people and you can kiss it goodbye. Everyone else is just a follower. A brand IS something that someone started that caught on. The rest of us are merely members of the herd. How do you resurrect a company like GM or a brand like Starbucks? It can only come from the creation of new knowledge. Closing 600 stores, recipe dissemination, a few novelty fro-yo drinks and a MyStarbucksIdea website will not improve Starbucks fortune. They are merely stabilizers and are only preparatory moves to Howard Schultz making another kind of decision, like cashing out.

The frequencies of insights are deafening. There are so many so inconsequential insights echoing against the fundamental building blocks of categories - any category - that we tune them out - noise - commodities we take for granted - which is why agencies and managers get hired and fired all the time. The insights that matter are those that fundamentally change perception in a category and substantively alter consumer habits and practices to a desired goal, solving problems. To that end, there can only be one insight - the rest are all peasants.

Monday, July 14, 2008

Why are good insights so hard to find?

You know, I just love LinkedIn - the professional online community. Not only is a great place to connect with colleagues, but it is also a great place where smart people ask incredibly interesting questions like, "What is an insight?" Which got me thinking - what is an insight and why are great insights so hard to find given that in my industry - consumer packaged goods - there are thousands of experts looking for them. Are they finding them? I don't know. Based on McKinsey & Company's assessment I think not. McKinsey says, "Despite solid balance sheets and healthy bottom lines CPG executives wonder where their new growth will come from." Since CPG companies are probably most active in the insight field, I then wonder why important insights are so rarely discovered. A while back the rumor circulated that men around the age of 34 shopping for diapers in grocery stores after 8 pm also purchased Budweiser - but that was no biggie. InBev just swallowed them up without even chewing.

Very often, managers view any product, service, idea, technology, or process that is new (to them) or different as an insight or innovation. (Well just because it's new to you doesn't mean it's new to the rest of us) (An old mentor tipped me off to this type of behavior chastising me for being too busy learning everything all over again for the first time) So I think quality insights are so hard to find because we don't know how to find them. Most companies have reliable resources in place to 'gather' and 'measure' data, but gathering and mining data is only a reflection of current consumer habits and practices and no matter how hard you look at the past it will not deliver what you need for the present. So what do you need instead? Why a knowledge creation process of course! Something that can create new consumer knowledge that has not yet existed to be gathered and measured. That's how you improve consumer behavior and take your highly saturated and penetrated category and take it another quantum leap forward - the same way Pampers learned to take disposable diaper's 'fit' and 'dryness' for granted and put the brand on the much larger 'development' footprint back in the early 1980s. Or the same way Folgers went from generic 'sensory' advertising (Mountain Grown/Richest Kind) to 'control's' best part of waking up is caffiene in my cup - recently sold to JM Smucker for $1.6 billion. That stuff sure does help me work and play well with others - especially in the AM! Now that was an insight!



Why else are good insights so hard to find? It's a matter of exposure. The rule of thumb is "The more you expose yourself too the more likely you are to succeed." But apparently you can't expose yourself to a whole lot by gathering and measuring data. And companies don't want to take on additional external resources. Sounds penny wise and pound foolish!



So if business managers are running businesses and making decisions based on gathered and measured data and have not exposed themselved to knowledge creation processes could that be the reason so much of American business is only managed to meet the numbers? Kraft can predict it's sales based on predicted birth rates over the next 5 to 10 years. Doesn't take many if any profound insights to pull that off. Is that the kind of business management that's going to bail Starbucks or General Motors out of a jam? Is this why technology is king in the new creativity economy? Well, lets forget about technology and product design. It's too easy to reverse engineer and copy.



So what is an insight?

An insight is the realization of value from a new solution to a problem that rewrites the rules of the game. In order for something to qualify as a true insight
  • It must engage a creative process,
  • It must be distinctive,
  • And it must yield a measurable impact.