The Zombie Effect - Using Actionable Insight to Combat Brain-Dead Views of the Customer

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Do you have zombies lurking in your customer segmentation model? Find out what they are, what dangers they pose and what you can do about them. Presented at the Corporate Executive Board (CEB) 2014 Sales & Marketing Summit, Glen Drummond explores this Zombie Effect, the state of customer segmentation (with new research from Quarry), and how John Deere redefined their approach to customer insight.

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FIGHTING THE ZOMBIE EFFECTUSING ACTIONABLE INSIGHT TO COMBAT BRAIN-DEAD VIEWS OF THE CUSTOMERGLEN DRUMMOND, CHIEF INNOVATION OFFICER

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HOW SATISFIED ARE YOU WITH YOUR SEGMENTATIO

POLLQUESTION #1

@QUARRY @GDRUMMOND #CEBSUMMIT

CUSTOMER

EXPERIENCE

OUR STARTING POINT

@QUARRY @GDRUMMOND #CEBSUMMIT

CUSTOMER

EXPERIENCE

TARGETING STRATEGY

OUR STARTING POINT

@QUARRY @GDRUMMOND #CEBSUMMIT

CUSTOMER

EXPERIENCE

TARGETING STRATEGY

SEGMENTATION MODEL

OUR STARTING POINT

@QUARRY @GDRUMMOND #CEBSUMMIT

YOUR CUSTOMER EXPERIENCE INITIATIVES MIGHT BE IN DANGER

WHAT YOU’LL LEARN• What is a zombie segment?

• What danger does it pose?

• Is the problem widespread?

• What can you do about it?

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WHAT DO THESE BRANDS HAVE IN COMMON?

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DISRUPTION

THINK ABOUT

THE CUSTOMEREXPERIENCE

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THINK ABOUT

THE CUSTOMER

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THINK ABOUT

THE CUSTOMERFLEXIBLY

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WHAT COULD POSSIBLY GO WRONG?

THOUGHT EXPERIMENT

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PICTURE A

VIKING

WOULD YOU TRUST THE CARE OF THESE KITTENS TO YOUR VIKING?

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HOW’S MY DRIVING?

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“THE

PROTOTYPE

EFFECT”

SOME EXAMPLES ARE MORE EXEMPLARY

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“THE PROTOTYPE EFFECT” AFFECTS OUR SENSE OF PROBABILITY @QUARRY @GDRUMMOND #CEBSUMMIT

THE ZOMBIE EFFECT

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“REALITY HAS CHANGED, BUT THE THEORY OF THE BUSINESS HAS NOT CHANGED WITH IT.”

PETER DRUCKER

ZOMBIE SEGMENTS• Cognitive prototypes

for “Customers”

• Strategically brain dead

• Still shuffling around

• Want your brain

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EPIDEMIC?

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THE STATE OF SEGMENTATION

$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies

SAMPLE:

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THE STATE OF SEGMENTATION

$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies

SAMPLE:

1 IN 5

don’t have a

segmentation model

(18%)

@QUARRY @GDRUMMOND #CEBSUMMIT

say their segmentation model

is not noticeably different from

their competitors’

3 IN 4(70%)

Of those that have one, nearly

THE STATE OF SEGMENTATION

$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies

SAMPLE:

1 IN 5

don’t have a

segmentation model

(18%)

@QUARRY @GDRUMMOND #CEBSUMMIT

say their segmentation model

is not noticeably different from

their competitors’

3 IN 4(70%)

Of those that have one, nearly

THE STATE OF SEGMENTATION

$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies

SAMPLE:

1 IN 5

don’t have a

segmentation model

(18%)let statistical modeling

determine their

segmentation model

Almost

1 IN 7(15%)

@QUARRY @GDRUMMOND #CEBSUMMIT

say their segmentation model

is not noticeably different from

their competitors’

3 IN 4(70%)

Of those that have one, nearly

THE STATE OF SEGMENTATION

$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies

SAMPLE:

1 IN 5

don’t have a

segmentation model

(18%)let statistical modeling

determine their

segmentation model

Almost

1 IN 7(15%)

use a single, common

segmentation

model across their

organization

1 IN 10(10%)

Just

@QUARRY @GDRUMMOND #CEBSUMMIT

POLL QUESTION #2

WHAT PERCENTAGE OF RESPONDENTS DO YOU THINK WERE SATISFIED WITH THEIR SEGMENTATION

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POLL QUESTION #2

OF RESPONDENTS WERE SATISFIED WITH THEIR SEGMENTATION MODEL.

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60

%

YIKES! WE’VE GOT ZOMBIES

AVOIDING THE APOCALYPSE

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HOW JOHN DEERE FOUGHT THE ZOMBIE EFFECT (AND YOU CAN TOO)

MYS

TERY

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

@QUARRY @GDRUMMOND #CEBSUMMIT

DEFINE THE PROBLEM FOR RESEARCH

MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

@GDRUMMOND #CEBSUMMIT

GO ONSITE TO GET INSIGHT

@GDRUMMOND #CEBSUMMIT MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

Motivation 1 Motivation 2

PAY ATTENTION TO UNARTICULATED CUSTOMER NEEDS

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Motivations in conflict

MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

INTEGRATE QUALITATIVE AND QUANTITATIVE RESEARCHWITHOUT WITH

@GDRUMMOND #CEBSUMMIT MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

BUILD A SINGLE, ACTIONABLE CUSTOMER FRAMEWORK

@GDRUMMOND #CEBSUMMIT MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

Source: John Deere

STRUCTURE BEHAVIORAL AND DEMOGRAPHIC DATA AROUND ATTITUDINAL DIFFERENCES

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TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

ATTITUDINAL

DEMOGRAPHIC

BEHAVIORAL

DEVELOP EMPATHY WITH PERSONAS

@GDRUMMOND #CEBSUMMIT MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

USE THE MODEL TO STRUCTURE AND INTEGRATE OTHER DATA

@GDRUMMOND #CEBSUMMIT MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

DRIVE ACTIONABILITY WITH TOOLS

@GDRUMMOND #CEBSUMMIT MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

Product-segment

interlock tool

Purchase path maps

(by persona)

Persona

baseball cards

Segment classification

tool

Segment actionability

matrix

Source: John Deere

BUILD AN INTEGRATED CUSTOMER EXPERIENCE ACROSS TOUCHPOINTS

@GDRUMMOND #CEBSUMMIT MYS

TER

Y

DA

TA

KNOWL

EDGE

INSI

GHT

INNOVA

TION

BRING CUSTOMER EXPERIENCE TO LIFE

HOW SATISFIED ARE YOU WITH YOUR SEGMENTATI

POLL QUESTION #3

@QUARRY @GDRUMMOND #CEBSUMMIT

ARM YOURSELFQUARRY.COM/

ZOMBIESgdrummond@quarry.com

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