Upload
chadwick-martin-bailey
View
1.919
Download
2
Tags:
Embed Size (px)
DESCRIPTION
Chadwick Martin Bailey's Rich Schreuer and Amy Modini share best practices and case studies from their years conducting product and service development research across verticals. You'll learn: * Which of the latest trade-off techniques work best for product and service development research * The role of brand in product and service development research * Steps to ensure the information is used once a project is complete
Citation preview
Best Practices for Product/Service Development Research
Innovative Techniques and Examples
Today’s Webinar
• Who is Chadwick Martin Bailey?
• Today’s Speakers
• Innovations in Product/Service Development research
• Q & A (please enter questions into the webex Q & A feature and we’ll answer them at the end)
2
3
Chadwick Martin Bailey:Company Facts• Founded in 1984
• 60 Employees
• Headquartered in Boston
• Global, Full-service Provider
• Fully Dedicated Retail, Healthcare, eCommerce, Technology, Financial Services, and Travel and Hospitality Practices
• Sweet Spot: when you want a supplier who will provide original ideas, not just a response to an RFP
Our Clients: We Partner with Leaders in a Range of Industries
4
Chadwick Martin Bailey: Our Specialties
5
Product and Service Development
Research to support the development, positioning, and launch of new products and services
Segmentation Finding the high potential growth opportunities and providing direction on ways to realize the growth
Customer / Brand Experience
Driving customer acquisition and market share by linking customer experience to the brand message
Customer Experience and Loyalty
Research to enhance (retain and build) relationships with key customers
Rich SchreuerChief MethodologistChadwick Martin Bailey
Amy ModiniAccount Director, HealthcareChadwick Martin Bailey
Today’s Speakers:Rich Schreuer and Amy Modini
6
Research Along the Product/Service Development Pipeline
8
Key Steps in the Product Development Process
1. Idea Generation
4. Strategy 5. BusinessAnalysis
6. ProductConfiguration
7. Market Testing
8. Marketing
2. ConceptDevelopment
3. ConceptTesting
9
Research Innovation at Key Steps in the Process
• Research plays a role throughout the product development process, providing market input that drives innovation
• Multi-method, multi-source
• Problem Analysis• Prioritization• Social Media Listening
• Maximum Difference Scaling• Dual-Choice Maximum
Difference Scaling
• Dual Choice Discrete Choice
• Adaptive Choice- Based Conjoint
• Interactive Decision Tool
• Brand-Based Product Messaging
Stage 1:Idea
Generation
Stage 3:Concept Testing
Stage 6: Product
Configuration
Stage 8:Marketing
Innovative Techniques
1. Idea Generation
11
Traditional Idea Generation Methods Are Lacking
• Many companies:• Focus on incremental improvements, not
groundbreaking ideas• Rely heavily on engineering for new product/service
and product/service refinement ideas• Fail to adapt to changing market conditions• Focus more on the what than the why
• Taking a multi-method, multi-source approach helps:• Understand the issues people are facing surrounding
your offerings, not just the offerings themselves • Hear customers and prospects as they talk amongst
each other, and directly to you• Focus on solving problems and meeting goals
There is No Shortage of Sources and Methods To Utilize
12
M U L T I P L E A N D D I V E R S E M E T H O D S
Face-to-Face (Interviews, groups, etc.)
Online(BBs, blogs, groups, etc.)
Telephone Interviews
Observational
MULTIPLE AND DIVERSE SOURCES
Households/End Customers
Employees
Agents/Intermediaries
Experts/Thought Leaders
International (subsidiaries, etc.)
Suppliers
In Qualitative Alone, the Past 4 Years has Shown Huge Growth in Tools and Techniques
13
Well Known Qualitative Options in 2010
Brain scanning Online bulletin boards
Customer generated videos Online chats
Ethnography Online communities
Facebook comments and polls Online focus groups
Focus groups Open ended questions in quant. research
Journaling or audio journaling Qual-quant research sessions
Mobile diaries Sharing photos via cell phones
Monitoring blogs and forums Text message based feedback
Mystery shopping Using Twitter as a customer feedback tool
Observational research Video chats
One on one face to face interviews Virtual shopping
One on one telephone interviews Voice of the customer programs
Well Known Qualitative Options in 2006
Ethnography
Focus groups
Journaling or audio journaling
Mystery shopping
Observational research
One on one face to face interviews
One on one telephone interviews
Open ended questions in quant. research
Multi-Method, Multi- Source: Combining Methods From Traditional and Non-Traditional Sources Gives You a Clearer Picture
14
Ideas to Consider
Social Media Listening
Competitive Analysis
Customer and Employee Feedback
Qualitative Research
Problem Analysis
For Example, Combining “Listening” with Primary Research Helps Gather and Evaluate Ideas
15
Traditional Focus Groups
Ideas for improvement
Social Media Listening
(using Crimson Hexagon)
Ideation Sessions
Social Media “listening” Mines Traditional, Online, and Social Sources to Extract Meaning and Deliver Insights
16
2. Choose the categories the posts represent
3. Train the algorithm with examples for each category
Monitor summarizes online conversation4.
Select the content sources and search terms1.
17
Problem Analysis: Focus on Solving Problems• Customer-centric: makes the voice of the customer part of the development process • Rating Index: focuses developers on consumer needs that are most urgent/common• Competitive Differentiation: Identifies opportunities for compelling and distinctive
positioning against alternatives• One Rock, Many Birds: Can be leveraged into many other areas, such as sales,
marketing, communications, and market positioning
Never ConstantlyNot at all bothersome
Extremely bothersome
Did not know where to check in 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Had to go to counter because reservation was not available 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Waited to get add-on item that I had pre-reserved 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Choices too similar 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Choices did not meet my specific travel needs 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Had to wait for a service representative because person was unavailable
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
18
Problem Analysis: Focus on Solving Problems
40 50 60 70 8040
50
60
70
80Critical Impact
Lesser ImpactLimited menu selection at hotel restaurant
Limited concierge hours Not able to check-in at promised time
Slow serviceLimited booking access
No internet access in rooms
Over-priced menu
Dimly lit rooms
Rooms not clean
Rude staff
Long lines at check-in
Hotel Guests Likelihood to Stay Again
Intensity (%8-10)
Freq
uenc
y (
%8-
10)
GoalsProduct Features
Definition Importance Scarcity Priority
Loan Access Eligibility to borrow money from the bank (e.g., mortgage, student loan) 13.1 54% 11.0
Customer Service Dedicated access to card member service, including call centers 12.4 44% 10.3
Transparency Full disclosures of rates, fees and charges 11.6 59% 9.9
Discounts Eligibility to special event offers (e.g., birthday, wedding, etc.) 10.3 54% 7.8
Protection Insurance to cover payments if you are unable to make them 9.2 59% 7.4
Responsiveness On-time arrival of bills and answers to charge queries 9.0 59% 6.9
Benefits Variety in rewards programs to match card-member's choices or life styles 8.7 63% 6.2
Connectedness Ability to link and transact with other accounts with the bank 8.1 45% 3.6
Online Ability to make payments on internet with card 10.8 22% 3.2
Limited Editions Exclusive cards designed to promote social positions 8.3 64% 2.5
Prioritize Individual Product Features From a Customer Centric Viewpoint
2. Concept Testing
Concepts Need to Be Evaluated Based on Customer and Business Goals• Customers:
• What are customers and prospects trying to achieve?• Where are there gaps? • Where is incremental improvement appropriate vs. wholesale changes?
• Business:• What would make this offering a “success”?• What limitations do we have in developing, servicing, and selling?• How does this fit with our brand?
Market Share Growth Revenue Growth Profit Growth
Concept 1
Concept 2
Concept 3
Concept 4
22
Maximum Difference Scaling is a Great Way to Measure Appeal• This approach is especially useful because it:
• Derives the preferences of respondents, rather than asks it• Eliminates halo effects• Can handle a large number of features
Think about the different rewards available for using credit cards. For each group of rewards listed below, please indicate which one of the four rewards is most appealing to you and which one is the least appealing to you.
Least Appealing Of these 4 statements, which is the MOST and LEAST appealing? Most
Appealing
Discounts on gas
Money towards your mortgage
Donation to a charity/school
Interest rebates
A New Approach: Anchored (Dual-Choice) MaxDiff
• In Anchored MaxDiff, we ask respondents to make best/worst choices… • We then ask a follow-up question for each task that is used to set a true 0
threshold level through the use of dual-response questions.
23
96 94 92 91 90 88 87 86 86 84 83 82 80 79 78 76 75
A B C D E F G H I J K L M N O P Q
Stated Preference Rarely Discriminates
Appeal of Features(%8-10)
A Discounts on gas
B Deposit to a savings or investment account
C Money towards utilities bill
D Gift cards
E Money towards your mortgage
F APR discounts
G Interest rebates
H Discounts at selected retailers
I Travel rewards for use with a variety of carriers
J Bonus miles/points after spending a certain amount
K Travel upgrades or discounts (hotels, rental cars)
L Frequent flyer miles for a specific airline
M Online mall
N Money towards school tuition
O Tickets to events and shows
P Donation to a charity/school
Q Donation to reduce carbon footprint
24
A B C D E F G H I J K L M N O P Q
14.1
11.010.3
8.7 8.4
6.9 6.4 6.45.3
4.63.8 3.5 3.2
2.51.9 1.6 1.4
But Employing a Trade-off Technique (Such as Max-Diff) Ensures Differentiation
Desired Features
IChart displays the mean appeal (importance) score for each item. Maximum Difference utilities are converted into ratio-scaled probabilities that sum to 100 across the items. Thus an item with a score of 8 is twice as important as an item with a score of 4. The dotted line represents the average (5.9). NTERPRET WITH CARE – MEAN VALUES HIDE HETEROGENEITY OF PREFERENCE AND ARE SKEWED BY OUTLIERS.
A Discounts on gas
B Deposit to a savings or investment account
C Money towards utilities bill
D Gift cards
E Money towards your mortgage
F APR discounts
G Interest rebates
H Discounts at selected retailers
I Travel rewards for use with a variety of carriers
J Bonus miles/points after spending a certain amount
K Travel upgrades or discounts (hotels, rental cars)
L Frequent flyer miles for a specific airline
M Online mall
N Money towards school tuition
O Tickets to events and shows
P Donation to a charity/school
Q Donation to reduce carbon footprint
25
26
With Anchored MaxDiff You Get Mean Utilities
A B C D E F G H I J K
14.110.3
6.9 6.4 5.3
-3.0 -3.3 -3.8-6.2
-8.5-13.2
Desired Concepts
Concept:
3. Product Configuration
28
Traditional Product Configuration Methods Are Lacking
• Typically, companies follow one of these processes:• Use best guess, and go to test market• Develop concepts based on an internal model,
then go to test market• Rely on slight changes to a competitively successful
product• Conduct focus groups to refine existing concepts
• Trade-off modeling such as Discrete Choice and Adaptive Choice help:• Predict market share under competitive situations• Identify dollar value of product features• Optimize product configuration for key sub-groups• Segment market based on unique configurations• Identify price/demand curve
For Years Discrete Choice Has Been Solving Several Problems
Scenario 1 of 16 Option 1 Option 2 Option 3 Option 4
Card Scheme MasterCard Visa American Express Diner’s Club
Annual Percentage Rate 11% 19% 15% 23%
Account Support None 24/7 telephone assistance 24/7 account management via ATM 24/7 online assistance
Managing Cash Spending Alert sent advising when close to spending limit
Ability to choose daily ATM withdrawal limits
Ability to set daily or weekly card spending
limitsAbility to limit outlets
where card can be used
Free Trial None 6-months 3-months 12 months
Security Photo ID included on the card
Alert sent if unusual activity noticed on your
account
Secret Personal Identification Number
required for all purchases or cash withdrawals
Security call made to your bank, at the time of
purchase, on all purchases over €100
Card Holder Benefits NoneOne extra year warranty
on items over €100 purchased
1% cash back on all individual purchases over
€1,000
Annual fee rebated when spend over €1,000 in a
year
Annual Fee €60 €30 No annual fee €15
Which card configuration do you most prefer? Option 1 Option 2 Option 3 Option 4
Would you actually sign up for the card you selected above if it were available to you today?
Yes
No
29
30
Adaptive Choice-Based Conjoint is Going Further
• ACBC is an innovative approach to trade-off modeling because it adapts to respondent choices in order to collect better data• Captures more information from the respondent for more stable individual level
estimates• Allows us to better analyze smaller sample sizes• Is more effective in situations where pricing is a critical objective• Based on respondent feedback, we find it provides more engaging interviews and
respondents like this method better than standard choice models
Adaptive Choice-Based Conjoint is Going Further
• ACBC consists of multiple stages:• Build-Your-Own (BYO) task• “Near Neighbor” concepts• Determine “must haves”
and “unacceptables”• Choice Tournament
31
32
A Market Simulator Can Be a Powerful Predictive Tool
• For example, Credit card usage was lagging behind the US in Europe, and our client tasked CMB to explore how various credit card offerings would affect market share and usage
• The following features are included:
• Free Trial: Trial period before any other service fee is charged
• Security: Card features designed to ensure that no one except the legitimate card holder can use the card to make purchases or cash withdrawals
• Protection: Card features designed to limit the financial liability of the card holder
• Card Holder Benefits: Extra benefits for using the credit card to make purchases
• Annual Fee: Yearly fee charged by the issuer to administrate the card and transactions
• Card Scheme: The credit card provider used for the card
• Card Issuer: The type of financial institution that issues the credit card and provides support to card holders
• Annual Percentage Rate: Interest rate charged on credit card
• Account Support: Additional types of customer service available to card holders
• Managing Cash Spending: Methods by which card holders can control spending with the card
• Managing Repayments: Payment plan options available to card holders
Interactive Decision Tools
The Interactive Decision Tool (IDT) allows you/your users to explore trends
• Quickly and easily optimize your offering based on particular parameters or model various scenarios
• Understand the relative importance of features
• Model in the tool or simply download charts or underlying data to excel
33
4. Marketing Support
35
Ensure Product-Specific Messaging Supports the Brand
TRUST CUSTOMERSERVICE LOW COST
Discloses all info up front Highest security standards on web Work with same specialist Specialist available 24/7 Close loan at your location Guided throughout process Low rate guarantee / cash back Beats national average on rates
36
LOW
LOW
HIGH
HIG
HA
WA
RE
NE
SS
I M P O R T A N C E
Specialist available 24/7
Guided throughout
process
Work with same specialist
Close loan at your locationHighest security
standards on the web
Discloses all info up front
Beats national average on rates
Low rate guarantee / cash back
TRUST
CUSTOMER SERVICE
LOW COST
Prioritize Messaging Based on Brand Support AND the Impact on Loyalty
37
In Summary: Best Practices of Product and Service Development Research At Each Stage• Idea Generation: Use a multi-method, multi-
source approach to listen to the market and gather ideas for concept testing
• Concept Testing: Test concepts in terms of how they meet both customer and business goals
• Product Configuration: Use sophisticated trade-off modeling (such as Dual Choice Discrete Choice and Adaptive Choice) to develop the optimal set of features, benefits, and tiers
• Marketing: Evaluate messaging holistically in terms of relevance, appeal and brand fit
179 South Street, Boston, MA 02111 ● 617-350-8922 phone ● 617-451-5272 fax www.chadwickmartinbailey.com
Questions?
Rich SchreuerChief MethodologistEmail: [email protected]
Amy ModiniDirector, Healthcare PracticeEmail: [email protected]
Follow us on twitter @cmbinfo , Read our blog at blog.cmbinfo.com or become a fan on Facebook
See some of these approaches from a respondent perspective by going through the trade-off technique demos at:
http://www.cmbinfo.com/why-cmb/analytics/