Getting The Most Out Of Focus Groups

Large organizations, including corporations, academic institutions, and government agencies, have recruited focus groups for decades to help them gain insight into the wants, needs, and behaviour of the public. For businesses, it’s useful to ascertain what current and potential customers and clients are looking for, and the focus group can be a cost-effective and highly revelatory source of information.

Consider the following points when you’re planning to recruit focus groups, so that you can separate the signal from the noise and ultimately derive useful data from the sessions.

The overall composition of the groups should accurately reflect your target demographic.

While this principle seems like common sense, its importance is difficult to overstate. A series of focus groups whose composition substantially differs from that of the target demographic won’t necessarily yield helpful data.

What age are your prospective clients or customers? Gender? Marital circumstances? Ethnicity, or mix of ethnicities? What language(s) do they speak? Where and in what circumstances do they live?

The better you can form a mental picture of your customer/client base before you begin recruitment, the more informative your focus group sessions are likely to be.

Stay on track.

One the of purposes of a focus group is to enable participants to share their own thoughts and feelings in an open, accepting environment, and in relative spontaneity. But whenever you gather strangers or acquaintances together and encourage them to converse spontaneously, the discussion is likely to wander off topic. This is where the skill set of a competent moderator becomes essential.

Attributes you should look for in a moderator include patience, firmness, articulacy, strong organization skills, the ability to appear neutral and impartial over the course of the discussion, and ideally some credible previous experience in the field. A moderator will also occasionally need to call on participants who haven’t said anything in a while, to encourage their input.

Would Goldilocks approve of the size of your group?

A focus group that is too small will tend to be stilted and fail to generate rich discussion. On the other hand, when the group is overly large, it will tend to segment into several smaller cliques, or a core group will form that excludes participants on the periphery.

Ideally, the scale of your group should be six to 10—not too big, not too small, but just the right size to facilitate an inclusive, respectful, productive exchange of ideas.

Ask the right questions.

To design effective questions for a focus group, you must begin by posing one to yourself: What exactly do you want to know? Until you can narrow down what you’re looking for, you’ll find it difficult to design questions that are specific enough to meet your needs.

You’ll also want to limit the number of questions to a manageable level. A good rule of thumb is that the number of questions (except for clarifying queries that the moderator may inject once in a while) should be roughly equal to the number of participants.

One of the main advantages of a focus group over a survey is the opportunity for participants to modify their views during the discussion. It’s common for a focus group participant to end the session with an opinion significantly different from the one s/he started with.

Conduct at least three or four unique group sessions.

This is likely the minimum you’ll require in order to generate valid, applicable results.

Each session should last anywhere from 45 to 90 minutes. Beyond that point, group productivity tends to stall, and you’ll probably have covered all of your questions anyway.

You’ll know when you’ve reached the “saturation point”.

When new focus group sessions aren’t generating many new ideas, you’ve probably retrieved about as much data as you can reasonably expect from the focus group endeavour. It’s time to wrap up and analyze what you’ve collected.

Marketing to Customers’ Emotions

Consider television advertisements that you’ve seen for fragrance products, such as Axe deodorants and body sprays, Calvin Klein colognes, or Chanel perfumes. Some of these commercials entice would-be buyers with the promise of an exciting and glamorous lifestyle, others portray an image of coolness, stylishness, manliness, gracefulness, attractiveness. Almost universally, they seek to appeal to the emotional desires and ambitions of the target audience.

Of course, the power of emotion extends far beyond the world of fragrances; branding experts regularly employ emotional techniques to plug items ranging from soft drinks, to jeans, to automobiles. By connecting your brand identity to the emotional aspirations of consumers, you too can convey a potent message. But you’ll need to begin with a solid understanding of your customers’ emotional drivers.

What motivates your customers?

Every one of your customers is a unique individual, and each may have h/er own reasons for seeking out what you offer. Nonetheless, you’ll often be able to identify emotional drivers that many share.

As part of their research into customer emotional connectedness, published this month in Harvard Business Review, analysts Scott Magids, Alan Zorfas, and Daniel Leemon compiled a list of High-Impact Motivators that includes the following:

•  A desire to stand out from the crowd, which businesses can leverage by emphasizing the uniqueness of their brand.

•  Confidence in the future, and a feeling that the best in life is yet to come.

•  Well-being, including relief from stress.

•  Freedom and independence, and sovereignty over one’s own decisions.

•  Success, defined by the sense that one’s life and endeavours have meaning.

•  Belonging, as in being part of the “in” crowd, and/or perceiving oneself to belong to something greater.

•  Thrill/excitement, and the associated pleasure or buzz.

•  Environmental protection: the belief that one’s purchasing decisions are either helping to prevent (or at least, not further exacerbating) the degradation of the ecosystem.

            Other common emotional drivers are the desire for love, financial security, the admiration of one’s peers, and the wellbeing of one’s family.

Identify emotional connections.

Existing customer and market data, surveys, and social media can all offer valuable insights here.

If your customers have liked or favourited your business or its products on social media, there is a good chance that these individuals would welcome updates, including information on special deals and limited-time offers. Surveys provide a means for you to learn about the emotions associated with particular customers and their shopping behaviour. (Questions like “Do you place greater value on individuality, or social acceptance?” or “Do you consider (X) a good brand?” can yield enlightening insights.) By aggregating basic customer data points—such as age, profession, gender, and transactional records—you can develop a profile of the kinds of customers who most value what you have to offer.

Emotionally connected customers tend to be lucrative ones.

Typically, your data will reveal that a minority of your clientele consists of regulars and comparatively big spenders. The research of Magids, Zorfas, and Leemon suggests that there is substantial overlap between your most frequent or lucrative customers, and those who feel emotionally connected to your business.

By reaching out to your most emotionally connected customers first, and striving to forge stronger connections with your borderline-emotionally connected customers, you can give your business greater staying power and a competitive edge over those that overlook this factor.

Reflections on Celebrity Endorsements

Many people automatically associate celebrity endorsements with large, established firms, but that isn’t necessarily the case. Evan Morgenstein, president and CEO of CelebExperts—a U.S. outfit that matches businesses with celebrities keen to offer endorsements—says that more than half of the client enterprises his company serves are small- or medium-sized firms and non-industry leaders.

“The misconception by most is that only the P&Gs, Johnson & Johnsons and Gatorades of the world can afford a celebrity spokesperson, but that isn’t supported by our experience,” Morgenstein told Forbes contributor Susan Gunelius in 2013. Furthermore, just as businesses vary widely in scale and market capitalization, the category of “celebrity” is also broad, encompassing not only A-list actors, musicians, and professional athletes, but also television chefs, local news anchors, authors, and game-show contestants—to list just a few sub-sets.

If you plan to retain the services of a celebrity endorser, the process is not unlike that of hiring a new employee. You need to find the right person for the job—someone who is not only recognizable amongst your target demographic, but whose reputation is also consistent with the brand image you hope to cultivate. Finally, rather than seeking out the most famous individual who will agree to work with you, your overarching priority should be value for money.

Look for genuine enthusiasm (especially if your celebrity is not a professional actor).

It is always better to seek the endorsement of a celebrity who genuinely appreciates what your business has to offer, rather than one who is primarily motivated by the money or a desire for self-promotion. This is important for many reasons, but in particular, celebrities often have large numbers of followers on social media and make frequent public appearances. If your endorser ends up fielding an offhand question about your company, a positive, enthusiastic response would sure beat an indecisive one.

If you’re torn between hiring a highly renowned celebrity who knows little about your business, versus a less distinguished celebrity who loves and is conversant with your company, favour the latter.

Your endorser will be associated with your brand for years to come.

Celebrity endorsement is always a risk-reward proposition. In many well-known cases, celebrity endorsers have become the de facto “face” of particular companies and brands—for instance, consider actress Catherine Zeta-Jones’s relationship with telecom provider T-Mobile, or NASCAR driver Danica Patrick’s association with web domain name purveyor GoDaddy.com.

But business deals of this sort have also gone awry due to celebrity endorsers’ personal or professional struggles. Anheuser Busch (the parent corporation of Michelob Ultra) probably never anticipated that Lance Armstrong’s Tour de France titles would be rescinded because of the cyclist’s doping. Likewise, Nike invested much reputational capital in one of the world’s most gifted athletes, Tiger Woods, producing a memorable and emotionally evocative series of print and television advertisements. Little did Nike’s executives suspect at the time that Woods’s objectionable activities off the golf course had the potential to tarnish their brand image.

Of course, you can’t know everything about the celebrity you hope will endorse your business, but as always, due diligence is important. Has your prospective celebrity endorser ever been credibly accused of wrongdoing? If so, you’ll need to consider how this reflects on your brand before deciding whether to proceed.

Look for potential freebies and “barter” exchanges.

A productive celebrity endorsement can be a huge marketing boon for a business with modest cash flow and little public exposure. But this begs the question of how such a company can possibly afford to remunerate a prospective celebrity endorser.

There are a couple of ways around that obstacle. In some instances, you may have the opportunity to strike a barter deal, like a celebrity endorsement in exchange for a discount or free merchandise. Otherwise, if a celebrity happens to pay you a visit, you can follow up and encourage h/er to share positive testimonials about your business with friends and associates.

To return to the theme with which this post began: Don’t make the mistake of assuming, just because you run a small firm with an unextravagant marketing budget, that the prospect of a celebrity endorsement is entirely out of reach.

Does Facebook Advertising Work?

One billion plus.

That's how many current Facebook users there are. More than likely, by the time you read this article there will be millions who have signed up for this social network.

Even if you were to get a response rate of a fraction of a single percent point, your advertising would still be reaching a lot of potential customers.

There are other reasons why Facebook advertising is a good investment. Consider these advantages:

·         Targeted Demographics

Effective advertising comes down to targeting your demographics. Facebook advertising allows you to get very specific in terms of your potential customer base. Not only can you focus on gender and age groups but also on the many "likes" that a Facebook user can tap into. If you're selling hockey jerseys then you'll want to get your ad in front of any fan of the game. Facebook can help position you to those demographics. 

·         Going Local

Not only can Facebook help you focus on demographic groups but also on geographic locations. Everyone who signs onto Facebook has the ability to "mark their spot." This affords local businesses the chance to reach out to those customers who are spending directly in their community.

·         Effective Marketing Spending

As you prepare your Facebook advertising campaign you'll be able to project just how many users will see the ad. This is important for the kind of pay per click ads that Facebook excels at. You'll be able to scale your budget to fit the potential reach of your ad. That will make your marketing dollars have a stronger ROI.

·         The Viral Effect

Whenever a Facebook user "likes" your company page, that "like" will show up on their news feed which in turn is posted on the news feed of all their friends. This can have a snowball effect of spreading your message even further as hundreds of more users are exposed to your ad.

·         Custom Branding Choices

The Facebook ad allows you to use powerful images that can draw attention to your post. Because of the ease of accessibility, you can change up those images and find which ones work best for your campaign.

The bottom line is that a billion potential viewers are logging onto Facebook on a fairly consistent basis. In terms of online marketing, this is really the greatest reach of any site out there.

As with any type of advertising campaign there is no guarantee of success.

However, with Facebook advertising you can start small with a targeted campaign, test its effectiveness and roll out a wider reaching strategy.

Definitely worth exploring.

What Government Funding Can I Get for my Business?

If you are like most Canadians in business, you've probably wondered if you can ever get something back from the government, after you've paid all those taxes over the years. It seems only fair.

The best situation is discovering that you are eligible for a government grant or contribution. Grants do not need to be repaid and contributions are only repaid in certain cases. The problem is that these are few and far between. Generally, grants are available for specific programs and have very specific criteria. For the most part, grants usually are provided for specific industry sectors or for certain demographic groups.

On the other hand, there may be other government options that are applicable to your business. For example, you may be eligible for a government loan guarantee. This would enable you to get a loan that you might otherwise not receive approval for. With the government behind you, the bank will be far more willing to talk with you.

If you hire employees that have certain characteristics, you may be entitled to wage subsidies to help offset their salaries. Check with your tax advisor who is currently on the subsidy list and whether your business can benefit from these employees.

If your business makes certain investments, you may be entitled to a tax credit or refund. Check the current information with the relevant tax authorities.

If your business does not qualify for a commercial loan, you may be entitled to a loan from various government departments. Also, these government offices sometimes offer loans to businesses at lower rates than commercial lending institutions. A little research may save you some money.

In general, before assuming that your neighbourhood bank is the only lending option that you have, check what's available from the government. You may be pleasantly surprised.

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