Showing posts with label market data. Show all posts
Showing posts with label market data. Show all posts

Wednesday, May 18, 2016

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.

Wednesday, November 25, 2015

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.