Lately, it seems as though my education has been most useful in teaching me how to think, rather than what to think about. If my major was more geared towards strict memorization of a topic to be successful, such as knowing the name and function of specific body parts for a biology major, or a number of formulas for physics/engineering majors, I might not have to make that claim. But business, being the way it is, is taught better in theory. Very rarely would it be useful to run through examples and say “this is exactly what you need to memorize” or “this is exactly what you need to do”. Never the less, what I have began to take from my education is a process and way to apply knowledge, a way to look at a problem or situation, and solve. The classic liberal arts education, while in some ways seemingly useless to my professional life has proved invaluable in simply the way I look at the world and analyze what is actually going on, politically, personally, societally, and so on. Appreciation and understanding of sociology, an appreciation for philosophy and history, have built my critical thinking skills and frankly my patience when presented with a problem. Which leads me to what I have found the greatest take-away from the consumer insights course (and thus the project), is the general thought process of gaining insights that we followed. Starting with segmentation, expanding to experiences, planning and retrieving insights, evaluating the insights, and then using the entire process for something useful has proved to be a way I never thought of solving or looking at problems before. Seeing how each step in the process logically follows another, and why it is actually important to do it this way will be my biggest takeaway from this course. Starting with a product idea first and then testing each step to see if it will be successful may cause you to ask the wrong questions, interpret the answers in a particular light, and miss some of the subtleties that are there if you truly look. I am also a person that firmly believes the “why” is more important than the “what” or the “how”, and so this process may have seemed tenuous, time consuming, and unimportant without experiencing the process firsthand. Likewise, the self analysis section, actually writing and presenting concerns and learnings from each step was a nice change; it provided a way to analyze what to do going forward more critically and how to improve in the future.
Ways to gain insights from the selected focus group would be my next most important takeaway from the project; mainly, how difficult this process can be, and ways to improve the process. For our own group, we created a survey and asked respondents to select some items from a number of collages. While it makes sense to always make it as easy and comfortable as possible for respondents to take a survey or anything else, we missed something along the way. We developed each at separate times, and thus some respondents were given the survey and collage at different times (thus were likely to respond to the first, but not the second item given to them). Likewise, simply putting our survey on surveymonkey, instead of in a word document was boneheaded. Seeing some of the troubles other groups have had in gaining their insights, it made me realize how crucial it is to plan everything meticulously, and stay away from doing anything on the fly. I can’t really explain why this was not apparent and glaringly obvious to me before, but going through a few hassles has made it abundantly clear. Our group even chose a segment we had immediate and personal access to, was large in size, and well connected with, yet still had our troubles.
I feel as though the group environment really spurs on the learning process in this project. Because of the scope of the project, it is incredibly unlikely anyone would be conducting research of this magnitude on consumer insights or much of anything without a decent number of coworkers. Furthermore, having different insights from a diverse group actually helps the way that you interpret the information (even just balancing male and female perspectives, especially when dealing with couples, as our segment did). Luckily I was in a motivated group who was easy to get along with, and we all could compromise if need be. When picking segments Courtney had suggested Tweens, which would have been an interesting segment undoubtedly, but researching and getting into a tween’s mindset would have drove me insane, so we nixed it. Each presentation phase brought somewhat of a sense of accomplishment, so I feel segmenting it as it was, and having the status reports added some importance at each step.
Sunday, April 19, 2009
Saturday, April 18, 2009
Leading by Example
My place of employment has one of the most unique, dynamic, and successful company/work cultures of anywhere on earth. We have been fortunate enough to remain successful in a dismal economy, grow and maintain market share over our (lower priced) competitors, and are trending towards sustained profitability very soon. We sell a product that did not exist 5 years ago, to a market that did not exist 15 years ago, where almost every ounce of market demand for our products is self created. The company treats employees to unlimited vacation time, yearly lake parties, frequent catered lunches (more on this later), quarterly companywide meetings held at Alamo Drafthouse, two always stocked (and free) breakrooms/kitchens, and a monstrously sized game room with everything from a pingpong table to an Xbox 360 with the full Rock Band set up. Ask our CEO what the most remarkable thing about our company is, and without blinking an eye, Brett will tell you it’s the people. Beyond building an amazing product and impeccable business model, he has grown and hand selected a team of highly motivated, highly intelligent “Rock Stars” (as the company calls them) to run all the pieces. Without hiring only the best, and only those who you want to grab a beer after work with, all of these company perks would go to waste. Privileges could be abused, productivity would suffer, and the business would languish.
Yet he had a vision, an idea for how things should be done, and how people should be treated. Brett felt firmly that if employees were treated exactly how he wished to be treated, they would be more productive, more enthusiastic, and more dedicated to the company than any place that did not. So rather than waiting on others, he created the company and the culture, and just as importantly, surrounded himself with others who acted similarly, and shared the same values.
In essence, this is exactly what Seth Godin’s recent book Tribes details and explains in so many words and ways: people crave leaders, and the world rewards those who have a vision, act upon it, and incorporate others. Although the book is incredibly short (I finished it before the wheels touched the ground on a flight from Austin to Minneapolis), and meanders into Thomas Freidmanesque territory in execution (useless, ill contrived metaphors and repetition plague both authors writing style, such as the notoriously awful idea of “a unicorn in a balloon factory” that Godin is so fond of in Tribes), it demonstrates the main thesis with a number of examples, in and out of the business realm.
The beauty of this idea is not simply what has been preached forever (if you want something done right, do it yourself), but rather incorporating others to help amplify your idea, and the ease (thanks to the internet and telecom) you can reach others today. Power in numbers. Take initiative. Others will respect a genuine idea. All simple ideas, but much like a premise of the book, the ideas grouped together can create fantastic results.
So as a call to action, Brett purchased a copy of Tribes for anyone who wished to read it. He called together a few lunch meetings (with the catered food mentioned before), and had a roundtable discussion of the book and its implications. Any time that someone has taken the initiative to lead a group, or an idea, and execute on it while incorporating others, we call it “tribesing it”. This has led to a number of informational sessions, with a moniker of “community college” where specialists in any field will share their knowledge with anyone willing to listen, ranging from web analytics and search engine optimization, to the basics of professional photography and travels to Southeast Asia.
Furthermore, it has sparked a bit of initiative for individuals to step outside of their normal roles, and “self manage” so to speak. If something needs to be done, organizational structure be damned, someone should step up to the plate and head the effort. We work in a truly unique culture where this sort of thing is not only accepted, but promoted, so I can see a certain assumption of risk in less progressive organizations in doing this. Tribes slightly addresses this, but the “just do it” answer seems too simple for the complexity a highly political situation can bring.
The extended title, “Tribes: We Need You to Lead Us” basically says it all. Develop an idea, lead by example, and others will follow. Very “Field of Dreams” of you, Seth.
Yet he had a vision, an idea for how things should be done, and how people should be treated. Brett felt firmly that if employees were treated exactly how he wished to be treated, they would be more productive, more enthusiastic, and more dedicated to the company than any place that did not. So rather than waiting on others, he created the company and the culture, and just as importantly, surrounded himself with others who acted similarly, and shared the same values.
In essence, this is exactly what Seth Godin’s recent book Tribes details and explains in so many words and ways: people crave leaders, and the world rewards those who have a vision, act upon it, and incorporate others. Although the book is incredibly short (I finished it before the wheels touched the ground on a flight from Austin to Minneapolis), and meanders into Thomas Freidmanesque territory in execution (useless, ill contrived metaphors and repetition plague both authors writing style, such as the notoriously awful idea of “a unicorn in a balloon factory” that Godin is so fond of in Tribes), it demonstrates the main thesis with a number of examples, in and out of the business realm.
The beauty of this idea is not simply what has been preached forever (if you want something done right, do it yourself), but rather incorporating others to help amplify your idea, and the ease (thanks to the internet and telecom) you can reach others today. Power in numbers. Take initiative. Others will respect a genuine idea. All simple ideas, but much like a premise of the book, the ideas grouped together can create fantastic results.
So as a call to action, Brett purchased a copy of Tribes for anyone who wished to read it. He called together a few lunch meetings (with the catered food mentioned before), and had a roundtable discussion of the book and its implications. Any time that someone has taken the initiative to lead a group, or an idea, and execute on it while incorporating others, we call it “tribesing it”. This has led to a number of informational sessions, with a moniker of “community college” where specialists in any field will share their knowledge with anyone willing to listen, ranging from web analytics and search engine optimization, to the basics of professional photography and travels to Southeast Asia.
Furthermore, it has sparked a bit of initiative for individuals to step outside of their normal roles, and “self manage” so to speak. If something needs to be done, organizational structure be damned, someone should step up to the plate and head the effort. We work in a truly unique culture where this sort of thing is not only accepted, but promoted, so I can see a certain assumption of risk in less progressive organizations in doing this. Tribes slightly addresses this, but the “just do it” answer seems too simple for the complexity a highly political situation can bring.
The extended title, “Tribes: We Need You to Lead Us” basically says it all. Develop an idea, lead by example, and others will follow. Very “Field of Dreams” of you, Seth.
Monday, April 13, 2009
Concerns on this outline/essay: There are certain points where I feel it would start to sound too sales like, too much of an evangelical piece about the benefits of WOM, rather than a description of WOM and its practices. Essentially, WOM = Consumer Insights; the collection, broadcast, and amplification of consumer insights. Since my topic basically is a method to harness insights, I am not sure if I am spending enough time actually speaking about how it relates to insights, or if that will be necessary. Basically, how blunt should I be in pointing out the topics discussed, with their relation to the course? (soliciting for product recommendations is gaining insights, UGC is integral to decision making, etc).
Outline:
Across all societies and cultures the need for community and belonging is one of the basest of human needs. Only usurped in importance by physiological needs, and the need for safety (according to Maslow’s Hierarchy of Needs), it then makes sense that humans are naturally drawn to conversation, influenced by conversation, and hold conversation in high esteem. Conversation about goods, products and services, or Word of Mouth (WOM), has been one of the oldest and most influential forms of marketing. The recent explosion of word of mouth marketing has begun to change the marketing landscape, as well as radically altering the consumer shopping experience; all while still in its infant stages.
Tracing its roots back to ancient bazaars (and presumably further), word of mouth was a reliable way for consumers to interact with one another, and spread information: which products were the most reliable, where were the best prices, which vendor had the freshest fish, which vendors may use shady business tactics, etc. Even as influential as it is, WOM has fallen in and out of favor as a marketing tactic, with most 20th century marketing efforts focusing on rigorous control of information about a firm’s products, and even more strict control over a brand’s image. Frequently, companies wanted a one way conversation, with everything related to image, lifestyle, product features, and product benefits flowing directly from the firm to the target market, and the conversations stopping there. Recently, due to the growth of the internet and eCommerce, firms have begun to harness the power of WOM and amplify its effects to their benefit, online and offline.
This study will attempt to provide a holistic view on the current state of word of mouth marketing, such as how word of mouth is harvested and displayed, the costs and benefits of WOM to consumers and firms alike, the effects WOM is having on the current marketing landscape, the ethics involved while using WOM tactics, and where this branch of marketing will go in the future.
1) Avenues of presenting WOM and UGC
a) UGC/ Ratings and Reviews/Ask and Answer/ Stories – list of all companies that use these ugc tactics to their advantage. Power of Amazon. Prevalence of these features on IR 500.
b) Blogs – blogs have recently exploded, with corporations pushing blogs, and highlighting personal blogs that represent their interests. Blogs can also prove an “organic” form of UGC/WOM.
c) User Communities – Less tangible than R&R/A&A, but still incorporates WOM to a high level.
d) WOM is being used on and offline – collection is typically online, however the buzz created is being displayed in stores, and used to influence consumer’s opinions and reassure them of product quality.
2) Benefits of WOM
A) Costs – WOM is incredibly cost effective. Guerrilla marketing and viral marketing spreads at an incredible rate, and costs literally nothing to create. Further more, programs such as R&R, A&A are incredibly cheap from a marketing standpoint and incredibly influential (Bazaarvoice slidedeck stats).
B) Relieving the paradox of choice – With sometimes hundreds of possible choices for any given product category, UGC can dramatically reduce the number of options to select (based on sorting by best rated, and reading reviews). Further more, “top rated” products are typically displayed on most category pages, and retailers are finding ways to highlight products the community at large finds positive. Add BV stats.
C) Authenticity – Consumers crave authenticity. Those who try to fake authentic WOM usually end up failing, but those who display WOM in unadulterated fashion benefit from a sense of being “reliable, trustworthy, truthful”. Negative reviews, while unpleasant, can add to this sense of authenticity. Furthermore, negative reviews can add authenticity to a product by displaying both sides of the view, something sorely lacking in most traditional advertising, and something that the consumer values and trusts.
D) Brand engagement – WOM allows users to connect with the brand on a very personal brand, becoming an advocate for it. Most reviews are positive, so allowing customers to voice their opinions bring them closer to the brand.
3) Cons of WOM
A) Measurement – WO M is incredibly difficult to track its effectiveness. It is easy to trace pieces of content (blog posts, reviews, etc) but not easy to track DIRECT impact, both in online and offline channels, so retailers and mfg alike have a hard time justifying.
B) Lack of control – WOM is unpredictable. Although most reviews are positive, a brand can never predict what exactly the results will look like, so WOM is considered a bit unpredictable, and radical compared to traditional marketing methods. Furthermore, most brands keep a conscious effort to control all parts of their image. Although companies know that the conversations are already happening, many are weary of amplifying the effects of negative conversations.
4) Effects of WOM in marketing
A) Changing the 4 P’s – Insights from WOM are changing the 4 P’s…especially the promotion aspect. Some companies can spend almost nothing (top 100 beers in America survey), and be incredibly successful without budgets spent on traditional promotion. Shift towards promotion and amplification of WOM strategies to grow brand, enhance brand, solidify value, etc.
B) WOM validated by mass media – look at pizza hut commercials where they try and replicate WOM for pizza hut pastas. Companies recognize the voice of the consumer being incredibly influential on ALL OTHER consumers, and try to harness that power (but also place limitations, when unsure of WOM successes for their brand).
C) Increased Sales/ customer retention/ company benefits - http://bazaarvoice.com/industryStats.html
5) Ethics in WOM
A) Do not mislead customers to believe acting is true WOM – this will dilute the power of WOM in general, and cause others to reject WOM as viable at all.
B) Keep results factual – Don’t delete reviews simply because of being negative. Remain true to the findings and intent of WOM collection, amplify if it will sell
6) Future of WOM
A) Increased dependence - online and offline consumers will DEPEND on WOM to guide decisions in a wasteland of products. Furthermore, companies are finding new ways to incorporate the word of mouth they gather into traditional marketing ventures, and are finding ways to analyze the responses to improve their standing in the market.
B) Increased consumer input – consumers already play a giant role in what makes up a product, soon they will begin to be solicited for ideas to improve their products/lifestyles. While this seems obvious, a large customer base and influential and willing consumers may provide some serious solutions. (Staples new product ideas).
7) Conclusion
A) WOM and UGC are impacting various areas of business, online and offline, thr
B) What I learned:
I: The eagerness of consumers – consumers crave community and discussion, and are willing to engage in anything that they are passionate about. This provides raw, unadulterated content for marketers to analyze and promote, to influence other consumers, and possibly modify their own products or marketing efforts.
II: Shift in Ideology – Rather than pushing the conversations people are having on a daily basis to the wayside, companies are embracing these conversations as a centerpiece to their marketing strategies.
Outline:
Across all societies and cultures the need for community and belonging is one of the basest of human needs. Only usurped in importance by physiological needs, and the need for safety (according to Maslow’s Hierarchy of Needs), it then makes sense that humans are naturally drawn to conversation, influenced by conversation, and hold conversation in high esteem. Conversation about goods, products and services, or Word of Mouth (WOM), has been one of the oldest and most influential forms of marketing. The recent explosion of word of mouth marketing has begun to change the marketing landscape, as well as radically altering the consumer shopping experience; all while still in its infant stages.
Tracing its roots back to ancient bazaars (and presumably further), word of mouth was a reliable way for consumers to interact with one another, and spread information: which products were the most reliable, where were the best prices, which vendor had the freshest fish, which vendors may use shady business tactics, etc. Even as influential as it is, WOM has fallen in and out of favor as a marketing tactic, with most 20th century marketing efforts focusing on rigorous control of information about a firm’s products, and even more strict control over a brand’s image. Frequently, companies wanted a one way conversation, with everything related to image, lifestyle, product features, and product benefits flowing directly from the firm to the target market, and the conversations stopping there. Recently, due to the growth of the internet and eCommerce, firms have begun to harness the power of WOM and amplify its effects to their benefit, online and offline.
This study will attempt to provide a holistic view on the current state of word of mouth marketing, such as how word of mouth is harvested and displayed, the costs and benefits of WOM to consumers and firms alike, the effects WOM is having on the current marketing landscape, the ethics involved while using WOM tactics, and where this branch of marketing will go in the future.
1) Avenues of presenting WOM and UGC
a) UGC/ Ratings and Reviews/Ask and Answer/ Stories – list of all companies that use these ugc tactics to their advantage. Power of Amazon. Prevalence of these features on IR 500.
b) Blogs – blogs have recently exploded, with corporations pushing blogs, and highlighting personal blogs that represent their interests. Blogs can also prove an “organic” form of UGC/WOM.
c) User Communities – Less tangible than R&R/A&A, but still incorporates WOM to a high level.
d) WOM is being used on and offline – collection is typically online, however the buzz created is being displayed in stores, and used to influence consumer’s opinions and reassure them of product quality.
2) Benefits of WOM
A) Costs – WOM is incredibly cost effective. Guerrilla marketing and viral marketing spreads at an incredible rate, and costs literally nothing to create. Further more, programs such as R&R, A&A are incredibly cheap from a marketing standpoint and incredibly influential (Bazaarvoice slidedeck stats).
B) Relieving the paradox of choice – With sometimes hundreds of possible choices for any given product category, UGC can dramatically reduce the number of options to select (based on sorting by best rated, and reading reviews). Further more, “top rated” products are typically displayed on most category pages, and retailers are finding ways to highlight products the community at large finds positive. Add BV stats.
C) Authenticity – Consumers crave authenticity. Those who try to fake authentic WOM usually end up failing, but those who display WOM in unadulterated fashion benefit from a sense of being “reliable, trustworthy, truthful”. Negative reviews, while unpleasant, can add to this sense of authenticity. Furthermore, negative reviews can add authenticity to a product by displaying both sides of the view, something sorely lacking in most traditional advertising, and something that the consumer values and trusts.
D) Brand engagement – WOM allows users to connect with the brand on a very personal brand, becoming an advocate for it. Most reviews are positive, so allowing customers to voice their opinions bring them closer to the brand.
3) Cons of WOM
A) Measurement – WO M is incredibly difficult to track its effectiveness. It is easy to trace pieces of content (blog posts, reviews, etc) but not easy to track DIRECT impact, both in online and offline channels, so retailers and mfg alike have a hard time justifying.
B) Lack of control – WOM is unpredictable. Although most reviews are positive, a brand can never predict what exactly the results will look like, so WOM is considered a bit unpredictable, and radical compared to traditional marketing methods. Furthermore, most brands keep a conscious effort to control all parts of their image. Although companies know that the conversations are already happening, many are weary of amplifying the effects of negative conversations.
4) Effects of WOM in marketing
A) Changing the 4 P’s – Insights from WOM are changing the 4 P’s…especially the promotion aspect. Some companies can spend almost nothing (top 100 beers in America survey), and be incredibly successful without budgets spent on traditional promotion. Shift towards promotion and amplification of WOM strategies to grow brand, enhance brand, solidify value, etc.
B) WOM validated by mass media – look at pizza hut commercials where they try and replicate WOM for pizza hut pastas. Companies recognize the voice of the consumer being incredibly influential on ALL OTHER consumers, and try to harness that power (but also place limitations, when unsure of WOM successes for their brand).
C) Increased Sales/ customer retention/ company benefits - http://bazaarvoice.com/industryStats.html
5) Ethics in WOM
A) Do not mislead customers to believe acting is true WOM – this will dilute the power of WOM in general, and cause others to reject WOM as viable at all.
B) Keep results factual – Don’t delete reviews simply because of being negative. Remain true to the findings and intent of WOM collection, amplify if it will sell
6) Future of WOM
A) Increased dependence - online and offline consumers will DEPEND on WOM to guide decisions in a wasteland of products. Furthermore, companies are finding new ways to incorporate the word of mouth they gather into traditional marketing ventures, and are finding ways to analyze the responses to improve their standing in the market.
B) Increased consumer input – consumers already play a giant role in what makes up a product, soon they will begin to be solicited for ideas to improve their products/lifestyles. While this seems obvious, a large customer base and influential and willing consumers may provide some serious solutions. (Staples new product ideas).
7) Conclusion
A) WOM and UGC are impacting various areas of business, online and offline, thr
B) What I learned:
I: The eagerness of consumers – consumers crave community and discussion, and are willing to engage in anything that they are passionate about. This provides raw, unadulterated content for marketers to analyze and promote, to influence other consumers, and possibly modify their own products or marketing efforts.
II: Shift in Ideology – Rather than pushing the conversations people are having on a daily basis to the wayside, companies are embracing these conversations as a centerpiece to their marketing strategies.
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