Download - Ferial.Lecture.1.Revised.Final
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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MOSKOWITZ JACOBS INC.Strategic Brand Developers: Research & Consulting
Sequencing the genome of the CUSTOMER mind: Application to food & drink Howard R. Moskowitz, Ph.D.PresidentMoskowitz Jacobs, Inc.
FerialMedellin, ColombiaThursday, May 21, 2009
Lecture 1
© 2009 i-Novation, Inc.
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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What this presentation is all about
» You can create products..but what?
» You can figure out what to say…but to whom?
» And..how do you reach people?
» We’re not talking about big ticket items.. But rather 1$ - 10$...where the profit is minimal on each purchase, and where you need efficient distribution
» What if you could have loyalty programs..or somehow get into 1:1 contact with customers
» THINK NARROWCAST..THE WiiFM (what’s in it for ME..YOUR customer)
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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The ‘new’ realities
Everyone is connected
Multi-tasking destroys focus
Competition is ever easier & always ‘there’
Search is king
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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How might you ‘cope’ with these harsh, new realities?
» The old advertising models just won’t work as well, especially for low priced items like food
Too many channels & messages Too many choices
» People want to get what THEY want, not what you want In the way THEY want it But what do you offer and how do you offer it?
» Too many offerings … you just can’t be everywhereThink medical – the ‘magic bullet’ is a targeted drug that goes right
to the disease site to deliver its payloadThink narrowcastThink ‘right payload’ to the ‘right mind’ at ‘the ‘right time’
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Here is what we hope you will discover
» Traditional and even some ‘new’ advertising and direct sales follow a knowledge path …similar to taking family history in medicine
Look at previous behavior to determine propensity to buyLook at a person’s choice, and make new offers based on similar
choices by other people (Amazon model)Look at segment membership and offer what might appeal
» We propose a different approach, based on the way today’s medicine is practiced… scratch tests or blood tests..but of the mind
Identify the algebra of a specific person’s mind at a granular level for a specific product…tells you what ‘works’
Create typing tool for this algebra, identify mind genome of a personMarket to that mind genome
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
The Bottom Line Potential of Sequencing the Mental Genome of the Customer
Inbox to In-Store: Epsilon Study Shows Email Campaigns Drive Store Choice, Favorably Influence Offline Retail Shopping Behavior
56% of Shoppers More Likely to Buy from Retailer Who Sends Them Email48% Feel More Loyal After Receipt of Store Email
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Sequencing the Mental Genome of the Customer…
through the mechanism of Addressable Minds™
A Schematic
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Today’s Advertising Paradigm
Retailers / Manufacturers ->
...Traditional advertising messaging targeted to large audiences …based on simple classification descriptors and what they purchase …it’s how media is bought
Your Customers….Advertising strategy assumes/hopes for group homogeneity…Men want “Y”, Women want “X”
Result…Lots of messages without regard to ‘true/effective’ messages & motivators ‘that really work’ for each customer
Demographics, Behavior
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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The Addressable Mind™ Solution
Retailers / Manufacturers ->
IdeaMap.Net Foundation Database / test for each retailer / manufacturer
Discover Segments, Create Typing Tool, Identify Message Drivers
Classify new population into segments…THEY LOOK THE SAME BUT THEIR MINDS ARE DIFFERENT
Now, Target best messages to each segment and do it by each manufacturer and retailer
IdeaMap.net
Discover Mind Segments:- Green Conscious- Only The Best
Identify Mechanism For Segmentation
Identify Importance Of Each Message byTotal, Segments etc.
GREEN GREENGREENGREENBEST BEST BEST BEST
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Think about addressable minds for loyalty programsFoods, beverages..all sorts of inexpensive items
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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What to do for foods … Steps 1, 2, 3 and 4
#1 Possible messages & images
#2 Foundation
database for each product
#4 Scale-Up Consumers who self type and later receive targeted & relevant messages #3 Database with typing engine
INTERNET
IdeaMap.net™
Total Sample
Seg 1 Self Driven Online
Banking Seekers
Seg 2 Technology/
High Security Seekers
Seg 3 Collaborative
Online Seekers
Seg 4 Personal Touch with Technology
Base Size: (267) (105) (50) (59) (53) Constant: 31 34 28 31 26
OC1 Connect online in 'real time' with a customer rep via instant messaging, voice over IP or video conferencing via your computer 0 2 2 5 -13
OC3 Faster loan application process…work in real time online with a loan officer 0 0 -8 12 -8
OC4 Our bank's customer service reps will help you browse and use our online banking services -1 0 -6 10 -10
OC2 Use our online tool to find and schedule at your convenience an online working session with an expert such as investment broker, insurance agent, and/or loan officer -3 1 -11 6 -12
ON3 We will answer all your requests in 'real time' by email, instant or text messaging 1 7 -11 3 -1
ON4 We offer 'On demand' status reports for services requests (e.g., loan application) delivered to you via e-mail, text or instant messaging
1 6 -4 -3 0ON2 No more paper mail... We will send you statements and images of
transactions securely by email -2 5 -17 -5 2ON1 We allow you to pay bills securely using your mobile devices (cell
phone, PDA, Blackberry, etc.) -4 2 -13 -9 -2
BR3 We offer a bank-issued smart card so we can recognize you entering the branch and process your needs faster 4 2 6 -3 13
BR4 Choose a secure eye or finger security scan to identify you immediately in-branch and at ATM 4 3 10 -1 3
BR2 We have the most secure biometric system that identifies you as you enter the branch so we can process your needs faster 2 -1 8 -5 6
BR1 We will recognize our customer's mobile phone signal when entering a branch so we can recommend appropriate bank products, promotions and special services -4 -3 -6 -11 2
Online Collaborative
Online Other
In-Branch Recognition
No more paper mail – we will send you copies of statements by secure e-mail
Securely manage your account by PDA, Internet of automated telephone
Our banks customer services reps will help browse & use our on-line services
Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it
No more paper mail – we will send you copies of statements by secure e-mail
Securely manage your account by PDA, Internet of automated telephone
Our banks customer services reps will help browse & use our on-line services
Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it
MARKET SEGMENTATION TYPING ENGINE
MARKETING PHRASES
S
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Let’s follow the four steps and see what emerges
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Step 1 – Granular, person-by-person information, for one food or beverage
Experimental analysis of design/or/selling messages for a new product:
Chocolate Product
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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How it’s done
» Create elements – simple stand-alone phrase of different typesFeaturesBenefits
» Mix/match into vignettes or concepts & testAmong consumers
» Identify ‘what works’For total panelFor conventional groups (e.g., users of… genders..ages..)
» Create new ‘mind-set segments’Where the ‘gold is’
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Example of a test concept that a respondent sees and rates
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
What data look like
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Key takeaways..so far
»Learn what product to put in the package ..please the customer
»What to put on the package ..grab the customer
»What to show in an ad .. remind the customer
»Still low price, low involvement products
»Homo economicus – commercializing science
»Let’s get more focused, and move from simple science to applied science to industrial grade scale-up of our knowledge
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Step 2 – Discover how the world really works – segments of the mind
Making more money by pinpoint targeting
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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So..our exercise takes us beyond heterogeneous minds to homogenous, ADDRESSABLE minds
»Traditional Segmentation:
- Identify segments in database by behaviors, psycho-demographics - Create marketing pieces … send …hope they buy - These segments may seem homogenous -- but minds are not - These segments have minds that are HETEROGENEOUS
»Response Based, Mind-Set Segmentation - Expose customers to message vignettes by Experimental Design - Identify profoundly different mind-sets that pervade the customer base - Type a customer into a mind-set using ‘scratch test’ + data mining - For a person ….RIGHT MESSAGE, RIGHT EXPERIENCE
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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What wins … Mindset Segment 1 – ‘Health seekers’
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Step 3 – Find these segments and message to them directly
Find these addressable segments among current & prospective customers
Using efficient methods…relevant to the particular product
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Today’s tradition -- data mining Product marketing by so-called ‘family history’
» Tell meAbout yourselfAbout your life style and your valuesWhat you look for in shopping, in foods
» And I’ll tell youHow you will respond to different productsWhat will appeal to you in products, in packages, in ads
» Is this real?Hardly .. Especially for new productsJust not sufficiently specific, granular, cost effectiveNot appropriate for low cost items with low involvement
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Data-mining (~ retrospective) often used to assign people to segments …
Node 1 Node -1 Class = 2
Node 2 Node 3
Node -2 Class = 1
Node 4
Node -3 Class = 1
Node -4 Class = 2
Node 5 Node -5 Class = 2
Node 6 Node 7
Node -6 Class = 2
Node -7 Class = 1
Node 8 Node -8 Class = 1
Node 9 Node -9 Class = 2
Node 10 Node -10 Class = 1
Node 11
Node 12
Node -11 Class = 1
Node -12 Class = 2
Node -13 Class = 2
Yes
No
Yes
No
Yes
No Yes
No
Yes
No
Yes
No Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
successful
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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How about directly Mind-Typing the customer ..interventionAssign customers to segment by interactive SCRATCH TEST
» Do once for each prospect or customer Either in-person, on-line, via phone or data base mining 45 second scratch test to determine the DNA of customer mind
» Objective –what messaging ‘triggers’ customer Use in conjunction with the database just established If you know segment membership (mental DNA). then you know
what to say, what experience to provide … for that segment
The effort sequences the genome of the customer mind The person becomes an ADDRESSABLE MIND™
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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The 45 second ‘scratch test’ to mind-type a customerEither upon meeting the prospect … or by internet
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HOW LIKELY ARE YOU TO BUY THIS
6
3
2
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Calms you down…just what you need when you're feeling stressed
As part of a low fat, low cholesterol diet,chocolate reduce risk of some forms of cancer
S
The delicious classic – pure milk chocolate
With the same antioxidant action as a cup of green tea
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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EXAMPLE OF iPHONE FOR REAL TIME CUSTOMER TYPING 1 of 2
Customer answers these four questions
Calms you down…just what you need when you're feeling stressed
HOW LIKELY ARE YOU TO BUY THIS
The Delicious classic … pure milk chocolate
As part of a low fat, low cholesterol diet, chocolate reduces the risk of some cancers
With the same antioxidant action as a cupOf green tea
HOW LIKELY ARE YOU TO BUY THIS
HOW LIKELY ARE YOU TO BUY THIS HOW LIKELY ARE YOU TO BUY THIS
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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EXAMPLE OF iPHONE FOR REAL TIME CUSTOMER TYPING 2 of 2
IdeaMap Prompts Staff With Exact Words To Use For The Appropriate Addressable Mind Segment
Segment 4: Classic & Prevention Seeker
- With the same antioxidant action as a cup of green tea
- Builds and maintains strong bones
- The delicious classic…pure milk chocolate
- Calms you down…just what you need when feeling stressed
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Step 4 – Ramp up to industrial strength
Type prospects on MANY foods and beverages in a store loyalty program.. ahead of time
Find these addressable segments among current and prospective customers
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Why not do this mind typing on many foods
» We focused on one food item – chocolateCreated a knowledge database Identified what ‘works’ – EMPIRICALLYDiscovered mind-set segments – for the particular product, TODAYTyped a prospect and say the right thingOr even used it for innovation – targeted to a mind set
» How about doing typing on an ‘industrial strength’ level ahead of time
Say 20-30 knowledge bases for foods, beverages Some dealing with productSome dealing with nature/style of eating situationThen type people ‘en masse’ – across all these knowledge bases
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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‘Industrial-strength’ Mind-Typing tool – showing 6 screensEach person in a database fills this form out, with 25-30 screens at start of year, or when joining loyalty program
Product =
Text element #1
Text element #2
Text element #3
Rate each phrase for on the 1-9 scale1=not at all interested …9=extremely interested
Product =
Text element #1
Text element #2
Text element #3
Rate each phrase for on the 1-9 scale1=not at all interested …9=extremely interested
Product =
Text element #1
Text element #2
Text element #3
Rate each phrase for on the 1-9 scale1=not at all interested …9=extremely interested
Product =
Text element #1
Text element #2
Text element #3
Rate each phrase for on the 1-9 scale1=not at all interested …9=extremely interested
Product =
Text element #1
Text element #2
Text element #3
Rate each phrase for on the 1-9 scale1=not at all interested …9=extremely interested
Product =
Text element #1
Text element #2
Text element #3
Rate each phrase for on the 1-9 scale1=not at all interested …9=extremely interested
H
Chocolate Vegetables
Fast food Experience
Dairy Bev
Meat Red wine
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Two ‘game-changing’ applications
» When engaging a prospect who is in your loyalty program..in any form (personal, by mail, by ATM)
All you need to know is address, gender, age..NOTHING MOREGo to database, identify address, look up mental DNA for the 30 or
so product areas..YOUR SHOPPER’S MENTAL GENOMEGo to Knowledge Warehouse developed above Identify ‘what works specifically for this genome
» In the store of today/tomorrow..digital signageCustomer’s mental genome for products embedded in RFID tag Change the digital signage to accord with the genomeCreate a Segment of 1 … with a new ‘personal touch’
HS
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Wrapping up
Think ROI
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Peeking in on the day after tomorrowWhat is the real value of databases with Addressable Minds?
» For 300-500 people who allow you to create each database…. How each group of 300-500 profiles on a topic area
..food/beverage/eating situationSegment membership, what to say to them It is RESEARCH… academic and knowledge building
» But what happens when the YOU KNOW the mental GENOME (as well as age, gender, etc.) for 25-30 products for EACH CUSTOMER IN YOUR LOYALTY PROGRAM!!!
200,000 people addressable by snail mail / email / cell2,000,000 people, or 20,000,000 people It is Enhanced Direct Sales & Marketing, selling to Mind
Sets ..your Addressable Minds™
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Database approach widely applied in consumer goods & manufacturing ..to DESIGN the ‘what’Now being applied to advertising & direct marketing to SELL the ‘what
SH
What exactly do you say - how do you say it - and to whom ?© 2008 i-Novation, Inc.
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Moskowitz Jacobs Inc.
1025 Westchester Avenue
White Plains, New York 10604
Howard R. MoskowitzPresident
Moskowitz Jacobs Inc. Phone: +1-914-421-7408Email: [email protected]
www.mji-designlab.comwww.ideamap.net
www.SellingBlueElephants.com
Thank you … Questions?