qualitative research in segmentation
DESCRIPTION
To segment effectively, you need to understand what drives the segments, not just how to measure them. That's where qualitative insight comes in. Please credit the author if you use the material. Some images are subject to copyright.TRANSCRIPT
Qualitative
Why you need it & how to get value
Presented by: Susan AbbottAbbott Research & Consultingwww.abbottresearch.com
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Wouldn’t you love a business like this?
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1% of owners buy pet health insurance
Why do only 1% buy insurance?
Was this market lying dormant for decades? Or did something change?
An estimated 1,300 companies, including Viacom, Ford Motor Co. offer pet insurance to their employees.
STARTRIBUNE.COM | 9.11.06
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Is Curves Right for Me?
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How do you get this without qualitative?
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Standard Chartered Segmentation
Developing Loyals I
Share of customers 9%
Share of profits 44%
Highest asset balance across segments
25% of segment has high bank assets
Liabilities low
Developing Loyals I
Share of customers 9%
Share of profits 44%
Highest asset balance across segments
25% of segment has high bank assets
Liabilities low
Now
what?
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What are your goals?
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Where are we going?
1. When to use
2. Designing the study: scope parameters
3. Interpreting and using the insights
4. Emerging trends in qualitative
5. Hybrid quali-quant research techniques
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When to use: before you design a model
Develop hypotheses A priori segmentation ideas Formulate ideas about how you would use segmentation based on understanding of
customers
Get organized to build model
Deepen Learning
Build Model
Use
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When to use: after you build the model
To understand each segment better Test different communication strategies with segments Feedback on concepts from segments All your research should incorporate segment knowledge
Get organized to build model
Deepen Learning
Build Model
Use
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When to use: during ??
Recruit respondents from the quantitative survey You may now know what segment they are in Instantly have a group for follow-up qualitative research
Get organized to build model
Deepen Learning
Build Model
Use
Designing the Study
Scope & Parameters
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Who do you want to talk to?
Be exact Customers or non-customers? Users or
non-users? Recent experience Widest possible profile
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Scope: Cost vs. Payoff
What is the total investment in the segmentation project?
10:1 rule of thumb
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Quali-Quant Methods
Adding quantitative data gathering to a qualitative method Good idea when you can’t get a large sample
E.g. CEO interviews – unlikely to get sample of 300
Content analysis methods can be revealing E.g. word cloud diagrams
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How to interpret findings
You are paying for insight, not methodology
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What you want insight about
Language used, metaphors
Usage, context, occasions & sequence
Motivations & desires
Goals & alternative solutions
Problems
Experiences & stories
Influencers
Emotions and feelings
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How to look for patterns
“pattern recognition begins with variation recognition”
Cultural anthropologist Grant McCracken
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Teens and technology project
First off - I am constantly left on. Sometimes even overnight. She leaves me in her purse all day. It's stuffy in that tiny pocket shared with all of her other items! I feel like my battery is being charged everyother day from all of the use I get. Luckily, I haven't been dropped, scratched thrown or anything else, so I am in top condition. I've seen her other friend's cellphones and I consider myself very lucky.
i got the cell for two reasons one privacy i can't count the number of times my mom picked up the phone when it was for me i'd say "don't pick it up but she would and start trying to have a conversation with them.the second reason is my friends always wants to know where am at so we could get together and chill
Methods
New and emerging
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Interviews & Dyads
In-person or on phone Can add web-meeting for audio-visual Can add web-cam if needed When interaction can hurt the analysis Where group influence is feared Where you need to cover more ground Where they’ll never come to a group
(e.g. lapsed users)
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Focus Groups & Roundtables
When discussion and interaction aids understanding
When you can get people in a room together
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Text Chat: Online Focus Group
Whiteboard
Respond here
The Discussion
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Online Discussion Forum / Bulletin Board
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Ethnography
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Games, customer workshops
Develop hypotheses Develop action plan
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Emerging – Instant Messaging11
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Emerging – Webcam22
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Blogs, communities, virtual worlds
Blogs and electronic journals/diaries Online communities What’s next
Virtual worlds
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Qualitative inside the organization
Facilitated workshop to develop a plan Interviews and focus groups to gather input
from all stakeholders Understand how groups are handling
segments today E.g. relationship strategy, sales strategy
Develop buy-in for new approach
Best Practices
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Collaborate
Bring the researcher in early to assist in scoping and design Particularly important if you do not have in-house research staff
Involve as many company insiders as you can Insight in planning Buy-in to execution Variety of perspectives Watching is more compelling than reading a report Participating is more compelling than watching
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Before, During and After
Plan for when you can get the best use of the qualitative
Get organized to build model
Deepen Learning
Build Model
Use
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Keep researching…
Some things don’t change How our brains are hardwired Our need for sustenance Our desire for safety, security, self-
confidence, etc. How we age How taste-buds work The stages of child development People tend to form some kind of
family or social group
Some things change constantly
How we respond to the culture around us
Our ways of meeting our needs and desires
Our expectations and aspirations Our roles within the social groups and
families
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We are not our customers.
The more you understand your customer segments, the more competitive you can become.
Remember …
Thank you!Questions?
Susan AbbottWeb: www.abbottresearch.comE-mail: [email protected]: www.arc.typepad.com/customercrossroadsPhone: 416-481-7409 or 888-244-0285