case study

Knowing Your Customers: A Market Research Case Study

 Several organizations I have worked with over the years claim to know their clients inside and out, but is that really the case?

Many of them often tell me they know how their clients perceive them because they explicitly ask for their opinion. However, I would argue that much like we rarely tell the waiter/waitress that we don’t like our meals, our clients are unlikely to tell us the truth unless there is a real issue. However, if third-party sources ask the same question to your clients, your clients are more likely to tell the truth. This fact alone is why unbiased market research is a crucial step in any marketing strategy.

In this blog, I’d like to share with you a case study that perfectly illustrates the importance of market research and how it helped them better define who they are to their customers.

Overview

Our client, a mid-sized educational toy distributor in Toronto, wanted to conduct research to identify their customers, the views they have of their brand, and the values they tie to the brand and its products. Specifically, they wanted to determine if there was a difference in buying behaviours between the company’s two key markets, establish any product leakage, and validate their brand recognition in the marketplace.

 Conducting the Research

Based on the client’s goals for this research project, we determined both qualitative and quantitative research was needed in order to receive the answers we were looking for.

First, we started by conducting preliminary qualitative research. Qualitative Research is the process of talking to someone through open-ended questions about a particular subject to gain insights into their thoughts and opinions. This can be done through a conversation, phone call, or focus group.

To complete this research, we conducted eight discussion guide-driven phone calls with a targeted cross-section of buyers within our client’s target audience.

With the results of the pre-field research, we crafted a highly customized survey that allowed for each audience to only see questions specifically directed at them. We further segmented the questionnaire by programming it based on the role of the individual by type of organization and then by responsibility. This type of research, called Quantitative Research, allows us to track data with closed-ended questions and more numerical information.

Findings

After analyzing the gathered information, we were able to provide our client with an in-depth analysis of their customers. The key findings indicated that their customers with the most purchasing power in their target audience reported the least amount of brand exposure. It also clearly identified that their brand was very well known in one of their key target markets and less known in the other, and lastly, their catalogue is highly utilized and highly regarded. 

Next Steps

Once the deeper analysis was complete and revealed more about their customers’ buying behaviours, preferences for price vs. product quality, and delivery times, our client was able to develop a marketing strategy for 2017 that was truly in line with their customers’ needs and wants.

Market research is a crucial step in your marketing strategy. It provides you with insights you would not be able to get by just asking your customers yourself. Market research helps you get to know your customers better, and what is more valuable than that?

Case Study: How a customer analysis saved thousands for a B2B client

consumer-analysisLooking for the “wow” factor in your business is not always about what you want your company to be for your customers, but very often, it is more about what your customers value about your company. As a first step to creating powerful strategic marketing plans, we always recommend market research to our clients. Market research, specifically customer analysis, is the most powerful tool marketers have for really finding out first hand exactly what your customers value and why they choose you over your competitors.

Many companies want this business intelligence and feel they can “do it themselves” with an email survey or direct mail piece. Well, with almost 20 years in the business, I can tell you that research obtained by “doing it yourself” is truly invalid research. Research needs to be conducted by an unbiased third party who can listen and respond without prejudice or emotion.

I’d like to share with you the big wow factor that came as a result of the research we conducted as the first leg in a strategic marketing project. We’ll call this company ABC Consulting. Prior to our engagement, they were about to “press the button” on several online marketing tactics including investing heavily in a new website with interactive capabilities and launching into social media networking sites. We convinced the client to “hold off” on implementing these tactics until after we conducted a competitive analysis and customer analysis. They took our recommendation and decided to hold off and are eternally thankful that they did. It is true, as with most qualitative research, that the truth lies in asking the “right” questions and so we personally spoke to our client’s customers, asking them a host of custom questions to determine not only what they value in the service they are receiving, but how they feel what they are getting differs from other competitors.

There was not one customer we spoke to that values online communication, stating that they never visit ABC Consulting’s website, and have no need for social media. What do they value? Personal calls, face-to-face meetings, etc. The result of this research is a 180 degree shift from what our client had determined was what their customers’ wanted. As I have said in many of my blogs holds particularly true here: no tactics before you understand who your audience is, and what they value. If our client had executed their online tactics, what type of success do you think they would have had? My guess is none, as their customers never visit their website and new customers search for this service in other ways, but not online.

The research revealed many values, behaviours, wants and needs of ABC Consulting’s customers and competitors, but none stronger than a 180 degree shift in thinking!

With this research in hand we are now able to develop a targeted and strategic plan, rooted in solid research, and our client will save the thousands of dollars they were about to spend on the wrong tactics: tactics that were rooted in guess work and marketing pressure to conform.

My take-away for all business owners is to take the time to get to really know your customers, NOT through your own personal dealings but through someone else’s eyes and the result could be a game changer!

When was the last time your company conducted third party qualitative research? Do you think you need to conduct research before you execute a new marketing initiative? Are you willing to try new tactics without knowing what your customers value? I look forward to you sharing your thoughts in our comment section.

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Case Study: Scotiabank’s Social Media Strategy

Screen Shot 2014-10-14 at 9.47.25 AMCMOs and business owners are always asking to validate not only the effectiveness of social media, but also the necessity of having a social media strategy. This week I wanted to highlight an unlikely social media channel and how it has been able to target and grow its engagement amongst its key audience.

Enter Scotiabank. Its recent success with their social media strategy using Instagram has helped them specifically target university-aged students 18-24, an audience often touted as the most difficult demographic to engage.

Instagram is often thought of as the photosharing app used for family and friends only, but things are changing for business applications as Instagram now boasts 15 times more engagement than Facebook, Twitter or Google+. What was once a simple photosharing app is now being used as a key sales channel.

In the world of social media, Instagram is relatively new and as an emerging channel, it enjoys the same cache with younger Canadians that Facebook enjoyed several years ago.

With this in mind, Scotiabank, in a strategic yet bold move, launched its Instagram channel in 2013 and has garnered 897 followers to date and is still growing. The channel is unique in that is allows for the ability to tailor content to any kind of youth-oriented theme.

The decision to use this channel was based on the need to use a relevant and extremely flexible platform to reach their target audience. Scotiabank feels their decision really gives them a lot of opportunity in terms of their messaging and making their brand unique by being on the forefront of providing content in a medium that is relevant to them.

The ultimate flexibility of this channel allowed Scotiabank’s Instagram channel “Scotia_gram”, to introduce a series of “life hacks” for students headed back to school. They included tips such as storing necklaces in straws to avoid tangling, and using an old cardboard box to create a shirt folder.

As a result, “likes” for Scotia_gram’s posts have increased just over 99%, and comments have jumped 22.3% since the “life hacks” were first introduced. The account has also gained just under 300 new followers in the same period.

This case study is a great example of how sometimes we need to think a little bit “outside the box” in terms of choosing channels to deliver our strategy to specifically target our audience.

After reading this case study would you consider using Instagram for your business, and if so, how? Do you feel Scotiabank is on to something here, or would another social media channel have been equally successful for their strategy?