Secret: To grow big you need to start going small

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We are living through an era of big: Big Data, big vision, The Big Idea, the next “big” thing. Big budgets go to big campaigns. But I want to pause a moment to make the case for “small.” It’s really important for business leaders and marketers today to think about “small” – small campaigns, small tests, and most importantly, small pockets of growth.

Growth can be hard to find but the truth is that for many business, growth is all around you. It’s just a matter of finding it. Consider this: Averages lie. By that I mean that companies need to adapt to dig more deeply into their data to uncover the rich pockets of growth that standard broad calculations often overlook.

My colleagues recently recommended developing “market maps” as a way to systematically identify where the pockets of growth actually are. This is literally about plotting out where all those growth opportunities are (read A game of inches). They cite a wonderful example of a European consumer goods company that analyzed consumer behaviors, which revealed the company had no presence in almost two-thirds of the attainable marketplace. This insight helped the company to adjust its strategy and develop new products to profitably address those gaps, moves that the company projected would grow revenues by 8 to 14 percent over three to five years.

This insight is based on developing a really clear understanding of how customers see the category and tradeoffs they make when making purchase decisions. This is about going deep into discussions with people about how they really make choices – what motivates them, what influences them, what they really care about. Data is helpful, but this level of insight is based on much more intimate and personal levels of interaction.

That more granular approach is evident in how companies think about penetrating into new countries, which is the standard approach. The truth is that companies should be looking at breaking into cities, which have different opportunity profiles from the country at large. When you look at the fashion industry, for example, Shanghai is as large a market as Poland and Portugal. And cities like Tianjin and Chongqing are among the top 20 fastest growing cities for women’s apparel.

This “small” approach even applies to how you connect with customers too. Sometimes it’s the small things you do that matter the most – like when the Soho Grand Hotel offers a guest a pet goldfish.

Yes, you need some big systems to make this work but you really have to think small. Here’s a question every business leader should ask him/herself when embarking on a project: How can I make this smaller?

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The Bargain That Is WhatsApp & 4 More Stories You Need To Know Today

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SUCH A DEAL! — There’s been no shortage of opinions on what Facebook paid for WhatsApp, ranging from “I don’t get it” to “You don’t get it.” But the only opinion that matters has now weighed in, and, in his view, WhatsApp was cheap. “I just think that by itself it’s worth more than $19 billion,” Facebook CEO Mark Zuckerberg proclaimed Monday at Mobile World Congress in Barcelona. “The reality is there are very few services that reach a billion people in the world.” The reality is that WhatApp isn’t one of them — it has around 465 million users. But Zuck thinks it can be a billion-member platform, and, again, that’s all that matters.

 

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DIMON IN THE ROUGH — The Financial Times (subscription required) reports that JP Morgan Chase is set to fire “several thousand” more employees, above and beyond a recently announced round of up to 15,000 job cuts. The reason, per the FT: Better tech at branches and plummeting mortgage applications. Official word may come as early as today, when CEO Jamie Dimon speaks at bank’s annual Investor Day, his first address to shareholders since the bank’s record $13 billion settlement with the Feds over allegations of mortgage chicanery. The bank employs more than 250,000 people.

 

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HI, FIVE — The Samsung 5 got a nice enough reception from the tech press, which tossed around words like “refined” and “elegant.” Samsung’s newest flagship smartphone boasts some welcome features, like water resistance, fingerprint sensing, a built-in heart rate monitor, pedometer and fitness tracker. But the low-key kudos award goes to BGR Executive Editor Zach Epstein, who Tweeted: “Galaxy S5 is a nice iteration. Good job focusing on refinement vs feature spam but no BUY ME features.” Let’s hope, for Samsung’s sake, that’s not literally true. The S5 will be available in 150 countries on April 11.

 

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BAD DAY FOR BITCOIN — The virtual currency that’s beginning to attract mainstream attention is facing an “existential crisis” after a leaked document, allegedly from one of the companies which act like banks for the crypto-currency, reveals it was hacked for years. Missing from the Bitcoin exchange in question, Mt. Gox, are a total of 744,408 coins worth some $350 millionBitcoin lost 17% in value in the 24 hours after the revelation, but has since stabilized (to the extent Bitcoin ever does). Mt. Gox was once the biggestBitcoin exchanges and been offline since late Monday. Six other big exchanges — Coinbase, Kraken, Bitstamp, BTC China, Blockchain and Circle — sought to isolate the problem: “This tragic violation of the trust of users of Mt. Gox was the result of one company’s actions and does not reflect the resilience or value of bitcoin and the digital currency industry. As with any new industry, there are certain bad actors that need to be weeded out, and that is what we’re seeing today.”

 

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ELEVATOR PITCH — In what should come as surprise to nobody — seriously, people — the person behind @GSElevator isn’t a Goldman Sachs employee sharing OH 1% disdain for the rest of us. The New York Times‘ Andrew Ross Sorkin blew the lid off this three-year-old prank “after several weeks of reporting,” outing the Tweeter as John Lefevre. The Texas-based bond executive didn’t actually hear anyone at Goldman Sachs (New York/London/Hong Kong, not Texas) say things like: “I never give money to homeless people. I can’t reward failure in good conscience.” He tells Sorkin his parody was aimed broadly at Wall Street, not Goldman Sachs per se. The Wall Street brokerage was circumspect, telling the Times: “We are pleased to report that the official ban on talking in elevators will be lifted effective immediately.” Lefevre’s last Tweet was Feb. 15, leaving his 628,000 followers in the lurch for tone-deaf white shoe firm humor. Worry not! Lefevre has a book deal. Of course.

 

 

Top Video Ads and Brands making most of the Noise !!

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Which brands managed to take the most advantage of the burgeoning online video advertising space this year? A pair of new reports reveal the big winners this year: YouTube unveils this year’s Ads Leaderboard, while Unruly reveals the brands that scored the most shares of their ads. YouTube, recently forecast by eMarketer to generate $5.6 billion in ad revenues this year, puts Evian’s “baby & me” at the top of its leaderboard, which factors in paid views, organic views and audience retention when determining its rankings. Samsung, meanwhile, tops Unruly’s list.

The YouTube Ads Leaderboard tracks the most-viewed ads rather than branded content, measuring both paid and organic views. With more than 66 million views as of December 2, the Evian ad stood a significant distance from the second-placed ad, Dove’s “Real Beauty Sketches” (59.6 million) which also happened to be the most shared video ad of the year, according to Unruly.

The other ads making the leaderboard were (all view counts as of December 2):

Internet Explorer’s “Child of the 90s” (47.9 million);
Pepsi Max’s “Test Drive” (39.6 million);
PooPourri.com’s “Girls Don’t Poop” (20 million);
Kmart’s “Ship My Pants” (20 million);
GEICO’s “Hump Day” (18.6 million);
Ram Trucks’ “Farmer” (16.6 million);
Volkswagen’s “Get Happy” (14.7 million); and
Audi’s “Prom” (10.7 million).
Not too surprisingly, 6 of those ads landed on Unruly’s chart of the most-shared ads of the year. One more might have made it if not for a later launch: Volvo Trucks’ “The Epic Split feat. Van Damme” took the 6th spot in YouTube’s top 10 trending videos of the year. It joined 2 other branded videos to make the list: Evian’s commercial and the Carrie promotion “Telekinetic Coffee Shop Surprise” were the others.

Top Social Video Brands of the Year

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Several of the above-mentioned ads were so successful that they drove the advertisers into an Unruly’s list of most-shared social video brands, which showed significant turnover from last year’s list.

Based on the number of video shares tracked between January 1st and November 18th, Unruly reveals that the top 10 brands were:

Samsung, with 7.3 million shares;
GEICO, with 4.93 million;
Dove, with 4.52 million;
Pepsi, with 4.02 million;
Budweiser, with 3.86 million;
Red Bull, with 3.75 million;
Evian, with 3.71 million;
Kmart, with 3.4 million;
Cornetto, with 3.39 million; and
EA, with 3.39 million.
Last year’s top viral video brand, Google, failed to make the list this year, coming in 12th. Unruly also notes that Nike, TNT Benelux, DC Shoes, P&G, Abercrombie & Fitch and Volkswagen also couldn’t repeat their successes from last year to make it into the top 10. The fairly high turnover from last year suggests that making the list is dependent on the virality of a limited number of ads: 6 of this year’s top 10 brands had a video ad make Unruly’s list of most-shared ads.

Opportunities and Threats in a Brave New Market Research World

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Much is written about how much Research has changed over the past few years – mobile is the latest big thing, social media is hovering in the background to be trawled for insights, ethnography is making a comeback, online qual. is proving extremely popular thanks to the speed and ease with which selected consumers can give their opinions on a whole range of subjects. Behavioural Economics has pointed out with much fanfare what qualitative researchers have always known – that context, social influence and emotions play a huge role in influencing what we say and do.

It’s exciting times, and from a Client perspective almost bewildering – the array of options from which to choose from is expanding rapidly, and the new normal seems to be that any one insights challenge requires a mixed methodology approach, using online, offline, qual and quant. We encircle our subject with an ever better (we hope) sense of what’s really going on – making Research an even more powerful tool.

So why the ongoing sense of Angst – that Research is threatened? Shouldn’t we be relishing change as an opportunity to become more influential with an upgraded toolkit?

My sense is it’s actually change per se, that is making many of us feel uncomfortable – margin-destroying, pervasive, ongoing. Low-cost technology software is putting MR tools into the hands of the potentially inexperienced. Our professional status is challenged; our sense of relative immunity to the ups and downs of economic cycles shattered; some of our assumptions on how best to model human behaviour are being shown to be wrong. It’s how we react to this change that will determine whether we will emerge strengthened or elbowed aside in a wave of MR disruption.

Here’s my take on the opportunities and threats.

Opportunities:

Data Experts = Insights Experts
Companies are exposed to ever more information, but we still live in a world short on real insights. This is a huge opportunity for Market Researchers: to widen the scope of our mandate – take on sales data, market data, financial data, feedback from Customer Service, sales force reports, and mine them appropriately for a given business question.

Nearer the Action
The traditional structure of a Research programme was invariably quant. survey plus groups/depths – solid, but hardly spicy and often regarded as costly and slow by Marketing people inspired by the speed with which their Internet Marketing analytics were available. All that has changed with a MR powered by technology which can now deliver data (not necessarily insights) in days not weeks, and where the visualisation of evidence produced by Smartphones gets us really up-close and personal.

This ability to be on-the pace pushes market research nearer to decision making – and helps ensure we are an ongoing and valued member of the marketing team.

New MR = Creative and Strategic
Market Research increasingly plays a strategic role in new product development: we are tasked with unearthing unmet needs, leading ideation projects; we often take the lead in multi-functional task forces made up of R&D, marketing and sales personnel.

This is a radically new position: we’re forced to develop hypotheses, not just evaluate them, to be pro-active, engage in lateral thinking, and step out of our analytical comfort zone. Get this right and you automatically upgrade the value of the MR effort.

Threats

Role-Usurption
Market Researchers used to be data-guardians, people respected for their in-depth knowledge of categories and brands, often gained over decades. The power associated with this knowledge primacy has effectively been exploded – data often bypasses the MR department; Marketing people with good business degrees often have a good grasp of how to use Excel, perform simple regression analyses, certainly track data, and establish benchmarks. The black box, if you like, has been replaced by Pandora’s box.

This data-freedom means Researchers need to work harder to be recognised and valued as the true go-to people when it comes to insights.

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“D. I. B.” (Do it Badly) Research
Low-cost, easy-to-use survey software effectively allows anyone with a database to do their own research – social media scraping (netnography at its best) is equally a field open to those with the time and inclination. The DIY trend is unquantified, often under-discussed, but a strong one in MR, driven by cost and speed – unstoppable forces, but with a downside: the lack of understanding of what makes good research, and what dangers and biases are involved in the whole Research process. I recently heard the phrase “Do-It -Together” at an Esomar Conference – which nicely encapsulates one way of addressing the danger of botched DIY Market Research, by collaborating and offering training, expertise.

Volume not Value Growth
The biggest single pressure I see on MR of the future is on budgets – either flat, decreasing, or simply not capturing a larger slice of the Marketing pot. More needs to be done with less, effectively – and once Marketing people have discovered the benefits of using a proprietary panel – radically reducing the per-survey cost – the floodgates can and do open.

This can lead to MR departments being bombarded with Survey requests, with less and less time available to evaluate the results. Larger Client side MR departments can split roles into more senior “strategic evaluators” roles and more junior “data-providers”, but for many smaller companies this isn’t an option.

Outlook

In summary, Research has a broader and arguably superior toolkit than say 5 years ago – we can get closer and closer to an authentic sense of what is driving choice, be it habit, social influence, visceral states or impulse. We have reason to be optimistic, but the hope that methodologies will on their own actually make a massive difference may be naive.

The most pressing challenge for Market Research in future is in my view actually using all the methodological innovations for superior business impact.

The most amazing tools aren’t much use in the hands of mediocre craftsmen, and vice versa: brilliant skills can create much out of nothing. It’s here ,at the coal-face of MR – the area of ROI and impact – that we actually need to see the needle move. I hope that we can look back in 5 years time and say that all our improved insights actually made a bigger difference, and that we captured the recognition for the additional value we bring to the party