By Rebecca Heaney
Congress Day 0: The Future of Market Research
Although not technically the first day of Congress, Sunday offered the opportunity for ESOMAR Congress delegates to attend workshops on a variety of topics that served as an excellent introduction to Congress, starting the week off strong with intriguing, thought-provoking, and challenging topics that face the market research industry today. At first glance, the two sessions I attended titled “The Impact of Social Research”, hosted by Gunilla Broadbent (President of the ESOMAR Foundation) and Phyllis Macfarlane (from Gfk and ESOMAR Foundation Treasurer), and “The Future of Mobile Survey Research”, presented by Roddy Knowles and Luke Sehmer from Research Now, seemed to have little in common. However, the messages of both sessions were largely concerned with the future of market research and both concluded with a compelling reminder to always keep human beings – people, not respondents, data, dollars, or numbers – in mind in the research we do.
The Need to Improve
“The Impact of Social Research” session is premised on the understanding that, as market research professionals and human beings, we have a moral obligation to use our skills and expertise to give back to those who are less fortunate, particularly in developing markets. There is widespread agreement that the market research industry has a lot to offer in the “making the world a better place” space and while there are many in in the industry who are making a difference in a number of different ways, there is clearly much more that we can do.
On a completely different topic, a compelling argument for moving toward fully mobile optimized online surveys was made by Ruddy Knowles and Luke Sehmer, with statistics showing that 40% of respondents in the US are completing surveys on mobile devices (a finding that is mirrored in other countries beyond the US) and research showing that those who prefer to complete surveys on mobile devices rather than personal computers are different in terms of attitudes as well as demographics. However, while it is common knowledge in market research circles that an increasing number of individuals want to complete surveys on their mobile devices, the amount of truly mobile-friendly surveys (in terms of thoughtful questionnaire design, not just technological capabilities) really hasn’t increased much in the past few years.
In both cases, there is widespread agreement – there is no one on the other side of the issue. We all know we should do more to give back and make a positive difference in the world and, on a slightly less solemn note, make it easier for people to do surveys on their smartphones. So why don’t we?
The Need for Change
In the discussion of social research, the tension between what we, as market researchers want to do and what we, as service providers, are hired to do is noted as a common barrier to doing more. Particularly for NGO’s, donors tend to be results-focused, pushing for “hard numbers” rather than “softer outcomes”, and often drive the agenda for how dollars are spent. With so much pressure to get the greatest return on investment, market research plays a more limited role, often restricted to program evaluation, and many feel that it is brought in too late in the game to make a real difference. Many want to market research brought in earlier, in the design or pre-design stages, to help understand they “whys” and be part of the innovation cycle. However, market research costs money, and many donors aren’t interested in spending more on research. If we want to be able to do more to help in the public sector, educating and persuading donors and stakeholders about the value of research is a critical first step. In this case, it is not only the behaviour of the people we are studying that we are hoping to change, it is the thinking and behaviour of those we work with that we also seek to alter.
In the case of mobile survey research, the greatest barrier to change is ourselves. Technology has advanced fast enough to keep up with the demand for mobile access, but the way we think about survey design has not. We, as researchers, have become entrenched in traditional questionnaire design and are failing to adapt to the new ways that people want to interact with us. Knowles and Sehmer argue that we need revamp our thinking, start from the beginning, and consider what it’s like to complete surveys as a respondent – as a person. How would we answer the survey? How would we want to be asked the questions? How would we want to answer them? How can we speak to people like people? Knowles and Sehmer argue for using “humanized writing”, with the goal of making surveys more conversational in nature.
The Need to be “Human-Focused”
For me, the two sessions combined can be boiled down to the idea that market research, at its heart, is all about people. It’s about human beings. Whether our goal is to increase patient compliance or increase response rates, it’s about the human experience and giving people a voice. Sally Panayiotou (TNS BMRB) captured this sentiment when she said “the most important step is bringing it back to the people” but I think Knowles said it best in his closing statement, “the future of market research depends on a ‘human-first’ (and ‘mobile-first’) approach – we have to design research (and mobile) with people in mind.” While it may be challenging, it’s important not to lose sight of what research is for.
Rebecca Heaney, Northstar Research, is one of the official RWC bloggers for ESOMAR Congress 2016.
Jerry Wind is a marketing veteran who has seen it all before. He tells Jo Bowman that the ad world ain’t seen nothing yet.
To make predictions about how much the world might change by 2020 seems somewhat risky; it’s far enough away to be pretty tough to call correctly, yet not so far out that when the time comes, everyone will remember what you said.
Jerry Wind, Lauder Professor and Professor of Marketing at The Wharton School at the University of Pennsylvania, has been gathering views from thought leaders and innovators from around the world about what advertising could or should look like in 2020. The result is his latest book Beyond Advertising and it’s grim reading for anyone planning on making small, gradual adjustments to their current strategy.
What’s driving change, Wind says, is not just the obvious big shift – technology – but a confluence of major forces that he says is up-ending the old mechanics of advertising and the balance of power on which it was based. The old world of advertising, he says, is defunct, or at the very least, a good way to waste a lot of money.
Technology is bringing “truly revolutionary dramatic changes”, and the connectedness of people, homes, cars and devices is an enormous shift for businesses and brands – one that can potentially work in companies’ favour. Mobile and social media are generating data streams that enable brands to know what a consumer is doing, where they are, who they are with and even what kind of mood they’re likely to be in. But at the same time, consumers are growing increasingly skeptical of the business world and its advertising claims.
Demographic changes around the world mean the gap between the haves and the have-nots is widening in many markets, and these shifts are leading to entirely new ways of working – new business models and new revenue models.
“If you look at all of these forces of change, and their interdependency, and you look at the magnitude and speed of change, you realise that you can’t just keep doing what you’ve (always) been doing,” Wind says. He points out that huge change – over a longer period of time, perhaps – has proved this point before. Only 12% of the Fortune 500 companies of 1965 are still in that top 500. To look at it another way, 88% of businesses that once dominated the world have vanished into obscurity.
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By the ESOMAR USA Representatives
Although North America was unable to retain fastest growing market for research for a second year running, the overall market size has increased by almost 20% according to the latest ESOMAR Global Market Research report. But, while the overall market growth figure may have implied a slowing down, the market measure has expanded to include two additional new sectors, giving the region a net growth of 0.5%. Following on from this we asked the ESOMAR representatives in the US about the challenges, opportunities and trends in their market.
Did someone say mobile? Again?
As this series of articles continue, having looked at the LATAM, APAC an MENAP regions, we do indeed see the same patterns emerging, even more so in a developed market such as the United States. It’s of course, the conversation about mobile and internet penetration rearing its head again. Jackie Lorch, Vice President, Global Knowledge Management, SSI USA, comments, “With online penetration approaching 90%, online is the go-to data collection methodology, and don’t even think about fielding a questionnaire that can’t be completed on a mobile phone.” Yet, although this knowledge is commonplace, it doesn’t mean the industry has caught up yet. With US smartphone penetration near 60%, survey participants are increasingly choosing to take surveys on mobile devices. Lorch observes, “The industry has not made it a priority to put participants first and design mobile-friendly questionnaires. Likewise mobile in-the-moment research presents wonderful opportunities to interact at the moment of decision-making with video or image capture. Yet we have largely failed to engage.”
This sentiment is echoed by Melanie Courtright, EVP, Products and Client Services, Research Now. “The biggest challenge is learning how to evolve for mobile devices — the questionnaires themselves have to change, and we are really struggling with moving fast enough in America.” Although the market research world might be lagging behind, there are big opportunities here, comments Courtright, “Biggest opportunity is in automation of basic research types so that through standardization we can integrate other forms of data better and spend more time on interpretation and make decisions more quickly.”
While the rest of the world might have an inbuilt stereotype of Americans (can anyone blame them, Donald Trump anyone?) – it couldn’t be further from the truth. Lorch comments, “Most of the stereotypes you have heard about America are exaggerations. Most Americans enjoy foods other than burgers, fries and buckets of cola and many are well-informed about and interested in other countries in the world!” Indeed, Courtright observes, “The US is very diverse, both in business and with consumers. It’s like many small countries grouped together, so to try and approach it as one market is not possible.”
The US shouldn’t be treated as one country – this is a population of almost 319 million people, spanning across more than 9 million km. That’s a lot of people, can we really expect them to have the same thoughts and opinions? Lorch expands on this further, “Different geographies, attitudes and cultures can be found within its borders. You’re likely to find doing business in the fast-paced, intense, “in-your-face” culture of New York City different from the more laid-back, proudly non-conformist, technology-driven Northern California, for example. Street signs you may see along the way help tell the story!”
Very visible in the US, but not just limited to here, is a major new societal trend that will impact research – fragmentation – in almost every aspect of modern life. Lorch notes, “From people’s time and attention, the data sources they use, their digital device habits, to the diversity of their beliefs, lifestyles, attitudes and interests. Institutions in the media, government and communities that used to help define large groups among the population have largely vanished to be replaced by customisation of the individual experience to a massive degree. As society fragments, are our traditional research taxonomies relevant anymore? We still group people by age, by ethnicity, by geography, in ways that haven’t changed for generations. We should instead consider life stages, and new attitudinal groupings as ways to better understand the consumer. This is equally true for B2B research where titles, responsibilities and purchase patterns are changing rapidly and we need to target based on the reality of today’s job functions and responsibilities.”
There are many trends impacting on America, and indeed society at large, none more so than technology. Lorch comments, “The idea of technology as not just enabler, but also driver of our business is a phenomenon noted by Unilever’s Stan Sthanunathan. Technology has made research more efficient, and improved its quality for companies who have invested in it. Now technology is doing more: actively directing where research will be and go in the future. It is taking over many research tasks that humans used to do. The challenge is that powerful technology and the expertise to run it is usually only available to the larger players, so many smaller enterprises need to find a new raison d’etre, or risk being swallowed up.”
Big data and the internet of things will also shape the future of market research, but we first need to get over the problems. “The practical and operational obstacles in the way of getting value from all the data now available are not trivial, yet the potential rewards are massive. If we can overcome the obstacles, research can use big data to answer the what, when and where questions and surveys to get at the why and what next – resulting in shorter, more interesting surveys and more accurate factual data.”
And a further trend to look out for, comes from Courtright, who comments, “A trend we’re seeing is definitely privacy and what that means in a world of cookies and meters and observational data collection. And in turn, society’s reaction to those practices, along with their expectations of transparency and responsibility.”
How to do business here
While we know we need to let go of those stereotypes of Americans we seen in the media, how do we do business here?
Lorch has some sound advice, “Americans are informal and direct in business dealings and make decisions relatively quickly – so don’t be afraid to ask for the business and discuss specifics like delivery times and costs.” But, don’t mistake that good old American positivity for success. “A positive attitude is much admired in the US, so even if someone tells you they’re “incredibly excited” about meeting you and hearing about your product it doesn’t mean you’ve made the sale!” observes Lorch.
So what have we learnt about doing business in the United States? Don’t treat this country as one…
Special thanks to Jackie and Melanie for this article.
Jackie Lorch, Vice President, Global Knowledge Management, SSI USA
Melanie Courtright, EVP, Products and Client Services, Research Now