The speed of change is changing everything—market planning most of all. Here’s a quiz about trends and changes over the past five years. Let’s see how you do, and then we’ll consider the ramifications.
Five years ago, did you predict:
Major QSRs would be using mobile apps to preorder pick-up food, negating the impact of store POSMs and increasing the impact of radio ads?
Spending on online advertising would be greater than traditional advertising and growing at a 12x greater pace?
Fifteen-second commercials would have far greater impact than lengthier versions?
Over 15,000 retail stores would close each year due to eCommerce?
Uber would threaten the car rental industry
Online ad skipping (when possible) would be greater than 92 percent?
Over 80 percent of major CPG companies would lose shares to smaller brands?
Voice AI in the home would challenge Google search?
Amazon would be selling major appliances (Sears Kenmore) and groceries (Whole Foods) as well as offering no-prepayment clothing try-outs?
Over 75 percent of car shoppers would have decided on their make and model before entering the dealership?
The use of online ad blockers would grow by 40 percent a year?
In-store POS materials would have half the impact than they did five years ago?
Among millennials and Gen-Xers, paying by smartwatch and smartphone would threaten traditional credit card usage?
If you didn’t predict the majority of these trends, how well can you predict the challenges that will be facing your company tomorrow? And how can you be sure your companyis ready for the next two years of market planning?
The spending and viewing habits of millennials, Gen-Xers, and Gen-Zs are far different than anything marketers have experienced before. Their level of brand loyalty is low (except for premium brands), and they know more about new products and trends than you do. If you are still using predictive marketing tools from last year, prepare your Betamax recorder and load your Kodak Instamatic, because you are in for a bumpy ride.
I recently spoke with market research industry expert Bob Lederer, host of the Research Business Daily Report, about trends and the impact of millennials, Gen-Xers, and Gen-Zs on market planning, and I thought you might want to see it.
If you’re interested in discussing new ways to predict future trends, I can be reached at 201.569.4800 and at firstname.lastname@example.org.
Lee Weinblatt, PTG’s Founder and CEO, was recently featured in the September issue of Online MR Magazine. In the article shared below, Lee provides his thoughts on the importance of real-world research preceding virtual research.
Let’s Be Real. It Could Triple Your Predictive Validity.
Virtual Research. Simulated Research. Conceptual Research. Whatever you prefer to call it, the genre is likely being used to accomplish a variety of critical business objectives at your organization. Consumer Insights teams across industries have come to rely on virtual research for everything from simulating product shelves and packaging to POP displays. Don’t get me wrong, there’s a lot to appreciate about virtual research. Virtual is quicker, less expensive and incredibly flexible when a real-world research option is simply not feasible.
But now to the bad news.
An alarming amount of the virtual research that’s being conducted today is irrelevant because, sadly, it’s founded upon critical issues that could have (read: should have) been identified had real-world research preceded it. Let me share some examples.
PTG recently completed a study where customers of a QSR were asked to experience the drive-thru window while wearing our inconspicuous truVu audio and video recording eyeglasses. Additionally, PTG installed micro cameras that captured consumer engagement and involvement with the drive-thru promotional signage and virtual menu boards. Surprisingly, what the client learned as a result of this real-world research was the drive-thru signage that they were looking to optimize was actually being obstructed and never visible to the customers in the first place.
By simply moving the placement of the communications, the signage was no longer blocked and the client could now move forward with their intended research goals. In the event this communications research was conducted virtually, sure, the client would have garnered consumer feedback on the signage, however, the enhancements wouldn’t have had a positive effect on sales because they weren’t being seen.
We have identified similar cautionary tales as they relate to in-restaurant signage as well. For example, changing the angle of a display board or moving a ceiling drop to another location in a restaurant dining room can make the world of difference when it comes to visibility.
Real-world customer research has also provided invaluable insights when it comes to consumer behavior. For example, we have found that dynamic digital LED menu boards actually change ordering habits which is key information that fast food chains can capitalize on.
Real-world research has also played a pivotal role when it comes to in-store marketing. Our research has identified that how shoppers actually approach shelves, and related store displays, plays a huge role in creating effective signage and product guides. Do customers approach your products from the side? Do they bend down to look at items on the lower shelves? Do they engage with your promotions? A proper understanding of these real-world shopping behaviors has a major influence on how products ultimately move off shelf.
Without a doubt, there’s a place for virtual research – as long as you make sure you go into it knowing that what you’re about to invest in is based in real-world facts versus fiction.
PTG’s President, Dan Morris, was recently interviewed for the September issue of Online MR Magazine. In the interview, Dan shared his thoughts on the evolving demands of shopper insights research and how advances in technology are making it possible for marketers to passively observe shoppers in a natural environment.
The interview can be found below in its entirety.
In the past decade what major changes have you observed in the field of market research – especially in context of how we collect Shopper Insights?
Dan Morris: From my vantage point, the biggest change in the collection of Shopper Insights data is simply the increased number of potential sales channels that need to be monitored. Today’s marketers need to engage their customers, and that means not only understanding their customer experience in a retail environment, but also having a pulse on their digital shopping experience. For instance, in-store, mobile and online shopping environments each come with their own unique sets of challenges and research requirements. This is no simple task.
This evolving dynamic demands we introduce non-conscious biometric measurement into the Shopper Insights space. PTG’s patented Saccadic Eye Movement Recording System uses micro camera technology to record how fast shoppers’ eyes vibrate. By measuring this cognitive response we can objectively determine consumer engagement and interest with in-store stimuli such as packaging and communications.
What are some of the major challenges that you face in collecting insights from shoppers? How do you overcome these challenges?
Dan Morris: I would say the biggest challenge that we face is passively evaluating shoppers in a natural shopping environment or “in the wild” as I like to say. It’s widely agreed upon that the best research comes out of situations when consumers aren’t aware that they are being evaluated. Our mission at PTG is to inconspicuously capture consumer engagement to advertising and marketing stimuli in highly contextual, real-world environments. To accomplish this we leverage passive, patented technology.
Specifically, how do you leverage technology to better collect shopper insight?
Dan Morris: Technology offers the power of discretion. For example, our on-shelf micro cameras are the size of a fingernail and can be hidden in a pricing tag on a store shelf. These powerful little devices capture consumers’ Saccadic Engagement and facial activity while examining in-store displays and/or product packaging. The resulting data includes how many shoppers viewed a test product and then approached it on-shelf, how engaged the shoppers were with what they saw and, finally, how long the shopper spent with the product. This holistic view of the shopper experience enables marketers to identify what consumers can’t articulate.
Today with substantial amount of shopping being done online – how are you connecting with shoppers in the online domain?
Dan Morris: More and more clients are turning to us to measure their e-commerce channels. And, again, technology is the key. We apply our inconspicuous research tools to measure the performance of online and mobile stores as it pertains to closure rates, time spent shopping, click-thru and purchase data. In addition to the diagnostic information that’s captured, our eye tracking and Saccadic Eye Movement Recording System determine the pattern of element examination including which elements are most noted and read. We also measure the level of engagement for each webpage as well as line-by-line copy readership. We have found specific treatment impact varies by size of the digital device, type of e-commerce shopping and layout of specific webpage.
Shoppers – especially the dissatisfied ones are very vocal in social media domains – so is it the right platform to gather shopper insight?
Dan Morris: We leave social insights to the social listening companies and rely on our pre-market research initiatives to give clients the information they need to avoid social mishaps and disgruntled consumers in the first place.
Can we reduce/remove human intervention when it comes to analyzing data we collect?
Dan Morris: I think we’re already witnessing low-touch and no-touch techniques when it comes to collecting and crunching data; however, in my opinion, when it comes to delivering real insights there’s no AI out there that can replace human analysis and reporting.
One aspect of our business that we’re most proud of is when a client says to us – “Wow, we had no idea”. By passively observing shoppers in a natural environment, we go into projects with a clean slate and an open mind and simply watch them by using our unobtrusive cameras. We capture human behaviors that have a major impact on our clients’ businesses. At PTG we like to say “we see what you don’t” and what we see on behalf of our clients is pretty powerful.
What changes have you seen in the observational techniques to collect shopper insights in the past decade?
Dan Morris: The most massive change has been in the sheer sophistication of the data collection methods. No longer do qualitative researchers need to evaluate customer experiences with a paper and pencil or rely on outdated technology that makes the shopper feel conspicuous while in a store. Today, we can intercept hundreds of shoppers on the way into a store and invite them to shop as they planned to shop while wearing our inconspicuous audio and video recording glasses.
PTG’s truVu glasses are equipped with patented auto product identification technology and built-in HD and high frame rate recording capabilities. The technology has been successfully used to understand shopper buying behaviors immediately before and after interaction with a test shelf or product; or we can even follow their entire path-to-purchase. For example, are there “hidden influencers” that are impacting noting and selection of a product such as display height, FSIs and/or similarity of surrounding colors? Is a product’s signage being seen? Are shoppers reading promotional messaging and taking action? Are shoppers being influenced by certain areas of a store? Are shoppers skipping certain aisles or even an entire section of a store? In addition to shoppers wearing the glasses, we have also designed research projects where interviewers unobtrusively record shoppers and qualitatively probe about their experiences without the need for video cameras.
Can you suggest some changes that will help market researchers better collect shopper insights?
Dan Morris: The most important change that I can suggest is making sure that shopper insights have been discovered by research that’s been conducted in a real-world environment. We’ve seen clients make decisions based solely upon research that was collected via virtual or simulated studies only for them to find out that the basic premise was wrong.
Can you share some examples where you have helped provide better insights about shopper behavior to your clients?
Dan Morris: Sure, we had a health and beauty client struggling with the sales of an organic version of one of their products. In response, we designed an in-store study where shoppers went about their business wearing our truVu glasses and identified that shoppers were undoubtedly looking for the organic product in the organic section rather than among the regular category section.
We have helped a side-dish manufacturer discover the best placement for signage – in a totally different section – which increased follow-up purchase in their section of the aisle.
PTG also helped a major appliance manufacturer better understand their big box store promotional needs by recording the specific “ah hah” moment when simple customer browsing of appliances and related in-store signage turned into serious examination and follow-up questions with a salesperson.
We also measured the impact of the location and display for a consumer electronic device by discovering which types of displays worked best in different types of store layouts. For instance, some displays are too large to be seen without sufficient distance and some are too small to be engaging in larger stores.
What will be some of the major changes that we will see in the market research future?
Dan Morris: The future is going to be marked by research passivity. Consumers will no longer have to be asked to answer surveys because researchers will be able to gauge consumer behavior, engagement, emotional response, and facial recognition without asking a single question. At PTG we’re well on our way to making this future a reality!
“Our eyes are constantly moving, whether we notice or not. They jump from one focus point to another and even when we seem to be focused on one point, the eyes continue to reflexively move. These types of eye movements are called saccades. During saccades, even if we are not actively thinking about moving our eyes, our brain is still quickly working to land our focus precisely on spots that hold important information, such as the eyes of a person that you are talking to. The saccade is an example of sensorimotor coordination — how we coordinate our movement with what we sense -and has a far-reaching impact on motor control. Therefore, it is important to understand what is happening in the brain during saccades.”
TENAFLY, NJ – March 31, 2016 – PTG, specialists in consumer engagement and nonconscious measurement techniques, announced today a groundbreaking new research technology that passively and simultaneously measures consumer behavior, engagement and emotion in real time.
As a result, marketers can now obtain shopper insights data that integrates the following four real-world behavior and emotional measurement approaches:
Will shoppers stop to consider your product?
How much time with consumers spend on your brand versus the competition?
Are shoppers engaged with your packaging, display and/or POS?
What is the emotional reaction to the shopping experience?
Imagine what companies can now do to increase consumer engagement with information that was never available to them before.
“We’re thrilled to have cracked the code on incorporating the key elements of measuring consumer behavior and emotion into a single solution,” announced Dan Morris, PTG’s President. “Our passive and unobtrusive technology provides brands with a fresh perspective on their in-store marketing performance by illustrating how their efforts are influencing consumers cognitively and emotionally to drive sales.”
A leading destination for marketers, PTG specializes in consumer engagement and nonconscious measurement techniques. By revealing what consumers can’t articulate, PTG, through its patented technologies, translates its deeper understanding of human behavior into tactics that amplify creative performance, refine product marketing strategies and influence consumer activities.
Privately owned and headquartered in Tenafly, New Jersey, PTG is proud to be a partner of the world’s most enviable brands.
For more information and product demonstrations for your audience, please call 201.569.4800.
RFL Communications recently unveiled its 20th (!) Annual Predictions Issue for the market research industry. This year’s issue features insights from more than 30 influential industry leaders and experts about the significant changes they foresee for the MR/Insights industry in 2016 and beyond.