Archive for the ‘Customer surveys’ Category

Hypotheses: They Aren’t Just for Science Geeks Anymore (or The Importance of Hypothesis-Based Research)

By admin / July 11th, 2011 5:14 PM / View Comments

Every marketer does research of some sort or other on a frequent basis. Whether it’s formal research designed to understand customer satisfaction or new market needs, or less formalized tasks such as gathering input from customer advisor councils, one of the key aspects of the marketing function is gathering information about the outside world to better understand and react to it.

Unfortunately all too often too many of us simply plunge in and start asking questions (or designing surveys) without spending as much time as we should thinking about how the information is going to be used, or even what the questions really are. Instead, we can take a page from our physicist and biologist friends and apply a little bit of the scientific method. Specifically I am talking about forming and testing hypotheses to guide our research.

In case you started zoning out during that last sentence all I really mean is taking an educated guess at what we think we are going to find at the end of the research. The hypotheses (or educated guesses) should be based on the best of your current knowledge, and should frame up the areas of inquiry you want to dig into.

For example, let’s say you are designing a customer satisfaction survey, and you believe that your customers are generally happy but there are one or two areas in which you believe your customer experience is lacking, let’s say in product reliability and service/support. You could form hypotheses along the lines of “while we are doing fairly well our lack of product reliability is causing a great deal of customer churn,” “customers don’t place much value on service/support so lack of performance there is not a problem,” or “the customers who are unhappiest with our service/support are our least profitable customers anyway so it makes sense for not to invest too heavily in it.”

Each of these hypotheses will lead to different aspects to dig into in the research and different questions to answer. For example, the first hypothesis connects customer satisfaction with certain service components to customer churn and will cause you to think about things like interviewing customers who recently left and understanding the reasons for their defection. The third hypothesis on the other hand may lead you to link the results of your research with information from your customer database to correlate the satisfaction findings with customer profitability metrics.

Applying this approach is likely to inform your research methodology and questions to be addressed. The results are likely to be more valuable to your organization, and more likely to touch upon critical business issues you need to resolve.

Your hypotheses don’t have to be complicated, or even terribly “unusual” or “insightful”. The key is that it forces you to think about critical business and marketing issues and how your research will be applied to answering them. And by doing it up front, you can construct your research to ensure it addresses the questions you really need answers to, so you don’t get stuck with the “oh, I wish I had asked that” syndrome quite so often.

Today’s “Duh” Moment: The Importance of Talking to Customers

By admin / August 5th, 2010 4:59 PM / View Comments

I almost cringe making this my first post, out of fear readers will run away screaming, thinking I don’t have unique insights to share, but it’s so important, so fundamental, and yet so infrequently done, I feel it bears repeating even for the umpteenth time.

This is a top-of-mind topic at the moment as I’m just wrapping up a project for a client in which an associate and I interviewed over a dozen customers to gauge their reaction to proposed messaging and positioning statements leading up to the launch of a new version of one of their major products.

It seems like a “duh” moment for me to be writing this, but I was struck as my associate and I were doing the final analysis and presenting the findings to the client, as to how important and fundamental this exercise is/was, yet how infrequently done. The feedback was invaluable, and while the client’s messaging was 85% on track, the 15% adjustments that were made could make a major difference in how well the messaging (and the product) is received in the marketplace. These conversations with customers helped the company realize its proposed product naming was off track and now they are now going in an entirely different direction from the one they had been pursuing before we conducted the interviews.

Having run marketing organizations for close to a dozen tech companies large and small (both as a full-time employee and on an interim basis as a consultant), and having seen dozens more over the ten years I’ve been doing consulting, I know for a fact that talking to customers is an exception rather than the rule when tech companies are making key decisions, launching new products, or adjusting their messaging. And yet the insights you gain, from simple, basic adjustments to word choice, all the way to revamping your core product strategy, can be profoundly important.

And it doesn’t take much time or effort. You can certainly do it yourself if you are so inclined. Split up your customer list and assign a few to each executive and marketing manager in your company. Or, it if’s too difficult to set aside the time, you can always outsource the task to a trusted consultant (requisite self-serving plug for my own business). For more advanced practitioners, setting up a customer advisory council that you tap into frequently can yield a wealth of input.

Finally, there are benefits beyond simply what you learn from your customers. Actively engaging and listenting to them can be a contributing factor to turning them into strong advocates for your company and product. And with so much clutter and confusion in many technology markets today, having strong customer references and positive word of mouth can go a long way, especially for earlier-stage startups.

So to borrow from Nike: just do it. Go out and talk to your customers. Do customer satisfaction surveys, win-loss analyses, and tests for proposed product strategies and messaging statements. The insights you gain will be invaluable.