Tactics vs. strategy: Companies misfire trying to use research as a weapon for success
Several Quirk’s articles in the past few years have touched on an unfortunate trend in the research industry: companies using marketing research tactically - to validate and optimize marketing messages with consumers, or to develop new products - instead of designing and executing research strategically to impact a company or brand’s direction moving forward. This practice is keeping many large organizations from fully capitalizing on the potential of marketing research, according to The Consumer’s Voice - Can Your Company Hear It?, a report from competitive intelligence agency Boston Consulting Group (BCG).
More than 70 percent of the study participants apply research to inform new-product development and marketing messages, but less than 40 percent use research for decisions on pricing, promotional activities or distribution channels. Instead of looking at research as a primary source of consumer insight, it is often used to simply confirm or refute corporate expectations and then tossed aside, and the solution to this underutilization of research’s power is much more complicated than throwing money at the problem. A bigger budget spent on the same research techniques could prove futile.
“Some organizations spend all of their budget on very tactical bits of data that are very hindsight-oriented. Other organizations have some of that, but they also allocate a fair amount of their spend to gathering data and insights that are much more strategic and forward-looking around where the consumer is going to go next,” said Kate Manfred, a co-author of the study and principal in BCG’s Chicago office.
In looking at research budgets, the study found no correlation between spending as a percent of sales and the quality of consumer insight. Rather than spending more, the critical drivers are a better balance of tactical and strategic work and maximizing the value of any spending. Success requires changes in behavior and expectations - and not just within the research department but also on the part of managers, including CEOs and senior executives.
Verizon aims to Perk up customer satisfaction
While many Americans view dealing with telecommunications service providers as a necessary evil (we need the technology, they provide it - and most of the time not much else in terms of service), Verizon has set out to change the 
public’s generally-negative perception of service providers by launching Verizon Perks, the company’s first customer loyalty program, which gives current customers the ability to purchase gift cards from more than 60 retailers at a reduced rate.
The Verizon Perks program is offered to current residential customers through the company’s My Verizon customer service site, and all Verizon customers are able to join provided that they are registered on the site. Verizon hopes the Perks loyalty program will help drive traffic to the site, which already offers 85 functions and services to customers. Verizon does not expect the program to draw in new customers but hopes that it will increase customer satisfaction and retention.
Initially, the Verizon Perks program will let consumers purchase gift cards from retail outlets and restaurants such as Barnes & Noble, Bath & Body Works, Golfsmith, Lands’ End, P.F. Chang’s, Romano’s Macaroni Grill and Outback Steakhouse. The cards, valued at $25, $50 and $100, will be available for purchase at a discount. Future Verizon Perks offers are planned throughout 2010, including the addition of more retailers, free product sample offers and the opportunity to be the first to know about new products, services and content.
Get a five-second brand and engage mile-a-minute Gen Yers
Gen Y is said to have future buying power and purchasing influence the likes of which have never been seen, and along with that a “now” mentality that makes holding their attention especially challenging. These elusive and tech-savvy consumers are distracted both away and toward brands. So how can you make sure that your brand is flypaper and your followers are flies? According to Gen Y financial expert Peter Dunn’s December 18, 2009, MediaPost blog “The Five-Second Brand,” the answer is - you guessed it - a five-second brand. For example, the average Gen Yer lives life buried in a mobile device. Therefore, your five-second brand must resonate on this emerging platform. Gen Y is the generation that never had to deal with a dial-up connection; they aren’t going to tolerate a brand that takes 30 seconds to explain. The five-second brand is all about meeting your audience halfway.
So, how do you make your brand shine in just five seconds? Here are Dunn’s three tips to get your brand noticed by Gen Y in that brief but crucial time frame.
Authentic. There is no more annoying and cliché concept in marketing than authenticity. However, it’s still a misunderstood concept that people misplay. Authenticity has nothing to do with test groups or tracking. Authenticity is like having 11 toes. You either have it, or you don’t. Authenticity is your ability to let your brand’s true personality shine through the messaging.
Inviting. Your audience needs to feel like they can interact with your brand. Gen Y hates being told what to do. A brand that offers open dialogue is a brand that isn’t easily dismissed by a distracted Gen Yer. We’re not talking about the suggestion-box mentality either. Gen Y expects to see their name alongside of your brand. You need to go far enough to literally include members of your audience in your brand.
Casual. The business suit of Gen Y is jeans. Even formal industries see the importance of casualness when targeting Gen Y. The funny thing is that Gen Y doesn’t find their jeans to be casual. It’s just how they are, which brings us back to authenticity.
Look deep within your brand and try to objectively evaluate its position in your marketing. You can’t fake these things, but you can dig deep and discover the true voice of your brand. Can you capture their interest in five seconds?