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Digital Strategy: Week Three
1.
DIGITAL STRATEGY
Week Three April 25, 2011 Copyright © 2011 by IQ Agency
2.
AGENDA
• Review Case Studies • Discuss Audience Research • Your New Clients • For Next Week Copyright © 2011 by IQ Agency 2
3.
YOUR HOMEWORK WAS...
Take one of the campaigns presented last week (either as part of another student’s homework or during the unpacking discussion) and write up a case study using the format we’ve just discussed. • Business Goal • Audience Insight • Solution • Results Copyright © 2011 by IQ Agency 3
4.
Copyright © 2011
by IQ Agency 4
5.
CUSTOMER RESEARCH Copyright ©
2011 by IQ Agency
6.
Customer
research is where we find our insights in digital media strategy. Copyright © 2011 by IQ Agency 6
7.
WHAT IS RESEARCH?
Let’s list some examples. Copyright © 2011 by IQ Agency 7
8.
MY RESEARCH MANIFESTO
Knowing a lot about your audience is an important first step, but not the final step. You have to learn to think and feel like your audience. Research is about finding the deep customer insights you need to inform a compelling creative strategy. Those insights come from empathy, not statistics. Fundamentally, you need to develop a sensitivity to the differences and similarities in humanity. Use research to sharpen that overall sensitivity and, whenever possible, talk to real people to challenge your assumptions, validate hunches, and fine tune your ideas. Copyright © 2011 by IQ Agency 8
9.
WHAT KIND OF
RESEARCH? Depending on the client, the timeline, and the budget research could mean: Generative (generating new data) • Talking to and involving real customers • Observing people in real life (or online) • Interviewing stakeholders Non-generative (reviewing data already generated) • Reviewing data • Reading articles about research other people have done Copyright © 2011 by IQ Agency 9
10.
GENERATIVE RESEARCH STAGES
Exploratory Evolutionary Evaluative open-ended focused Copyright © 2011 by IQ Agency 10
11.
SKIPPING PHASES CAN
COST YOU* • In 2009, Walmart wanted to do something new, something transformative, to out-innovate rival Target. • They a sense that Target is cleaner, better designed, less cluttered. Walmart aisles are crammed, packed, an infinite jumble of product. • Their big idea was to undertake an uncluttering project. Strategic. Huge. Millions of dollars. • Before they made any changes, they floated the idea by customers. • Walmart conducted a survey, asking customers: would you like Walmart aisles to be less cluttered? • Customers said, "Yes, now that you ask, yes, that would be nice." • Walmart spent hundreds of millions of dollars uncluttering their stores, removing 15% of inventory, shortening shelves, clearing aisles. Yes, it's expensive and time-consuming, but this is what customers said they wanted, so they did it. What went wrong? Copyright © 2011 by IQ Agency 11
12.
SKIPPING PHASES CAN
COST YOU* • Sales went down. Way down. Walmart has lost over a billion dollars in sales. It's actually closer to two billion dollars of sales they missed out on, and maybe more. • The executives in charge of the project have been fired, and Walmart is spending yet more money to return to its original, time-tested strategy of offering a huge (albeit cluttered) inventory at low prices. • The mistake was a lack of customer focus. • Walmart didn't pursue the question of what customers wanted. Instead, Walmart came up with the answer first, then asked customers to agree to it. • That's exactly the wrong thing to do, because it ignores customers while attempting to fool stakeholders into thinking that the strategy is customer-centered. Copyright © 2011 by IQ Agency 12
13.
SKIPPING PHASES CAN
COST YOU* Put another way, Walmart based this incredibly expensive misadventure on what customers said, rather than what they did. • Customer experience is all about what customers do. • In real life. • No hypotheticals. • Walmart acted without considering the customer experience, and that was a big mistake. The lesson: ignoring the customer experience is an expensive mistake. Be sure to listen to customers the right way, so that you get a strategy that actually works. * This case study stolen completely from: http://goodexperience.com/2011/04/ignore-the-customer-e.php Copyright © 2011 by IQ Agency 13
14.
GENERATIVE RESEARCH STAGES
START HERE Exploratory Evolutionary Evaluative open-ended focused Copyright © 2011 by IQ Agency 14
15.
EXPLORATORY RESEARCH
• Why: Exploratory research is used to uncover customer behaviors you don’t fully understand • When: When you’re developing new concepts • How: Interviews, ethnographic studies (observation), contextual inquiry, and (much less often today) focus groups • What: Journey maps, personas*, mood boards * More on this later! Copyright © 2011 by IQ Agency 15
16.
EXPLORATORY: INTERVIEWS
• One-on-one (interviewer and interviewee) with open-ended questions • Interviewees are recruited to match target audience • Number of interviews depends generally on time, money, and how certain you need to be • Researcher creates an interview guide to steer the conversation • Qualitative method: you get themes, concepts, and ratios (not percentages!) Copyright © 2011 by IQ Agency 16
17.
EXPLORATORY: ETHNOGRAPHY
• Observing a population in their environment (e.g., shoppers in a store) • Researcher observes and counts behaviors over an extended period of time (e.g., several days to weeks) • People don’t know they are being observed. • Qualitative method that generates a lot of data for detailed analysis • Digital ethnography includes similar activities in the digital space - Social listening - Becoming a member of an online community made up of your target audience and watching how they interact, what they talk about, etc. Copyright © 2011 by IQ Agency 17
18.
EXPLORATORY: CONTEXTUAL INQUIRY
• Similar to interviews in that it is typically one-on-one • Similar to ethnography in that it involves observation • Participants know they are being studied • After a period of observation (or sometimes during) the interviewer asks questions to help them understand the behavior they are observing Copyright © 2011 by IQ Agency 18
19.
EVOLUTIONARY RESEARCH
• Why: Used to help you flesh out rough ideas or choose among ideas. • When: After you have an initial concept or concepts but before you’ve executed them • How: Interviews, co-creation exercises • What: Personas, wireframes, lo-fidelity prototypes Copyright © 2011 by IQ Agency 19
20.
EVOLUTIONARY: INTERVIEWS
• In this phase your interview questions are more focused • Ask questions that help you determine how likely your idea is to connect to an audience - Technographic information - Domain information • Don’t lead the interviewee Copyright © 2011 by IQ Agency 20
21.
EVOLUTIONARY: CO-CREATION
• For development of websites, mobile apps, and other digital experiences • You invite members of your target audience to help you create - Whiteboard - Pen and paper • Look for patterns among participants and real insights into the design problem Copyright © 2011 by IQ Agency 21
22.
EVOLUTIONARY: SURVEY
• Allows you to quickly gather data from a large number of participants for statistical purposes • You can ask: - Basic behavior questions - Ask an audience to compare or rank ideas or design concepts • People interpret questions differently and can’t ask you questions for context - Similarly, you can’t ask follow up questions to understand their responses fully Copyright © 2011 by IQ Agency 22
23.
EVALUATIVE RESEARCH
• Why: Your have a clear idea of what needs to be created but still have questions about the details • When: Once you have a single, well-formed concept or after an concept has been executed • How: Analytics, usability tests, heuristic evaluations, surveys • What: Reports, detailed wireframes and flows, detailed design recommendations, application changes. Copyright © 2011 by IQ Agency 23
24.
EVALUATIVE: ANALYTICS
• Digital is inherently measurable - Number of clicks, visits, sales, time on site, number of comments, favorability, etc. • Tells you how people are interacting with your digital media executions • Can tell you how people are interacting with your competitors digital media executions as well Copyright © 2011 by IQ Agency 24
25.
EVALUATIVE: USABILITY TESTS
• Like interview, participants are recruited to represent the target audience • Usually 5-8 participants per target group are enough • A moderator asks the participant to complete a series of tasks with a website, app, etc. • Participants are asked to think aloud and talk about what is going right and wrong in the user interface they are using - It could be a fully developed interface, high-fidelity prototype or even a paper prototype Copyright © 2011 by IQ Agency 25
26.
EVALUATIVE: HEURISTIC EVALUATIONS
• An expert review of a digital execution - Evaluates based on accepted best practices - Can point to problems that can be fixed quickly or evaluated in usability testing - Usually gives a score that can be compared to a previous score or the score of a competitor Copyright © 2011 by IQ Agency 26
27.
EVALUATIVE: SURVEY
• Can be done in person, over the phone, or over the web (WebMonkey, Survey Gizmo, etc.) • Generally, you want to get lots of responses from a particular audience or group audiences to a set of questions. • Results are broadly generalizable within a margin of errors. • How an respondents are recruited and the structure of the survey affect how sure you can be of the results. Copyright © 2011 by IQ Agency 27
28.
WHAT KIND OF
RESEARCH? Depending on the client, the timeline, and the budget research could mean: Generative (generating new data) • Talking to and involving real customers • Observing people in real life (or online) • Interviewing stakeholders Non-generative (reviewing data already generated) • Reviewing data • Reading articles about research other people have done Copyright © 2011 by IQ Agency 28
29.
NON-GENERATIVE RESEARCH
One of the key strategic competencies all members of an agency team needs is the discipline to seek new information about an audience and discuss insights with team mates. Sometimes this will mean generative research, but more often it means finding and reading primary and secondary sources of customer information one the Internet. The slides from Week One contain lots of the sources I use on a routine basis. There are many, many others and new sources appear all the time. Copyright © 2011 by IQ Agency 29
30.
WELCOME TO QUENCH Copyright
© 2011 by IQ Agency
31.
OUR NEWEST CLIENTS Copyright
© 2011 by IQ Agency 31
32.
STRATEGY LEADS
Student Client Website Review Caitlin Ayala’s Herbal Water http://www.herbalwater.com/ http://www.drinkwhat.com/zero-calorie-ginger- lemon-peel-flavored-ayala’s-herbal-water/ Danielle Purity Organic http://www.purityorganic.com/ http://www.drinkwhat.com/purity-organic-drinks/ Ladi Zico http://zico.com http://www.drinkwhat.com/zico-pure-premium- coconut-water-tao-mango Sarah Guayaki Yerba Mate http://guayaki.com/ http://www.drinkwhat.com/guayaki-healthy-energy- drink-yerba-mate-revel-berry/ Sharron Neuro http://drinkneuro.com/ http://www.drinkwhat.com/drink-smart-drink-neuro- sun/ Vivian Spartos http://www.spartos.com/ http://www.drinkwhat.com/spartos-all-natural- protein-water/ Whitney Snow http://www.snowbeverages.com/ http://www.drinkwhat.com/snow-natural-soda-with- vitamins/ Copyright © 2011 by IQ Agency 32
33.
CREATIVE BRIEF Copyright ©
2011 by IQ Agency 33
34.
THE ASSIGNMENT
Increase sales of your beverage brand in major grocery and retail chains by raising awareness, creating preference, and motivating loyalty. AWARENESS AWARENESS CONSIDERATION PURCHASE USE LOYALTY CONSIDERATION PURCHASE // Copyright © 2011 by IQ Agency 34
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TACTICS MAPPED TO
FUNNEL Digital shopper marketing Non-digital shopper marketing Primary shopper flow AWARENESS CONSIDERATION PURCHASE USE LOYALTY Search Social Media e-Circular Social Media Brand CRM or loyalty advertising & blogs and brand sites program (feedback) Traditional Retailer website AT HOME media Brand site Retailer CRM email Word of mouth a Location-based Mobile Utilities Mobile CRM Mobile website advertising offers for in-use scenarios Mobile couponing ON-THE-GO Retailer/ product In-store comparison finder and research t IN STORE In-store media Circular Kiosks Employee advice Digital enhancements to packaging (QR, etc) Post-purchase coupon Copyright © 2010 by IQ Agency 35
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THE SITUATION
While sales a health food and high-end grocery chains like Whole Foods are strong, they limit a brand's growth within a relatively small consumer base. Moving in to big box retail (i.e., Walmart and Target) and major grocery chains (i.e., Publix, Kroger), can help a brand move from a niche product to a nationally-known brand. The healthy beverage market is highly competitive. Not only do brands compete directly with other health beverages, they also compete with mass-market soda, juice and water brands. Success means a creating a loyal following who believes in the unique characteristics of your brand enough to buy again and again (and tell their friends). Copyright © 2010 by IQ Agency 36
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WHO ARE WE
TALKING WITH High-End Hippies A true hippie would only drink "whole beverages" like water, tea, fair trade coffee, and hemp milk. This audience tries to make healthy decisions for themselves and the planet, but not at the expense of style, ease, comfort and taste. Aged 25-35 and tending toward female, this audience is well educated, upper-middle class, and defined by a love for the environment and an interest in health, fitness, and well-being. Even with these shared characteristics, the group is not homogenous. At different ends of the spectrum you have single adults with new careers and married adults with more established careers and children. Copyright © 2010 by IQ Agency 37
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WHAT’S THE SINGLE
MOST IMPORTANT IDEA WE CAN CONVEY? We can help you be the person you want to be. Copyright © 2010 by IQ Agency 38
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WHY THEY SHOULD
BELIEVE IT The beverage you hold in your hand tells people who you are. Walking into a room with a soda from McDonald's tells a very different story than a Kleen Kanteen water bottle. Holding [your brand] in your hand means: [Unique brand characteristics]. Copyright © 2010 by IQ Agency 39
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THIS WEEK’S HOMEWORK
Create a target audience persona for your client by answering the following questions about the target audience: • What is her/his name? • Describe his or her mobile use? What kind of phone does s/he use? • How old is s/he? • What does s/he do? Where does s/he work? • Where does s/he live (city, state, maybe neighborhood)? • How does s/he spend her free time? • Where did s/he go to college and when did s/he graduate? What was her/his degree in? • What kind of car does s/he drive? • What kind of music does s/he listen to? • What 3 things would s/he take with her/him on a desert island? • Where does s/he shop for clothes/furniture/books/ groceries? • Who is her/his hero? • What kind of shoes does s/he wear? • What goals is s/he trying to attain in her/his life/career/ health? • What kinds of magazines does s/he read? • Why does s/he buy your drink brand? What does s/he love about it? What could make it better? • What websites does s/visit? • Is s/he single, married, has children. • Describe her/his social media use. Copyright © 2010 by IQ Agency 40
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EMILY LEAHY (32)AN
ADVERTISING AGENCY SR. EXPERIENCE STRATEGIST AT ROSWELL, GA MARRIED WITH 1 SON, WILLIAM (3) “Health is more than fitness. It’s all the choices I make -- including what I drink.” • Listens to a variety of music, but Hip Hop in the car. Favorite song to work out to is “Bombs Over Bagdad” by Outkast. • Usually shops for groceries at Whole Foods once a week (it’s a bit of a drive) and fills in with things from Publix, Kroger, and Target as necessary. Some things she buys are only at one store and not the others. • Her hero is Juliette Gordon Lowe, founder of the Girl Scouts. She was a Girl Scout through college and even the leader of a troop. Probably wouldn’t be involved again, but values the mission of empowering young women through hands-on learning. • Shops primarily at Macy’s (her husband works in IT there and gets a discount) and online at Etsy, Modcloth, Bluefly, Shopbop, Anthropologie, and 6 pm. Goes through phases online. • Subscribes to Real Simple and Runners World but seldom has time to read either. She prefers digital formats, but doesn’t subscribe to digital magazines. • She drives a 2003 Toyota Camry that was the first car she ever bought. She’s thinking of buying a new car this year -- probably a hybrid. • Has her mobile with her all day long and uses it as a calendar, notebook, newspaper, etc. Has apps for her and her son. Copyright © 2010 by IQ Agency 41
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EMILY LEAHY (32)
SR. EXPERIENCE STRATEGIST AT AN ADVERTISING AGENCY ROSWELL, GA MARRIED WITH 1 SON, WILLIAM (3) Copyright © 2010 by IQ Agency 42
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HAVE A GREAT
WEEK! Copyright © 2011 by IQ Agency 43
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