| Success Insurance |
June 30, 1997
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Companies used to see research simply as a way to gauge response to
their products and marketing. But increasingly they're turning to
it much earlier on to shape both what and how they sell.
By Lesley Daw
The lean 1990s have turned market researchers from gurus offering
detailed forecasts of the future into consultants who provide marketers
short and snappy advice they can act on.
Stephen Tile, president and COO of Goldfarb Consultants in Toronto,
says when he started in the business in 1980, market researchers
were still seen as "gurus, future tellers whose techniques
were somewhat mystical." But technology and other realities
of the '90s have "turned the research community upside down,"
making researchers into consultants.
These realities are that consumers now hold the ultimate power,
that consumers and marketers alike are bombarded with more information
than they can digest, that companies are downsizing and that their
brands are their most valuable assets. And these developments are
changing the role of the researcher from one who measures the effect
of things --whether products or marketing plans-- to one who helps
develop these things in the first place, explains Tile.
"It used to be (that a marketer would) brainstorm, build the
program (marketing program or new product), have a hypothesis about
how it should work, then go and, on a limited basis, execute somewhere
and evaluate how well it did," Tile says. But this method is
expensive and risky. So researchers offer what Marion
Plunkett, president of Plunkett
Communications Research Services of Toronto, calls "success
insurance"research done upfront to help develop a successful
program or product in the first place.
Companies are buying into this by doing more homework before they
make an offering to consumers, say both Plunkett
and Tile. The Co-operators Insurance Co. of Guelph, Ont., for example,
did extensive research before launching its DirectProtect home and
car insurance, which is sold by phone, says Ken Solmon, vice-president,
consumer insights at the Toronto direct marketing agency Wunderman
Cato Johnson.
A Cooperators TV spot addressed the worry,
revealed in research, that buying insurance by phone is impersonal
First, The Cooperators worked with WCJ and Creative Research International
of Toronto to evaluate response to the idea of buying insurance
by phone. They discovered that consumers liked the convenience and
time savings, but also found it somewhat scary because of its impersonal
nature.
To offset this concern, The Cooperators and WCJ created a TV launch
campaign featuring tiny insurance salespeople coming out of telephones,
showing there really is a person on the other end of that line.
Jeff Contant, president of HB Group of Toronto, a division of The
Cooperators, says DirectProtect agents have been swamped with calls,
leading the company to boost the number of its agents from 50 to
140 since the campaign's launch in late 1995, and to plan to hire
another 100 by this fall.
Part of the reason market researchers are taking on more of a consulting
role is due to corporate downsizing. Some of the research departments
they used to interact with no longer exist, so instead they're dealing
directly with the top executives of their marketing clients. And
Tile says those executives and decision-makers don't want 300-page
reports: "They want guidance for decision-making, and that's
all."
Solmon says WCJ in effect acts as the research department for its
clients, pre-testing and helping refine the products and services,
as well as how they are marketed. For example, WCJ worked with Canadian
Tire Acceptance of Toronto on a 1995 relaunch of its Auto Club so
that it offered coverage of vehicles rather than individual drivers.
Solmon says research showed that many families with more drivers
than cars didn't want to buy extra auto-club memberships for their
children, yet still wanted them covered when they were driving the
family car. Auto Club director Geoff Brock says the research provided
the confidence to go ahead with the new product. And while he won't
give away membership numbers, he says he is "very happy"
with the success of the product.
Marilyn Sandler, president of Creative Research International of
Toronto, agrees that the role of researchers is changing to an interpretive
one of taking all the information and boiling it down to a few suggestions
on what the company should do. She says that's the niche her company
aimed for when it was founded in 1971, but it is a more common role
now.
Although Sandler isn't sure there has been a widespread change
from evaluative to upfront research, she says she would applaud
such a move. And she does say that more companies are doing research
in general, and that research is playing a bigger role in their
marketing strategies.
Technological changes are also playing a role in altering research.
Tile points to virtual-reality programs that allow companies to
have consumers evaluate a virtual prototype without having to build
the product first. And the speed and capacity of computer technologies
means there is a lot more information to be interpreted, says Sandler.
Information overload doesn't just happen with research: technology
means there are more ways to send messages to marketers and consumers,
and to more of them. Marketers need help understanding the large
amounts of data that can be gathered in order to create a message
that breaks through the clutter and is understood by the consumer.
Such intense competition is putting a premium on strong brand equity,
so companies are doing more research to understand their brand and
its core values, says Plunkett:
"As a company, we uncover the core brand values and how to
leverage those values to keep the brand relevant in the '90s."
Tile defines a brand as a promise that must be kept. He says in
the classic case of the launch of New Coke, "if your promise
is that Coke is the Real Thing, you can't change iteven if
the new product is better, because you've already said Coke is the
best." A brand combines tangibles and intangibles, and, Tile
says, in this case Coca-Cola fixed a tangible without considering
its effect on the intangible promise.
Breaking a brand's promise can be deadly. "If you've advertised
and sent out the wrong message, or if you've gotten someone to try
your product and it fails to meet the expectation you've set up,
you've alienated those customers," Sandler says.
Central to sustaining the strength of a brand is understanding
that customers now hold the ultimate power. Plunkett
says the traditional pyramid of manufacturer over retailer over
consumer has flipped, with consumers now on top. This, she says,
is mainly because of the incredible choice consumers face. "I
think the '90s have been and are about making choices in every area
of our lives," she says.
And where are there more choices than on television? YTV hired
Creative Research International to help it decide who to target
and how to target them. The Toronto-based specialty TV service is
two-thirds of the way through a three-year study of tweens (children
nine to 13), says Julie Look, director of research.
The first two years of the study revealed that many tweens like
to watch television with their parents, so this spring YTV launched
a prime-time program block for tweens and adults called "YTV
Shift." It chose the slot of 6 to 9 p.m. because the research
showed that its prime time is earlier than the traditional 7 to
11 p.m. This program block, including shows like Goosebumps and
ReBoot, was advertised in a magazine and radio campaign targeted
at adults.
The key role that Creative Research International played in developing
this programming time block is a sign of the times, of researchers'
growing role in helping marketers make decisions. Tile sums up this
shift by saying that it is "bringing researchers to the boardroom
table.
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