All posts by Andrew Needham

How To Succeed in the Business of Products

Brands are changing.

Perceptions of a brand are increasingly measured on whether they deliver against the product and service expectations we have for them. Online resources give consumers vastly better product information – from peer reviews to price comparison sites – meaning that their purchase decision-making can become a much more rational assessment of real value (Simonsen & Rosen, 2014 ) And apps such as Uber – or more broadly ‘Uberfication ’, the growing sector of on-demand mobile service provision – have created new and much higher expectations for how easy and frictionless a service can be.

So what a brand does via its products and services is now much more important to customers than what it says.

Marketing has to change radically – but customer understanding is only more essential. So here are some initial first steps to building great products that your customers will want to use.

Uber

Start with the customer

Today’s empowered, social, networked customers are not just “always on” but “on demand” – hence the need for companies to put them at the heart of everything they do. Staying close to customers and understanding their needs in real-time is critical to delivering winning products and services.

Within this, as Alex Osterwalder sets out in his book ‘Value Proposition Design’, it is important to understand:

  • what CUSTOMER JOBS they are trying to do
  • the GAINS – the outcomes customers want to achieve or the concrete benefits they are seeking
  • and the PAINS – the bad outcomes, risks and obstacles related to the customer jobs.

Ranking these three elements in terms of priority is the first step to ensuring that you focus on those needs that the most of your customers care the most about. 

Ensuring “Fit” with your valuation proposition

The flip side to understanding your customer profile is ensuring that there is a fit with your value proposition.

Start by creating a value map of how your product/service helps customers alleviate pains and create gains, then rank these by importance, says Osterwalder. You achieve “fit” when customers get excited about your value proposition because it addresses important jobs, alleviates extreme pains and creates essential gains that customers care about the most. Achieving this fit is hard to find and maintain so having a rigorous process to ensure this is essential.

According to Des Traynor from Intercom, here are 10 important questions and principles to keep in mind when thinking about your product road map:

  1. Does it fit your product vision?
  2. Are you improving or innovating an existing feature in your product?
  3. Are you focusing on the areas that get the job done better by 20-30%?
  4. Are you getting more people to use the product and to do so more often?
  5. Will the feature matter in 5 years?
  6. Focus on the things that don’t change
  7. Does it benefit all customers not just a few? Sometimes new features only divide existing usage
  8. Watch out for side effects
  9. If a feature takes off can you afford it?
  10. If you can’t do it well, it’s not a good feature

Integrating lean start up principles

Erik Ries and Steve Blank’s work on the ‘lean startup’ was inspired by ideas of ‘lean production’ developed by Toyota, but pulls them from manufacturing into the world of consumer product and service design. They propose a 3-fold model:

  1. Hypothesise how you product will create value for its users
  2. Listen to users: Get feedback on every aspect of your product & business model & revise your assumptions
  3. Practice ‘agile development’ by developing incrementally and iteratively

[Source: ‘Why The Lean Startup Changes Everything’, Steve Blank, HBR May 2013]

Blank’s process eliminates slack and uncertainty from product development by continuously building, testing and learning in an iterative process. This approach is key to providing evidence that your customers care about how your products and services kill pains and create gains. Building a range of hypotheses and different experiments to test them in regard to your value proposition is essential to reducing risk and uncertainty and increasing the likely success of the product launch.

At FACE our inverted co-creation model is one of the ways in which we help brands do all of the above with rigour and speed, building the customer’s needs into every step of the product development process.

Inverted Co-creation funnel

Embracing social technology and software

Finally, in all of this social technology and software has a huge role to play in the “Business of Products”. Developing products that can help brands and companies meet the demands and expectations of today’s customer cannot be done without a deep understanding of technology.

As Steve Denning wrote on Forbes.com in his article entitled “Why Software is eating the World (a title taken from Marc Andreessen’s own article by the same name in 2011): “All Companies are now software companies,” and for most of them, “failure to acquire digital agility will be an existential threat and so, establishing digital agility has become in effect a strategic necessity.”

Software is not just disrupting traditional business models by helping new entrants meet customer needs better and faster – it is helping the new entrants to re-define them. As I indicated at the start of this post by mentioning “Uberification”, what Uber shows is that even so-called ‘offline’ products and services (such as taxis) need to become apps, and are defined by the digital user experience they offer.

At FACE we don’t just advise companies on product development. We’re doing it ourselves with the development and scaling of Pulsar, our social data intelligence platform.  We have fused software engineers and data scientists together with own innovation and research expertise to revolutionise social media research. We are seeing first hand what it takes to apply the “business of products” and are now focusing on delivering the next stage “the business of platforms”.

That, though, is a topic for another blog!

If you would like to find out how we can help your company innovate, then please get in touch by emailing: andrew.needham@facegroup.com

Delivering customer obsession in the digital age is critical to business success

Amazon aspires to be “Earth’s most customer-centric company” and CEO Jeff Bezos speaks passionately not about customer-driven, but customer obsession. An empty chair is often kept in meetings, where the customer is symbolically seated.

As we start 2014 more and more CEOs are recognising that to deliver sustainable competitive advantage in the digital age they have to be able to meet the demands and expectations of today’s empowered and connected consumers consistently and continuously in real time. To achieve this successfully their organisations are going to have to put the customer at the heart of everything they do and then apply scaleable social technologies across the entire company to help make this happen in a human way. They are going to have to become what is being coined a “human era” company, able to manage brands that are more “human”, people-powered entities.

Applying customer obsession in the digital age

Customer obsession in the digital age means understanding that consumers expect their interactions with your organisation and brands to be not just “always on” but “on demand”. They want to be able to do things immediately and interact anywhere at anytime (immediate, real time); they want to do truly new things that create value for them and that delight them (valuable). They expect all data stored about them to be targeted precisely to their needs and personalised to their experience (relevant & personal). Above all they expect their interactions to be simple (easy). And lastly the “on demand” customer desires a more human interaction with companies and brands (human).

Meaningful human connections can’t be formed in one direction — they require the company or brand to reciprocate, to level with consumers. When they do, the connections become a foundation for something we all intuitively understand and value highly: trust. However, for companies to be human in deeds as well as words, a fundamentally different mindset must prevail – that the role of the firm is no longer just to make and sell products, but also to engage deeply and openly with customers as collaborators in creating value together  (Social Capital).

Already, search technologies have made product information ubiquitous; social media encourages consumers to share, compare, and rate experiences; and mobile devices add a “wherever” dimension to the digital environment. Technology will only continue to empower consumer expectations in these five ways. Further developments in mobile connectivity, better designed online spaces created with the powerful new HTML5 web language, the activation of the Internet of Things in many devices through inexpensive communications tags and micro-transmitters, and advances in handling “big data” will just accelerate the appetite of the “on demand” customer. Soon they will be able to search by image, voice, and gesture; automatically participate with others by taking pictures or making transactions; and discover new opportunities with devices that augment reality in their field of vision (think Google Glass).

So to deliver against these 5 key expectations of Immediate, Valuable, Personal, Easy and Human in real time there needs to be a clear framework where the “on demand customer” is at the heart of everything a company does. A customer driven knowledge framework that sits at the centre of a company’s organisation like the hub of a bicycle wheel where all marketing and business disciplines feed in to and out from the “on demand” customer.

Putting the voice of today's consumer at the center

Applying social technology with a human touch

The application of social technology is essential to helping companies put the “on demand” customer at the heart of a company.  In many ways technology can also allow companies to be more human; to do things that we would naturally do in 1-2-1 and face-to-face situations. Technology can help us apply a human touch but on a mass scale. But achieving this can be a major effort for organizations that were not born digital.

What is most challenging for our clients is the ability to operate in a joined-up, end-to-end way. Many of the companies we work for are siloed around different functions or geographies. But “on demand” customers expect a fully consistent and joined-up experience. And that requires companies to think quite differently about the way they organize, their governance structures, and their standards for data and systems.

It’s also apparent that this is not just about the marketing function on its own. The company as a whole must mobilize to deliver high-quality experiences across multiple disciplines and across the entire value chain: sales, innovation and collaboration, service, product use, finance, logistics and marketing. Social technologies can help ensure “on demand customers” touch every part of the organisation in a human way and every part of the organisation is driven in real time by “on-demand” customer expectations.

Applying Socially Intelligent Research

McKinsey said recently: “We’re placing a bet that as customer behavior becomes more fluid and complex and where business models can be disrupted overnight, the client community will welcome the opportunity to have a more holistic, adaptive and responsive view of the customer”. 

To win over on-demand customers, companies will increasingly need to spend a lot of time getting to know them, what they expect, and what works with them, and then have the ability to reach them with the right kind of interaction and content at the right time. Unsurprisingly at FACE we believe that big social data integrated with other research methodologies lies at the heart of efforts to build that understanding—data to define and contextualize trends, data to measure the effectiveness of activities and investments at key points in the consumer decision journey, and data to understand how and why individuals move along those journeys.

Here are 3 important questions we want our clients to be asking themselves this year:

1. How does our customer experience compare with that of leaders in other sectors?

2. What will our customers expect in the future, and what will it take to delight them?

3. Do we have clear plans for how to meet or exceed their expectations?

We believe that socially intelligent research has a big role to play in helping companies and brands become more socially intelligent by informing their behaviour with a holistic view of the consumer so that they become more human, more social, people powered entities.

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Bad Andrew picture

Andrew Needham is a Founding Partner and CEO of FACE Research. A pioneer in the use of social data in qualitative and quantitative research to deliver a holistic view of the consumer, Andrew is leading the global expansion of FACE. 

 

 Read more of Andrew’s thoughts here. Or reach out to him on LinkedIn or Twitter.

Context is king: going beyond content with social data

A few weeks ago I was invited to speak on Social Data Week’s panel “Passion, Disruption and Connection: Building Brands in a Social World” (see the video of the panel discussion below).  One of the key themes I was expounding that chimed well with the audience was the importance of context over content.

Passion, Disruption and Connection: Building Brand from Social Data Week on Vimeo.

Going beyond just the “what”

The first generation of social media monitoring platforms such as Radian6 concentrate mainly on just what is being said across the social web. But the second generation of tools, our own Pulsar being a leader among them, are offering more intelligent solutions.

Pulsar focuses not only on the content of what is being said but by indexing and analysing everything around that content. When a message comes into the dataset, Pulsar enriches it in real-time with 30 types of metadata, ranging from demographics and behaviours to location, semantic tagging and link analysis. This means we’re able to see the context, behaviour and demographics related to a message, as well as the author’s social and interest graphs. So It’s only by building the context of a conversation that a fuller picture becomes available.

Understanding your audiences in real time: Social Panels

It is this ability to provide greater context to huge datasets that has allowed us to mine social data by audience. So rather than just look at the conversations people are having about a particular brand, product or service through keywords, we can understand all the conversations an individual or group of individuals are having about any and every topic they mention. And we can target this, identifying discrete groups of people such as brand followers, bloggers, mums, or tech experts (the list is endless) to understand all of their passions and interests in real time through social panels.  We believe that this is where brands need to start if they are to deliver against one of Social Data Week’s most popular soundbites, “Brands don’t have target markets: they have target moments”.

In order to build more engaging, relevant and personalized content and communications strategies, brands need to understand their audiences in real time, all of the time.

A good example is what one of our major retail clients was able to achieve in the lead up to Christmas 2012. The Marketing Director explained “Those final seven days make for an anxious week for customers as there are many “aha” moments when you realize that you forgot to buy some of those critical individual items. From the insight garnered from social data we were able to feed into our advertising in real time with what customers had been saying they had forgotten”. As a result they were able to check that they were stocking their stores with the right items.

Integrating social data with other data sets 

This retailer along with other clients are recognizing the ability of social data in helping them to achieve the powerful combination of being able to augment what customers are feeling with what customers are doing or actually buying. Rewarding customers through loyalty-based schemes on what they have bought is commonplace – but linking that to what customers would like to buy or be rewarded for based on an understanding of their interests, passions, hopes and desires is another new dimension.

As our CIO Francesco D’Orazio says, companies are realizing the huge potential of connecting social data with their other datasets such as sales, NPS, stock trading and media exposure. This is something we’re excited to be developing with clients already – watch this space.

Building social brands is about building a social business

All of this helps to remind us of the fundamental driver of all things social: it’s about people. And what they do and say to each other is more important than what brands and companies do and say to them.

From our social media audience studies we know that people spend far less than 1% of their time talking about a particular brand, product or service. Instead they spend all the rest of the time talking to friends and talking about their passions and interests.

This is important to remember when reading the interesting study from Ogilvy Social that was being discussed by one of the other panelists Irfan Kamal. It also reminds us of the transformational scale of social data and the impact it is having on existing business models. It is forcing companies to put the customer at the heart of their entire organization in real time.

As one of our major global clients said recently, The social web is fundamentally changing customer expectations, customer experiences, how they talk to you; the value they create for you beyond just buying something (social capital vs economic capital); and the relationships they have with you and their fellow customers”.

So this means companies need to understand social data is not just about brand marketing. It is much greater than this. Ultimately to build social brands companies need to build social businesses and social ecosystems.

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More than Just Research – Socially Intelligent Research

One of the favorite parts of my job is when someone asks me “What does Face do?” While we do research, we are so much more than that, now that we’ve publicly launched Pulsar TRAC, our social intelligence platform and we have established a profitable global footprint with offices in Hong Kong, Singapore and New York.

To help people understand what this means, we recently made this video. It’s a fun description of not just who we are and our history, but also of where we’re going because we have big plans for the future!

And guiding us throughout our journey is something we call the Face Manifesto. It’s our guiding principles that help frame what we do and why we do it. And it’s all laid out in our second video.

So can you see why I love telling people about Face? We are pioneering the use of social data in qualitative and quantitative research to deliver a holistic view of the consumer. And we have set ourselves a big but simple mission: to help companies be more socially intelligent by helping them to understand and co-create with people at an individual, group and network level.

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From socially intelligent business to socially intelligent research

We believe that businesses need to be socially intelligent in order to adapt to the ever-changing and interactive world of the modern consumer. This requires a new knowledge framework, which our CEO, Andrew Needham, puts forward in his whitepaper “From socially intelligent business to socially intelligent research”. 

Andrew recently published a blog explaining this new framework on the GreenBookBlog, but we wanted to share it here, too. Below you’ll find an excerpt of the blog as well as the full whitepaper

socially intelligent research

Social intelligence is an adaptive, continuous, collaborative and open customer/consumer-driven knowledge framework that sits at the center of a company’s organization like the hub of a bicycle wheel where all marketing and business disciplines feed into and out from the customer/consumer.

Success in the “Pull Economy” means understanding that a number of significant business principles have changed. In a hyper-connected world information flows much faster and more freely. Organisations as a result are subjected to a growing level of collective intelligence and value creation from outside the company’s walls brought on by the increased collaboration of customer/consumers, employees and suppliers in what is now a much larger ecosystem of data, conversation, innovation and participation.

There needs to be a knowledge framework to help companies manage this transformational change and maximise as much value from it in a way that benefits the business and the customer/consumer.

Social Intelligence

We call this social intelligence.

An adaptive, continuous, collaborative and open customer/consumer driven knowledge framework that sits at the centre of a company’s organisation like the hub of a bicycle wheel, where all marketing and business disciplines feed into and out from the customer/consumer.

In this model the empowered customer/consumer is at the heart of everything a company does.

Hub and Spoke Social Intelligence Framework

Alongside the role of the customer/consumer there are two other key ingredients to becoming socially intelligent.

The first is the application of smart technology to help manage the real time flow and exchange of information, creativity and value from within and outside the company’s walls.  The second is a growing army of people who have proficient skills to extract value and meaning from big data.

And this is where socially intelligent research has a big role to play by helping companies have a real time, in depth holistic view of their consumers.  Socially intelligent research combines best in class social media research, on-line qualitative communities, mobile ethnography and co-creation best practices in an integrated way. It is powered by proprietary platforms that have been built by researchers for researchers to deliver robust insight supported by rigorous qualitative processes.

Socially Intelligent Companies Must Embrace The Customer/Consumer

Companies have often spoken about how the customer/consumer is at the heart of their business and more often than not have failed to deliver against this mantra. Success in the pull economy means doing just that at a time when companies feel that it is harder to achieve. There are many examples where this is already happening.

From Open Innovation to Crowd-sourcing

Open innovation and crowd sourcing business models tap into the collective wisdom and creativity of consumers and this has been incredibly disruptive to more traditional approaches. Instead of “not invented here,” the mind-set is shifting to “proudly found elsewhere.”

The most notable case is Proctor & Gamble’s ambition to ensure that over 50% of its innovation is driven from outside the organisation with the set up of its Connect & Develop platform that has secured more than 1,000 partner agreements on innovation.

Further examples: Kickstarter is a U.S website that allows projects to turn to people outside the organisation for funding taking small or large donations from thousands of backers in return for credit or early access to products and services. Coca-Cola used crowd-sourcing to develop new designs for bottle crates in Germany and marketing ideas for Coke Zero in Singapore. GE has crowd-sourced green business ideas under its “eco-magination” challenge.

From Social CRM to Social WOM Communications

Social CRM, where the customer/consumer helps to deal with problems, queries and complaints of other customers/consumers is also being applied to a number of businesses. Telefonica – who launched GiffGaff, “the mobile network run by you” – relies on its customers/consumers to service other customers/consumers as part of its community driven business model.

In the area of communications examples of content generated by consumers and how it is shared is also prevalent. A recent campaign with UK’s Irn Bru showed just how powerful this is – one “superfan”, Rachel, caused Irn Bru’s latest TV advertisement to generate 1.5 million views before it even went live. In the U.S recently one of the most buzz-worthy ads of this year’s Super Bowl wasn’t even a commercial – it was a mere tweet from Oreo during the blackout.

Oreo’s Superbowl Twitter Ad

From on-line communities to faster decision-making processes

Continuous on-line communities where companies can connect their internal employees with customer/consumers, suppliers and partners is another example of where the consumer rules. Through communities such as Burberry World, companies are speeding up cycle times by shortening learning curves, testing new products or ideas with consumers using mockups, computer-generated virtual products, and simulations.

Together with the use of social media this is also helping to fast track the decision making process. In the case of Oreo their ad agency 360i told Buzzfeed that they had gathered Oreo executives together in advance, just in case something in the Super Bowl sparked an advertising idea. When the lights went out they were able to respond to this opportunity immediately with their Twitter ad.

Customers/consumers create value beyond just transactions

The significant shift underpinning all these examples (and there are many more of them) is that customers and consumers seek out interactions with brands that go beyond the merely transactional. This is driving large-scale behaviour change where focus on hyper-personalisation, relevance and customisation are critical.

 - Read the rest of the article at GreenBookBlog.org

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Read the full whitepaper by Andrew below, and sign up for our monthly newsletter for more information on socially intelligent research and how it can work in your industry and business.