http://the-marketeers.com/

1. TOOLS
Marketeers Dinner Seminar
CUSTOMER
INSIGHT
Iwan Setiawan
Chief Executive of MarkPlus Consulting | Co-Author of Marketing 3.0
Bandung | Jakarta | Surabaya | Feb 27-29, 2012

2. Part 1
Customer Behavior In Indonesia – 9 Trends

3. 9 Customer Behavior Trends
in Indonesia
“Deals help justify
1 unnecessary
consumption”

4. 9 Customer Behavior Trends
in Indonesia
“Faster product
2 adoption leads to
shorter lifecycle”

5. 9 Customer Behavior Trends
in Indonesia
“Instant and
3 experiential are no
longer oxymoron”

6. 9 Customer Behavior Trends
in Indonesia
“Idealism is natural
4 counterbalance to
consumerism”

7. 9 Customer Behavior Trends
in Indonesia
“Local is the new
5 sexy”

8. 9 Customer Behavior Trends
in Indonesia
“I connect,
6 therefore I am”

9. 9 Customer Behavior Trends
in Indonesia
“Good life makes
7 you have
something to lose”

10. 9 Customer Behavior Trends
in Indonesia
“Making choices
8 feels good”

11. 9 Customer Behavior Trends
in Indonesia
“My lifestyle doesn’t
9 mean I’m not in
shape (denial
mode)”

12. Part 2
Understanding Customer Behavior – 2 Tests

13. Are customers crazy?
“People may not
make sense to
you, but they
always make
sense to
themselves”

14. Crazily creative?
“People may not
make sense to
you, but they
always make
sense to
themselves”

15. The Stanford Marshmallow Test (1972)
One of the Most Successful Behavioral Observations

16. Customers are
irrational at
times!

18. How customers “think”:
Cortex Brain
“I better wait
Perceived
Reasoning “reality”
for the second
Illusionary CONSCIOUS marshmallow”
Limbic Brain “I want the
Feelings Sensory images
SUBCONSCIOUS marshmallow
Continuous thoughts
now”
Fear, anger, sadness,
Emotions Reptilian BrainUNCONSCIOUS
disgust, surprise, happiness
bloodstream & neural pathways
Basic life Drives & motivations
regulation Pain (punishment) & pleasure (reward)

19. The Penn & Teller Bottled Water Test (2003)
A Show that Proves Irrationality of Customers

20. Customers are
master
storytellers!

22. How we "understand" them:
Ask articulated Observe
and explicit unreported
knowledge actions
say do
make
Learn how they
innovate i.e.
workarounds

23. Part 3
Using Customer Insight Tools - 3 Cases

24. Innovation EFFORTS (Past 10 Years)
Hi
volume
Lo
Model Process Offering Delivery
Business Networking Enabling Core Product Product Customer
Service Channel Brand
model model process process features system experience
Source: The Doblin Group

25. Innovation VALUE (Past 10 Years)
Hi
value
Lo
Model Process Offering Delivery
Business Networking Enabling Core Product Product Customer
Service Channel Brand
model model process process features system experience
Source: The Doblin Group

26. Customer Insight Sources
Customer Insight
Sources
Secondary Data Primary Data
Quantitative Qualitative
Approaches Approaches

27. The Taxonomy of Qualitative Approach
Customer Context Critical?
Yes No
Immersion with Customer Group Dynamic or
Critical? Individual Depth?
1 No
4
Yes GROUP INDIVIDUAL
Client Benefit from
ETHNOGRAPHY Customer Experience?
Online or Offline? IN-DEPTH INTERVIEW
2 3 ONLINE OFFLINE
YES Company or customer Ad hoc
NO
CUSTOMER run communities? or routine?
OBSERVATION
VISIT (B2B)
5 6 7
Company-run Ad hoc Routine
Customer-run
MODERATED Lead user or CUSTOMER
NETNOGRAPHY
COMMUNITY mainstream? PANEL
8 Lead 9 Mainstream
LEAD USER STUDY FOCUS GROUP

28. Emphatic research is the most proven
Traditional Research
traditional latent evaluative
improves existing things
explicit needs reported
qualitative
Focus market segments
Empathic artificial settings
Groups
Research static interviews
Etc. isolated experiences
Empathic Research
quantitative
Video generative
Surveys inspires new possibilities
Ethnography
etc. latent needs revealed
etc.
individuals
natural context
dynamic conversations
comprehensive experiences

29. Sampling: Wide, Deep, Real
Small Small
numbers numbers
for depth for depth
Early Late
THE CHASM Majority Majority
Early
Innovators Adopters Laggards
Extreme Extreme
Real
users for users for
People
breadth breadth

30. Observation: know what you are looking for
Remember
Alexander
Flemming

31. Synthesis: Observation + Inference = Insight
Talk about the individuals you met
and the places you visited
Create personas from real people
Compare and contrast the things that
you learned

32. Case #1: Sampoerna Hijau (2000)

33. Case #2: XL(2007)

34. Case #3: Aora TV (2010)

35. Tonight’s Takeaway
What customers say and what they do are at times contradictory:
• Sometimes it’s their justification
• Sometimes it’s counterbalance
• Sometimes they just don’t want to say what they do
“What they do” is always the right insight!
Observation without purpose is meaningless
Observation without inference is naïve
Observation with inference is the true meaning of “
finding insight”