Research as Marketing: How to Engage Customers,

Launch Products and Fuel Sales

Presented by Doug TangwallProduct Development and Management Association Research Innovations and Strategy Session Madison, Wisconsin July 22, 2010

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Why do we conduct research?

#1: To gain insight

Research enables us to understand

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Why do we conduct research?

#2: To measure and improve

Research keeps on coursePhoto credit: ©2009 Dave Edwards, used with permission

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Why do we conduct research?#3: To develop new products

Research allows us to innovatePhoto credit: ©2009 James Marvin Phelps, used with permission

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Research has developed a stigmaThose conducting, perceive it as…

Expensive Slow Over-analysis of too much outdated info Not directly tied to the bottom line

Those participating, feel it’s… Time-consuming Artificial One-sided Not directly tied to their needs

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Changes are taking place…

Research Low-cost methods to connect with consumers Closer alignment with needs Easier to measure impact on bottom line

Consumers Conducting own research on products Participating in social networks Our understanding of the brain and motivation

Low-cost research → high-impact marketing

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Is what’s taught in marketing school wrong?

Maslow’s Hierarchy of Needs

Source: ©2009 Wikipedia Commons, used with permission, adapted from Personality and Motivation

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SCARF model of motivation

Our brains crave:

Status…to feel important Certainty…to forecast what’s coming next Autonomy...to have choices and a say in things Relatedness…to feel part of a group Fairness…to be treated with evenhandedness

Source: David Rock’s Your Brain at Work

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New perspective: Research as marketing

“Spend quality time with consumers, not just asking how they use your products, but how

they live their lives.”

- Jim Stengel, global marketing officer, Procter & Gamble

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What is nurture marketing?

Nurture marketing: educational promotion designed to

improve customer outcomes and cultivate affinity for a business

Make marketing meaningful

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The impact of nurture marketingAverage response rate as % of primary target audience

0%

2%

4%

6%

8%

10%

Mix oftraditional

tactics

Webinar Best-practiceWebinar

Research-driven

nurturemarketing

Note: Not controlled experiments. Based on actual customer-initiated contacts.

Generate more qualified sales leads

14-17 times more

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12 Low-cost research approaches1.Customer feedback circles/councils2.Sponsored networking sessions

Real-world example #1:Share ideas and share in the glory

Hosted networking calls with execs who don’t directly compete

Facilitated discussion

Gleaned valuable info

Perceived as innovative thought leader

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12 Low-cost research approaches3. Interviews/case studies4.New product pilot programs

Real-world example #2:Using pilots for a successful launch

6-month new product pilot

Customer increased ROI 2.8 times

Developed white paper/recruited evangelist

Four consecutive years of triple-digit percentage increases

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12 Low-cost research approaches5.Top customer analysis6.Matched data sets

Real-world example #3:Best practices beyond product

Matched data sets to identify top customers

Featured interactive Web paper

23% of target audience voluntarily signed up to gain access

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12 Low-cost research approaches7.Secondary research8.Trend analysis

Real-world example #4:Changing public policy

Using third-party research to compare performance of state

Combining best-practice legislation, local case studies and recommendations

Rich-media interactive format

Targeting passage of new state law

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12 Low-cost research approaches9.Online quizzes

Real-world example #5:What’s Your IQ?

Traditional research identified prospects didn’t use service because did it in-house

Created “IQ” quiz with scores and customized recommendations

Provided material for ongoing PR campaign

48% average annual increase in customers over 5 years

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12 Low-cost research approaches10.Social media monitoring and participation

Real-world example #6:Diabetes Control for Life

Monitored conversations about diabetes

Research identified content weaknesses

Developed branded community

Increased sales 400% among members/ 300% ROI

Source: Bob Gilbreath’s Marketing with Meaning

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12 Low-cost research approaches11.Company-led online communities12.Customer-led online communities

Real-world example #7:Look to your higher purpose

Mission: Protect and celebrate families

300 participants in closed community

“Nerve center” that avoids costly mistakes

Sometimes keep it light to connect, have fun and generate publicity

Source: American Marketing Association Presentation by Troy Janisch

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How to conduct research as marketingFocus on segments with similar needs

Think customer focus/higher purpose/SCARF

Don’t over-promise/avoid being defensive

Promote what you’re doing

Acquire necessary professional talent: research, marketing, journalism, public relations, product development and social media

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Benefits of research as marketing

Engaged prospects/company in tune with needs

Improved loyalty/sense of relatedness

Recruit product evangelists

More qualified leads/feed sales channels

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Educational marketing tactics

TraditionalNewslettersArticlesCase studiesPress releasesEmail marketing

Online/social mediaBlogsWeb paperseBooksOnline quizzesHow-to instructionSocial media releasesRich-media presentationsLibrary of resources

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New reasons to conduct research#4: To connect with customers

Research lets us engage prospects

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New reasons to conduct research#5: To not just develop—but launch—new products

Research brings home product benefits

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New reasons to conduct research

#6: To fuel sales

Research adds value to marketing

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Questions?

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Contact information

dougtangwall@endresultmarketing.com

608-358-0623

www.xeesm.com/dougtangwall

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Additional resources10-Part Blog Series on New Brain Research and the

Implications for Marketers, Doug Tangwall, www.endresultmarketing.com

The 10 Golden Rules of Marketing White Papers, Doug Tangwall, www.endresultmarketing.com

How to Make Interactive Marketing Take Off: a 7-point Checklist, Doug Tangwall, www.endresultmarketing.com

The Innovator’s Dilemma and The Innovator’s Solution, Clayton M. Christensen

Is Nurture Marketing Right for Your Business?: 11 Questions, Doug Tangwall,

www.endresultmarketing.com

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Additional resourcesThe Next Evolution of Marketing: Connect with

Your Customers by Marketing with Meaning, Bob GilbreathNurture Marketing: a Strategically Superior

Approach to Drip Marketing, Doug Tangwall, www.endresultmarketing.comNurturing Customer Relationships, Jim CecilSocial Media: Pitfalls, Profit and Potential, Wendy Soucie, www.endresultmarketing.comTruth, Lies and Advertising: The Art of Account

Planning, Jon SteelYour Brain at Work, David Rock