Monday, August 6, 2012

Insight culture or Research Culture?

Research is important - there is no doubt. But in todays fast-paced consumer centric society, are we doing the right research? To my mind, there are three types of research companies engage in - insight development (not a whole heap), knowledge development (a lot), testing (way too much). And really, the emphasis should be the other way around.

To take them in reverse order - there seems to be a propensity to test the heck out of everything before we take it to market. In some cases, this is important (like if you’re about to spend $5m on upgrading your factory) and in other cases it is, at the very least, time consuming, and at the worst, misleading. I think in particular of creative testing, where (despite what the experts say) we hardly have a handle on what makes for fantastic advertising, let alone are able to effectively determine whether it is the insight, the creative idea, the execution or the format which consumers are responding to. Of course, if that is not enough, we spend fortunes tracking our brand equity, our advertising cut-through, our reach and frequency (which alarmingly don’t appear to take into account the fact that half the audience may well be sitting on the loo instead of glued to the TV watching your carefully created ad). And all of this, of course, makes the rather big assumption, that it is TV advertising that is driving brand equity. Sometimes it seems we test because we have no faith in our own insight and understanding of our consumers. You want to know how your brand is doing? Get out there and talk to some people.

There is no doubt that research designed to increase our product and category knowledge is an important part of a brands ability to perform in the market place. How consumers shop a particular aisle, what their key drivers are in determining which brand or product variant to buy, how they read menu boards at fast food restaurants (which I think might be termed quick service restaurants by the business, but certainly not by Jo from Blacktown). It is important to have knowledge. But knowledge does not equal insight. Knowledge will tell you the rules, but not how to win, to cut through, to connect with consumers. Ask any of your creative agencies how inspired they got looking through the knowledge base you sent them last time you gave them a brief, and its likely they’ll say “not a lot”.

Insight development comes from connecting with consumers, from exploring who your target market is and what they are about. And doing it on a consistent and regular basis. Its a bit like dating. On the first date, you have no idea whether the girl sitting opposite you likes carnations or roses, Lindt Chocolate or lace underwear. Keep on dating that person, speaking with them, showing an active interest in them and you soon get to know what they like. And you know instinctively. When you have an insight culture in your place of business, then you don’t need to test everything. You know instinctively if the idea is going to fly. You can feel it. And that makes it easier to test the bits you might need to test.

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