Four significant brands -- Tropicana,. Motrin, Facebook and the SciFi Channel -- made serious missteps recently; moves clearly the result of flawed customer research. Journalist Cathy Taylor and creative executive George Parker see this as evidence that focus groups --the dominant customer insight tool used by ad agencies -- are dead.
As a stand alone or dominant tool I agree. As part of a multi-dimensional research or brand planning matrix I'm not so sure.
The premise behind focus groups is to gather target customers and carefully probe their feelings, their allegiances and their loyalty to the brand. Often sitting behind the one-way mirror you can glimpse the branding process at work. Frequently you can hear the language and the emotions that brand loyalists and those completely unaware of brands use to describe your product or service.
We've known that these groups are inherently limited for years. There are significant challenges in recruiting that even $100 bucks and a steak dinner can't overcome not to mention the groupthink dynamic that can easily set in with a strong personality or an uncontrollable blabber in the room. Yet there are still very few tools that enable us to see, hear and watch our target customers as they interact with the brand and each other.
Part of the over reliance on focus groups is a by product of the fact that traditional agency planners have little real training in survey techniques or interrogation methods and even less understanding about how online surveys, social media and guided web surfing can round out a picture of how customers and prospects perceive or interact with a brand. In a 24/7 cyber world no one in their right mind would rely on small numbers of self-selected subjects sitting in a small dark room to determine what a brand should say or how to say it.
In too many cases focus groups were the stick or the carrot wielded against agency creatives. Groups often determined which execution was recommended but more often substituted for the absent backbone of creative directors. Today in hours, we can A/B test and almost limitless number of creative executions online and get thousands of gut reactions from any number of customer subsets that are statistically valid. Relying on focus groups even fto intimidate creatives is folly.
Effective brand planning is dramatically more complex and must account not only for an exploding number of customer touchpoints; it also has to understand and mine the customer experience to have any validity. The idea that ads are the brand is ancient, even if far too many brands and too many agencies still believe it. The artificial reaction of small numbers of customers, advocates or prospects is way too unstable a sample to risk significant media investment or brand exposure. Focus groups are flogged by those who lack the skills or the imagination to create more robust insight for brands. So in this regard, focus groups are finished.
In conducting research and undertaking brand planning, you must consider and/or include most of these eight dimensions to get a fair understanding of your customer base or the audience you wish to influence.
1. Purchase histories and CRM data
2. Web analytics and online behavior or click streams
3. Customer service themes and frequent issues
4. Data from standing or ad hoc online survey panels or fan/club sites
5. Traditional media metrics -- ratings, page views, 800 number volumes, time spent data
6. Guided web interviews and task-oriented surfing, eye-tracking, heat-mapping
7. In-depth 1-on-1 high value customer interviews
8. Focus groups composed of carefully defined audience segments reflect the brand's geographic and psycho-demographic reach
To fall back on flawed focus groups as the bedrock brand insight tool is the prescription for getting it seriously wrong.
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