While I highly encourage you to read the complete complimentary report yourself to translate what applies to your specific situation, let me briefly share the three things that stood out to me.

1. Collect and Cross-Check

In the report, Forrester says, “Prior to taking a firm stand that the insights you have are accurate, test them against other relevant sources of data, especially customer feedback, competitive intelligence, transactional data, social media insights, and even web analytics.” This advice is well known by all who’ve been on the end of a false assumption: Do your homework before making a claim.

2. Make Strategic Recommendations

Regarding the presentation and use of insights, Forrester states, “The reality is that market insights won’t be able to have a voice in how its insights are used unless it is able to translate them into strategic options.” You, the market insights experts, are the ones neck deep in the data; you’re most familiar with it. Based on the data (which you’ve cross-checked), what are the key takeaways? How do you tie those back to your organization’s top initiatives? What do you recommend as a result of these insights? After preparing these answers, then present the data to stakeholders.

3. Toot Your Horn

Near the end of the report, Forrester says, “It’s not enough to simply deliver great research and insights. You need to generate some news around it.” It’s important to occasionally share your successes with your organization so that others can see the value you bring to the company. With that being said, no one likes a braggart, so don’t tout yourself too often or for too long. Ideally, you’d have an executive showcase your success, but if that isn’t feasible, do it yourself. What you’re essentially doing by spreading the news is building the case for research within your organization.

Wrap-Up

As a market insight professional you want to continue to be the best at your job and to make an impact at your organization. Forrester’s report, Build Market Insights’ Efficiency and Influence, may shed some light on ways to continue to expand your influence. Careful application of these principles will help you have greater influence and earn a seat at the table.

1. Size Isn’t the Biggest Big Data Challenge

At the opening keynote lecture, Gartner’s Jim Davies stated, “With Big Data, variety and velocity are bigger problems than volume.” I found this interesting. Although the volume of data is expanding rapidly and we can store it in our massive data centers, the challenge is really combining and analyzing data (structured and unstructured) from many different sources and systems. At the same time, we are challenged to do something with the data—find the insight, identify the at-risk customer, etc. So, as customer executives think about Big Data, it’s probably more important to think about rapidly finding insights from different types of data than about building killer data storage capabilities from which it is difficult to extract information.

2. Make Use of Big Data While Avoiding Analysis Paralysis

In another session, analysts Kimberly Collins and Bill O’Kane talked about how Big Data can lead to analysis paralysis, and not insights, if handled ineffectively. When collecting data, it’s crucial that you consider the 3 R’s of real-time decision-making: right data, right time, and right channel. There’s simply no room for a shotgun data collection approach. Organizations must carefully consider the information needed, when it should be gathered, and how it should be delivered.

The last bit of insight on Big Data that I’ll share is that organizations “get value from Big Data by finding one way in which it can drive innovation.” If you don’t try to just get an initial win from your Big Data, you’ll be paralyzed and overwhelmed by how much you could possibly do (I suppose this is like setting several New Year’s resolutions…). By focusing on a few use cases to get momentum, you can demonstrate success and then move to more significant levels of innovation.

3. Better Surveys Are A Key to Better Voice of the Customer

In a session with Jim Davies of Gartner, he said, “95% of companies do a lousy job of surveying.” The context in which he said this was that organizations struggle with design, length, channel, and lack of personalization in their surveys. There is a lot of room for improvement. He also said “companies need better VoC data on attitudes, needs, and satisfaction levels—things that the customer cares about—and should not include information that the company already has.”

What is the business impact of poor surveys? According to Davies, “Most companies destroy the goodwill they created with their experience through the post-interaction feedback survey.” Ouch! But, I can relate to this. I’m one of those people who likes to take surveys, but often cringe when I face a 20+ question survey with complex questions that takes more than a couple of minutes. The company isn’t paying me for my time (the chance to win a $20 gift card is not payment). Rather, I’m doing them a favor. So, I expect them to respect the value of my time.

What do you think? What are your biggest Big Data or Voice of the Customer concerns? I’d love to hear your thoughts.

Published in the April 2013 issue of The Academy of Management Journal, the study, “The Downfall of Extroverts and Rise of Neurotics: The Dynamic Process of Status Allocation in Task Groups,” was led by Dr. Corinne Bendersky, an associate professor of management and organizations at the University of California, Los Angeles’ Anderson School of Management, in collaboration with Dr. Neha Parikh Shah of Rutgers University.

Bendersky and her team used Qualtrics Research Suite to easily design sophisticated research. They set up different experimental designs, such as a simulated instant messenger platform that created the impression for study subjects that they were interacting with a real person. These innovative data collection methods contributed to the study’s key findings: Be wary of staffing teams with extroverts, and concerns about neurotics on teams are overblown.

“The ethos of extroverts is to be attention-seeking,” said Bendersky. “As a result, they fail to contribute as much as others expect because they are poor listeners and unreceptive to others’ input. Neurotics are anxious not to disappoint others, so they work really hard in group situations. Anyone assembling a team would be wise to staff it with more neurotics and fewer extroverts than their initial instincts might suggest.”

Bendersky attributes much of her research success to the capabilities of Qualtrics Research Suite:

“The Qualtrics Research Suite is unequivocally the best tool for academic research. Rather than distributing hard surveys to an organization at great expense, I was able to extend the geographic reach of this survey and use a splashy Web interface to make the poll more appealing, which resulted in increased response rates. Qualtrics also allowed me to conduct controlled research experiments in a way that was impossible before.”

The innovative study has attracted the attention of national media, including CNN, Forbes, Fortune, NPR, Time and USA Today.

Need help with your own academic research? Check out what Qualtrics Research Suite has to offer.

With that being said, I’ll write about general principles and guidelines to follow as you conduct your next concept test.

What to Look for in a Concept Test

Concept tests look for early points of product weakness and market failure that can be fixed pre-launch. The core problem that concept tests target is addressed in the following list of must “identify” items:

• Identify the effectiveness of individual concept assets
• Identify the barriers to achieving the concept’s full potential
• Identify consumer relationships with the concept
• Identify the status of the concept in a competitive context
• Identify failure of advertising to communicate clearly
• Identify failure through unmemorable product personality
• Identify failure through consumer’s lack of value perceptions
• Identify the brand equity assets
• Identify potential consistencies in brand image and consumer perceptions
• Identify potential inconsistencies in brand image and consumer perceptions
• Identify unrecognized product benefits
• Identify failures of the brand to integrate into the consumer’s lifestyle
• Identify an elusive brand/concept personality

Survey Components for a Basic New Product Concept Survey

Concept tests are easily constructed once the researcher is aware of the key components to be included in the test instrument. Of course, these components will vary with the purpose of the concept study.

In building a concept test survey, the researcher should carefully consider the objectives of the concept test and then determine if the measures used will successfully answer the objective-related questions. Pre-test the instrument by reviewing the purpose and results, and then make sure that the study purpose is answered with exactness.

The major components and measures of a concept test include:

Concept Presentation

Describe the concept completely. Use graphics, videos, audio, samples, or whatever best portrays the concept, associated attribute and benefit messages being tested.

Overall Concept Reaction Measurement

• Concept need / relative improvement over current method of doing things
• Overall reaction to the concept (acceptability, desirability, interest)
• Likelihood of purchase of concept

Detailed Concept Analysis Evaluation

• Likes and dislikes about the concept
• Attribute list evaluation
• Awareness of competing products
• Awareness of substitute and complementing products
• Superiority over other existing products

Use Situation Evaluation

• Likelihood of use in specified situations
• Current use of similar / competing products
• Frequency of product use

Value Analysis

• Estimate product value
• Price sensitivity analysis
• Preferred method of purchase

Segmentation Analysis

• Market segments most likely to use (order and prioritize)

Flow of a Typical Concept Test

• Introduction and qualify respondents (not part of a disqualification group)
• Measure awareness of product brands
• Measure brands purchased (within the product class) in past three months
• Introduce concept descriptions with measures of likelihood of purchase
• Identify purchase dimensions: number of bottles, frequency of purchase
• What is the perceived value of the product concept
• Innovativeness of concept measure
• Affective evaluation: like-dislike measure
• Measure the concept’s power to replace the current brand purchased
• Frequency of consumption in a day
• Believability of concept
• Relevance of concept to the respondent
• Attribute and benefit evaluations:
  • Is a good value for the money
  • Would help me to….(do something more easily or better)
  • Would benefit me… (tastes good or is something I would consume everyday)
  • Has attractive packaging
  • Would improve my health
• Source of purchase (location)
• Demographics

Sample Concept Test Survey

Concept testing is most often used in concept development to test the success of a new product idea before it is marketed. Concept analysis is often used as one step in the process of providing “proof of concept.”
(Smith and Albaum, 2010)

Concept tests provide the direction and guidance necessary to identify and communicate key product and service benefits and uses, as well as product specific implementations such as packaging, advertising, sales approaches, product information, distribution, and pricing.

Concept tests identify the perceptions, wants, and needs of the product and service users and decision makers. You can integrate each of these dimensions into a concept test survey.

A variety of concept testing survey formats are available to implement. Each helps to minimize risk and maximize revenue when introducing all types of goods and services to the market.

Why Concept Testing Matters

Concept tests reshape and refine ideas so they have greater potential for market acceptance. Specifically, concept tests:

1. Indicate concentrated segments of the population to which the product appeals.

2. Assess the relative appeal of alternative product ideas/configurations/positions. Features desirable to the targeted market segments are highlighted.
3. Provides necessary information for developing the product and its promotion, distribution, and pricing.

Concept testing provides insight for designing a more optimal product or service. Furthermore, the success of new product ideas can be tested before being marketed. Concept tests are best conducted when the concept has been developed
to the point that it conveys the product attributes, the desired positioning and the intended brand personality.

Actual product concept tests evaluate the core concept through exposure to a story board, sketches, graphics, or even a product mock-up.

Concept tests are pre-design and differ from the pre-market tests and the test markets. These latter check points are conducted later in the development cycle—based on finalized product designs. Pre-tests and test-markets are final verifications to avoid a major market error.

The term concept test is also sometimes thought of as a “proof of concept,” which refers to market viability and market share projections that are often required for venture capital funding.

Concept tests, when made actionable, will laser focus your products and priorities. Specifically, concept tests have the ability to improve the product, shift priorities, and increase the product-market match as explained in the following examples:

• Roadmap of development priorities: Development plans are cancelled for three new features because of low importance to customers and high associated development costs.
• Scheduling and launch priorities: Based on the concept test, a product is given higher priority for launch because of a demonstrated greater market potential. The concept test identifies not only market potential but may identify problems leading to potential failure at launch.
• Potential new uses: New product uses are discovered through a new product concept test that may potentially double product sales.
• Product Superiority: New features are added to the existing product to meet the demands of customers before the competition responds. The proposed features of greatest value now receive top priority for development and implementation. The product gains a competitive advantage by further distancing itself from the competition. Concept tests help you prioritize and implement ahead of the competition.
• Eliminate product deficiency: The current product design is evaluated and performance tests reveal flaws in the design and implementation. This information is verified in the new concept tests.
• Promotion planning: Concept tests combined with market analysis provide understanding of who is buying and where they can be reached. Most importantly we identify the message that motivates customers to respond.
• Increased profitability: Concept testing shows that we are delivering the best value in the market and have room for a 10% increase in price for the new product

Not All Concept Tests Are Equal

A variety of concept test approaches exist. Each has a different objective and can provide a variety of benefits. Here are the most important of these approaches.

New Product Concept Tests
Identify the benefits most important to customers and the features that are most likely to lead to the fulfillment of that promise. Features can be categorized into “need to haves” and “nice to haves.” Customer needs must be identified and prioritized for product development and communicating to the market. This type of concept test can also test customer initial reactions to the concept (Reaction and Adoption Test ).

Product Modification-upgrade Tests
Reformulations, modifications, and upgrades can add new life to existing products and services. Here, identifying the optimal bundle of features is a priority. Differentiating and timing the release of new features that are “need to haves” vs. “nice to haves” is critical in creating products and services that are truly “New and Improved” and are “New Release” and “Upgrade” worthy.

Migration Path Tests
Many products and services offer upgrade or migration paths. For the customer, this is
 an alternative to the next new thing. Understanding the key features and benefits is critical in mapping consumer needs to the likelihood of upgrading an existing product or adopting a new technology. “Do benefits outweigh the costs and challenges of changing?” Features, Benefits, Brands, Image, Costs, and Training are but a few factors to consider.

Product Usability — Serviceability Tests
Concept use tests assess the use experience. How can the experience with a specific product or service be improved? This research can focus on a variety of areas—ease of use, similarity to current usage patterns, the ability to adapt and use critical feature implementations, and the congruency with current image, usage patterns, and service provisions.

Pricing and Incentives Tests
No one underestimates the importance of price expectations in new product adoptions. Price, incentives, bundling, cross product tie-ins, and cost mitigating factors, such as warranties and use agreements all change price perceptions and perceptions of value. Pricing and incentive tests determine the optimal pricing point for new product concept bundles and can estimate customer price acceptability curves.

Conclusion

Better decisions start with data.

Concept testing helps companies make better decisions for creating optimal products and/or services.

In my next post, I will show you how to conduct a concept test and give you a sample concept test survey.