In the last few years, we have had increased data and information on consumers—on where, what, when and how they spend, save and shop—and that has led to greater visibility, efficiency and effectiveness in targeting consumers. This data-based approach is necessary but not sufficient for true insight generation.
That requires data analytics to be combined with on-ground consumer engagement, observation and trend-spotting. The imperative for leaders, therefore, is how to get consumer insight into strategy development and deployment, whether it is in terms of innovation, communication or activation, or even choices around the organization and operating model.
We have identified six practical principles that can help in this journey.
Be clear on the key question: Are you trying to generate new insights or are you testing specific hypotheses? Both are useful in their own ways. But most of the times, teams focus only on the latter, and worse still, they tend to confuse the two.
As a leader, it is important to ensure that there is clarity on key questions and how they help solve a business problem. There is a difference in trying to understand why category penetration and growth have plateaued versus deciding between two flavours (or scents).
Talk to the ‘exes’ (experts and extreme users): Each company has a target segment defined by certain parameters. However, if a business needs to discover something new, it is insufficient to talk only to the ‘average’ target consumer. We would argue that engaging with the ‘average’ consumer has diminishing returns, especially in unearthing a breakthrough insight.
We have found that discussions with specialists in the field are extremely helpful to develop insights. For example, in hair-care, talking to a salon stylist and a trichologist uncovers interesting patterns.
Engaging with ‘extreme’ users (both heavy users and ex-users) is also instructive in defining the value proposition, as they provide important clues and cues as to what is working and what is not, the latter often providing richer information.
Listen to the extended team: Trade partners and sales teams engage with consumers daily and are a rich source of insight. One needs to develop a keen sense of judgement to filter their inputs (what is influenced by their quarterly targets as opposed to what is not).
The other part of the organization that interacts with consumers is the customer service/complaints team. Those service interactions are a treasure trove of how and why a product or its proposition does not meet user requirements and how it could.
Observe, then ask (repeatedly): What consumers really want, what they think they want and what they say they want are three entirely different things. Most research involves asking a template question, to which the consumer gives a perfunctory answer. Observing the consumer both while they are buying and using the product is essential.
As an example, in refrigerators, consumers don’t only use freezers for ice-making and frozen food, but also for storing masalas (using every cubic inch), which would influence the product design. Asking the consumer about her choice just as she has made it is critical. Don’t just accept “I like the brand” kind of answers, but ask follow-up questions. Why, for example. This can be very revealing.
Insight generation is a team sport: Consumer interactions should be done in teams of two to get a balanced perspective, reduce any biases and enable a tag team to do the active questioning.
Insight generation only starts during the consumer interaction, and the synthesis of the insight generated is an even larger team sport that needs different teams of two to come together. We have found that the facilitation of this synthesis requires skill and experience. It also needs to be actively planned for.
Travel across geographies (and time): Not all insight generation requires consumer interaction. We don’t suggest that what worked in the West 15-20 years ago is the lift-and-shift solution for India (or any other geography).
But it is helpful to study trends from different markets and understand why they happened. In online behaviour, inspiration can come from the East rather than the West.
In some non-technology categories, one could go to our roots and seek inspiration from our rituals and traditions, whether it is with regard to skincare ingredients or even building materials.
The right blend of data and analytics, consumer observation and questioning, trend-spotting and synthesis can create the magic potion of insight needed to ignite growth. And this needs CEO sponsorship.
These are the authors’ personal views.
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