So, You Think You Know Your Target Audience...
A foundational mistake is assuming that you KNOW your clients, that is, what they want, what they expect, how they view your brand, etc. Sure, you have a good idea, but it goes deeper than that. One marketing tactic that we have always supported is focus group research. Let’s briefly review what they are and how they are orchestrated, as well as share some real-life examples we have “lived” in years of performing this research.
Focus Groups Defined
Between 10-12 individuals are recruited to physically meet at either a research facility or other suitable location to gather in a room to discuss a topic and share their insights. These “respondents” or “participants” may or may not know who is funding the research. For example, the group could be current and/or past clients of a particular company and they would, obviously, find out who is behind the research. Conversely, if you’ve gathered a group to discuss what financial management software clients need, want, and use (because you sell such software), the respondents would likely not be told which company is behind the research. Detailed, non-leading questions and discussion points are painstakingly outlined and used by a facilitator during the two-hour session.
What Is Learned And How is It Used?
CIMply put, a plethora of useful information is gathered. Companies learn specific buying habits, how buying decisions are made, how their companies and competitors are viewed (branding), what consumers want and need in services/products, and on and on. Focus group findings can be used across the board at a given company:
- Where and how to most effectively advertise and market the company
- What product or service differentiators to include, expand or promote
- Which product or service features and benefits to expand or integrate
- How to steer the company’s strategic plan and its diversified marketing approach
Wow Moments, And “Great Ideas” Gone Awry
We’ve done a number of focus groups in multiple states and industries, and there have been wow moments at each. A sampling:
A large financial services firm envisioned creating a “one-stop-shop” under its roof, bringing together CPAs, attorneys, and financial advisors to jointly share information and services about their clients. When we pulled together a group of their actual current clients (all high-net-worth individuals), the idea was outlined (with the perceived benefits), and within minutes, it was clear that there was huge resistance to the idea. The overwhelming response? “I don’t want my CPA to be talking to my lawyer or my financial advisor. I would pull my accounts if someone wanted me to work that way.” Ultimately, the plug was pulled on what would have been a complex and expensive business model to create, saving countless dollars and heartache.
A decades-old company in the automotive services realm had us hold three focus groups to identify motivators for choosing one company over another. The unexpected twist was that the majority of the respondents said they had never heard of our client’s company when we discussed the brand image of several competitors and our client’s company. Turns out, when the client had reached the pinnacle of name recognition in the late 1990s, it pulled most marketing. “Everybody knows us now, business is good. Let’s cut marketing.” What they didn’t take into account were the 6,000 people per month moving into the city, people who had no way of knowing about this established brand.
The information that can be gathered from this formal research can be incredibly useful. We have yet to hold a focus group that didn’t ultimately pay for itself many times over by strengthening the company, increasing revenue, improving the client experience/satisfaction, etc. If you’d like to discuss investing in focus group research, we’ll share all the details and work with you to uncover hidden gem information.
Quote of the week:
Research is creating new knowledge.
Neil Armstrong
Perception vs. Reality – What do your clients think?
So, you think you know your buyers, customers, or clients. But do you?
Perhaps you and your company have done what you do for many years, and you’ve surely gotten a lot right to have been this successful. Let’s take a peek at a handful of ways to truly get to know your buyers, from simple and fast, to more extensive, but very important:
- Satisfaction surveys: These can be simple to orchestrate and will provide feedback quickly. You can create printed surveys to hand out or mail with a postage-paid return envelope. Alternatively or in addition to that, you can create an online survey (think SurveyMonkey). Offering a range of options to provide feedback will be most effective. Don’t have too many questions, and include a question mix that allows various types of responses – yes/no/1-10 scale and open-ended where answers are typed in.
- Focus groups: This is formal research where about 10-12 people are recruited to physically go to a location for a 90-minute conference table discussion about a company, product, service, or concept. Focus groups can also be held virtually. The participants usually do not know the company behind the event, so the open discussion can be encouraged. Specific, non-leading questions are gone through to pull information, viewpoints, and competitor insights from the group. We’ve seen the results of what was learned during a focus group literally save our clients hundreds of thousands of dollars.
- Buyer personas: Simply put, these are detailed profiles of your ideal buyers. The process is to interview several actual clients and others whom you think are your ideal target buyers to dive deep into their psyches to find out what is most important to them when seeking your products or services. This involves scheduling and having a detailed, one-on-one conversation/interview with them to ask a series of questions to get at the root of what they want and need, and why. After the interviews are completed, profiles are created outlining what these individuals look like (demographics) and details about their key decision factors, concerns, likes, dislikes, and priorities.
The insight gleaned from any type of marketing research can yield a treasure trove of information that can be incorporated into your business development and client care initiatives: Website content, marketing collateral, digital outreach (email campaigns, newsletter content, online advertising), etc.
Invest in the time to truly know and understand your customers and prospects so you can “speak” to them in the most effective way possible. If you need any help with marketing research, please reach out to me.
Quote of the week:
Marketing without data is like driving with your eyes closed.
Dan Zarella
Don’t Be a Focus Group of One
One valuable method of research is a focus group. While the purposes, processes and information collected varies per project, very generally, a focus group follows along these lines: A small group of specially-chosen people (perhaps 10) is assembled in a conference room to answer questions and have discussion about a company or organization and its products or services (existing or potential). Topics may include how they feel about the brand or a product, what may make them purchase, what they like or don’t like, etc. A professional facilitator leads the group discussion and keeps everyone on track, while carefully worded, non-leading questions are posed. The 60- or 90-minute session should lead to a bounty of information that can be used to help formulate, guide and steer marketing strategy and operations moving forward. Depending on the scope of the company or its operations, several focus groups may be performed, possibly in multiple markets and on an ongoing basis to track consumer changes.
In years of meeting with clients, every now and then, we encounter someone who could be characterized as a focus group of one. Here’s how it goes down: We have a potential marketing initiative to consider, say, radio advertising. A particular radio station reaches the ideal demographic, has rates that fall within the budget, etc. In short, radio advertising may be a very good part of an overall strategy. The client says, “But I don’t listen to radio. Why would I want to advertise there? Let’s not do that.” There’s a disconnect, not understanding that you may not “be” everywhere your customers are. Similarly, you may not read the local business publications, but your customers may. Sure, it’s fair and important to have a discussion about any particular marketing initiative to rule it in or out as one to implement.
What to do? Simple. Trust the guidance provided by your marketing and public relations professionals. They’ll help you cut through the clutter of what’s relevant and what will move the dial on growing your business. What not to do? Shut down an idea just because it wouldn’t work on you.
Always remember diversification. Your marketing mix should contain multiple initiatives working together to produce results, as measured by increased brand awareness and business activity, ultimately leading to increased value of the business and increased profits. Radio, or any other single initiative, is worthy of consideration beyond the focus group of one.
