Posts Tagged ‘data myopia’

Research Findings are Like Manure: They Work Better When You Spread Them Around

August 10, 2010

One of the biggest mistakes companies do when conducting marketing research is conducting it in a vacuum. At many companies, the marketing department will often execute a marketing research study for either its own information, or upon request from another department. The findings of the research may also be beneficial to other parts of the company, but rarely do departments share the information. This concentration of information often leads to silos and exacerbates organizational politics. Marketing research expert Larry Kilbourne considers this data myopia – the failure to share survey findings – one of “Seven Survey Sins,” referring to it as the “Mr. Magoo Syndrome.”

Repurposing research and sharing it within the organization produces immense benefits. The sharing of the information facilitates better planning, creates buy-in from and fosters consensus among cross-functional groups, creates accountability, avoids duplication, fosters a shared purpose, and enhances the company’s agility in responding to problems and opportunities. Imagine that an insurance company with a captive sales force wanted to conduct a survey of its sales office managers. Specifically, the insurance company’s marketing department wants to know how the company stacks up against the competition in various territories.

Specifically, the marketing department would like to know who each branch sales manager considers to be the three main competitors in his/her agency’s territory, the policy features that are most important to customers and prospects in that territory, an estimate of how many potential policy sales are lost to the competition in those territories, and where they feel their main competition is beating them in terms of product features and benefits. The marketing department conducts the survey and uncovers a wealth of information. Who can benefit from it besides the top executives who commissioned the research?

Each branch agency

The marketing department should start with each branch sales manager. The sales manager might want to know whether his/her problem with a specific competitor is unique to his/her office or common to several others. Moreover, the manager might want to know where his/her office stands with respect to the rest of his region or the entire company. The findings can also help the manager plan for improvement.

Actuarial and Underwriting

The insurance company’s actuaries can also benefit from the findings. If branch sales managers in the company’s Pacific Northwest territory complain of losing too many long-term care insurance policy sales to Insurer X on the basis of price or ease of acceptance, the actuaries can review the underwriting criteria and assess whether the company is being too risk averse in that territory, or whether Insurer X is being too aggressive.

Advertising

If the insurance company faces aggressive competition in certain areas, the Advertising department can benefit from changing its strategy in those areas. It might try advertising in different newspapers, utilize direct mail or email marketing, etc.

Human Resources, Training, and Recruitment

Sharing the findings of research can also shape a dialogue between branch managers and the home office to understand what is needed to increase sales. This can often result in a refinement in training and recruiting needs for various territories. For example, if the company is losing to Insurer X in the Seattle market, it may well be due to the experience of Insurer X’s agent force, which could be experienced insurance sales professionals, professionals with a successful track record in sales careers in any industry, or naturally extroverted people with a knack for selling. If this is the case, the insurance company’s HR department could start recruiting agents with similar characteristics. It may also identify ways to change performance requirements so that the company can get rid of underperforming agents. The company can also devise new training programs to increase agent performance, and create new incentive plans.

The list of groups within the organization with whom the marketing department could share the findings is far from comprehensive. Marketing research should never be conducted in isolation, but should be used for the greater good of the organization. Whenever a company conducts marketing research, it should always have a predetermined plan for what to do with the information, the departments that could benefit from it, and ideas on how to act on the findings, whether good or bad.

*************************

If you Like Our Posts, Then “Like” Us on Facebook and Twitter!

If you want to get more helpful tips like those offered in today’s Insight Central post, then be sure to check out Analysights’ Facebook page and “Like” us! By “Like-ing” us on Facebook, you’ll be informed each time a new blog post has been published, or when other information comes out. Check out our Facebook page! You can also follow us on Twitter.

Advertisements