Tag Archives: consumer behavior

Warning: Innovation isn’t Comfortable

Nearly every organization I have worked with, either as an employee or as some form of consultant, wants to be known as “innovative.”  Organizations want to produce innovative products or services, or they want to be on the leading edge of <insert area here>, or they want to be innovative places to work such that they draw the greatest talent to their doors.

So nearly every organization wants to be innovative, but truly, very few ever achieve innovation.  Why is that?  Why is it so difficult for an organization, of any size, to be “innovative?”  After years of working with and for several organizations, I finally have seen the recurring patterns that thwart innovation.  I believe I finally have found the answer.  Are you ready?

Innovation isn’t comfortable.  Innovation doesn’t follow the process.  Innovation is chaotic.

That’s it.  No need to read further.  Okay, for those of you with time on your hands, a bit more explanation, by way of example.

When it’s time to hire in new senior level employees, organizations are often inclined to hire “outside-of-the-box” thinkers.  These individuals are energetic, hard-working, and have an internal passion for the business, whatever it is, that no typical worker can understand.  They tend to come into an organization with a bombastic flair and go forth breaking all the rules.

For the first few years, the typical workers who manage the processes tend to “chuck it up” to the short tenure of the innovative-driven hires.  These innovators simply don’t know the processes.  Why in no time at all, think the process workers, the innovators will conform and fill out the paperwork and wait in line just like the others.

As the process workers tire of the unprocessed innovators, the apple cart upsets.  The process workers refuse to move forward unless the process is followed strictly.  The innovators refused to move backward to processes that worked well for the last generation of customers, but that won’t work for the next generation of customers who too, are beginning to tire of the old product or service and looking for whatever is new and exciting.  Internally, the process-driven are at odds with the innovation-driven, and someone must win.

Along comes executive management.  What do they do?  The most common reaction I have witnessed is that executive management continues to shout “innovation” while holding tightly to the reigns of process.  What follows are closed-door meetings and sensitivity training and team-building exercises.  And in my experience, it never works.  The end result typically finds the highly-mobile innovator moving on to the next organization where the executive management there is also courting innovation (and the scenario often repeats itself).  In addition, the departing innovator leaves behind legions of supporters who got excited and stuck out their necks in the name of innovation wondering what the repercussions will be.  Will the process workers punish the innovator-supporters?  Or will the process workers simply relish their victory and go back to dotting their “i’s” and crossing their “t’s” leaving the innovation-supporters to grieve the loss of their innovator?  And how will executive management react?  Will they again seek an innovator or will they find it more comfortable to put their heads down and just follow process?

The morale of this story?  Executive management – it is up to you to turn the dream of innovation into a reality.  You’re either for it or against it.  In this case, there is no middle-ground.  If you truly desire to be an innovative organization, beware.  Innovation is uncomfortable, and by definition, it upsets current processes.  In fact, sometimes, innovation turns processes upside-down.  It creates chaos and if your organization is not set up to be comfortable supporting and managing chaos from the top down, innovation may not be your thing.

Not every organization needs to be an innovator.  Arguably, most are not, yet non-innovative companies can still be profitable by exercising whatever the competitive advantage is that they maintain.  Non-innovative companies can still be good places to work.  It’s exciting to be an innovative organization, no doubt.  They get all the press in the trade rags and their employees are often on the conference speaker dockets held in exotic places.  But it’s more comfortable adopting innovation slowly and tweaking processes.   So what’s it going to be –  comfort or chaos?  Pick one.

Market Research Survey Silliness

I’ve spent more than a decade working in market research, both quantitative & qualitative research, and still more years working with market research data in one form or another.  So, I’ve seen maybe not it all, but a whole lot.  I have managed and analyzed hundreds of surveys conducted by mail, on the phone, and online.  I’ve attended and moderated hundreds of focus groups.  I’ve managed segmentation surveys, discrete choice surveys, and I’ve randomized this and that and versioned that and this.  I’ve applied the unknowledgeable-management consultant’s favorite – conjoint analysis – and regressed and forecasted.  I’ve observed natural consumer behaviors, stimulated behaviors, and followed people while they operate cars, computers, and cell phones, and while they dined.  I’ve talked to people about death and dying and about surviving.  I’ve talked to people about how they shop, why they shop, and why they don’t like to bend over to pick up items on the bottom shelf when they shop.

My career gave me a fascination for consumer behavior, from the little decisions they make to the big, life changing decisions.  People are fascinating, and what makes it even more interesting, they very often don’t do what they say they do – imagine that!  Yes, consumers are captivating and indeed, understanding them and catering to them is the product’s best route to success.

I’m in a bit of a different professional position these days.  I use market research data, but it is of the most basic kind.  I currently conduct and use some customer satisfaction and general feedback data with a few qualitative interactions thrown in for good measure.  Yet as a supporter of market research and a consumer myself, I continue to complete surveys whether it’s a phone call at night, an online survey, or one in the mail, provided it is a legitimate survey and not someone trying to disguise themselves as a survey and then sell me a product or a politician.  I continue to respond as a fiduciary duty to my former profession and just to be helpful to the organizations out there attempting so dutifully to figure out their customers.  I continue to support data collection, even when it is excruciatingly painful.  And that brings me to this post.

Earlier this fall, I received a survey invitation via email for the purposes of providing feedback on school supplies.  What timing!  I had just completed purchasing school supplies for my son, and I will be in the market for the next 16 years by the time my youngest gets through high school.  This survey, I thought, would be interesting.

I go through the normal procedure of following the link.  I answer several demographic questions about my age, gender, household make-up, age of my kids, and income levels.  I answer these questions without hesitation because I know that I am one of probably 1,000+ answering these questions and that the 25-year-old analyst reading this data is not going to care about who I actually am (nope, not even my income level) for I am just one of a thousand.  (Just so you know, analysts care about percentages of the total sample; they don’t care about individuals in these instances.  Yes, you are special, but so are the other 999 people completing the survey.  It’s okay to let people know your household income and that you are a boy or girl, and etc. – trust me!  Now if they ask for a social security or credit card number – that’s different:  shut the survey down and/or hang up the phone – that’s not market research, that’s a scam.)

So I’ve now answered the demographic questions, and indeed, I am one of the target customers from which feedback is desired.  I am asked to continue with the survey.  I then answer several questions about which products and brands of school supplies I bought, which ones I considered, and from what stores I purchased the school supplies.  I was asked about how much I spent and how much I had intended to spend.  It was a nicely designed survey and I felt like I was really cruising through it and helping out.  And then it began – I fell into survey hell.

First, there was a battery of questions for every single product I bought and every single brand I considered.  Then there were batteries of questions for impressions of brands I had not considered.  The batteries were endless and included statements where I was to rate my agreement with things like:  “I feel like a leader for having brought this brand.”  “Others will admire me for buying this brand.”  “This brand is like me.”  “This brand is the only brand for my child.”  “This brand will make my child more successful.”  “I talked to friends and colleagues about this brand.”  “I encouraged others to buy this brand” – and many more questions along those lines.   Multiply these brand behavioral questions times the brands I considered and/or was aware of, times the number of back-to-school supplies I ticked off the list that I bought.  This was in fact, a survey that I may be completing for the next 16 years!

Yes, I was in survey hell, and not just at the surface.  I was in the hottest most uncomfortable level with no hope of getting to the surface anytime soon.  It is now several weeks later and having taken some time to recover from this experience, I have some advice to offer those of you developing surveys for your product or service or working with organizations that are doing so.

First of all, good market researchers/questionnaire designers realize that you never, I mean never, put people through endless list of questions on everything they did.  You randomly select a number of products for someone to evaluate.  Why?  Because I felt committed to answering the full survey, but by the end, I was clicking answers just to get through it (sorry about that – I still feel the guilt of providing bad data, but I just couldn’t take it anymore); others will just simply exit the survey.  There are several questionnaire programs that will randomly select a handful of items for a consumer to evaluate if it is the case that a typical consumer has purchased or considered more than 5 or 6 items and these programs will ensure that you have enough sample to analyze each item.  Ask consumers to evaluate more than 5-6 items with associated statements, etc., and your data will be flawed.  Good researchers protect the validity of their data and the sanity of their respondents.

Secondly, let’s think about the behavioral and brand leader issues related to buying a PENCIL!  Buying pencils and erasers are much different than buying, for example, a car, or apparel, or kitchen appliances or major electronics.  The latter are big ticket or emotional purchases that consumers may use to define themselves and that they may talk about with friends and colleagues.  If I’m going to be a brand leader or influencer, it’s going to be with these types of ego-type purchases – a pack of standard #2 pencils?  Not so much.  You might do some brand loyalty and behavioral segmentation on back-packs or on PDAs or other higher-profile supplies, but on pencils?  I’ve no clue what brand I even purchased for goodness sake!  But, I still was presented the battery of questions because I was familiar with some pencil brands.  Whoever designed this survey somehow believed that it was legitimate to apply brand and behavioral attributes/measurements used to describe the purchase process of a muscle car ($40,000) against the purchase of a pencil (40 cents).  Does that seem logical?  Remember that analogy:  the clock-builder will know how the clock is built, how it keeps nearly precise time, how the gears (now chips) work together, and about when it will need repair.  The consumer will know – what time it is.  I’m guessing that same analogy can be applied to the #2 pencil.  Good researchers question their logic and the logic of their clients who often get so caught up in their product they don’t understand its role and importance in the lives of everyday consumers. 

Third, and this one is important, good market researchers need to understand how the purchase is made prior to measuring and interpreting actual purchase.  The survey should have asked me how I made decisions about the purchase of school supplies.  You see, my school district, and all the ones around me (I talked to other parents, yup, I’m an “influencer”), gave me a list of supplies for my elementary-aged son.  They asked for specific brands and sizes and colors (emphasizing “washable” products, of course) because what happens is that we give the entire bag of supplies to the teacher who puts them in community bins.  The kids, when they need it, just get their pencil or marker from the bin.  Then they return it when they are done using it.  It’s a great idea – things don’t get lost, no need to label, there are not equity issues (all the same brand and size and color) and for the kids who cannot afford supplies, they are not left without.  So all this “brand leader/influencer” stuff the surveyor forced upon me?  Unfortunately, it’s all bad data.  If this bin trend for elementary students is a wide one, the individuals that should be surveyed are the teachers who are making the brand decisions, not me.  Good researchers do some research before they do the research.

So if you are a product manager or a market research consultant, I beg you, please consider your product, the product purchase process, and your consumers.  Make it easy for us to provide you good quality data.  Fewer and fewer people are responding to surveys, so please don’t push away those of us who still do respond.  And I should also say, lest I receive emails from pencil managers, I’ve nothing against the #2 pencil.  Why I am one of the few adults who still uses a pencil – not a mechanical pencil that breaks every time I use it – a real, sturdy, old-fashioned pencil that requires a sharpener.  Hmm, I wonder what type of consumer-segment that puts me in. . .