Author: Jay Zaltzman

How to deal with low consumer sentiment

The economy has been improving, yet consumer sentiment remains surprisingly low: consumers think inflation is worse than it actually is, and they are worried about their future.  Younger people in particular are worried.

A recent McKinsey study on holiday shopping plans found:

  • Consumers are trading down – buying fewer and less expensive items.
  • They are looking for better prices and promotions (even more than usual).
  • They are less likely to splurge.

(One interesting twist: many Gen Z consumers plan to pay extra for next-day or same-day delivery.)

Here are some of McKinsey’s recommendations for marketers (which I think will apply beyond the holiday shopping season):

  • Inspire beyond promotions. As consumers grapple with whether to splurge or save this year, retailers have an opportunity to inspire their customers through storytelling. Focusing on the experiences that come with a purchase—such as crafting for the holidays, setting a beautiful table for family gatherings, or indulging in self-care—may motivate purchases more effectively than relying solely on discounts. To achieve this, retailers should tailor their communications by channel. For example, video content on social media that highlights the benefits of a product may resonate most deeply with consumers who are comparison shopping.
  • See demand generation through the “ninth inning.” As shopping journeys are becoming increasingly omnichannel, retailers should meet customers where they are to capture them throughout the holiday shopping season. Retailers are using new technologies, such as AI, and communities, such as store employees and micro-influencers, to deploy curated and personalized content online and at scale. In-store experiences can be bolstered by digital enhancements, such as augmented reality apps and cashierless shopping. Meanwhile, live stream shopping is also gaining traction, especially with younger consumers.
  • Personalize promotions for consumers. Leading retailers focus on targeted pricing and personalized offers to deepen customer loyalty, based on a comprehensive view of individual customers. This requires having a baseline understanding of when and what consumers buy and their sensitivity to price and promotions. As the holiday shopping window extends over a longer time period this season, a focus on driving customer loyalty is key. Targeted and personalized offers may also enable retailers to drive inventory sell-through while capturing incremental sales and profit.

Let’s find out what will resonate with your customers. Email me at info at bureauwest.com and we can discuss the best approach.

Sources: “US holiday shopping 2023: Consumer caution and retailer resilience,” McKinsey, 11/6/23; “Why are we so bummed about the economy?,” NPR Planet Money, 12/1/23

Posted on by Jay Zaltzman

Do better research

I just got back from the QRCA Worldwide Qualitative Research Conference in Lisbon – there was a lot of great content packed into 2.5 days, as well as a dinner at the amazing Palacio Conde d’Obidos, shown here.

It occurred to me that we were all there for the same reason: to learn ways to do better research.  And I think we did!  Here are a few of the highlights for me:

Lucy Foylan gave a great presentation about the differences between conducting research online and in-person.  Her agency, The Nursery in the UK, compared the two and they found the people were more likely to work to build consensus during in-person focus groups and more willing to disagree with each other during webcam groups.  While some might think that’s a reason to conduct all focus groups online, remember that consensus building also happens in real life.  Witnessing how participants persuade one another can provide valuable insights for our clients.  Depending on the objectives of the research, we might benefit from in-person groups, webcam groups, or a mix of both – where we examine the differences between the two.

There were several sessions about the impact of AI on qualitative research, including presentations by Daniel Berkal and Sidi Lemine, followed by a panel discussion which I moderated, with Simon Shaw, Tom Woodnut and Paul Kingsley-Smith.  Some of my takeaways:

  • Daniel talked about ways AI can be used so we can do our work better and more efficiently.  He uses Chat GPT to help with screener development, with ideas for discussion guides, and to summarize responses, and Adobe Firefly to create images for proposals and reports.
  • Sidi talked about using AI tools to recognize emotions in research participants and how they’re surprisingly accurate across cultures.  While a smile or a frown may mean different things in different cultures, it turns out micro-expressions are remarkably consistent throughout the world.  Specifically, Sidi said he likes the following tools: Phebi.ai, Emozo, Immersion.
  • While there are many great ways AI can help us in our work, our panel participants focused on what AI can’t do, and why we researchers are still needed.  One example: in a recent focus group project, participants all said they liked one of three concepts best, but I realized that was because it was the shortest concept, not because of the content of the concept.  If we had relied on AI to conduct the research, it would have taken those responses at face value and not probed further.  Simon said that we qualitative researchers are too humble and don’t do enough to explain the value we bring.  I agree!

Those are just some of the highlights.  The Worldwide Conference reminded me of how important it is for us to keep learning and adding to our skills.  The next opportunity is coming up soon: QRCA’s annual conference will take place in Denver, January 22-25, 2024.  I recommend it!  Register here: https://www.qrca.org/event/2024-annual-conference .

How can we add value to your next research project?  Email me at info at bureauwest.com and let’s discuss!

Sources: QRCA 2023 Worldwide Qualitative Research Conference: “A Hybrid Future: Exploring Human Interactions On- and Off-line,” Lucy Foylan; “Navigating Qual in the Age of AI,” Daniel Berkal; “Can Emotion AI Remove Bias in Global Research?,” Sidi Lemine; “What AI Can – And Can’t – Do For Qual,” Jay Zaltzman, Simon Shaw, Paul Kingsley-Smith, Tom Woodnut

Posted on by Jay Zaltzman

Marketing Shouldn’t Cost You Money. It Should Make You Money.

There’s an old quote from around a hundred years ago:

  • “Half the money I spend on advertising is wasted, but the trouble is I don’t know which half.”

The good news is that’s no longer true.  With digital marketing, we can tell exactly what’s working and what isn’t.  And that brings me to the point of this article: marketing shouldn’t cost you money.  It should make you money.

Small businesses that are getting started with marketing can start by spending small amounts – as low as $500 per month – and then take a share of the resulting revenue to ramp up their marketing and increase their income even further.

How does that work?  For example, let’s say a small solar energy company came to us for marketing.  We would start by looking at two things:

  • Who are their most likely customers?  (The target market)
  • What’s the best message to get their interest?  (Marketing content)

Based on discussions with the company, we might narrow the target down to people who live in a certain area, own their own home, and are at a certain income level.

Then we might brainstorm several different potential messages.  For example, we might focus on saving money. Or on the benefit to the environment.  We could then put content about each of those topics on the company’s website and social media pages and see which gets the most views.  And we would develop a few different ads with those different messages, run all of them, and see which get the most clicks.  We would then focus our advertising on the most successful messages.

Once the advertising results in increased revenue, the company can use that revenue to run the ads more often, creating a virtuous cycle that increases business.  This can work so well that some companies find they need to pause their marketing so they can keep up with the business generated.  That’s a good problem to have!

Would you like a “marketing machine” for your business?   Just answer some questions about your business below, and we will develop a marketing plan for your business at no cost to you.

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Posted on by Jay Zaltzman

How will AI impact your organization?

Image: https://pxhere.com/en/photo/1449225

The news about artificial intelligence has been coming fast and furious over the past six months.  The list of things AI can do is reason for excitement as well as some worry.  But either way, it’s coming.  Organizations that learn how to utilize AI will benefit, but those who don’t risk falling behind.

  • Shameless plug: I’m offering a 60-minute webinar, “Intro to AI for Business” and a full-day workshop, “How Your Company Can Benefit from AI.”  Details at the end of this email.

How can organizations benefit from AI?

  • Encourage employees to familiarize themselves with AI.  Learn the basics of what AI is and how it works.  Use AI chat bots such as Chat GPT and Bard.  Find out what platforms are offering AI-powered services for your industry and get demos.
  • One caveat to the above: have a policy about acceptable ways for employees to use AI, and in particular, what data may and may not be shared on an AI platform.  Be aware of data confidentiality considerations – these differ by platform.  For example, information shared with ChatGPT is used to train it further.  However, OpenAI announced it will soon launch ChatGPT Business which will enable organizations to keep their data confidential.
  • Customer experience: the fact that AI can analyze vast amounts of data with ease can provide opportunities for organizations to serve their customers faster, better or in a more customized fashion.  For example, could your organization use AI to handle customer questions more quickly?   Or anticipate their needs with tailored recommendations? 
  • Innovation: organizations can use AI to analyze the behavior and needs of customers and prospects and come up with new products and services.
  • Marketing: AI can help organizations target their marketing more effectively, as well as help reduce the time needed to create marketing materials.
  • Productivity: AI sharply decreases the time to accomplish knowledge work tasks.  This raises concerns about layoffs, but the benefit could also be used to increase productivity and to enable employees to have the work-life balance so many organizations say they aspire to.

Of course, the above is just a partial list, and each organization will have their own specific opportunities and challenges when it comes to AI.  I’m here to help with the following options:

  • Intro to AI for Business: 60-minute webinar that explains what AI is and how organizations can benefit from AI, as well potential pitfalls to be aware of.  Includes time for Q&A.
  • How Your Company Can Benefit from AI: A full-day, in-person facilitated workshop to brainstorm ways your organization can best utilize AI, including a review of the relevant AI-powered platforms currently available.

Email me at info at bureauwest.com and let’s discuss how I can help!

Sources: Bureau West research; “OpenAI previews business plan for ChatGPT, launches new privacy controls,” TechCrunch, 4/25/23

Posted on by Jay Zaltzman