Empathy set out to explore how NZ organisations are learning about their audience, and how they’re using the resulting information to make business decisions. We talked to 55 of New Zealand's best organisations, both private and public sector. This is what we found...

1. !
How organisations are
considering their audience
in business decisions
Prepared for all participants | 25 August 2009

2. Objective:
To explore how NZ organisations are learning about their
audience, and how they’re using the resulting information
to make business decisions.
2

3. But really, it’s about NZ organisations
coming together:
to learn
to share
to enable
to inspire
to collaborate
to grow stronger together.
3

4. More than 50 organisations shared our vision
Acland Holdings Limited (CITTA Design), ARANZ Medical Limited, Balle Bros Group, Bendon,
Biggie, Cadbury New Zealand, Christchurch City Council, City Market, Criterion Group Limited,
DDB New Zealand, Direct Broking Limited, Ecostore, Energy Efficiency and Conservation
Authority, Foodstuffs New Zealand Limited, Foot Science International Limited (Formthotics),
Formway, Glidepath Group, Good Health Products Limited, Health Sponsorship Council, Holmes
Solutions, Hospitality Standards Institute, Humanware Group, Industry Training Federation,
Jenkin Timber Limited, Kiwibank, Les Mills International, Lion Nathan International, Loyalty
New Zealand Limited, Macpac, Markhams, Meridian Energy, Ministry of Consumer Affairs,
Ministry of Economic Development, Ministry of Transport, Ministry of Youth Development,
Museum of New Zealand Te Papa Tongarewa, Natcoll Design Technology, National Institute of
Management, New Zealand Defence Force (Army), New Zealand Post, PGG Wrightson Limited,
Positively Wellington Tourism, Rembrandt Suits Limited, SALCOM Technologies, Southern Spars
Sport & Recreation New Zealand (SPARC), Statistics New Zealand, Television New Zealand
Limited (TVNZ), Tourism New Zealand, TOWER Limited, Unitec New Zealand, University of
Canterbury, Wild at Heart - Wellington International Airport Limited, Wellnomics Limited
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5. Every organisation that we spoke with
contributed something new and valuable
5

6. The starting 10
The number engaged in Insight R&D
The most common methods
Quant vs Qual
How you are generating ideas
Insight R&D in the design process
The use of tools for referencing your audience
Managing the value of research
Touching base vs engaging & collaborating
The value of front-line interactions
How audience understanding influences business decisions
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7. #1
The number engaged
in Insight R&D
7

8. Insight R&D Quantitative
research
Symposia Qualitative
research
Secondar y
research Media
Understanding Cultural
Emotional
People & Practice Social
in Context Physical
Motivations, Mindsets & Behaviours Cognitive
Drive community change
Inspire & infor m design
Improve organisational
perfor mance
Build in-house capability
Generate insights
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9. Nearly all of you are engaged in
Insight R&D to some degree
A mix of formal and informal
Some invested heavily (and some are not)
Some value it highly (and some do not)
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10. #2
The most common methods
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11. The four most common methods of gaining
audience understanding
Surveys
Focus groups
Having sales and support interactions
Analysing transactional data
11

12. Although lots of examples
of other kinds of research
12

13. #3
Quant vs Qual
13

14. Quant vs Qual
A lot of organisations use quant to answer most research questions
A few supplement quant with some qual
A few see clear differences in the benefits of quant and qual, and use them
in different situations
14

15. “We can see trends through [quantitative]
data, but it won’t tell us why.”
Sharon Daly, TVNZ
15

16. “Qual is about finding the insights and
why. Quant is about finding the scale of
the issue.”
Thinza Mon, DDB
16

17. “We only do quant if we need to validate
what we’re doing... if we need to
eliminate or reduce risk.”
Jandi Shennan, Lion Nathan
17

18. It’s harder to get to the
heart of the matter with quant
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19. “It is always tempting to cast your net as
widely as possible, thinking you can get
the biggest return. But it doesn’t usually
work. You end up making compromises
that don’t really suit anyone.”
Stewart Pegg, Humanware
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20. #4
How people are generating ideas
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21. For most, research is predominantly used...
For the evaluation of ideas not
the generation of ideas
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22. Ideas are often reactions to opportunities
to new technology
to new materials
to new legislative requirements
to new partnerships
22

23. Or reactions to issues...
to customer complaints
to cost cutting
to competitor movements
23

24. A few of you...
generated new ideas by using audience understanding
to predict latent or future needs, or to make
incremental product improvements.
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25. “The companies that don’t [find out what
the customer needs], well, I think they’re
risking their own future.”
Mitch Cuevas, ecostore
25

26. #5
Insight R&D in the design process
26

27. About half of you...
test concepts & prototypes when designing
and developing a product/service/campaign.
27

28. “How much we do and what we do,
depends on our brand proposition for that
product. It depends on the consequences
of failure.”
Campbell Junior, Macpac
28

29. #6
The use of tools for
referencing your audience
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30. About one third of you use tools to help you
reference your audience
Personas, mindsets, audience models,
segmentation models, design guidelines.
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31. For some, personas are created to
support specific product & service
development projects
31

32. CITTA Design: Winter 09, The Coopers
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33. A few of you want tools that help the
whole organisation to work together to
better serve your customer. Those
organisations recognise that they need a
holistic understanding of their audience.
33

34. An audience model for use
throughout the organisation
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35. #7
Managing the value of research
35

36. Many of you...
are not happy with the way you
manage your research.
36

37. Why?
Most of you said you have a lot of under-utilised research reports sitting on your shelves
Many find it hard to get sufficient funding for research, due to previous projects
Many feel you don’t get value for money
Many feel the findings are not translated into useful outcomes.
37

38. Cross-functional
Maximise value committee of 12
of research
Stage-gate process
Maximise value
of research
research committee
Rigorous debate
Wiki of findings
Monthly meetings
38

39. “It isn’t the department’s money. It is
EECA’s money. So we can all have a say
to ensure we get the most value out of
the spend.”
Dr Sea Rotmann, EECA
39

40. #8
Touching base vs
engaging & collaborating
40

41. Most organisations are...
touching base with their audience
41

42. Some are...
truly engaging with their
audience, and involving them.
42

43. Consulting, engaging and including young people
43

44. “Engaging with any audience requires
that you know the language they speak.”
Lorraine Gittings, Ministry of Youth Development
44

45. #9
The value of front-line interactions
45

46. The value of front-line interactions
“We hold it up top, not laptop.”
Permission pending
46

47. You might want to ask yourself
Do you value your front-line interactions?
Are you collecting anecdotes and data?
Are you sharing information you collect?
Are you using the information to uncover insights?
47

48. #10
How audience understanding
influences business decisions
48

49. costs
timeframes
audience understanding
and insight
last year’s best sellers
technical possibilities
other stuff
legislative requirements
competitor activities
organisation values
organisation capability organisation goals
49

50. Audience understanding is valued highly by many
50

51. “If you know a little more about
‘people’, the tills will ring out more...
day and night.”
Andy Millard, SPARC
51

52. But several note that research
isn’t always the answer
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53. “A focus group can dilute the end result,
especially if the brand is pushing the
boundaries or embarking on new
territory. The Elle Macpherson intimates
brand is about Elle and her tastes and
desires. There really is no point in getting
a focus group involved!”
Elizabeth Thomas, Bendon
53

54. “You need to research a certain amount,
but sometimes overruling the research has
been the best decision we’ve ever made.”
Chris Lamers, Loyalty New Zealand
54

55. About half feel that you have to be particularly
focused on your audience during the recession
55

56. “Now is when you absolutely have to
listen to your customers.”
Mitch Cuevas, ecostore
56

57. Research papers
‘How to’ guides
Magazine articles
http://blog.empathy.net.nz
57

58. thank you for listening
& most importantly for sharing.
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