Brand Central Station

Methodology Presented at La Londe Conference in Service Management Shows Service Indicators Can Predict Customer Potential

(from BIGResearch)
COLUMBUS, OH — (MARKET WIRE) – 6/1/2010 – A paper presented last Friday at the La Londe Conference in Service Management in La Londe les Maures, France demonstrates a new, non-invasive approach to behavioral targeting. This methodology developed by Professors Don Schultz and Martin Block (both of the Medill School at Northwestern University), using BIGreseach® Simultaneous Media Usage® Survey data, avoids online privacy issues by using services people subscribe to to predict purchase behaviors. The presentation demonstrated how this method can improve the predictability of purchase behaviors 20-70%.

The approach re-frames the whole question of behavioral targeting. Consumers often aren’t aware of electronic tags and “cookies” and such tactics can often be perceived as invasions of privacy. This research concludes that non-invasive service indicators – information consumers willingly provide via a survey – can be used to enhance existing behavioral targeting approaches at minimal cost.

“Relating service indicators to consumer purchases bridges the gap between services people use and the products people buy,” said Professor Don Schultz of Northwestern. “The example developed in the paper is only the tip of the iceberg and holds great promise for low cost, non-invasive predictability.”

Key Points – “Expanding the Success of Behavioral Targeting with Service Resource Availability”:

• Online behavioral targeting today is focused primarily on using “cookies” attached to web-based consumer searches. From these tags algorithms, are developed to estimate customer potential and then are used to deliver targeted advertising messages.
• The current system is generally based on a limited linear predictive model to generate results.
• This paper provides a methodology that extends and expands beyond tagging methodology to other, non-direct contact product categories.
• It demonstrates how adding commonly available consumer service indicators can be used to effectively increase the predictability of frequent and non-frequent purchases.
• In addition to avoiding privacy issues found in the current system, this methodology demonstrates the value of additional customer services resources as a method of improving general marketing capabilities.

Read the full complimentary paper: http://info.bigresearch.com

About BIGresearch®
BIGresearch is a consumer intelligence firm providing analysis of behavior in areas of products and services, retail, financial services, automotive and media. BIGresearch conducts the monthly Consumer Intentions and Actions®) of 8,000+ respondents and the semi-annual Simultaneous Media Usage® Survey (SIMM®) of 15,000+ respondents.

After posting my piece on Consumer 2.0, I received a Tweet from one of my friends on Twitter.

@BrandCentral – Consumers need to make companies stop taking us for granted.  We are your source of income – respect us, dangnabbit!

Not only did I find the Tweet to be interesting because I hadn’t seen “dangnabbit” spelled out in a while, but the sentiment of the post was indicative of a larger problem I see brewing for marketers in the future.  ”Engagement” is a big word circulating through the marketing universe at this time, but in reality, engagement requires two-way interactions between parties. Real interaction is built on a foundation of mutual respect.

And according to my informal survey of one and a just-released study of the nation’s political climate conducted by BIGresearch, Americans are feeling a little disrespected on all levels.

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BIGresearch just published a digest of their latest China Quarterly Panel (Q1 2009).  BIGresearch conducts regular consumer research in both China and the US and provides some interesting comparisons to consider.

The findings of this latest survey find that young Chinese (18-34 y.o.) hold many of the same opinions as their counterparts in the US.  The economy has been tough on them, too, with nearly half (47.3%) expressing their view that more layoffs are likely over the next six months and 22% of them contending that they are personally worse off than they were a year ago.

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BIGResearch just released the latest findings of their American Pulse(TM) survey and, no surprise, the economy has America’s pulse racing.

Key findings include:

• Nearly three out of five Americans say rising food and energy costs worry them the most.
• Close to sixty percent of those surveyed say they are having problems paying their bills.
• Almost 25% of those surveyed say their rent and mortgage payemnts are either late or in danger of falling behind.
• As a result of the financial stress, 71.3% say they have cut back on their spending and just over 40% are staying home for the holidays.

Not spreading the good cheer
While times are tough all over, more than two out of three Americans have no interest in seeing the government bail out the auto industry.  This reluctance extends to retired workers as well, with 58.5% of those surveyed saying “no” to bail out collars going to cover retiree health benefits.

You can learn morea bout what’s on America’s mind by reviewing the findings of the survey online.