Rebranding ProtectionUsing Research To Develop The Proposition

Protect Association Members Meeting

15th May 2015

Matthew Powell

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Agenda

1. Introduction

2. The impact of behavioural economics on decision making

3. What this means for protection

4. How research can help

Introduction

44

Background To B2B International

8 International Offices

Aim: To provide world-class market intelligence to the world’s

leading B2B companies

55

Services We Offer – An Overview

Segmentation

Customer Experience

Employee Engagement

Corporate positioning

Advertising Research

Branding

Market Entry / Expansion

Market Assessment

Acquisition Research

(New) Product Development

Pricing Research

Proposition Development

Methods We Use:

Telephone interviewing

Face-to-face interviewing

Postal surveys

E-surveys

Focus groups

Online focus groups

Online panels

Desk research

Mystery shopping

Ethnographic

The Impact Of Behavioural Economics On Decision Making

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Associations With Cardiff City

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• Israeli-American psychologist,

• Won the Nobel prize in economics in 2012

• Released this book in 2011, summarizing the majority of his research

Where Did Behavioural Economics Come From?

Whilst economics and psychology have worked in tandem for a long time, behavioural economics in its modern and popularised form can be attributed to Daniel Kahneman and his academic partner Amos Tversky.

Other notable authors on the subject include; Dan Ariely, Paul Dolan, Richard Thaler, Cass Sunstein and Malcolm Gladwell.

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System 1 & System 2 Thinking

Right brain – ‘System 1’ thinkingLeft brain – ‘System 2’ thinking

E.G. Common tasks such as driving a car.

E.G. Uncommon tasks such as choosing a mortgage.

In ‘Thinking Fast & Slow’, Kahneman introduces the idea of two different types of thinking

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System 1 Decision Making And Heuristics

“Heuristics are strategies using readily accessible, though loosely applicable, information to control problem solving in human beings and machines”

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System 1 Decision Making And Heuristics

“Heuristics are strategies using readily accessible, though loosely applicable, information to control problem solving in human beings and machines”

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Examples Of Heuristic Decision Making

Heuristic decision making uses short cuts to help speed up the decision making. •Representativeness heuristic – judging the likely outcome of an event based on how similar the prospects are to other similar events held in the mind – e.g. tattooed, shaved headed man, wearing Dr Martin boots

•Familiarity heuristic – assuming that the circumstances underlying the past behaviour still hold true for the present situation

•Availability heuristic - the likelihood of events is estimated based on how many examples of such events come to mind. Thus the familiarity heuristic shows how "bias of availability is related to the ease of recall."

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If People Often Use Pre-Existing Associations To Bypass Rational

Decision Making, What Impact Does It Have For Protection?

What Does This Mean For Protection?

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What Do People Associate With Payment Protection?

Annoying phone calls

“Have you been miss-sold”

Scams

Scandals

Bank fines

PPI claim adverts

Big refunds Am I being tricked?

If someone is deciding whether to take payment protection, they have a wealth of heuristic associations that might

influence them

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These Are The Current Associations The People Have On The Surface

Banks fin

es Scandals

Am I being tricked

Protection

• We need to understand what ‘protection’ actually means to the end customer.

• What are the positive associations that end-customers have?

• How can these be used to develop the proposition?

Negative top-of-mind associations

This is where research can help

How Can Research Help Do This?

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The Usage Of Qualitative And Quantitative Research

Focus groups

In depth interviews

Ethnography

Telephone surveys

Online surveys

Behavioural data

Tools & Techniques

Qualitative Quantitative

ExplorationUnderstanding the how and the why?

MeasurementQuantifying the views

of the market

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When Developing A Proposition, We Look At The Overlay Of Three Areas

Customer’s needs, wants and desires

Your Features

Competitor’s

Features

2020

When Developing A Proposition, We Look At The Overlay Of Three Areas

Customer’s needs, wants and desires

Your Features

Competitor’s

Features

YOUR UNIQUE POINTSWhat do they like and value

about the offerCustomers want these and you

provide them. This is your “uniqueness” which

increases the appeal of your concept

COMPETITOR’S UNIQUE POINTS

Who are the competitors?What are the alternatives?How do they decrease the likelihood of your concepts

success

REQUIRED POINTSWhat are the required features for all customers

who are looking for this type of proposition?Customers want these and everyone provides them.

You need to offer these to be in the market.

YOUR IRRELEVANT POINTS

What are the elements that the market does not value?Can these be left out? Can they be communicated in a

different way?

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What Do We Need To Do To Understand This?

• Listen to the customer• What do they see as the benefits of protection? • What are the emotional ties they have to it? • What are the positive & negative

connotations of protection?• How can this knowledge be used to inform

messaging & proposition?

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Where Research Fits In:

Customer’s needs, wants and desires

Your Features

Competitor’s

Features

Qualitative researchExploration of

attitudes and needsQuantitative

researchMeasuring preference

Segmentation of needs

Qualitative & Quantitative

Explore and measure attitudes towards

developed propositions Internal workshops• What can we really

offer• How would we sell our

solutions in our own words

• What would our ideal offering be to our

customers

Qualitative Research Attitudes to substitutes,

alternatives, and what drives preference

towards these

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Using Segmentation To Dig Deeper

Needs

Behaviour

Firmographics

Hard to do, but hard to

copy

Easier to do, but

easier to copy by the

competition.

Segmentation type

Needs - Most discriminating – but most difficult to find – drives communications, and gives a way to deal with customer types. Sometime not so easy to put people into each segment without speaking to them

Behavioural – fairly discriminating – segments are easy to understand. Can be identified using CRM system an internal data.

Demographic – least discriminating – but easiest to determine. Easy to apply, as segments are defined by the company type.

There are three main approaches to segmentation – each with their own

strengths and weaknesses:

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Example Of Three Needs Based Segments

Quality Seekers(20% of respondents)

Price Fighters(30% of respondents)

Peace of Mind (50% of the market)

Key Features of Segment:• Want reassurance

• Need detailed advice• Prefer a personal touch

• More likely to buy if fully informed

Key Features of Segment:• Focus on getting the best price possible

• More resistant to purchasing protection insurance• More likely to be small customers

Key Features of Segment:• Strongly favour high quality products and services at the expense of cost

• Most likely to spend more• Value trust and honesty• Prefer big brand names

• Build messaging around the needs of the segments• Choose which segments to focus on

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In Summary: The Research Steps

Explore

• Use qualitative research to get a detailed understanding of what protection means

• What are the positive associations that can be used to re-position protection

Quantify

• Use survey research to measure these associations – which are most prevalent & impactful

• Segment the market based on needs

Develop and refine the message

Which positive heuristic associations can be used?

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Remember: Always Keep The Customers’ Needs At The Core

M A N C H E S T E R L O N D O N N E W Y O R K C H I C A G O D Ü S S E L D O R F B E I J I N G S H A N G H A I S I N G A P O R E

B2B InternationalEuston Tower – Floor 33286 Euston Road, London, NW1 3DP

Tel: +44 (0) 203 463 8750 Fax: +44 (0) 203 463 8753E-mail: info@b2binternational.comWebsite: www.b2binternational.com

Thank you for listening.