Strategic Tracking - W5 · Strategic tracking provides clients with the opportunity to be proactive...

®

Strategic Tracking

©2013 W5, Inc. All rights reserved. 2

Measurement of business and industry-specific metrics over time allows for evaluation of growth and progress. This leads to decisions based on the analysis of trends, evaluation of past activity, and predictions for future ac-tivity. Strategic tracking provides clients with the opportunity to be proactive in their decision-making based on changes occurring in the environment from one measured period to another.

W5 believes in using robust and customized tracking studies to inform strategic business decisions around brand or advertising equity, consumer sentiment and behaviors, consumer loyalty, and call to action. W5’s strategic tracking studies are unique and can be customized to fit each client’s individual needs. These studies are typi-cally conducted on a quarterly, bi-annual, or annual basis to monitor business performance and the success of advertising initiatives.

Introduction to Strategic Tracking

W5’s approach to tracking research goes beyond measuring brand and advertising awareness to explore a changing marketplace, bringing depth and context to consumer behavior and attitudes. Companies need to not only understand their relative brand health, but also determine how their brand is perceived and fits within the marketplace.

W5 believes the exploration of a wide set of metrics over time helps companies understand what initia-tives have been successful and where future strate-gic thinking should be focused to improve positioning in an ever-changing marketplace.

W5 on Strategic Tracking Research

Benchmark Benchmark Benchmark

Wave 1 Wave 1

Wave 2

Q1 Q2 Q3

Strategic Tracking Research Flow

W5 on Strategic Tracking


Unaided Brand Awareness

Aided Brand Awareness

Consideration

Ever Used

Used Most Frequently

Strategic Tracking Research ObjectivesW5 believes that strategic tracking initiatives should address a variety of topics. Brand equity, advertising effectiveness, areas of business growth, new business decisions, and company press are all candidates for tracking, but the most common tracking topics are as follows:

Brand Health • How successful is the overall brand? • How do consumers interact with the brand? • How is the brand perceived? • How is the brand performing compared to the competition?

Advertising Effectiveness • Are consumers noticing advertisements for the brand? • How effective are the advertisements at improving perceptions and interaction with the brand?

Consumer Behaviors and Motivations • How is the market changing over time? • What are consumers looking for in a brand and product category? • What is causing changes in consumer attitudes?

Tracking these areas or a combination thereof allows for a broader understanding of brand health and how it relates to the category as a whole. By combining multiple areas of exploration into one study, the tracking study is well-rounded and more effective in informing future strategy.

Brand HealthA tightly structured brand tracking system may act as an effective business management tool yielding quantita-tive, “projectable” data to help make strategic decisions. Brand tracking identifies emerging trends in the mar-ketplace by demonstrating the impact of competing brands or products and their impact over long periods of time. Exploration of brand perceptions will define areas of opportunity and unmet needs. This will help determine success of current branding efforts but also identify future objectives for the brand.

Tracking can enable analysis of a brand across multiple metrics, including but not limited to awareness, familiarity, consideration, likelihood to purchase or recommend, brand affinity, and brand perceptions.

W5 often uses brand funnels, such as the one shown below, to illustrate the relationship amongst different brand metrics ranging from awareness to specific shopping behaviors. This can be helpful to understand the movement of consumers through levels of brand engagement. For instance, this funnel can help determine how many con-sumers who are aware of the brand actually use the products.

As we track these metrics over time we can understand how the brand changes and how consumers interact with the brand. Below is an example of how brand funnels can be used to visually represent various interrelated metrics over time:

Example Brand Funnel



This analysis can also be used to track competitive brands to show how each brand compares. Across multiple waves, it is possible to track how consumers’ behavior changes based on advertising campaigns, publicity, new product launches or marketing, and the overall evolution of brand perceptions. This can identify other success-ful brands and any consumer-satisfaction gaps in the category.

Advertising EffectivenessAdvertising campaign tracking (sometimes structured as “pre/post testing”) monitors an advertising cam-paign’s performance across many metrics including brand and ad awareness, product trial and usage, perceptions of campaign executions, and attitudes about the client’s brand versus competitors. The pur-pose of advertising tracking is to assess the combined effect of media and spending level, effectiveness of media buy or targeting and quality of the advertising campaign.

Some recent forms of advertising tracking focus on the relative performance of the brand’s ads versus com-petitive ads airing at the same time. As new advertising is introduced, tracking can be an important source of feedback for strategy evolution, advertising improvement, and evaluation of media placement. Additionally, campaign tracking initiatives can be structured and analyzed to monitor the relationship between brand image and media investment (ROI).

Consumer Behaviors and MotivationsWhile tracking brand health and advertising is helpful, it is also important to understand what drives consumer behaviors and decision making in the category. Tracking provides a solid basis to understand current consumers, predict their needs, meet their expectations, and follow their purchases as well as their behaviors and attitudes about shopping in general, specific to a category, and particular brands.

By tracking the attitudes and behaviors towards a category along with brand attitudes, clients can determine whether perceived success is based solely on brand performance or overall category success. These measures can help when planning brand strategy to determine whether a brand needs better positioning, products or new products to fill in category gaps.

• What advertisements have consumers seen?• Where have consumers seen the advertisements?

• Does the advertising resonate with consumers?• Do they find the advertising appealing? Eye-catching?• Do the advertisements relate to them and their lives?• Do the advertisements elicit positive or negative emotions?

• Does the advertising improve consumers' consideration?• Are consumers likely to visit or purchase more because of advertisements?• Are consumers more likely to recommend products or services to friends and families as a result of the advertising?

Call to Action

Advertising Awareness

Perceptions ofAdvertising

Example Advertising Assessment Measures



Online Quantitative Research MethodologiesW5 believes that looking at results of a tracking initiative over equally spaced waves – pulsed tracking – is typi-cally the most effective way to see movement across the metrics. Analyzing results based on longer periods of time allows W5 to see differences based on large amounts of information. Using a smaller time frame can show changes based on chance rather than fact, and can therefore be unreliable.

Though W5 normally conducts analysis by waves, tracking studies can also be conducted successfully through continuous interviewing. Determining the best approach is dependent upon the research objectives and the expected rate of marketplace changes; for example, the launch of a new advertising campaign. W5 believes both types of measuring strategies have merit and should be considered and customized for each tracking study.

As each study is unique, employing standard timelines (yearly, quarterly, monthly, etc.) is not always appropriate. It is important to customize the timing and methods of data collection and analysis when conducting strategic tracking studies to best fit the client’s needs.

Platforms for Conducting Strategic TrackingThere is no universally correct way to conduct tracking. One challenge with standardized tracking studies is that they are not designed with the client’s specific goals or strategy in mind. A “one size fits all” research approach often does not provide enough detail to adequately determine success. W5 has a range of options when conducting strategic tracking research so each study develops the best approach for the client’s research objectives.

Methodology Benefits

Pulsed Tracking

• Provides concentrated insights in a short time interval to provide highly precise pre/post measurements for specific flights of media advertising or to coincide with media schedules

• May be strongly biased if something negative occurs just as a wave of interviewing is conducted

• Offers a somewhat less expensive option

Continuous Interviewing

• Provides a complete record of measurements over time with no gaps or missing time periods in the data

• Evens the effects of short-term disturbances such as adverse publicity, product introductions, bad weather, etc.

• Provides a good monitor of competitive information, since the interviewing is ongoing and not biased to the media schedule of one brand or campaign



Qualitative Research MethodologiesQualitative methodologies can be used both as a “pulse check” on their own and in tandem with online quantitative studies. When tracking initiatives focus on complex behaviors or a small, niche market, qualita-tive research can be particularly useful. While quantitative tracking is a more rigid approach with a consistent approach and outlook, researchers can apply qualitative research to keep their fingers on the pulse of the marketplace without creating new studies. Tracking through qualitative methodologies is conducted in waves rather than continuous interviewing which can sometimes be just as effective as continuous tracking when exploring dynamic markets.

When conducting qualitative tracking research, methodologies such as focus groups, in-depth interviews, online bulletin boards, or online ethnographies may be used depending on specific research objectives. In-person qualitative research, such as focus groups and online bulletin boards allow for open-ended discussion and confirmation of trends in attitudes, behaviors, and perceptions while online ethnography allows W5 to conduct a pulse check on consumer sentiment and discussions outside a research facility or context.

Any of these qualitative research methods can enable researchers to do the following:

• Understand nuances in consumer behavior • Dissect layered or complex interrelated behaviors and processes • Understand shifts in drivers and motivations, including new, emerging products or competitors • Explore how outside forces act upon consumer attitudes and behaviors

Precursory qualitative research can be con-ducted prior to an online quantitative survey, especially when clients want to explore con-sumer preferences, attitudes and behaviors. This type of collaboration of qualitative and quan-titative research can be conducted for each wave in the tracking process or as a preface to the overall tracking initiative.

Research through Mobile DevicesWhen appropriate and based on specific study objectives, W5 conducts surveys via wireless devices such as tablet PCs, iPads, or mobile phones. Using tablets to collect survey responses imparts key benefits, including rapid data col-lection and high response rates.

This type of research tool provides a way to elicit responses while consumers are participat-ing in activities. For example, using a mobile device, consumers can react to new television advertising while it is happening or provide their opinions when shopping. It allows for communi-cation to occur in real time as consumers are participating in everyday activities which can provide more beneficial data depending on the research objectives or target. This data can be tracked over time to monitor shifts in brand perceptions and consumer behavior.



Analysis and ReportingW5 believes visualization of tracking data can be the most effective way to understand and explain large amounts of information collected over time. Examples of different types of visual tracking reporting W5 can produce are shown below:

To the right is an example approach to tracking brand awareness of three dif-ferent brands by quarter and month. This approach not only presents important data points, but also explores different relationships. Showing competitor scores on the same chart provides a depiction of the overall marketplace. Including data from multiple quarters makes it possible to explore how different strate-gies put forth throughout the year affect awareness levels.

The graph on the right is one of the many ways W5 communicates performance of brands across multiple brand attributes per wave. By showing both ratings used to calculate Top 2 Box scores (6 and 7 on a seven-point scale), it is possible to visu-alize and monitor both Top 2 Box scores over time as well as “extreme” Top Box ratings (score of 7 on a seven-point scale).

Because tracking is not only limited to awareness and brand perceptions, the chart to the right illustrates how tracking can be performed for any type of study. The pie charts represent relative sizes of different clusters of consumers defined by a segmentation study. This visualization clearly identifies shifts in segment sizes to understand how the market is changing over time. This information can then be used to reevaluate targeting and future strategies.

100%

90%

80%

89%86%

66%

56%

75%

70%70%

60%

50%

40%

Q1 Q2 Q3 Q4

Awareness of Client Brand and Competitors by Month

Performance Across Brand Attributes (Top 2 Box)

83% Q1

Different from other stores

Feel smart shopping there

Buys items in one place

85% Q2

88% Q3

90% Q4

79%

81%

84%

85%

82%

77%

80%

86%

13%32%

30%25%

13%

35%

25%

27%

Wave 1 Wave 2

Segment Proportion Comparison

Quality Hunters

Social Followers

Money Savers

Comfort Lovers

Quality Hunters

Social Followers

Money Savers

Comfort Lovers



Perceptual MapsPerceptual maps help visualize how brand perceptions relate to one another across a variety of metrics. The map to the right illuminates how brands com-pare to one another across an array of attributes or how a brand is perceived across attributes relative to their per-ceived importance. With tracking, these results can show progress over time and determine the success of current efforts. Mapping provides a good way to report results but also helps analysts discern meaningful insights to aid in the presen-tation of strategic recommendations.

This example communicates the rela-tionship between attributes pertain-ing to a retail store and how they may vary in importance or how consumers perceive the retail store is performing across these attributes over time.

Convenient Locations

Good Value

Brand Names

ItemsIn-Stock Good Assortment

Wave 1 Wave 2

Fun to Shop There

Clean Stores

Buys ItemsIn One Place

Good Specials

Importance

Performance

Example Perceptual Map by Wave

SWOT AnalysisSWOT analysis provides a framework that allows clients to focus on brand strengths, minimize weakness, and take advantage of opportunities while warding off potential threats. This information, along with what is learned through perceptual maps, can reveal what is important to consumers and how they perceive competitors in the marketplace relative to each other.

The SWOT analysis addresses questions such as those in the following table:

Conducting multiple waves of tracking research illuminates changes over time to provide invaluable context and applicability to SWOT insights. As perceptions of the brand or advertising change over time, the impact on the strengths, weaknesses, opportunities, and threats can be proactively monitored.

For example, the SWOT analysis on the next page could be used to track attributes of consumer interest when choosing a retail store. By using SWOT analysis, it is possible to understand the perceived areas of strength and opportunity in the retail space and explore movement from one area to the other.

Strengths to LeverageWhat are your competitive advantages?

What relevant resources do you have?

What do consumers see as your strengths?

Weaknesses to MonitorWhat do consumers believe you do poorly?

What promises are you seen as not delivering?

What pitfalls do you need to avoid?

Threats to ImproveWhat obstacles do you face?

What is your competition doing well?

Do perceived weaknesses threaten market share?

Opportunities to MaintainWhat are good opportunities to pursue?

What trends provide new market opportunities?

What weaknesses in the market can be exploited?

Strengths

Weaknesses Threats

OpportunitiesWave 1

• Convenient locations

• Good value

• Good assortment

Wave 2• Good specials


• Good assortment

Wave 1• Items in stock

• Clean stores

• Good specials

Wave 2• Good value

• Buy items in one place

• Advertising

Wave 1• Fun to shop there


• Items in stock

Wave 2• Helpful staff

• Brand names

• Fun to shop there

Wave 1• Quality of products

• Brand names

• Helpful staff

Wave 2• Advertising

• Quality products

• Clean stores



Additional AnalysisWhile perceptual maps and SWOT analysis help visualize relationships between brand metrics, W5 often finds it appropriate to explore these relationships further using predictive multivariate analyses, such as regression. Regression measures the strength of the relationship between one variable and several changing variables. Using regression analysis over multiple waves can help clients ascertain how changes can affect their brand perception and position in the marketplace. For instance, a retailer may use regression analysis to determine and follow which store improvements satisfy shoppers most.

Multivariate analysis can help determine where a client can improve or leverage their brand and use advertis-ing successfully. This can effectively determine what motivates consumer behavior, perceptions and attitudes.

For example, W5 can look for correlations among a battery of questions determining how consumers feel about a category of products and another exploring their opinions about a single brand. An example is shown below:

By using this approach to analysis, W5 can not only help clients see where they are currently positioned, but also uncover where efforts should be concentrated, how perceptions change, and where new opportunities lie.

Tracking brand health, advertising effectiveness, and consumer behaviors and motivations is critical to understand-ing a brand’s role in the marketplace. Through W5’s robust approach, tracking can highlight changes in sales and purchasing, determine efficacy of new brand and marketing efforts, and inform decisions for future strategies.

Strengths to LeverageWhat are your competitive advantages?

What relevant resources do you have?

What do consumers see as your strengths?

Weaknesses to MonitorWhat do consumers believe you do poorly?

What promises are you seen as not delivering?

What pitfalls do you need to avoid?

Threats to ImproveWhat obstacles do you face?

What is your competition doing well?

Do perceived weaknesses threaten market share?

Opportunities to MaintainWhat are good opportunities to pursue?

What trends provide new market opportunities?

What weaknesses in the market can be exploited?

Strengths

Weaknesses Threats

OpportunitiesWave 1


• Good value

• Good assortment

Wave 2• Good specials


• Good assortment

Wave 1• Items in stock

• Clean stores

• Good specials

Wave 2• Good value


• Advertising

Wave 1• Fun to shop there


• Items in stock

Wave 2• Helpful staff

• Brand names

• Fun to shop there

Wave 1• Quality of products

• Brand names

• Helpful staff

Wave 2• Advertising

• Quality products

• Clean stores

Attribute Relationships Impact

Most ImportantBrand Attributes

• Good specials

• Good value


• Brand names

• Items in stock

• Advertising

Most SuccessfulBrand Attributes


• Items in stock


• Good specials

• Good value

Strategies for Improvement

• Consider lowering prices or having special sales• Offer coupons for frequent purchases• Use marketing to compare prices of the product to other brands

Implications

Consumers find it very important for the product they purchase to be in their price range. While the brand meets other needs, consumers are not satisfied with costs.



Case Study

Continuous Strategic TrackingA fast-growing retail chain engaged W5 to track customer awareness and behavior over time to inform strategic decisions and ultimately increase customer loyalty. This tracking initiative also sought to assess elements of brand and advertising awareness, retail store attribute assessment, and consumer motivations and behaviors.

ApproachW5 conducted a quantitative online survey with category shoppers of various frequency levels across multiple waves to understand awareness, attitudes toward key brands, and key differences among consumer segments. After the initial benchmarking phase, the ques-tionnaire remained consistent with only slight changes made to reflect promotional or store remodel changes. Reporting was rolled up quarterly and compared, wave to wave, against both the original benchmark data and data from the same time period a year earlier.

ResultsW5 was able to chart awareness and brand performance over the year, taking into account store alterations and marketing influences. With this knowledge, W5 highlighted which store changes and marketing tactics were most effective in capturing new customers or maintaining existing customers. This allowed the client to address key target consumer segments and their specific needs, serving them more effectively. Additionally, the client was able to monitor competitor activity to maximize performance advantage within the marketplace.



Frequently Asked Questions

Can I compare my strategic tracking results to norms?W5 does not utilize norms when analyzing and reporting on data from custom research studies. W5 does not believe it is appropriate to compare data from our strategic studies to normative data for many reasons, the most fundamental of which are:

• CUSTOMIzATIOn: W5 creates a customized strategic tracking questionnaire that addresses specific research objectives. As the study will be focused on unique research needs and category context, it does not make sense to compare results side-by-side with data compiled from other studies. W5’s approach to questioning will be different than a flatter approach that enables calculation of norms and therefore results will not be directly comparable.

• TARgET AUDIEnCE: There are often vast disparities between the samples used in normative studies and the sample obtained for custom, strategic studies. W5 believes in surveying a study-specific sample to address unique objectives and ensure appropriate representation of the target market. Normative studies, in contrast, tend to be based to very broad consumer audiences and therefore do not necessarily provide comparable – or actionable – results.

How can I use tracking to better inform my segmentation?By tracking consumer behavior over time, it is possible to utilize segmentation solutions to further understand key segments. Since segmentations are not conducted regularly, tracking segments can help highlight the changes in the marketplace and inform new strategy when communicating with each segment. It can also help clients determine when to conduct new segmentation research as a solution becomes dated.

Can tracking data be mined for additional insight beyond that gained from periodic tracking analysis and reporting?Think of tracking studies as a database that can be continuously used for evaluation and planning purposes. W5 is available for additional consultation to provide detailed data tables and cross-tabulations for further analysis of research results to integrate into business initiatives.

Want to know more? Visit our website at www.W5insight.com Contact us at [email protected] or by phone at 919.932.1117 for more information



W5insight.comW5blog.com919.932.1117

W5 is a boutique custom marketing research firm. We focus on answering who, what, when, where, and why people relate to products, services, and brands. W5 conducts full-service marketing research and research strategy services for Fortune 500s and leading advertising agencies.

®

Strategic Tracking - W5 · Strategic tracking provides clients with the opportunity to be proactive...

Documents

Transcript of Strategic Tracking - W5 · Strategic tracking provides clients with the opportunity to be proactive...