I would like to start with a disclaimer. I have long admired Apple designed products even though I have never owned an Apple product. Every time I would get an interest in buying one and come to a store to try them, I would find them disappointing, as very enthusiastic Apple supporters seem to create expectations, that are very difficult to meet. I am also an admirer of Steven Jobs, perhaps because I have never met him in person . However this writing is not about my personal opinions, but a comparative analysis of market intelligence produced by our algorithms, based on customer generated content or Word of Mouth, and some additional external information sources that will be specified as I sight them.
Two latest Apple products are generating a lot of press and some of it is decidedly negative – iPad and iPhone 4. This writing will focus on the analysis of the iPad devices. When you try do “comparative” analysis one starts with a list of products to compare and iPad makes it very difficult as it seem to be positioned to compete with e-readers as well as tablets. The tablets category definition presents us with yet another challenge, so for the purpose of this analysis I decided to compare iPad with popular e- or digital book devices as well as some tablet devices that do not have a physical keyboards. Some popular retail website offer a very useful hint to see what percent of people who looked at a product actually purchased it, and if not what was the product they did, however in the case of iPad or Kindle such information was thoughtfully removed from every site I have checked. I also am very disappointed not to find any customer reviews on the Apple store website. It is very hard to believe that none of over 3 millions of iPad customers did not write about their product experience on the manufacturer store site. The only possible explanation of that can be found in accusations that Apple actually censors the iPad customer discussions the same way as they accused of doing for iPhone4 here and here. It is very disturbing if it is true.
So here is the list of products I have decided to compare in terms of them meeting their customers expectations. You can make it larger if you click on the report.
Here is the scale legend for better understanding of the report.
iPad did not meet expectations of their customers, who wrote the reviews with 53% reported negative experiences (0.91) related to Reliability, and 65% of comments about Support were negative (0.94). To be fair, the customers are overwhelmingly impressed with screen readability (100% rated 1.81) and usability of the device (96% rated 1.53).
I know the Apple just reported 78% increase in profits, but with 63% of their flagship product customers reporting that its value did not meet their expectations (0.98), I can’t help but wonder how long it would take for Apple to start loosing it’s “freshness”.
This video demonstrates how a registered user can extract a “Deep Dive” attribute analysis for a specific product.
This is an example of how our algorithms translate qualitative data (Word of Mouth, Customer Feedback, Voice of Customer) into quantitative, structured information. Our customers are using this tool to do pre-survey research, to identify the questions the subsequent survey validation.
Chris Haughey, The Amazing Marketing Machine, is testing and experimenting with our Market Intelligence Reporting to assess its methodology, accuracy and utility. He was very kind to let me publish his perspective on DVD/Blu-ray market segment.
This time we analyzed Blu-ray Disk Players. As of this date we monitor 56 products in this category and analyzed 6,482 reviews written by their customers. However some of these products have not accumulated enough reviews to produce statistically representative and accurate metrics, so we filtered them out of the competition. The second round disqualified any product that failed to meet Customer Expectations with its Functionality, Reliability or Support.
Sylvania NB530SLX 2010 Piplzchoice Award winner 47.8% above average Customer Satisfaction in its Category The winners are chosen by their customers
This Disk Player’ Reliability score is 9.6% higher than the second place challenger – Sony BDP-S550.
For full list of products in this category and Customer Reviews used for this research, select “Televisions & Video > Disc Players & Recorders ” in Product Reputation Market Intelligence Reporter on this site.
As any business seeks to better understand customer needs and behaviors, it’s no secret that Social Media has opened more doors to CRM opportunities than ever before. Last week while reading a recent marketing blog, I was amazed to observe that the writer failed to suggest the current trend of social networking as a frontline method for creating a relationship with customers.
Like never before, Social Media is providing a colossal platform allowing us to hear what our customers are saying. It is quickly becoming one of the best ways to engage a customer and gain valuable insight into their experience with our products as well as those of our competition. Are you listening?
This explosive technology could permit any business to identify competitive threats or opportunities through information that might not otherwise be detected without listening to thousands of customers. Historically, formal focus groups were utilized as the most common means of collecting this data in-person from the end user. Perhaps one could imply that today social media is quickly becoming the new “focus group”.
Consider for a moment that while traditional focus groups draw in customers to discuss their experiences, so are Social Networks providing the same information. Is there really a significant difference? The value of a focus group depends largely on quality of questions posed to the participants with all the biases that are incorporated into a question. The main disparity is that social media presents a very public review of a product or company’s benefits and even shortcomings. However, we must not ignore the exponential numbers of consumers who are vocalizing this valuable data. It is often more candid than any focus group could provide.
Getting connected with them is just part of the solution. Connecting & engaging within these social mediums is relatively easy part. Nevertheless, just like any other ‘marketing” effort, its success is not realized without measurement. Therefore, the opportunity exists in figuring out what to do with the unstructured data.
Fortunately there is technology available to “interpret” this valuable data. Utilizing a multi-dimensional analysis, we convert various forms of feedback into an actionable plan then we take it one step further. We are examining customer ratings across the market of nearly 20,000 products. Many of the companies who have attempted their own translations had to invest very significant amounts of money into text mining implementation projects that allow handling feedback about only their own products. With more than 2 million reviews, our database can deliver satisfaction scores from real world consumers about your products as well as that of your competition.
Self help author and motivational speaker, Robert Kiyosaki, was quoted last year as saying ‘I am a bit old to focus on social media now but I spend an average of two hundred thousand dollars monthly through hired employees or consultants on social media, online reputation etc’. While the use of social media as a marketing tool is still in its early stages, let’s not ignore this novel opportunity to act on customer feedback.
Clay Shirky once said in on of his presentations – “There is no information overload – it is filters failure”
Some people complain that the Internet has created overwhelming volumes of information. Is there really too much information about objects of interest or is the perception of overwhelming volume actually misstated? Perhaps the issue is not quantity but level of quality. It is a matter of perception and focus; the ability to discriminate signal from background noise. Both producers and consumers care about what is said about a product or service equates to dollars or pounds or yen because positive statements will usually translate into higher demand. It is ironic how growing numbers of sophisticated product producers and consumers are tapping into the same information stream that has only recently come out of emerging social networks; a kind of digital crowdwisdom.
Whether consumers are overwhelmed by the amount of product information or just lazy, many consumers apparently prefer the conversation threads shared by digital “friends” in their social network over search engine result pages generated by a product’s keywords and metadata tags. There is a very human tendency to seek out the opinion or advice of a “social herd” of like-minded people with similar values, interests, and needs. It is more than just a contemporary cynicism of Madison Avenue hype and infomercial verbiage. Following the “virtual herd” may at first sound like a derogatory statement but it is in fact fair and descriptive. Herding is an adaptive trait that fosters very important social behaviors. Though it can, if carried to an extreme like lemmings jumping off a cliff appear pointless, following a “digital” herd saves time and minimizes personal risk. Whether inexperienced or as mentioned above, overwhelmed by too much information, “attending” to what the other member’s of one’s social circle say, do, or prefer is like a filtering device. Some people feel that the wider their circle and the greater the consensus toward a selection, the less risky their final choice. This filtering is especially cost-efficient. A consumer, after finding a common and comfortable social niche, has to neither spend additional time nor effort to select objects of value or need; they just follow the Word-of-Mouth recommendations of their trusted circle and their satisfaction is guaranteed.
Sophisticated product producers recognize that tapping into these social niches, if they can find them, provide free and truthful evaluations of what is right and wrong with their product line. Crowdwisdom would appear to reflect unsolicited, and therefore one hopes, unbiased evaluations of many different facets of a product. If postings in some niche social network discuss a product, its reputation, and its brand over some reasonable time frame, a producer could conclude the data is accurate rather than misrepresented, for example, by a competitor’s planted remarks or their own staff trying to “market” company goods. They could conclude it is balanced rather than atypical and biased when, for example, a single irate customer monopolizes bandwidth with redundant rants. Producers who cast their virtual nets over social networks to catch real-time comments must follow the best practices in statistical sampling and testing of experienced psychologists and trained sociologist. Crowdwisdom is not necessarily wise but it is, when collected carefully, extremely relevant. Especially in this digital age where many people struggle to find the signal in all the noise, it is cost-effective and an adaptive trait that minimizes personal risk. It doesn’t matter whether or not you trust or even like everyone in your social circle, if the group hangs out at a particular water hole, it must be safe to go there to drink.
How can you maximize your stakeholders’ return on investment? Treat your stakeholders like your customers. What is really important to them? For example, is it just a return on investment or some sense of control? If they are sitting you in board room, your living room, or your office, then there is a strong possibility they are not just interested in the dollar amount annually reported on an IRS Form K-1! If they attend meetings, even just to earn a stipend, they want information.
Many online shoppers now use social media to make informed decisions about their purchases. Are your stakeholders any less discerning? Perhaps management should consider going beyond an annual report to decision-makers and integrate them into your operational rather than just strategic processes. Are “active” stakeholders in your product or services aware of what your customers “really” say about your products or do they receive summarized, massaged statistics that have a 4-figure precision? Have you noticed that with the emergence of a Global Village, there are now many self-appointed “town criers”? Social media forums and blogs provide the digital equivalent of a local village square. As a manager, do you have the resources to provide your stakeholders, assuming they are interested, with raw and timely “online buzz”? Can they “(with)stand the truth”?
A meaningful picture of key performance indicators (KPI) is not complete unless they are somehow linked to critical success factors (CSF); the two are very different but ultimately affect the same bottom line – stakeholder ROI! Defining a critical factor that will make a product successful doesn’t necessarily have to come from the boardroom or the Research and Development department. In today’s Global Village, a critical success factor more than likely comes from an unsolicited comment made in some public forum! Social media not only keeps Jane and John Customer informed but actually helps “must-have” features crystallize in their minds before they make their purchase. Failure to integrate “must-have” features into a product design is an obvious mistake that is relatively easy for a product manager to avoid. It takes however, an interaction between the identification of what is exciting and innovative today with tomorrow’s performance indicators to eventually achieve a product’s critical success.
Stakeholders have cultivated a very specific point of view – otherwise, by definition, they wouldn’t have the wealth, education, or power to be a stakeholder. Product managers similarly have a viewpoint, although it, again by definition, is very different from that of stakeholders. A synergy can arise however, if a third perspective, an aggregate measure of customer satisfaction, is added to the “product mix”. Customers want satisfaction; stakeholders want success; the two are fundamentally the same. The successful product manager can extract many actionable insights that ultimately translate into significant returns on investment from what customers’ and stakeholders’ want; they just need to know where to look for their solutions
This week we analyzed Customer Reviews for 52-inch Televisions. As of this date we monitor 472 products in the Televisions category and analyze 36,475 reviews written by their customers. However some of these products have not accumulated enough reviews to produce statistically representative and accurate metrics, so we filtered them out of the competition. The second round disqualified any product that failed to meet Customer Expectations with its Functionality, Reliability or Support.
Samsung LN52A630 1080p 120 Hz LCD HDTV 2010 Piplzchoice Award winner 9% above average Customer Satisfaction in its Category The winners are chosen by their customers
For full list of products in this category and Customer Reviews used for this research, select “Televisions & Video > Televisions” Category in Product Reputation Market Intelligence Report on this site.
Like serving borscht, an Eastern and Central European beetroot soup, it is best to consume market research, especially about customer relations, with a healthy dollop of creamy common sense. I recently had dinner with several close friends who happen to be marketing mavens and my business associates. I was quite surprised when what I had intended to be a lighthearted joke brought the four of us into passionate disagreement. I had been discussing an article written by a market research service and summarized my feelings in a simple sentiment – just because you lead a horse to water doesn’t mean you can make him drink TWICE from the same trough; he has to like what he is drinking for him to take a second sip.
Two of my friends immediately pounced; they joined together in a spontaneous lecture that reiterated market data from panels and focus groups about customer acquisition; lead generation through pipeline to close. They had research data that a behavioral psychologist would admire! Both my other friend and I told them that they missed the point – good marketing is about big-picture perceptions rather than a funnel-shaped sales process transitioning from an initial contact to counting sales receipts. Our point was that especially in today’s marketplace you must continually win a customer’s approval, you don’t acquire and hold them like so many shares of stock in an investment portfolio labeled “goodwill”.
Valued concepts of price, product, place, and promotion have undergone a paradigm shift. The emergence of the Internet has helped to democratize business. Mom and Pop businesses can compete on equal ground with multinational conglomerates now. In fact, the sales funnels now have even wider openings to suck in prospects. But “old-timers” often have difficulty recognizing paradigm shifts. What has democratized the Internet storefronts has also democratized Joe and Jane Customer! The sales process once defined by the Four P’s has been digitized and now, in virtual space, finds itself also democratized. In a medium that travels at the speed of light, digital word-of mouth and concepts, like online product or service reputation, rule. Market research points to growing amounts of consumer-generated media as determining customer choice, not to mention customer loyalty. Studies suggest consumers seek out this information before they make a purchase and consider it advice without bias or ulterior motive. You don’t “herd” people into funnels anymore; the savvy shopper more than likely “surfed the web” prior to “selecting” your product or service rather than you “acquired” them through place or promotion!
Besides all that, I reminded my friends that our thirsty horse doesn’t really show its “approval” until it returns the third time! The first sip was the test based on curiosity, the second was a test reaffirming the initial experience; but the third is not only reaffirmation but proof that the water reliably satisfies a need. Finicky horse? Not really. It’s an adaptive survival trait called “conditioned taste aversion” (also known as bait shyness or the Garcia effect). This apparently “hard-wired” behavior protects most mammals from too much of a novel “offering” (for example, poisoned bait) without testing its “safety (or reputation)” value over a short period of time. In truth, even though people do mimic a herd and sometimes even stampede, they are even smarter than horses! Your products, services, or business hasn’t ever really acquired your customers; your customers have chosen you! Reputation has always and will forever rule!
Say you’re a product manager responsible for a line of MP3 players. One of the players is not selling well, in spite of various promotional activities including two price reductions within the last six months. You still can’t find lift.
As with any product development cycle, you conducted focus groups and researched the market to determine the optimal feature set for your target audience, at a compelling price point. The research didn’t yield any unexpected or actionable results.
In addition to handling your regular workload, you have several hundred online customer reviews collected over the last 60 days to plow through. It’s vital to read these reviews but you simply don’t have the bandwidth to go over them all with an attention they require. You need an easy way to filter out relevant customer themes that provide quick, current, actionable insights from customers.
Competitive products offer almost the exact same features as your MP3 player at a similar price. You’re now working on a next- generation player but aren’t clear on what the “must have” features should be for this version. Not only is your market data ambiguous, but also it’s now stale after all this time.
Sound familiar?
Enter Amplified Analytics. Using AAI’s Product Reputation Market Intelligence Reporter (PRMIR), which is based on semantic analysis of customer reviews and behavioral economics models, product managers and key decision makers can quickly segregate and analyze key performance indicators (KPIs) like Customer Satisfaction (CSI) with a product functionality, reliability and a quality of support.
Top category selections, such as MP3 players, on the PRMIR data entry screen are, easily identifiable and simple to find. Users can see the ratio of reviews to products, using a significant product sampling (in the case of the MP3 player, 75:1). All listings are date stamped, so that users know precisely when data has been updated. In just four mouse clicks, a product manager is able to generate meaningful functionality rates for his or her product;
The PRMIR interface allows customers to make multiple selections of competing manufacturers and filter the number of reviews and ranges for several performance indicators, including Customer Satisfaction Index (CSI), Product Functionality Score (PFS), Product Reliability Score (PRS) and Product Support Score (PSS).
When recalculating the CSI factoring out this specific design issue, the MP3 player in question outscores the competition by 4.2%. An up-to-date analysis with easily importable data is available in less than 15 minutes; the entire process takes less time than a normal lunch hour. Most important, stakeholders walk away with accurate data and tangible feedback to ensure customer satisfaction and profitability of future products.
. However this writing is not about my personal opinions, but a comparative analysis of market intelligence produced by our algorithms, based on customer generated content or Word of Mouth, and some additional external information sources that will be specified as I sight them.
Here is the scale legend for better understanding of the report.
