It's All About The ExperienceA blog about managing and improving customer experience and improving profits.https://rrassoicates.azurewebsites.net/Rons-Blog8 Innovative Ways to Improve Customer Retention Using Email https://rrassoicates.azurewebsites.net/Rons-Blog/PostId/31/8-innovative-ways-to-improve-customer-retention-using-email-or-notificationsBranding,Conversion Improvement,Customer Service,Digital Marketing,New Product Development,Product Management,Profit Improvement,Research,RetentionSun, 04 Feb 2024 16:01:27 GMT<p><meta name="uuid" content="uuidzcqdWG6dEMYn" /><meta charset="utf-8" /></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">In digital marketing, email remains a stalwart for direct communication with customers. For marketers looking to retain and monetize an existing customer base, email can be an affordable, customizable mechanism for improving retention. This blog investigates eight inventive strategies where email drives customer loyalty with personalized&nbsp;messages that&nbsp;delight customers.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>A Personal Touch from an Online Retailing Giant: Amazon</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Have you ever received a &quot;Just for You&quot; email from Amazon? Using complex algorithms, Amazon crafts individualized product recommendations based on a customer&#39;s purchase history and browsing behavior. This personalized optimization encourages further purchasing and makes customers feel understood and valued, enhancing their loyalty to the brand (Ghelber, 2020).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Exclusive Perks and Prestige: Sephora&#39;s Beauty Insider Program</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">The way Sephora uses email to reinforce customer loyalty is unparalleled. Their Beauty Insider program members receive status upgrades, birthday gifts, and special access to deals&mdash;all communicated through personalized emails. These perks make members feel part of an exclusive community, building brand affinity and retention (<em>About Beauty Insider Loyalty Program | Sephora</em>, n.d.).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>A Screen-Full of Interest: Netflix&#39;s Show Updates and Recommendations</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Netflix&#39;s user engagement emails are a staple of its retention strategy. Emails entice subscribers to return to the platform with updates on shows they might enjoy, directly aligning content with their viewing behavior. These recommendations drive engagement and demonstrate a detailed understanding of each user&#39;s preferences, fostering loyalty (Io Digital Agency, 2024).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>The Soundtrack of Your Life: Spotify&#39;s Curated Playlists</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Understanding that music is a profoundly personal experience, Spotify offers curated playlists directly delivered to inboxes. Based on a user&#39;s taste and listening habits, these playlists function as personalized entertainment and offer a nudge to revisit the platform&mdash;providing a harmonious approach to customer retention through email (Anderson, 2024).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Step into the Customer Service Hall of Fame: Zappos&#39; Follow-Up Emails</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Zappos is renowned for its customer service, and email plays a significant role. After a customer interacts with Zappos&#39; representatives, they receive a follow-up email ensuring all is well. This extra mile in customer care ensures a lasting positive impression is maintained even when things might not have gone perfectly (Sharpen Staff Writer, 2024).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Write into Success: Grammarly&#39;s Progress Reports</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">As a linguistic companion, Grammarly doesn&#39;t just fix language errors but also educates users with insights into their writing. Weekly emails with writing stats and personalized progress reports are educational and engaging. They instill a desire for improvement, measure how much the user uses Grammarly in their writing, and make users more likely to stay with the service (Reallygoodux &amp; Keen.io, 2023).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Educate to Elevate: HubSpot&#39;s Helpful Content</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">HubSpot&#39;s educational content emails are an underappreciated gem. By consistently providing value through blog posts, whitepapers, and webinars, HubSpot nurtures customer relationships beyond its platform. This act of &#39;giving before expecting&#39; is a powerful customer retention method that positions the brand as a source of knowledge (Storm, 2023).</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>A Trip Down Memory Lane: Google Photos</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Google Photos is the default photo storage solution for Android phones. The Google Photo application stores photos in the cloud and then mines this database of photos to create collages of photos from the past. Facial recognition technology, timeline information, location data, and event-related information allow Google algorithms to organize the pictures into collages and, more recently, movies set to music. Google creates and shares these trips down memory lane via user notifications (Ben-Yair, 2021).&nbsp;</span></span><span style="font-size:larger;"><span style="font-family:verdana;">Users can share the output by text or email or customize the output (e.g., to stop seeing photos of exes) using the app user settings. Recently, Google created a separate tab to store these &quot;Memories&quot; within its Google Photo application. Google&nbsp;added functionality to allow users to name, rename, and edit the Memories that Google created (Brinkmann, 2023).&nbsp;&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Data Mining, Personalization, and Links to the &#39;Mother Ship&#39;</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Note that most of these examples rely on three critical elements. First is mining customer information and preferences to understand their needs. Second is personalizing the email or system notification relevant to those needs; third, the messaging provides links to bring the customer back to the website to enjoy or act upon custom offers and opportunities.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Summing up: Five &quot;izes&quot;</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">From special offers to customer education to excellent service follow-up to trips through your photo memories, retention messages engage, excite, and entwine your customers in the fabric of your brand. To deliver this experience,&nbsp;<strong>synthesize</strong>&nbsp;customer data,&nbsp;<strong>analyze&nbsp;</strong>your users&#39; needs,&nbsp;<strong>personalize</strong>&nbsp;your messaging, product, or service&nbsp;to provide a value-added offering, and then&nbsp;<strong>publicize</strong>&nbsp;it to your community using&nbsp;<strong>customized</strong>&nbsp;email. To learn about other digital marketing technologies that you can use to improve customer retention, check out our blog article on <a href="https://www.ronrassociates.com/Rons-Blog/PostId/30/eight-digital-marketing-technologies-that-can-improve-retention" target="_blank">Eight Digital Marketing Technologies</a>.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>References</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><em>About Beauty Insider Loyalty Program | Sephora</em>. (n.d.). Sephora.&nbsp;<a href="https://www.sephora.com/beauty/loyalty-program" target="_blank">https://www.sephora.com/beauty/loyalty-program</a></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Anderson, A. (2024, January 24).&nbsp;<em>Making Personalization the Center of Your Customer Retention Strategy like Spotify</em>. Sharpen.&nbsp;<a href="https://sharpencx.com/spotify-customer-retention/" target="_blank">https://sharpencx.com/spotify-customer-retention/</a></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Ben-Yair, S. (2021, May 18). Your photos, your memories, your way.&nbsp;<em>Google</em>.&nbsp;<a href="https://blog.google/products/photos/new-memories-features-look-back/" target="_blank">https://blog.google/products/photos/new-memories-features-look-back/</a></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Brinkmann, M. (2023, August 16).&nbsp;<em>Your memories have a permanent place now in Google Photos</em>. gHacks Technology News.&nbsp;<a href="https://www.ghacks.net/2023/08/16/your-memories-have-a-permanent-place-now-in-google-photos/" target="_blank">https://www.ghacks.net/2023/08/16/your-memories-have-a-permanent-place-now-in-toogle-photos/</a></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Ghelber, A. (2020, November 24). Seven steps to achieve customer retention like Amazon.&nbsp;<em>Forbes</em>.&nbsp;<a href="https://www.forbes.com/sites/forbescommunicationscouncil/2020/11/24/seven-steps-to-achieve-customer-retention-like-amazon/" target="_blank">https://www.forbes.com/sites/forbescommunicationscouncil/2020/11/24/seven-steps-to-achieve-customer-retention-like-amazon/</a></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Io Digital Agency. (2024).&nbsp;<em>iO &mdash; blended agency with wide-ranging and in-depth expertise</em>. https://www.iodigital.com/. Retrieved January 30, 2024, from&nbsp;<a href="https://www.iodigital.com/en/history/raak/how-netflix-defined-email-marketing-for-streaming-platforms" target="_blank">https://www.iodigital.com/en/history/raak/how-netflix-defined-email-marketing-for-streaming-platforms</a></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Lambert, S. (n.d.).&nbsp;<em>This is Why HubSpot is the Best Content Marketing Platform</em>. Retrieved January 30, 2024, from&nbsp;<a href="https://www.xcellimark.com/blog/this-is-why-hubspot-is-the-best-content-marketing-platform" target="_blank">https://www.xcellimark.com/blog/this-is-why-hubspot-is-the-best-content-marketing-platform</a></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Reallygoodux &amp; Keen.io. (2023). Grammarly&#39;s re-engagement emails.&nbsp;<em>GoodUX.appcues.com</em>. https://goodux.appcues.com/blog/grammarly-engagement-emails</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Staff Writer, S. (2024, January 3).&nbsp;<em>The customer service strategies behind Zappos&#39; success</em>. Sharpen.&nbsp;<a href="https://sharpencx.com/zappos-customer-service/" target="_blank">https://sharpencx.com/zappos-customer-service/</a></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Storm, A. (2023, September 9). Crafting Customer Retention Emails: The Complete Guide.&nbsp;<em>Blog.Hubspot.com</em>.&nbsp;<a href="https://blog.hubspot.com/service/customer-retention-emails" target="_blank">https://blog.hubspot.com/service/customer-retention-emails</a></span></span></p> <aside arial-label="Suggestions panel" data-name="sidebar-tier">&nbsp;</aside> 31Eight Digital Marketing Technologies That Can Improve Retentionhttps://rrassoicates.azurewebsites.net/Rons-Blog/PostId/30/eight-digital-marketing-technologies-that-can-improve-retentionConversion,Conversion Improvement,Customer Complaints,customer experience,Customer Relationship Management,Customer Service,Digital Marketing,New Product Development,Profit ImprovementRetention,Social MediaMon, 29 Jan 2024 15:34:48 GMT<p><meta name="uuid" content="uuidrMHno6Xr8OgI" /><meta charset="utf-8" /></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Over the past decade, a big part of our consulting practice has been helping companies determine how to improve customer retention.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">A recent series of requests for contributions to a marketing blog on LinkedIn led us&nbsp;to develop this article. Below are&nbsp;<strong>eight digital marketing technologies</strong>&nbsp;marketers can use to help improve customer retention and grow revenue.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><em>(Please note that while we provide vendor names, the list of software providers mentioned under each category is&nbsp;</em><strong><em>not</em></strong><em>&nbsp;exhaustive. New technology vendors emerge almost monthly, so please search for and compare competitors of the software vendors listed to find the right one for your company.)</em></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Email Marketing Software.</strong>&nbsp;Email marketing is first on our list of customer retention technologies. Why? With email, a business can regularly touch its customers by sending information and messaging that&#39;s relevant to customer interests. The critical adjective here is&nbsp;<strong><em>relevant</em></strong>! The most effective emails are personalized based on valid segmentation schemes. They are consistent in branding and well-timed. They are carefully tested. The test data should show that they will reliably resonate with your customers. Retention emails bring customers back by speaking with your brand voice and offering incentives, discounts, special offers, or unique experiences otherwise unavailable to noncustomers. Email is a powerful tool. But use your email list carefully. Please don&#39;t abuse it, or your list of receptive customers will quickly dwindle. Tools for email marketing include <strong>Vertical Response</strong>,&nbsp;<strong>Mailchimp</strong>,&nbsp;<strong>Constant Contact</strong>, and<strong>&nbsp;HubSpot</strong>. For more on this topic, check out our blog article with <a href="https://www.ronrassociates.com/Rons-Blog/PostId/31/8-innovative-ways-to-improve-customer-retention-using-email-or-notifications" target="_blank">eight examples of companies that do retention email well</a>.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Customer Relationship Management (CRM)</strong>: Marketers use CRMs to store customer data like email addresses, phone numbers, physical addresses, and communication preferences. They also use CRMs to track marketing interactions with current and potential customers. Leverage CRM data to discern customer behavior. Use it to understand individual preferences and track purchase history. If you sell shoes, for example, does this customer buy when shoes are on discount, or is their purchasing more fashion-conscious? Is it event-related (i.e., snow boots after a major snowstorm) or seasonal (summer, winter, fall, and spring collection purchases)?&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">With some imagination and elbow grease, CRM data can give us the information we need to reach these conclusions. It allows marketers to create personalized, high-converting marketing campaigns and ensures that customers who bought from us before keep buying. Integrate your CRM with Marketing Automation (see below) to improve your communication with customers and prospects. Use this integration to build repeat sales funnels with existing customers, driving repeat purchases and improving retention. CRM software providers include&nbsp;<strong>Salesforce</strong>,&nbsp;<strong>Zoho CRM</strong>, and&nbsp;<strong>Microsoft Dynamics</strong>. For more on <a href="https://www.ronrassociates.com/Rons-Blog/PostId/8/customer-relationship-management-not-just-for-big-business" target="_blank">CRM and its uses</a>, see our blog article on how CRM can help improve conversion and retention.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Social Media Management Tools</strong>. Social media has become an integral part of any retention strategy. Use social media to provide brand updates and inform your customers of reasons to maintain a relationship with you.&nbsp;<strong>Hoot Suite</strong>&nbsp;or&nbsp;<strong>Buffer</strong>&nbsp;are two examples of software enabling marketers to schedule social media updates and track social activity across platforms. Social media can increase customer engagement and maintain customers&#39; interest in your brand. See also our blog article on <a href="https://www.ronrassociates.com/Rons-Blog/PostId/24/28-examples-of-social-media-advertising-campaigns-small-businesses-can-use-to-build-their-brands" target="_blank">Social Media Marketing for 24&nbsp;examples </a>of ways you can use Social Media to increase sales, improve customer retention, and support your brand.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Marketing Automation Platforms.</strong>&nbsp;Marketing automation platforms provide tools for automatically triggering marketing execution, including email campaigns, social media posts, remarketing campaigns, and more. If properly configured, marketing automation can track and manage lead generation from all your customer touchpoints and automate follow-up throughout the customer life cycle. Marketing automation systems allow retention marketers to personalize emails for post-purchase follow-ups, upsells, and cross-sells. It can trigger social media posts, offer targeted promotions, and send follow-up requests to salespeople or customer service representatives. Think of these tools as brilliant conductors in your brand marketing symphony. Research and map your online marketing funnel activities to see what works now, then automate it! These tools can save e-marketers time and effort while ensuring consistent, branded customer retention follow-up and communications. Popular options include&nbsp;<strong>Keap</strong>,&nbsp;<strong>Marketo</strong>,&nbsp;<strong>Pardot</strong>,&nbsp;<strong>Drip</strong>, and&nbsp;<strong>Eloqua.</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Remarketing Tools.&nbsp;</strong>Another favorite way of turning suspects into prospects and customers into return customers is&nbsp;<strong>remarketing</strong>. With remarketing, a website visit can trigger a series of personalized advertisements on platforms like&nbsp;<strong>Google</strong>,&nbsp;<strong>Facebook</strong>,&nbsp;<strong>LinkedIn</strong>&nbsp;or&nbsp;<strong>Twitter</strong>. Marketers can design experiences around the web content visited by linking a website product page to a particular advertisement on Google or a social media platform. These tools are especially useful in marketing luxury or high-involvement products or services because they direct advertising toward people who have already shown purchase intent. While generally reserved for new product sales, we have also seen this technology used successfully to grow revenue from service or parts upsell to customers who have visited company websites related to after-sale subjects. For more on this topic, check out our <a href="https://www.ronrassociates.com/Rons-Blog/PostId/11/small-company-big-data-huge-impact" target="_blank">blog article on Big Data</a>.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Customer Feedback Software.&nbsp;</strong>We all think we listen to our customers. But do you systematically keep track of their feedback and then take action to address their concerns? Those two final steps are crucial for improving customer retention.&nbsp;<strong>Verint,</strong>&nbsp;<strong>SurveyMonkey</strong>, and&nbsp;<strong>Qualtrics&nbsp;</strong>are software vendors that sell technologies that gather valuable customer insights and allow users to aggregate the information to identify actionable trends. Use that information to tease out customer service needs, gaps in your product and service offerings, complaint trends, and brand challenges. Use these technologies to develop systematic ways to leverage customer feedback and improve. See our <a href="https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management" target="_blank">blog article on customer complaints </a>for more on this topic.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Personalization.&nbsp;</strong>Personalization is another meaningful way of retaining customers, making them feel valued by the brand. Personalization tools such as&nbsp;<strong>Optimizely</strong>&nbsp;or&nbsp;<strong>Adobe Target</strong>&nbsp;are software designed to permit marketers to create customized experiences. Design individualized experiences or offers for each customer persona based on their segment&#39;s preferences and behavior. Build customer experiences that make their lives easier. See <a href="https://www.ronrassociates.com/Rons-Blog/PostId/22/buying-and-delivery-preference-the-new-battleground">our article on buying preference</a> for more on this topic.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Loyalty Program Software.&nbsp;</strong>Ever since a coffee shop figured out how to offer punch cards to give loyal customers a tenth coffee free, loyalty programs have become a time-honored way to drive customer retention. Reward customers for their continued business. As with everything, software now exists to track and manage this activity. Loyalty program software vendors include&nbsp;<strong>Smile.io</strong>&nbsp;or&nbsp;<strong>LoyaltyLion.&nbsp;</strong>Both can help create and manage new loyalty programs and make starting a program more manageable. Create incentives and rewards for customers, and design programs that encourage them to return. Then, watch retention numbers improve. See our <a href="https://www.ronrassociates.com/Rons-Blog/BlogPage/3" target="_blank">blog on Customer Lifetime Value</a> for more on how companies manage customer loyalty.</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;"><strong>Integration and Reporting.&nbsp;</strong>Before pulling the trigger on any software purchase, carefully examine how well these systems integrate with your existing marketing infrastructure. Pay special attention to reporting, scalability, and customer support capabilities (and support cost). Many of the leading vendors in each category above offer capabilities in other categories. For example, many marketing automation providers also provide CRM capabilities.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">Also, make sure that the reporting system for the software can exactly replicate what you are currently providing to senior management. Senior leaders want what they want, and if the new software can only provide a slightly different report from what leadership likes, you may spend the next couple of years downloading and formatting data to meet their needs.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><span style="font-family:verdana;">For more on integration and marketing, see our blog article about <a href="https://www.ronrassociates.com/Rons-Blog/PostId/15/integrate-or-die" target="_blank">integration as the modern marketing superpower</a>.</span></span></p> 3024 Examples of Social Media Advertising Campaigns Small Businesses Can Use To Build Their Brandshttps://rrassoicates.azurewebsites.net/Rons-Blog/PostId/24/28-examples-of-social-media-advertising-campaigns-small-businesses-can-use-to-build-their-brandsBranding,Content Development,Conversion,Customer Complaints,New Product Development,SEO,Social MediaThu, 30 Nov 2023 14:29:00 GMT<p><meta name="uuid" content="uuid3YuAHgdErd3s" /><meta charset="utf-8" /></p> <p style="text-align: justify;"><span style="font-size:larger;">Social media is one of the most influential elements of modern advertising. It has arisen from a trendy curiosity to a mainstay of consumer marketing. Marketers use social media in various ways, most of which small business owners can use to build their brands. These include&nbsp;<strong>paid advertising</strong>,&nbsp;<strong>influencer marketing</strong>,&nbsp;<strong>content creation</strong>,&nbsp;<strong>social listening</strong>, and&nbsp;<strong>user-generated content</strong>&nbsp;development. Finally, new technology has allowed marketers to engage in community building through&nbsp;<strong>live-streaming</strong>&nbsp;events and<strong>&nbsp;contests</strong>.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">As a Management Consultant and part-time College Instructor in Marketing and Management, I am a great keeper of examples that help explain marketing techniques. Below, I briefly explain the six kinds of social media advertising strategies. With each element of this typology, I provide examples of excellent execution of these strategies. If one of the examples interests you, click on it to learn more, then bookmark the URL for future use!&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Paid Advertising.&nbsp;</strong>Paid advertising tops the list of ways marketers use social media to promote their products and services. With paid advertising, marketers provide target audiences with tailored messages. Marketers design these messages to drive engagement with prospects and customers and lift conversions. <a href="https://www.ronrassociates.com/Rons-Blog/PostId/15/integrate-or-die">Retargeting customers who have visited your website with ads on social media</a> is an example of a particularly successful tactic we&#39;ve mentioned in previous posts. Products from pages previously visited suddenly start appearing on other web pages we visit. Here are some examples of companies that do this well:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://landingcube.com/traffic/facebook-retargeting-amazon-products/" target="_blank">Amazon&#39;s retargeting program on Facebook</a>&nbsp;(LandingCube, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.markettailor.io/blog/growth-hacking-through-retargeting-and-remarketing" target="_blank">Spotify uses retargeting ads on Instagram to increase customer engagement and sales</a>&nbsp;(Growth Hacking Through Retargeting and Remarketin<em>g</em>, n.d.).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://digiday.com/media/apple-brings-retargeting-iad/" target="_blank">Apple&#39;s retargeting Twitter ads drive customer loyalty</a>&nbsp;(McDermott, 2014).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.thinkwithgoogle.com/intl/en-gb/marketing-strategies/video/how-airbnb-used-ad-sequencing-bring-their-new-product-life-youtube/" target="_blank">How Airbnb&#39;s retargeting campaigns on YouTube used video content to target their audience</a>&nbsp;(Shipley &amp; Clark, 2021).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;">Paid social media ads allow marketers to track the performance of their campaigns in real-time. This attribute helps marketers make data-driven decisions about their marketing strategies and how they are paying off.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Influencer Marketing.&nbsp;</strong>As we discussed in previous posts, marketers can reach a broad audience in their target market by working with influencers. Influencers are people who demonstrably speak to your target audience and theirs. Marketers find influencers with large followings on social media platforms such as Instagram, Twitter, YouTube, and the newly emergent&nbsp;<a href="https://about.fb.com/news/2023/07/introducing-threads-new-app-text-sharing/" target="_blank">Threads</a>&nbsp;and hire them to insert their products and services directly into their context -- hopefully the same context as your target audience. Influencers can help build trust in your brand with key customers. Influencers accomplish this by providing reviews and recommendations for your products and services or, like athletes and outdoor video bloggers, simply using your products. Here are some examples of successful influencer marketing campaigns. Most examples below include mega influencers, but remember that a top blogger, amateur athlete, or rising musician can be just as influential!</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://business.twitter.com/en/success-stories/starbucks-stokes-red-cups-fever-on-twitter.html" target="_blank">Starbucks&#39; #RedCupContest on Twitter</a>&nbsp;(Starbucks Stokes Red Cups Fever on Twitter, n.d.)</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.instagram.com/p/CvQSWlVpnkS/" target="_blank">Nike&#39;s collaboration with Lebron James on Instagram</a>&nbsp;(Instagram, n.d.).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.marketingdive.com/news/apple-joins-instagram-to-show-off-shot-on-iphone-campaign/448839/" target="_blank">Apple&#39;s #ShotOniPhone campaign on Instagram</a>&nbsp;(Kirkpatrick 2017).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://qz.com/quartzy/1304635/how-rihanna-forced-the-beauty-industry-to-acknowledge-a-world-beyond-the-rich-and-the-white" target="_blank">Dior with Rihanna for the Fenty Beauty launch</a>&nbsp;(Singh-Kurtz, 2022).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.scribbr.com/citation/generator/folders/5ikXYlau81nAaRF9KYIVlz/lists/6473VM25BnkXXqIrJvqLOZ/" target="_blank">Coca-Cola&#39;s #ShareACoke campaign on Twitter&nbsp;</a>(Napean, 2014)</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Social Listening.&nbsp;</strong>Social listening is an effective technique marketers use to find out what their target audience thinks about their products and services. Social listening involves monitoring conversations on social media platforms to deliver insights into what people say about a particular product or service. Marketers use this type of research to inform marketing decisions. Consumers provide free feedback that marketers can use to improve the product or service they are promoting. As we discussed in <a href="http://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management">our previous blog about complaints management</a>, this information can improve profits and lower costs when adequately indexed, sorted, and analyzed. Here are some examples of social listening programs that have worked well:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.diligent.es/social-media-listening-strategy-starbucks/" target="_blank">Starbucks Successful Social Listening</a>&nbsp;(Diligent Team, 2016).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://netbasequid.com/blog/envisioning-iphone-worthy-release-social-listening/" target="_blank">How Apple Uses Social Listening to Improve Products</a>&nbsp;(Surico, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.giraffesocialmedia.co.uk/how-do-amazon-use-social-media/" target="_blank">Amazon&#39;s Use of Social Listening to Enhance Customer Experience</a>&nbsp;(Stroud, 2023)&nbsp;</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.forbes.com/sites/jenniferrooney/2012/09/25/in-dell-social-media-journey-lessons-for-marketers-about-the-power-of-listening/?sh=3734fe902570" target="_blank">Dell&#39;s Innovative Way of Engaging with its Consumers Through Social Media Monitoring</a>&nbsp;(Rooney, 2012).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>User Generated Content (UGC).&nbsp;</strong>UGC refers to any content created by users on a particular platform that has been shared publicly, such as reviews, photos, videos, etc. UGC provides free exposure for brands as it often resonates more strongly with other users than traditional forms of advertising due to its authenticity and relatability factor. Here are some examples of how marketers use UGC:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://amazonseoconsultant.com/product-storytelling-examples/" target="_blank">Highlighting customers&#39; experiences with the product &ndash; reviews, recommendations, and stories</a>&nbsp;(Buckland, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://smallbiztrends.com/2023/07/unboxing-videos.html" target="_blank">Showcasing customer &#39;unboxing&#39; videos to demonstrate product quality and features</a>. (Pilon, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://digitalmarketinginstitute.com/blog/how-to-use-user-generated-content-ugc-with-4-great-examples" target="_blank">Asking customers to post photos wearing or using the product on their social media profiles with a hashtag associated with your brand</a>&nbsp;(Myers, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.omnisend.com/blog/testimonial-advertising/" target="_blank">Inviting customers to submit creative content for marketing campaigns</a>&nbsp;(Meyer, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.searchenginejournal.com/social-celebrity-endorsements/415568/" target="_blank">Engage influencers and celebrities in conversation about your product or service</a>&nbsp;(Weinstein, 2021).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Live Streaming.&nbsp;</strong>Live streaming has become increasingly popular among marketers in recent years. Live streaming events permit marketers to interact directly with viewers in real time. Showcasing a product or service during a live event builds consumer engagement with your brand. It usually forges a stronger connection between the brand and its audience. Also, live streams often go viral, increasing brand awareness and sales opportunities. Examples abound! Here are a few:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://variety.com/2014/digital/news/world-cup-why-nike-should-turn-its-soccer-short-the-last-game-into-a-digital-series-1201242251/" target="_blank">Nike&#39;s &quot;The Last Game&quot; Live Stream</a>&nbsp;(Graser, 2014).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.marketingdive.com/news/burger-king-whopper-detour-mobile-marketer-awards/566224/" target="_blank">Burger King&#39;s &quot;Whopper Detour&quot; Live Stream</a>&nbsp;(Koltun, 2019).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://techcrunch.com/2022/05/17/apple-musics-concert-series-livestream-performances-harry-styles/" target="_blank">Apple&#39;s &quot;Apple Music Festival&quot; Live Stream</a>&nbsp;(<em>TechCrunch</em>, 2022).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.theverge.com/23799567/samsung-galaxy-unpacked-live-stream-watch-date-time-z-flip-fold" target="_blank">Samsung Live Stream of Galaxy Fold Unpacking</a>&nbsp;(Roth, 2023).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Contests &amp; Giveaways.&nbsp;</strong>Contests and giveaways are another great way for marketers to use social media platforms like Facebook &amp; Instagram to promote their products and services. Contests allow brands to engage directly with followers while offering prizes for other products or services. Marketers design these promotions so that a company starts a relationship with customers (who typically will trade an email address or phone number in exchange for a chance to win.) These fun promotions increase brand awareness and encourage followers to spread the word about your business, increasing sales opportunities and marketing lists! Here are a few examples of successful programs:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.talon.one/blog/mcdonalds-monopoly-a-masterclass-in-promotions" target="_blank">McDonald&#39;s Monopoly promotion</a>&nbsp;(Bewicke, 2023)</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.youtube.com/watch?v=FYkzqvcCl_E" target="_blank">Doritos&#39; Super Bowl Action Movie contest</a>&nbsp;(ABC News, 2014).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.cnbc.com/2017/10/13/oreo-giving-away-100000-if-you-can-guess-the-mystery-flavor.html" target="_blank">Oreo&#39;s Mystery Flavors game</a>&nbsp;(Carter, 2017).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.wrike.com/blog/winning-coca-cola-formula-successful-campaign/" target="_blank">Coca-Cola&#39;s &quot;Share a Coke&quot; campaign</a>&nbsp;(Codella, 2022).</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Summing Up</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Social media is an excellent way for your company to get itself noticed. As the above examples show, the tactic is used successfully by some of the biggest businesses. This interaction is why even small business marketers should learn social media advertising techniques. Take note of the above examples of ways to use social networking for marketing purposes. Social networking allows small and large businesses to create a strong presence, build brand recognition, and increase sales. Every business will have its unique approach to using social media. Still, one thing is sure: if done effectively, this medium can tremendously impact any organization&#39;s bottom line -- including yours.&nbsp;</span></p> <p style="text-align: justify;">&nbsp;</p> <h2 style="text-align: justify;"><span style="font-size:larger;"><strong>References</strong></span></h2> <p style="text-align: justify;"><span style="font-size:larger;">ABC News. (2014, January 9).&nbsp;<em>Doritos Super Bowl ad competition offers winners $1M</em>&nbsp;[Video]. YouTube.&nbsp;<a href="https://www.youtube.com/watch?v=FYkzqvcCl_E" target="_blank">https://www.youtube.com/watch?v=FYkzqvcCl_E</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Avar admin. (2023, August 7). Dell&#39;s approach to social media sourcing and ROI.&nbsp;<em>Avature</em>.&nbsp;<a href="https://www.avature.net/blogs/dells-approach-social-media-sourcing/" target="_blank">https://www.avature.net/blogs/dells-approach-social-media-sourcing/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Bewicke, H. (2023, July 23).&nbsp;<em>McDonald&#39;s Monopoly: a masterclass in promotions | Talon.One</em>.&nbsp;<a href="https://www.talon.one/blog/mcdonalds-monopoly-a-masterclass-in-promotions" target="_blank">https://www.talon.one/blog/mcdonalds-monopoly-a-masterclass-in-promotions</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Buckland, T. (2023, May 26).&nbsp;<em>The 6 Best Product Storytelling Examples from Around the Web</em>. Amazon SEO Consultant.&nbsp;<a href="https://amazonseoconsultant.com/product-storytelling-examples/" target="_blank">https://amazonseoconsultant.com/product-storytelling-examples/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Carter, S. M. (2017, November 22). Oreo is giving away $100,000 if you can guess its &#39;mystery&#39; flavor.&nbsp;<em>CNBC</em>.&nbsp;<a href="https://www.cnbc.com/2017/10/13/oreo-giving-away-100000-if-you-can-guess-the-mystery-flavor.html" target="_blank">https://www.cnbc.com/2017/10/13/oreo-giving-away-100000-if-you-can-guess-the-mystery-flavor.html</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>Coca-Cola launches Tweet-a-Coke as trackable social coupons gain | Retail Dive</em>. (n.d.).&nbsp;<a href="https://www.retaildive.com/ex/mobilecommercedaily/coca-cola-tests-twitters-social-commerce-waters-as-it-begins-to-emerge-as-a-top-predator" target="_blank">https://www.retaildive.com/ex/mobilecommercedaily/coca-cola-tests-twitters-social-commerce-waters-as-it-begins-to-emerge-as-a-top-predator</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Codella, D. (2022). The winning Coca-Cola formula for a successful campaign.&nbsp;<em>Blog Wrike</em>.&nbsp;<a href="https://www.wrike.com/blog/winning-coca-cola-formula-successful-campaign/" target="_blank">https://www.wrike.com/blog/winning-coca-cola-formula-successful-campaign/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">David Kirkpatrick Contributing Editor. (2017, August 8).&nbsp;<em>Apple joins Instagram to show off &quot;Shot on iPhone&quot; campaign</em>. Marketing Dive.&nbsp;<a href="https://www.marketingdive.com/news/apple-joins-instagram-to-show-off-shot-on-iphone-campaign/448839/" target="_blank">https://www.marketingdive.com/news/apple-joins-instagram-to-show-off-shot-on-iphone-campaign/448839/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Diligent Team. (2016, September 13).&nbsp;<em>Social Media Listening Strategy and how Starbucks does it</em>. Diligent.&nbsp;<a href="https://www.diligent.es/social-media-listening-strategy-starbucks/" target="_blank">https://www.diligent.es/social-media-listening-strategy-starbucks/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Editorial team. (2013, August 20).&nbsp;<em>Giveaway! Bridal Lingerie from Cosabella | Junebug Weddings</em>.&nbsp;<a href="https://junebugweddings.com/wedding-blog/giveaway-bridal-lingerie-from-cosabella/" target="_blank">https://junebugweddings.com/wedding-blog/giveaway-bridal-lingerie-from-cosabella/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Graser, M. (2014, June 23). Variety.&nbsp;<em>Variety</em>.&nbsp;<a href="https://variety.com/2014/digital/news/world-cup-why-nike-should-turn-its-soccer-short-the-last-game-into-a-digital-series-1201242251/" target="_blank">https://variety.com/2014/digital/news/world-cup-why-nike-should-turn-its-soccer-short-the-last-game-into-a-digital-series-1201242251/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>Growth hacking through retargeting and remarketing</em>. (n.d.).&nbsp;<a href="https://www.markettailor.io/blog/growth-hacking-through-retargeting-and-remarketing" target="_blank">https://www.markettailor.io/blog/growth-hacking-through-retargeting-and-remarketing</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>Instagram</em>. (n.d.).&nbsp;<a href="https://www.instagram.com/p/CvQSWlVpnkS/" target="_blank">https://www.instagram.com/p/CvQSWlVpnkS/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Koltun, N. (2019, December 9).&nbsp;<em>Campaign of the Year: Burger King&#39;s &quot;Whopper Detour.&quot;</em>&nbsp;Marketing Dive.&nbsp;<a href="https://www.marketingdive.com/news/burger-king-whopper-detour-mobile-marketer-awards/566224/" target="_blank">https://www.marketingdive.com/news/burger-king-whopper-detour-mobile-marketer-awards/566224/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">LandingCube. (2023, April 20).&nbsp;<em>Chapter 5: Facebook retargeting for Amazon products</em>.&nbsp;<a href="https://landingcube.com/traffic/facebook-retargeting-amazon-products/" target="_blank">https://landingcube.com/traffic/facebook-retargeting-amazon-products/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">McDermott, J. (2014, October 15). Apple revamps mobile ads with retargeting options.&nbsp;<em>Digiday</em>.&nbsp;<a href="https://digiday.com/media/apple-brings-retargeting-iad/" target="_blank">https://digiday.com/media/apple-brings-retargeting-iad/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Meyer, B. (2023, June 20).&nbsp;<em>The 13 best examples of testimonial advertising</em>. Omnisend Blog.&nbsp;<a href="https://www.omnisend.com/blog/testimonial-advertising/" target="_blank">https://www.omnisend.com/blog/testimonial-advertising/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Myers, D. (2023, January 16). 4 Great examples of User-Generated Content (UGC).&nbsp;<em>Digital Marketing Institute</em>.&nbsp;<a href="https://digitalmarketinginstitute.com/blog/how-to-use-user-generated-content-ugc-with-4-great-examples" target="_blank">https://digitalmarketinginstitute.com/blog/how-to-use-user-generated-content-ugc-with-4-great-examples</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">NapeanLLC. (2014, July 29).&nbsp;<em>Coca-Cola launches Tweet-a-Coke as trackable social coupons gain</em>&nbsp;[Video]. YouTube.&nbsp;<a href="https://www.youtube.com/watch?v=ECFUR_4s5oQ" target="_blank">https://www.youtube.com/watch?v=ECFUR_4s5oQ</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Pilon, A. (2023). Twenty-five best unboxing videos and how to create your masterpiece.&nbsp;<em>Small Business Trends</em>.&nbsp;<a href="https://smallbiztrends.com/2023/07/unboxing-videos.html" target="_blank">https://smallbiztrends.com/2023/07/unboxing-videos.html</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Rooney, J. (2012, September 25). In Dell Social-Media Journey, Lessons For Marketers About The Power Of Listening.&nbsp;<em>Forbes</em>.&nbsp;<a href="https://www.forbes.com/sites/jenniferrooney/2012/09/25/in-dell-social-media-journey-lessons-for-marketers-about-the-power-of-listening/?sh=3734fe902570" target="_blank">https://www.forbes.com/sites/jenniferrooney/2012/09/25/in-dell-social-media-journey-lessons-for-marketers-about-the-power-of-listening/?sh=3734fe902570</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Roth, E. (2023, July 25). Samsung Galaxy Unpacked 2023: how to watch the live stream and what to expect.&nbsp;<em>The Verge</em>.&nbsp;<a href="https://www.theverge.com/23799567/samsung-galaxy-unpacked-live-stream-watch-date-time-z-flip-fold" target="_blank">https://www.theverge.com/23799567/samsung-galaxy-unpacked-live-stream-watch-date-time-z-flip-fold</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Shipley, K., &amp; Clark, S. (2021). How Airbnb used ad sequencing to bring their new product to life on YouTube.&nbsp;<em>Think With Google</em>.&nbsp;<a href="https://www.thinkwithgoogle.com/intl/en-gb/marketing-strategies/video/how-airbnb-used-ad-sequencing-bring-their-new-product-life-youtube/" target="_blank">https://www.thinkwithgoogle.com/intl/en-gb/marketing-strategies/video/how-airbnb-used-ad-sequencing-bring-their-new-product-life-youtube/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Singh-Kurtz, S. (2022, July 20). How Rihanna forced the beauty industry to acknowledge a world beyond the rich and the white.&nbsp;<em>Quartz</em>.&nbsp;<a href="https://qz.com/quartzy/1304635/how-rihanna-forced-the-beauty-industry-to-acknowledge-a-world-beyond-the-rich-and-the-white" target="_blank">https://qz.com/quartzy/1304635/how-rihanna-forced-the-beauty-industry-to-acknowledge-a-world-beyond-the-rich-and-the-white</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>Starbucks stokes Red Cups fever on Twitter</em>. (n.d.).&nbsp;<a href="https://business.twitter.com/en/success-stories/starbucks-stokes-red-cups-fever-on-twitter.html" target="_blank">https://business.twitter.com/en/success-stories/starbucks-stokes-red-cups-fever-on-twitter.html</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Stroud, S. (2023). Amazon &amp; social media: How does Amazon use it?&nbsp;<em>Giraffe Social Media</em>.&nbsp;<a href="https://www.giraffesocialmedia.co.uk/how-do-amazon-use-social-media/" target="_blank">https://www.giraffesocialmedia.co.uk/how-do-amazon-use-social-media/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Surico, K. (2023). Envisioning Your iPhone-worthy Release with Social Listening.&nbsp;<em>NetBase Quid</em>.&nbsp;<a href="https://netbasequid.com/blog/envisioning-iphone-worthy-release-social-listening/" target="_blank">https://netbasequid.com/blog/envisioning-iphone-worthy-release-social-listening/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><em>TechCrunch is part of the Yahoo family of brands</em>. (2022, May 17).&nbsp;<a href="https://techcrunch.com/2022/05/17/apple-musics-concert-series-livestream-performances-harry-styles/" target="_blank">https://techcrunch.com/2022/05/17/apple-musics-concert-series-livestream-performances-harry-styles/</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Weinstein, M. (2021). 10 Examples of Social Media Celebrity Endorsements That Paid Off Big Time.&nbsp;<em>Search Engine Journal</em>.&nbsp;<a href="https://www.searchenginejournal.com/social-celebrity-endorsements/415568/" target="_blank">https://www.searchenginejournal.com/social-celebrity-endorsements/415568/</a></span></p> 24The Difference Between Primary, Secondary, and Peer-Reviewed Sources (And Where Chatbots And AI Fit In)https://rrassoicates.azurewebsites.net/Rons-Blog/PostId/23/the-difference-between-primary-secondary-and-peer-reviewed-sources-and-where-chatbots-and-ai-fit-inNew Product Development,Online Learning,ResearchMon, 02 Oct 2023 14:45:17 GMT<p><meta name="uuid" content="uuidNzV3e7erJBYa" /><meta charset="utf-8" /></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>Introduction</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Good research demands a careful approach to source selection and usage. Different types of sources serve distinct purposes and possess varying levels of reliability and authority. In scholarly and even business discourse, primary, secondary, and peer-reviewed sources are three fundamental categories that play crucial roles in constructing and substantiating arguments. This blog article will explain the differences between these sources, highlighting their defining characteristics, uses, and importance in all kinds of research. I will conclude my article by providing a clear-eyed evaluation of chatbots and how they fit in.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>Primary Sources</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Primary sources are foundational documents or materials that provide direct evidence or firsthand information about a particular subject, event, or phenomenon. They are original records that have not been altered or interpreted by others. Primary sources include:</span></span></p> <ul> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Historical Documents&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Letters&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Diaries</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Photographs&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Video</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Eyewitness Accounts</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Interviews</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Research Data</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Artifacts</span></span></p> </li> </ul> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">These sources offer a direct window into the past or the specific subject of inquiry. They allow researchers to engage with the raw material of their field.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">The significance of primary sources lies in their ability to offer insight into the past or the subject we are researching. Researchers can use primary sources to develop a deeper understanding of historical contexts. Primary sources give us access to the thoughts and perspectives of individuals from the past. They allow us to scrutinize original data. Primary sources are critical for history, anthropology, sociology, justice, and the sciences, where researcher depend on empirical data about their topic.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">However, bias, subjectivity, and the constraints of the time during which the author created them often skew the information provided by primary sources. Researchers must assess primary sources&#39; authenticity, credibility, and context to ensure reliability. As AI and authentic-looking fakes become increasingly convincing, researchers must carefully verify the authenticity of source digital materials.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>Secondary Sources</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Secondary sources are different than primary sources. Secondary sources explain or talk about the information from primary or other sources. Examples of secondary sources include:</span></span></p> <ul> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Textbooks</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Blog Posts</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Magazine Articles&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Video Documentaries</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Encyclopedias and Wikis</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Study Aids (e.g., Course Hero)</span></span></p> </li> </ul> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">These sources help us understand complex topics by giving us insights and perspectives we wouldn&#39;t have otherwise. Secondary sources often make it easier to research a topic because they summarize lots of information for you. People use them in literature reviews to find out what others have said about a topic before writing their article or post.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">As researchers, we need to be careful when using secondary sources. We depend on the author&#39;s knowledge when using a secondary source. My mother used to say that you must always cut open at least one sausage to see what&#39;s in it before serving it to your family. So it is with secondary sources! The author may add their own opinions or favor one idea.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">For this reason, it is always important to check who wrote the article and critically examine whether it is good source by comparing it with other sources. Do they provide links or citations to other reliable sources? You need to understand how the author made &#39;the sausage.&#39; When searching for trustworthy secondary sources, in the back of our&nbsp;minds, we as researchers should take&nbsp;into account the following list of considerations&nbsp;from&nbsp;a library website&nbsp;(Pilgrim Library: Finding Primary Sources: Evaluating Primary &amp; Secondary Sources, 2023):&nbsp;</span></span></p> <ul> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">The author and what they do for a living (Are they professional journalists, researchers, bloggers, or other experts?)</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Are they an expert in the field, and what other research activities can you find that show them as a credible source?&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Did a scholarly publisher publish the book or journal?</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">How long has the publisher been active in the field, and what is its reputation?</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">What is the text&#39;s purpose or motivation?</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Does the writer, publication, or website you found it on have a clear bias?&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Does the book or article have a comprehensive bibliography?&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">What primary sources is the author referring to?&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">What secondary sources is the author using?&nbsp;</span></span></p> </li> <li> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Does the text have verifiable citations so you can research further?</span></span></p> </li> </ul> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>Peer-Reviewed Sources</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Peer-reviewed sources are particular kinds of secondary sources. Experts look at the source&#39;s quality, truth, and importance before publication in a journal. They do this anonymously so they can be fair. These types of sources are usually excellent because they have high standards. Peer-reviewed sources include articles in journals, books about conferences, and academic books. They have a particular structure, like citing primary sources, discussing other literature about the topic, describing how the researchers conducted their research (usually in a methodology section), and are&nbsp;part of ongoing conversations in that field.</span></span><span style="font-size:130%;"><span style="font-family:verdana;"> They provide citations that researchers can use as a road map in their research of topics in the field.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Peer-reviewed sources provide the gold standard in academic research. While not perfect, peer-reviewed articles provide the highest probability that what we are reading is reliable and vetted knowledge and that research is grounded in the best available evidence. Scholars and researchers rely on peer-reviewed sources to stay current with field developments, support their arguments, and build upon existing research.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>How should researchers regard the integrity of bot-generated essays and research?</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">I regard AI or Chat Bot-generated text as a turbo-charged, customizable,&nbsp;<strong><em>secondary source</em></strong>. As such, most AI applications&nbsp;suffer&nbsp;from the &quot;sausage&quot; problem plaguing secondary sources I articulated above. Where did the bot find its information? Is the bot developing its information from reliable, unbiased sources? You can only know the answer to these questions by researching yourself.&nbsp;(Perplexity.ai, which I came upon only recently, is a notable exception that lists its sources.) </span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">AI-generated text comes from primary and secondary information sources and naturally includes interpretations or analyses. Chatbots generate text using natural language processing algorithms to interpret and analyze the source material and produce a new piece of writing.</span></span></p> <p style="text-align: justify;"><strong><span style="font-size:130%;"><span style="font-family:verdana;">How Chatbots Evaluate Information Sources</span></span></strong></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Like their human counterparts, chatbots also use source verification techniques to evaluate the authority of an article. This validation technique involves looking at who wrote the article and verifying whether they are experts in the subject matter. A chatbot may look at factors such as the author&#39;s credentials, previous publications, and any awards they have received related to their work. The chatbot may also check if the author has been quoted in other reputable sources or if they have links to reputable organizations or institutions (<em>LibGuides: AI Chatbots (ChatGPT): Teaching And Learning: Introduction</em>, 2023).&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Citation analysis is another way chatbots evaluate the authority of an article. Citation analysis involves looking at how often a particular article has been cited by other authors and determining whether it is considered authoritative within its field. Chatbots can also examine which journals have published articles citing this particular article and their relative impact (Lee et al., 2023).&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Chatbots likewise borrow a method&nbsp;from search ranking&nbsp;to determine which websites link back to a particular article and assess its credibility based on domain age, page rank, and number of incoming links from other sites. Chatbots may also look for links from trusted websites, such as government agencies or educational institutions, to assess an article&#39;s reputation and authority within its field of study (Kooli, 2023).&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Finally, to parse the reliability of sources on an&nbsp;<strong><em>emotional</em></strong>&nbsp;level, programmers are teaching bots to analyze text for positive or negative sentiment toward a particular topic or idea to determine whether an author has expressed support for it. By considering sentiment when evaluating articles, chatbots can better identify those written by experts who are knowledgeable about their topics and more likely to provide accurate information (<em>How to Develop Chatbots With Real-Time Sentiment Analysis</em>, 2022).</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>What Are Chatbots Good At?</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">These techniques may ensure that output from bots provides valuable insights and a good summary of what is &quot;known&quot; about a topic. Chatbots are particularly useful for researchers seeking a quick understanding of a broad topic. They also provide an excellent road map for further investigation. For example, asking a chatbot to tell you five ways businesses apply AI to Marketing will necessarily lead an investigator to how AI affects keyword search and SEO. From there, the researcher can learn about specific examples and case studies -- all in the space of a few moments. </span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>Chatbots And Learning</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">The pedagogical opportunities for a technology like this are breathtaking (Hensell &amp; Cameron, 2023). Imagine a study buddy for a&nbsp;college student&nbsp;who can provide online tutoring about anything in their school curriculum. The chatbot can provide this information based on the student&#39;s needs and as the student requires, whenever and wherever the student needs it. Do you have a math problem you can&#39;t solve? You will find it hard to stump the chatbot. You can give Chat GPT a poorly written paragraph and tell it, &quot;Please correct the grammar in the following paragraph,&quot; then cut and paste the paragraph you need to have edited. In my tests, it rewrote&nbsp;even the grammar-challenged prose into perfect,&nbsp;grammatically correct English. Finally, it can even help you learn how to code. An engineering&nbsp;master&#39;s student at a top university told me his professor allows students to use it to develop their coding assignments. </span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">The technology&nbsp;can also help with college or graduate school planning by providing information about colleges and universities nationwide. It can help students&nbsp;compare schools based on academic ranking, student satisfaction, cost, location, size, etc. The chatbot can also answer&nbsp;questions and advise on applying for financial aid or scholarships. This buddy is <em><strong>free</strong></em> because the bot wants&nbsp;to learn from the students about their needs.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Talk about leveling the playing field!</span></span></p> <p style="text-align: justify;"><strong><span style="font-size:130%;"><span style="font-family:verdana;">Chatbot &#39;Imperfections&#39;</span></span></strong></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Notwithstanding the above, it&nbsp;is essential to remember that chatbots&nbsp;are&nbsp;<strong><em>only sometimes</em></strong>&nbsp;accurate representations of the source material and reality (Fowler &amp; Merrill, 2023). We are leaving it to a computer algorithm (and Open AI or Microsoft Bing Chat or&nbsp;Google Bard programmers) to determine whether the source it is accessing is reliable. </span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">If you need to be 100 percent correct, you need to check. &quot;Garbage in, garbage out&quot; is the easiest way I can summarize the problem of using chatbots&nbsp;<strong><em>exclusively</em></strong>&nbsp;for researching or writing posts and essays (Alba, 2022). An entire cottage industry has been tracking and cataloging Chat Gpt and other bots&#39; failings (Giuven, n.d.)&nbsp;<a href="https://github.com/giuven95/chatgpt-failures" target="_blank">Researchers, mathematicians, logicians, and political advocates of all stripes delight in tripping up Chatgpt and New Bing and gleefully&nbsp;documenting failures.</a>&nbsp;Without verifying a few primary and secondary sources in your search to double-check what the bot found and wrote, you are flying blind. Generally, the broader and more codified the topic you are researching, the more likely the chatbot will return a good answer.&nbsp;<a href="https://www.pmi.org/pmbok-guide-standards?s_kwcid=AL!8620!3!649201254841!e!!g!!project%20mgmt%20institute&amp;gclid=Cj0KCQjw1OmoBhDXARIsAAAYGSFceqUXtt8-rMK1poDHm5qykQTEkoL1LSLwOiq4ewHwl4hBToTsVaQaAvdfEALw_wcB" target="_blank">Project Management&#39;s PIMBOK guide</a>&nbsp;makes Bots exceptionally knowledgeable and accurate about Project Management best practices, and the FASB is excellent for guiding answers to accounting questions. If filet mignon goes in the meat grinder, you get good sausage.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Another thing chatbots are <em><strong>not</strong></em> good at is writing essays that reflect you as a person. Depending on the institution, colleges and universities&#39; admission departments take different positions on using Chatbots to generate essays. Some, like the University of Michigan Law School, forbid it altogether (Singer, 2023), while others allow it but suggest that students adapt the output. At Georgia Tech, for example, according to a recent New York Times article, the College Admissions Department has guidelines &quot;encouraging high school applicants to use AI tools as collaborators to &quot;brainstorm, refine and edit&quot; their ideas. At the same time, the site warned applicants that they should &quot;not copy and paste content you did not create directly into your application (Singer, 2023).&quot;</span></span></p> <p style="text-align: justify;"><strong><span style="font-size:130%;"><span style="font-family:verdana;">A Way Forward</span></span></strong></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">My advice? Go forward, but verify. You will be mostly pleased -- if not amazed by what you get. We have yet to reach the place where chatbots are researchers&#39; one-stop shop, but chatbots are getting better every day. Researchers should spend time with Google Search or Bing to cross&mdash;reference primary and secondary source materials with bot-generated essays and research papers to identify discrepancies between them. Researchers can also consult people knowledgeable in the field to see if what the bot found and summarized reflects reality. Finally, researchers can and should cite bots as a source (it&#39;s increasingly allowed, even in academic circles), but rewrite their &quot;botly&quot; prose into their own words and check and cite other sources too. Finally, educators and business leaders&nbsp;would do well to stop pearl-clutching about bot technology&#39;s misuse and minor failings and spend more time exploring how to use it to help their students learn and their employees become more productive.&nbsp;</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>Conclusion</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Understanding primary, secondary, and peer-reviewed sources is essential to good research. Primary sources are original information. Secondary sources can give more details about the original information. Academic groups check peer-reviewed sources carefully to ensure they are reliable and trustworthy, so peer-reviewed papers tend to be the most reliable of all. When using AI-generated research, verifying the accuracy of the information generated by cross-checking and referencing primary, secondary, and human sources is critical. Knowing when and how to use these&nbsp;sources makes your research more trustworthy. Some day, AI will become so powerful and intelligent that its replies will rival the accuracy and transparency of peer-reviewed articles. In the meantime, researchers should cross reference and&nbsp;investigate as many&nbsp;types of sources as possible to verify what their sources and the bots tell them. Even with their&nbsp;imperfections, Chatbots offer business and academic researchers a way to increase productivity.</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><strong>References</strong></span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Alba, D. (2022, December 8). ChatGPT, Open AI&#39;s Chatbot, Is Spitting Out Biased, Sexist Results.&nbsp;<i>Bloomberg.com</i>. https://www.bloomberg.com/news/newsletters/2022-12-08/chatgpt-open-ai-s-chatbot-is-spitting-out-biased-sexist-results</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Fowler, G. A., &amp; Merrill, J. B. (2023, April 14). The AI bot has picked an answer for you. Here&#39;s how often it&#39;s bad.&nbsp;<i>Washington Post</i>. https://www.washingtonpost.com/technology/2023/04/13/microsoft-bing-ai-chatbot-error/</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Giuven. (n.d.).&nbsp;<i>GitHub - giuven95/chatgpt-failures: Failure archive for ChatGPT and similar models</i>. GitHub. https://github.com/giuven95/chatgpt-failures</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Hensell, H., &amp; Cameron, C. (2023, September).&nbsp;<i>AI Chat GPT Should We Reject It Like We Did Wikipedia</i>? Remington College Refresher Summit 2023, Online Summit. https://remingtoncollege.brightspace.com/d2l/le/lessons/21191/topics/317396</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><i>How to Develop Chatbots With Real-Time Sentiment Analysis</i>. (2022, October 27). Vonage.com. Retrieved October 2, 2023, from https://www.vonage.com/resources/articles/develop-chatbots-real-time-sentiment-analysis/</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Kooli, C. (2023). Chatbots in Education and Research: A Critical Examination of ethical implications and solutions.&nbsp;<i>Sustainability</i>, <i>15</i>(7), 5614. https://doi.org/10.3390/su15075614</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">Lee, S. E., Ju, N., &amp; Lee, K. (2023). Service chatbot: Co-citation and big data analysis toward a review and research agenda.&nbsp;<i>Technological Forecasting and Social Change</i>, <i>194</i>, 122722. https://doi.org/10.1016/j.techfore.2023.122722</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><i>LibGuides: AI Chatbots (ChatGPT): Teaching &amp; Learning: Introduction</i>. (2023, March 15). https://guides.westoahu.hawaii.edu/chatgpt</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;"><i>Pilgrim Library: Finding Primary Sources: Evaluating primary &amp; secondary sources</i>. (2023, July). https://library.defiance.edu/primarysources/evaluating</span></span></p> <p style="text-align: justify;"><span style="font-size:130%;"><span style="font-family:verdana;">OpenAI. (2023).&nbsp;<em>ChatGPT</em>&nbsp;(September 25 Version) [Large language model]. https://chat.openai.com</span></span></p> <p style="text-align: justify;"><span style="font-family:verdana;"><span style="font-size:130%;">Singer, N. (2023, September 1). Ban or embrace? Colleges wrestle with A.I.-Generated admissions essays.&nbsp;<i>The New York Times</i>. https://www.nytimes.com/2023/09/01/business/college-admissions-essay-ai-chatbots.html#:~:text=chatbots%20to%20generate%20ideas%20or,might%20have%20a%20democratizing%20effect.</span></span></p> <p style="text-align: justify;">&nbsp;</p> <p style="text-align: justify;">&nbsp;</p> 23Buying and Delivery Preference -- The New Battleground?https://rrassoicates.azurewebsites.net/Rons-Blog/PostId/22/buying-and-delivery-preference-the-new-battlegroundConversion Improvement,Customer Complaints,customer experience,Customer Relationship Management,New Product DevelopmentWed, 15 Mar 2023 16:58:00 GMT<p><meta name="uuid" content="uuidmmd6o7mSTz8l" /><meta charset="utf-8" /></p> <p style="text-align: justify;"><span style="font-size:larger;">The most important thing we do as marketers is to segment our markets. Segmentation allows us to define target audiences and customize our products, services, and advertising. However,&nbsp;segmentation should be based on traditional demographics like age, income, or psychographics and&nbsp;<strong><em>how&nbsp;</em></strong>customers prefer to buy.&nbsp;&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">By considering customers&#39; purchasing behavior &ndash;&nbsp;<em>when they purchase, which distribution channels they use, which payment method they use, what they are doing when they buy, and how much time they take to make purchase decisions</em>&nbsp;&ndash; marketers can ensure improved product and service designs. They can better target their advertising messages and establish more robust and profitable connections with their clients.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">This blog post will explore how understanding&nbsp;<strong>customer purchasing behaviors</strong>&nbsp;can enhance segmentation efforts, create new paths to the market, and lead to a more successful business!</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>How Do You Like Your Coke?</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Emory University Marketing Professor Sandy Jap, the co-author of<strong><em>&nbsp;A Field Guide to Channel Strategy&nbsp;</em></strong>(Coughlan &amp; Jap, 2016), reminds us that the best marketers &quot;<em>think about market opportunities and harness value in a broader way than only with a product or a price..</em>.&quot; As an example, in an <a href="https://www.coursera.org/learn/marketingchannelbenefits#syllabus">online lecture</a>, Professor Jap cites the many ways we might consume the soft drink Coca-Cola: with a Big Mac (as a fountain drink), with a 7.5-ounce mini bottle served with Bacardi and lime (at an elegant bar), in twelve-ounce bottles during a late-night drive home (at a gas station), in 32-ounce bottles as a mixer at a party (purchased at a grocery store chain.) Each way of consuming a Coke represents a&nbsp;<em>different use case</em>,&nbsp;<em>cost per ounce</em>, and a distinct&nbsp;<em>distribution channel</em>&nbsp;for Coke. Indeed, one of Professor Jap&#39;s central messages is that consumers are often willing to pay&nbsp;<strong><em>premium prices&nbsp;</em></strong>to receive the good or service the&nbsp;<strong><em>way</em></strong>&nbsp;they want to consume it when they want to drink it.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Pandemic Impact</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">The need for differentiation goes beyond product extensions in the consumer packaged goods industry. The Pandemic has poured gasoline on a user experience fire ignited by the Internet a decade ago. The Pandemic stay-at-home rules forced users to experiment with new product and service delivery mechanisms. This need, in turn, has driven business leaders to quickly adapt and focus on consumer buying preferences and behavioral segmentations. New segments pop up almost monthly as consumers explore, then expect, alternative buying and delivery channels for goods and services.&nbsp;</span></p> <p><img alt="" src="/Portals/0/New-delivery-buying-post-pandemic2.png" style="width: 800px; height: 800px;" title="" /></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Not Just A Product, Not Just A Service -- Something In Between</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">We now have the hybridization of products and services as online access becomes integrated into the purchase process. Here is a list of service trends that have emerged recently:</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Ordering Online With Home Delivery.&nbsp;</strong>Amazon&#39;s excellence in logistics has forever changed how we buy. Home delivery is convenient. Online ordering of goods we used to drive to the store to buy has experienced rapid growth since the Pandemic. We have learned that it is nice not to leave our homes and still receive items we order online. We have come to expect two-day delivery of just about anything. Today, retail companies offer home delivery via UPS, FedEx, and the Postal Service. It has not stopped there. Door Dash or Uber Eats will bring food orders to your home or&nbsp;<a href="https://www.youtube.com/watch?v=w3xiLGFRiLM" target="_blank">place of work</a>&nbsp;in minutes (PSC Highlights, 2023). Fast food providers have begun to differentiate themselves with home food delivery around food delivery occasions like watching the Super Bowl or&nbsp;<a href="https://www.youtube.com/watch?v=r6RaVv3s3qw" target="_blank">NBA basketball</a>&nbsp;(DoorDash, 2022). Instacart will deliver an electronic game to a user&#39;s home, so they don&#39;t have to stop gaming with friends! (<em>Bop It Electronic Games Products Delivery or Pickup Near Me | Instacart</em>, n.d.) Carvana will allow users to compare, select, finance, and receive delivery of a used car -- all online (Betterton, 2022).</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Buy Online Pickup In-Store (BOPIS)&nbsp;</strong>is another service permutation. This offering allows customers to order products or services online and then pick up the product at the store (Polson, 2022). Demand for these services already existed, but it has burgeoned as the Pandemic has driven trial. Online ordering is convenient for customers as they can shop from home or work but still have the immediacy of same-day availability. Examples abound. Best Buy has leveraged the combination of its brick-and-mortar network and its online presence to offer customers this option. Amazon has already started leveraging its Whole Foods locations by adding lockers where customers can pick up orders by entering a delivery code emailed with the delivery confirmation information. Home Depot has been experimenting with a similar service to allow customers to pick up smaller products in lockers outside their stores. Need lumber or other building supplies? Users can order them online, and both Lowes and Home Depot will cart them up and bring them to their car or truck.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Custom Manufacturing with In-Store Pickup (MOPUS) or Home Delivery.&nbsp;</strong>(Polson, 2022) Computer manufacturers like Dell and Apple and furniture manufacturers like Ethan Allen have long provided users with the ability to select custom features for products and have them manufactured to order. A small number of auto manufacturers are beginning to do the same thing. Tesla offers this purchase structure with its products. To compete, Volvo has started offering this service with its&nbsp;<a href="https://www.kbb.com/electric-car/" target="_blank">electric vehicles</a>, such as the&nbsp;<a href="https://www.kbb.com/volvo/c40-recharge/" target="_blank">C40 Recharge SUV</a>, which is ordered online and picked up at a dealership. As Industry 4.0 brings forth intelligent, autonomous, and flexible manufacturing capabilities, we should see increasing innovation in this area (<em>What Is Industry 4.0? | Definition, Technologies, Benefits | SAP Insights</em>, n.d.).</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Subscription Services.&nbsp;</strong>Companies offer subscription services, allowing customers to receive products or services regularly at previously agreed intervals, another type of service. Subscription purchases are convenient for customers as they do not have to remember to order the products or services on their own. My pest control company visits our home six times a year. Regular replacement products that are hard to remember but need to buy at regular intervals (pet food, refrigerator water filters, HVAC filters, disposable razors, and contact lenses, for example) are perfect for these automatic sales methods. See&nbsp;<a href="https://vimeo.com/manage/videos/254744528" target="_blank">my Video</a>&nbsp;about this product delivery strategy here.&nbsp;&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Similarly, a subscription can work well for high-value-added or unique goods that need to be organized or sourced from an unusual vendor. For example, <a href="https://sitkasalmonshares.com/products/premium-seafood-subscription-box">Alaskan fish processors</a>, <a href="https://www.cawineclub.com/">California Vintners</a>, and <a href="https://thehonestbison.com/about/">South Dakota&nbsp;Bison</a> farmers are examples of types of vendors that send monthly shipments of their products to households nationwide.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Closer to home here in Tennessee, a farm cooperative allows neighborhood groups in Knoxville to sign up for and receive routine deliveries of fresh vegetables to centralized locations throughout the summer months. A local doctor in Oak Ridge, Tennessee, has patients pay an annual fee to gain access to a broader suite of services and manage their total health. Subscription services are convenient for customers and save businesses money by reducing client acquisition costs and allowing the companies to predict how much product or service customers will need and when.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Membership Programs.&nbsp;</strong>Membership programs are another service designed to differentiate the offering by giving customers exclusive benefits and making buying easier. Membership programs offer discounts, early sales access, and free shipping.&nbsp;<a href="https://www.amazon.com/b/?node=23945845011">Amazon&#39;s Prime</a> is one such membership program. Prime customers gain access to music and entertainment streaming and free package delivery annually. Prime members spend about two or three times as much as non-prime customers and enjoy higher&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/9/the-amazing-healing-power-of-clv" target="_blank">customer lifetime value</a>&nbsp;(Ryan, 2018). Membership programs benefit businesses and customers as businesses can increase customer loyalty and spending while customers can save money on the products or services they purchase.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Industries with Large Customer Information Requirements.&nbsp;</strong>Often, membership programs can front-load heavy information requirements in exchange for point-of-sale buying convenience. For example, in car rentals, membership programs like <a href="https://www.hertz.com/rentacar/misc/index.jsp?targetPage=gold_plus_rewards_overview.jsp">Hertz Number One Club</a> can leverage a robust Customer Relationship Management System to store a great deal of information in advance (driver&#39;s license, credit card, car preference, etc.) Busy business customers can enter the car and drive away by showing identification at the gate, reducing business travel time.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Innovative Service Contract Structures.&nbsp;</strong>Customer segmentation around purchase preference extends to service industries as well. For example, competitors in the telecommunications sector differentiate their service offerings around different contract terms to entice new customers (Blumenthal, 2023). A common innovation is adaptations that help younger, less creditworthy customers obtain phone service.</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><strong>Cricket Wireless&nbsp;</strong>offers a prepaid wireless service that allows users with little or no credit experience to gain access to the AT&amp;T wireless network (Cox &amp; Timmermann, 2023).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>T-Mobile</strong>&nbsp;likewise offers service contracts that do not require a credit check for new customers. Customers with poor credit can still sign up for T-Mobile service. (Herosmyth Staff, 2020).</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>Verizon</strong>&nbsp;targets families by offering discounts for customers who sign up for multiple service lines. For example, a customer who signs up for several service lines, one for each family member, will receive a discount.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>AT&amp;T</strong>&nbsp;offers discounts for customers who bundle their services. For example, customers bundling their wireless, home internet, and home phone services will receive a discount.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>US Cellular</strong>&nbsp;offers free phones for new customers, allowing customers to get a new phone without paying any upfront costs.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong>Virgin Mobile</strong>&nbsp;offers only month-to-month contracts, not annual ones, allowing customers to cancel their service without paying termination fees.</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Differentiation In Financial Services.&nbsp;</strong>For a final example, we use the online stock brokerage industry, which has seen large amounts of new product development to make it easy for new investors to purchase and manage investments (Monchau, 2021). Here are several examples:</span></p> <ul> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.acorns.com/"><strong>Acorns</strong></a>&nbsp;allows users to automatically invest their spare change from everyday credit card purchases into a portfolio of ETFs. Acorns charges a monthly fee but is currently waiving all fees to students.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.betterment.com/resources/how-betterment-technology-manages-money"><strong>Betterment</strong></a>&nbsp;is an online financial planning and investment management service that provides &quot;robo-advisor&quot; financial planning services, such as tax optimization and portfolio rebalancing. This structure allows Betterment to charge a lower yearly fee than many competitors for its services (Betterment Editors, 2022).&nbsp;&nbsp;</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.fool.com/the-ascent/buying-stocks/m1-finance-review/"><strong>M1 Finance</strong></a>&nbsp;is an online platform that introduced fractional share trading in 2017. Fractional share trading is a boon to small investors. It allows an investor to buy a portion of a share rather than pay for an entire share. M1 has taken this one step further to develop a &quot;pie&quot; system that allows users to create custom portfolios of individual stocks or ETFs.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><strong><a href="https://www.fool.com/the-ascent/buying-stocks/robinhood-review/">Robinhood</a>&nbsp;</strong>offers commission-free trading of stocks, ETFs, and options. Robinhood also offers access to cryptocurrency trading. A unique feature of Robinhood is its &quot;Gold&quot; subscription service, which allows investors to trade on margin and access after-hours trading. Robinhood began offering fractional share trading in 2019.</span></li> <li style="text-align: justify;"><span style="font-size:larger;"><a href="https://www.stash.com/stock-back-debit-card"><strong>Stash</strong></a>&nbsp;is an online investing service that rewards its users with stock when they purchase with certain retailers using their debit card linked to their Stash account.</span></li> </ul> <p style="text-align: justify;"><meta name="uuid" content="uuid7rNd2FYKWUp8" /><meta charset="utf-8" /><span style="font-size:larger;">In the insurance industry, where I have spent much of my career, companies have likewise segmented users based on purchase preferences. They are leveraging&nbsp;the Internet to deliver new ways to buy&nbsp;insurance coverage:</span></p> <ul> <li><span style="font-size:larger;"><strong>Comparison Shopping.&nbsp;</strong>Two decades ago,&nbsp;<strong><a href="https://www.progressive.com/auto/discounts/compare-car-insurance-rates/" target="_blank">Progressive Insurance</a></strong>,&nbsp;<strong><a href="https://www.answerfinancial.com/" target="_blank">Answer Financial</a></strong>, and&nbsp;<strong><a href="https://www.insurance.com/" target="_blank">Insurance.com</a></strong>&nbsp;were pioneers in allowing consumers to compare insurance rates online and purchase coverage. Permutations&nbsp;now abound.&nbsp;</span></li> <li><span style="font-size:larger;"><strong>Policy and Dealer-based Shopping Services.&nbsp;<a href="https://www.gabi.com/" target="_blank">Gabi.com</a></strong>, for example,<strong>&nbsp;</strong>provides a unique service that lets people upload their current policy. Gabi uses it to find cheaper policies with similar coverage, thus avoiding the sometimes painful process of combing through existing policy details.&nbsp; &nbsp;<strong><a href="https://www.autocomplete.io/dealers" target="_blank">Autocomplete.io</a></strong>, a more recent entrant, noted that many people buy from auto dealers when they purchase a car. Autocomplete has developed a sales platform addressing that channel&#39;s unique needs.</span></li> <li><span style="font-size:larger;"><strong>Picking your price.</strong>&nbsp;<strong><a href="https://www.progressive.com/auto/discounts/name-your-price/" target="_blank">Progressive.com</a></strong>&nbsp;has developed a trademarked tool, &quot;<a href="https://www.progressive.com/auto/discounts/name-your-price/"><b><i>Name your own price</i></b></a>,&quot; that allows consumers to indicate how much coverage they can afford and use the rater to find a policy that fits their budget.</span></li> <li><span style="font-size:larger;"><strong>Usage-based pricing.&nbsp;</strong>Progressive was one of the first insurance companies to offer usage-based insurance programs and is now one of the largest providers of such programs in the United States. The company&#39;s&nbsp;<a href="https://www.progressive.com/auto/discounts/snapshot/" target="_blank"><em>Snapshot</em></a>&nbsp;program uses a plug-in device that tracks various driving factors, including mileage, time of day, and braking habits. Drivers who sign up for the program can receive discounts of up to 30% on their premiums.&nbsp;<strong>Allstate</strong>&nbsp;offers two usage-based insurance programs:&nbsp;<a href="https://www.allstate.com/drivewise" target="_blank"><em>Drivewise</em></a>&nbsp;and&nbsp;<a href="https://www.allstate.com/auto-insurance/milewise" target="_blank"><em>Milewise</em></a>. Drivewise uses a plug-in device to track driving habits, while Milewise uses a phone app to track mileage. Drivers who sign up for either program can receive discounts of up to 20% on their premiums.&nbsp;<strong>State Farm,</strong>&nbsp;<strong>Liberty Mutual</strong>, and&nbsp;<strong>Nationwide</strong>, among others, use a similar telematics device to track various driving factors, including mileage, speed, and braking habits. Insurers boast that careful, low-mileage drivers who sign up for the program can receive up to 50% discounts on their premiums.</span></li> </ul> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Affordable Research Methods</strong></span></p> <p style="text-align: justify;"><span style="font-size:larger;">Many think, &quot;we can&#39;t afford expensive focus groups to figure out how our customers want to buy!&quot; Here is a list of guerilla tactics -- affordable ways -- to understand how customers want to buy without spending much money. Pay particular attention to&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management" target="_blank">complaints</a>. The issues that make consumers mad in shopping and purchasing can be a gold mine of opportunities (Ryan, 2018).</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>CSRs and Others Involved in Customer Support.&nbsp;</strong>The first place to gather information on buying preferences is your organization&#39;s customer support teams. They will be able to provide anecdotal information on what is making their life and the lives of your customers difficult. Use this information for hypotheses, then go out and test with affordable online surveys.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Internal Complaint Logs.&nbsp;</strong>Many companies track customer complaints with either formal or informal tracking mechanisms. This data can provide invaluable insights into who is having trouble buying from you and how this is occurring. See my&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management" target="_blank">blog piece about complaints and complaints management</a>.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Social Media.&nbsp;</strong>Social media platforms like Facebook, Twitter, and Instagram are great ways to research how customers like to buy. Researchers can use the platform&#39;s search function to look for relevant hashtags, such as #buyonline or #shoplocal, and see what users say about purchase preferences. They can also follow relevant influencers in their industry and see how they promote their products or services. For more examples of social media marketing techniques, see our article,&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/24/28-examples-of-social-media-advertising-campaigns-small-businesses-can-use-to-build-their-brands">24&nbsp;Examples of Social Media Advertising Campaigns.</a></span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Online Forums.&nbsp;</strong>Online forums are another great way to research how customers like to buy. There are forums for every topic, so finding one relevant to the industry is easy. Once a researcher has found a forum, they should take some time to read through the threads and see what kind of questions people are asking and what type of advice they are giving.&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Google Trends.&nbsp;</strong><a href="https://trends.google.com/trends/trendingsearches/daily?geo=US&amp;hl=en-US"><em>Google Trends</em></a>&nbsp;is a free online tool that lets users set the popularity of e-specific keywords. This tool can help research how customers like to buy because researchers can see which keywords users search for more frequently. For example, if the company sells products online, marketers might want to research the keyword &quot;online shopping&quot; or &quot;how to buy [product x or y]. They can then use this information to adjust their marketing strategy accordingly.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Amazon Reviews. </strong>Marketers&nbsp;should use the platform&#39;s review system if the company sells products on Amazon. Customers who leave reviews are typically candid about their experience, so reading through them can give valuable insights into how customers like to buy. Just take the time to read through both positive and negative reviews to get a balanced understanding.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Blogs.&nbsp;</strong>Blogs can be a great source of information when researching how customers like to buy. Bloggers write about their personal experiences with different products and services. Search on Google or another search engine using relevant keywords to find relevant blogs. Once they find some blogs that look promising, take some time to read through them and see what insights they offer.</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>Podcasts.&nbsp;</strong>Podcasts are another great way to learn how customers like to buy. Many podcasts feature interviews with experts in various industries who share their insights on topics related to their expertise. Search on iTunes or another podcast directory using relevant keywords to find relevant podcasts.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">As we have seen, understanding&nbsp;<strong><em>how</em></strong>&nbsp;and&nbsp;<strong><em>why</em></strong>&nbsp;people want to buy is as important as understanding&nbsp;<strong><em>who</em></strong>&nbsp;wants to buy. Companies that know&nbsp;<strong><em>how</em></strong>&nbsp;we want to purchase are more likely to earn our business and keep us as customers. Customer complaints, social media, online discussion forums, Google Trends, blogs, and podcasts provide affordable sources of information on consumer preferences and are accessible to companies with even the tiniest budgets.</span></p> <p style="text-align: justify;"><span style="font-size:larger;">Go forth and learn how your customers want to buy --&nbsp;<em>then</em>&nbsp;segment. You will be happy you did!&nbsp;</span></p> <p style="text-align: justify;"><span style="font-size:larger;"><strong>References</strong></span></p> <p style="text-align: justify;"><em>2023 Volvo C40 Recharge Price, Reviews, Pictures &amp; More | Kelley Blue Book</em>. (2022, September 1). KBB.&nbsp;<a href="https://www.kbb.com/volvo/c40-recharge/">https://www.kbb.com/volvo/c40-recharge/</a></p> <p style="text-align: justify;"><em>Best Electric Vehicles of 2023 - Top-Rated New Electric Vehicles Ranked | KBB.com</em>. (n.d.). Kbb.com. <a href="https://www.kbb.com/electric-car/">https://www.kbb.com/electric-car/</a></p> <p style="text-align: justify;">Betterment Editors. (2022, September 1).&nbsp;<em>How Betterment&#39;s Tech Helps You Manage Your Money</em>.&nbsp;<a href="https://www.betterment.com/resources/how-betterment-technology-manages-money">https://www.betterment.com/resources/how-betterment-technology-manages-money</a></p> <p style="text-align: justify;">Betterton, R. (2022, October 6).&nbsp;<em>How to use Carvana to buy a car</em>. Bankrate.&nbsp;<a href="https://www.bankrate.com/loans/auto-loans/guide-to-carvana/#proscons">https://www.bankrate.com/loans/auto-loans/guide-to-carvana/#proscons</a></p> <p style="text-align: justify;">Blumenthal, E. (2023, January 9).&nbsp;<em>Switching Phone Carriers in 2023: What to Know Before You Switch Providers</em>. CNET.&nbsp;<a href="https://www.cnet.com/tech/mobile/switching-cellphone-carriers/">https://www.cnet.com/tech/mobile/switching-cellphone-carriers/</a></p> <p style="text-align: justify;"><em>Bop It Electronic Games Products Delivery or Pickup Near Me | Instacart</em>. (n.d.). Instacart. <a href="https://www.instacart.com/categories/5059-toys-and-games/5060-games/5075-electronic-games?brand=bop-it">https://www.instacart.com/categories/5059-toys-and-games/5060-games/5075-electronic-games?brand=bop-it</a></p> <p style="text-align: justify;">Coughlan, A. T., &amp; Jap, S. (2016).&nbsp;<em>A Field Guide to Channel Strategy: Building Routes to Market</em>. Createspace Independent Publishing Platform.</p> <p style="text-align: justify;">Cox, D., &amp; Timmermann, M. (2023, February 23).&nbsp;<em>Cricket Wireless Review: 5 Things To Know Before You Sign Up</em>. Clark Howard.&nbsp;<a href="https://clark.com/technology/phones-mobile-devices/cricket-wireless-review/">https://clark.com/technology/phones-mobile-devices/cricket-wireless-review/</a></p> <p style="text-align: justify;">DoorDash. (2022, October 19).&nbsp;<em>DoorDash x NBA 2022 - Secret Handshake</em>&nbsp;[Video]. YouTube.&nbsp;<a href="https://www.youtube.com/watch?v=r6RaVv3s3qw">https://www.youtube.com/watch?v=r6RaVv3s3qw</a></p> <p style="text-align: justify;">Herosmyth Staff, H. (2020, February 24).&nbsp;<em>9 Perfect Brand Examples of Why It Pays to Differentiate</em>. Herosmyth. <a href="https://www.herosmyth.com/article/9-perfect-brand-examples-why-it-pays-differentiate">https://www.herosmyth.com/article/9-perfect-brand-examples-why-it-pays-differentiate</a></p> <p style="text-align: justify;">Monchau, C. (2021, March 26).&nbsp;<em>Thanks to Fractional Shares, Trading Is Accessible to Everyone</em>. Entrepreneur.&nbsp;<a href="https://www.entrepreneur.com/money-finance/thanks-to-fractional-shares-trading-is-accessible-to/367129#:~:text=Regarding%20the%20introduction%20of%20fractional,and%20Charles%20Schwab%20followed%20suit">https://www.entrepreneur.com/money-finance/thanks-to-fractional-shares-trading-is-accessible-to/367129#:~:text=Regarding%20the%20introduction%20of%20fractional,and%20Charles%20Schwab%20followed%20suit</a>.</p> <p style="text-align: justify;">Polson, K. (2022, August 16).&nbsp;<em>What is BOPIS Fulfillment? A Guide for Retailers</em>. <a href="https://blog.deckcommerce.com/what-is-bopis">https://blog.deckcommerce.com/what-is-bopis</a></p> <p style="text-align: justify;">PSC Highlights. (2023, January 26).&nbsp;<em>food delivery guy walks on the court during a college basketball game</em>&nbsp;[Video]. YouTube.&nbsp;<a href="https://www.youtube.com/watch?v=w3xiLGFRiLM">https://www.youtube.com/watch?v=w3xiLGFRiLM</a></p> <p style="text-align: justify;">Ryan, R. (2018, February 28).&nbsp;<em>Finding Increased Profits through Better Complaints Management |</em>. www.ronrassociates.com/blog. Retrieved March 15, 2023, from <a href="https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management">https://www.ronrassociates.com/Rons-Blog/PostId/7/finding-increased-profits-through-better-complaints-management</a></p> <p style="text-align: justify;">Ryan, R. (2018, February 8).&nbsp;<em>The Amazing Healing Power of Customer Lifetime Value | RonRAssoci</em>. Retrieved March 15, 2023, from <a href="https://www.ronrassociates.com/Rons-Blog/PostId/9/the-amazing-healing-power-of-clv">https://www.ronrassociates.com/Rons-Blog/PostId/9/the-amazing-healing-power-of-clv</a></p> <p style="text-align: justify;"><em>What is Industry 4.0? | Definition, technologies, benefits | SAP Insights</em>. (n.d.). SAP.&nbsp;<a href="https://www.sap.com/uk/insights/what-is-industry-4-0.html#:~:text=Industry%204.0%20is%20powered%20by,machinery%2C%20robots%2C%20and%20vehicles">https://www.sap.com/uk/insights/what-is-industry-4-0.html#:~:text=Industry%204.0%20is%20powered%20by,machinery%2C%20robots%2C%20and%20vehicles</a>.</p> <p style="text-align: justify;">&nbsp;</p> 228 Questions A Product Manager Should Ask About A New Producthttps://rrassoicates.azurewebsites.net/Rons-Blog/PostId/16/8-questions-a-good-product-manager-should-ask-about-a-new-productNew Product DevelopmentMon, 07 Feb 2022 02:09:24 GMT<p><meta name="uuid" content="uuidFsqEjameHcae" /><meta charset="utf-8" /></p> <p style="text-align: justify;">Product Management is among the most challenging disciplines in the business world because of its interdisciplinary nature.&nbsp; Product Managers need to be knowledgeable in Product Design, Business Economics, Consumer Psychology, User Experience Design, Project Management, Law, and Marketing.&nbsp; And because no one can be an expert in all of these fields, Product Managers must be master collaborators.&nbsp; Most of all, successful Product Managers must step back and ask&nbsp;<strong>hard questions</strong>&nbsp;of themselves and their team members.&nbsp; Here are the eight most essential questions Product Managers must ask along the way to a successful product.</p> <p style="text-align: justify;"><strong>Who are the customers for this product?</strong></p> <p style="text-align: justify;">As Product Managers, we need to research our customers and understand them deeply.&nbsp; Our goal is to identify and build buyer&nbsp;<em>personas</em>&nbsp;putting a fictionalized name and a face to key segments which will want and need our product.&nbsp; Persona development should always start with key demographics from third-party sources like&nbsp;<a href="https://www.statista.com/" target="_blank">Statista</a>&nbsp;and the&nbsp;<a href="https://www.census.gov/" target="_blank">US census bureau</a>.&nbsp; This data will identify segment trends.&nbsp; From the demographics, you can build out your profile.&nbsp; Explore financial, psychological, behavioral, and even aspirational aspects of your target market:&nbsp;&nbsp;</p> <ul> <li style="text-align: justify;">Where do your customers live and work?&nbsp;&nbsp;</li> <li style="text-align: justify;">What do they do in their spare time?&nbsp;&nbsp;</li> <li style="text-align: justify;">How do they get their news and purchase information?&nbsp;&nbsp;</li> <li style="text-align: justify;">How do they use technology?</li> <li style="text-align: justify;">How and where do they shop?&nbsp;&nbsp;</li> <li style="text-align: justify;">What economic pressures do they feel?&nbsp;&nbsp;</li> <li style="text-align: justify;">What is the source of this pressure?&nbsp;&nbsp;</li> </ul> <p style="text-align: justify;">These are all questions that a good Product Manager asks about his customer &ndash; both today and&nbsp;in&nbsp;the future.&nbsp;&nbsp;</p> <p style="text-align: justify;">For established companies, fan pages on Instagram, Facebook, Twitter, and visitor tracking from Google Analytics can all provide tools that allow you to gain insights into your customers.&nbsp; Social media has a great deal of information about customers, a topic we explore at some length in our blog piece on <a href="https://www.ronrassociates.com/Rons-Blog/PostId/11/small-company-big-data-huge-impact" target="_blank">Big Data Marketing</a>.&nbsp; Facebook and Twitter allow even the smallest companies to engage with and listen to their customers along the way.&nbsp;</p> <p style="text-align: justify;">Finally, prospective customer interviews provide deep insights.&nbsp; What are the expectations your customers have for an existing product or service?</p> <ol> <li style="text-align: justify;">How do they decide to buy?&nbsp;&nbsp;</li> <li style="text-align: justify;">Why do they choose&nbsp;<em>not</em>&nbsp;to buy?</li> <li style="text-align: justify;">How can you build a new product that not only meets but exceeds these expectations?&nbsp;&nbsp;</li> </ol> <p style="text-align: justify;">Adele Revella&#39;s book on&nbsp;<a href="https://www.amazon.com/Buyer-Personas-Customers-Expectations-Strategies/dp/1118961501/ref=asc_df_1118961501/?tag=hyprod-20&amp;linkCode=df0&amp;hvadid=312106851030&amp;hvpos=&amp;hvnetw=g&amp;hvrand=13382361301030501021&amp;hvpone=&amp;hvptwo=&amp;hvqmt=&amp;hvdev=c&amp;hvdvcmdl=&amp;hvlocint=&amp;hvlocphy=9013454&amp;hvtargid=pla-437619567332&amp;psc=1" target="_blank">Buyer Personas</a>&nbsp;is an excellent guide for interviewing customers, understanding your buyers, and building personas that deliver successful new products if you&#39;re new to persona development.</p> <p style="text-align: justify;"><strong>Does our product solve the&nbsp;<em>right</em>&nbsp;problem for these customers?</strong>&nbsp;&nbsp;</p> <p style="text-align: justify;">History is replete with examples of products that solved the wrong problem.&nbsp; Blackberry kept improving its keyboard while the industry moved to on-screen solutions.&nbsp; Kodak didn&#39;t think digital photography would ever be a thing.&nbsp; Xerox owned PARC lab that gave us the mouse, ethernet networking, and the laser printer yet famously failed to profit from these disruptive technologies as it continued to focus on its core copier business.&nbsp; The broad &quot;right question&quot; breaks down into many little ones.&nbsp; These include:</p> <ul> <li style="text-align: justify;">What other needs do customers have that our product can address?</li> <li style="text-align: justify;">How does our product compare to other products on the market that address the same condition or problem space?&nbsp;&nbsp;</li> <li style="text-align: justify;">What substitutes currently exist, and how are customers presently addressing these needs.</li> <li style="text-align: justify;">What will be the source of our competitive advantage over existing solutions?&nbsp;&nbsp;</li> <li style="text-align: justify;">Are there any potential customer segments we&#39;re overlooking or underserving with our current strategy?</li> </ul> <p style="text-align: justify;">The answers to these questions can only come from customers.&nbsp; Talk to them.&nbsp; I recommend two excellent books,&nbsp;<a href="https://www.amazon.com/Lean-Startup-Entrepreneurs-Continuous-Innovation-ebook/dp/B004J4XGN6/ref=tmm_kin_swatch_0?_encoding=UTF8&amp;qid=1644071008&amp;sr=1-1" target="_blank">Lean Startup</a>&nbsp;by Eric Ries and Cindy Alvarez&#39;s&nbsp;<a href="https://www.amazon.com/Lean-Customer-Development-Building-Customers/dp/B08VL4XRBY/ref=sr_1_1?crid=3L3RWFD46GPGZ&amp;keywords=lean+customer+development&amp;qid=1644071098&amp;s=audible&amp;sprefix=lean+custome%2Caudible%2C86&amp;sr=1-1" target="_blank">Lean Customer Development.</a>&nbsp; Eric provides the tree; Cindy the branches -- processes that will ensure you&#39;re building the right product for the right customers.&nbsp;&nbsp;</p> <p style="text-align: justify;"><strong>Are people motivated to buy and use our product?</strong>&nbsp;</p> <p style="text-align: justify;">To understand motivations, we first need to understand the kinds of motivation driving the use of the product.&nbsp; This knowledge will help frame the language we use in talking to our customers about their needs as we build the product.&nbsp;&nbsp;<em>Extrinsic motivations</em>&nbsp;push us to do things for monetary reasons or avoid punishment.&nbsp; Examples of extrinsically motivated activities include working, complying with legal requirements, or doing homework.&nbsp;&nbsp;<em>Intrinsic motivations</em>&nbsp;pursue personal growth, satisfaction, or out of an innate sense of duty.&nbsp; Good examples of things we do out of intrinsic motivation include working out, taking a not-for-credit course, or recreational skiing.&nbsp; Here are some additional ways of thinking about motivation and product:</p> <ul> <li style="text-align: justify;">What is the source of motivation for buying and using our product?&nbsp;</li> <li style="text-align: justify;">How can we increase this motivation?&nbsp; What can we say or do to increase this motivation in our customers?&nbsp;</li> <li style="text-align: justify;">What are some possible obstacles to achieving this motivation?&nbsp; How can we help our customers overcome these obstacles?&nbsp;</li> <li style="text-align: justify;">Are there any other factors we need to consider when motivating people to buy and use our product?</li> </ul> <p style="text-align: justify;">Nir Eyal&#39;s book,&nbsp;<a href="https://www.amazon.com/Hooked-How-Build-Habit-Forming-Products-ebook/dp/B00LMGLXTS/ref=tmm_kin_swatch_0?_encoding=UTF8&amp;qid=1644069619&amp;sr=1-1" target="_blank">Hooked</a>, explains how to make products habit-forming by building triggers, actions, and variable rewards into them.&nbsp; Eyal&#39;s techniques are applied chiefly to software products like online games and social media like&nbsp;Facebook, Twitter, and YouTube.&nbsp; But&nbsp;brilliant product managers have figured out how to build these elements into various products, including employee communications and compensation planning.&nbsp; For more on&nbsp;Nir Eyal&#39;s addictive engagement strategies please see our blog piece on <a href="https://www.ronrassociates.com/Rons-Blog/PostId/13/why-marketing-post-covid-will-be-about-love" target="_blank">Creating&nbsp;Community On and Offline&nbsp;to Drive Marketing Results.</a></p> <p style="text-align: justify;"><strong>Will customers understand our product?</strong></p> <p style="text-align: justify;">Remember trying to program a&nbsp;<a href="https://www.wired.com/2008/12/casio-spruces-u/" target="_blank">Casio Watch</a>?&nbsp; Whether it was the Illegibly small directions or the completely counterintuitive button interface on the front of the watch, just thinking about that product can give us a panic attack.&nbsp; How many of your university lectures or work meetings were interrupted by errant alarms going off on people&#39;s wrists?&nbsp; Product designers must bake intuitive design into the product, but what is intuitive to many software developers or product geeks is rarely apparent to the actual users.&nbsp; Usability questions to ask:</p> <ul> <li style="text-align: justify;">What is my customer understanding, and how is it essential for product success?</li> <li style="text-align: justify;">How can we determine if customers understand our product correctly?</li> <li style="text-align: justify;">What should we do if they don&#39;t?</li> </ul> <p style="text-align: justify;">Usability testing is a science unto itself.</p> <p style="text-align: justify;">To do it right, product managers need to become voyeurs.&nbsp;&nbsp;<a href="https://www.usertesting.com/" target="_blank">Usertesting.com</a>&nbsp;and&nbsp;<a href="https://dscout.com/" target="_blank">dScout.com</a>, among other providers, allow companies to request anonymous screen-recorded, narrated tests of people going through a website or application.&nbsp; Another favorite,&nbsp;<a href="https://www.figpii.com/" target="_blank">figpii.com</a>, in the conversion optimization space, will enable you to follow heat maps of your website&#39;s users, highlighting places where consumers become derailed in the conversion process.&nbsp; &nbsp;</p> <p style="text-align: justify;"><strong>Will customers keep our product?&nbsp;</strong></p> <p style="text-align: justify;">Many products, especially&nbsp;financial services, have high acquisition costs and depend on high customer retention rates to achieve profitability.&nbsp; Auto insurance is a great example.&nbsp; It can take as many as three years to earn back the acquisition cost of an auto insurance policy sold over the internet.&nbsp; Finding ways to identify people who will keep their policies and pay their premiums (and keep paying them) has become necessary in many parts of the financial services industry.&nbsp; But customer retention is a challenge for all new products &ndash; from websites to online education to subscription products.&nbsp; Here are some questions we use to identify retention challenges:</p> <ul> <li style="text-align: justify;">How can we ensure that customers will continue to use our product after they&#39;ve purchased it?&nbsp;</li> <li style="text-align: justify;">What are the profitability consequences of them&nbsp;<em>not</em>&nbsp;doing so?</li> <li style="text-align: justify;">How will we measure customer retention?&nbsp; &nbsp;See our blog article on <a href="https://www.ronrassociates.com/Rons-Blog/PostId/9/the-amazing-healing-power-of-clv" target="_blank">Customer Lifetime Value</a>&nbsp;for more on this topic.</li> <li style="text-align: justify;">How can we improve upon retention once we see it failing to meet our goals?</li> </ul> <p style="text-align: justify;">The bottom line?&nbsp; Every product designer needs to study&nbsp;after-sales processes as hard as they think about those leading up to the sale.&nbsp; Personalized experiences and confirmation emails that ask customers about the buying experience and how we improve it can help with this part of the customer journey.&nbsp; Finding ways of thanking customers and bringing them back to you should be part of the initial product design.&nbsp;&nbsp;</p> <p style="text-align: justify;"><strong>Does our product have any legal issues?</strong></p> <p style="text-align: justify;">Legal issues typically come in three or four flavors in the new product development world.&nbsp; They include intellectual property, product liability, customer contracts, and privacy.&nbsp;&nbsp;</p> <ul> <li style="text-align: justify;"><strong>Intellectual Property Law</strong>&nbsp;protects ideas, designs, and inventions - make sure your product doesn&#39;t infringe on existing patents or copyrights.&nbsp; My favorite example here is from the startup Jarvis.ai which had to change its name to&nbsp;<a href="https://medium.com/@nightingalecopywriting/marvel-disney-threaten-legal-action-against-copywriting-a-i-software-e9bcf35651dd#id_token=eyJhbGciOiJSUzI1NiIsImtpZCI6IjE4MmU0NTBhMzVhMjA4MWZhYTFkOWFlMWQyZDc1YTBmMjNkOTFkZjgiLCJ0eXAiOiJKV1QifQ.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.dqSdheKJz9434lfFJcu3oCdVq4Ax6GhhwRntHek1viCzav7cT9rBWCaui3Y7GOQ372VcvCDn-XH1FyYjMc6JY48j79L5WULqVo6xij7rV00YawKtJfcJFDIGluBOodkBa9Im3rlzwu9qK60jh9UVY2vqH4f3rs-7pcCcfxnetpszX9dhznLFejoRcmUrabnmLraw8YtbKmGC-gj2XE5xbmpIc-qolT0vjx7aSLu2AfB7MenmXd7mkaFc-aezxKPosUdGciNbRaoiVgZ5wyy8BN_70dWZueekLrMs6YbmulOxpwl4w2cmebNfyaXtxCI9gx6v83455kxnY5v-dKcesQ" target="_blank">Jasper.ai</a>&nbsp;because Disney said Jarvis.ai&#39;s name infringed upon Disney&#39;s copyright for the Marvel character.&nbsp; While Jarvis.ai&#39;s founders still maintain it was not an infringement, it would have cost them all their working capital to fight Disney.&nbsp; So, change their name they did.&nbsp;&nbsp;</li> <li style="text-align: justify;"><strong>Product liability law</strong>&nbsp;determines who is responsible if someone is injured or killed by your product.&nbsp; While these issues often appear to come out of nowhere, a great way to avoid them is with diligent product testing.&nbsp; Similarly, product liability insurance tends to surface product risks by forcing these risks to be quantified.&nbsp; The&nbsp;<a href="https://texasjustice.com/blog/major-product-liability-lawsuits-past-decade/" target="_blank">worst product liability settlements</a>&nbsp;tend to go to plaintiffs of companies who knew about product risks and never did anything about it.&nbsp; Never put your head in the sand on product issues that harm customers.&nbsp; &nbsp;</li> <li style="text-align: justify;"><strong>Contract law</strong>&nbsp;governs the terms and conditions of sale between you and your customers.&nbsp; While this is an area most companies are comfortable with, make sure that product and service terms are displayed and disclosed.&nbsp; (For a good laugh, see this compendium of&nbsp;<a href="https://www.onelegal.com/blog/fantastic-clauses-hidden-in-contracts-and-eulas/" target="_blank">goofy online contract terms</a>&nbsp;from websites around the internet.)</li> <li style="text-align: justify;"><strong>Privacy law.&nbsp;&nbsp;</strong>If you have a website or store any personal information about your customers, you need to understand privacy law deeply.&nbsp; Here is the link to a recent compendium, including&nbsp;<a href="https://www.centraleyes.com/top-10-us-state-data-privacy-laws-to-watch-out-for-in-2022/" target="_blank">state-by-state guidance</a>.&nbsp; &nbsp;&nbsp;</li> </ul> <p style="text-align: justify;">In sum, if you&#39;re not sure about something, it&#39;s always better to be safe than sorry.&nbsp; Consult with a lawyer before releasing your product to the public.&nbsp; And when something does go wrong, take corrective action immediately.&nbsp;</p> <p style="text-align: justify;"><strong>How will we sell this product?&nbsp;</strong></p> <p style="text-align: justify;">There are five ways to distribute a product.&nbsp; These include on your&nbsp;<strong>website</strong>, on&nbsp;<strong>distributors&#39; websites</strong>, in your&nbsp;<strong>store</strong>, and&nbsp;<strong>through distributors&#39;</strong>&nbsp;stores.&nbsp;&nbsp;<strong>Direct sales</strong>&nbsp;organizations like Amway, Primerica, and Cutco use direct salespeople.&nbsp; For most businesses, where you plan to sell your product (<strong>place</strong>) will drive the rest of the so-called&nbsp;<a href="https://www.investopedia.com/terms/f/four-ps.asp" target="_blank"><strong>marketing 4p&#39;s</strong></a>: <strong>place,</strong>&nbsp;<strong>product,</strong>&nbsp;<strong>pricing</strong>, and&nbsp;<strong>promotion</strong>&nbsp;(including&nbsp;advertising).&nbsp; We often refer to the 4ps as the &quot;marketing mix.&quot;&nbsp;</p> <p style="text-align: justify;">A huge mistake made by many entrepreneurs was to confuse&nbsp;<em>distribution</em>&nbsp;strategies with&nbsp;<em>product&nbsp;</em>strategies.&nbsp; A product sold online, for example, is not necessarily a new product; it is merely an old product distributed in a new way.&nbsp; That said, various distribution strategies often confer advantages to the companies that use them.&nbsp;&nbsp;<a href="https://www.investopedia.com/articles/pf/11/benefits-and-drawbacks-of-internet-banks.asp" target="_blank">Online banks</a>&nbsp;like Capital One or Ally Bank have no branch networks.&nbsp; This advantage allows them to pay higher interest rates than their brick-and-mortar counterparts.&nbsp; However, disruptive distribution models take many years to implement and require patient investors with deep pockets to develop.&nbsp; For example,&nbsp;<a href="https://qz.com/1196256/it-took-amazon-amzn-14-years-to-make-as-much-net-profit-as-it-did-in-the-fourth-quarter-of-2017/" target="_blank">it took Amazon.com 14 years to become profitable</a>.&nbsp; No matter what distribution strategy you start with, don&#39;t ignore the opportunity to use other channels to sell your product.&nbsp; To do so, you will need to make your product partner-friendly by developing API and other system integration tools.&nbsp; Please see my article on&nbsp;<a href="https://www.ronrassociates.com/Rons-Blog/PostId/15/integrate-or-die" target="_blank">Why Integration is A Digital Marketer&#39;s Superpower.&nbsp;</a>&nbsp;</p> <p style="text-align: justify;"><strong>How will we make money?</strong></p> <p style="text-align: justify;">This question is the most difficult to answer with certainty with a new product.&nbsp; It is also the most important.&nbsp;&nbsp;</p> <p style="text-align: justify;">Internet companies have disrupted traditional businesses by moving from conventional, pay-as-you-go sales models to subscription models.&nbsp; The rise of high-speed internet has been a boon to disrupters in the entertainment industry.&nbsp; Netflix disrupted Blockbuster Video Rentals by moving videos online and charging a monthly, all-you-can-eat fee to Netflix users, as did Spotify in music streaming.&nbsp; YouTube TV is streaming traditional cable television, and most entertainment manufacturers like Paramount, Apple TV, and Amazon Prime are developing direct subscription relationships with their viewers.&nbsp; Outside of entertainment, think of something that you use every day, and you may find a subscription model business disrupting it.&nbsp; Dollar Shave Club and Diapers.com (now part of Amazon) are two excellent examples.&nbsp;&nbsp;</p> <p style="text-align: justify;">Many different business&nbsp;models exist, ranging from the Subscription Model noted above to Distributor and Aggregator and Razor And Blade model and Software as a Service (SAAS).&nbsp; Investment Fund Alcor has created an excellent compendium of&nbsp;<a href="https://alcorfund.com/insight/18-business-model-example-explained/" target="_blank">18 different business models</a>.&nbsp; Our favorite tool for thinking through a new business model is the&nbsp;<a href="https://www.businessmodelsinc.com/about-bmi/tools/business-model-canvas/" target="_blank">business model canvas</a>&nbsp;designed initially by Alexander Osterwalder of&nbsp;<a href="https://www.strategyzer.com/team/alexander-osterwalder" target="_blank">Strategyzer</a>.&nbsp; The most important part of the message here is that you can be as creative with your business model as product design.&nbsp; Osterwalder uses the examples of Google Advertising and Xerox copies to make his case.&nbsp; Before Google came along, there was no such thing as pay-per-click advertising.&nbsp; And while no one ever wanted to buy a copy machine, most businesses were more than happy to put a copy machine in their offices and pay on a per-copy basis.&nbsp; The business model innovation was part of&nbsp;the new&nbsp;product development in both cases.</p> <p style="text-align: justify;">The business model canvas is an iterative process, as it is a meeting tool.&nbsp; The key to this process, Osterwalder advises, is to get out of the office and test hypotheses for how your product will make money.&nbsp; And do so iteratively, again and again, until you have defined your business model.&nbsp; His&nbsp;<a href="https://www.youtube.com/watch?v=RzkdJiax6Tw" target="_blank">original YouTube video explaining the tool</a>&nbsp;is worth the forty-five minutes, or so it will take you to watch it.&nbsp; For those who prefer books, Osterwalder has collaborated with David J. Bland on a series of books on&nbsp;<a href="https://www.amazon.com/Business-Model-Generation-Visionaries-Challengers-ebook/dp/B06X426D4F/ref=sr_1_6?crid=2SLOONRTO96PF&amp;keywords=profit+models&amp;qid=1644073756&amp;s=digital-text&amp;sprefix=profit+models%2Cdigital-text%2C83&amp;sr=1-6" target="_blank">Business Model Generation</a>,&nbsp;<a href="https://www.amazon.com/gp/product/B06X429CJH?ref_=dbs_p_pwh_rwt_anx_cl_1&amp;storeType=ebooks" target="_blank">Value Proposition Design</a>, and&nbsp;<a href="https://www.amazon.com/gp/product/B07ZZM9FDT?notRedirectToSDP=1&amp;ref_=dbs_mng_calw_2&amp;storeType=ebooks" target="_blank">Testing</a>, among other topics.</p> <p style="text-align: justify;"><strong>Ultimately, It&#39;s About Answers</strong></p> <p style="text-align: justify;">The late Harvard Business Professor and&nbsp;<a href="https://www.amazon.com/Clayton-M-Christensen-Reader-ebook/dp/B012BLTJH0/ref=tmm_kin_swatch_0?_encoding=UTF8&amp;qid=1644179287&amp;sr=1-5-bc8857be-3dda-4d87-931c-fb888d986596" target="_blank">Disruptive Innovation</a>&nbsp;author Clayton Christenson pointed out that about 95 percent of all new products fail.&nbsp; Asking the right questions and, more importantly,&nbsp;<em>finding the answers</em>&nbsp;to them could make your product one of the lucky five percent that survives!</p> <p style="text-align: justify;">&nbsp;</p> 16