Chadwick Martin Bailey's Rich Schreuer and Amy Modini share best practices and case studies from their years conducting product and service development research across verticals. You'll learn: * Which of the latest trade-off techniques work best for product and service development research * The role of brand in product and service development research * Steps to ensure the information is used once a project is complete

1. Best Practices for Product/Service Development Research Innovative Techniques and Examples

2. Today’s Webinar Who is Chadwick Martin Bailey? Today’s Speakers Innovations in Product/Service Development research Q & A (please enter questions into the webex Q & A feature and we’ll answer them at the end) 2

3. Chadwick Martin Bailey:Company Facts Founded in 1984 60 Employees Headquartered in Boston Global, Full-service Provider Fully Dedicated Retail, Healthcare, eCommerce, Technology, Financial Services, and Travel and Hospitality Practices Sweet Spot: when you want a supplier who will provide original ideas, not just a response to an RFP 3

4. Our Clients: We Partner with Leaders in a Range of Industries 4

5. Chadwick Martin Bailey: Our Specialties 5

6. Today’s Speakers:Rich Schreuer and Amy Modini 6

7. Research Along the Product/Service Development Pipeline

8. Key Steps in the Product Development Process 8 5. Business Analysis 4. Strategy 3. Concept Testing 6. Product Configuration 2. Concept Development 7. Market Testing 1. Idea Generation 8. Marketing

10. Problem Analysis

11. Prioritization

12. Social Media Listening

14. Dual Choice Discrete Choice

15. Adaptive Choice- Based Conjoint

16. Interactive Decision Tool

18. Traditional Idea Generation Methods Are Lacking Many companies: Focus on incremental improvements, not groundbreaking ideas Rely heavily on engineering for new product/service and product/service refinement ideas Fail to adapt to changing market conditions Focus more on the what than the why Taking a multi-method, multi-source approach helps: Understand the issues people are facing surrounding your offerings, not just the offerings themselves Hear customers and prospects as they talk amongst each other, and directly to you Focus on solving problems and meeting goals 11

19. There is No Shortage of Sources and Methods To Utilize 12

20. In Qualitative Alone, the Past 4 Years has Shown Huge Growth in Tools and Techniques 13

21. Multi-Method, Multi- Source: Combining Methods From Traditional and Non-Traditional Sources Gives You a Clearer Picture 14

22. For Example, Combining “Listening” with Primary Research Helps Gather and Evaluate Ideas 15

23. Social Media “listening” Mines Traditional, Online, and Social Sources to Extract Meaning and Deliver Insights Select the content sources and search terms Train the algorithm with examples for each category 1. 3. 2. Choose the categories the posts represent Monitor summarizes online conversation 4. 16

24. Problem Analysis: Focus on Solving Problems Customer-centric: makes the voice of the customer part of the development process Rating Index: focuses developers on consumer needs that are most urgent/common Competitive Differentiation: Identifies opportunities for compelling and distinctive positioning against alternatives One Rock, Many Birds: Can be leveraged into many other areas, such as sales, marketing, communications, and market positioning 17

25. Problem Analysis: Focus on Solving Problems 18 Hotel Guests Likelihood to Stay Again Frequency (%8-10) Intensity (%8-10)

26. Prioritize Individual Product Features From a Customer Centric Viewpoint

27. 2. Concept Testing

28. Concepts Need to Be Evaluated Based on Customer and Business Goals Customers: What are customers and prospects trying to achieve? Where are there gaps? Where is incremental improvement appropriate vs. wholesale changes? Business: What would make this offering a “success”? What limitations do we have in developing, servicing, and selling? How does this fit with our brand?

29. Maximum Difference Scaling is a Great Way to Measure Appeal This approach is especially useful because it: Derives the preferences of respondents, rather than asks it Eliminates halo effects Can handle a large number of features 22

30. A New Approach: Anchored (Dual-Choice) MaxDiff In Anchored MaxDiff, we ask respondents to make best/worst choices… We then ask a follow-up question for each task that is used to set a true 0 threshold level through the use of dual-response questions. 23

31. Stated Preference Rarely Discriminates A Discounts on gas B Deposit to a savings or investment account C Money towards utilities bill D Gift cards E Money towards your mortgage F APR discounts G Interest rebates H Discounts at selected retailers I Travel rewards for use with a variety of carriers J Bonus miles/points after spending a certain amount K Travel upgrades or discounts (hotels, rental cars) L Frequent flyer miles for a specific airline M Online mall N Money towards school tuition O Tickets to events and shows P Donation to a charity/school Q Donation to reduce carbon footprint Appeal of Features (%8-10) 24

32. But Employing a Trade-off Technique (Such as Max-Diff) Ensures Differentiation A Discounts on gas B Deposit to a savings or investment account C Money towards utilities bill D Gift cards E Money towards your mortgage F APR discounts G Interest rebates H Discounts at selected retailers I Travel rewards for use with a variety of carriers J Bonus miles/points after spending a certain amount K Travel upgrades or discounts (hotels, rental cars) L Frequent flyer miles for a specific airline M Online mall N Money towards school tuition O Tickets to events and shows P Donation to a charity/school Q Donation to reduce carbon footprint Desired Features IChart displays the mean appeal (importance) score for each item. Maximum Difference utilities are converted into ratio-scaled probabilities that sum to 100 across the items. Thus an item with a score of 8 is twice as important as an item with a score of 4. The dotted line represents the average (5.9). NTERPRET WITH CARE – MEAN VALUES HIDE HETEROGENEITY OF PREFERENCE AND ARE SKEWED BY OUTLIERS. 25

33. With Anchored MaxDiff You Get Mean Utilities 26 Concept:

34. 3. Product Configuration

35. Traditional Product Configuration Methods Are Lacking Typically, companies follow one of these processes: Use best guess, and go to test market Develop concepts based on an internal model, then go to test market Rely on slight changes to a competitively successful product Conduct focus groups to refine existing concepts Trade-off modeling such as Discrete Choice and Adaptive Choice help: Predict market share under competitive situations Identify dollar value of product features Optimize product configuration for key sub-groups Segment market based on unique configurations Identify price/demand curve 28

36. For Years Discrete Choice Has Been Solving Several Problems 29

37. Adaptive Choice-Based Conjoint is Going Further ACBC is an innovative approach to trade-off modeling because it adapts to respondent choices in order to collect better data Captures more information from the respondent for more stable individual level estimates Allows us to better analyze smaller sample sizes Is more effective in situations where pricing is a critical objective Based on respondent feedback, we find it provides more engaging interviews and respondents like this method better than standard choice models 30

38. Adaptive Choice-Based Conjoint is Going Further ACBC consists of multiple stages: Build-Your-Own (BYO) task “Near Neighbor” concepts Determine “must haves” and “unacceptables” Choice Tournament 31

40. Security: Card features designed to ensure that no one except the legitimate card holder can use the card to make purchases or cash withdrawals

41. Protection: Card features designed to limit the financial liability of the card holder

42. Card Holder Benefits: Extra benefits for using the credit card to make purchases

43. Annual Fee: Yearly fee charged by the issuer to administrate the card and transactions

44. Card Scheme: The credit card provider used for the card

45. Card Issuer: The type of financial institution that issues the credit card and provides support to card holders

46. Annual Percentage Rate: Interest rate charged on credit card

47. Account Support:Additional types of customer service available to card holders

48. Managing Cash Spending:Methods by which card holders can control spending with the card

50. Understand the relative importance of features

51. Model in the tool or simply download charts or underlying data to excel33

52. 4. Marketing Support

53. Ensure Product-Specific Messaging Supports the Brand 35

54. HIGH Discloses all info up front Guided throughout process Specialist available 24/7 Beats national average on rates AWARENESS Work with same specialist TRUST CUSTOMER SERVICE Close loan at your location Highest security standards on the web Low rate guarantee / cash back LOW COST LOW HIGH LOW IMPORTANCE Prioritize Messaging Based on Brand Support AND the Impact on Loyalty 36

55. In Summary: Best Practices of Product and Service Development Research At Each Stage Idea Generation: Use a multi-method, multi-source approach to listen to the market and gather ideas for concept testing Concept Testing: Test concepts in terms of how they meet both customer and business goals Product Configuration: Use sophisticated trade-off modeling (such as Dual Choice Discrete Choice and Adaptive Choice) to develop the optimal set of features, benefits, and tiers Marketing: Evaluate messaging holistically in terms of relevance, appeal and brand fit 37

56. Questions? See some of these approaches from a respondent perspective by going through the trade-off technique demos at:http://www.cmbinfo.com/why-cmb/analytics/ Follow us on twitter @cmbinfo , Read our blog at blog.cmbinfo.com or become a fan on Facebook