The meaning of life, the universe, and everything

I hope everyone knows that the answer is 42.

Whether you learned this watching the BBC series many years ago, just learned about it from the adventures of Mos Def & Sam Rockwell, or actually read the iconic books by Douglas Adams, there's a message in there that is of great importance in life and market research.

You must know the right question to get the answer you want.

It's all about asking the right questions. Surveys and feedback can often mislead the direction of a company. Too many times I have seen companies invest in product development because a customer said they liked the idea, only to find their intentions were quite different when there was a price tag on that new product.

What good is knowing what people like, what channels they watch, and what websites they are viewing, if you do not know what will motivate them to support your business? Spend more time thinking about the questions you ask, the extra time is worth the wait.

Analysis paralysis

John Cage said that not knowing where to begin is a common form of paralysis. His advice: begin anywhere. Great advice for a company trying to decide whether to try something new. There will always be more analysis that the company could do, more focus groups, more research, more debating... But the bottom line is, nothing will guarantee a success.

Don't get wrapped up in the analysis paralysis trap. If you have a great idea, launch it. Adjust as you go, and know when to make changes. The market moves too quickly for you to debate when the right time to act will be.

"You miss 100% of the shots you don't take."

- Wayne Gretzky

Domino's is rolling the dice

Domino's Pizza is taking a couple of big risks. First, the chain will change the recipe of its pizza from the crust up. Second, it will promote the change by gathering bloggers and others who have criticized the taste of their product, asking their opinion in a live tasting.

Can a major chain change the recipe of their product? According to Russell Weiner, marketing chief at Domino's, "We weren't winning against everyone at taste." One consultant cautioned, "It's like McDonald's changing the ingredients in the Big Mac. Risks are akin to Coca-Cola's change — undone after a fan revolt — in Coke's taste." While Coca-Cola failed to understand there is more to a brand than blind-taste-test preference, this assumption implies that Domino's customers are primarily concerned with the taste of the product.

Domino's ranks first in convenience and price. The delivery pizza industry has declined 6% over the past year, and Domino's feels the crunch. While some may believe that a recipe change is admitting that what the brand stood for was wrong, would you rather ride a sinking ship until you've drowned, or get that boat to dock and make repairs? The essence of Domino's brand is hot, convenient, and affordable. Why wouldn't they make an effort to add delicious to their brand?

The only risk I foresee is their challenge to get reaction from their critics. Asking for live feedback does have a chance of backfire. The bloggers could taste the new recipe, claim it's still not great. Honestly, what do they have to lose? The people who have a poor perception of the brand will have not changed, but if Domino's is confident with their recipe they could get those very people who advocate against their brand to give it a nod of endorsement. Sure, it's a bold chance they're taking, but one which could pay off for them.

It's not unprecedented for a chain to make recipe changes. Adding enhancements to your product helps gain new customers, and satisfy existing customers to keep them longer. Domino's enhanced their brand to include hot with the introduction of their heat-wave bags. No one will complain when their convenient, affordable pizza arrives hotter and more tasty.

Now with more juicy bits of orange

Several years ago I ran across a selection of orange juices. There was a pulp-free variety, one with added calcium, and a variety with "some pulp." All were priced the same, except for one that had the following label:

"Now with more juicy bits of orange!"

That variety was 75 cents more per gallon. Someone successfully was charging more for doing less because they took a negative sounding word and made it delicious. The word pulp is not pleasant sounding. But juicy bits of orange are downright tasty. Certainly most people would understand that juicy bits of orange are what they know as pulp, and those who are anti-pulp would avoid this variety, but there are people who like this product and they want something that sounds good.

Take a look at your products. What attributes are there that people enjoy, but you are selling short or failing to highlight at all? Shouldn't you get noticed for those benefits before your competitor comes along and sells the same attribute but gets more attention?

Demographics, useless to marketers?

As we gain more insight into consumers we find that many of the age-related assumptions we made in the past are incorrect. Apparently there are people in their 60s who love candy, just like those who are only 6 years old. Just as there are bloggers and Facebook users who are in their teens, as well as those who are grandparents to teens.

There is value to knowing who your consumers are, but the typical "demographics" research typically falls short of drawing important correlation to who consumers are, and what motivates them to buy. Does being 32 lead someone to purchase Crest toothpaste versus Colgate? Moreover, some demographic categorizations do not even make sense. 18-49 is often used to describe a consumer group. Aside from "people who most likely have jobs" this age range has very little in common simply because they are within an age group. Of course you will find 18 year olds who buy the same products at the same store of 49 year olds. How does that help you better position your product?

There are times when an age group is an important factor to consider. The important thing to remember is to question those demographics rather than jumping to a conclusion and alienating your customers because someone showed you a statistic.

Listen to your customers - but not that way

You need to be listening to your customers. Success is that simple, as long as you remember what to do once you have heard them. A business also needs to acknowledge what their purpose is, to provide for, solve, or otherwise make our consumer's life better. Why else would they part with their money if your business did not provide something of value to them? We need to listen to our customers, but if we are not the experts who solve the problem, rather simply facilitating the literal translation of what they asked for, why would they need us?

Henry Ford once said, "if I had asked people what they wanted, they would have said faster horses." Asking a customer exactly what product they want will not yield the innovation that will make you the market leader. You need to listen to your customer's goals, desires, and aspirations to develop a product that they did not know they needed.

Focus groups and other consumer feedback help us understand what is important to people. However, as Ford learned with Edsel, consumers all loved the features of the car but that did not turn into an overwhelming success. In fact, despite the consumer feedback, Edsel is often referred to as a colossal failure. Where Ford went wrong was determining what was most important to the consumers, which was a more affordable car.

Coca-Cola made a similar mistake with a cola formula that was preferred in most taste tests. Despite the positive reaction they received in blind-tasting results, New Coke became a disaster for the company.

Conversely, Dietrich Mateschitz hired a market research firm to test his new soft-drink and received bad news. "People didn't believe the taste, the logo, the brand name." But he launched his drink anyway and Red Bull has been a tremendous success.

The lesson is, if you present product options to consumers, they will pick what they are familiar with. This is not because they are uncreative or resistant to change, but that they have to base their opinions on what they know. It's your job to introduce them to the next thing they will want.