Cannabis talk in the US media is unavoidable these days as changing legislation and recreational dispensaries continue to open up across selected states in the country. How can companies outside the cannabis space take advantage of this growing trend? Our research with over 2,000 US consumers sought to understand this new opportunity for brands.
One-in-five (20%) adults nationwide report they have used cannabis in the last 12 months. Of those, two-thirds (66%) consume regularly (at least once a week). While two thirds tell us that consuming cannabis has not changed their social life in any way, 17% are staying home more and 8% say they are going out more.
Ultimately, this opens up a variety of opportunities for marketers to offer products and services that are tailored to the needs of this group. Meal kit delivery companies could make “dinner party boxes” suited to a night in with friends. Game makers could create games that facilitate creativity and fun. Netflix or Amazon could offer content particularly suited for cannabis-influenced viewers. And clearly, snack makers could have a field day.
In the survey, adults were asked whether they would prefer to consume cannabis or alcohol while doing different popular activities. While clubbing and hosting a dinner party are more likely paired with alcohol, for many other pastimes, cannabis wins. At home, watching TV/ movies, doing chores, playing board games and socializing with family and friends are all activities where cannabis is preferred. Going to the movies or to watch live music are also events where adults would prefer cannabis. A host of other activities are decidedly not alcohol activities, but may be considered “cannactivities” – yoga, gardening, outdoor activities, going to the spa, cultural events and reading. See the table below for details.
“For each of the following, would you rather do this activity while consuming cannabis, drinking beverages containing alcohol, or neither?”
At Kadence, one of the key traits that we look to develop in all of our team members, is the ability to think creatively. The term ‘creativity’ is often misunderstood. It can be seen by some as a trait that only ‘artistic’ people possess – and not something to improve over time. Whilst it is true that some people perhaps have a more natural leaning towards creative outputs (and why we employ dedicated designers to help with the visual appeal of our output) at its root, thinking creatively is of vital importance for the growth of a business.
If you have not read Ed Catmull’s book ‘Creativity Inc’ – Overcoming the Unseen Forces That Stand in the Way of True Inspiration – I would highly recommend it. Firstly, it is a fascinating story about how a person who dreamed of becoming an animator, but could not draw, ends up as the President of Walt Disney Studios and Pixar! However, more importantly is that Catmull brings forward usable, relatable stories of how they could foster an environment of creative thinking. “For me, creativity includes problem-solving. That’s the broad definition of it”.
Thinking outside the box
Whilst it may be easy to associate creativity with a movie studio – much of the lessons learned are hugely practical for any business (or team within a business) that are tasked to ‘think outside the box’ to solve a problem. For me, the largest problem with the term ‘thinking outside the box’ is that it is a cliché, with no clear meaning or benefit derived from doing so. Sometimes, thinking ‘within the box’ is effective. By the purest definition, it was ‘thinking inside’ that you got you to where you are today. ‘The box’ is often a negative, the norm, staying with what you know, how a company operates, and there is often nothing wrong with optimizing this as a starting point.
However, there does come a time where you need to look for new ideas and inspiration. You could Google ‘how to think outside the box’ but there are many, many results that come up – and whilst some claim to give you advice (Forbes for example) it is not as easy as that to implement.
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Using research as a tool to think creatively
This is where research companies can play a pivotal role … not just by collecting data, but by helping you think about a problem differently – creatively!
At Kadence, we look to help companies make sure that they are focused on the impact that research can have – and we work creatively to be able to do that. Our starting point is always making sure that we are thinking about the business goal. A great example of this (and an interesting read regardless) is in HBR’s article on ‘Are you Solving the Right Problems’. The author describes framing a problem, an elevator being too slow in an office building – with disgruntled tenants – with the list of potential solutions geared up around making it faster (new lift shaft, upgrade motors, change algorithms etc). However, the problem is really that ‘the wait for the elevator is annoying’. This then presents a much different list of potential solutions (provide entertainment, TV screens, mirrors to check appearance, etc) – all of which are much cheaper than construction of new lift shaft!
This correct framing of the problem brings us back to creativity as a tool. If we are tasked with thinking ‘creatively’ about a problem, how do we do so. Particularly if we have been ‘in the box’ for a long time. The rest of the HBR article continues with suggested ways of re-framing the problem, but at Kadence – we go searching outside the box!
Harnessing ‘spheres to influence ‘ to find new solutions
We use a term called ‘spheres of influence’ to assess what are the associated, but distinct industries, or experts that might be able to give an opinion on the problem or potential solution. We draw this up with our clients, then we go looking for our creative solutions. For example, when working with an airline, whose goal it is to create the best in-flight experience possible we would create a map of the ‘spheres’
By looking at the spheres of influence on a brand, and by speaking to people who have a viewpoint on this (e.g. for an airline, understanding views on what makes best in class bedding or a best in class luxury car seat etc) we can reframe the problems creatively and therefore focus our proposed solutions on something that is likely to be more relevant.
Increasing creativity in your organisation
As a first step, you could always look to assess how creative you, or your teams are. There is a test called the Torrence Test of Creative Thinking (which we recently carried out on our team in Kadence) that allows you to assess how creative individuals are. If you do find that you or your team score low on this, don’t fret. Either give Ed Catmull’s book a read….or simply get in touch with Kadence*
We’ve all been there. That moment of frustration when you visit a store or restaurant or hotel and are so entirely and completely underwhelmed by the experience. Perhaps it was the inattentive or poorly trained staff. Or the unclear and confusing information. Or the restricting opening hours. But what makes the whole thing worse is that this is not what you were promised – the ads; marketing and branding all suggest a very different experience. As an extreme example, the hot water that United got into for forcibly removing a passenger is a complete mismatch of its brand promise of: “connecting people. Uniting the world.”
On the flip side, there are golden moments when the unexpectedly wonderful happens. The barista remembers your name and favourite order; you’re given a hotel room upgrade; the restaurant goes out of their way to accommodate your food allergy.
The reason for both of these reactions is because of the unexpected. The experience you were primed for by the brand promise is different. Causing an emotional reaction as we deal with that.
Experiences have become perhaps the most important aspect of shaping the brand. Not only can experiences be documented and shared more easily than ever with camera phones and social media; but an experience is more visceral and powerful than any marketing and will live on much longer in the memory.
However, a recent survey by the Chartered Institute of Marketing suggests that only 53% of marketers claim successful alignment between brand promise and experience; just 37% believe their employees understand how to deliver this brand promise; and a measly 17% feel they enable their employees to suggest way to improve brand experience.
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Part of the reason for this is that it’s hard to measure the brand experience. Brand health studies measure the brand promise not experience; Satisfaction studies test the brand’s SOPs rather than the consumers’ experience; and mystery shopping relies on a small sampling of outsiders’ opinions. Relying on these studies alone is not enough for the CXO to draw any kind of conclusions about how their customers are experiencing the brand. Also, is it even relevant?
After all, while ‘satisfaction scores’ and ‘likelihood to promote’ a brand can be assumed to imply that the customer ‘likes’ the brand, that inference does not necessarily show the CXO what is the nature of the experience, and what specifically about it created the ‘emotional hook’ strong enough for the customer to want to ‘promote’ the brand to other users or have been satisfied. In short, it will likely leave more questions than answers, rather than illuminating actionable next steps for improving the process.
Rather, you need a measurement tool that tells you what customers of your brand (as well as your competitor, and even category) value when it comes to experience. Something that complements current studies you already have; but offers deeper insights that can help you create a strategic plan of action. A piece of research that sheds light on not just the ‘what’, but the ‘why’ of your customers’ emotional connection (or disconnection) with your brand based on their experience.
In short, Kadence’s Emotional Connection Matrix (ECM) is what you need. We have completed a study amongst Singapore consumers across categories on how individual brands scored in terms of emotionally-connecting with them, how these brands compare to others, which product category has the highest tendency to provoke positive emotional connections based solely on brand experiences, and what kinds of actions actually lead to said positive emotional connections. Drop by the CX Conference 2019 at Four Seasons Hotel on 26th July to satisfy your curiosity, as we talk more about the Emotional Connection Matrix.
How do you create customer delight? Our latest research sought to explore what matters to customers in 11 markets which match our international footprint: the UK, US, Singapore, Vietnam, Thailand, the Philippines, Japan, Indonesia, India and China and Hong Kong.
As part of the research, we uncovered 5 must-have principles for any global customer experience strategy. In this blog post, we share these principles, together with examples of brands getting it right, to inspire your strategy development.
1. Understand customers’ needs and feelings
We discovered that what matters most to customers globally is that service personnel take the time to listen and really understand their needs. This far outweighed any other factor by a long way. So how do go further than in-store interactions and deliver this on a strategic level?
Research, of course, is crucial – and doing this in-store can further strengthen the customer experience. A good example of this comes from British supermarket, Morrisons. The brand implemented a “customer listening programme” in 80 stores across the country to speak to customers about their in-store experiences and overall perceptions of brand. Not only did the strategy enable Morrison’s to build relationships with customers, it helped the supermarket understand what elements of its positioning to leverage in its future communications and campaigns.
2. React positively to customer requests
Another element that matters to customers is that the service personnel react positively to their requests. But beyond staff training to ensure this is happening in store, what else can brands do?
Starbucks has one solution. They launched My Starbucks Idea, a crowdsourcing platform where customers can request everything from new drink flavours to customer service improvements. Since the site was established, hundreds of ideas have been launched by Starbucks. Providing free WiFi in store was a My Starbucks Idea, as was introducing new payment solutions, and numerous product lines and flavourings started out life on the site. As a way of reacting positively to customer requests and feeding its innovation pipeline at the same time, it’s a real win-win for Starbucks.
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3. Show customers they matter
It’s also important that service personnel express how important customers are to the brand. There are numerous ways of achieving this, ranging from small tactical actions to more comprehensive loyalty schemes.
There’s lots that established brands can learn from smaller businesses here. From handwritten notes to customer appreciation events, small gestures can really make a customer feel valued, building that bond with your business.
4.Empower staff to go above and beyond
Customers also value service personnel going beyond their usual responsibilities. But how do you get your staff to make this a reality? One tip is to move away from rigid customer service processes and to embrace a more flexible approach. This will empower your staff to react to customers in the most appropriate way, creating a personalised and therefore superior customer experience.
A great example of this comes from UK coffee chain Pret. Each week, staff in the store are allowed to give away a certain number of free drinks to customers. Giving employees the freedom to offer a free coffee to a flustered customer is a small gesture that delivers big returns, quickly making someone’s day and creating a positive brand experience.
5. Give gifts that reflect customers’ needs
Another component to consider adding to your customer experience strategy is gifting. But to really resonate, gifts needs to take customer wants and needs into account. If you’re in search of inspiration, look no further than Sephora. The French beauty brand delivers personalised emails – based on an individual’s search history – that give customers chance to get their hands on a relevant free gift.
As part of our research, we investigated how these factors vary by market. Get in touch with your local office to find out the 5 must-have principles for a best-in-class customer experience strategy in your market.
From churn rate to net promoter source, there are numerous metrics for understanding customer satisfaction. But if you want to go beyond satisfaction and create an experience that truly delights customers, should you be measuring something different?
Our latest research sought to understand the factors which create customer delight across 11 markets which match Kadence International’s global footprint: the UK, US, Singapore, Vietnam, Thailand, the Philippines, Japan, Indonesia, India and China and Hong Kong. Is there a universal view on what creates customer delight or does this differ market by market?
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We found that customers across the world have the same priorities. What matters most, regardless of market, is going the extra mile by delivering service that goes beyond expected roles and responsibilities. Whilst there was some regional variance in the importance of secondary factors, going the extra mile was by far and away the most important element, with 52% seeing this as the best way of creating delight.
So if there’s a universal consensus on what creates customer delight, is it time for brands to start thinking about a new metric? Particularly those organisations that need to compare performance across a global audience? To talk to us about a customer experience challenge, please get in touch.
What does it take to delight today’s customers? Our latest research sought to explore the factors that create truly exceptional customer experiences across 11 markets which match Kadence International’s global footprint: the UK, US, Singapore, Vietnam, Thailand, the Philippines, Japan, Indonesia, India and China and Hong Kong.
Take a look at the infographic below to get a taste of the research or get in touch to learn about the factors that matter most in your country.
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We are thrilled to have been recognised as the best market research agency in Singapore at Marketing’s annual Agency of the Year Awards.
Kadence International triumphantly brought home gold for Market Research Agency of The Year, after winning bronze in the category for two consecutive years.
The Agency of Year awards seek to recognise the industry’s top talent in Singapore, with entries being judged by a panel of 37 client-side marketers. The panel described Kadence’s strategy as “very relevant and on point”.
Commenting on the accolade, Phil Steggals, MD of Kadence Singapore said “This award is an acknowledgement that smart thinking and trusting clients leads to impact in organisations, as opposed to off-the-shelf products. We set out to raise the impact of research in the region – by making a real difference to our clients’ businesses – and this is fantastic recognition that this ethos is really resonating.”
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Death by PowerPoint is still a killer. The solution? Invest in design
Design is the silver bullet for research. Make your findings interesting, simple and easy to understand and the world will take notice. If it intuitively makes sense your findings will spread like wildfire. If not, it’ll die on the screen.
Recently there’s been a hive of innovation in research: online; mobile; social… the list goes on. But this list is all just different methods of collecting information. What has been more resistant to change is how we present that information.
If research wants to have more impact with decision makers, we need to be more palatable for them. This means translating the findings into something they can intuitively understand. The problem is it is easiest to present people with the same representations used by the research: graphs and numbers. This is not the way it ought to be. We need to present decision makers with information in the format most appropriate to their needs and to the decisions they need to make. What is wrong with a lot of presentations today is their design, which requires people to behave in research-centred ways, picking apart data and numbers, ways for which many people are not well suited. What we find, then, is that the form of representation makes a dramatic difference in the ease of understanding the research.
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There are two tasks for any audience – finding the relevant information and deciding upon the desired action. The design of the research presentation can either help or hinder this process. We believe we must work harder to make sure the design of the presentation does not get in the way; as if designed inappropriately we are at risk of losing the audience and not giving them the opportunity to find the information and make the most appropriate business decisions.
To combat this, we will argue there are three major changes researchers need to undertake:
Get better at PowerPointToo often the presentation is a data dump of raw findings from the methodology. Little thought goes into how a novice should understand it. Teams need to be taught design theory and trained in how to maximise the potential of PowerPoint. For example, learning about Gestalt psychology will help researchers know how to space, design and layout results.
Go beyond PowerPointWe need to loosen our grip on PowerPoint and embrace other forms of information delivery. A lot of times a deck of slides isn’t the most appropriate format. Why not put together a video debrief of your findings that brings the information to life? Why not create a bookmark with the top 5 takeaways for your stakeholders? Why not mock up an example advert that best reflects what consumers would most respond to?
Hire a designerWe believe having an in-house designer is now as essential as having an in-house data analyst. Not only do designers bring a skill set and design experience that they can leverage, they also are unshackled by years of research training and so bring fresh eyes and perspectives to research, making the output they create at once more relatable and accessible for any audience.
We believe that taking on even just one of these changes will greatly enhance the impact and relevance of research to senior decision makers
We recently had an internal brainstorm around the topic of luxury. One of my colleagues mentioned that they thought that Calvin Klein as a fashion brand was no longer considered luxury but was at the height of luxury in the 90s. Alongside this, if you search for luxury brands in Google you get a list of the top brands by brand value in 2017 which includes the likes of Mulberry. If you looked at this 20 years ago, it would arguably have been different and would have included brands like Galliano or Lacroix that are less top of mind today.
Here at Kadence this got us thinking – what makes a brand ‘luxury’ and why do brands that consumers perceive as luxurious change over the years?
Looking first into what makes a brand ‘luxurious’ – we believe there are three main drivers:
High price: this doesn’t necessarily mean a high overall price, but a high price compared to other brands within that sector. For example, categories such as soap includes brands such as Molton Brown and L’Occitane that could be considered luxurious but may ‘only’ cost £20 compared to other categories like shoes or watches. As a side note, the quality also obviously arguably need to at least match expectations, especially if customers are spending large amounts.
Limited supply: luxury doesn’t have to be expensive but it arguably shouldn’t be easily obtainable. Sometimes a luxury brand can be one that not many people know about (like Delvaux or Serapian handbags) – adding to the feeling that you’re special and no one else really has an item like you have. Another example is the long waiting lists for Hermes Birkin bags – by limiting supply, they increase desirability.
Endorsement by celebrities: for some brands it is an A-list celebrity, for others a football player, but an endorsement by a celebrity can make items more appealing for consumers and potentially more ‘luxurious’ in their eyes. Brands do have to be careful though – Juicy Couture were propelled to fame by the likes of Paris Hilton, but that also put plenty of people off the brand too…
But we don’t think it stops there. Other elements can also come into play:
The packaging: brands are doing some really nice things with packaging nowadays. In Fall 2014, Chanel released a supermarket collection of bags – the packaging that they came in represented a supermarket carrier bag and the tag represented a barcode, all in-keeping with the overall theme of that season. And more broadly, when you buy an item of clothing from Net-a-porter they will put it in a box with a ribbon, and Christian Louboutin shoes come with a lovely red fabric bag. This makes the unboxing and unwrapping experience for the customer more memorable and special and can add that ‘luxury feel’.
Personalisation: customisation of a product is a great way to make the customer feel special and one of a kind. The fact that you know no one else has a product like yours makes the product a bit more luxurious. Kate Spade and Louis Vuitton are great examples of brands that have done personalisation well – allowing you to monogram your handbags or add a variety of ‘patches’ to them.
Why do brands become more or less luxurious? Michael Kors is a great example of how trying to reach the masses can arguably make you appear less luxurious – they released their ‘diffusion line’ MICHAEL Michael Kors which priced all goods to match the upper end of high street prices to cater for consumers shopping in high-street shops as well as larger department stores. This was very successful for them in terms of sales at first, but they have now slipped down to a more “casual luxury” brand forfeiting sales overall. In June 2017, Michael Kors announced that they been battling declining same-store sales for the past seven quarters with continuing decline into 2018. It was also announced that the retailer would shut more than 100 full-price retail stores in the next two years, and that their share prices are at their lowest in more than five years. In some ways they could be seen as suffering as a victim to their own success.
Brands will need to think carefully about each of these themes as the luxury sector continues to grow and develop, and these elements will differ depending on the product and category, which is where research comes in – we can actually speak to customers first-hand and unpick which elements are most important to them, uncovering brand perceptions and share of the market.
Nowadays people have very hectic and busy lifestyles – trying to balance work, home and a social life is increasingly challenging. However, companies are becoming more attuned to this and starting to adapt their products to suit.
Lack of time is typically the main reason for lack of participation in sport or gym attendance. However, it remains hugely popular, with the number of people taking part every week reaching around 16 million and the number of fitness centre members in the UK being the highest ever.
Maybe this is because gyms are increasing the number of classes or reducing their length to be more flexible. For example, some gyms are now promoting 30 minute classes, which are easier to squeeze into your lunch break. Some offices even have gyms that you can pop to whenever in the working day to help cater for busy lifestyles. Also having exercise studios entirely dedicated to one activity (such as yoga) means there are more classes for people to choose from.
Participation in high-intensity exercise classes and activities, like spin and boxercise, continue to attract large numbers of people, potentially rivalling more traditional sports such as football, netball and hockey. Outdoor activities such as bootcamp and Parkrun are also increasing in popularity which are seen as a highly sociable way to exercise. Maybe this is people’s way of ticking both the ‘exercise’ and ‘socialise’ boxes on their to-do lists?
More established activities like yoga and pilates are still gaining in popularity as well. These classes are expected to provide both physical and mental benefits – such as increased muscle strength and tone, improved athletic performance, stress relief and encouraging relaxation. People can therefore achieve a healthier lifestyle in a more compact way, which saves time relative to completing several separate activities to achieve the same benefits.
As well as exercise companies, nutrition companies are also adapting to people’s hectic lifestyles. Nutrition is becoming more of a focus and healthy eating is a main element of having a healthy lifestyle. We have therefore seen the rise in trends such as The Body Coach, Joe Wicks, who promises that you’ll be able to lose weight, despite eating more food and spending less time at the gym. He also has a 15 minute meals cookbook that caters for those lacking time in the evenings and suggests quick exercises you can do in the comfort of your own home.
Adapting to hectic lifestyles has also paved the way for food companies such as HelloFresh or Gousto. Their USP is that they deliver fresh ingredients and healthy recipes straight to your doorstep. This means you can get back from a busy day at work and have your dinner all bought and planned out for you – all you have to do is follow the recipe. The next step on from this is Deliveroo that actually delivers healthy food options straight to the doorstep of either your home or office ready for consumption! So now when you get home from work late and cooking is the last thing on your mind, instead of the traditional Chinese or Indian takeaways you can now get Pho or Sushi delivered to your door!
So having a healthy lifestyle doesn’t appear to be a fad or a trend, it’s the way things are nowadays. We have already seen intersections between health and exercise but this also begs the question – where will this go? What’s next for healthy lifestyles?
Maybe exercise and retail companies will start partnering up. For example, introducing grocery stores at the gym to save having to do a food shop later that evening. Or they could pair up in a totally different way. It may be counter-intuitive but BeerYoga is something that I stumbled upon recently where attendees can drink beer whilst doing yoga. Now this ticks all the boxes – social, mental and physical. Will that mean that WinePilates or SushiSpin emerge as trends as well? It’s fair to say some of these may seem slightly odd now but many fads do before they become accepted into society.
We’ve been working with Kadence on a couple of strategic projects, which influenced our product roadmap roll-out within the region. Their work has been exceptional in providing me the insights that I need.
Senior Marketing Executive Arla Foods
Kadence’s reports give us the insight, conclusion and recommended execution needed to give us a different perspective, which provided us with an opportunity to relook at our go to market strategy in a different direction which we are now reaping the benefits from.
Sales & Marketing Bridgestone
Kadence helped us not only conduct a thorough and insightful piece of research, its interpretation of the data provided many useful and unexpected good-news stories that we were able to use in our communications and interactions with government bodies.
General Manager PR -Internal Communications & Government Affairs Mitsubishi
Kadence team is more like a partner to us. We have run a number of projects together and … the pro-activeness, out of the box thinking and delivering in spite of tight deadlines are some of the key reasons we always reach out to them.
Vital Strategies
Kadence were an excellent partner on this project; they took time to really understand our business challenges, and developed a research approach that would tackle the exam question from all directions. The impact of the work is still being felt now, several years later.
Customer Intelligence Director Wall Street Journal
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