Mar. 11, 2009 at 3:58pm

Observing the truth

Posted by Kurt Jacobson in Strategic Communications
Comments (3)

In your survey I may tell you that I am highly likely to stick with my trusty printed monthly statement — and then a month later I may offer no resistance to switch my statements to electronic. I truly embrace my opinions and behavior, even when they conflict.

What people SAY THEY DO often isn't reflected in what they ACTUALLY DO and think in real or experimental situations.

I came across research that proves commercials actually enhance the pleasure of watching television. No way! That’s not what people would tell you, but the research proves the opposite.

As marketers, I believe we should be aware that how we normally measure and ask opinions of our target audience may be easy and comfortable, but probably won't reflect their actual beliefs and behavior.

Unfortunately, we business people don't operate from experiments and direct observation of target audience behavior (what people really do and think). Instead, we use surveys and focus groups that allow consultants and clients to be experts, keep our good jobs and make sure we all are on the same page — because that's what the system rewards.

A lot of what we do as marketers is based on surveys and focus groups because these tools are accepted, cheaper and (maybe) better than nothing. But we must realize that an opportunity may sneak up on us where getting closer to the truth of human behavior through observation or experimentation will benefit us more than asking people to rank the importance of some attribute or explain why they like one product or service enhancement over another.

Here’s a situation faced by most credit unions: Joan has a special savings account at your credit union. In your surveys she tells you she loves the personal attention she gets from the front-line staff. She loves you, but not enough for you to be her PFI. Instead she uses a big national bank. If your credit union is large enough to justify it, you could hire a research company to set up an experiment and watch how Joan is faced with simulated decisions about her financial relationships or use direct observation through ethnographic research. I don’t know what you will find, but it will closer to the truth of Joan’s behavior and motivations than what you will find through your member survey that tells you how much she loves you, but gives her money to someone else.

Thoughts?

Comments (3)

Most research in the financial industry is pretty meaningless. People are incredibly unaware of their own behavior nor the motivations behind their decisions.

Take branches for instance. Everyone SAYS they want a branch on every corner because that's convenient. But how often do most people actually USE a branch? Maybe once a month? Less? What do they need branches for? Not to make deposits or get cash.

People only know how to talk about banks and credit unions in the context of things they can tangibly see -- rates, fees and locations. This misleads financial institutions, and never equips them with the insights research should provide.
1 | Left by Jeffry Pilcher | Mar. 28, 2009 at 7:33am

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Kurt says:

@Jeffry Pilcher, I struggle with the herd behavior of people in organizations. If we are hanging with the herd we are less likely to be picked off by predators. There is big personal and organizational risk in straying from the herd. But sway from the herd are where the real rewards like and nobody to compete with for the rewards.
2 | Mar. 30, 2009 at 4:30pm

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In the past, when it was difficult to observe, track, and measure member behavior I understood the value of surveys and focus groups - didn't necessarily agree with them - but understood them. As a brief aside, as a Marketing VP I was once ordered to do a member survey...we were considering going tellerless in a relocated branch - I was told to conduct a member survey AT THE TELLER LINE AT THE BRANCH asking the members how they would feel about using an ATM vs. a teller. How do you suppose that turned out?

Today, there are a multitude of valuable, inexpensive tools that give you the capability to actually monitor behavior. This goes exactly to your point, Kurt, why are so few FIs willing to do something different? In today's environment, hanging with "the herd" is not exactly a good business strategy. There is an incredible opportunity here - I hope we see some real heroes in financial marketing emerge.
3 | Left by Mike Bartoo | Apr. 2, 2009 at 4:37am

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