Welcome to Marketing Is Broken where we calculate what’s wrong with marketing with 99% confidence and a margin of error of 1%. Let’s go to this week’s story: “SAP Acquires Qualtrics”
In what will be the largest-ever purchase of a VC-backed enterprise software company at $8.3 billion dollars, the deal turns founders Ryan Smith, his brother Jared, and father Scott into a family worth over two and a half billion dollars. Nice work, fellas!
So what is experience management and what types of surveys are the customers over there at Qualtrics running that can make the company worth more than the GDP of Monaco?
That’s what brings us to this week’s topic.
At its core, experience management is the activity where organizations measure and improve the various experiences they provide, not only to customers, but to all their stakeholders like vendors, suppliers, employees, and shareholders.
Qualtrics is a leading name when it comes measuring experience management, and now their experience data, or X-data™ as they call it will form a complete picture of the customer journey when combined with SAP’s operational data, or O-data™.
The reason this deal makes so much sense is because now SAP can offer a comprehensive, 360-degree view of the consumer and as a result, produce the insights companies need to become a tomorrow’s market leader.
And while experience management may be a sophisticated term that comes with an expert sales team, shiny technology platform, and a $40K plus price tag, in reality, most marketers can build their own customer insights platform with the help of some well-known, yet seldomly used market research tactics.
Here are three types of surveys that you as a marketer can use to make your company the number one brand in your space, whether you have the money to spend on Qualtrics or not.
Market analysis and research is all about assessing potential product categories and the needs of its potential customers.
Done right, you can get a quick and accurate look at what people think about your products or services and the potential value of entering a market.
You can ask current and potential customers about their attitudes, use cases, preferences, and levels of awareness and utilization for a given product category.
The resulting insights will help you disrupt current markets and identify new ones for your company to explore.
As a category develops, new users of the space will sample the different brands without any sense of loyalty whatsoever. To most people, getting a Lyft or an Uber comes down to how long you have to wait.
During this phase, it’s important for companies to use product/market fit and customer satisfaction surveys to determine what features and benefits are most appealing across all brands within the space and work to create a product that best embodies these traits in the eyes of consumers.
Once the competition in a category truly heats up, every brand engages in a competition called the Law of the Category, in which the winner will end up with at least half of the market share in the category. Second place will get 20-30 percent, and everyone else will fight over the scraps or go out of business.
The insights from brand measurement surveys will help determine which brands consumers prefer in your category, what they’re doing right, and what you can do about it in order to maneuver your brand into the #1 position before it’s too late.
So what can you do if you want to master experience management on budgets big or small?
Take our advice and use the different types of studies we described here to either disrupt or find new markets with market research surveys, achieve early differentiation as your category develops with customer satisfaction studies, and ultimately achieve the position as the number one brand using brand measurement as the vertical matures.
Please, we want to hear about a survey you created for marketing. What did you do, what did you learn, and how did it help your company/brand grow?
Brilliant comments are definitely worthy of super-cozy t-shirts and/or hoodies in our book.