1 Mind Genomics + Big Data = Big Mind How a practical business application (Empathy & Experiment) has the promise to inform social modeling Howard R. Moskowitz inovum LLC White Plains, NY, USA Batool Batalvi SB&B Research Toronto Canada, Lahore Pakistan
2 We are scientists and engineers but the answer may come from marketing yes, from business!!
3 L: A set of nodes whose behavior is known R: Now we know the minds sets as well How does behavior co-vary with mind-sets?
4 Big Mind from Big Data Marketing provides a strategy using Mind Genomics Marketplace Failure Why Should Companies Care A New Way of Thinking A Worked Example Getting there creating a microscience Pathways for driving consumer behavior Getting there typing a mind Extensions to databases
5 The Marketing Concept Central tenets crystallized in the 1950s Corporate Goal: Be more effective than competitors in creating, delivering, and communicating customer value to its selected target customers The marketing concept rests on four pillars: Target market Customer needs Integrated marketing Profitability Prominently featured in business management text books
6 Yet billions of dollars are lost on new product introductions More than 65% of new products launched by established companies fail, says McCombs School of Business professor Rob Adams Author of If You Build It Will They Come? Three years after a launch, the product -- or service -- is no longer available. In the United States, companies spend about $260 billion annually on new products that fit this description.
7 Harvard Business School professor Clayton Christensen reports about 95% of new products fail The problem is using an ineffective market segmentation mechanism. What doesn t work particularly well is segmentation based on dividing the market into: Product categories, such as function or price Target demographics, such as age, gender, education, or income level The problem is that consumers usually don't go about their shopping by conforming to particular segments. "The fact that you're 18 to 35 years old with a college degree does not cause you to buy a product."
8 The Puzzle of Delivering Products and Services Consumers Want The leading tenets of the Marketing Concept is widely taught The new product failure rate is huge (would you accept this level of failure when you want to wash a load of laundry?) A leading academic authority says the segmentation of consumers is not working So what is to be done????
9 Mind Genomics mind-set segmentation cuts across traditional segmentation Behavioral Segmentation Product Usage Brand Loyalty Attitudes Mind Genomics Segmentation Psychographic Segmentation Social Class Lifestyles Personality Type Demographic Segmentation Age Gender Income
10 The Science of Mind Genomics When people make a simple, every day decision, what are their criteria? How do we find out what s really important Ask them But that answer may be edited what is appropriate to say Observe them watch a person choosing from among alternatives we might learn what drives the choice
11 The Science of Mind Genomics The value of the experiment Let s create the alternatives and measure which is chosen We get a general percent preference But we don t know the rules So..we have to do an experiment so the rules emerge
12 So far..where are we We want to understand a personal reality from the subjective point of view How..by seeing the pattern of reactions to communications about a small piece of reality How by doing an experiment
13 Illustrating by a case history Selling retirement products The company wants to convince a buyer to invest with them What should the company say? And to whom? One concept for the many Target concepts to the prospects where the messages will change behavior
15 The 4X9 survey matrix creating four category silos (A-D) Silo A Silo B Silo C Silo D
16 The 4X9 survey matrix populating each silo with nine statements. Each statement is a stand alone idea. A1 A3 A4 A5 Silo A - 4 of 9 potions Wells Fargo It is never too late to plan for your retirement JP Morgan Chase It is never too late to plan for your retirement Merrill Lynch It is never too late to plan for your retirement Tell us when you want to retire and we will develop an action plan to get you there Silo A Silo B B1 B2 B7 B9 Silo B - 4 of 9 Options Convenient 24/7 online access to your account and our experts...ask questions monitor your progress all online! We have not forgotten that we are in the relationship business our retirement planning experts are never more than a phone call away We offer a no surprise fee structure one flat monthly fee to establish and monitor your personalized retirement plan We offer a combination fee structure a low monthly fee plus discounted prices for each transaction Note: Working with the pilot hospital inovum developed six attribute statements for each of six silos to create the 6X6 survey matric.
17 The 4X9 survey matrix populating each silo with nine statements. Each statement is a stand alone idea. Silo C C1 C3 C7 C9 Silo C - 4 of 9 Options With you in charge of your retirement plan you know if your objectives are being met If you don t plan for your retirement nobody else will make sure you get to where you want to be You will feel more secure knowing that every step of your financial future is being managed By drafting a retirement plan you will be securing your own financial future Silo D D2 D4 D6 D8 Silo D - 4 of 9 Options You can t underestimate the value of your retirement planning expert knowing you, your family, your community A special class of service is available to those who attain Platinum status For a limited time only, meet with one of our retirement planning experts for a free initial consultation Planning for your retirement has never been more convenient Note: Working with the pilot hospital inovum developed six attribute statements for each of six silos to create the 6X6 survey matric.
18 THE EXPERIMENTAL DESIGN SPECIFIED COMBINATIONS
19 The experimental design is a recipe book Tells the computer what to combine Each element appears 5x against different combinations of other elements Each combination or vignette (test concept) comprises 2-4 elements Every respondent sees a different set of combinations
20 Some combinations Silo A Silo B Silo C Silo D V1 A1 B1 C1 D1 V2 Absent Absent C3 D2 V3 A3 Absent C2 D7 V4 A6 B3 Absent D3 V5 A9 B7 C4 D1
21 Example of a test vignette
22 RUNNING THE ACTUAL STUDY WITH PEOPLE
23 A choreographed sequence Orientation slide telling people what they will see and what they must do 60 vignettes, with elements arrayed according to an experimental design Self profiling classification to tell us who these people are, what they do
24 Running the study Typically by web Respondents invited to participate by Click on a link Go the web Do the study Around minutes Respondents test 60 concepts Best to use a panel, so respondents get rewards
25 The advantage of modeled data The model summarizes the relation between elements and responses Each element is an independent driver of the response So the model objectively tells us which elements are working All elements are on the same basis how does the element do in terms of absolute ability to drive response
26 LET S LOOK AT SOME DATA
27 We created individual respondent models Now let s aggregate them By total panel By key groups And determine what s going on in the inside of the respondent s mind Not by direct question but by seeing what wins in an experiment
28 LOOKING AT SOME INITIAL RESULTS
29 What to look for The different groups The additive constant basic interest in buying the product is it high or low Winning elements what each element contributes What are the high elements?
30 Looking at the statue as analogy Elements Additive constant
31 Subgroup, base size, constant Look at under 40 vs 40+ High Income Low Income 40+ Under 40 Female Male Total Sample Base size Additive constant
32 Now to look at the top performers Based upon the coefficient (impact value) From the binary transform (INT Model) The additive constant = conditional probability of interest in absence of elements The element = incremental probability of interest when element is incorporated into the vignette
33 Total Sample Male Female Under Low Income High Income Base size Additive constant Tell us when you want to retire and we will develop an action plan to get you there Assess your financial health with our retirement planning worksheet answer some basic questions about your financial present and your goals for the future then we will recommend some strategies to get you there Convenient 24/7 online access to your account and our experts...ask questions monitor your progress all online! We will work with you every step of the way to develop and monitor your retirement investments to ensure that they will meet your objectives Planning for your retirement now means you won't get caught short since you still have time to do something about it It is never too early to start planning for your financial future the steps you take today will significantly affect the quality of your life 10,20 even 40 years from now
34 Uncovering mind-set segments Look at groups of respondents with similar patterns of element values Use clustering technique The clusters are built by combining people with similar mind views not based on demographics or purchase behavior The segments represent different pathways to the call to action
35 Uncovering response based mind-set segments
36 Following the approach We find three different mind-set segments V1 Easy retirement V2 You know me and can help V3 Up to date full service retirement planning V3 is our target clearest, strongest response to the elements
37 V1 V2 V1 + v2 V3 Total Base size Additive constant Tell us when you want to retire and we will develop an action plan to get you there It is never too early to start planning for your financial future the steps you take today will significantly affect the quality of your life 10,20 even 40 years from now Your plan will be reviewed annually not just by YOUR consultant but with our entire staff of retirement planning experts working in collaboration to ensure that your needs are being met Convenient 24/7 online access to your account and our experts...ask questions monitor your progress all online! During your peak earning years we will help you to manage the changes in your life to the advantage of your longer term retirement plan We offer a "no surprise" fee structure one flat monthly fee to establish and monitor your
38 OPPORTUNITY MAXIMIZATION: THE ASSIGNING OF A NEW PERSON TO A MIND-SET SEGMENT
39 You meet a person To what segment does that person belong? Sales implication if you know the segment you can send the right message or deliver the right product
40 Scenario 1 you meet the person Identify what elements in the study differentiate the segments Here are the 3 best differentiators
41 Now use statistics (DFA) to create a scoring tool Once you know the key elements and the scoring tool, create a simple questionnaire The pattern of responses shows you the segment to which a person belongs DFA = discriminant function analysis
42 First screen the introduction
43 Looking for mind-set segments Note that we have converted the scale to 3 points
44 When DFA assigns the person to Segment V3 (our target group)
45 The next big steps (around the corner) DATABASE VPI: Migrate to recognizing segments in a database, so that the entire database can be scored for segment membership the one topic area. Use purchasable data MACRO KNOWLEDGE:Create a macro-knowledge base, not of one topic area, but of 300 topic areas (e.g.,300 separate Mind Genomics studies, VPI, and database scoring systems) WORLD SCORING: Scoring each person in the world through the database millions or even billions of people.. In terms of their mind set membership in EACH of the 300 (or more) topic areas MERGE WITH SOCIAL MEDIA, NETWORKS: Now that we know the mind-type of each person on topic areas, how do mind-types behave,and interact in social media?
46 L: A set of nodes whose behavior is known R: Now we know the minds sets as well How does behavior co-vary with mind-sets?
47 The foregoing approach Available in refereed journals Available in published books Presenter has written 18 new books called Mind Genomics. Topics are: Government, People, Jobs (1 book each) Food (6 books) Experience (3 books Law*, Aesthetics, Correlation with Neuromarketing* (1 book each) Sociology* fraying of America (1 book) Health supplements, health experience* (2 books)
48 Three books detailing Mind Genomics 48
49 Applications - business Selling products cars 20% 40% Selling health compliance in congestive heart failure 17% readmission 5% readmission School enrollment 35% increase online university Increase in donation to university 18% (Cornell) Catalog sales in test Typing for happier experience with veterinary in test
50 Applications society and education Teaching students mathematics the way they want The teenager and the hospital a better experience Making a university interesting to students Retaining students during the school year to reduce drop outs, and increase graduation Helping reduce obesity by proper food messages
51 An inovum Case Study Dr. Howard Moskowitz inovum Bert Krieger inovum Luke Heffron SG MJI/iNovum. The ViewPoint Identifier and VPI are trademarks and Mind Genomics is a registered trademark of MJI/iNovum. All rights reserved. Given the competitive nature of your business, client confidentiality is obviously critical. Our business is also competitive. Our methodologies are proprietary and as such, we hope that our clients and perspective clients protect our interests. We ask that you not share our material with any third-party without written permission. All information is confidential and proprietary.
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