situation
Our client is a telecommunications company operating in a competitive television market. Continued growth and profitability depend on their ability to position themselves as a premium provider, one that offers its customers unique features and packages that meet their ever-increasing demands. They wanted to better understand the television packages, features and pricing being offered across the industry, feeling that this knowledge would help them improve their own television offering going forward. Their business objectives were to maximize profitability, retain existing customers, maximize acquisition and migrate customers upward to a higher spend. Based on this, we identified their research objectives as determining price elasticity, customers’ likelihood to switch, factors to leverage for greater share of wallet, best way to position promotions ($ vs %) and their specific strengths vs. their competitors. This research could be sorted by customer segment, i.e. demographics, region, family status, etc.
solution
We needed to provide them with a solution detailed enough to model very specific cable packages, yet flexible enough to model changes in the competitive landscape. To meet these demanding requirements, we designed a complex, multi-approach research program that would give insight to building attractive program offerings, as well as the ability to modify these offerings in light of changes in the television market.
This online research program was among the most complicated market research designs that can be conducted. Although it was completed in 4 months (including less than 3 weeks of interviews), it included a survey that took close to 30 minutes to complete.
We fielded a research program that included a three-part discrete-choice analysis modelling consumer preferences down to the most specific details of a television package, plus a price-laddering exercise to give insight into customers’ pricing preferences and sensitivities surrounding these offerings. There were over 100 scenarios outlined, but each person would see a random grouping of 10, simulating customers’ real-life choices.
results
- We created a survey-based decision simulator using nearly 300 carefully designed market scenarios, including over 2,500 hypothetical television packages. We interviewed over 3,000 Canadians, who conducted more than 75,000 simulated choices of TV providers and packages. The data that resulted from this design enabled us to determine the specific preferences and priorities Canadians place on each aspect of a television package, from brand, to cost, right down to the specific features and attributes.
- Maritz’ Research team used the results of the survey to design an Excel-based tool that gives our client the ability to simulate real or hypothetical market scenarios of up to 20 packages from 3 providers. It has thousands of potential feature and attribute combinations. This gives our client the ability to see how changes in their products or those of their competitors would affect brand preference and market share. In addition, our research uncovered several potential new television offerings with a high likelihood of success, as well as identifying ideas that are less likely to succeed.
- Maritz’ deliverables, including the tool, the raw data and a report of the results overall, have given in-depth insight into one of its key markets, and valuable tools to use as it makes key product and strategic decisions into the foreseeable future. We provided the client with training on the tool, showing them all the variables and how to use it.
- By giving our client greater insight into their customers, they will be in a better position to engage them in the future.
