Developing New Products or Services to Increase the Bottom Line...

For an insurance services client who was in a declining market we developed a conjoint study. We initially conducted qualitative research to obtain key features and levels of products, pricing, delivery points and service with both customers and non-customers to enter as elements of our quantitative study.

After analyzing the results, we were able to develop packages of services at a contract price for each of their customer’s particular needs.The research results were used to develop specific target market packages, depending on their customer’s claim volume and average severity of claims. This resulted in a 15% and a 20% increase in the two major markets for our client.

ADVANCED ANALYTICS

CONJOINT ANALYSIS
When faced with a critical product or pricing decision, conjoint analysis can help. Conjoint is a powerful research technique that predicts how the market will respond to product or pricing changes. This is done by understanding the trade-offs that customers make during the decision-making process. The technique can be used to answer the all-important question. "What value does the market place on products or services and their features?"

Conjoint analysis / discrete choice helps answer vital product development and pricing questions, such as:

• What combination of features should a product or service offer? Which are the most critical features, and which are less important?
• How does price impact demand for the product or service?
• How well will a new product or service compete in the market?
• Which strategic changes will maximize market preference across your product portfolio?
• Which strategic changes will minimize cannibalization of existing product offerings, especially premium or higher margin products or services?
• How vulnerable are you to competition?

You can get even more value from a conjoint analysis study with needs-based market segmentation, a technique that divides a market into groups of people who place similar value on the various features of a product or service. Going this extra step can lead to more highly targeted product development and pricing strategies.

PERCEPTUAL MAPPING
The market’s image of a product is based on its features and benefits , whether real or perceived. We illustrate these perceptions to give you a powerful “at-a-glance” look at where your brand lies on the competitive landscape. Based on how customers rate the functional and/or emotional attributes of your brand and competitive brands, we create visual representations that depict your position relative to the competition and to customer ideals. The result is a clear picture that provides opportunities for positioning your brand more effectively.

Perceptual mapping provides answers to these vital questions:

• What is your market position relative to your competitors?
• What are your strengths and weaknesses?
• Where are the gaps in the market?
• How do you measure up to the “ideal”?
• What strategies will improve your competitive position so that you are both relevant to the market and differentiated from competitors?

Combining perceptual mapping with conjoint analysis creates an extremely powerful analytical and modeling tool. By linking the two techniques, potential changes in brand perceptions can be tested in the conjoint model in order to predict the market impact of those changes.

We invite you to learn more about how perceptual mapping can be combined with conjoint or other studies to benefit you. Contact us at 404-307-7297 or emailing Chet@BertolliRM.com.