Showing posts with label tools. Show all posts
Showing posts with label tools. Show all posts

Tuesday, October 08, 2013

SfG Newsletter: Consumer insights in emerging markets

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How do you understand customers in places that are very different from your home-market? Brilliant companies like Toyota, MacDonalds and Danish fashion company IC-companies have failed to connect to the Chinese consumers, thinking that they could simply push the same products that were successfull in the West.

The latest newsletter from the ”Suitable for Growth” project at the Universe Foundation focuses on how to collect market insights in emerging markets, for instance by using ethnographic observations and organizing insights in ”Customer journey maps”.

It also offers lots of entertaining examples of cultural quirks and surprises collected in China. And it features a rare insight into how Haier, the Chinese white goods manfuacturer, uses customer understanding as its core competitive advantage.

It's obvious - if you can see it

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Jan Chipchase is probably the worlds leading consumer anthropologist. He has spent decades travelling the world doing consumer research for companies like Nokia, diving deep into local cultures, following consumers in their homes and at work.

In his book ”Hidden in plain sight”, Chipchase presents his methods and how companies use his observations to win customers, even in the most foreign markets and cultures.

His website is a wonderful and ever-changing collection of his snapshots and observation from criss crossing the world – China, Libya, Japan, Afghanistan... -   in search of insights that can lead to better products.



It’s obvious: If you want to create suitable products, you need to know your customers well.

Jan Chipchase is probably the worlds leading consumer anthropologist. He has spent decades travelling the world doing consumer research for companies like Nokia, diving deep into local cultures, following consumers in their homes and at work. Today he is head of consumer insight at Frog, a leading American design company.

In his new book ”Hidden in plain sight”, Chipchase presents his methods and how companies use his observations to win customers, even in the most foreign markets and cultures.



The inspiration that Jan Chipchase collects is anything but linear and direct. Seeing a child by the roadside in Ho Chi Minh City selling gasoline to scooter drivers from a large bottle placed on a stack of bricks, and using a simple plastic hose to fill the scooters’ fuel tank, Chipchase realizes that this is the absolute minimum of what a gas station can be.

He uses the observation to start thinking about what a gas station would be like if it didn’t even sell gasoline. In an age of electrical cars, which can charged when people park at home or at their job, what services remain for the gas stations to deliver: bathrooms, food, car service, picking up parcels? How do gas stations make a difference when the gas is gone?



Building trust

Noticing that in some places, consumers making a cup of tea will sniff the milk before they pour it into the cup, Chipchase starts wondering about the many ways that companies need to build trust in their brand by allowing users to ”sniff the milk” before they buy.

How to signal trust, reliability, status varies tremendously between cultures – and understanding how to meet the locate requirements and style of communicating quality is crucial – for instance, if you are selling milk, chicken or beer in China.

A Chinese example of building trust is the use of carpet mats in elevators, and seat coverings in taxis with the current day of the week printed on them – a way to show customers that this is a clean place.

One reason why Ebay has failed, but Taobao has succeeded in China, is that Taobao allows customers to put the payment into an escrow account at Taobao. Sellers know that the money has been deposited, but it will only be released, when the customer has received the goods and is satisfied with them.



No-one wants to be seen as disabled

A particularly interesting case, which Chipchase describes in his book, is the process, Nokia went through when it considered whether to create a handset specifically suited for illiterate users in developing countries.

Nokia has a very strong brand in developing and emerging markets. Of the more than a quarter of a billion phones it sells annually, a large part are the simplest and cheapest model, and millions of them are sold to people who are illiterate.

Chipchase and his colleagues did extensive research into how illiterate people use phones and services such as texting or receiving information. They realized that illiterates do not want to carry a phone, which clearly signals that they have no education. People have invented all sorts of work-arounds that allow them to use the phone despite not knowing letters and numbers, so for them, the most important factor was that the phone is cheap and reliable.

The surprising conclusion for Nokia was, that it would be better to continue selling one, really cheap phone, rather than developing and marketing a new model, which would inevitably be more expensive.

Therefore, Nokia decided to focus its efforts on designing little changes to the general interface that could help the illiterate.



Go out and live with people

A lot of Chipchase’s work has been helping Western companies understand what consumers in the emerging markets become willing to pay for as their buying power increases.

He repeatedly emphasizes that ”low-income people are in fact some of the worlds toughest customers. Because they have to make every rupee count, they can least afford to buy poorly designed products”.



”Hidden in plain sight” is also a bit of a manual. Chipchase describes how he and his teams start their scouting in a new location by finding local helpers – ”fixers” – often students, who can take them for tours, explain local quirks and set up meetings in private homes and companies.

Rather than staying at a hotel, Chipchase prefers renting a house for the whole team to live in, and he recommends renting bikes, to get a closer feel for the city’s flow and life. He likes to wake up early to observe the city coming to life; unfolding the functions, rituals and habits of everyday life.

Barbershops are one of the places he visits to get into conversations that go deeper than an outside observation. He confesses, that he has managed to take a shave twice in a day, just to meet more people.



It’s all about looking at the world with a systematically open and curious mind: Visiting people in their homes, sneaking a peek in their refrigerator and bathroom, joining them on their commute to work, studying what they carry in their pockets and bags, and asking why they carry it.  Weeks of observations lead to a better sense of how people consume, in order to make their lives more convenient and maintain the social status they strive to express: whether it be through the use of mobile phones, banking services or deodorant and toothpaste.

In Bangkok, Chipchase found a shop selling false braces for teeth. The cheap braces obviously were not working, but they were worn by people who wanted to signal that they had the means to have their teeth straightened.



Find a problem and fix it

It becomes clear from the many examples in the book how blockbuster products and service have emerged, because someone realized, that there was an everyday problem, which could be fixed – but which, as the title of the book has it, had been hidden in plain sight.

A simple insight into how users behave allows designers to come up with improvements – big or small: Google understood that we often forget to attach files when we mail others, so in Gmail, if you use the word ”attach” in your message, and you don’t attach a file, the system will ask if you want to attach a file, before sending.



What’s suitable for customers is not always obvious, there is any number of ever-changing  dimensions and variables to consider and weigh against each other. Jan Chipchase’s book will give readers a good introduction to some methods that can business choose with more precision.



Chipchase'sblog, future perfect, is a treasure trove of funny and thought provoking observations from around the world.

Sunday, May 12, 2013

Basic tricks for computer use that you ought to know

New Times tech columnist David Pogue delivers real value for your time in this 6 minute TED presentation of 10 basic trick for easier everyday use of you computer, phone and camera.
Like: don't use your mouse to scoll on a webpage, use the spacebar to go down a screen - or shift space bar to go back up again.
Or: Press ctrl + to magnify the size of text on a webpage. ctrl - to back in size again. (it's the cmd-key on Macs)
useful stuff.

Wednesday, April 10, 2013

Saving all open word documents at once

Ah, I finally found this function: If you have a bunch of word documents open on your screen and want to make sure they are all saved, you can save them all in one go by pressing "shift", and then choosing the "save all" function which will now appear in your "file" menu. Works for both windows and Mac. Wonderful!
It's explained in detail here.

Thursday, May 03, 2012

Insights from IDEO

Anyone interested in innovation can probably find inspiration in the brief online newsletter, Patterns, which IDEO publishes. It's a great place to stay updated on the latest buzzwords. Most recent issue is about Gamification, other recent topics were "Serve the people", "Social media bolstering big brands" and "Care and repair".
Lots of good stuff, easily accessible.

Wednesday, February 29, 2012

No nonsense tools for everyday creative work


Let me present three of my favorite personal tools: The Parker Jotter ball pen in stainless steel, the Pentel p205 mechanical pencil, and the classic black Swatch GB743.

They may seem very different, but actually, they have several important characteristics in common. Functionally, they are as good as any product on the market.

The refill for the Jotter is exactly the same that is used for many way more expensive pens. The Swatch keeps time with the same precision as a Rolex, and it is as easy to read.

In fact, they are all extremely functional. The Pentel p205 pencil has a great grip, it’s sturdy, accurate, the eraser works, no wonder it has many fans around the world. The Jotter fits your hands very well – as the 750 million jotters sold since its introduction in 1954 testify. The Swatch is clear, simple, light, and sufficiently waterproof for any everyday use.

The 3 tools also belong to the same category price wise. Depending on where you buy it, the Jotter cost between 5 and 12 €, the Pentel costs around 8 € and the Swatch costs around 40 €.

That’s more than a disposable or really cheap product costs, so they are something that you take care to keep. You get a certain attachment, but no more. Should I lose one (and I do), it would be an irritation, but nothing like the disaster of losing a Montblanc pen or a Rolex watch.


They are not status objects. You don’t pay for fancy ads in glossy magazine. You don’t flash these tools to show your wealth – but when I meet others who use them, I feel I know something significant about those people. The signal they send is one of an emphasis on no nonsense functionality.