MARKETING
The Plain-English Guide to Conjoint Analysis
Sometimes, commercials really get me.
T-Mobile‘s Super Bowl commercial this year is a prime example — “What’s for Dinner?” demonstrates the infuriating process of choosing what to do for dinner for a young couple, and it’s gold.
The reason T-Mobile’s ad was so relatable is because of their market research. They looked at what their target audiences wanted — including their thought processes, what informs their decisions, and the trade-offs they’re willing to make for their products.
To accomplish all of these important factors in one go, many companies use conjoint analysis.
What is Conjoint Analysis?
Conjoint analysis is a market research tactic that attempts to understand how people make decisions. A common approach, the conjoint analysis combines realistic hypothetical situations to measure buying decisions and consumer preferences.
Think about buying a new phone. Attributes you might consider are color, size, and model. The reason phone companies include these specs in their marketing is due to research such as conjoint analysis.
Would consumers purchase this product or service if brought to market? That’s the question conjoint analysis strives to answer. It’s a quantitative measure in marketing research, meaning it measures numbers rather than open-ended questions. Questions on the phone company survey would include price points, color preference, and camera quality.
Surveys intended for conjoint analysis are formatted to reflect the buyer’s journey.
For instance, notice in this example for televisions, the specs are the options and the consumer picks what best reflects their lifestyle:
This direct method of giving consumers multiple profiles to then analyze is how conjoint analysis got its name. These answers are helpful when determining how to market a new product.
If answers on the phone company survey proved that their target audience of adults ages 18-25 wanted a green phone from $400-600 and a camera with portrait mode, advertisements can cater directly to that.
The conjoint analysis shows what consumers are willing to give up in order to get what they need. For instance, some might be willing to pay a little more money for a larger model of a phone if their preference is larger text.
Types of Conjoint Analysis
Choice-based conjoint (CBC) and Adaptive Conjoint Analysis (ACA) are the two main types of conjoint analysis.
Choice-based is the most common form because it asks consumers to mimic their buying habits. ACA is helpful for product design, offering more questions about specs of a product.
Choice-based conjoint analysis questions are usually presented in a “Would you rather?” format. For example, “Would you rather take a ride-share service to a location 10 minutes away for $13 or walk 30 minutes for free?” The marketer for the ride-share service could use answers from this question to think of the upsides to show off in different campaigns.
ACA leans towards a Likert-scale format (most likely to least likely) for its attribute-based questions. Respondents can base their preference on specs by showing how likely they are to buy a product with slight differences — for example, similar cars with different doors and manufacturers.
How To Do A Conjoint Analysis
To create a conjoint analysis, you’ll first need to define a list of attributes about your product. Attributes are usually four to five items that describe your product or service. Consider color, size, price, and market-specific attributes, such as lenses if you’re selling cameras.
Additionally, try to keep in mind your ideal respondents. Who do you want to answer your survey? A group of adult men? A group of working mothers? Identify your respondent base and ask specific questions catered to that target market.
The next step is to organize your questionnaire depending on the type of conjoint analysis you want to conduct. For instance, to run an adaptive conjoint analysis, you will present questions with a Likert-scale.
You can use a conjoint analysis tool to create and modify your survey. Then, you can distribute your questionnaire through multiple channels, including email, SMS, and social media.
For more ways to introduce product marketing into your company, check out our ultimate guide here.
Examples of Conjoint Analysis
Sawtooth Software offers a great example of conjoint analysis for a phone company:
The analysis puts three different phone services next to each other. The horizontal column of the model identifies which service is offering a certain program, described by the vertical values. The bottom row shows a percent value of consumers’ preferences.
QuestionPro offers this fun, interactive conjoint analysis template about retirement home options. The survey gives you a scenario and asks your course of action. For instance, it asks if you would sign a rental agreement for retirement home housing immediately, and considers specs like rent, meals, size, etc.
Conjoint analysis isn’t limited to existing products. They’re also very helpful for figuring out if a brand-new product is worth developing. For instance, if surveys show that audiences would be into the idea of an app that chooses clothes for consumers, that could be a new venture for clothing companies in the future.
Looking to create a conjoint analysis of your own? Check out our top four conjoint analysis tools below.
Conjoint Analysis Tools
1. Qualtrics
Qualtrics is an easy-to-use survey tool that offers comprehensive product insights. You can create, modify, distribute, and analyze a conjoint analysis in one place. All it takes is four steps — define your attributes, build and modify your questions in the survey editor, distribute the survey, and analyze the results.
What We Like: Qualtrics goes beyond product insights — this powerful software also captures customer, brand, and employee experience insights.
Pro Tip: Leverage email to invite respondents to take your survey. With Qualtrics, you can embed a survey question directly in your email survey invite.
2. Cojoint.ly
Conjoint.ly offers a complete toolbox for product and pricing research — including a Product Description test, an A/B test, and a Price Sensitivity test. You can also source your own respondents for your survey or buy quality-assured respondents from Conjoint.ly.
What We Like: Users can simply choose a tool that best fits their research question. These tools are organized under four main categories: pricing research, features and claims, range optimization, and concept testing.
Pro Tip: If you want to “try before you buy,” you can use Conjoint.ly’s Quick Feedback tool. For a small price, you get around 50 respondents to provide feedback within a 6-hour window.
3. 1000minds
1000minds offers an adaptive conjoint analysis tool. Meaning, each time a choice is made, it adapts by formulating a new question to ask based on all previous choices. This makes the survey feel more like a conversation.
What We Like: We’re impressed by the scalability of 1000minds. The tool allows you to include as many participants as you like, potentially in the thousands.
Pro Tip: You can use their conjoint analysis templates or build your own model from scratch.
4. Q Research Software
Q is analysis software that is specifically designed by market researchers. Its conjoint analysis tool is ideal for choice-based analyses. Users can create experimental designs, analyze the data, and generate reports.
What We Like: Q cuts through the grunt work with automation — including cleaning and formatting data, updating surveys, and producing reports.
Pro Tip: With just a few clicks, you can export any reports or visualizations from Q to PowerPoint and Excel.
A conjoint analysis requires a solid survey design and analysis, but the extra effort is often worth it. By going the extra mile, you can access insights into your audience’s preferences and buying decisions — which is invaluable when determining how to market a new product or service.
Source link
MARKETING
Quiet Quitting vs. Setting Healthy Boundaries: Where’s The Line?
MARKETING
Microsoft unveils a new small language model
Phi-3-Mini is the first in a family of small language models Microsoft plans to release over the coming weeks. Phi-3-Small and Phi-3-Medium are in the works. In contrast to large language models like OpenAI’s ChatGPT and Google’s Gemini, small language models are trained on much smaller datasets and are said to be much more affordable for users.
We are excited to introduce Phi-3, a family of open AI models developed by Microsoft. Phi-3 models are the most capable and cost-effective small language models (SLMs) available, outperforming models of the same size and next size up across a variety of language, reasoning, coding and math benchmarks.
What are they for? For one thing, the reduced size of this language model may make it suitable to run locally, for example as an app on a smartphone. Something the size of ChatGPT lives in the cloud and requires an internet connection for access.
While ChatGPT is said to have over a trillion parameters, Phi-3-Mini has only 3.8 billion. Sanjeev Bora, who works with genAI in the healthcare space, writes: “The number of parameters in a model usually dictates its size and complexity. Larger models with more parameters are generally more capable but come at the cost of increased computational requirements. The choice of size often depends on the specific problem being addressed.”
Phi-3-Mini was trained on a relatively small dataset of 3.3 trillion tokens — instances of human language expressed numerically. But that’s still a lot of tokens.
Why we care. While it is generally reported, and confirmed by Microsoft, that these SLMs will be much more affordable than the big LLMs, it’s hard to find exact details on the pricing. Nevertheless, taking the promise at face-value, one can imagine a democratization of genAI, making it available to very small businesses and sole proprietors.
We need to see what these models can do in practice, but it’s plausible that use cases like writing a marketing newsletter, coming up with email subject lines or drafting social media posts just don’t require the gigantic power of a LLM.
Dig deeper: How a non-profit farmers market is leveraging AI
MARKETING
Navigating the Video Marketing Maze: Short-Form vs. Long-Form
Are you torn between using long-form or short-form videos for your small business marketing campaign? Well, you are not alone. Despite 89% of consumers wanting to see more brand videos, there is no one-size-fits-all answer about the ideal video length.
However, this should not deter you from creating an effective video strategy. In 2023, people watched an average of 17 videos per day, highlighting the influence of video content in today’s digital landscape.
Both short-form and long-form videos offer unique advantages and come with their set of challenges. Join me as I uncover the benefits and limitations of each video format to help you make informed marketing decisions.
What are Short-Form Videos?
Short videos typically range from 30 seconds to less than 10 minutes long. They are popular on social media platforms like TikTok, Instagram, Snapchat, and YouTube.
Short-form videos deliver brief yet engaging messages that quickly capture the viewer’s attention. Here are some popular types of short-form video content.
- TikTok Challenges
- Instagram Reels
- Snapchat Stories
- YouTube Shorts
- Twitter Video Ads
Benefits of Short-Form Videos
A previously cited report shows that 39% of marketers find short-form videos, ranging from 30-60 seconds long, more successful. The same study reports that 44% of customers prefer watching a short video to learn about a brand’s offerings.
So, it is evident that short-form videos have their benefits. Let’s take a closer look at some of them.
Attention-Grabbing
Short-form videos capture attention quickly, making them ideal for the fast-scrolling nature of social media platforms. Your audience is more likely to watch them in their entirety compared to longer content.
Cost-Effective Production
Creating short-form videos requires less time and resources compared to longer videos. As a small business owner with a limited budget, using short-form videos can be cost-effective.
Increased Engagement
Short-form videos engage viewers due to their crisp and concise nature. This results in more likes, comments, and shares that boost your content’s visibility and increase brand awareness.
Integrating short-form videos into your influencer marketing campaigns can further amplify your reach to new and diverse audiences.
Highly Shareable
Short videos are highly shareable. This makes it more likely for your viewers to share them, increasing their virality.
Want to get certified in Content Marketing?
Leverage the tools and channels to predictably and profitably drive awareness, leads, sales, and referrals—EVERYTHING you need to know to become a true master of digital marketing. Click Here
There are multiple benefits of adding video to your website including increased engagement, improved SEO, and enhanced user experience.
Limitations of Short-Form Videos
While short-form videos offer many advantages in content marketing, they also present some challenges.
Limited Message Depth
Due to their brief duration, short-form videos may struggle to convey complex or detailed messages. Longer videos might be more suitable if you need to communicate intricate information.
Competition for Attention
Standing out on platforms flooded with short-form video content can be challenging. You must create content that stands out to avoid becoming lost in the sea of other videos.
Shorter Lifespan
Short videos may lose their relevance with time. They can quickly get buried in users’ feeds, leading to a shorter visibility and engagement period than longer, evergreen content.
This means you must consistently create short-form videos to maintain audience interest over time.
Limited SEO Impact
Short-form videos may be more challenging to optimize for search engines than longer, more keyword-rich content. This can affect the discoverability of your content outside the social media scene.
What are Long-Form Videos?
Long-form videos are typically longer, ranging from a few minutes to several hours. They extend beyond a few minutes to several hours, providing ample time for in-depth topic exploration and detailed content.
These videos are particularly suitable for educational content, product demonstrations, and narrative-driven storytelling. Long-form videos are common on platforms like YouTube and Vimeo. Common types of long-form video content include:
- YouTube Series
- Webinars
- Educational Tutorials and Courses:
- Behind-the-Scenes Content
- Interviews and Conversations
Advantages of Long-Form Videos
Long-form video content is the fastest-growing segment, with videos above 30 minutes experiencing tremendous growth over the years. Let’s explore some of the benefits behind this growth.
Establishes Expertise and Credibility
Long-form videos allow you to provide in-depth information about various subjects, establishing your brand as an authority. Potential customers will likely trust and rely on your insights when you consistently deliver valuable content.
Builds Strong Audience Connections
The more your audience watches your videos, the more they become familiar with your content and brand. This consistent engagement promotes trust and loyalty, helping you create deeper connections with your audience.
Provide SEO Optimization Opportunities
Long-form videos keep your audience engaged for a longer duration than short ones. This signals search engines that your content provides value, resulting in higher rankings and increased visibility.
Besides, these videos provide opportunities to optimize for relevant keywords. This Attrock guide offers more insights into the value of SEO for your small business.
They Are Sustainable
Unlike short videos, well-produced and valuable long-form videos have an extended shelf life. They can continue to attract views and engagement over an extended period, contributing to a sustainable content strategy.
Instagram reels are also a part of short videos and you can get benefits from this platform by integrating it with your website. You can learn how to embed Instagram Reels on websites and get extra benefits from your Reels.
Drawbacks of Long-Form Videos
Despite their benefits, long-form videos also have certain limitations, including:
Attention Span Challenges
Between distractions, juggling tasks, and information overload, user attention span quickly diminishes. Viewers may lose interest and disengage from your long video before its conclusion.
Are You Ready to Master Social Media?
Become a Certified Social Media Specialist and learn the newest strategies (by social platform) to draw organic traffic to your social media sites.
Complex Production Process
Creating high-quality long-form videos requires more resources, including time, equipment, and skilled personnel. This can be disadvantageous, especially for small businesses with limited budgets.
Platform Limitations
Some social media platforms and video hosting sites may limit video length, making it challenging to distribute long-form video content. You may then be forced to repurpose your content to suit various platforms.
Short-Form or Long-Form Videos: Which Are Better?
Now that you know the benefits and limitations of each format, which one should you choose? Short-form or long-form videos?
Well, it all boils down to considering several factors, such as:
Content Objectives
What do you want to achieve from your video marketing campaign? Short-form videos are highly effective for quick brand exposure and generating buzz. Long-form videos, on the other hand, contribute to a more in-depth understanding of the brand.
Target Audience Preferences
Audiences with short attention spans likely prefer short-form videos, while long-form videos appeal to those seeking a more immersive experience.
Similarly, short-form videos may appeal more to younger audiences, while older demographics may prefer the depth of long-form content.
Platform Dynamics
Various platforms support different content formats. Short-form videos are well-suited for platforms like TikTok, Instagram, and Snapchat. On the other hand, platforms like YouTube and Vimeo are better for hosting longer videos.
Industry Type
Short-form videos would be ideal if your industry thrives on trends, entertainment, and quick messages. However, long-form videos are effective for industries requiring in-depth explanations or educational content.
Bottom Line
Ultimately, choosing short-form or long-form videos depends on your business’s specific needs and goals. Since both formats have advantages and limitations, making a choice may prove difficult.
However, it doesn’t have to be an uphill task. The key lies in recognizing when to incorporate each video format into your marketing strategy. Understanding your audience and its needs allows you to combine both formats strategically, maximizing the benefits of each.
Continuously analyze performance metrics and adapt your video marketing strategy accordingly to ensure optimal engagement and conversion rates.
-
MARKETING6 days ago
Effective Communication in Business as a Crisis Management Strategy
-
SEARCHENGINES7 days ago
Google Won’t Change The 301 Signals For Ranking & SEO
-
SEO6 days ago
brightonSEO Live Blog
-
PPC7 days ago
9 Ecommerce Trends to Boost Your Business in 2024
-
SEO4 days ago
Google March 2024 Core Update Officially Completed A Week Ago
-
SEO7 days ago
How To Write ChatGPT Prompts To Get The Best Results
-
WORDPRESS5 days ago
9 Best WooCommerce Multi Vendor Plugins (Compared)
-
SEARCHENGINES5 days ago
Daily Search Forum Recap: April 25, 2024
You must be logged in to post a comment Login