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
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.
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.
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.
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.
Excellent Tips To Optimize Your Sales Funnel With The Help Of Heatmap Tools
The lives of enterprises are growing increasingly tough as people’s lifestyles change. People are increasingly turning to internet retailers to meet their needs, resulting in increased market rivalry.
Continuous conversion funnel and conversion rate optimization have become critical for the successful functioning of online enterprises, which is no longer as simple as it may appear.
Don’t worry, you can learn how to perform this optimization procedure quickly and easily with the help of heatmap tools in the sections below.
A few words about the conversion funnel
The conversion funnel depicts the journey from a casual visitor to a paying customer. Consider it a funnel or filter through which all of your visitors pass, with just the consumers emerging at the other end.
It’s vital to remember that just 4-9% of your visitors will make it to the end of the funnel on average, so don’t be alarmed if your measures reveal that you have considerably fewer customers than visitors. This is very normal.
There are three parts of the conversion funnel:
However, various tactics must be used in each part. It makes no difference whether you use a top-down or bottom-up marketing strategy or analytic procedure.
If you don’t take these factors into consideration, you’ve already committed the most basic mistake in the optimization process.
You can find a different segment in each stage.
Simple visitors are found in the top funnel. They may have arrived with the goal of making a purchase, but they could also want to read your blog post. Of course, even if they didn’t mean to, you want them to purchase from you.
Because this stage comprises a huge number of people, you must pay special care to pique their interest and establish confidence. You risk failing at the first hurdle if you don’t examine these variables.
People that are interested in your goods and are familiar with you and your purpose are generally present in the middle part. This is one of the most difficult assignments since it has the highest chance of failure.
Information retrieval is frequently the most important aspect of this stage of the conversion funnel. Your prospective clients will compare you to your competition and seek reviews and information.
People that wish to buy your goods are in the bottom funnel. They have already made a choice, nevertheless, a terrible action might cause them to reconsider.
Here, strive for genuineness. You must structure everything so that potential purchasers are not put off from making a purchase.
But how you can optimize these stages? What analytics tool do you have to use and how?
Let’s see the answer.
Heatmap tools in the optimization process
Let’s take a look at how it works in practice now that we’ve gone over the basic components and functionalities.
Continuous measuring is a necessary aspect of the procedure. Unfortunately, the procedure cannot be carried out successfully without it.
When you think about analytics, you probably think of a big chart or a lot of statistics, but you’ll need a far more creative and efficient approach here. Heatmaps are a good way to do this.
Heatmap analysis is a method for determining how effective a website is. You may use heatmaps to see how your visitors interact with your website, which subpages they visit, and which buttons they click.
Warm colors indicate high-performing areas of your website, whereas cold colors indicate low-performing elements. If you want to optimize your conversion funnel, you’ll need this information.
But, because you’re probably curious about how heatmap tools may be used in the optimization process, let’s get right in.
Upper funnel part
You must reach three elements at the top of the funnel:
- A structure that is visible
- Content of high quality
- Personal information
Let’s get this party started. You must offer your website a clear structure in order for your visitors to spend more time on it and not depart after a few seconds.
We suggest that you examine the most popular portions of your website with heatmaps and then put each of the key subpages accordingly. This is significant because you may post them in a location where your visitors will be likely to locate them.
Also, keep in mind that these visitors will most likely arrive at your landing page first. You must only list subpages that are relevant to the upper funnel group.
Using heatmaps to discover these might also be a useful approach to do so since the analysis will reveal which pages you visit frequently. You can rely on this information.
You should disclose as much information about yourself as possible at this point of the conversion funnel. You should be able to tell who you are, what your aim is, and what you’re dealing with right away on the landing page.
By doing so, you establish trust and assist your visitors in becoming prospective clients from the start. But where should you store this data?
Don’t worry, a heatmap will tell you all you need to know.
When it comes to optimizing your upper funnel, one last thing to think about is displaying high-quality content. Based on the facts you provide, visitors may figure out what you’re doing and how you evaluate your items. But how can they be sure it’s true?
Share some blog post data about you and your items on your landing page to give your visitors the impression that you’re speaking the truth.
If you don’t want this to happen, create a subpage on your blog where your readers may find these articles.
Feel free to utilize a heatmap to assist you to put this as well, since this will allow you to place your blog’s subpage in the best possible location.
As you can see, improving the top of your conversion funnel is a quite involved procedure. However, don’t panic you’ve already completed the most difficult of the three sections.
Middle funnel part
The deeper down the conversion funnel you go, the more specialized work you’ll have to undertake. This implies that while the number of jobs you have will reduce, you will have to cope with an increasing number of them.
Visitors have already turned into prospective consumers by the time they reach the middle stage. In this step, the most crucial thing is to persuade them to buy your goods.
In this instance, there are two little things you should keep in mind:
- Your products’ location
- Building a foundation of trust
Use heatmap tools to make some basic analysis before you cut into it.
Determine which of your items is the most popular. Put these items or services near the top of your subpage so that potential purchasers don’t have to scroll too far to locate them.
We have the items and have been provided everything we need to purchase them. What may the issue be?
The danger. When making purchases, keep in mind that this influence is constantly there.
Make a scroll heatmap analysis of your website and put customer reviews depending on the measurement to remove this.
The scroll heatmap displays how long customers spend scrolling across your website, allowing you to strategically post reviews. This will lower the perceived risk and make it easier for your goods to be added to the cart.
Lower funnel part
Your product is already in the cart at the bottom of the funnel. The only thing that separates a potential buyer from being a buyer is this one stage. What kind of issue might arise?
If a potential buyer refuses to buy or cannot pay, the response is straightforward.
In the study of the cart, the use of heatmap tools is quite important. Examine how your customers utilize your cart, where they frequently click, and what they do.
Based on this data, you can set the payment CTA in the appropriate location and provide a clear, safe structure to your cart. If you want your conversion funnel to be well-optimized, these criteria are critical.
Also, make sure to include cash-on-delivery, as some consumers are still wary of online payment methods.
Heatmap tools are used throughout the conversion funnel optimization process, as you can see. Do not begin the procedure in any way unless you have this tool.
Other measuring methods, such as session replays, can, of course, be used in addition to a heatmap. This can also improve process efficiency.
We hope we can help.
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