Smart Learnings from Focus Group Research​

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Category: B2C

Type: Market Research 

Channel: Focus Groups (four cities)

Industry: Technology

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Challenge:

 

In 2008, Verizon’s customer base was lagging in adoption of smartphones compared to that of the other three major carriers: AT&T, T-Mobile and Sprint. Verizon wanted to gain some insights as to why. 

 

Solution:

 

Working with our research partner Fieldwork, we set up a qualitative focus group study in each of Verizon’s four regions (West: Irvine, CA, Midwest: Minneapolis, MN, South: Atlanta, GA and Northeast: Fort Lee, NJ). Each region consisted of two different groups which were representative of Verizon’s “mass segment” demographics (25-65). This segment skewed slightly older and more affluent than with the competitors. Participants were asked to bring their phone whether it was a basic phone, an advanced phone or a smartphone.

 

During the 90-minute focus group study, objectives were:

·      Define what motivates a smartphone purchase

·      Gather feedback on 6 value proposition statements

·      Gather feedback on 6 creative executions

 

Result:

 

Overall, most of the focus group participants had a difficult time describing a smartphone and why they could benefit from owning one. Insights showed that Verizon customers needed a more experiential environment to understand the benefits of owning a smartphone. This could be better accomplished through in-store and online demonstrations as well as access to more educational video. Furthermore, smartphone owners needed access to more educational opportunities so they could better use the full benefit of their devices (Verizon Wireless Workshops resulted from this research and were launched in 2009 across all 2000+ Verizon retail locations).

 

• The majority of participants did not own a smartphone and could not describe the difference between a smartphone (Android OS or iOS) and an advanced basic phone (one that had a proprietary operating system with pre-loaded fixed apps and no standard browser).

 

• Most participants who had an advanced basic phone thought it was synonymous with a smartphone.

 

• Participants who had a basic phone or an advanced basic phone had difficulty explaining the benefit of owning a smartphone.

 

• Many of the participants with a smartphone were taught to use its applications by younger family members or peers. These participants were therefore highly influenced by them.

 

• “Features” and “Social Connectivity” (i.e., Facebook, etc.) were the two leading reasons to get a smartphone

 

• “Status” and “Feeling Left Behind” were least important reasons to get a smartphone

 

• “Pragmatic usage” and “equipment-centric” creative resonated best with the groups while “lifestyle” creative resonated least.

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• In terms of executions, participants gravitated towards the value-centric measure with the $50 gift card

 

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