Company Websites: The Preferred Route to Access New Product Information
Posted by rcisneros in Advertising Effectiveness, brand equity, Customer Satisfaction, Energy Use, Oil Fields, Strong brands, Uncategorized on August 10th, 2010
| According to the findings detailed in the 2009 The Edge Report by Saurage Research and The Oil and Gas Journal, more than half of oilfield professionals first encounter information about new service line products and services by browsing the company website. Because of this fact, it is imperative that companies do not squander the opportunity to effectively inform potential customers of new product offerings through the online touchpoint.
In fact, when seeking information about new products or technologies, energy industry professionals are at least twice more likely to access the information through the corporate website than they are to access it through a company sales representative, an on-site demonstration from a technical expert, an association website, or through information sent directly from the company.
It is quite interesting to note that 70 percent of those who influence the selection of a production services provider, like GE Oil and Gas or Halliburton, first access information about new products or technology from corporate websites. Even more interesting is the fact that more than half of any specialty tested utilized corporate websites as the initial route to new information. Through years of research on website effectiveness, Saurage Research has found that the most effective corporate websites have content that is:
Suffice it to say that because a corporate website is frequently the initial touchpoint between a company and a potential customer, web content and functionality should be tested to ensure an optimal user experience. Corporate websites are not only used, they are valued. Oil and gas professionals rate company websites nearly as valuable as an on-site demonstration from a technical expert, and far more valuable than information provided by a company sales representative. This finding is in no way intended to devalue the role of a company sale representative, but does illustrate the extreme importance in creating an online presence that provides an optimal user experience while staying true to a company’s brand. More than 9 of 10 oil and gas industry professionals indicate that the company website is at least somewhat valuable as a tool to access information regarding new products and technology. Among those oil and gas professionals who influence the selection of a production services provider, over half indicate that a company website is very valuable in accessing information about new products and technology. With no less than 4 of 10 in any of the specialties tested indicating that a company website is a very valuable tool in accessing information on new products or technologies, it is critical to ensure the user experiences an easy-to-navigate site that contains content that is relevant and valid. Conclusion When seeking information on new products and technology, professionals in the oil and gas industry are turning to the company website. As our research findings indicate, the company website is valued nearly as highly as having an industry expert demonstrate new products and technologies. A well informed online strategy is a key component in a company’s overall corporate and brand strategy. The company website serves as a powerful customer touchpoint that should regarded as a strategically important tool in customer acquisition and retention. The entire study, The Edge Report – Tradeshow and Advertising Effectiveness may be purchased by contacting Richard Cisneros, Vice President at Saurage Research, Inc. at 800-828-2943. About Saurage Research We are a full-service marketing research firm that provides the answers that drive successful business strategies. We have worked with corporations and brand strategy firms in gathering accurate, usable data – packaged so that so that it is easily understood and immediately actionable. Since 1987 we have worked closely with companies in many industries. Our research has been used to create (or redirect) national advertising campaigns, bring faltering businesses into the black, optimize new or existing product configuration, define go-to-market strategies, and turn unconvincing promotional programs into success stories. We know our business and understand your needs. http://saurageresearch.com/contact/ |
Net Promoter® Scores Have a Shelf Life!
Posted by rcisneros in brand equity, Customer Satisfaction, Oil Fields, Strong brands, Uncategorized on February 17th, 2010
We all know the old adage out of sight, out of mind. Well in business, in particularly within the Energy Industry, that statement is absolutely true. Rest assured, the counter argument, absence makes the heart grow fonder, does not apply.
“Likely to Recommend” Has a Shelf Life
Saurage Research and Pennwell Publishing’s Oil and Gas Journal Online Research Center measured the likelihood to recommend an oilfield services provider in The Edge syndicated reports. It was uncovered that as the time between a supplier’s interaction with a customer increases, the likelihood that the customer will recommend the products and services of that supplier decreases.
Based on the study of over 500 oil and gas industry professionals who purchase or influence the purchase of goods and services from production services, well testing, drill bits, and pressure pumping services, net promoter scores decreased as the time since the last purchase from a supplier increased.
The following information is based on the data received in the 2009 Saurage Research/Pennwell Publishing’s The Edge Report:
Net Promoter Segments by Customer Type
Net Promoter Scores by Segment
Saurage Research obtains the Net Promoter scores by asking respondents a single question that utilizes a 0 to 10 rating scale. This standard question is: “How likely is it that you would recommend [company] as a provider of [service]“. Based on the respondent’s responses, they are segmented into one of three groups:
- Promoters : Respondents who provided a rating of 9 or 10
- Passives: Respondents who provided a rating of 7 or 8
- Detractors: Respondents who provided a rating of 0 to 6
Net Promoter is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
The Edge reports provide the Net Promoter Scores for oilfield services companies such as Schlumberger, Halliburton, BJ Services, Baker Hughes, and Weatherford.
For additional insights regarding Net Promoter®, The Edge Reports, or any marketing research needs, please contact me at rcisneros@saurageresearch.com.
Delivering on Brand Promise
Posted by rcisneros in brand equity, Customer Satisfaction, Energy Sources, Energy Use, Oil Fields, Strong brands, Value on January 8th, 2010
Companies have the responsibility to deliver on the promise they make to their customers. Often it is the case that organizations only measure the brand equity components such as customer satisfaction or awareness. However, these brand equity scores only show the outcomes associated with much deeper issues regarding an organizations ability, or inability to deliver on what it promises to its customers, employees, and other stakeholders.
In other words, to gain understanding into what is really driving brand satisfaction, reputation, perceived value or awareness, an organization should gain insight and understanding into the brand promise areas that impact brand equity. Armed with this information, a fully-integrated management team can devise a well-informed strategy to implement change and foster growth.
A company’s brand promise typically centers around 5 key areas: Mission, Vision & Strategy, Communication, Operations & Logistics, Products & Services, and Value & Behaviors. These brand promise areas have a strong correlation to a brand’s equity.
Saurage's Brand Promise Model
Mission, Vision & Strategy
Schlumberger has established itself as the leading oilfield services provider, that is trusted to deliver superior results and improved E&P performance for oil and gas companies around the world. By continually keeping sight of its promise to deliver superior results to its customers, Schlumberger enjoys market leadership in many of its oilfield service product and service offerings.
Unlike Schlumberger, which competes in many specialities, other companies have strategies that are centered in a single area of specialization. Houston, Texas based Seahawk Drilling has a strategy to improve the profitability, efficiency and reputation of its core business: providing jackup drilling services to the exploration and production industry in the Gulf of Mexico. By focusing on jackup rigs, Seahawk Drilling can effectively fine tune its operations and growth potential by delivering outstanding value in a single area of interest.
Furthermore, having technical experts in the area of interest can lead to being a preferred supplier for the most challenging jobs. This leads to trust, significant market share, and customer loyalty.
Mission, Vision & Strategy is a critical component to the brand promise model, because, unlike most brand equity measurements, it allows success to be measured internally. In other words, how a person describes one company, should not be how they describe every company in that category. The perception of a brand should be unique, and should match closely to that brand’s strategy. If everybody is the worldwide leader, then nobody is.
Communication
Are you listening to your customers?
According to energy studies conducted by Saurage Research and Pennwell Publishing’s Oil and Gas Journal Research, there is a positive correlation between overall satisfaction and companies that listen to their customers and understand their needs. In a production optimization industry, such as energy, listening to and understanding customer needs can lead to solutions that were previously unconsidered. Furthermore, constructive communication fosters trust. Trusted companies are strong companies.
Additionally, using advanced survey techniques, such as conjoint analysis or maximum difference scaling, organizations can optimize their product and service offerings based on the voice of the customer. Gaining deep insight into customer issues will also allow companies to avoid creating a solution to a symptom rather than solving a deep-seated problem.
The ability to work with customers as problems arise, being customer friendly, and having a professional and knowledgeable sales staff are important communication areas of focus.
Operations and Logistics
A customer cannot insist on a provider, if that provider is not available or has no presence in the market. For global oilfield service companies like Halliburton, Weatherford, or Baker Hughes, having an international presence provides a feeling of trust. Additionally it delivers on the brand promise by providing support where ever a company may have a need.
Does your company operate where your services are needed?
Especially in the oil and gas arena, the ability to consistently deliver high-quality service is an important attribute that impacts the reputation of an organization. Consistently delivering on this brand promise increases the likelihood of repeat business and the chances that customers will promote a brand rather than detract from it.
Products and Services
Companies promise solutions, not products because customers seek solutions. A key brand equity component that is often measured is differentiation, an area of key differentiation can lie in the products and services that companies offer. How well a company delivers on its promise to provide reliable products, high-quality products, or its ability to offer a wide variety of solutions, may very well set it apart from the competitive set and build the equity in its brand.
Hughes Christensen could not have established itself as a leader in oil field drill bits had it continued to only provide the two-cone drill bit that it launched in 1909. Because of the needs associated with the different drilling formations, such as soft formations like unconsolidated sands or clays, or medium formations like calcites or shales, customers were seeking solutions for their drilling needs. Since then, Hughes Christensen has developed three-cone drill bits and PDC bits.
Values and Behaviors
Customers don’t buy based on price alone, they buy based on value. As much as companies like to differentiate themselves from one another, customers can be segmented based on how they define value. Having an international presence may be of value to a major oil company like Shell, ConocoPhillips, or Chevron but of very little value to an independent like Cabot Oil & Gas or Spindletop Oil & Gas.
However one thing is certain, every customer sees value in attributes such as having operations that are proven in formations relevant to their operations, being a good value for the money, or helping companies achieve significant gains in productivity. Organizations that consistently deliver on the values of promise, enjoy loyal customers.
Summary
Every company has an obligation on the promise that it makes to its customers. Without continually delivering on its promise, a company cannot expect to grow or remain stable. While many organizations and brand strategy firms measure brand equity, the underlying factors that result in brand equity scores often go unmeasured. In order to affect change and improvement in brand equity, an organization should also gather information into the areas that comprise the brand promise.
About Saurage Research
Saurage Research is a full-service marketing research firm. Which means we not only provide the answers — accurate, usable data — but we package it in a way that you can understand it. And act on it.
We’ve been around since 1987, providing relevant revelations to grateful clients in many industries. We’ve helped advertising agencies redirect foundering campaigns. We’ve helped business-to-business clients define and reach new customers. And we’ve helped energy companies tap into new markets and have given healthcare companies a shot in the arm.
Our expertise includes:
- Brand Strategy Development
- Brand Positioning and Differentiation
- Competitive Analyses
- Segmentation Analysis
- Adapting initiatives to time frames
- Determination of Value Drivers
- Exploration of communication channels
- Formulating Key Messaging
- Brand Development
Building a Trusted Brand
Posted by rcisneros in brand equity, Customer Satisfaction, Energy Sources, Energy Use, Oil Fields, Strong brands, Trade shows, Uncategorized, Value on September 24th, 2009
What is a Brand?
Is the brand a logo, a mission, an identity, the name of a company? Well, that is part of it. However, the logo, the mission, the identity, the name of the company all represent a promise.
A brand is a promise to consistently deliver an exceptional and valuable experience to employees and consumers. When you think of the brand Mercedes-Benz what comes to mind? Luxury? Quality? Expensive? State-of-the art? What is te promise of that brand? What, as a consumer, would you expect in terms of product quality, service, and value from buying a Mercedes-Benz product? And finally, why are those expectations in place? Is it because so many people can afford and have experienced driving a Mercedes-Benz? No, the image and the expectations are based on Mercedes-Benz consistently delivering on its brand’s promise to the consumer.
In the oil and gas industry, growth and sustainability can be tied directly to the equity in a company’s brand. In other words, how well one pressure pumping service delivers on its promise to provide its customers with the most advanced products, services, and technology in the business may give it a competitive advantage over another. Granted players in this arena, like BJ Services, Key Energy, Halliburton, Schlumberger, and Weatherford may all have similar promises in this specialty, but who delivers on the promise the best is the one who enjoys market leadership, sustainability, growth, and the ability to charge a premium price for its services.
What is Brand Equity?
Brand equity is the amount of trust that stakeholders have in a company’s promise. It is a matter of trust. Trusted brands are strong brands.
There are four major components that comprise brand equity:
Awareness
Have you ever purchased a product that you knew absolutely nothing about? Have you ever insisted on a product or service without even knowing the name of the provider? How many times have you been surprised to learn that a particular company offered products and/or services in an area that you were unaware of. I am an avid tennis player and dabble in trumpet playing, while most know the brand name Yamaha for its motorsports or home electronics, I am most familiar with the brand as a maker of tennis rackets (I am not certain it still produces rackets) and musical instruments. However, someone new to music may not even be aware that Yamaha competes in this space.
The same can be said for oilfied service companies. Many oilfield service companies have an integrated approach and offer a wide array of products and services. Because of this, many may not be aware of ALL of the offerings of a company. Are just as many people aware that Schlumbergeroffers subsea solutions as are aware that Cameron does? What is most critical to point out is that a consumer cannot insist on a brand if he is not aware that the brand exists or operates in that space.
Accessibility
Consumers are not able to buy products/services that are not available at the time they are needed. When drilling a well, how long do you think a company like Atlas Copco Secoroc would remain in business if its drill bits were not available when customers needed them? Production and exploration will not cease, customers will just go to other suppliers to get the products and services that they need. Rain checks are unacceptable.
Accessibilty is very important because it builds brand equity by satisfying a brand’s promise to efficiently and consistently provide not only high-quality products, but also provide them at the time that they are required. Additionally, the promise of accessibility goes beyond the promise of having products available, but also having sales people, technical experts, billing, technical information, service representatives, and an easy to navigate website available to customers or potential customers.
Differentiation
The most important thing a brand can deliver is differentiation. However, the differentiation must be significant and of value. In markets where products act as commodities, relevent differentiation can be attained from non-product characteristics such as customer service or technical experts who stand head and shoulders above the rest.
Marketers in the oil and gas industry often struggle in an attempt to differentiate their product from products that are being marketed by competitors. However, unique or different are not necessarily good terms in the energy arena in terms of products. As Jeff Thull, president and CEO of Prime Resource Group indicates in his piece entitled Product Differentiation in a B2B Market:
Successful differentiation effectively makes the consumer consider a new way to solve their problem. It is the experience with the brand and its products that set it apart from the competitive set.
Value
The product and/or service that a company offers must be worth the price to acquire it. Those whose products/services continually meet or exceed the promise of the brand, are able to command a price premium for their products/services. Furthermore, it is typically the non-price characteristics of a product or service that enables a company to charge more.
This doesn’t necessarily mean that each and every company competing in a space necessarily wants to be the luxury price provider. For example, among those competing in electric submersible pumping systems (ESPs), Schlumberger, Weatherford, and Centrilift all compete. However, not all three companies provide the exact same solutions nor can they each command premium pricing to acquire their products or services.
Because the purchase decision process in the oil and gas industry often requires the input of several stakeholders, the value proposition must be attractive to at least three different levels of decision maker. Communications efforts must consider multiple points of view as to what constitutes value.
- C-level Executives – How is this product going to help my company be more successful and make more money?
- Engineering – How is this product/service going to fit my process and what advantages does it bring over competing technologies?
- End-users – How easy is this going to be to use and how is it going to help me do my job better and more effectively/efficiently?
Summary
Strong brands are trusted brands. Companies that continually monitor their brands performance against the attributes and needs that customer value most, build a strong and trusted brand. A consistent and satisfactory customer experience leads to brand trust and the willingness to recommend the brand. This leads to strong brand loyalty and continued growth and security.
If We Build It, They Will Come. NOT!
Posted by rcisneros in brand equity, Energy Sources, Oil Fields, Strong brands, Uncategorized on September 24th, 2009
Oil and Gas companies continually face the daunting tasks of overcoming the slow rate of adoption when bringing new products or technologies to the oilfield. It is truly an environment of fast-followers. As mentioned on the Schlumberger website:
Understanding the barriers to adoption and the facilitators to help overcome these obstacles are critical to getting a product out of development and into use. However, before bringing a product to market, a company must first conduct sound marketing research in order to understand if the product will ever have a chance of being accepted and utilized. Harvey MacKay, author of the New York Times bestsellers Swim With The Sharks Without Being Eaten Alive and Beware The Naked Man Who Offers You His Shirt says it best:
“Failures don’t plan to fail; they fail to plan.”
How many times have we as professionals had that “gut feeling” or said, “I just know it will work” only to have ideas squashed by one of the first people with whom the idea is shared? It happens quite frequently.
The problem is not that new products often fail to bring improvements to what is already available. The problem lies in the fact that, in order to use new products or technology, the customer MUST change his/her behavior. In other words, you have to convince them of a new way to solve an old problem.
Understanding the Needs
Often times new products fail because they fall short of satisfying a true need in the industry. This happens due to a single reason or a combination of several:
- Product does not really satisfy a need
- Satisfies the need of such a niche market that the potential sales do not satisfy the costs of production
- Product offers a “bandage” and not a solution
- The product is not optimized to meet all the needs of the end user
In other words, the idea of “let’s build it and they will come” is a sure-fire way to ensure that your new product fails. The first step in developing a new product is to test the concept or the idea with industry experts. Then, provide the customer with a convincing NEW ALTERNATIVE to solving a problem.
Unfortunately, many companies rely on only their sales force to get an understanding of customer needs. This is good customer service, but more often than not, poor research. Marketing research companies who specialize in the energy industry, like Saurage Research, will conduct face-to-face interviews with those whose input is highly valued. This third party perspective allows for the free flow of ideas, an in-depth discussion about the true nature of the problem, and the beginning of understanding new ways to solve problems.
Additionally, new product concepts can be tested and an evaluation of its strengths, weaknesses, competitive products, likely distribution, product features, probable purchasers, initial thoughts of costs, etc. can be tested. Often this type of research results in eye-opening views and perspectives that provide the developer with new uses or applications of his or her idea. However, findings can inform that the product will likely fail due to any number of obstacles that had not yet been realized.
A hole in the wall may be patched with putty, but have we really solved the problem?
Another challenge in product development is understanding the problem that is to be solved. Many “patches” have been created for a vast number of problems, but what is the real need. Would higher quality cementing techniques or more elaborate MWD systems have prevented this ongoing problem from occurring the first place? Again, talking with customers, understanding their needs, and most importantly, understanding the root causes of problems can cut product development costs if an upgrade in complimentary products is really all that is needed. In other words, build a better wall and there will be no holes.
What is ABSOLUTELY NECESSARY and what would be nice to have?
Understanding that every bell and whistle is not necessary for new products is imperative. Survey research, and especially the use of conjoint analysis, an advanced data collection technique is a great tool to understand, if you find the right audience. Survey research makes it easier to find:
- The product features that will get you the most interest and purchase likelihood of a product
- The combination of features that will provide the best bundling of product features
- The optimal price that buyers would expect to pay for the product (given a specific scenario to which it could be applied)
In other words, if 95% of the market indicates that a stimulation monitoring service that provides visualization to 5,500 feet meets all of their needs, why go through the expense of creating a service that provides visualization to 7,000 ft? Though a select few of potential customers might need this depth, the market potential, or lack thereof, does not justify the additional costs associated with product development.
The Risk of Failure
Finally, oil and gas companies have been successfully drilling and producing wells for decades. Proven technology has stood the test of time and, though not as efficient as one would hope, gets the job done. The risk of losing thousands, even millions of dollars, due to failed equipment and unproven technologyis great. Therefore, even new products must be validated in field trials by respectable companies before they stand a chance of wide utilization in the oilfield.
David Reid, VP E&P Business and Technology Global Account at Houston-based National Oilwell Varco (NOV) writes:
Getting new technology out of the design room and into the oilfield is not impossible. But understanding the needs, providing an effective alternative solution and a new way of thinking is absolutely necessary. In order to successfully get new products accepted into the oilfield, developers must conduct sound research to understand the problem and its roots, the current solutions, if any, that are available, and the overall perceived value of a solution. Understanding these issues can inform a winning marketing strategy.
It’s Not Just a Swap Meet
Posted by rcisneros in Customer Satisfaction, Energy Sources, Energy Use, Oil Fields, Trade shows on September 24th, 2009
Can you imagine what it would be like if sales representatives from major Oil and Gas drill bits suppliers were stuck in the same room pitching their products at the same time? WOW! Imagine the questions that would be asked, imagine how much technical information Smith Bits would exchange, or the amount of attention that Hughes Christensen would try to provide potential buyers. Suppliers would make sure to send their best sales representatives–along with the best technical experts–to make sure no stone is left unturned. RIGHT?
Trade shows like the Offshore Technology Conference or Renewable Energy World Conference are a great forum for companies to highlight their new products. It’s one of the few opportunities for oilfield service companies to have potential clients willingly come to them.
Ellen Bechert from the International Association of Assembly Managers indicates:
For the first time, companies are spending a greater percentage of their marketing dollars on face-to-face event marketing as opposed to print or online advertising or other forms of marketing, a recent study conducted by American Business Media reports. The fact is, face-to-face marketing experiences, such as exhibiting at trade shows, can provide unique advantages for your company if you take full advantage of the experience. To do this, consider both the strategic goals you hope to achieve by exhibiting, and address the tactical logistics involved. Today’s exhibiting companies are finding they get more out of event participation when they consider it to be part of a marketing cycle before, during and after the actual event, instead of considering the show an isolated three or four day effort.
On a recent blogpost by Skyline Exhibits, some tradeshows are experiencing double-digit drops in attendance. Pre-show promotions are very important activities that draw attendees to the booth. I don’t want to regurgitate Skyline’s blog, but drawing interest to the booth is critical to lead generation.
Additionally, exhibitors should include tradeshows in their strategic planning process. Setting objectives for your exhibiting programs ensures that you are aligning the short term (tactics) with the long range (strategies). Not every trade show offers the same audience, so the strategic goals of each tradeshow should not be identical. The communication at each show should change according to the composition of the attendees. I know it sounds simple, but conducting pre-show research will allow the exhibitor to highlight the products and/or services that meet the audience’s interests or needs.
Even though I find both tradeshows fascinating, I would not expect for Agilent Technologies to highlight the same technology or have identical communications at ATC-SPE and at Pittcon. However, I would expect Agilent Technologies to have a presence at both events.
As will be illustrated in the upcoming study from Saurage Research in its partnership with PennWell Publishing, it is imperative that exhibitors have technical experts on hand to answer any questions that potential buyers may have, clearly demonstrate the technology that is being promoted, have collateral that is relevant to the audience, and most importantly FOLLOW UP ON THE LEADS GENERATED AT THE TRADESHOW! The value of exhibiting at tradeshows may never be realized if exhibitors do not follow up on leads.