2015 CI Benchmarking Study | Key Findings

Key Findings from the BCG, Yale CCI, and Cambiar 2015 Consumer Insights Benchmarking Study Key findings 0

The research highlighted the need for ROI of insights measurement Senior executives cited Heads of insights and 'Measurable ROIs' All rights reserved. increased need for a practitioners cited need cited among top more strategic mindset for clear objectives and necessary changes to CI  Emphasis of research in CI open communication today is on trends in ROI measurement and esearch Business Network. tactics for measuring The Global R eport The Boston Consulting Group, Inc. and 1 BCG GRBN - ROI of Insight 2017 Study RCopyright © 2017 by

Architecting a world-class Insights organization requires executive, cross-functional commitment/engagement All rights reserved. esearch Business Network. The Global R Vision and pace Seat-at-the-table Functional talent Ways of working Self-determination Impact and truth and leadership blueprint with the Line culture eport The Boston Consulting Group, Inc. and 7 2 BCG GRBN - ROI of Insight 2017 Study RCopyright © 2017 by

Architecting a world-class Insights organization requires executive, cross- functional commitment/engagement (II) All rights reserved. Vision Seat-at-the-table Functional Ways of working Impact and and pace and leadership talent blueprint with the Line Self-determination truth culture Our 2009 vision holds, CI is still typically CI functional Still significant room Significant room for Ambitious culture and is even more reporting too deep in blueprint: forward- for integration with self-determination and important now the organization for looking, strategic, “line” decisions, accountability of Truth telling, positive, esearch Business Network. than ever the investment innovative, proactive, beyond commercial the function apolitical, client- analytic services mentality Pace of transformation Blueprint for CI head: Systematic feedback, Need for aligned The Global R has been glacial, not strategic, General Functional value proof, and incentives on overall Perform-or-out All rights reserved. going far nor Manager, wearing specialization metrics required business/brand advancement fast enough enterprise hat achieved through mix, performance expectations; opposite use of partners Function “earn-to- of academic eport There is a CEO and and advisors play” supported by Eventually, even more or tenured executive committee top-down executive of the capability/ Value creation leadership negligence Hire/develop skills directive/expectation budget in control of orientation: that are translating the function customers, business The Boston Consulting Group, Inc. The Boston Consulting Group, Inc. and insights into action Need to question “line” partners, and and ongoing advisory outsourcing model, shareholders support of business particularly in CPG “line” partners 8 3 20170717 ROI of Insight_draft_v23.pptxBCG GRBN - ROI of Insight 2017 Study RCopyright © 2017 by Copyright © 2017 by

Limited budget, insufficient resources, and lack of clear ROI most limit experimentation with CI innovation (%) Barriers to experimenting with innovation in CI and big data/customer analytics 51 41 All rights reserved. 40 35 34 34 32 esearch Business Network. bal R The Glo Limited budget Lack sufficient Unproven ROI Short-term focus Competing Cost-containment Cost of individual staff priorities culture studies cost- prohibitive rt epo R Resourcing Proof of concept Lack of commitment he Boston Consulting Group, Inc. and T “Biggest barriers to innovation are resources, both time and money. A lot of times there’ll be [a need for] 1 an innovation project but it can't find a home.” 1. National Sales Manager, Automotive company Source: BCG, Yale CCI, and Cambiar 2015 Consumer Insights Benchmarking Study 9 4 BCG GRBN - ROI of Insight 2017 Study Copyright © 2017 by

• Belief CI provides high ROI significantly higher in 2015 than 2008-09, though only ~30% report attempting to measure CI impact • Respondents whose companies attempt to measure ROI have higher perception of return and higher overall satisfaction All rights reserved. Selected Insights: • CI and the Line agree there needs to be more hiring into and skill development on translating insights into business actions Impact and Truth and ongoing support of execution with relevant, timely insights esearch Business Network. Culture • Best-in-class CI leaders are data-driven, insightful, flexible The Global R visionaries, with strong strategic and business orientation eport • Stage 3 Strategic Insight Partners CI groups seen as strategists and, to a lesser extent, General Managers The Boston Consulting Group, Inc. and • “The most successful insights people are definitely those who understand the business” 10 5 BCG GRBN - ROI of Insight 2017 Study RCopyright © 2017 by

Belief CI provides high ROI significantly higher today However, only ~30% report measuring CI impact, with significant room to improve While only ~30% measuring 2/3 believe CI provides a high ROI … and respondents state mixed impact of CI1 2 3 … (significantly higher than 2008–09) … satisfaction with ROI All rights reserved. Respondents (%) Respondents (%) Respondents (%) +25% 68 61 20 esearch Business Network. 43 bal R 31 The Glo We measure the impact 2009 2015 Satisfaction with ROI on company’s CI rt epo of our CI research CI provides a high ROI R Strongly Agree Strongly Agree Very Somewhat Agree agree satisfied satisfied he Boston Consulting Group, Inc. and T 1 “We would like to measure ROI, but we struggle with how.” 1. CMO, CPG company Source: BCG, Yale CCI, and Cambiar 2015 Consumer Insights Benchmarking Study 11 6 BCG GRBN - ROI of Insight 2017 Study Copyright © 2017 by

Respondents whose companies attempt to measure ROI have higher perception of return & satisfaction, likely due to up front alignment on resource allocation Respondents whose companies do not measure CI impact have lower perception of return … … and lower intense satisfaction Respondents (%) Respondents (%) All rights reserved. 80 83 68 61 30 36 52 61 esearch Business Network. bal R The Glo rt epo Do not measure Do measure Do not measure Do measure R CI impact CI impact CI impact CI impact CI provides a high ROI Satisfaction with ROI on company’s CI he Boston Consulting Group, Inc. and T Strongly agree Agree Very satisfied Satisfied Note: Do measure CI impact respondents answered “strongly agree” or “agree” to the question “we measure the impact of our consumer insight”. Do not measure CI impact respondents answered “neutral,” “disagree,” “strongly disagree,” or “doesn’t apply” Source: BCG, Yale CCI, and Cambiar 2015 Consumer Insights Benchmarking Study 12 7 BCG GRBN - ROI of Insight 2017 Study Copyright © 2017 by