Finance & Insurance: Typical Engagements
Product Development/Hispanic Market Opportunity: Financial Services
A major banking institution wanted to identify the best product offering for the Hispanic market. Specifically, they needed to determine product preferences and pricing structures that were most appealing to this growing segment. ConStat’s goals were to determine attractive product attributes and understood price sensitivity, as well as the relative influence of each.
To accomplish this, ConStat developed an interactive model or decision support simulator (DSS) that determined the relative share of choice for a variety of product configurations. The results from the DSS were ultimately used to determine the features and an optimal pricing strategy for a new product.
For this study ConStat used discrete choice analysis to identify the best service package (including pricing) that yielded the greatest market opportunity and employed visual aids to increase the respondent’s ability to fully evaluate the choices. A phone-mail data collection design offered the most efficient means to collect the required information, execute the analysis and maintain a projectable sample.
Loyalty Modeling and Tracking: Health Insurance
ConStat conducted a quarterly telephone study among members of our client’s health care plan as well as members of competitive health care company's plans. The study’s overall objective was to support customer relationship management and loyalty efforts. The information collected from this study was used to develop member profiles and to prioritize problem areas so that strategies for improvement could be targeted most effectively.
ConStat created the study design and questionnaire design, and performed sample management, data collection, tabulations and analysis. A full report including a loyalty segmentation was delivered each quarter.
Market Opportunity Study: Home Equity Product
A major banking and financial institution wanted to evaluate consumer interest in a potential new product associated with home equity lines of credit. ConStat conducted online interviews among consumers who qualified as potential prospects for the new product. We evaluated two alternative designs using a monadic concept test, with each respondent evaluating only one of the two concepts being tested. Respondents also reacted to a list of optional features and potential concerns associated with the concept.
Using the results, the client was able to evaluate overall market opportunity and determine which of the concepts was most appealing to potential consumers. Additionally, the results also let them determine which features consumers felt were essential, those that would enhance interest, and those that were less important. Finally, the results also helped the client develop messaging for the new product that would address potential concerns related to a home equity line of credit.
Small Business Segmentation: Retail Financial Software
A leading developer of financial software wanted to assess the opportunity for introducing its brand of retail transaction software into the small business marketplace. ConStat conducted an outcome-based segmentation of the marketplace to determine the size and targeting characteristics of the segments most interested in the application. The technique involved a cluster analysis of highly sought outcomes to identify market segments. ConStat also tested a new product concept and compared it across segments.
Study results provided the client with targeting, feature development and pricing guidance for its market entry, as well as expectations for sales goals.