In this episode of the Consumer Insights Podcast, Thor is joined by Simone Ballarini, Head of Consumer Insight & Business Development at Lavazza.

True consumer insights are rare. To uncover them, you need a combination of logic, intuition, and expertise, as well as the determination to separate bias from truth. Leveraging multiple techniques and new technologies can help you triangulate to true insights that will lead to better decisions and propel the business forward.

You can access all episodes of the Consumer Insights Podcast on Apple, Spotify, or Spreaker. Below, you'll find a lightly edited transcript of this episode.

Thor Olof Philogène:

Hello everyone and welcome to the Consumer Insights Podcast. Today, I'm excited to have an incredible insights leader joining me for what I know will be an engaging conversation. I'm thrilled to introduce today's guest Simone Ballarini, Head of Consumer Insights and Business Development at Lavazza, a leading player on the Global Coffee Scene. Prior to heading the insights function at Lavazza, Simone spent several years working with brands like Fiat and Alfa Romeo. Thank you so much for joining me, Simone.

Simone Ballarini :

Ciao Thor, it's really a great pleasure to be hosted by your podcasts.

Introducing Simone

Thor:

And we are very happy to have you on. So, to kick things off, could we take a couple of minutes for you to tell us about yourself, your role, your company, and the journey that led you to where you are today? How did it start?

Simone:

Yeah, let me tell you, my journey. I graduated in economics in Turin in 1997. And shortly after, I began my career in the advertising industry as a strategic planner. During this time, I started dealing for the first time with the consumer insights.

My role was to digest these consumer insights for clients and transform them in a communication strategy for them and for the creative department.

I had the opportunity to work for several leading agencies like BGS D’Arcy, Leo Burnett, and WPP Group. It was amazing because at a certain point I started developing a TV advertising campaign on the agency side and eventually I approved it on the client side because Alfa Romeo invited me to join the automotive industry. Over the 10 years in the automotive industry, I had the opportunity to cover different roles, including product manager, strategic marketing for the Fiat Chrysler Group, and head of consumer insights for the MIA region. In 2015, I made the best professional decision of my life by joining Lavazza and the coffee industry as a global head of consumer insights. For those who are not knowing, Lavazza Group is a family-owned company founded in 1895, starting from Italy, and now has become the third largest group in the global coffee market, according to Euromonitor. This achievement was basically reached by blending, because we are talking about coffee, three ingredients. Product quality, innovation, and the Italian soft touch in terms of a last. Now the family has been enlarged, so part of the Lavazza Group, Carte Noire, a local jewel in France and Benelux, Kicking Horse Coffee in Canada and US, and Mary in Denmark and in the Nordics. On top of that, I'm also a proud father of Guy and Elia, and they're helping me in finding the right life balance. Thank you, kids.

Thor:

It's quite an incredible journey you have there, Simone, those are some very iconic Italian brands that you've worked with and continue working with. And with all that experience in the world of insights, I'm very curious to hear how you would define an insight.

Simone:

You know, as a loyal listener of your podcast, I've heard many valuable definitions of insights. I will give you my point of view on that. For me, an insight is an expected connection between data or facts that highlight a new path for making business decisions. You know, every year companies are accumulating tons of data about consumers and the market. We can think of this data as a sort of large map. However, a large map is not an insight, it's just the playground.

So, discovering insights is like finding a shortcut in the middle of a dense jungle. Try to find the right path towards a business decision.

True consumer insights are really, really rare and can be uncovered through a combination of logic, intuition and expertise. I've heard many times to talk about supposed to be consumer insights, but for me, if a consumer insight not actionable from a business standpoint, it's likely just information about consumer than genuine insight.

Why are consumer and market insights so important for businesses?

Thor:

I love that definition and the analogy to the path in the jungle really resonated with me. But if we build on that from your perspective, why are they so important? Why are these consumer market insights so important? And what does the analysis of those insights allow businesses to do?

Simone:

Insights and data for me are crucial to lead the business conversation because, you know, big organizations are sometimes trapped in a battle of ego. There is a huge company of emotions, gut feelings. So, for me, the companies are partially rational. This means that in taking business decisions, sometimes we are not fully objective.

So being able to leverage consumer insights allow us to put the voice of the consumer at the very center of the conversation and avoid to have the organization trapped in false beliefs.

And let me quote a small but meaningful episode regarding consumer insights. A few years ago, there was a huge debate inside Lavazza around an SKU that was performing not in line with the expectation. This was very strange because the coffee blend was fantastic and the product had a sleek, premium black pack. Everyone in good faith was suggesting to intervene in the product, changing something in the product bundle. Then we ran a test asking consumers to test the product in blind and branded and to assess the look of the pack. And the results were really amazing. The black pack was universally considered very good from an aesthetic point of view. But those who tested it in blind described the coffee as very aromatic with citric and flora notes. While those who have tested it branded, having seen the pack, were complaining about a certain lack of bitterness and intensity. In other words, the dark premium coats were creating expectation for a super intense product that was not the goal of that coffee blend as it was designed by our R&D. After that, we aligned the color of the pack to the taste of the blend and now Lavazza Tierra is one of our best premium blends we've got in the range. In summary, utilizing consumer insights in business enables to break down complex issues in actionable factors and it's like thinking before acting.

How do you combat information overload inside the organization?

Thor:

I think that's such a powerful example how there was this disconnect between the packaging and the experience that people thought they would have of the blend. But when talking about insights, a large part is also what we've heard from many of our guests is that combating information overload inside the organization has been something really important. And that's something we know is important to you. Could you tell us more how you approach it?

Simone:

Yeah, sure. There was a lucky golden time and now it seems to really centuries ago in which consumer insight department has the unique role of gauging and gathering consumer insight information inside the company. Now the scenarios that dramatically change because you know that consumer are leaving their opinion, hints about their behaviors on web forums through their reviews or in their online shopping.

On top of that, you perfectly know that fake news does not belong only to the politics. Also, inside the business there are some information that are simply the fruit of word of mouth, some information that are not properly based on facts, but sometimes are easily available, are for free and start influencing the ideas.

So, for a serious consumer insight department there is, in my humble opinion, a unique possibility to maintain relevance, have the same speed of the world. Moreover, we must be better and be bolder than superficial information. I do not mean simply cutting the time to get results, this is just due-diligence. I strongly believe that relying on solution of knowledge management allow companies to really connect the dots in an easy and fast way, getting the best from reliable data rather than superficial and fake information. And as you can easily guess, this is why we have adopted with enthusiasm Stravito solutions.

Do you have any stories about navigating consumer biases in market research?

Thor:

Thank you for sharing that. You have a lot of experience in exploring consumer biases when responding to market research. Do you have any stories you could share of how you've navigated those dynamics and how it led to a better business outcome?

Simone:

Yes, I have a really funny story.

The first time I realized how powerful the consumer biases were was during an advertising pre-test session.

It was a commercial for Arvavon that was showing the training journey of the Jamaican national bobsleigh team for the Winter Olympics. This spot was using hilarious communication codes. The spot was incredibly funny and during a focus group one man was loudly laughing. However, during the quantitative ex-interview, he claimed that he didn't actually like the spot. Big surprise. You know, because as a wise, serious, small business owner, he felt socially pressured to provide a different answer. In this case, I was lucky. I had the opportunity to see the reaction of this man during the vision of the TVC. But imagine how many quantitative studies done in CAUI are affected by these dynamics. It's simply scary. That's why in Lavazza Group we are complementing traditional research tools with neuroscience instruments. In this way, we are able to record the reaction of a respondent to a certain stimulus before the intervention of the rational part of our mind. And we are applying this approach to both advertising pre-test and product evaluation. This definitely helping us to identify areas where we can improve our product. You perfectly know that the numerous factors influence the consumer perception. By combining claimed answers with detected emotion, we can better understand the pure pleasure derived from a coffee cup and separate it from the impact coming from the brand. Additionally, during a coffee machine product experience, neuroscience enables us to precisely determine which features are strong and which ones need to be fine-tuned. So the combination of claimed answers and inner emotions detection in some way is increasing our understanding of consumer behaviors and guides us in delivering better products and experiences. That is finally our goal.

What advice would you give when considering consumer bias in research?

Thor:

I think that's such a fascinating story, Simone. And I'd like to understand if we double click on that for a few seconds, what advice would you give yourself? Because obviously you're saying what you're telling us is that you, we, as researchers, do need to be mindful of the output and the outcome of some of the studies we commissioned. In this case, you were lucky to be able to have form a strong opinion because you had been part of the entire process. But what advice would you give yourself or others when thinking about this generally, and you mentioned the usage of neuroscience in the case of how you applied, but more generally, what advice would you give?

Simone:

Yeah, my suggestion to the colleagues, every profession that is dealing with the consumer insight is to create every time a mix of techniques, because, you know,

separating the bias from the truth, it's really difficult.

So, my humble suggestion, do not rely only on a unique technique, but put together a lot of observation, data, qualitative and quantitative. I do not believe that a unique technique is the magic weapon to solve every battle.

Thor:

Clear. I think that's fascinating to hear what you've done and really good advice. If we stick to the realm of techniques and technology, how do you see the role of technology and particularly the rapidly evolving tools like AI in the realm of insights work?

Simone:

Technology nowadays has a crucial role in gathering, analyzing and derive meaningful insights from vast amounts of data. Because consumers today are leaving a lot of hints on their behaviors across several touch points, AI-powered algorithms can easily identify unexpected patterns and color relations. However, I want to underline that artificial intelligence is a super powerful tool, but it's a tool that needs the expertise of a consumer insight professional or data scientist. Let me use a metaphor with a provocative question for you. Would you leave a person who is not a surgeon to use a perfect scalpel on your body? I can guess what is your answer.

Thor:

I don't think I need to tell you.

Simone:

Yeah. So by combining the power of artificial intelligence with the expertise of insight professional, organizations can really unlock the full potential of data-driven decision making. So only embracing this tool, we can stay ahead in the insight field.

Thor:

I love that advice. And if we switch gears a little bit from tools to skills, what skills do you think are essential for insights professionals today?

Simone:

Let me start from the basics. Analytical thinking and being really solid on tools and technique are mandatory characteristic for a professional in consumer. But on top of that, talking about attitude, curiosity and generosity are really crucial to stand out. Let me articulate a little bit better about curiosity. Curiosity is a great engine in the consumer insights field because we are constantly looking for the why behind each consumer behaviors and business. So, if you are lacking in curiosity, you cannot reach any consumer insights. Curiosity is also needed to be always updated and eager to explore new research methodology, emerging techniques and industry trends. On top of that, generosity allows to establish solid human relationship within the company and to reinforce personal network. Being open to share information point of views with colleagues reinforces business acumen. I often push my team and myself to invest time with colleagues using coffee breaks as opportunity to build what I call business empathy. In this moment, you can easily learn new things, sharing valuable information with colleagues and train yourself in doing elevator speeches in a comfort zone. Because finally being influential is the ultimate goal for a consumer insight professional. And this requires strong communication skills and personal credibility. You know, companies are complex entities and that alone presenting a PowerPoint presentation cannot fully drive decision-making. It's crucial to create the proper context and background that make the company hear and digest the consumer insights that are landing through a ton of data.

Thor:

Thank you so much for that. And if we take a slightly broader perspective, what do you think is the DNA of a successful Insights team?

Simone:

For me, collaboration is key for a successful Insight team. Having some vertical skill and playing alone is no more sufficient nowadays, because the world is becoming very complex and going faster and faster. So only by integrating together different perspective and expertise is possible to reach a more comprehensive picture of the consumer. The second keyword I would like to underline is independence. Whatever is the collocation of consumer Insight department within the organization, we have to remind that we represent the voice of the consumer. And so, we have simply to work to optimize his experience with our product and services. On top of that, a modern CI team must be flexible and adaptable, only embracing change and displaying agility, allowed to navigate emerging trends rather than passively reacting to them. Last but not least, it's crucial to have the commitment to have a business impact. So, a job well done is not a proper presentation of research results. This is just for me, a preliminary condition. We can only say mission accomplished when we support the company in making a good decision.

How can insights leaders elevate the role of insights in organizations?

Thor:

Thank you. And if we build on that to look at the role of insights teams within the organization, if you take a look at your experience currently at Lavazza, but also before within the automotive industry at Fiat Group, how do you think we can as insights leaders go about elevating the role of insights?

Simone:

I'm trying to push constantly myself and the team in order to establish collaborative relationship because we are living a complex era and no one can save himself alone. In doing that, it's crucial again, the attitude.

So be open, be transparent, authentic is very important to gain credibility.

And on top of that, to increase the effectiveness, we have to find also an antidote to the decreased level of attention to inject effectively data. We are leveraging data visualization and reinforcing the storytelling because every one of us is really bombed by stimuli. So, it's not sufficient to have available information and put it on the table as it is. So recently we start recording video clips with the key findings of our major study. This approach allows us to be very effective in disseminating consumer insight on a wider audience beyond the traditional reports and presentation. And so, in the company, people are really exciting receiving these video clips. Lastly, we are also continuously exploring new technique in our consumer insight work. For instance, we are gradually replacing traditional concept tests with simulating online advertisement. Let me explain a little bit better. Through A/B Test, we gather the genuine interest in new ideas by measuring the clicks and engagement of real users. I personally consider this technique more reliable because those who are answering are not paid to respond, but individuals who demonstrate an authentic interest in new products through their interaction. And in some way, doing this concept test in this way, we are also simulating the business path when we launch the product on the market on the web environment.

Thor:

Thank you so much. And if we think about the people who have inspired you during the course of your career, what's the best career advice you've ever received?

Simone:

You know, I received many available suggestions in the past, but I want to underline this one that is a sort of mantra for me. One of my mentors once said, don't get too attached to the data as if they were a separate world. Stay grounded in the reality that surrounds you. Keep observing what is happening around you. And that's why I really like to have a small talk with taxi drivers during the commuting, observe consumers when they are shopping or simply ask for opinions when people are drinking their cup of tea.

Thor:

I think that's such brilliant advice. To some degree, it also summarizes how you talked about the importance of fighting consumer biases earlier on, but also looking ahead to the future, what do you think there are in terms of opportunities for insights teams and insights professionals to make business impact at a new level and to challenge the status quo? How do you think insights functions should evolve?

Simone:

I do believe that consumer insights professionals have today an exciting opportunity to become more relevant in business decisions. And this could be done by leveraging emerging technologies such as artificial intelligence and machine learning. By doing that, we will be able also to support better innovation. You know, sometimes in the past as a marketeer, I've seen some study that were simply mirroring the present. An idea was considered good if it was in line with the best competition, because consumers usually are not able to pre-figure the future. I used to call this kind of study expensive elaboration of the obvious. You know, nowadays we are lucky because we can rely on vast amounts of data coming from different sources. So, by combining technology with still valuable traditional methodologies, such ethnographic interviews, so mixing a lot of sources, we could really find and expect the connection among the data and foster innovation.

Thor:

Fully agree. And on the flip side, what challenges do you see that could face insights professionals and the wider industry in the near future?

Simone:

You know Thor, in a fast-paced scenario, insights professionals need to deliver timely and actionable insights. So, the demand for real time data and rapid decision making will increase, and we will be forced to adopt agile solutions. However, the winners will be only those who will be able to combine speed and velocity with data reliability, and those who will be able to provide the sample that really are representative for the universe we are investigating. So, fact and opinion checking will play a key role in the near future.

Thor:

Thank you so much for that advice. Simone, it really hurts me. We've gotten to this part, which is the end of the podcast. And there is only one more question that I want to ask you. It's one of my favorite questions. And you heard it before, but who in the world of insights, would you love to have lunch with?

Simone:

I haven't a single name, so being an Italian, I really would like to have a lunch on a long table with all those who supported in terms of consumer insights Steve jobs during the development of the first iPhone. I'm quite sure that would be interesting conversation, not only exploring the techniques, but also the human dynamics in dealing with the such difficult person, who was a true genius. And I can bet that they did not ask consumer literal questions such, would you like to buy a phone that have not a physical keyboard? So, I do believe that it would be really an interesting lunch. And obviously you are invited to that lunch.

Thor:

Invited or not, I would definitely eavesdrop. Wow, this has been such an amazing conversation, Simone. You have a truly unique perspective on the industry. And I think we can all learn from it. If I play back some of the moments of our conversation that really stuck with me, I'd start by your definition of an insight when you said it's an expected connection between data facts that supports a new approach to make business decisions. Discovering insights is like finding a shortcut in the middle of a dense jungle. But beware, true consumer insights are really rare. And remember that if it's not actionable, it is simply information. They're crucial for businesses as they avoid organizations to be trapped in false beliefs. When talking about fighting consumer biases, you shared that you frequently compliment traditional research tools with neuroscience, but more generally, you advise us to make sure to create a mix of techniques for every important study you conduct. Separating bias from truth is really difficult. Multiple techniques can, however, help you triangulate to the core and by so doing fight the bias in the potential insight. And lastly, one of the best career devices you've ever received is don't get too attached to the data. Stay grounded in reality before forming your recommendations. Now I know that I've learned a lot from talking to you today, and I'm sure our audience has as well. Thank you so much for joining me.

Simone:

Thank you. It was a true pleasure to be part of this conversation on Consumer Insight.