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06.09.2005

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The Actionability Paradox

how the pursuit of actionability may be clouding your judgment

Who in the consumer insight business isn't tired of hearing the dreaded question, "...but is it actionable?" "Yes, Yes, Yes," the VP of marketing intones, "I understand your insights here, but my problem is I need something actionable, something I can implement immediately. I can't tell you how tired I am of listening to provocative insights that never prove actionable." In theory our polite VP's position seems reasonable enough - that is, of course, until you find yourself on the receiving end of such a request.

Here's the real challenge: All insights are actionable, the trick is understanding that true insights don't conveniently conform to one's personal agenda or worldview, let alone those of a large organization. Emanating from the often confused and contradictory actions of those who roam this earth, insights are glimpses into the mysterious realm that is humanity. Not surprisingly, the specific implications and action plans insights point toward are as varied and unpredictable as we are.

Unfortunately, we often find resistance to our insights - not because the implications are "undoable" or "unimplementable," but because they don't conveniently align with current workplans, marketing schedules or channel strategies. In short, when marketers complain that a specific finding or insight is not actionable, what they are really suggesting is that the insight is "a big pain in the rear."

Consider the following finding: Consumers shop fresh. Or, more elaborately, we find consumers shopping in grocery stores strongly favor the so-called "fresh" categories that populate the perimeter of the store (dairy, produce, meats, seafood, bakery, etc.) over the packaged food categories that comprise center store (canned foods, snacks, etc.).

Additionally, our research identifies three critical cues that signal "fresh," to the contemporary consumer: (1) product location in "fresh" departments, (2) chilled product sets and (3) clear or "see-through" packaging.

The critical insights here suggest, at minimum, that CPG manufacturers should begin to re-think merchandising strategies (e.g., chilled product sets) and package design (e.g., clear packaging). Truly forward-thinking strategists might even consider the possibility of getting out of the packaged goods business altogether and reinventing the company as a key player in "fresh."

We could easily imagine presenting these results to a client, only to be rebuked with the actionability charge. Imagine the following interaction:

- Yes.

- Uh...that's not recommended.

Of course we are extremely aware of the critical role cost benefit strategizing plays in these scenarios, which leads to the important corollary to our actionability theorem. That is, just because all insights are actionable does not mean they should be acted upon. It is up to seasoned marketers and strategists to decide if such implied strategies should be enacted. Careful analysis in the above strategy, for example, might suggest that the additional lift gained from locating the product in chilled product sets is still insufficient to cover the additional expense of reformulating one's merchandising strategies. But note that this decision is in no way a reflection of the original insight's relevancy or actionability. Rather, it is a strategic decision based on informed opinion, judgment, wisdom, etc.

But even if we accept the twin propositions that (a) all insights are actionable and (b) it is up to seasoned, wise marketers to decide whether the insight should be enacted, a skeptic might then ask, "So what benefit is there in a set of insights if I should choose not to act upon them..." The short answer is, we believe...a lot.

For in the example highlighted above, even if our client decides it is not worth the financial risk to set about reconfiguring his product towards "fresh," with a costly new marketing and distribution program, the original insight into consumer behavior suggests that it is quite likely only a matter of time before somebody else (i.e., the competition) stumbles across this insight and decides to act upon it.

All too often it is the newer entrants into the marketplace who are best positioned to act upon such insights precisely because they are not so encumbered with excessive organizational baggage stemming from investments in the current worldview. Consider Reed Hasting's insight regarding movie rentals, "Like probably 50 million Americans, I've had some terrible late fees. That was the germ, that there has to be a way to do this without the late fees." Hastings quickly reoriented his small, struggling online DVD rental business, Netflix, to a subscription model and the rest - well, you know the story.

One can only speculate as to the reaction from Blockbuster upper management in the early 90s if insight specialists presented findings that suggested consumers disdained late fees and resented companies that enforced them. After all, to a seasoned industry executive weaned on a business model that viewed late fees as a necessary deterrent and a substantial revenue stream, there is little doubt such insight would have garnered the "actionability challenge."

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