When it comes to gaining a better understanding of a business sector, the natural reflex of market researchers is to launch a market survey. There are, however, attractive alternatives. Search Intelligence’, for example, as we discussed with Digital Value founder Arnaud de Baynast. Or ‘Knowledge Brokering’, which involves interviewing experienced professionals – experts – on a particular sector or issue. Guillaume Fradet, ex-marketer and founder of Xperts Council, a specialist in this field, answers questions from Market Research News.
MRNews: You founded Xperts Council ten years ago. Your organization does not carry out market research. It does, however, offer an alternative approach to market research. What exactly does it offer?
Guillaume Fradet (Xperts Council): We operate in the field of knowledge brokering. In other words, Xperts Council offers the possibility of consulting experts in a given sector, anywhere in the world, at very short notice, to obtain key elements of knowledge about that sector. This may involve the evolution of the sector, its size, consumer trends, the competitive landscape, benchmark data… Our customers can thus capture decisive information for their company, usually within 48 hours, by exchanging views with professionals. Who are, for example, executives or former executives, and who have real expertise in the sector and the issue in question. By interacting directly with them, without the need for an intermediary, our customers have the freedom to delve deeper into the subjects that interest them.
We operate in the field of knowledge brokering. In short, Xperts Council offers the possibility of consulting experts in a given sector, anywhere in the world, at very short notice, in order to obtain key elements of knowledge about that sector.
This information can inform strategic decisions, sometimes of major importance, such as purchasing and/or investment decisions. This is extremely valuable when you need to move fast, especially if the markets concerned are not easy to investigate via marketing studies. A simple phone call from one of our customers – an investment fund – to one of our experts dissuaded him from proceeding with an acquisition worth over a billion euros that he was about to commit to…
In which business sectors does this type of approach bring the greatest added value?
The variety of subjects and sectors in which we operate is enormous. They range from orthopedic implants to amino acids incorporating a very specific component, via biociments… These are often BtoBtoC markets, which may seem somewhat esoteric to the uninitiated, but which are in fact gigantic when they concern the entire industrial chain in sectors such as food, clothing, pharmaceuticals…
Perhaps you could give us an example to illustrate the type of stakes involved?
Our customer, an ETI in the FMCG sector, wanted to expand into the African market, and therefore understand how to get its products distributed in each major geographical zone: French-speaking Africa, English-speaking Africa and South Africa. He needed to identify the main wholesaler-distributors by region and recent developments, the needs of end retailers and their vision of his product category. But also the distribution costs for the various intermediaries, and even the right organization to put in place.
We enabled him to conduct ten one-and-a-half-hour interviews in one week, including with a former Coca-Cola general manager for the Africa zone, a former Danone sales representative in the Maghreb, a former marketing and sales manager for BIC in Nigeria… Our customer was thus able to benefit from reliable, cross-cutting viewpoints, enabling him to move forward calmly in his decision-making, with knowledge of best practices and risks to be avoided.
Who are the players who call on you to find out more about their markets?
We have three types of customer. Strategy consulting firms, whether French or international; private equity investment funds, for their strategic due-diligence; and finally, « classic » companies, with contacts who are sometimes ex-consultants. The latter currently account for only 10% of our business, but we anticipate strong growth in this segment.
Do companies’ market research managers call on you?
No, or very rarely so far. Requests tend to come from marketing or strategy departments. Or directly from general management.
Corporate marketing research professionals are not yet inclined to turn to services like ours and our experts. This is due to a lack of knowledge, and also because they don’t always have the budget for this type of investigation. But this use could well develop. It seems to me to be a real lever for the Market Research function, especially as the information that can be gathered from our experts is extremely complementary to market research. Basically, the aim is the same: to provide key information to decision-makers. And interviewing sector experts can be a hell of a shortcut to finding the best insights!
The use of services such as ours seems to me to be a real lever for adding value to the Market Research function, especially as the information that can be gathered from our experts is extremely complementary to market research. Basically, the aim is the same: to provide key information to decision-makers. And interviewing sector experts can be a hell of a shortcut to finding the best insights!
Let’s imagine I’m the marketing director of a BtoB industrial company considering a move into the Chinese market. I have neither the budget nor the time to conduct a market study. In concrete terms, how does the process work?
Typically, we propose that our customers formalize their brief in a predefined format. It is important that the company clearly specifies its knowledge objective, and the profile of experts it feels should be called upon, possibly with indications of priority. Our contacts give us 3 or 4 qualifying questions that we integrate into our research, bearing in mind that we almost always work in ad hoc mode.
We then seek out and contact professionals who match this target, experts in the field. Naturally, we abide by strict ethical rules: for example, it’s unthinkable that we’d call on collaborators working for competitors. And we rely on a team largely made up of young graduates from top schools or universities. These are people we train and coach, and who are able to understand a sector in a short space of time, talk to high-level contacts – often company directors – and summarize the advantages of a profile in a few lines. Our customers then shop around in the selection we offer, interviewing the experts of their choice.
Some companies prefer to delegate the task of interviewing these experts. In this case, we bring in independent consultants, usually from large strategy firms, who have chosen to become freelancers. They then carry out the study for our client, providing the necessary feedback.
Can you give an indication of the price of the service?
We offer package deals to our regular customers. But for a « one shot » mission, the price of a one-hour exchange with an expert is around 1,300 euros. Given the importance of the decisions that can be informed, the ROI is often incredibly high!
Do you work with research institutes? Do you plan to do so more systematically?
So far, we’ve had very few contacts. But my intuition is that the synergies could be very significant, and in any case deserve to be explored, particularly with research companies with a very international clientele, this dimension being one of the major strengths of our system.
Before creating Xperts Council, you held marketing management positions, and « consumed » a great many studies. How do you see the complementarity of these studies and the contribution of sector experts?
Ah, that’s an excellent question! I used to talk to some of my counterparts on this subject and, in retrospect, we all felt that we had spent far too little time looking at what was going on outside our respective companies. Whenever I was able to do so, especially when benchmarking, the input was really valuable.
So I think a solution like Xperts Council would have been a great help to me as a Marketing Director. Exchanging even an hour with an experienced professional who knows the issues you’re facing opens up new avenues, and is an extremely powerful source of inspiration. And it’s quick and easy: once you’ve found the right person, all you have to do is make a phone call. The added value of this kind of approach can be enormous: it’s a real opportunity to look at things differently, to rethink marketing plans or revisit ideas that are essential to business transformation.
POUR ACTION
– Interact with the interviewee: @ Guillaume Fradet
