Consensus Point recently explored how to predict guest satisfaction in casual dining restaurants by creating a prediction market ad test. Check out the post below to see what we found out.
So, here’s the situation…
Your chain of casual dining restaurants is considering adopting a new brand positioning. But you’re not sure how your existing or potential customers will react. Will the new positioning improve guest experience and encourage other casual diners to visit your restaurants? Will reactions differ by region or customer segment? Finally, if guests don’t like the change, how will you refine your message?
Did we mention that management is making a decision in two weeks and just decided that doing some research might be a good idea? Sound familiar?
While there are many traditional positioning and ad testing approaches to consider, you have limited time and budget, and need something that will offer both quantitative confidence and qualitative guidance.
Fortunately, a quick phone call to Consensus Point allowed this client to leverage the power of prediction markets to get the job done.
So, what did we do?
Within an hour of receiving the call, we worked through the client’s research and business questions and built a custom prediction market design to deliver against objectives. We opened the ad testing market within 24 hours, and here’s how it worked:
- We leveraged Huunu™, our patented prediction market platform, to ask casual dining customers to predict the type of dining experience that would align with each Adcept. Market participants (respondents) predicted satisfaction levels at both the client restaurants and their key competitors.
- A national audience of nearly 400 adult casual diners, balanced by gender, region, and segment, participated in the ad test market.
- In our interactive approach, each participant received 100 tokens and was asked to place bets only on the Adcepts they thought would increase guest experience and satisfaction of casual diners.
- We opened the market on Day 1, closed it on Day 3, and provided results by Day 5.
And how did it go?
In one word: Whew!
Because this client was willing to try a new approach, it helped the Brand avoid a costly mistake. Specifically, the results helped identify the potentially negative impact of some of the Adcepts on guest experience and satisfaction:
- Both core and occasional customers predicted lower experience and satisfaction levels with specific elements of the creative. This was a big surprise to management.
- The broader casual dining audience was even more convinced that the Ads would have a negative impact on guest experience and satisfaction.
- The good news was the richness of the qualitative feedback provided the necessary guidance to quickly optimize the creative before launch.
Thanks to the power of prediction market insights, management was able to course-correct and optimize the advertising a week prior to launch, saving significant dollars and many unhappy guests.
Who says you can’t have better, faster and less expensive in market research?
Please contact us to discover how prediction markets can help you make the smartest decisions for your business. 1-877-230-8074. firstname.lastname@example.org