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MARKET RESEARCH
AGX (AUX) Consumer Market Research. In the early part of 2019, as part of its brand development strategy for the AGX Coin, the LODE Project commissioned the Lana Porter Group (lanaportergroup.com) to conduct qualitative research with target consumers in Vancouver, BC, Canada.
The Lana Porter Group Inc. (LPG) was established in 2004 by Dr. Lana E. Porter. Dr. Porter and her team of researchers focus on consumer dynamics research offering an agile
working style of a boutique firm alongside the
global reach and capabilities of a multinational company. They have been focused on product market research for nearly two decades and provided LODE with key insights for future marketing of AGX and considerations for further product development efforts.
While some of the material is now outdated, at the time, the primary objectives of the research included:
• An exploration into consumers’ current relationship with money, as well as, financial
institutions, products, and services. • A gauge of the level of consumer familiarity with asset-backed currencies and cryptocurrencies in general. • An assessment of the reactions to the overall AGX Currency proposition and identification
of trial motivators and barriers. • An evaluation of written marketing materials to identify compelling hot buttons that prompt consumer interest, and consideration, as well as any sticking-points or negative triggers that should be avoided. • A side-by-side comparison of two creative directions, to identify the most compelling visual identity for the AGX brand.
THE RESEARCH PROJECT FOCUSED ON THREE CORE GROUPS
Duo-income household of $60K+. • Actively participate in a loyalty program where they earn and redeem points. • Open to learning about new types of currencies. • Open to learning more about a cryptocurrency that is backed by silver reserves. GROUP 2 – Older Consumers • Men and women aged 40-55 (mix of ages). • Employed full-time. • Single income household of $25K+ /
GROUP 3 – Ethnic Consumers • Men and women aged 25-55 (mix of ages). • Mix of Filipino, Mexican/Latin American,
Asian, Indian/South Asian participants – reside in Canada on a Work Visa or are a
Permanent Resident or Citizen. • Employed part-time or full-time (if not a
Canadian Citizen, must have a work visa). • Must send/receive money to/from family members back home 1+ times per month. • Open to learning more about alternative ways to send money across borders.
The following is an excerpt of the conclusions provided by the team at LPG.
Overall Reaction to the AGX Currency Concept & Written Concept Guidelines
• Overall, AGX currency has potential among these target consumers. After reading the written concept description, they are intrigued and compelled by the concept and many would like to find out
more. • That said, their enthusiasm for this new currency is mitigated by a lack of understanding about cryptocurrencies and how they work. As such, consumers must have a basic understanding of cryptocurrencies and related concepts (e.g., blockchain) before they will be willing to adopt this new currency. In particular, consumers want more information on the practical application and usage of AGX currency, including how they would use it (channels), where they could use it, and how widely accepted it would be. • The most compelling feature of AGX currency is that it is an asset-backed currency. Consumers believe that assetbacked cryptocurrencies are less volatile and boast a more stable value than other cryptocurrencies (however, this benefit
must be properly explained to them). The most significant barrier to trial for AGX
currency is safety and security concerns. Consumers’ lack of understanding of cryptocurrencies is further confounded by a lack of history and proven track record for AGX currency. They need to know that this alternative currency is a tried-and-tested, safe, and secure mode of exchange. Given these questions and concerns, AGX should consider the following “Written Concept Guidelines” in future marketing:
• Use simple and easy-to-understand language about cryptocurrencies and related concepts (e.g., blockchain); otherwise, the many benefits of
this alternative currency are lost on consumers. • Outline the safety and security measures that are in place (and inherent to cryptocurrencies) in order to assure consumers that their money would be safe. • Emphasize that AGX is backed by silver reserves and, as such, is more stable and less volatile relative to other cryptocurrencies (i.e., non-assetbacked cryptocurrencies).
• Present evidence of solid financial
performance to build consumer trust in
AGX’s track record. • Outline where and how AGX can be used and what consumers can purchase using this currency (including available payment methods and purchase outlets as well as account management information).
• Communicate the unique benefits of
AGX currency beyond what is offered
by other financial institutions, services,
and products (“Why should I use AGX over the payment methods I use now?”). For example, no exchange rates or wire transfer fees.
AGX, and subsequently AUX, to market. The full research report can be found at AGX Consumer Research or through an email request sent to info@lode.one.
The result of the research conducted by Dr. Porter and her team has helped to significantly shape the path for bringing AGX, and subsequently AUX, to market.
