Growing need of merging market research data with behavioral data
The wealth and sheer volume of data available to organizations has grown exponentially over the last few years. Organizations can tap into various sources like: CRM, digital platforms, social media, POS, IoT to gather data. Capturing behavior is now more possible than ever, however understanding and acting on this data becomes increasingly more complex.
The big question is how can research companies best use this data to help organizations with future strategy and decision making?
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Market research & behavioral data are two sides of the same coin – they need to work together to gain a 360-degree view of the market:
Market Research data can help in studying the experience in numerous ways. Companies can conduct satisfaction surveys to gain understanding of consumer perception about their brand, product, campaign etc. They can conduct brand track studies to access the position and perception of their brand in the market.
On the other hand, behavioral data can offer insight into how the company is performing in terms of sales, profits etc. It can also help in understanding who the regular customers are, who are the most frequent purchasers, which target segment buys the maximum amount etc.
Currently, most of the companies are conducting studies across both these types of data in siloes. In order to achieve a 360 view, insights professionals will need to augment market research with behavioral data, to build a complete picture of what, why and how.
The goal of both these studies is the same, to provide companies with insights and information to improve decision making ability within a business. However, in most organizations these two research disciplines are viewed as unique approaches, rather than complimentary partners.
They are generally conducted separately, managed by different client teams using different vendors. However, it is through the amalgamation of these two disciplines that organizations can widen and deepen their findings—essentially learning more, about more.
Let us take an example of a retailer about to launch a new product or a loyalty program. Prior to such an important launch, the organization generally needs to gain an understanding of the potential market adoption, identify consumers most likely to adopt and have the insight to design marketing that will best resonate with consumers.
Insights professionals can conduct surveys and based on the survey responses indicating interest in the program build market-sizing tools, predictive models for targeting and segmentation to understand the motivations of different groups of targets. By combining both market research and behavioral data, insights professionals can help identify the best leads, resulting in more relevant messaging and improved ROI for their direct marketing efforts.
More and more organizations are in fact looking to blend research data with behavioral data to gain deeper insights. According to 2017 study conducted by Research Now and Lawless Research companies report that market research has an impact in many areas, most often in terms of higher customer retention/satisfaction, better strategic decision-making.
As many as 92% of the professionals surveyed for the study also indicated that their companies merge market research with behavioral or transactional data sources to gain deeper insights.
A combination of both types of data can help organizations in getting a holistic view of both performance and perception. Organizations can then drive better outcomes, by using experience data for actionable behavior.
This can result in greater customer retention, loyalty and improved performance. Integration of market research and behavioral data will help insight professionals to provide organizations with recommendations on actions and then track results through future monitoring of customer behavior.