In today’s ever-changing business world, data is not just a trendy term – it is the compass that guides organisations to long-term success. The ability to gather and analyse data is transforming decision-making processes, turning instincts into strategic and well-informed choices. At the core of this transformation is market research, a powerful tool that offers valuable insights into consumer behaviour, preferences, and trends. By using market research, organisations around the globe are making data-driven decisions that lead to new levels of success.
As a business owner, manager, or stakeholder in charge of setting the strategic direction and making critical decisions, this article explains how conducting market research helps businesses make data-driven decisions. It uses examples from a leading global organisation and a notable one in Nigeria to illustrate the benefits of unlocking the potential of data through market research.
Before exploring how market research guides data-driven decisions, it is essential to understand what market research entails.
What is Market Research?
Market research is a method for gathering information about consumers’ preferences, behaviours, opinions, and needs. It involves collecting data from a target audience to understand market dynamics, make informed business decisions, and stay competitive.
It encompasses various methodologies, including qualitative, quantitative, and desk research. Each method offers unique insights and benefits, making them valuable tools for understanding markets, consumers, and industry trends.
- Qualitative Research: Qualitative research is an empirical approach to understanding the underlying reasons and motivations behind consumer behaviours and attitudes. This method involves gathering in-depth insights through interviews, focus groups, observations, and ethnographic studies. It provides rich, detailed information that can uncover hidden motivations and attitudes, offering flexibility to explore new topics and ideas as they emerge.
However, the findings can be subjective and may not be broadly applicable due to small sample sizes and the time-consuming nature of data collection and analysis.
- Quantitative Research: Quantitative research collects and analyses numerical data to quantify behaviours, opinions, and attitudes. It uses structured methodologies like surveys, experiments, data analysis, and longitudinal studies to identify patterns and correlations. This approach provides precise, objective, and applicable data that can be used to make specific predictions.
While it offers statistical rigour and large-scale interpretation, it may lack the depth and contextual understanding of qualitative research, often missing nuanced insights into ‘why’ certain behaviours occur.
- Desk Research: Desk research, or secondary research, involves analysing existing data collected by others, utilising sources such as industry reports, academic journals, government publications, and online databases. This method is cost-effective and quick, providing a broad perspective on market conditions and trends without the need for primary data collection.
However, desk research can sometimes involve outdated information and may not address specific research questions or unique business needs. The reliability of secondary data also depends on the credibility of the sources.
The data collected through these methods is then analysed to identify patterns, trends, and insights that guide business strategies, product development, marketing campaigns, and customer service enhancements. Market research aims to gather data or information that can help businesses better understand their market, identify opportunities, and mitigate risks.
Now that we understand market research, let’s delve into how market research guides data-driven decisions.
How Does Market Research Guide Data-Driven Decisions?
Data-driven decision-making (DM) involves using reliable data, insights, and facts to steer critical choices. Rather than relying solely on intuition or gut feelings, data-driven decisions are based on objective information and insights from various sources.
In business, market research is a foundational element in making data-driven decisions, offering a wealth of information directly from the target audience. The following describes how conducting market research helps businesses make data-driven decisions:
- Identifying Consumer Preferences and Needs: Market research assists businesses in identifying customer needs and preferences by providing insights into consumer behaviour, preferences, and market trends. These insights can determine customers’ preferred products or services and why.
- Evaluating Market Demand: Market research offers valuable insights into a specific product or service’s demand. Businesses can make well-informed decisions regarding product launches, expansions, and investments by assessing interest levels and potential market size.
- Assessing Competitive Landscape: Market research can uncover how consumers perceive competitors and their offerings. This information assists businesses in identifying their unique selling points, refining their value propositions, and developing strategies to stand out in the market.
- Enhancing Customer Experience: Businesses can enhance their products, services, and customer experience by leveraging market research to understand customer pain points and satisfaction levels. This proactive strategy fosters higher customer retention and generates positive word-of-mouth.
- Informing Marketing Strategies: Market research provides valuable data on consumer behaviour, media consumption, and purchasing habits. This information helps businesses create targeted marketing campaigns that resonate with their audience, resulting in more effective and efficient marketing efforts.
- Supporting Product Development: By gathering feedback on existing products and potential new features, businesses can make informed decisions about product enhancements, innovation, and development. This reduces the risk of product failure and ensures that new offerings align with market demand.
- Measuring Brand Perception: Market research helps businesses understand how the public perceives their brand. This information is essential for brand management, reputation building, and identifying areas for improvement.
- Improving Employee Engagement: Market research is crucial in assessing employee satisfaction, engagement, and organisational culture. The insights gathered from this research help shape HR policies, develop training programs, and drive positive changes in the workplace.
For example, pcl. conducted a Talent Management Survey with 1800 respondents (employees) across eight sectors. The report revealed that 36% of employees surveyed prefer a quarterly performance review, 28% want to maintain the annual review, and 27% prefer a biannual review transition.
This valuable insight can help talent managers make vital decisions regarding employees’ performance review systems. The report also includes key insights that can guide organisational talent management decisions.
Download report here
- Making Informed Business Decisions: More importantly, gathering insights from market research provides a robust foundation for strategic planning and decision-making. When entering a new market, adjusting pricing strategies, or introducing a new product, relying on data-driven decisions greatly increases the chances of success rather than relying on intuition or speculation.
Benefits of Harnessing the Potential of Data Through Market Research
In today’s data-driven world, businesses that can effectively use information have a significant competitive edge. Market research, a proven method for gathering critical data, has evolved to provide deeper insights with technological advancements. Organisations can thrive in a competitive landscape by harnessing the data collected through market research.
Leveraging the potential of data through market research offers several benefits to businesses, including improved decision-making, product development, customer service enhancement, and targeted marketing strategies. Using Apple Inc. and Guaranty Trust Bank (GTBank) as case studies, the benefits of leveraging data collected through market research will be illustrated.
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Apple: Leveraging Market Research for Product Innovation
Apple Inc. found itself at a turning point in the fast-paced world of technology. While the iPhone had already transformed the smartphone market, the competition was intense, and consumer preferences were evolving rapidly. Apple recognised the need to deeply understand its customers’ needs and desires in order to maintain its lead.
To achieve this, Apple embarked on extensive market research using a combination of both qualitative and quantitative research methods to gather user insights. They carried out qualitative research, including focus groups and in-depth interviews. These allowed them to gather detailed, narrative feedback from users about their experiences, preferences, and frustrations. Through these discussions, Apple understood the “why” behind customer preferences and behaviours.
Apple also conducted quantitative research, which included deploying online polls and structured questionnaires to a large sample of users. These surveys included closed-ended questions, enabling Apple to quantify customer preferences, measure satisfaction levels, and identify trends across a broader population.
The data obtained from the market research uncovered some unexpected findings. Many users expressed a strong desire for better battery life and improved camera quality, which they considered more important than incremental increases in processing power. Additionally, there was a growing interest among customers in health and fitness-related features for their devices.
Armed with these insights, Apple took decisive action. The company committed significant resources to enhancing battery technology and improving camera capabilities. Furthermore, the research data inspired the development of the Apple Watch, which strongly emphasised health and fitness tracking.
The results were remarkable. The new iPhone models received enthusiastic reviews for their enhanced battery life and camera features, leading to record-breaking sales. Simultaneously, the Apple Watch swiftly emerged as a market leader in the wearable tech sector, establishing a new revenue stream for the company.
By strategically utilising qualitative and quantitative research data, Apple outpaced its competitors and continued expanding its dedicated customer base.
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Guaranty Trust Bank (GTB): Utilising Market Research for Customer-Centric Banking
On the other side of the globe, Guaranty Trust Bank (GTB) in Nigeria faced challenges within the evolving financial sector. With the rise of digital banking and changing customer expectations, GTB needed to understand and predict its customers’ needs to maintain its leadership position.
GTB conducted quantitative research, including distributing structured questionnaires to its customer base. These questionnaires focused on closed-ended questions that could be easily quantified, and data on various aspects of the banking experience, such as the use of digital banking features, customer service satisfaction, and preferences for banking solutions, were collected.
The data showed an apparent demand for more seamless and secure digital banking services. Customers wanted a user-friendly mobile app with robust security features and 24/7 accessibility. They also expressed frustration with long wait times in branches and a desire for more personalised banking solutions.
Equipped with this valuable data, GTB sprang into action. They revamped their mobile banking app, incorporating advanced security measures and a user-friendly interface. They also introduced a chatbot feature for instant customer support and personalised banking recommendations based on individual transaction histories.
The impact was immediate and significant. Customer satisfaction soared, and the bank experienced a substantial increase in the adoption of its digital services. GTB’s market research provided the insights needed to transform its services and consolidate its position as a leading bank in Nigeria.
Apple Inc.’s and GTBank’s success stories illustrate the transformative power of harnessing data through market research. By actively listening to their customers and implementing the insights gained, both companies could innovate, enhance their products, and achieve significant growth. Market research proved to be a crucial tool in their pursuit of excellence, demonstrating that understanding customer needs is the key to staying ahead in any industry.
How Can We Help?
Harnessing the potential of data through market research is not just a business strategy; it is a vital component of staying relevant and competitive in today’s business environment. By leveraging the insights from this research, your organisation can make more informed decisions, better understand its customers, and ultimately achieve long-term success.
As a market leader in Industry and Market Research, we conduct market research for our clients across various markets and industries. pcl. assists clients in understanding future trends and drivers shaping their industry and the economy, enabling them to make informed decisions to improve performance and growth.
By partnering with us for your market research needs, you are choosing a path of insight-driven growth and a future where data-driven decisions pave the way to enduring success. Let’s embrace the power of data together and steer your business toward unparalleled heights.
For more enquiry, kindly send an email to strategy@phillipsconsulting.net
Written by:
Mercy Akindele
Analyst
