In a layperson’s language, market research can be defined as a set of mechanisms to gather data and better understand a company, brand, or retailer’s target clientele. Market research has an array of benefits, and it can be easily leveraged to improve product designs, enhance user experience, bolster marketing strategies, yield more conversions, and so forth.
Market research is important, as it provides the ‘why’ of everything. You can co-opt big data to gauge what your target audience does at scale, but only intensive backend research can tell you the ‘why’ of their preferences and actions. For instance, data or metrics can tell you your page has good traffic but no sales, but only research can explain the reason!
Similarly, research beats guesswork, trends, and so-called best practices. Bad ideas are often the result of guesswork, emotional reasoning, and flimsy practices. The key is to listen to your brand’s users carefully and focus on customer experience. Lastly, market research keeps you from planning in a vacuum. All in all, market research is an expansive and imperative phenomenon that every organization that desires to grow must take seriously.
But, just like any kind of research market research is premised on data – both qualitative and quantitative. What is it all about, let us find out!
Data Collection and Market Research
You might be surprised to know that a whopping 90 percent of customers are more likely to buy a product or service from a brand that offers personalized experiences. In fact, customers are even willing to hand over data in lieu of personalized experiences and products.
So, to offer customized experiences to your clientele, you have to conduct market research, and for a successful market investigation endeavor, your brand needs data. The question now is not whether you should be extracting data. The pertinent query is which data collection methods will best justify your market research questions.
Preemptive Requirements for a Successful Collection
The distinction between a successful venture and an unsuccessful is the amount of preparation that an individual or brand engages in, and a similar trajectory can be applied to data collection, as well. So, before delving into data collection from your consumers, there is a brief checklist you must address.
- Get Necessary Permission, Clearance and Consent from All Parties
- Inform Stakeholders of Any Changes in the Study
- Plan to Work Appropriately and with Proper Conduct
- Hire the Right Market Researchers and Surveyors
Top 3 Data Collection Methods for a Successful Market Research
Surveys
Surveys are very efficient and cost-effective. Nowadays, multiple software programs are also available that offer an intuitive way for market researchers to create, distribute, and analyze the results.
The benefits of surveys are –
- Easy and affordable
- The sampling population is robust
- Possible to gather descriptive data
- Finishing surveys is not difficult
Cons of Surveys
- Surveys may lack depth and context
- Self-report biases may happen
Personal Interviews
The second most common method of data collection is a personal interview. It is a type of qualitative research, where you choose an ideal individual to provide tailored feedback. The main catch in personal interviews is that the person chosen for the interaction must be a well-suited representative of your niche clientele.
The pros of personal interviews are –
- Scope for in-depth invigilation
- Results can be enriching and offer invaluable insights
- In-person contact with the respondent might yield more positive result
- The interviewer is readily available to clear up confusion
The cons of personal interviews are –
- Time consuming and laborious
- Expensive
- Requires trained interviewers
- The respondent may give a biased or selective answer to please the interviewer
Observations
The third data collection method for successful market research is observation. As the name suggests, observation is a type of research strategy wherein the research observes participants in their natural setting. The process helps gather firsthand data on behaviors, attitudes, and habits of the consumers. An observation can include the researcher visiting an off-site location, such as the participant’s home, a store, or even watching them via video footage. Besides, an observation can also happen in a controlled set-up.
The pros of observation are –
- Possibility to avoid self-reporting bias as the participant is in their natural setting
- Possibility to identify unanticipated outcomes
- Facilitates a flexible and natural ambiance
Cons of observation –
- Time consuming
- Expensive
- When participants know they are being watched, their behavior might change
So, there we have it, a crisp overview of the three best data collection methods for an excellent market research campaign.
