market research, from nice to know to measurable effectiveness

Marketing performance is not an option : brands which will shift their insights and studies into business levers will grow and succeed

While the temptation not to challenge the profitability of a study may sometimes be great in view of the difficulty of understanding and constructing the indicators, the multiplication of data, their fragmentation and redundant services have a much more easily quantifiable cost for the company. It is not uncommon to see research expenditure double in the month of December alone when it is time to liquidate the « budget tails ».

The first pitfall often identified is the absence or lack of prescription from the research department.  Often, operational marketing or sales teams are in direct contact with market research suppliers, which results in a redundancy of information on a specific theme.

Each institute then proposes its own methodology with its own added value, resulting in a multiplication of players, frequent over-specification of needs and inflation of the associated expenditure. Each project is often managed on a case-by-case basis, offering great agility to the teams but limiting economies of scale: estimates are rarely negotiated by these operational teams.

How can we be effective in this world of market research?

• Rationalize the tracking and KPI’s available. When was the last time you challenged the data you have been buying historically in terms of nomenclatures, KPIs, delivery frequency, themes addressed?
• Contractualize recurrent services, whether for quantitative or qualitative studies. All conceptual tests can be rationalized with a few solid partnerships through the framework of a robust expression of needs and energetic leadership.
• Reintegrate effectiveness measurement into the launch of an ad hoc study to choose the right methodology.
• Verify the overall consistency of the system for all stakeholders: from product managers to General Management / Finance departments who are fond of dashboards, including sales teams in the field and marketing teams.

An ad hoc study aims to trigger an action, to help make a decision, to convince a client… it must be able to generate objectively measurable effectiveness. Reintegrating this measure of effectiveness into the selection process will also help choose the most appropriate methodology and the right level of investment.

We have identified 4 levers that have a significant impact on the design of the study to be carried out: questions to be anticipated in the needs expression and briefing phase in order to improve performance.

1- Timing

Whether it is the time taken to process the data or the time taken to collect it, the timings must be in line with the needs of the study: are we reacting to a rapid action or anticipating one? Is it a follow-up tracking over time or a one-off study?

2- The source

Is the data accessible through sampling or through third-party data (checkout, loyalty cards, etc.)? Is it necessary to question a specific sample and is it easily qualified and available? Questioning your own customer base or a behavioural target representative of the population will obviously not have the same cost.

3- The methodologies

The methodologies for collecting and processing the data must also meet the needs of the study: is it enough to collect information? Are we looking to find out about unconscious motivations, to find indirect correlations that will require the implementation of statistical models?

4- Manpower

The work of analysis, interpretation and support is also a variable that should not be underestimated to ensure the effectiveness and success of the project both within the company and with the research institute.

Identifying the right KPIs upstream of the research will enable its ROI to be evaluated downstream.

A marketing team that is well versed in these subjects or a dedicated research department must ensure this continuity in order to centralize, challenge and respond to operational needs and thus optimize the effectiveness of research budgets. It is through this requirement that they will escape the « nice to know » label that they may be given and will equip management & business teams in a decisive way to grow revenues.