Why you need market research

July 30, 2021

I bet you have KPIs in front of you that you need to reach on a regular basis. I certainly do!

For you, are they related to your company’s ambition to be more “outside-in” and “customer-centric”? It’s been trending with many brands these years. Quite possibly, this has already translated into an increasing demand for consumer insights and a rapid rise in the use of data (ESOMAR, Users & Buyers Global Insights Study 2020).

At the same time, 95% of product launches fail as Harvard professor Clayton Christensen has famously concluded. 

So, what’s the missing link? 

Market research.

Market research that delivers quality data and lets you draw meaningful insights.

I know this possibly makes you flinch, because you are already doing a lot of research, data analysis and in general probably overflowing with consumer insights. But if your consumer insights flow is not yet streamlined to feed into your innovation process at each stage, you risk having data but no insights.  

 

Market research should provide you with competence, tools and motivation
I recently read that to reach a result in a company, three things are compulsory prerequisites: competence, tools and motivation. What has market research got to do with it?

 

1. Market research will give you competence to understand what is happening with regard to your consumers, where their attitude is shifting, what are the things they think and care about, what they expect from the market. Market profiling, client journey analysis and general consumer segmentations give you the opportunity to have a broader understanding of what is going on “out there”. 

 

2. Market research will give you tools to make decisions - maybe you have a conflict of opinions, maybe a board of directors and the CEO have different views on the market, are stuck and cannot move forward. Market research would give a third-party evaluation on the situation in the market, present an unbiased view, and serve as a point to start from or be the basis for a further dialogue. Concept qualification, concept testing and other types of tests feed you the necessary information.

 

3. Finally, in many cases, market research will also give you motivation to continue striving for results because it will bring clarity as to which direction to go, which option to pursue, where to put your energy and/or money. Usage & attitude tests, campaign effectiveness studies and brand tracking are the research types that put you, your market offerings and your market approach into the relevant perspective.

Summing up, a structured market research setup throughout your processes is the prerequisite for you to reach your customer-centric KPIs - and reduce or decrease risk of launching new products and offers that are not commercially sustainable.