Entering a domestic market is one thing, but expanding overseas is something else entirely. Moving to a new, international market comes with a range of unique challenges that require a strategic approach with empirical methods.

It’s crucial to understand and anticipate these differences to avoid nasty surprises and give yourself the best chance of success when entering a foreign market. This article will explore the key differences between market research in international and domestic markets.

How are international and domestic market research similar?

While the differences are vast, there are also some areas where domestic market research is similar to its international counterpart.

For example, certain research methods work well in both environments. Including:

  • Interviews
  • Surveys
  • Focus groups
  • Secondary research
  • Experiments 

For example, certain research methods work well in both environments. Interviews, surveys, focus groups, secondary research, and experiments work well domestically and internationally. The way you analyze and process the data you collect will also stay roughly the same.

That said, the actual day-to-day process of market research in an international environment can sometimes be drastically different from what you’re used to back home.

What are the differences between domestic and international market research?

1. It’s a different culture.

No matter how similar, every international market has nuances in its culture. This culture may be akin to your home market, like the US and Canada, or radically different, like the UK and Japan. But even with very similar cultures, there will still be significant differences to consider.

Here are some ways cultural differences can impact market research:

  • Language. Interacting with the people in your market, understanding the culture, and conducting research are all much harder in a foreign language. You’ll often need to hire translators to communicate effectively, and it’s easy for crucial details to get lost in translation. Note – this also includes different dialects within the same language.
  • Expectations and preferences. A product or service that works exceptionally well in your domestic market may fail dismally abroad simply due to different tastes and cultural norms. Understanding this will need to be a key part of your research. One of the most obvious examples of this is when McDonald’s adapted its menu in India to cater to the aversion to beef, offering vegetarian options to align with local preferences and gain broad acceptance.
  • Causing offence. It’s essential to respect the local culture in your target market and avoid offending with your research techniques. Everything from linguistic choices to the clothes you wear should be considered and researched beforehand.

Your research must be carefully designed to address these concerns and also work within them — certain types of research may not work very well in an overseas market.

2. There may be infrastructure issues.

If your business is based in a developed, industrialized part of the world, you may take some aspects of market research for granted. Things like reliable postal services, easy access to large venues for focus groups, and widespread internet connectivity are not a given in many parts of the world, which can significantly impact your research. World Bank conducted a study assessing the impact of infrastructure on economic growth and competitiveness and discussed in depth how inadequate infrastructure in certain regions can hinder market research efforts.

Working in a new overseas market entails new infrastructure challenges. For example, in a country with poor smartphone coverage, you’re unlikely to have much success with in-app surveys or SMS questionnaires. These challenges can quickly mount up and lead to unexpected delays or setbacks in your research.

3. International market research involves higher risk.

Overseas markets involve more variables than domestic ones, so there is more scope for failure. The good news is that you can tap into more potential growth in an international market, but this extra reward comes at a higher risk.

Many overseas market entry attempts fail because there is so much more to be aware of and so much that can go wrong. Failing to anticipate certain conditions or challenges, like slower transport and shipping, can lead to major delays and significant losses.

You’re entering what might be a completely different market from anything you’ve known before, with a huge amount to prepare and consider. This means research is essential and must be much more rigorous than your home market. It would help if you did everything possible to anticipate risks and minimize your chances of failure.

4. International market research comes with a higher cost.

Conducting market research always costs money, and that cost can be substantially higher in a foreign market than at home. There are several reasons for this:

  • You need to do more research in general to gain a solid understanding of a completely new and different market.
  • You need to hire a range of staff on the ground like translators and people to carry out various research tasks. Unlike in your home market, where you can repurpose some of your employees, you need to vet and hire entirely new people in a new country.
  • You need to hire venues. Again, you can’t just use your premises if you haven’t established a presence in your target market, which means you’ll need to hire and pay for venues like conference centers for research activities like focus groups.
  • You need to build an entirely new research infrastructure from scratch. This includes planning postal campaigns, building software for in-app surveys, collecting email addresses, and much more.
  • Setbacks will happen. Doing anything in a new foreign market is complex, and you’ll encounter many delays, unexpected problems, and barriers at first. These can significantly disrupt your research efforts, costing time and money.

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5. You need to understand your competitors more than ever.

It’s always necessary to understand your competition, which is a key component of any market research process. Unlike a domestic market, many of your competitors may be completely unknown to you in a new international market.

To stand a chance of success in your target market, you need a firm understanding of why your competitors are successful. Who do they appeal to? What needs do they address? What have they done recently? What are their vulnerabilities? And, of course, what can you do better? Understanding your competitors should be a central part of your market research when entering an international market.

6. You need to anticipate legal differences.

One of the most important factors to consider when conducting international market research is the legal framework in your target market. For example, many countries legally require you to have research permits, and going ahead with your research without obtaining the correct permission can lead to costly penalties and setbacks.

In some cases, you may be required to provide a copy of survey questions to governments beforehand. And in many parts of the world, bureaucracy slows things down significantly, and it can take weeks for permits to be approved, which is something you have to anticipate.

7. You need to analyze and process results the right way.

In international market research, it’s not just collecting the data that matters. It’s also essential to process your results correctly, ensuring you draw the right insights and reach accurate conclusions about your target market.

To do this right, you need to understand the cultural context. For example, some cultures like America tend to be more extreme on surveys, gravitating towards one end of the Likert scale. Other cultures like China and Japan tend to prefer more neutral answers.

These differences impact not only the way you design surveys — for example, opting for a four-point scale with no middle option — but also the way you analyze results. A set of results in one culture may have different implications for your business than the same set of results in another part of the world.

8. It’s more important to work with the right research partner.

Research partners are an essential part of all market research. Their teams consist of skilled and experienced professionals with a firm grasp of research and analysis methods and how to apply them to gain valuable insights for your business. In an international market, it’s even more important to select the right research partner who already knows the new market.

Take the time to research all your options. Your chosen partner should have experience working in your target market and should have an in-depth knowledge of the various cultural, economic, legal, and social conditions.

International market research is an entirely different process from the research you’ll do at home. It comes with countless new challenges, hurdles, and risks. If you work with the right people, with the right set of skills and experience, you’ll maximize your chances of success and give your business the best possible chance in your target market.

At Kadence, we have experience doing international market research for clients worldwide. Contact us to find out more about how we can help you. 

Want more information on conducting international research? Read The Essential Guide to Conducting International Research here.

A successful product is one that not only looks great but also solves a real problem. Ticking off both boxes requires understanding your customers’ motivations, goals, and behaviors—and user research is the best method for gaining those insights.

User studies are conducted in person traditionally, but it’s possible to accomplish the same goals in an online environment.

Remote user studies can provide rich data. They’re ideal if you work with a global audience, need alternatives due to lockdown or distancing requirements, or face budget and time constraints.

This article will examine how to conduct user studies in an online environment. We’ll discuss the benefits of usability studies, compare lab studies vs. online studies, and share essential research methods and tools.

What is a User Study?

User research is the study of target customers’ needs and their behaviors in achieving them. The aim is to uncover insights that will assist in designing products that best meet user expectations.

There are two broad categories of user research:

● Quantitative: What’s happening; measurable, numerical results (ex: how many people clicked a button?).

● Qualitative: Why it’s happening; motivations behind the behavior (ex: why didn’t some people click a button?).

Researchers usually start with qualitative research to discover customer needs and motivations and test their initial designs using quantitative measures.

There are also two basic approaches to user research:

● Attitudinal: Listening to users’ words (ex: interviews, surveys).

● Behavioral: Watching their actions (ex: card sorting, usability testing).

The best user research applies quantitative and qualitative research and attitudinal and behavioral approaches.

The Benefits of Usability Testing

Used correctly, user research should lead to a product, service, or website that better meets the specific needs of your customers. 

When people feel like you “get them,” they’re likely to:

● Buy more quickly the first time.

● Spend more money.

● Make more repeat purchases.

● Remain customers for longer.

● Tell others about your product, service, or website.

Increasing customer acquisition, retention, loyalty, and referrals will positively impact your bottom line. User studies can also improve ROI by minimizing design and development costs and reducing support calls.

The more complex your product, service, or website, the greater the risk of skipping user research. 

Unfortunately, many companies bypass user studies. They don’t want to invest time or money, or believe they already know what their customers want.

Basing design on unvalidated assumptions can lead to wasting time, resources, and money on a product, service, or website that flops—and you won’t know if you’ve missed the mark until after launch.

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How to Conduct User Studies

While user studies are most effective and efficient when performed early in the development process, it’s never too late to conduct this type of research.

To begin, set concrete goals. What are you trying to learn? What do you want to understand about your users? What problem are you trying to solve? Write a research brief that asks straightforward questions that lead to definitive, measurable answers.

Next, choose your research method or methods wisely (more on the most common methodologies next). Don’t simply pick what you know best. Take time to consider which methods are most applicable to your specific project.

After completing the user studies, share your findings. The results are only helpful if clearly communicated with key stakeholders, including product or website designers and developers, marketing managers, and C-suite leaders.

It’s vital that these colleagues understand, believe in, and know how to act on the data.

Finally, remember that user research should never end. It’s important to continue learning from your users. The marketplace and technology evolve, so must your product, service, or website.

Research Methods

The most common user study methods include interviews, focus groups, surveys, card sorting, A/B testing, and usability testing. Let’s look at the pros and cons of each research methodology.

●     Interviews

Asking non-leading, open-ended questions with a user to learn about their attitudes, desires, and experiences. 

Pros: Provides the most detailed information, can see non-verbal cues

Cons: Expensive and time consuming to conduct and analyze

●     Focus Groups

Interviewing several people at the same time. 

Pros: Increased reach, reduces time and expenses

Cons: Potential for moderator bias, loudest users can influence others, difficult to analyze

●     Surveys

Gathering quantitative and qualitative information from users via (typically anonymous) questionnaires.

Pros: Easy, inexpensive, most expansive reach

Cons: Low response rates, poorly worded questions can skew results, limited ability for follow up

●     Card Sorting

Asking users to categorize a set of terms to understand how they organize information.

Pros: Quick, simple, and inexpensive to perform

Cons: Provides limited information; analysis can take time

●     A/B Testing

Showing two different concepts to an equal number of users to determine which better accomplished a specific goal.

Pros: Conclusive answers to specific questions

Cons: Limited use cases, limited data, time-consuming

●     Usability Testing

Observing users perform predefined tasks.

Pros: Measures actual behaviors (not perceived preferences)

Cons: Expensive and difficult to run

Online Studies vs. Lab Studies

Many types of user research can be conducted remotely. In fact, online user research has key advantages over traditional testing.

● Reach: Access to an unlimited geographic area allows for a larger pool of participants.

● Environment: Users are in their space using their hardware and software, which creates a greater comfort level.

● Cost: Eliminating travel expenses and reducing logistical challenges makes remote studies quicker and less expensive to complete.

● Neutrality: Less potential for bias introduced by a lab setting and/or a moderator’s body language.

● Flexibility: Online research bypasses potential barriers, such as lack of transportation or a global pandemic.

Despite these myriad benefits, there are reasons that online user studies may not be feasible or preferred.

● If information security is paramount, it’s generally more challenging to maintain control over online proprietary information (and user data).

● If your user base is mainly rural or lower-income, you may find it challenging to find participants who have reliable high-speed internet connections.

● If your study depends heavily on tracking a user’s movements or interaction with a product, it may not be possible in a virtual setting.

Moderated vs. Unmoderated User Studies

Remote research is divided into two categories—moderated and unmoderated.

In moderated sessions, a facilitator speaks directly to participants and guides them through questions and/or tasks. 

This type of qualitative research provides the most in-depth insights into precisely what users think and do and why. They are also more expensive and limited to the availability of a trained moderator.

Unmoderated studies are conducted online at the user’s convenience. Participants follow on-screen instructions and are encouraged to speak their thoughts aloud, which are recorded. 

This type of research doesn’t allow for explanation or follow-up questions, which can create confusion and limit the quality of feedback. On the upside, you can run unlimited sessions at all times using a variety of online technology solutions at a lower cost per participant.

Recruiting for Online User Studies

Whether you choose moderated or unmoderated studies, it’s important to ensure that participants fit your user base or target audience. The right users make all the difference in the quality and usability of your results.

Generally, the most reliable recruitment will happen using your database of customers. If that doesn’t exist or doesn’t produce enough participants, however, you can also try:

● A recruitment agency or panel company can find specific participants but will be costly.

● User testing software companies that specialize in recruiting, which will generate a list of participants who applied for your project through a project board or email blast.

● Posting on social media outlets like Reddit, Craigslist, and Linkedin. In this case, it’s important to screen potential candidates because almost anyone could see and apply.

● Asking family and friends is a low-cost solution, but could be create issues of bias and mismatches with your actual user base.

How to Choose the Best Research Method

Some types of user research (interviews, usability studies) are easier to recreate online than others (focus groups, card sorting). 

The ideal situation is to combine insights from multiple types of user research methods and testing rounds. However, it can be time and cost prohibitive to implement several methods in the real world.

Generally, in-person moderated studies are the best choice if your study requires hands-on participation and has a lot of room for confusion. To conduct these studies online, it’s imperative to consider all potential challenges and to thoroughly test the study before recruiting actual participants.

If you’re most concerned with asking open-ended questions that elicit a great depth of insights, a moderated study conducted online will be a great choice.

If your budget is tight or you’re most concerned with getting a larger quantity of responses, a remote unmoderated study is probably the best option.

Best Practices for Moderated Remote Studies

Moving from moderating in-person research to remote research can feel like a big shift, but by and large, a lot of the practices stay the same. 

Here are some best practices for conducting remote moderated testing.

Study design

Shifting from in-person to remote moderated research requires thoughtful preparation. Start with the problem you want to solve or the hypothesis you want to test, and create questions or tasks that address it.

Qualitative methods can generate a lot of information. When every question or task has a clear purpose, you’ll waste less time, reduce participant fatigue, and avoid “analysis paralysis.”

Knowing exactly what you’ll ask also helps identify where you’ll need tools to support your online research (read more about virtual research tools below).

Also, decide who will observe sessions. Allowing developers, project managers, marketers, and others to witness (and even engage with) the research can increase the likelihood that the results will be understood and put to use.

Make sure observers know in advance of the research session what’s expected of them. Should they mute themselves? What types of questions, if any, can they ask and when? How should they communicate with you or each other during the session?

Session management

Before jumping into your research, create a welcoming atmosphere. Let participants know that you appreciate their time and value their input, and review confidentiality measures.

Disclose upfront whether there are observers and if they will also ask questions. Share the session length, the types of questions or tasks they can expect, the desired answer complexity. 

Confirm that users have—and know how to use—anything necessary for the session. Let them know what to do in case of technical difficulties.

Ask permission to record video and/or audio, and both the moderator and user should turn off any potential distractions.

During the session, observers should take notes on any insights they have about what the participant says or does

End the session by thanking participants for their time and insights, and letting them know how they’ll receive any compensation.

Stop the recording when participants leave or leave it on if your team plans to stay and compare notes about the session.

Data analysis

After all of your remote research sessions, gather all observers’ notes and work together to distill the findings. Look for and discuss patterns and themes and how the team will apply the information to your product, service, or website.

Any tools you’ve used may also produce data, which may need to be aggregated before analysis and compilation with your team’s findings.

Best Practices for Remote Unmoderated Studies

Instead of having a human direct the study, unmoderated research relies on a software application to instruct users, ask questions, and record their actions or answers.

By and large, remote unmoderated studies share the same best practices as those above for moderated research. However, there are a few unique considerations to keep in mind.

Study design

Start with your problem or hypothesis and create questions or tasks that address it. Beware that clarity is paramount without a moderator offering explanations or answering questions. 

Make instructions explicit, so users know exactly what to do. If you’re asking participants to record themselves, include clear triggers so they know when they should start and stop. Be specific with open-ended questions to avoid rambling responses unrelated to your goals.

Run a trial session to uncover any ambiguous instructions, questions, or potential problems with the study design or technology. Replicate actual testing situations by using real participants with their equipment.

Finally, a 10 to 15 percent drop-off rate is typical in unmoderated studies, so plan to recruit more participants than you need.

Session management

Lower your drop-off rate by recording or writing a warm welcome that thanks participants for their time and insights.

Also, be clear up front with instructions and expectations. Let the user know exactly what they will be doing and how long the session will take. 

Before they log off, include a final thank-you message and any information about compensation or follow-up they may receive.

Data analysis

Unmoderated studies can accumulate a lot of data and typically require extra manpower to analyze. 

Quantitative data is straightforward. The testing tool will automatically collect and generate data visualizations for metrics like success rate, task time, and ratings.

For qualitative data, however, you’ll need to review interview questions and session recordings to take notes on user behavior and identify positive and negative reactions.

Unmoderated testing tools with robust video analysis features can help by aggregating, exporting, sharing, and visualizing any notes you add to recordings and creating compilations of important moments.

Tools for Remote User Studies

Conducting user studies online necessarily requires software or apps. There are many options available (at a wide range of price points) for every type of research task.

● User Recruitment (Respondent, Ethnio)

● Video Conferencing/Recording (Zoom, Google Meet, Skype, GoTo Meeting)

● Note-Taking (ConfirmKit, Pear Note)

● Transcription (Rev, Reduct, Otter.ai, Trint)

● Surveys (Alchemer, Typeform, Survey Monkey, Survey Legend, YesInsights, Survicate)

● Usability Testing (Lookback, PingPong, UserTesting, Loop11, Userbrain, Userlytics, UsabilityHub, UserZoom, FocusVision, Qualtrics, InVision)

● A/B Testing (Optimizely, VWO)

Conclusion

User research is a crucial method for validating assumptions about your users’ needs and experiences. Done well, remote user testing can provide rich data that will help you understand how your target audience interacts with your product, service, or website.

Unfortunately, user studies are not “one size fits all.” There are many methods, each with distinct advantages and disadvantages. The choice depends on your goals for the type of data you want to gather.

Conducting user studies in the online environment isn’t always the best option. Still, it can be incredibly helpful if you’re working with a global audience, are under budget or time constraints, or face limitations due to the COVID pandemic.

When designing a new product or service, or upgrading existing ones, probably the most crucial question brands can ask themselves is: What will our customers think about this? 

Companies that plow ahead without undertaking relevant research up-front can sometimes miscalculate what will satisfy the users of that product or service—thereby placing their company’s prestige and sales track record at risk.

User studies (also known as “user research” or “UX research”) play a crucial role in significantly minimizing that risk for organizations. 

The objective is to understand how well your product or service meets current needs and help make informed decisions on new product upgrades or launches before committing vast amounts of time and resources to the venture. 

Through user studies, “we can validate or disprove [a] hypothesis early on in a product/service development,” notes Medium. Since the “cost of this would be much less than developing something which no wants to use after,” it’s clear that user studies have “an invisible ROI: the spared cost of doing something useless.”

In the end, the desired outcome of user studies is a closer alignment between what a brand has to offer and the needs and expectations of its targeted customers.

How User Studies Benefit Brands

A wide array of beneficial results grows out of expertly crafted user studies. The key, as we have noted before, is knowing “what you’re looking for with each type of user study.” 

In many cases, companies frame their goals around:

  • Getting clarity about brand positioning to build a firm foundation for what is planned next 
  • Leveraging fresh user experience data that challenges long-held assumptions
  • Creating a clear benchmark for new product development or planned expansion into new markets

Also, a user study can help organizations “measure the impact of events or major changes—not just after a marketing campaign or change to a product, but in the wake of shifts in the environment”—including such world-altering events as the global Covid-19 pandemic.  

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User Studies and Product Design

Product designers depend upon user research to help guide them towards adding or modifying features that best suit consumer needs. The data acquired through these studies enables designers to avoid these critical errors:

  • Potential technological glitches
  • Gaps between what an existing product does and the state of current consumer needs and pain points
  • Manufacturing products that turn out to have minimal market demand

Design teams often “design for how they want the user to act,” notes MentorMates. By using consumer behavior data gained through user studies, “designers can instead design for how [customers will] actually act.” This leads to a final product that “feels less like an artifact” and more like what customers genuinely need. Both product designers and the ultimate end-user benefit from the results in this process.

Effective user research for product design includes these methodologies:

Conduct an online survey. With a testing survey, you can reach large audiences of targeted customers and get an informed idea about what’s important to them. This is an excellent way to test various concepts, better understand their appeal, and determine which concepts should be moved forward for further testing.

Use conjoint analysis to see what consumers value. Conjoint analysis measures the value consumers place on a product’s specific features. Usually, data emerges from survey questions in which participants are shown a combination of product attributes and asked to compare or rank them. 

Employ qualitative methods such as guided group discussions. In online communities or through face-to-face focus groups, groups of potential consumers enable researchers to drill down into product features genuinely favored by the target audience. Qualitative research can also uncover unforeseen customer needs, inspiring further rounds of innovation, with the bonus of getting a jump on the competition.  

Sometimes designers and product teams become too enmeshed in the development process to make the most effective decisions about how to proceed. UX research enables them to assess authentic feedback from target customers, so no crucial elements are overlooked in the design process. 

Added Benefits of User Studies

Brands can benefit from tapping into the user experience in numerous additional ways. 

Let’s say a design team has come up with a half-dozen “great” ideas about a new product. In general, many of these design ideas will fall short of expectations or prove too costly to implement all at one time. But the chances of success (and acceptance by consumers) sharply increase when user research methods identify the most promising of those ideas. 

Design teams are very good at what they do. But they can’t succeed in a vacuum. Without pinpointed UX research, they may rely too much on their instincts and miss out on what consumers really want. An organization can benefit enormously when its design team learns to incorporate a steady input of user experience data into further research and design.

As with any scientific endeavor, there’s always the chance that an “aha moment” can dramatically shift the focus of research into more promising avenues. Extensive user studies facilitate the greater likelihood of encountering those “aha moments” around design features and attributes that might otherwise be overlooked.  

Tips to Get the Most from User Studies

As discussed, the importance of user studies—for new product development, customer satisfaction, and retention, etc.—can’t be overstated. To gain the most benefit from the process, keep these tips in mind:

  • Determine ahead of time whether you want general background information on consumer needs and preferences or if you’re seeking specific, in-depth usage patterns
  • Define what is possible to alter in the development phase based on the results of a user study. 
  • Be sure to ask specific questions when surveying targeted users so everyone has the same reference points for the survey. 
  • Identify a baseline, or neutral starting point, for people’s assumptions and ratings, thus enabling an objective interpretation of results.
  • Incorporate research into competitor brands (even smaller or niche brands) when assessing user research findings.

With the necessary parameters in place, it will more effectively translate the results of UX research into concrete product design and development efforts. 

Where to Go Next with User Studies

A user study should never be a “one-off” proposition. After all, the customer journey isn’t a static experience. User studies differ widely from one segmented audience to another, and over time can alter dramatically due to unexpected external factors. 

For these reasons, forward-thinking brands commit to ongoing research into customer needs and pain points. They can benefit from gaining insights into shifts in market trends well before the competition does, enabling them to be first in addressing emergent consumer needs. That’s one effective way of capturing market share before your competitors do. 

Finally, it would be best to communicate any changes you make to your product or service based on consumer research to the target audience. Don’t hesitate to share the story of how your focused research identified the challenges customers face and the efforts you took to address those challenges. This alone demonstrates the depth of your commitment to a valuable customer experience—which in turn generates more trust and engagement with your brand in the long run. 

Feedback loops that incorporate user research data also help ensure that your brand’s unique selling proposition is consistently re-validated and that everyone within the organization sees the importance of serving customers’ needs. There may be no more effective tool to add to your brand’s arsenal today and in the future. 

For some, 2021 is a year best forgotten. But from a marketers and researchers perspective 2021 certainly revealed some interesting insight into changing consumer behaviors and demands.

Here we have compiled the best of our trend reports and guides from 2021 all in one convenient place.

This report is specially designed for companies looking to grow their presence in Asia and is based on the analysis of local experts across Kadence International’s 8 Asian offices.

DOWNLOAD the full report here

Getting the Most from your Research Budget

We developed a framework for getting the most out of your market research budget, which could be useful as you plan your projects for any year.

DOWNLOAD the full report here

The Ultimate Guide to New Market Entry

This guide covers when to consider entering a new market, how best to approach the research you’ll need to support you as well as practical information on the different market entry strategies available to you. 

READ the full guide here

Segmentation in Uncertain Times

The pandemic has caused people’s behaviors, wants and needs to change. Segmentation is an important tool to understand your target better, but also to help identify new or emerging expectations from brands.

WATCH the full 12 minute video here

Harnessing Augmented Reality

In this groundbreaking package testing research, we partnered with Asahi and their signature brand Fuller’s London Pride using augmented reality to garner feedback on new product labeling. This innovative approach resulted in great data, a satisfied client and numerous awards within the research industry.

LEARN more about the test and watch the video here

Health and Wellness Trends

If there was ever a year when health and wellness was at the forefront of consumers minds, 2021 was it. We looked at some key global trends that are emerging, and the behaviors and expectations fueling these trends.

DOWNLOAD the trend report here

Singapore has reigned supreme as a lucrative market for domestic and international businesses, and according to many economists, it is the best country to do business. 

So, what makes Singapore a favorable market for international companies?

Singapore’s location makes it an ideal place for foreign investments. The world’s busiest port and a pro-business environment position Singapore as an attractive market for foreign companies to expand into the Asia Pacific. 

#1. Singapore presents an excellent balance of East and West. 

Given Singapore’s colonial past and diverse population, there is much familiarity with many Asian, European, and American cultures. As a former British colony, Singapore’s legal, administrative, and taxation models are similar to those in the UK and the US.  

“Singapore builds itself on this position of being kind of like a trading post,” said Philip Steggals, Managing Director at Kadence International Singapore. 

Furthermore, English is widely spoken, and adopting a Western lifestyle has made Singapore an ideal international market. At the same time, Singaporeans are proud of their heritage, so it’s an excellent market for other Asian countries to enter. Therefore, Singapore is an ideal mix of the east and west and embraces everyone. 

#2. Singapore’s economy is very business-friendly. 

Geographically, the island of Singapore is small and lacks natural resources. Therefore, the economy relies on international operations. It has also focused on building a large manufacturing industry, making it a significant export market for the US. 

“The Government very much has that mantra of helping people either come into the country or helping people in the country expand regionally to grow their business and improve everybody’s lives,” Philip said. 

The government has also implemented economic policies to promote international trade and has a friendly business model. Foreign businesses are subject to the same laws as local businesses. 

Businesses can also use agencies to get the help they need to secure capital and set up their Singapore entities. 

“IE Singapore or Enterprise Singapore sits under the administrative trade, and it facilitates overseas growth of Singapore-based companies, regardless of nationality,” Philip said. 

There’s another entity called Spring, which plays a similar role in growing enterprises. 

“Spring is the place to go where you get quite a lot of government grants as well — the sort of tech investments and grants, which any small-to-medium-sized company can benefit from,” he added. “Then there is the Economic Development Board that also helps businesses. So the message is that if you are in Singapore and want to grow, we will help facilitate that process.”

If you have a good product or service, you could quickly expand it in Singapore. And if you’ve got a product or service that you’ve replicated quite well, Singapore is a great, safe, predictable market to grow it. 

The legal help you get in Singapore is very transparent and secure. With sound financial systems, it is easy to get loans. If you are an SME, you can walk into one of the local banks and set yourself up with all the business accounts you need, likely on the same day. Many banks accept digital signatures and allow the opening of bank accounts online. 

 “You can also easily find advisors who will help you grow into other markets or advise you on how to grow your business in Singapore,” Philip added. 

There is a massive opportunity for external investment, and international businesses own their companies 100% when they expand to Singapore. 

Geographically, being a small market, it’s easy to meet people, even in times of a pandemic, because everyone lives in a small area. “You can network quite easily, and you can find somebody that will have the right skillsets or advice for what you need,” Philip said. 

fitness-tech-trends

#3. Singapore also offers attractive tax laws to international companies entering the City, State. 

The government offers attractive tax incentives to businesses in Singapore. 

#4. Access to ASEAN.

Despite the small market, Singapore is well-known globally for its IP strengths and easy access to the broader ASEAN region. 

Top industries in Singapore

Tech, fintech and cryptocurrency, cyber security, and mobile payments are some of the fastest-growing industries in Singapore. FMCGs and food franchises from well-established brands overseas do very well. 

“Singapore is a center for tech and innovation excellence. We have a lot of people that would typically be involved with big multinational companies setting up innovation hubs here or bringing their regional headquarters into Singapore,” Philip said. 

Main challenges of doing business in Singapore

More than 99% of all imports enter Singapore duty-free as a free port. It levies high excise taxes on distilled spirits and wine, tobacco products, motor vehicles, and gasoline.

Other industries that pose challenges for international companies include livestock and services barriers that restrict satellite dishes, pay television, legal services, banking, and healthcare procedural transparency.

Philip listed three main obstacles for companies trying to build a subsidiary in Singapore.

“While it’s fairly easy to set up a business in Singapore, it’s a challenge to bring in mid-to-low-level employees, which then gives you two options. You either have to come in with some top trainers, or you have to come in and know that much of the work will be done by people that aren’t necessarily familiar with the business,” he said. 

“If you want to set up a business, you should be able to show that you are going to employ locals and, you’re going to train them so that they can eventually take over running operations and have more senior roles.”

“The job creation equation is what Singapore is looking for when you set up a business, so you should have a plan on employing Singaporeans,” he added. 

There is also fierce competition with other countries trying to enter Singapore, so international companies should be aware of this. 

Impact of covid 19 restrictions

Singapore has had some of the most stringent lockdowns during the pandemic. 

As a result, some businesses have shut down during the pandemic, and others have accelerated in Singapore, despite strict COVID-19 restrictions.  

“I think the pandemic has just accentuated what was going on beforehand,” Philip said. “However, one of the issues has been a shortage of labor force coming in from other countries. Many expats have also left the country due to stringent COVID-19 restrictions.”

keeping-up-with-Gen-z

What do Singaporean consumers want?

Price, quality, and service are essential factors for consumers in Singapore. International companies entering Singapore must know that the buyers are discerning and that the competition in the market is intense. Singaporean consumers also like products and services that are well-established in their home countries and have a story or history behind them. 

So, from a consumer standpoint, what are Singaporean consumers’ key considerations? 

According to Philip, that depends on the category. 

“We did some research on the luxury purchases made in Singapore and Asia. Consumers want to see some heritage and a well-defined story of where the brand is from and why it exists when it comes to the high-end market,” he said. 

“The German manufacturers do very well in the automotive market, and a sense of prestige is associated with the well-known European luxury car manufacturers. There’s also a significant segment of people that are very practical and go for Hondas and Toyotas.”

Food and beverage outlets do very well if they are well-established in their home market. Brands with their roots in China or Taiwan for some novelty-type items and popular brands in Japan also do very well, as do Korean skincare brands. 

In a nutshell, Singaporean consumers like understanding the brand’s roots, why it’s now Singapore, and what it’s doing. They are a discerning populous and are looking for quality products and services. 

Selling and distributing products and services in the Singaporean market.

Selling techniques utilized in Singapore vary by product and are similar to sales practices in sophisticated western markets. Social media and online marketing are growing in Singapore, and it is essential for international companies that use agents in Singapore to visit them regularly. 

“Many of our clients at Kadence have their regional offices in Singapore because of a very transparent legal system. The government is also very predictable and pro-business, so if you’re going to set up a regional base, Singapore is the perfect place for it,” Philip added. 

A favorable time zone gives it another advantage and makes it suitable for business. The commerce or distribution networks from Singapore to Southeast and North Asia markets are straightforward.

“Moreover, the ease of commuting makes Singapore the perfect base for operations. It’s also typically relatively easy to get visas for higher-paid staff members here, and it’s not considered a hardship posting to be based in Singapore, regardless of your home country,” Philip said. 

How to strategize market entry into Singapore

If you have a successful product or service in your home country, expanding into Singapore is a good idea. One cannot emphasize the importance of a concrete market strategy and solid business plan for market entry into Singapore. 

Over 4,500 US firms have launched business enterprises in Singapore. Many international exporters use agents and distributors to enter Singapore. These agents and firms aggressively represent new products and services in Singapore. Therefore, it is invaluable to find suitable partners and utilize agents.

The top three strategies that subsidiaries can utilize when planning entry into Singapore are:

1. Identify your growth plan. Singapore as a market is not very large unless you are a McDonald’s type company. But for most industries, your potential is relatively small. The population is 5.7 million, so you must identify where else you can go. It would help to calculate your maximum potential returns based on your target audience. For companies entering Singapore, knowing that growth plan would be substantial.

2. You need to have a sound training system. As a small company with one or two people set up like a distribution hub, you will probably be fine, but as soon as you start growing, you will be expected to recruit more Singaporeans. Therefore, you will need to have training in place. 

3. Do your commercial research. The government is pro-business, so you must research who to ask for help and what benefits you can receive. 

Political and economic stability in Singapore

Singapore has had the same government since its foundation. 

One of the reasons behind Singapore’s massive growth over the past five decades is the consistency of government. “You can put long-term visions in place without your political parties, flipping it as a political winning system to get elected,” Philip said. 

Singapore has shown phenomenal growth in the last ten years and will continue to grow as it is a great place to live, do business, and is devoid of red tape or bureaucracy. 

The next 50 years will present new challenges to Singapore in the form of an aging workforce, a maturing economy, social media’s growing influence, and increasing competition from other trade agreements and ASEAN partners. However, it remains an attractive market to enter and shows phenomenal potential in years to come.

We would welcome the chance to discuss your next market research project. Learn more about our Singapore Office here.

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Like virtually all aspects of modern life, the market research industry has undergone an explosive change in our COVID-19 pandemic era. While most of the principles of market research remain intact, brands worldwide have had to refine and modify their research methods as part of this “new reality.” 

Generally speaking, market research starts with a “wide-angle” look at the spheres of influence upon a market (including new and changing customer behaviors, emerging industry trends, etc.), then zooms in on specific nuances within a target audience. 

The data collection and analysis gained from in-depth market research offer brands “a clear and detailed understanding of what your customers want, what they already like, where they conduct their own research, and much more.” Understanding the broader context of a market enables companies to:

  • Gain insights into how customers use their products or services
  • Differentiate their offerings from competitors
  • Lay the groundwork for successful product upgrades or launches
  • Identify new opportunities for growth

These insights gained can set the tone and messaging for a brand’s marketing efforts both now and in the year to come. 

Here’s a look at key trends in the market research industry today and what lies ahead on the horizon for 2022.

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Trend #1: Agility and Technology

Despite the changes wrought by the pandemic and other global forces, one factor remains constant: the continual evolution of technology underpinning advanced market research.

Advances in artificial intelligence (AI) and machine learning, for example, enable researchers to gather information from an increasingly wide range of distinct sources. These advances also contribute to a new emphasis on agile research and speed of insight. Various elements include:

Automation of routine research practices. Automating the more routine facets of research facilitates a speedier analysis and interpretation of findings. This helps researchers save considerable time and effort while winnowing down to what’s truly essential in their work. 

Shorter and smarter polls and surveys. Employing surveys that can be positioned and distributed quickly (and which take respondents only a short time to fill out) are a further boon to the speed of analysis and insight. This approach involves identifying a “mobile-reliant” population that will actively engage in a poll or survey upon request, and within a brief period of time. 

Ongoing research. Agile research equals ongoing research. In a global marketplace that’s continuously in flux, the insights garnered from one survey can dramatically change by the time a new survey is undertaken. In the same respect, researchers can expand on findings garnered from one survey to craft a new, more specialized survey that focuses on changing factors in the marketplace.

As we have stated before, “when you know your offerings suit current and emerging customer needs, your business will develop a reputation for being wholly customer-centric that your competitors can’t match.”

Trend #2: AI, Machine Learning, and Emotion

If 2021 is any guide, we can expect the avalanche of raw data to keep increasing in the year to come. The vast array of sources promises to generate more information than researchers can ever hope to compile and analyze on their own. That’s why AI and machine learning are invaluable for research purposes.

Emotion AI, for example, seeks to “decode” human emotion by analyzing voice patterns, eye movements, facial expressions, and a range of non-verbal cues—all designed to generate data that enhances a brand’s capacity for linking emotion to consumer behavioral patterns. By evaluating consumer responses to a proposed upgrade or new product launch, emotion AI can more precisely “read” human feelings and gauge the success or failure of a new venture.

As MIT Sloan notes, “New artificial intelligence technologies are learning and recognizing human emotions, and using that knowledge to improve everything from marketing campaigns to health care.”

Trend #3: Social Listening

Interacting directly with customers often yields the most pertinent data for marketing trends. But engaging in social listening can be an equally effective research method.

Social listening involves analyzing social media conversations and trends related to your brand to your industry. This extends beyond monitoring basic metrics such as “likes” or “mentions” or “followers,” with a focus instead on the buyer’s mood behind the data.

Customers frequently express their sentiments about products and services on popular social media platforms (Twitter, Facebook, Instagram, etc.). Market researchers can look at this as real-time feedback about customer preferences, brand awareness, the inroads made by competitors, etc. 

In this respect, social listening offers a beneficial way of gauging customer sentiment (what they like and don’t like about the purchasing experience, preferences regarding how a purchase is made, and so on). 

For effective social listening, research methodology can include the following actions:

  • Search on the most popular social platforms for branded keywords, phrases, or product names.
  • Explore customer review sections on platforms. 
  • Learn about customer sentiments regarding competitors.
  • Anticipate potential new trends using Google Trends or other social media listening tools.
  • Identify relevant or industry-specific social media influencers.

Social listening should be “a critical component of any company’s marketing strategy, as it allows you to react and respond to customer sentiment — and gather data to make improvements in the way your business runs,” notes Reputation.com. In essence, social listening is like “your very own perpetual focus group, rich with constantly updated and actionable business intelligence.”

Trend #4: Longitudinal Studies

There has been a steady increase in longitudinal studies for long-range market research, and the trend will continue in 2022. This approach works most effectively when a brand wishes to continuously monitor a fixed sample of its target audience over a pre-determined timeframe.

Longitudinal studies, also known as continuous research, tracks consumer and market attitude trends over extended periods. To do so, researchers gather information from the same sources through a long-term methodology that yields insights into buying habits or consumer response to a new product or service launch. 

Trend #5: DIY

Another emerging trend is the do-it-yourself (DIY) approach to market research. The proliferation of agile or smart research tools enables in-house teams to conduct surveys and other research activities, often using a centralized online platform. Types of DIY market research include:

  • Interviews with existing and potential customers through surveys, questionnaires, or focus groups
  • Segmentation of the target audience into clearly defined groups (demographic, behavioral, psychographic, and geographic)
  • Product testing, in many cases, before a brand reaches the initial production stage
  • Measuring satisfaction with loyal customers

DIY research should aim for gaining “insights into how happy your customers are and any specific areas they like or dislike.” This enables brands to:

  • Identify any areas of current (or potential) concern.
  • Drill down to core issues by identifying (and then interacting with) dissatisfied customers.
  • Determine what’s needed to improve customer attitudes and experiences. 

One caveat worth mentioning regarding DIY marketing. As Forbes notes, “if you go to a third party [for market research], you’re going to likely get a different perspective than what you would get from your own team. There’s also a greater chance that the perspective you receive is an unbiased one, which is healthy” and potentially more insightful about what a target audience truly cares about.”

Trend #6: Aligning Brand Mission and Values with Customers

In 2022 and beyond, market research will continue to explore the value of aligning a company’s mission statement and the values of its customer base. 

Gone are the days when a brand could tell consumers what it stands for and leave it at that. Today’s savvy customers do their research to determine if a brand “walks the walk,” particularly concerning those values consumers hold dear—be it the environment and sustainability, income inequality, racial harmony, and so on. 

Consumers who prefer brands aligned with their values often become very loyal once they identify that brand. However, if and when customers detect a lack of consistency between what’s expressed in a mission statement and what actions a brand takes, they may abandon that company and seek out more compatible businesses to support.

In 2022, brands are encouraged to take a fresh look at their mission and values and how these are communicated to a target audience. Monitoring social media conversations around these values can illuminate the process of refining a company’s mission statement. It’s also an excellent opportunity to look into making a fresh commitment to support the causes and initiatives that a brand’s audience considers most valuable in their own lives.

Market research trends come and go, but the end result remains consistent from the past to the future. The primary objectives are always:

  • Improving products or services
  • Generating more sales
  • Delivering expected results
  • Enhancing customer service
  • Boosting customer retention

Market research supports the need for brands to maintain agility in an ever-shifting marketplace. Customer needs never remain static. If a brand meets current needs—and, better yet, anticipates future customer needs—its place in the global market will be stronger and more durable than that of its competitors.

Each year, around 30,000 new products enter the market. Nearly three-quarters of them will fail to sustain or grow sales within two years. So, how can a brand give a new product the best shot at success and make sure it reaches the right audience in a saturated market?

The solution is not to treat all customers equally, but to focus your product on a well-defined market segment with specific needs and preferences.

Reaching this level of precision requires proper market segmentation. It enables brands to concentrate their product development and marketing on the people most likely to buy.

What is market segmentation?

Market segmentation is the process of dividing a broad customer base into smaller groups that share common traits. This allows brands to tailor products and messaging to match each segment’s priorities and increase the likelihood of product-market fit.

Most brands lack the budget or infrastructure to reach a mass market. Instead, they must concentrate their efforts on well-defined segments where marketing spend is more likely to generate returns.

Segmenting the market helps brands understand why people buy, so they can make smarter investments with more substantial returns.

The narrower the audience, the higher the chance of successful adoption. Instead of pitching to a general market, segmentation allows you to place the product directly in front of people already looking for a solution.

Benefits of market segmentation

Effective market segmentation provides customer insight that drives better product design, smarter marketing, and long-term business growth.

●     Product development: Narrow segments reveal unmet needs. When a product speaks directly to those needs, competition is often limited or irrelevant.

●     Business growth: A deeper understanding of different market segments enables brands to expand strategically. Whether by entering new geographic markets, introducing complementary products, or developing new offerings for overlooked audiences, segmentation lays the groundwork for scalable growth.

●     Optimized marketing: Market segmentation gives marketing teams the insight to tailor messaging across channels. It also supports smarter media decisions, helping reduce costs while increasing campaign effectiveness.

●     Smarter distribution: Understanding your audience’s shopping habits helps refine distribution strategies. This can lead to lower logistics costs, better inventory planning, and stronger alignment between product availability and customer demand.

●     Customer retention: Segmentation builds loyalty by showing customers you understand them. When products and messages reflect their needs, buyers are more likely to return—and to advocate for your brand.

Brands that invest in understanding their customers gain a competitive edge. With the right segmentation strategy in place, they are better positioned to increase market share and improve profitability.

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The 4 Types of Market Segmentation

Types of Market Segmentation

There are four core types of market segmentation, each offering a distinct way to categorize customers based on shared traits. Understanding these types helps brands identify which audiences are most likely to respond to a product or message—and how to reach them effectively. For a deeper dive, see our guide to market segmentation.

Geographic segmentation

This approach groups customers by physical location, from entire regions down to neighborhoods. It’s particularly useful when products or services vary by climate, infrastructure, or local culture.

Geographic segmentation works well for industries influenced by weather patterns (like apparel or lawn care) and regional preferences (such as cuisine, sports, or recreational habits). Common variables include country, state, city, zip code, population density, and primary language.

Demographic segmentation

Demographic segmentation focuses on measurable factors such as age, gender, income, education level, marital status, family size, occupation, religion, nationality, or political affiliation.

This is one of the most commonly used methods because demographic data is relatively easy to obtain. A brand might, for example, target married men aged 30 to 40, earning over $100,000, who own a home and work full-time. However, while demographic segmentation provides a solid foundation, it often lacks nuance. That’s why it is frequently combined with other types for greater specificity.

Firmographic segmentation

For B2B brands, firmographic segmentation works much like demographics do in consumer markets. Instead of grouping people, it classifies organizations by attributes such as company size, industry, revenue, location, or number of employees.

This type of segmentation helps businesses tailor their messaging and offerings based on the structural characteristics of their target clients. For example, a software company may target mid-sized manufacturing firms in the UK with a specific compliance feature relevant to that sector.

Firmographics are often used in tandem with behavioral or needs-based segmentation to identify high-value accounts and shape effective B2B marketing strategies.

Psychographic segmentation

This method divides customers based on lifestyle, values, interests, personality, or social status—factors that aren’t easily captured through demographic data alone.

Psychographic segmentation requires more effort to execute. Brands typically gather this data through qualitative research methods such as surveys, interviews, focus groups, or social media analysis.

Once shared traits are identified, brands can build messaging that resonates on a deeper emotional level. For example, “We help busy moms who want to prepare home-cooked meals in under 30 minutes” is a psychographic profile distilled into a positioning statement. This type of segmentation is often layered on top of demographics to create more distinct customer profiles.

Behavioral segmentation

Behavioral segmentation is built around observed actions during the customer journey. It examines how people interact with a product or service—when and why they buy, how often they use it, and what makes them stay or leave.

Key behaviors include acquisition triggers, usage patterns, frequency, retention, and repeat purchases. While complex to implement, this approach often reveals unmet needs or high-value segments. It’s especially useful for identifying opportunities to refine existing products or launch new ones that match how people actually behave, not just how they describe themselves.

Advanced segmentation methods

In some cases, brands need more sophisticated techniques beyond the four foundational types—especially in data-rich or B2B contexts.

Statistical clustering methods, like k-means and latent class analysis, use algorithms to form segments based on actual customer behavior. These data-driven techniques go beyond assumptions and can reveal patterns not visible through traditional segmentation.

Today, many marketing teams rely on segmentation software to automate this process, generate real-time dashboards, and connect insights directly to product and campaign decisions.

For more on how to structure your segmentation strategy, explore our guide to market segmentation.

How to validate a segment

Not all market segments are worth pursuing. For a segment to be useful, it needs to be clearly defined, distinct from other groups, and grounded in actual consumer behavior. Before you commit resources to a product or campaign, test the strength of your proposed segment by answering the following:

  • What does this segment value most in a product like ours?
  • What is the primary reason they choose to buy?
  • What does their buying journey look like—including the platforms, features, and content that influence their decision?

These answers should be based on research, not assumptions. Anecdotes, internal opinions, and gut instincts are rarely reliable enough to guide segmentation decisions.

If you can answer these questions with clarity and supporting evidence, the segment is likely actionable and profitable. If not, the market may be too broad, too vague, or not yet well understood. In that case, you’ll need to refine the segment further or return to the research stage.

How to Segment the Market for a New Product

Segmenting the market for a new product involves two core stages: identifying customer segments and developing a go-to-market strategy. Each requires careful thought and disciplined research.

Customer Segments

Start by defining your objective. Are you launching a new product, refining an existing one, or seeking more profitable customers?

Next, choose the segmentation type—or a combination—that best suits your goal. Consider whether your proposed segment is viable. Is the audience too broad to target effectively, or too niche to support sustainable growth?

Gather evidence, including both quantitative data and qualitative insights. The research stage is foundational. Skipping it or cutting corners increases the risk of missing the mark.

Once you’ve identified and analyzed your target segment, use your findings to shape product development or positioning. Then, test your assumptions. Run surveys, conduct focus groups, or use polling to validate your offer or message with real members of the segment.

Go-to-Market Strategy

Build a launch plan aligned with your target audience’s preferences, needs, and behaviors. Be sure to implement tracking from the outset to measure conversion and performance.

As the campaign unfolds, monitor results and refine your approach. Marketing software can support this process by automating customer segmentation and surfacing insights through real-time analytics and visualization tools.

Market Segmentation Best Practices

Even with the right research, market segmentation can go off course. To maximize your impact, watch for these common pitfalls:

● Unaligned segments
The markets you target must align with your brand’s strategy and structure. Avoid reshaping your core offering just to fit a segment that doesn’t reflect your long-term direction.

● Segments that are too broad
Overly wide segments invite stronger competitors to carve out more defined niches. A narrow, well-understood segment often outperforms a diluted one.

● Segments that are too narrow
Targeting a group that’s too specific may limit your growth and reduce the return on your investment.

● Chasing too many segments
While it’s tempting to pursue every opportunity, spreading resources across too many audiences can weaken execution and reduce overall impact.

● Targeting people, not value
A segment may seem attractive on paper, but it won’t deliver returns if the audience lacks buying power. Focus on segments that offer both alignment and revenue potential.

● Neglecting updates
Consumer behaviors change fast, and segments that once performed well can quickly become outdated. Revisit your segmentation strategy regularly to stay relevant and competitive.

Market segmentation works when it’s grounded in real data, clearly defined, and continuously refined. It’s not complex, but it does require commitment. When done well, it creates deeper customer understanding, sharper positioning, and smarter decisions that drive growth.

Apply the Same Logic to your Marketing Strategy

Segmentation isn’t just for customers. The same principles apply to your digital marketing strategy—particularly when it comes to SEO and performance tracking.

Just as you break down your market into distinct groups, you can segment your website traffic, keyword targets, and content themes to sharpen analysis and improve ROI. Grouping your content by audience type or buying intent makes it easier to identify what’s working, what needs attention, and where to scale.

Segmentation at this level ensures your insights aren’t just sitting in a report—they’re guiding action across your marketing funnel.

Ready to Segment Smarter?

At Kadence, we help brands uncover the insights that matter most—so they can segment with precision, launch with confidence, and grow with purpose. Whether you’re refining an existing strategy or exploring new opportunities, our team brings the research, rigor, and global perspective to move your market forward.

Get in touch to see how we can support your next product launch or segmentation challenge.

How well do you know your consumer base? Can you accurately predict how the design and function of your products will best serve your targeted audience? If the time has come to upgrade your product or service, do you have a strong sense of how your customer base will respond to these changes?

These and related questions form the foundation for user studies. Gauging the quality of the user experience should always be a top priority for organizations. This is particularly true both today and in the short-term future since the global pandemic has resulted in a “dislocation to consumption patterns [that] may have lasting effects for particular brands and products.” 

The right user study can challenge and reset baseline assumptions of user behavior at the earliest stages of product design changes. According to the computer software firm Secret Stache, the four main types of user research:

  1. Primary. Information is acquired through interviews, surveys, usability tests, etc.
  2. Secondary. Design concepts are confirmed through a review of existing research materials.
  3. Exploratory. A design hypothesis is tested through experimentation.
  4. Evaluative. Determine the benefits and shortcomings of a design prototype.

“Deciding which research method to use depends on what data you’re trying to gather and where you are in the design process,” Secret Stache concludes. This information enables companies “to make informed design decisions and create better user-centered products.”

Start the Process with Specific Objectives in Mind

It’s essential to know what you’re looking for with each type of user study. Brands embarking on a user study often frame their goals around:

  • Knowing what to do (about a product upgrade, new product launch, etc.) before making a major decision
  • Challenging existing assumptions about design and customer appeal
  • Creating benchmarks for the proposed change (new product, proposed expansion, etc.) 
  • Understanding how changes in the global marketplace impact the organization

At its core, a user study “is designed to give you a firm foundation for almost any decision around a brand or product.”

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Here’s a closer look at each type of user study and their related methodologies:

Use Primary Research to Better Understand Your Customers

The ideal time to conduct primary research is before crucial decisions are made about a brand or product. The process involves compiling raw data focusing on what consumers say they want. 

To achieve this objective, it is essential to speak directly with members of that targeted audience.

Find out what buyers (current and prospective) really think by conducting interviews with a single consumer or in small groups. Put together a list of interview questions that:

  • Help put the interviewee at ease
  • Encourages them to share their individual “shopper’s journey” stories
  • Highlights what is considered the most valuable or effective aspects of a customer’s experience 

Open-ended questions are the most effective at eliciting the kind of information you seek, i.e., “What is the process by which you decide what to buy?” and “Can you describe a time when you received an unexpected benefit from the use of this product?” Avoid asking “yes” or “no” questions since they are unlikely to uncover any useful data.

Also, make sure someone on the team takes copious notes during the interview process, so no valuable responses are lost.

Field studies are another potentially rich avenue for user studies. Also known as contextual interviews, these observations and interactions focus on users in their “native habitat.” This can supplement individual and group interviews, with an emphasis on observing how customers use a company’s products in their environment. 

Primary research often yields new insights with respect to:

  • Learning more about challenges users encounter with a product or service
  • Enhancing those offerings to provide a richer user experience

Use Secondary Research to Confirm Your Findings

As noted, primary research will uncover a significant amount of information to evaluate. Interpreting all this data becomes more effective when it can be validated by secondary research. 

Forms of secondary research include relevant material obtained from:

  • Books
  • Articles
  • Market research
  • Internal studies
  • Project reports
  • Industry data

In general, most of this information is readily accessible online and through organizational archives.

Use Exploratory Research to Confirm a Design Hypothesis

Primary and secondary studies are effective user research methods, especially when combined with other types of research. 

In the exploratory research phase, the focus is on pinpointing specific buyers’ needs and objectives. The objective is to craft a design hypothesis and then test it with the target audience. Techniques to employ when you want to validate that hypothesis include:

  • Interview and survey loyal customers
  • Gauge buyer feedback through focus groups
  • Undertake usability testing

Whatever the product or service, it’s essential to know precisely what you want to gain from the research (general background or specific user behavior). Also, you need to understand what can realistically be altered in a product or service based on the feedback obtained. 

A survey of competitors’ brands can also enhance your understanding of the chances for success with your product or service.

Employ Evaluative Research to Assess Value to Consumer

With the ample amount of data gained from previous user studies, companies can conduct evaluative research to better grasp what users think of the new design or product upgrade.

Usability testing (sometimes called “product testing”) is designed to “tell us how people respond to an actual product—including how they use it and what they think its qualities are—allowing brands to decide whether and how to market it.”

Usability testing is conducted with a moderator present. This individual works directly with those taking part in the testing process, leading them through pre-determined in-person or video conferencing tasks. The moderator should be someone experienced in active listening and correctly recognizing and responding to non-verbal cues. These sessions are often recorded for later analysis. 

In the end, usability testing will enable brands to:

  • Find out a close-to-final version of a new product will work.
  • Fine-tune the product for ideal performance at launch.
  • Test the effect of changes to product design or presentation.
  • See how well consumers in a new market will accept an existing product.

Following the evaluative phase, brands might uncover insights into establishing a better marketing pitch, determining the best pricing, identifying the ideal target audience, and so on. The focus is not on whether a product works but how that product will work best.

Always Be Listening

Throughout the entire scope of a user study, the key is listening to what targeted buyers have to say. Improve the listening process by making it easy to gather and compile user feedback. Methods include analysis of:

  • Online search queries to determine what users want
  • Questions, comments, and complaints coming in through customer service and other existing feedback channels
  • Inviting feedback at trade shows and industry conferences

Your target audience can often be both skeptical and sophisticated. Generic marketing methods don’t work with them; they want to see results from your brand. 

Comprehensive user studies enable you to understand better what drives the buyer’s journey and their ultimate buying decision. These studies also assist in anticipating future needs and challenges. 

Armed with this in-depth understanding of consumers, a brand can exploit the weaknesses of their competitors and rise to the top of the market—and, hopefully, stay there indefinitely. 

Opponents of cannabis legalization often cite concerns about cannabis’s effect on public health, warning that increased accessibility will likely result in an increase in the abuse of cannabis and other substances. However, for a country in the midst of an opioid crisis, with an estimated 47,600 opioid-related deaths in 2017, research is needed to understand the relationship between cannabis and pharmaceutical use, as cannabis is often cited as an alternative to opioids for pain management. Research conducted by Kadence International, a global boutique market research agency, indicates a nation-wide increase, in the past year, in adult use of cannabis to treat pain and other medical issues, often as a substitute for pharmaceuticals or alcohol.

In a national survey with over 2,000 adults, Kadence found that one in five (20%) adults report they have used cannabis in the last 12 months. Of those cannabis consumers, eight in ten (81%) use cannabis for at least one medical reason, an increase from 72% in 2018. Compared to 2018, significantly more adult cannabis users reported using cannabis to help treat anxiety (48% to 58%), sleep issues (39% to 53%) and pain or inflammation (40% to 49%). Many say they use cannabis for more than one of these therapeutic reasons.

While the vast majority of adult cannabis consumers believe that consumption of cannabis is safer than alcohol (92%), people who say they use cannabis for at least one therapeutic reason are more likely to state that their alcohol consumption has decreased as a result of their cannabis use (51% pain users, 48% anxiety users, 49% sleep users vs. 42% average). They are drinking less because they perceive cannabis to be less harmful, healthier and state that cannabis helps them feel better than alcohol. When asked whether they would prefer to consume cannabis or alcohol while doing different popular activities, the vast majority of these users would prefer cannabis over alcohol in nearly all situations. How else do these therapeutic users differ from the average cannabis consumer?

More than 1 in 4 (27%) adult cannabis consumers report that they use cannabis as a substitute for at least one prescription or over-the-counter medication. They are most commonly replacing pain medications with cannabis (21%), followed by sleep aids (17%) and anxiety medications (17%). Many choose cannabis over traditional pharmaceuticals because they feel it effectively relieves a combination of their symptoms. A notable 14% of adult cannabis consumers are using cannabis as a substitute for prescription pain killers/opioids, largely due to perceptions that cannabis is a “much safer”, “more natural” way to treat pain with “fewer side effects”. Interestingly, although there is no difference between opioid replacers and other cannabis consumers, with three in four living in states where cannabis is at least medically legal, opioid replacers may be obtaining their cannabis from the black market more than the average US cannabis consumer, as 61% said they usually buy from somewhere other than a dispensary, compared to 52% of total cannabis consumers.

Kadence’s data indicates there may be an opportunity for medical professionals and dispensaries to help combat the opioid crisis by targeting these black market cannabis purchasers, particularly in light of the recent vaping illnesses, thought to be coming more from black market products than regulated products available in dispensaries.

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Across all of these findings, there are no significant differences between cannabis consumers in medically or recreationally legal and non-legal states. Furthermore, the research found that not only cannabis consumers but the majority of adults nationwide believe that we are just beginning to discover the power of the cannabis plant for medicinal purposes (69%) and state that cannabis should be taken off the schedule 1 drug list so that its medical benefits can be explored more freely (69%).

The key point is this: regardless of whether or not they live in legal states, the data shows that adult consumers are already turning to cannabis for symptom relief, often choosing cannabis over pharmaceutical treatments or alcohol.  With increased accessibility, product sales could be more effectively converted from the black market into legal channels where they can be regulated appropriately and taxed handsomely. This also makes more thorough research possible for pharmaceutical companies, medical professionals and public health researchers, and expands product innovation opportunities for brands and manufacturers across a wide range of categories. After due diligence, ultimately, the potential health and well-being benefits of cannabis can be made available, through appropriate channels, to more adult consumers in need.

 Download the full research to learn more about trends in cannabis usage in the US. 

Every shopper embarks upon a journey when purchasing desired goods or services. That journey can differ dramatically among various types of audiences. On the other hand, certain aspects of the shopper’s journey are similar, regardless of the product or service involved. This is where organizations can benefit dramatically by mapping the customer journey.

A comprehensive understanding of the customer experience enables businesses to: 

  • Refine offerings and identification of gaps in what a company offers 
  • Pinpoint relevant marketing channels and promote targeted offers
  • Deliver on customer expectations
  • Respond to ever-evolving customer preferences
  • Anticipate customer needs and boost retention

Agile adaptation is key to any business’s long-term success. As we have noted before, “many sales and marketing leaders take for granted that they know what their customers need.” Assumptions like these can prove costly and lose business and trigger a loss in customer retention rates.

By contrast, when you know your offerings suit current and emerging customer needs, your business will develop a reputation for being wholly customer-centric that your competitors can’t match. 

Digging Deep into Customer Needs and Preferences

What are you attempting to uncover through shopper research? Information that describes customer behavior is key, with many elements that fit together for a broader picture. These elements include insights into:

  • Why do consumers contemplate buying a product? 
  • Why do they ultimately decide not to make a purchase?
  • Buying behaviors of different target audiences 

Conducting shopper research isn’t just about identifying shortcomings in how to deliver what people want. This information enables companies to undertake proactive steps that anticipate changing trends in shopper preferences and behaviors. Ultimately, pinpointing innovative ways to reduce gaps between your business and customer needs can result in a significant boost in customer acquisition and retention.

It’s essential to recognize that a wealth of data may already exist in your company. Everything gleaned from business analytics, and customer survey scores to the reasons behind customer service calls offer potential insights into customer behavior. This is an excellent place to start with your research to reduce any duplication in data mining.

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Incorporate Quantitative and Qualitative Research

Broadly speaking, two types of research into customer experiences yield the most helpful insights. 

The first is quantitative, a kind of “view from 30,000 feet” of consumer behavior. The process involves gathering numerical data points to help establish trends and patterns of behavior. The benefits lie in a deeper understanding about:

  • Broad groups of individuals
  • How different groups of shoppers behave (designated, for example, by age, gender, or market) 
  • Reducing complicated issues around shopper behavior into a clear-cut number of factors

Among the most useful tools to employ are online surveys, where consumers can be asked (a) about the decision that led to a purchase; (b) what obstacles prevented them from buying; (c) the type of research they conducted before purchase, and (d) what, if any, competitors they considered. 

Demographic data on the makeup of a “typical” shopper is also helpful. This can include information on age, gender, income level, etc., which can lead to creating buyer or shopper personas (more to come below). 

The raw data produced by quantitative research can be analyzed through a range of online tools that helps closely define who wants to buy a particular product or service and predict future customer behavior. 

Qualitative research aims at drilling down for more precise insights than typically yielded by quantitative study efforts. In general, this approach is more human-focused and relies less upon numbers and figures. What counts is gaining a better grasp of what customers have to say. The objective is to explore “the more intangible and subjective reasons why customers behave the way they do.” 

While there may be occasional overlap in quantitative and qualitative research methods, the latter is designed to zero in on identified target populations to examine more closely what drives them to make specific buying decisions.

Tools include:

  • Open-ended questions in online surveys that require more than a simple “yes” or “no” answer and can also identify shopper pain points (specific problems or challenges that a given product or service can favorably address)
  • “Contextual” inquiries that focus on observing shoppers in their “native habitat” (retail outlet, e-commerce, etc.)
  • Social listening, where information is gathered from social media platforms and other online communities 
  • Shopper journals or diaries, where selected customers maintain a running record of their shopping preferences and behaviors

As part of qualitative research, direct customer interviews can be very effective. Key market questions to ask during this process may include:

  • What specific problem were you attempting to solve when you selected our product/service?
  • What made you choose us over a competitor?
  • How well did our product/service address your needs?
  • What do you like the most (and the least) about our product/service?
  • How would you rate your customer experience with our company?

A combination of quantitative and qualitative research efforts often generates the most accurate insights into why shoppers act the way they do.

Creating a Shopper Persona

What can you do with all the data you collect as part of your research efforts? One necessary action is creating a shopper (or buyer) persona—a fictional representation of your ideal customer. This can be achieved through a focus on your most loyal customers. What shopping patterns are common within this specific group? Do they share specific demographic qualities (such as age or gender)? In what ways are their experiences, motivations, and pain points alike? 

Use the answers to these and related questions to put together a profile consisting of information on a typical shopper’s purchasing decisions and objections, competitors they consider, and final determining factors that lead them to become your loyal customer. For greater ease of understanding, companies often attach a fake name and stock profile to round out the shopper persona. 

A Map of the Shopper’s Journey

It’s often helpful to translate research findings into a visual representation of the shopper’s journey. Outlining the exact steps customers undertake from first becoming conscious of a brand to actual purchase and delivery. When depicted in visual form (map, diagram, etc.), the journey becomes clearer to understand and makes it easier to address any gaps or shortcomings in the process.

In general, the shopper’s journey proceeds from awareness (shoppers recognize a problem or challenge they must contend with) to consideration (shoppers seek ways to address those problems or challenges), culminating with a decision (shoppers determine a preferred solution and begin to act on it). 

You can pinpoint where each of your existing customers stands within these three stages through a well-crafted journey map. This can prove enormously valuable for tailoring your marketing and related communications where they can have the most impact.

Also included in a journey map are clearly defined touchpoints—that is, every possible place where a shopper comes into contact with (or becomes aware of) your business. Touchpoints cover a wide range, including:

  • Customer interactions with employees
  • Business website
  • Digital content
  • Product catalogs
  • Social media platform
  • Paid advertisements
  • Third-party review sites
  • Articles in print/electronic media

The shopper journey “can rarely be represented in a linear journey from point A to point B because buyers often take a back and forth, cyclical, multi-channel journey,” notes HubSpot. To facilitate visualization of this non-linear path, “savvy business leaders use a variety of methods [ranging] from post-it notes on a boardroom wall, to Excel Spreadsheets, to infographics.” It’s critically important that “the map makes sense to those who’ll be using it.”

Take a Tour of Your Shopper’s Journey

After marshalling your resources and analyzing your data, it’s time to create a shopper’s journey map. But the process isn’t complete until you and your team take the journey map for a “spin” and see what your customers experience.

“Take time once a quarter to go through every step of the customer experience yourself,” advises Forbes. Only by adopting a “do-it-yourself” approach to shopper journey mapping “can you understand and prioritize essential changes and improvements.” 

Two key points to keep in mind:

Shopper research always means more than merely locating and identifying problems along the customer’s journey. Adopting a broader view of this research enables businesses to become more proficient in terms of customer service. When the quality of this service improves, and disgruntled customers become satisfied customers, there’s more room for upsell and cross-sell opportunities. Another powerful marketing resource is favorable word-of-mouth from shoppers who feel a business anticipates and responds to issues quickly. 

Also, customer needs and priorities never remain static. (The ever-widening ramifications of the global pandemic are a stark reminder of this fact.) Customer loyalty remains a moving target, mainly when it’s relatively easy for shoppers to move from one company to another, claiming “more improved” products or services.

In-depth shopper research and mapping helps businesses anticipate, predict, and plan for future contingencies. Companies possessing detailed shopper research and a vibrant, real-time shopper journey map are unlikely to be caught wrong-footed when shopping trends take an unexpected turn. 

Do you think you know what your customers need and want from your business? Based on your company’s experience in the industry, you may have a general idea. Still, a comprehensive understanding will only occur when you and your team conduct extensive (and highly focused) shopper journey research.