Blog Archives | Page 34 of 55

The academic and business press may have criticized customer rewards for being cheap promotional tools and short-term fads, but they have been around forever, and more brands are embracing rewards programs rather than shying away from them. Many organisations are investing millions of dollars in creating and executing innovative rewards programs, ranging from frequent flyer offers by airlines to reduced fees by telecommunications companies to increase and retain their customer base.

Customer loyalty programs remain a popular marketing strategy brands use to increase customer retention and promote customer loyalty. These programs typically offer rewards, discounts, or other incentives to customers who make repeat purchases or engage in other loyal behaviours.

But do they really work?

In today’s business landscape, it is becoming increasingly common for senior leaders to request that their marketing teams evaluate the potential impact of loyalty marketing initiatives.

The fundamental question is whether such programs foster additional customer loyalty beyond what would typically result from the inherent value of the product or service offered. Additionally, brands must scrutinise their loyalty programs to determine whether they truly encourage customers to spend more or merely incentivise them to make repeat purchases. And in a highly competitive marketplace, are loyalty marketing programs a viable solution for every organisation seeking to improve customer loyalty?

Engineering the economics of a loyalty program’s structure is key.

It is a well-known fact in business and marketing that retaining customers is more valuable than acquiring new ones, which is why rewarding frequent buyers makes sense.

So how can a brand go wrong with a simple loyalty program?

While you can get people to buy again from you by offering them rewards, how do you ensure you also profit when you get a repeat purchase?

This is where many loyalty programs fall short. A lot goes into creating an effective rewards program. First, it has to be good enough to change the customer’s behaviour in your favour, and yet, it should not be so generous that it shrinks margins. You must also understand your consumers, as the same reward often encourages varying purchase behaviours.

Our research at Kadence has uncovered some patterns in successful and effective loyalty programs. These findings may be used as a toolkit to create a successful rewards program for any consumer-facing brand.

Let’s explore with real-world examples how to ensure the effectiveness of a customer loyalty program, but first, let’s dive into the origins of loyalty programs and how they work.

History and Origins of Loyalty Programs

The origins of loyalty programs can be traced back to the late 18th century when American retailers began offering customers copper tokens that could be redeemed for goods. However, it was in the 1980s that loyalty programs began to gain widespread popularity. American Airlines AAdvantage program is often credited as the first modern loyalty program, launched in 1981. Since then, loyalty programs have become an increasingly popular marketing tool brands use in various industries, from retail and hospitality to finance and healthcare.

What goals do loyalty programs strive to achieve?

While loyalty programs do not create an unwavering devotion or faithfulness to a brand in the true sense of the word, they can help accomplish many business goals. It is critical to start with a goal. What are we trying to achieve with the loyalty program? Is the goal to keep customers from moving to other brands, or is it to prompt customers to make additional purchases they would not have typically made, or is it to get a larger share of the wallet?

Once you know your goal, it’s easier to zero in on the most suitable loyalty program structure and engineer an economically viable rewards program.

For brands with a higher lifetime value, like a mobile service or internet provider, it is crucial to keep the customers from falling off into the hands of the competitor. The goal for such companies is often to create a loyalty program that makes the exit difficult for customers because of the incentives or point system.

How do loyalty programs work?

Customer loyalty programs are designed to encourage repeat business from customers by offering them incentives and rewards for their loyalty. The programs provide customers with points, discounts, freebies, or other rewards based on their level of engagement with a business or brand.

Customers typically sign up for the loyalty program by providing their contact information, such as name, email, and phone number. They then earn points or rewards by making purchases referring friends, or engaging with the brand in other ways.

As customers accumulate points or reach certain milestones, they can redeem them for rewards such as free products, discounts on future purchases, or exclusive perks.

Loyalty programs also provide businesses with valuable customer data, which can be used to personalise marketing messages, improve customer experiences, and tailor rewards to individual preferences.

Any customer loyalty program aims to foster long-term customer relationships, increasing retention and loyalty and ultimately driving revenue growth.

Many brands have recently flipped the script on tiered loyalty programs.

When T-Mobile, a wireless voice, messaging, and data services provider, sought a fresh approach to express gratitude for its customers’ support and rapid growth, it went against the tide. Seeing that traditional loyalty programs were a decent way to generate additional sales but a lousy way to thank customers, T-Mobile wanted to prove the brand’s loyalty to customers instead of the other way around.

The result was T-Mobile Tuesdays, a customer appreciation program that offered simple, easy access to free stuff and great deals every Tuesday without forcing customers to spend more with T-Mobile. It was a fresh take on loyalty programs that proved to be highly successful, with customers enjoying well over $1 billion worth of freebies and exclusive discounts in the five years since the program began. In contrast to most companies’ traditional loyalty programs that ask too much of their customers and give little back in return, T-Mobile’s program is unique in that it values and rewards all customers equally.

Many brands utilise loyalty programs to sell other products and services. This helps them set their sights higher to capture sales that would otherwise not be made. Multi-tiered rewards work best in this scenario. An increasing number of airline and retail brands use this reward system. Sephora has been very successful with its VIB program, which provides rewards and incentives commensurate with the value of purchases made within a given year.

A point-based system works well for the goods and services we frequently purchase in smaller quantities. Many hotels, grocery stores, and retailers use this system to reward customers based on points for every dollar spent. Customers are more likely to consolidate purchases with a single brand when rewarded in cash.

Well-thought-out rewards or loyalty programs also help brands access valuable customer data. So while many grocery store programs may not promote loyalty because they are just giving out a membership card for special pricing, they have a wealth of information about their customers, which allows them to customise offers for every customer. However, orchestrating the insights from data requires a substantial investment in data analysis tools and a dedicated team for the job.

How consumer psychology plays a crucial role in the structure and type of rewards program.

Numerous studies have indicated that members tend to utilise loyalty programs more frequently as they progress further in the program, while their participation initially is uncertain.

At the beginning of their membership, they may feel distant from the rewards since they have yet to make any progress and need to understand how achievable the goals are. This is where the principle of the endowed progress effect comes into play. The endowed progress effect states that people with artificial advancement toward a goal exhibit greater persistence toward reaching it. This is used to create effective loyalty programs to prevent customers from losing interest in the loyalty program. This is why many brands throw in bonus points to get them started.

While a growing number of brands offer a buy–ten-get-one-free promo to keep customers from going to competitive brands, it may be more valuable to create a program that provides customers with a taste of something new and increases the range of products or services they buy from you. For instance, the US-based fast-casual chain Panera Bread offers a pastry or other such item to reward its regulars. Starbucks offers many different rewards, including free drinks, food items, and even merchandise, which must be redeemed within a period. This also helps promote the app as it helps keep track of the rewards.

Many airlines use this strategy and upgrade their travellers to business class when they have empty seats, which gives their regular customers a taste of luxury and motivates them to purchase in the future.

The importance of measuring the effectiveness of customer loyalty programs.

While customer loyalty programs can effectively increase customer retention and loyalty, they often fall flat. It is critical to measure the effectiveness of these programs to ensure they achieve the desired results. This is where market research comes in.

Market research is invaluable in devising the most effective loyalty programs and measuring their effectiveness.

Here are some reasons why measuring loyalty programs is essential:

Know the ROI of your loyalty program.

Measuring the effectiveness of a loyalty program allows companies to determine the Return On Investment (ROI) of their loyalty program. This helps brands understand the costs and benefits of the program and whether it is worth continuing or making changes.

Customer Retention.

If the program is not effectively retaining customers, brands may need to make changes to improve its effectiveness.

Customer Satisfaction.

This information can be used to identify areas for improvement and make changes to better meet the needs and preferences of customers.

Competitive Advantage.

A well-designed and effective loyalty program can provide a competitive advantage for companies. Measuring the program allows brands to understand how they perform compared to their competitors, make changes to improve their program, and stay ahead of the competition.

Customer Insights.

By tracking customer spending, engagement, and satisfaction, brands can better understand customers and make data-driven decisions about loyalty programs and other marketing initiatives.

How to use market research to measure the effectiveness of customer loyalty programs.

Customer loyalty programs are an effective way to increase customer retention and loyalty. However, it is essential to measure their effectiveness to ensure they achieve the intended results. Market research allows brands to make data-driven decisions that drive customer loyalty and revenue growth.

Step 1: Define Your Objectives.

The first step in measuring the effectiveness of a customer loyalty program is to define your objectives. What are you hoping to achieve with your program? Is it improved customer retention, increased customer spending, or something else?

Defining your objectives will help you determine the metrics you need to measure and the research methods you will use.

Step 2: Choose Your Metrics.

Once you have defined your objectives, you need to choose the metrics you will use to measure the effectiveness of your loyalty program.

Some standard metrics used to measure loyalty program effectiveness include:

Customer retention rate: The percentage of customers who continue to do business with your company after joining your loyalty program.
Customer spending: The amount of money customers spend on your products or services after joining your loyalty program.
Customer satisfaction: Customers’ satisfaction with your loyalty program and your company overall.
Referral rate: The number of customers who refer new customers to your company.

Step 3: Conduct Market Research.

Once you have defined your objectives and chosen your metrics, it’s time to conduct market research to measure the effectiveness of your loyalty program.

You can use several research methods, including surveys, focus groups, and interviews.

Surveys are one of the most common research methods used to measure the effectiveness of customer loyalty programs. Surveys can collect data on customer retention, spending, satisfaction, and referral rates. They can be conducted online, by phone, or in person and can be targeted to specific groups of customers.

Focus groups and interviews are also effective research methods for measuring loyalty program effectiveness. These methods allow you to gather more in-depth customer feedback and understand their experiences with your loyalty program.

Step 4: Analyse Your Data.

Once you have collected your data, it’s time to analyse it. Look for patterns and trends in your data and compare them to your objectives and metrics. This will help you understand your loyalty program’s effectiveness and identify improvement areas.

Step 5: Make Improvements.

Based on your analysis, make any necessary improvements to your loyalty program. This could involve changing your rewards program, improving your customer service, or making other changes to meet the needs and expectations of your customers.

Many brands are using market research to measure the effectiveness of their customer loyalty programs.

Examples of global brands doing rewards right.

Starbucks is known for its highly successful customer loyalty program, Starbucks Rewards. Sephora’s Beauty Insider Program is another successful loyalty program that uses market research to measure effectiveness. The Insider tier is free to join, while VIB and Rouge tiers require customers to spend specific amounts yearly.

Sephora’s tiered program is highly impactful due to the sense of exclusivity created by the upper tiers. Tiered programs are successful when the upper tiers have a limited number of members, typically around 10%. This way, the most loyal customers feel a sense of accomplishment, motivating other customers to strive for the same. Sephora’s Beauty Insider program segments customers into three groups: Beauty Insiders, VIB, and VIB Rouge, effectively establishing a hierarchy.

Tiers contribute to the gamification aspect of Sephora’s loyalty program and influence customer behaviour, and motivating customers to strive for each new tier is the key to high engagement. Sephora has mastered this strategy, as evident from the feedback shared by its members on social media.

The program offers customers exclusive discounts, free samples, and other perks that align with its customer base. The brand also uses AI to make personalised recommendations.

In the retail world, Amazon Prime, US-based Target Circle, India-based Flipkart Plus, Japan-based Rakuten Super Points, China-based Tmall Super Member, Singapore-based GrabRewards, and UK-based Tesco Club cards are excellent examples, as are many frequent flier programs like the Southwest rapid rewards card.

Ensuring the effectiveness of a company’s loyalty program involves first defining its purpose. This entails meticulously considering the program’s design elements, including the rewards’ value and type and the methods of awarding and redemption. The key to a successful program is its efficient and consistent implementation.

Loyalty programs have come a long way since their inception in the late 18th century. From American Airlines’ AAdvantage program to the modern loyalty programs of today, these have become essential marketing tools brands use to increase customer loyalty and drive revenue. While expecting absolute loyalty may be unrealistic, businesses can achieve long-term relationships with satisfied customers, serving as a valuable competitive advantage. With the help of technology, loyalty programs are becoming increasingly personalised, sophisticated, and effective and are likely to continue evolving in the years to come.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Are you reading this on a mobile device? If you are, you’re not alone. Over 50% of global internet usage is now on mobile devices, and this number will only continue to grow.

As we spend more and more time on our phones and tablets, it’s become increasingly important for brands to ensure that their websites are optimised for mobile users. But what does “mobile optimisation” actually mean? And why is it so important for brands to prioritise mobile responsiveness in their website design?

In this blog, we’ll explore the answers to these questions and more. But first, let’s take a closer look at one fascinating statistic: 48% of users say that if a website isn’t mobile-friendly, they take it as a sign that the business doesn’t care (Google). Ouch. That’s a lot of potential customers who could be turning away from your website if it’s not optimised for mobile. So, let’s dive in and find out how to ensure that your website provides a great user experience for mobile users.

The rise of mobile usage.

Now that we’ve seen the importance of mobile responsiveness in website design let’s dive deeper into why it matters so much, especially for large multinational companies. The rise of mobile usage is one key factor.

According to a recent report by Statista, over half of all internet usage is now happening on mobile devices. If your website isn’t optimised for mobile, you’re missing out on a massive audience of users accessing the web exclusively through their phones and tablets.

But it’s about more than just reaching more users. Mobile responsiveness also directly impacts user experience (UX), which is crucial for brands that want to build trust and loyalty with their customers. Users who visit your website on a mobile device expect it to be fast, easy to navigate, and visually appealing. If your website doesn’t meet these expectations, users will likely become frustrated and move on to a competitor’s site. In fact, Google reports that 57% of users say they won’t recommend a business with a poorly designed mobile site, so the stakes are high.

For multinational brands, the impact of mobile responsiveness on UX is even more critical. These companies often have global audiences, meaning users access their sites from a wide range of devices and internet connections. Ensuring your website is optimised for mobile can bridge the gap between users in different regions and provide everyone with a consistent, positive experience.

Mobile-first design.

As we’ve seen, mobile responsiveness is crucial for providing a great user experience on your website. But it’s not just about ensuring your site looks good on mobile devices – it’s also about designing it with mobile users in mind. That’s where mobile-first design comes in.

The concept of mobile-first design is exactly what it sounds like: designing your website with mobile users as the primary audience. This means prioritising things like page speed, streamlined navigation, and clear, concise content that’s easy to read on smaller screens. By focusing on mobile-first design, you can create a website that’s not just responsive to different devices but explicitly optimised for mobile users’ needs and expectations.

Mobile-first design is becoming increasingly important in the context of user experience optimisation for a few key reasons. First, as we’ve seen, more and more users are accessing the internet exclusively through mobile devices. This means that designing for mobile-first is not just a nice-to-have – it’s a necessity for reaching a large and growing audience.

Second, designing for mobile-first can make creating a great user experience easier across all devices, not just mobile. By focusing on the essentials of mobile design – things like fast load times, streamlined navigation, and clear content – you can create a strong foundation for your website that can be easily adapted for larger screens as well.

Best practices for mobile responsiveness.

Now that we understand the importance of mobile responsiveness and mobile-first design let’s dive into some best practices for optimising your website for mobile users.

Prioritise page speed: Mobile users expect fast load times, so optimising your website for speed is essential. This can include compressing images, minifying code, and using a content delivery network (CDN) to reduce load times.
Streamline navigation: Mobile screens are small, so making it easy for users to find what they’re looking for on your website is important. Keep your navigation menu simple and intuitive, and ensure all links and buttons are large enough to tap easily on a touchscreen.
Use responsive design: Responsive design allows your website to adapt to different screen sizes automatically. This means that your website will look great and function properly whether a user is accessing it on a desktop, tablet, or smartphone.
Optimise content for mobile: Mobile users are often looking for specific information quickly, so it’s essential to ensure that your content is clear, concise, and easy to read on a small screen. Use shorter paragraphs, larger fonts, and plenty of white space to make your content more mobile-friendly.
Consider mobile-specific features: Several features can help to enhance the mobile user experience, such as click-to-call buttons, mobile-friendly forms, and swipeable carousels. Consider incorporating these features into your website design to make engaging with your content easier for mobile users.

By following these best practices, you can create a website that provides a great user experience for mobile users. Remember, designing for mobile-first isn’t just about making sure your website looks good on a smartphone – it’s about prioritising the needs and expectations of mobile users throughout the design process. By doing so, you can create a website that’s responsive to different devices and optimised for your users’ needs, no matter how they access your site.

The Technical Side of Mobile Responsiveness

While mobile-first design is a crucial element of optimising the user experience on your website, it’s essential to pay attention to the technical side of mobile responsiveness.

Several technical considerations can impact your website’s ability to adapt to different screen sizes and devices, such as CSS and media queries.

CSS, or Cascading Style Sheets, is a language used to describe the presentation of web pages, including layout, fonts, and colours. CSS can be used to create responsive designs by specifying different styles for different screen sizes. For example, you can use CSS to specify that an image should be a certain width on a desktop screen but scale down to a smaller size on a mobile device.

Media queries are a key component of responsive design that allows websites to adapt to screen sizes by applying different styles based on the device’s screen width. Media queries can specify different styles for a wide range of devices, from large desktop screens to small smartphone screens.

In addition to CSS and media queries, several other technical considerations can impact mobile responsiveness, such as page load times, image optimisation, and responsive frameworks like Bootstrap or Foundation.

By understanding the technical side of mobile responsiveness and implementing best practices like CSS and media queries, you can create a website that provides mobile users with a seamless and engaging experience. While it may seem daunting to dive into the technical details, many resources are available to help you get started, such as online tutorials, forums, and developer documentation.

Remember, mobile responsiveness is not just about making your website look good on a smartphone – it’s about providing a great user experience for a large and growing audience of mobile users.

Mobile Optimisation and SEO: A Match Made in User Experience Heaven

We’ve already discussed how mobile optimisation can impact user experience on your website, but did you know that it can also significantly impact your search engine rankings? Google, the world’s most popular search engine, has made it clear that mobile optimisation is a key factor in its algorithm for ranking search results.

Google has even rolled out mobile-first indexing, prioritising a website’s mobile version when determining its search engine ranking. If your website isn’t optimised for mobile, you could miss out on a significant amount of organic search traffic.

But why does mobile optimisation have such a big impact on SEO? It all comes down to user experience. Google’s primary goal is to provide its users with the best possible search results, including ensuring that the websites they recommend offer a great user experience on all devices. Mobile-friendly websites are not only easier for users to navigate and read, but they also load faster and have lower bounce rates, which are all factors that Google considers when determining search rankings.

In addition to mobile-first indexing, Google offers many tools and resources to help you optimise your website for mobile users, such as the Mobile-Friendly Test and PageSpeed Insights. These tools can help you identify areas where your website may fall short in mobile optimisation and provide recommendations for improving your mobile user experience.

By prioritising mobile optimisation in your website design, you can improve your user experience for mobile users and your search engine rankings and drive more organic traffic to your site. So, if you haven’t already, it’s time to prioritise mobile optimisation for your website.

Essential Tools and Resources for Mobile Optimisation

Implementing mobile-first design and optimising your website for mobile users can seem like a daunting task. Still, several tools and resources are available to help you get started. Here are some essential tools and resources for mobile optimisation to help you test and improve your website’s mobile responsiveness.

Google’s Mobile-Friendly Test: This free tool from Google allows you to test your website’s mobile responsiveness and provides recommendations for improving your mobile user experience.
PageSpeed Insights: Another free tool from Google, PageSpeed Insights analyses your website’s performance on desktop and mobile devices and provides suggestions for improving page speed and user experience.
Responsive design frameworks: Frameworks like Bootstrap and Foundation can help you create responsive designs more quickly and easily by providing pre-built CSS and JavaScript components that are optimised for mobile devices.
Mobile-specific plugins: If you’re using a content management system like WordPress or Drupal, several plugins are available that can help you optimise your website for mobile users, such as WPtouch and Drupal Mobile.
Online tutorials and forums: A wealth of online resources are available to help you learn more about mobile optimisation, from tutorials on responsive design to forums where you can connect with other developers and designers.

Mobile Optimisation and E-commerce: Why It Matters and How to Get it Right

In today’s digital landscape, e-commerce is more important than ever, with consumers increasingly turning to online shopping for their retail needs. And with mobile devices accounting for more than half of all internet traffic, e-commerce websites must be optimised for mobile users.

Mobile optimisation is essential for e-commerce websites because mobile users often have different needs and behaviours than desktop users. For example, mobile users may look for specific products or information quickly or be more likely to make impulsive purchases. To optimise the mobile user experience for e-commerce, it’s important to understand these needs and behaviours and design your website accordingly.

So, what are some best practices for optimising e-commerce sites for mobile users? Here are a few key considerations:

Streamline the checkout process: Mobile users want a quick and easy checkout process, so minimising the number of steps required to complete a purchase is important. Consider using a one-page checkout process, offering guest checkout options, and enabling mobile payment methods like Apple Pay and Google Wallet.
Optimise product pages for mobile: Product pages are a key element of e-commerce websites, so it’s crucial to ensure they’re optimised for mobile users. This can include using high-quality product images, providing clear product descriptions, and including reviews and ratings.
Use mobile-specific features: Several mobile-specific features can enhance the e-commerce user experience, such as click-to-call buttons, mobile-friendly forms, and push notifications. Consider incorporating these features into your website design to make engaging with your content easier for mobile users.
Test and optimise: As with any aspect of website design, testing and optimising your e-commerce website for mobile users is essential. Use tools like Google’s Mobile-Friendly Test and PageSpeed Insights to identify areas for improvement and make iterative changes over time.

Optimising your e-commerce website for mobile users can improve user experience, drive more conversions, and ultimately increase revenue. So, prioritise mobile optimisation in your strategy, whether you’re designing a new e-commerce site or optimising an existing one.

How a Market Research Agency Can Help Your Brand Achieve Mobile Optimisation Success

Achieving mobile optimisation success can be complex and challenging, requiring a deep understanding of user behaviour, design best practices, and technical considerations. This is where working with a market research agency can be an invaluable asset for brands looking to improve their mobile user experience.

A market research agency can provide many services and solutions to help brands optimise their website for mobile users. Here are a few examples:

User research: A market research agency can conduct user research to gain insights into how your target audience interacts with your website on mobile devices. This can include surveys, focus groups, and usability testing to identify pain points and opportunities for improvement.
Design and development: A market research agency can work with your team to design and develop a mobile-first website that prioritises user experience and incorporates best practices for mobile optimisation. This can include creating responsive designs, optimising page speed, and implementing mobile-specific features.
Analytics and optimisation: A market research agency can help you measure the impact of your mobile optimisation efforts by analysing data and identifying areas for improvement. This can include A/B testing, heat mapping, and user behaviour tracking to fine-tune your mobile user experience over time.
Competitive analysis: A market research agency can conduct a competitive analysis to identify how other brands in your industry are approaching mobile optimisation and provide recommendations for differentiating yourself and providing a better user experience.

By working with a market research agency, brands can ensure their mobile user experience is optimised for their target audience and aligned with their overall business goals. Whether you’re looking to improve your website’s load times, streamline the checkout process, or implement mobile-specific features, a market research agency can provide the expertise and support you need to achieve mobile optimisation success.

Key Takeaways

Mobile optimisation is an essential aspect of user experience optimisation for large multinational companies. With the rise of mobile usage, users expect websites to be fast, easy to navigate, and visually appealing on their mobile devices.

By prioritising mobile-first design and following best practices for mobile optimisation, companies can create a website that not only meets these expectations but exceeds them.

While we’ve discussed the importance of mobile-first design and the impact of mobile optimisation on search rankings and e-commerce, it’s also important to consider the technical side of mobile responsiveness and the tools and resources available to help you achieve mobile optimisation success. Companies can gain a competitive edge by using these tools and resources and working with a market research agency to provide a seamless and engaging experience for mobile users worldwide.

Ultimately, mobile optimisation is not just about making your website look good on a smartphone – it’s about providing a great user experience for a large and growing audience of mobile users. By prioritising mobile optimisation, brands can build customer trust and loyalty, improve search rankings, drive more conversions and revenue, and ultimately stay ahead in today’s fast-paced digital landscape.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Imagine this: it’s the year 2033, and you’re a market researcher tasked with analysing a massive dataset of consumer responses to a new product launch.

In the past, this would have taken you weeks, if not months, of manually sorting through surveys, analysing focus group transcripts, and summarising the findings. But now, with the help of Large Language Models (LLMs), the task is completed in a matter of days.

You simply upload the dataset to your computer, and within minutes, the LLM has sorted through and prioritised the responses, highlighting key themes and sentiment analyses that give you a comprehensive understanding of what consumers think about the product.

This hypothetical scenario may seem far-fetched, but with the rapid advancement of LLM technology in recent years, it’s closer than you might think. Large Language Models have the potential to revolutionise the market research industry, transforming the way we analyse and interpret data and making our jobs easier and more efficient.

But what exactly are Large Language Models, and how do they work? This article will explore the world of LLMs and their impact on market research. We’ll delve into their potential uses in market research, including summarising responses, automating reporting, and identifying themes and sentiments. We’ll also discuss the potential risks of using LLMs in market research.

What are Large Language Models?

Before we dive into how Large Language Models (LLMs) are changing market research, let’s take a step back and explore what LLMs are and how they work.

At their core, LLMs are algorithms designed to predict the next word or phrase in a sequence based on the relationships between words in a large dataset. To accomplish this, LLMs use a technique called unsupervised learning, where the algorithm is given a large amount of data and left to find patterns and relationships on its own.

One of the most well-known examples of LLMs is ChatGPT (Generative Pre-trained Transformer), developed by OpenAI. ChatGPT is one of the largest LLMs, with 175 billion parameters, allowing it to perform various tasks with impressive accuracy.

So how does an LLM work in practice? Let’s take a simple example: predicting the next word in the sentence “The cat sat on the ____”. An LLM trained on a large dataset would be able to predict that the most likely word to complete the sentence is “mat”, followed by “chair”, “table”, and so on.

The power of LLMs comes from their ability to learn statistical relationships between words through their co-occurrences in large datasets. An LLM can identify patterns and correlations between words and phrases that a human researcher might miss by analysing massive amounts of text data.

But it’s important to note that LLMs are not sentient beings and do not wholly understand language. Instead, they rely on statistical associations and correlations to make predictions, sometimes leading to errors or misunderstandings.

Despite these limitations, the potential applications of LLMs in market research are vast and varied. In the next section, we’ll explore some of the ways LLMs are changing the field of market research.

The Potential of Large Language Models in Market Research

Large Language Models have the potential to revolutionise the way market research is conducted. They can speed up processes, enhance accuracy, and identify trends that human researchers might miss.

Here are some of the potential applications of LLMs in market research:

Summarisation: Market research generates vast amounts of data through surveys, qualitative interviews, and focus groups. LLMs can quickly summarise, order, and prioritise responses, allowing researchers to create a narrative for clients more efficiently.
Automated reporting: Market research also produces large volumes of quantitative data that need sorting, summarising, and presenting. LLMs can quickly organise and create draft headlines based on charts, tables, models, and executive summaries.
Topic/theme identification: LLMs can analyse different attitudinal datasets or open APIs to digital platforms, identify themes, and assess sentiment, affinity, and brand perceptions, providing researchers with insights to refine their research.
Prediction: LLMs can extract embeddings (mathematical representations) that other machine learning models can use to predict outcomes of interest. For instance, they can predict the performance of a TV ad based on the dialogue or relate people’s qualitative experience interacting with a service representative to their brand loyalty or churn.
Intelligent interviewing: Conversational AI can be used to automate and standardise the process of designing quant questionnaires. Additionally, conversational AI will come on in leaps and bounds, responding to previous answers and routing questions accordingly.
Text data cleaning: Cleaning text data is crucial to the operational process. LLMs can check for gibberish and spelling errors much better than autocorrect ever did.
Creative Writing: LLMs can be used to create discussion guides, initial drafts of presentations, marketing copy, and concept statements.
Conversational search queries: With LLMs, an intelligent agent can sit on top of data platforms, analysing potentially massive databases and fetching results back in natural language.

These are just a few examples of how LLMs are changing market research. LLMs offer a level of efficiency, accuracy, and scalability unparalleled by traditional market research methods. However, there are risks associated with using LLMs, which we will explore in the next section.

Risks Associated with Large Language Models

While Large Language Models offer immense potential to the market research industry, there are risks associated with their use. Here are some of the risks that researchers and organisations should be aware of:

Hallucinations and false predictions: LLMs may make incorrect predictions, particularly when they encounter novel or ambiguous data. Sometimes, they may even make things up or ‘hallucinate,’ leading to false predictions.
Bias reinforcement: LLMs learn from the data they are trained on. If the training data contains biases, the LLM may reinforce them in its predictions.
Ethical issues: LLMs can raise ethical issues concerning privacy, consent, and intellectual property. For instance, using data scraped from social media platforms without users’ consent may raise ethical concerns.
Limited understanding: LLMs are limited in understanding language and interpreting data. They rely on statistical associations and correlations to make predictions, and there are limitations to how much they can understand and learn.
Legal issues: There may be legal issues related to the use of LLMs, particularly regarding intellectual property and privacy laws.
Lack of transparency: LLMs are often black boxes, meaning it is difficult to understand how they arrive at their predictions. This lack of transparency can be problematic, particularly when the predictions have significant implications.
Dependence on data quality: LLMs require high-quality data to perform effectively. If the data used to train an LLM is of low quality, the predictions made by the model may be inaccurate.

Large Language Models offer immense potential to the market research industry, allowing researchers to process vast amounts of data more efficiently and accurately than ever. However, researchers and organisations must be aware of the risks associated with their use and take steps to mitigate them.

LLMs are not a magic solution that can replace human researchers entirely, but they can significantly enhance the work that researchers do. The key is to approach LLMs with caution, ensuring that they are used ethically and responsibly to realise their full potential.

Best Practices for Using Large Language Models in Market Research

To ensure that Large Language Models are used ethically and responsibly in market research, following some best practices is essential. Here are some guidelines for using LLMs in market research:

Understand the limitations: It’s crucial to understand the limitations of LLMs and to avoid overestimating their capabilities. LLMs are not sentient beings and cannot replace human researchers entirely.
Use high-quality data: LLMs require high-quality data to perform effectively. Researchers should ensure that the data used to train an LLM is representative, unbiased, and of high quality.
Address potential biases: LLMs may learn from biased data and reinforce those biases in their predictions. Researchers should be aware of this risk and take steps to address potential biases in the data.
Ensure transparency: LLMs are often black boxes, making understanding how they arrive at their predictions difficult. Researchers should ensure that the LLMs used in their research are transparent and that the methods used to arrive at predictions are clearly documented.
Ethical considerations: Researchers should be aware of ethical considerations related to privacy, consent, and intellectual property when using LLMs in market research. It’s essential to obtain participants’ consent and ensure that data is used ethically.
Verify predictions: It’s crucial to verify the predictions made by LLMs to ensure their accuracy. Researchers should take a critical approach to LLM predictions and verify them through human review.
Partner with experts: LLMs are complex and require expertise to use effectively. Researchers should partner with experts in the field to ensure that LLMs are used correctly and ethically.

By following these best practices, researchers can use LLMs effectively in market research and ensure they are used ethically and responsibly. LLMs offer immense potential to the market research industry, and by using them responsibly, we can unlock their full potential while avoiding potential risks.

The Future of Large Language Models in Market Research

As we have seen, Large Language Models offer immense potential to the market research industry. With their ability to process vast amounts of data more efficiently and accurately than ever, LLMs can revolutionise market research. However, their use must be approached with caution, and researchers must take steps to mitigate potential risks.

The future of Large Language Models in market research is exciting. With advances in technology and data quality, LLMs will become more sophisticated and effective, enabling researchers to gain insights into consumer behaviour and preferences that were previously impossible to obtain. As LLMs evolve, we can expect them to play an increasingly critical role in the market research industry.

However, it’s important to remember that LLMs are not a replacement for human researchers. While they can significantly enhance researchers’ work, they cannot replace human insight and intuition. LLMs should be used with human researchers, and their predictions should always be verified through human review.

Large Language Models are changing the face of market research, offering new and exciting possibilities for the industry. While risks are associated with their use, they can be mitigated through responsible and ethical use. By following best practices and partnering with experts in the field, market researchers can harness the full potential of Large Language Models to gain insights into consumer behaviour and preferences that were previously impossible to obtain. The future of market research is bright, and Large Language Models will undoubtedly play a critical role in shaping it.

The Ethical Considerations of Large Language Models

While the potential of Large Language Models is vast, ethical considerations must be taken into account. One of the most significant concerns is the potential for bias in the data used to train Large Language Models.

Large Language Models are trained on massive datasets that include vast amounts of text from a wide range of sources. However, these datasets can consist of biases and stereotypes in the data. For example, suppose a dataset includes a disproportionate amount of text from male authors. In that case, the Large Language Model may learn to associate certain words or concepts with men more than women.

This can have significant implications for the accuracy and fairness of the predictions made by Large Language Models. For example, if a Large Language Model is used to make hiring recommendations, it may unintentionally perpetuate gender or racial biases in the data used to train it.

Another concern is the potential for Large Language Models to generate misleading or harmful content. Large Language Models can generate fake news, propaganda, or hate speech, which can have significant real-world consequences.

To address these concerns, businesses and researchers must take steps to mitigate the risks associated with Large Language Models. This includes using diverse and representative datasets to train models, ensuring transparency in the use of Large Language Models, and actively monitoring and addressing potential biases in the predictions made by the models.

While Large Language Models offer immense potential to businesses and researchers, their use must be approached with caution and responsibility. By addressing the ethical considerations associated with Large Language Models, we can ensure that they are used to benefit society as a whole.

Final thoughts

Large Language Models are changing how we interact with technology, opening up new possibilities for businesses and researchers alike. From market research and customer service to content creation and data analysis, Large Language Models have the potential to revolutionise the way we operate in almost every industry.

However, as with any new technology, there are ethical considerations that must be taken into account. Ensuring the accuracy and fairness of Large Language Models is critical, particularly regarding decision-making processes that can have significant real-world consequences.

Moving forward, brands and researchers must approach the use of Large Language Models with caution and responsibility, taking steps to address the ethical considerations associated with this technology. By doing so, we can ensure that Large Language Models are used to benefit society as a whole rather than perpetuating biases and perpetuating harm.

Overall, the potential of Large Language Models is enormous, and we’re just beginning to scratch the surface of what this technology can do. The future of business and research is bright, and with Large Language Models leading the way, we’re sure to see some exciting developments in the years to come.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The workplace is changing rapidly, and one of the most significant drivers of this change is automation. From factory floors to office cubicles, machines are taking over many tasks humans once did. While this shift has undoubtedly brought benefits in terms of efficiency and productivity, it has also raised concerns about the future of work. Will there be enough jobs for humans in an automated world? And what skills will be most valuable in this new landscape?

One thing that’s clear is that human creativity will remain essential, even as machines become increasingly sophisticated. While automation can handle routine tasks and process large amounts of data, it cannot replicate the unique perspective and problem-solving abilities of the human mind. Creativity will remain a critical asset in the workplace of the future.

In this article, we’ll explore the rise of automation and its impact on the workforce. We’ll also discuss the value of human creativity and its role in the future of work. Finally, we’ll offer some tips and strategies for companies that want to foster creativity in their workforce and stay ahead of the curve in this rapidly changing landscape.

The Rise of Automation

Automation is not a new phenomenon, but recent technological advances have made it more widespread than ever before. From self-driving cars to chatbots, machines are taking over an increasing number of tasks that were once done by humans. According to a recent report, up to 375 million workers (about 14% of the global workforce) may need to switch occupations or acquire new skills by 2030 due to automation.

Some industries are more likely to be impacted than others. For example, manufacturing has already seen significant job losses due to automation, and service industries like retail and hospitality are also at risk. Even traditionally white-collar jobs like accounting and legal services are not immune to automation, as machines become better at analyzing data and processing information.

While automation can bring benefits in increased efficiency and lower costs, it also has drawbacks. One of the main concerns is that it will lead to job losses, particularly in industries where routine tasks are being automated. There are also concerns about the impact on the quality of jobs that remain, as many of the tasks that cannot be automated are low-paying and low-skilled.

Despite these concerns, there are also reasons to be optimistic about the future of work. As automation takes over routine tasks, there will be a growing need for workers who can think creatively and develop innovative solutions to complex problems. This is where human creativity comes in.

The Value of Human Creativity

One of the main advantages of human creativity is that it allows us to do things that machines cannot. While machines are great at processing large amounts of data and following set rules, they cannot think outside the box or come up with truly novel ideas.

Creativity is also essential for innovation. To stay competitive, companies must constantly come up with new products, services, and ways of doing things. This requires the ability to think creatively and the willingness to take risks and try new things.

90% of business leaders believe that the skills needed in the future will differ from those required today (source: Deloitte).

Another benefit of human creativity is that it allows us to connect with other people on an emotional level. Machines may be able to process information and provide answers, but they cannot replicate the empathy and understanding that comes from human interaction. This is particularly important in industries like healthcare and education, where human connection is essential to the work being done.

“The future of work is not about replacing humans with machines; it’s about augmenting human capabilities with technology.” – Satya Nadella, CEO of Microsoft.

In an increasingly automated world, the value of human creativity will only continue to grow. As machines take over routine tasks, workers who can think creatively and come up with innovative solutions will be more valuable than ever. This means that companies will need to invest in fostering creativity in their workforce and finding ways to tap into their employees’ unique perspectives and problem-solving abilities.

The Future of Work

As automation continues to transform industries, the workforce is likely to change in significant ways. Some jobs will become obsolete, while new roles will emerge due to automation.

For example, there will be an increasing demand for workers who can design and program machines, as well as those who can manage and maintain them. There will also be a growing need for workers who can analyse and use data to make informed decisions. However, even in these roles, creativity will remain essential.

One area where creativity plays a critical role is problem-solving. As machines take over routine tasks, workers will be free to focus on more complex problems that require a human touch. This could include customer service, product design, and strategic planning.

Creativity will be one of the top three most important skills for workers in 2025 (source: World Economic Forum).

To succeed in this new landscape, workers must be adaptable and willing to learn new skills. They will also need to be comfortable with ambiguity and able to think creatively about complex problems.

For companies, this means investing in their workforce and providing opportunities for training and development. It also means creating a culture that values creativity and encourages collaboration and innovation.

The Role of Market Research

Market research can play a valuable role in helping companies stay ahead of the curve within the changing work landscape. By conducting research and gathering insights about the skills and attributes that will be most valuable in the future, companies can better prepare their workforce and position themselves for success.

Market research can be beneficial in identifying the skills and attributes that will be most in demand in the future. For example, a company might conduct research to identify the skills required for jobs that are likely to emerge due to automation. They might also gather insights about the skills that will be most valuable in industries that are likely to be less impacted by automation.

Market research can also help companies better understand the needs and preferences of their workforce. For example, a company might conduct research to gather insights about what motivates employees and what types of work environments are most conducive to creativity and innovation.

Finally, market research can help companies identify opportunities for innovation and growth. By gathering insights about changing customer needs and preferences, companies can develop new products and services that meet those needs and stay ahead of the competition.

Investment in retraining and reskilling could generate up to $11.5 trillion in global economic activity by 2028 (source: Oxford Economics).

To succeed in the future of work, companies must be proactive and adaptive. By leveraging the insights provided by market research, they can position themselves for success and ensure that their workforce is equipped with the skills and attributes needed to thrive in an increasingly automated world.

Fostering Creativity in the Workplace

Companies must foster creativity in their workforce to stay competitive in an increasingly automated world. Here are some tips and strategies for doing so:

Encourage Collaboration: Collaboration is essential for creativity. Encourage your employees to work together and share ideas. Create opportunities for cross-functional teams to work on projects together.
Provide Training and Development: Invest in your workforce by providing opportunities for training and development. This could include things like workshops, courses, and coaching.
Create a Culture of Innovation: Foster a culture that values innovation and encourages employees to take risks and try new things. Celebrate successes and learn from failures.
Embrace Diversity: A diverse workforce brings diverse perspectives and ideas. Embrace diversity and create a culture that values inclusivity.
Provide Time and Space for Creativity: Creativity requires time and space to flourish. Provide your employees with the time and resources they need to be creative.

Industries Where Human Creativity is Critical

While healthcare and education are two industries where human connection is essential, there are many other industries where creativity plays a critical role. Here are some examples:

Advertising: Advertising is all about creativity. Companies need to be able to create compelling messages and visuals that capture the attention of their target audience. This requires creative thinking and the ability to anticipate trends and stay ahead of the competition.
Design: Designers create everything from product packaging to digital interfaces. To be successful in this field, designers need to be able to think creatively and come up with innovative solutions to design problems.
The Arts: From visual art to music to theatre, the arts are all about human creativity. Whether it’s composing a new piece of music or creating a new painting, artists rely on their creativity to express themselves and connect with their audience.
Fashion: The fashion industry is all about creativity and innovation. From designing new clothing lines to creating eye-catching window displays, fashion professionals need to be able to think outside the box and come up with new and exciting ideas.

Preparing Students for the Jobs of the Future

With automation rapidly transforming the workforce, it’s essential to consider how education can be adapted to prepare students for future jobs. Here are some ways that education can help prepare students for the changing landscape of work:

Teaching Problem-Solving Skills: Problem-solving is a critical skill in an automated world. Workers will need to be able to analyse complex problems and come up with creative solutions. Schools can teach problem-solving skills by allowing students to work on real-world problems and encouraging them to collaborate and think creatively.
Fostering Critical Thinking: Critical thinking is another vital skill for the future of work. Workers must be able to analyse data and information and make informed decisions. Schools can foster critical thinking by teaching students how to evaluate information and arguments and encouraging them to think critically about the world around them.
Encouraging Creativity: As discussed, human creativity will be a critical asset in an automated world. Schools can encourage creativity by providing students with opportunities to express themselves through art, music, and writing and by encouraging them to think outside the box and develop innovative solutions to problems.
Teaching Digital Skills: As automation becomes more widespread, digital skills will become increasingly important. Schools can prepare students for the future of work by teaching them how to use technology effectively and adapt to new digital tools and platforms.

The Impact of Automation on Workers

While automation has many benefits in terms of increased efficiency and productivity, it also has the potential to impact workers negatively. Here are some of the potential negative impacts of automation on workers:

Job Loss: The most apparent impact of automation is the potential for job loss. As machines take over routine tasks, workers in these fields may find themselves out of work. This can be particularly difficult for workers lacking the skills or resources to transition to new roles.
Reduced Job Security: Even workers not directly impacted by automation may find themselves at risk of reduced job security. As companies increasingly rely on automation to cut costs and increase efficiency, workers may face layoffs or reduced hours.
Lower Wages: In some cases, automation can lead to lower wages for workers. This may happen if machines can perform tasks more quickly and efficiently than humans, decreasing the value of human labour.
Need for Retraining: For workers displaced by automation, retraining will be essential. However, it may be difficult for some workers to access the resources and support needed to learn new skills and transition to new roles.

As automation continues to transform the workforce, it will be necessary for companies and policymakers to consider how to mitigate the potential negative impacts on workers. This could include investing in programs to retrain displaced workers, providing job security and fair wages, and supporting workers as they adapt to the changing work landscape.

30% of workers are at high risk of being displaced by automation by the mid-2030s (source: PwC).

Overall, while automation has many benefits, it’s important to remember that it also has the potential to impact workers significantly. By taking steps to mitigate these impacts, we can ensure that the benefits of automation are shared more equitably and that workers can thrive in the changing work landscape.

In the face of automation, getting caught up in concerns about job loss and economic disruption is easy. However, it’s important to remember that automation also brings benefits in terms of increased efficiency and productivity. The key is to find the right balance between automation and human creativity.

“In an increasingly automated world, creativity is the new literacy.” – Gerard Adams, entrepreneur and investor.

As we’ve seen in this article, human creativity will remain essential in the future of work. While machines are great at routine tasks and processing large amounts of data, they cannot replicate the unique perspective and problem-solving abilities of the human mind. Companies that foster creativity in their workforce will be better positioned to thrive in the changing work landscape.

In addition to fostering creativity, companies must consider the impact of automation on workers. While automation can bring many benefits, it also has the potential to negatively impact workers through job loss, reduced job security, and lower wages. As such, companies and policymakers should consider how to mitigate these impacts and ensure that workers can thrive in an increasingly automated world.

“Automation can liberate human beings from the burden of repetitive work and free us to pursue more creative and fulfilling activities.” – Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

Market research can play an important role in helping companies stay ahead of the curve and identify the skills and attributes that will be most valuable in the future. By leveraging the insights provided by market research, companies can position themselves for success and ensure that their workforce is equipped with the skills and attributes needed to thrive in an increasingly automated world.

Preparing students for the jobs of the future will require a combination of traditional academic skills and newer digital and creative skills. By adapting their curriculum and teaching methods, schools can help ensure that students have the skills and attributes needed to succeed in an increasingly automated world.

The future of work is likely to be characterised by a blend of automation and human creativity. By balancing these two forces, companies can position themselves for success and ensure they can thrive in the changing work landscape. However, companies and policymakers need to consider the impact of automation on workers and for schools to prepare students for the jobs of the future. By taking a holistic approach, we can ensure that the benefits of automation are shared more equitably and that workers and students can thrive in the changing landscape of work.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

For our ‘People in Research’ series, we caught up with Harriet Jowett, a seasoned market research professional who recently joined Kadence International’s UK office as Insight Director and Head of People and Culture after a successful tenure at the Football Association (FA).

With her extensive experience and expertise in the industry, we were excited to hear Harriet’s insights on the latest market research trends, the challenges and opportunities facing the industry, and her vision for Kadence’s future growth and success.

Tell us about yourself, your background, and what brought you to your current position at Kadence International.

I started my career in agency roles and worked in several agencies with clients across retail and FMCGs, banking, tech, and automotive. I then moved into a client-side position at The Football Association (FA), leading the internal Insights team. During my three-and-a-half-year tenure at the FA, I supported stakeholders across the business to generate insight that could enable evidence-based decision-making.

At The FA, we promoted the value of insight and supported stakeholders internally to use research to help them achieve their strategic goals. This included driving ticket sales to matches at Wembley Stadium, improving the hospitality experience, and developing or trialling new grassroots football.

It was a fantastic role, but I wanted to return to the agency world and work with new and different clients to help them achieve their strategic objectives and apply what I’d learned client-side —bringing that strategic alignment of insight into the agency setting.

How do you identify research opportunities with clients?

Identifying new research opportunities depends on the relationship we have with our clients. Through our interactions and the work we deliver with existing clients, we build relationships whereby we can have two-way dialogues and conversations. For these clients, we can become a trusted partner, and once we understand their business goals and objectives, we can pre-empt on their behalf where research might offer value.

With new clients, we must identify from the outset what we can offer them as a global market research agency. How can we differentiate ourselves, and how can we offer value?

Our strength lies in reaching hard-to-reach audiences; we have breadth and coverage across the globe. It’s about demonstrating how this value aligns with the client’s strategic goals and objectives. The first thing is to demonstrate the value of Kadence International and then focus on building and strengthening relationships — that’s where we can become a trusted partner and understand more about our clients and their businesses.

How do you ensure that research findings are communicated effectively to clients?

Having worked in a client-side position, I believe the strategic alignment of insight is critical. We must align our research and findings with a strategic objective or goal so that our clients can directly apply the results.

It is also imperative to communicate our insights effectively, and there are three principles I tend to use.

The first is ensuring clarity of insight. No matter how complex the problem is, my rule of thumb is if I’m walking into a meeting and my client asks me what we found in our research; I should be able to summarise the findings and recommendations in less than five minutes. As a research partner, it is our job to ensure clarity of insight and how it can be used; otherwise, it will be challenging for our clients to activate internally.

Secondly, it’s very tempting to go off tangents with research and get swayed by what’s new, different, or interesting. It is our job to stay on track and align all that we uncover to the objectives at hand.

This is how we can demonstrate our value — linking the insights back to the objectives to help our clients maintain internal stakeholder engagement and buy-in, reinforce the value of research budgets and provide the evidence needed to make strategic decisions.

The third and final principle is being brave in how we present our insights and the recommendations these generate. At times, what we conclude can challenge internal hypotheses or existing thinking. We must be brave in putting forward our opinions and conclusions based on the research we have undertaken. This is where and how we can build trust.

How do you keep up with all the rapid changes in technology?

Keeping up with the latest technology is one of the biggest challenges in the market research industry. We must regularly attend industry conferences, online webinars, seminars, and events to stay connected to new innovations and best practices as much as possible.

While embracing new ideas in technology and AI presents a brilliant opportunity in research, it is also essential to be mindful of where and how we apply them. We need to maintain credibility in the industry and the research we conduct for our clients. We must innovate, try new things, experiment, and explore while retaining the best practice foundations and pillars of research.

We often discuss this with our clients to explore where and how different methodologies can be applied. Sometimes, the client and I will take a leap of faith and see what this can generate.

How do you use data, visualisation, and storytelling in a compelling way with clients?

For me, storytelling in research and how we communicate insight is key. Ahead of any presentation, I always ask myself and my team: ‘If your laptop breaks during the presentation and you no longer have the slides to back up what you need to say, can you tell the story of the research and take your client on a journey to unfold the insights and recommendations?’ If not, let’s look again and ensure we know the story inside out.

Storytelling has been a huge focus area for me, and I have spoken at conferences about using it in research.

So often, we can get lost in detail and need to lift our heads and see the bigger picture. We need to unravel the story, unravel what we’re trying to understand, and be able to tell our clients the story from start to finish.

Do you have a preference for a particular research methodology?

In my early years, I leaned more toward qualitative research specialising in running focus groups, moderating workshops, conducting in-depth interviews, and conducting ethnographic research. When I moved into my client-side role, I switched to quantitative research as we did many quantitative studies in-house with internally owned samples. We used analytical tools internally and only worked with partner agencies on more complex studies requiring advanced analytics.

As a result, I’m a mixed-method researcher now, and, truthfully, I don’t have a preference. What’s important to me is identifying the correct method to answer the client’s objectives and budget. There are times when the perfect methodology isn’t feasible from a timing or a budget point of view. So, what can we do within the time frame and budget to deliver the best possible results for our client? This is my golden rule when determining appropriate methodologies and recommending these to clients (while also ensuring best practices, of course).

Consumers-are-taking-control-of-their-well-being-with-wearable-tech

What unique approaches do you take to designing and implementing a research project that delivers the necessary data and information?

I always propose upfront kick-off meetings and stakeholder engagement opportunities through workshops or one-to-one interviews throughout the project. Not only does this ensure we have buy-in on the project from the outset, but it also allows us to establish any existing hypotheses/questions to incorporate into the project and crucially understand how the research will be used. Having this clarity up-front is key to ensuring that our outputs will be what the client needs.

In your previous roles, you have worked with research agencies like Kadence. What important lessons did you learn from that experience?

The biggest lesson was that proper planning and time up-front for considered design is essential – you only get out of research what you put into it.

The other lesson I learned is that it requires further investigation if the data feels intuitively wrong or doesn’t make sense. So often on projects, some of the most insightful ‘a-ha’ moments come from when something doesn’t feel right, and you keep digging to understand what is at play under the surface. Don’t be afraid to challenge the data and make it work harder!

The third lesson is the importance of clarity, as I mentioned before. Clarity of message allows us to demonstrate the value of our design, analysis, and thinking. It’s the main thing that will keep clients engaged in the value of research.

How do you engage stakeholders to ensure their voices are incorporated into the research process?

It helps to engage with the stakeholders upfront and, if time permits, to take the opportunity to keep them on the journey with you, especially with longer projects that might take multiple months to deliver. It is critical to reengage with them at different points to keep the project top of their mind as things constantly change in clients’ businesses.

What makes your new role at Kadence exciting?

I am excited to have returned to the agency world and am able to apply what I learned in a client-side setting to help a diverse range of clients achieve their strategic objectives.

The other part of my role is heading up People and Culture. This is a new area for me but one I’m very passionate about. I’ve always enjoyed managing and leading teams. I strongly believe developing others by providing opportunities to expand their skill sets and knowledge in a safe and collaborative environment is critical.

At Kadence International, we have five core values of the culture we aim to live and breathe daily. Since joining the team, I have run 1:1 interviews with all team members to understand if we are doing this and, if we’re not, why and what we can be doing differently. Following these 1:1s, I’m currently working with the senior leadership team to put some working groups in place and develop action plans for key initiatives aligned with each of our pillars. We already have an incredibly positive, supportive, and inclusive culture, and I’m excited to build on this further and create more opportunities for our teams to grow and develop.

Do you have any advice for someone entering the market research field?

The fascinating thing about market research is that it’s always changing. It’s constantly evolving and becoming more innovative over time. I would advise anyone entering the field to explore and try different methodologies and work with clients across a variety of sectors and in various roles (marketing, commercial, product, design, etc.) It’s the only way you can truly understand the value of market research and how to apply it strategically and commercially. You can also learn a lot if you take the time to listen and build relationships with your clients, and be open to new ideas. Building great networks with people working in other agencies is also a brilliant thing to try and do – it can be a small world in research, and there is so much we can learn and share with each other!

How do you keep the company culture alive in a remote environment?

We’ve got several events in our UK office. We use Slack as the primary tool for connecting our team members when working remotely. There’s always something going on, and we have organised in-person socials. This helps encourage people to get into the office when and where they can. We also have many systems for recognising and rewarding our team members, including shout-outs in our monthly meetings for the small and big things people do on a day-to-day basis. At the core, it’s about ensuring we’re creating a positive, inclusive, and supportive culture where our team members feel they can be themselves and contribute to the company (and the clients we work with).

Your thoughts on what a successful leader should be like.

Leaders need to develop empathy and understanding of their team members. What environments are optimal for their growth? How do we facilitate people’s personal lives alongside their working environments and ensure they have the right balance? How do we ensure we have happy clients and that our employees feel recognised and rewarded for the work they do for our clients?

Great leaders lead by example and demonstrate a commitment and investment in their people and want them to succeed, not because it looks good for their organisation but because it’s good for their teams.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Great branding doesn’t just happen overnight.

The most successful brands in the world owe their success, in part, to the strategic implementation of market research.

Every aspect of their branding— down to the last curve in the typeface, has been carefully crafted using insights gained through market research.

Think of any iconic brand, and you’ll undoubtedly see how great branding goes beyond how a brand looks and feels; it’s what evokes emotions in the minds of consumers.

Brand recognition and reputation are crucial for a company’s success. A strong brand can create customer loyalty and trust, differentiate a company from its competitors, and increase market share. However, building a successful brand requires careful planning and execution. This is where market research comes in.

Market research helps brands develop a branding strategy that resonates with their target audience and creates a strong and lasting impression. In this blog post, we will discuss the role of market research in developing successful branding strategies and provide examples of leading global brands and case studies.

Understanding the Target Audience

One of the most critical components of branding is understanding the target audience. This includes identifying their needs, preferences, and behaviors. Market research can provide insights into the target audience’s demographics, psychographics, and buying habits. This information can help companies to tailor their branding strategy to the specific needs of their customers.

Dove’s “Campaign for Real Beauty” was a successful branding strategy based on market research. The campaign targeted women who felt the beauty industry promoted unrealistic and unattainable beauty standards. Dove’s research showed only 2% of women described themselves as beautiful. The campaign featured images of real women with different body types and skin tones, promoting the idea that every woman is beautiful. The campaign was successful because it spoke to the needs of Dove’s target audience and challenged traditional beauty standards.

Differentiation from Competitors

Another crucial aspect of branding is differentiation from competitors. Companies must identify what differentiates them from their competitors and highlight these unique selling points in their branding strategy. Market research can help companies identify and compare their strengths and weaknesses.

Apple’s branding strategy is based on differentiation from its competitors. Apple’s research showed consumers were frustrated with the complexity of technology and the lack of intuitive design. Apple’s products are designed to be simple and easy to use, which sets them apart from their competitors. Apple’s branding strategy highlights the company’s commitment to design, simplicity, and innovation, creating a loyal customer base.

Creating Brand Awareness and Recognition

Creating brand awareness and recognition is another critical branding component. Companies must ensure their brand is visible and memorable to their target audience. Brand awareness research can help companies identify the most effective channels for reaching their target audience and create messaging that resonates with them.

Coca-Cola’s “Share a Coke” campaign was a successful branding strategy for creating brand recognition. The campaign featured Coke bottles with common names printed on them, encouraging customers to share a Coke with their friends and family. The campaign was successful because it created a sense of personalisation and connection with the brand, which increased brand recognition and loyalty.

How to conduct market research to shape powerful brands.

Branding is a crucial aspect of any business, and conducting market research is essential in developing a successful branding strategy. Market research can provide valuable insights into consumer behaviour, preferences, and attitudes, which can be used to develop a branding strategy that resonates with the target audience.

Define the Research Objectives.

The first step in conducting market research for branding is to define the research objectives. This involves identifying the research goals, such as understanding consumer behaviour, preferences, or attitudes, and designing a clear research plan to achieve these objectives.

Identify the Target Audience.

The next step is to identify the target audience. This involves defining the target audience’s demographics, psychographics, and behaviours, including their needs, wants, and preferences. The target audience should be clearly defined to ensure the research is focused and the insights gained are relevant.

Select the Research Methodology.

The third step is to select the research methodology. Several market research methodologies are used for branding research, including surveys, focus groups, in-depth interviews, and ethnographic research. The research methodology should be appropriate for the objectives and the target audience.

Develop the Research Instrument.

Once the research methodology has been selected, the next step is to develop the research instrument. This involves designing the survey, focus group guide, interview questions, or ethnographic research plan. The research instrument should be designed to collect relevant data and provide insights into the target audience’s needs, wants, and preferences.

Collect and Analyse the Data.

The next step is to collect and analyse the data. This involves collecting the data using the selected research methodology and analysing the data to identify patterns and trends. The data should be analysed using statistical methods like regression or factor analysis to identify significant insights.

Develop the Branding Strategy.

The last step is to develop the branding strategy. This involves using the insights gained from market research to develop a branding strategy that resonates with the target audience. The branding strategy should be developed with the target audience in mind and to meet their needs and preferences.

Methods for Conducting Market Research for Branding

Surveys

Surveys are one of the most commonly used market research methods for branding research. Surveys can be conducted online, in person, or by phone and can be used to collect quantitative data on consumer behaviour, preferences, and attitudes.

Focus Groups

Focus groups involve bringing together a small group of people to discuss a specific topic, such as a brand or product. Focus groups can be used to collect qualitative data on consumer behaviour, preferences, and attitudes.

In-Depth Interviews

In-depth interviews involve one-on-one interviews with participants to gather detailed information about their behaviour, attitudes, and preferences. In-depth interviews can provide valuable insights into consumer behaviour and preferences.

Ethnographic Research

Ethnographic research involves observing and studying people in their natural environment. This methodology is useful for understanding consumer behaviour and preferences in a specific cultural context.

Iconic brands and how they differentiate themselves.

Let’s take a closer look at other brands that illustrate the role of market research in developing successful branding strategies.

Airbnb evolved its brand identity and strategy.

Before adopting the slogan “belong anywhere,” Airbnb’s message was to “travel like a human.” The change came to light in 2014 when founder Brian Chesky realised that Airbnb was more than a tool people used to travel.

Airbnb’s branding strategy is based on differentiation from traditional hotels. Airbnb’s market research showed that travellers sought unique and authentic travel experiences not found in traditional hotels. Airbnb’s branding strategy highlights the company’s commitment to providing travellers with a more personal and local travel experience. The company’s messaging focuses on the idea that travellers can “live like a local” and experience a city like a resident. This branding strategy has been successful because it speaks to the needs of Airbnb’s target audience and sets the company apart from its competitors.

One main ingredient in Nike’s messaging is to “bring inspiration and innovation to every athlete.”

Nike’s branding strategy is based on creating a strong emotional connection with its target audience. Nike’s market research showed that its target audience sought more than just shoes or athletic apparel. Nike’s branding strategy highlights its commitment to inspiring and empowering athletes and promoting a “just do it” attitude. Nike’s messaging and advertising campaigns are designed to evoke a sense of inspiration and motivation in its target audience. The company has also created a strong emotional connection with its customers by associating itself with high-profile athletes such as Michael Jordan and Serena Williams. This branding strategy has been successful because it speaks to the emotional needs of Nike’s target audience and creates a strong and lasting impression.

Pepsi’s branding strategy is based on differentiation from its main competitor, Coca-Cola.

Pepsi’s market research showed that its target audience sought a bolder, more exciting alternative to Coca-Cola. Pepsi’s branding strategy highlights the company’s commitment to providing a more youthful and dynamic brand image. The company’s messaging and advertising campaigns are designed to evoke a sense of excitement and energy in its target audience. Pepsi’s branding strategy has also successfully created memorable advertising campaigns, such as the “Pepsi Challenge” and the “Pepsi Max Unbelievable” campaign. These campaigns have created a strong and lasting impression on Pepsi’s target audience.

“If you’re going to be competitive, if you’re going to be comparative, if you’re going to be head-on, there’s a lot at risk,”

-Susan Fournier, Dean of the Questrom School of Business at Boston University

Market research plays a crucial role in developing successful branding strategies. Understanding the target audience, differentiating from competitors, and creating brand awareness and recognition are essential to a successful branding strategy.

Market research can provide companies with valuable insights into their target audience and help them to tailor their branding strategy to their specific needs. Successful global brands such as Apple, Nike, and Coca-Cola have used market research to develop branding strategies that resonate with their target audience and create a strong and lasting impression. By investing in market research, companies can create successful branding strategies that set them apart from their competitors and build a loyal customer base.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The world has long predicted the massive potential of Asia’s rise, but it’s time for the rest of the world to adjust its outlook. The reality is that the future has arrived even sooner than anticipated.

According to the Asian Development Bank (ADB), developing economies in Asia and the Pacific are expected to experience faster growth this year, fueled by the easing of pandemic restrictions and boosting consumption, tourism, and investment. The region’s growth prospects are particularly brightened by the reopening of the People’s Republic of China (PRC), which has shifted away from its zero-COVID strategy.

The ADB’s Asian Development Outlook (ADO) April 2023 report projects that economies in Asia and the Pacific will grow by 4.8% this year and the next, representing an improvement over the 4.2% growth rate seen in 2022. While developed countries are facing a growth slowdown, the emerging economies in Asia are set to thrive, with projections suggesting excluding the PRC; developing Asia is forecasted to grow 4.6% this year and 5.1% in 2024. Meanwhile, the region’s inflation is expected to gradually moderate towards pre-pandemic levels, although there may be considerable variation across different economies.

What’s fueling this growth? Favorable demographic trends with a young population, a growing middle class, and high-tech adoption rates are just a few factors responsible for this upward trend. With such impressive growth rates, it’s no surprise that more and more companies are expanding their operations and eyeing entry into these markets.

Exciting factors like a burgeoning middle class, ongoing urbanisation, and high technology adoption in countries like India, Vietnam, and the Philippines contribute to this explosive growth. But, hold on, there are risks involved too.

Cultural and language barriers and the need for more information and data make market research in these markets more challenging. Are you ready to take the plunge and seize the opportunities offered by these emerging economies?

With an impressive growth rate, it’s no wonder businesses worldwide are turning their attention to these emerging economies, eager to tap into their enormous potential. But, to successfully penetrate these markets, comprehensive market research is crucial. In this blog post, we’ll explore how to conduct market research in emerging markets in Asia and identify the key factors to consider with real-world examples of global brands and how they entered these markets.

Understand the Market.

The first step in conducting market research in emerging markets is understanding the market. This includes understanding the economic, political, and cultural environment, as well as the needs and preferences of the target audience. Companies must conduct thorough research to understand the local market, including the competitive landscape, regulatory environment, and consumer behaviour.

Identify the Target Audience.

The next step is to identify the target audience. This includes understanding the target audience’s demographics, psychographics, and buying habits. Companies need to research to understand the needs and preferences of the local population and how they differ from other markets.

Use Local Research Partners.

Companies should consider partnering with local research partners to overcome language and cultural barriers. At Kadence International, we have a breadth of coverage worldwide, with offices in ten countries.

Local research partners can provide valuable insights into the local market and help companies understand the target audience’s cultural nuances.

Consider Online Research Methods.

Online research methods can be an effective way to conduct market research in emerging markets. Online research methods can gather data from a large and diverse population sample and can be completed quickly and cost-effectively.

Pay Attention to Cultural Nuances.

Cultural nuances are essential to consider when conducting market research in emerging markets. Companies need to understand the cultural norms and values of the local population and adjust their research methods accordingly.

When Coca-Cola entered the Myanmar market, it conducted online surveys to understand the local market. Coca-Cola used online surveys to gather data on the local population’s beverage preferences and habits.

When US-based fast food giant KFC entered the Chinese market, it had to adapt its menu to appeal to the local population. KFC introduced menu items that catered to local taste preferences, such as rice dishes and egg tarts. Similarly, when McDonald’s entered the Indian market, it conducted extensive research to understand the local market. The brand has no beef or pork products on its menu and adopted certain items and their names for the Indian market, like the Maharaja Mac.

Ownership structures

Asian companies have emerged as global leaders in traditional industries such as industrial and automotive sectors and in areas such as technology, finance, and logistics. The last two decades have seen a shift in the industry mix of the region’s largest companies, with a decline in the manufacturing of capital goods and growth in infrastructure and financial services.

When it comes to ownership structures, growth strategies, and operating styles, Asian corporate giants differ significantly from publicly owned Western multinationals. About two-thirds of the 110 Chinese companies listed in the Fortune 500 are state-owned, and the region also boasts several large conglomerates.

In Japan, the “big six” keiretsu also have significant weight in the country’s equity market, with each owning numerous companies across multiple industries. For instance, all major Japanese car manufacturers can be traced back to a keiretsu.

And India’s top six conglomerates alone employ more than two million people.

Emerging Markets in Asia

Here are some examples of emerging markets in Asia:

China: A large, fast-growing economy with a massive population and a rapidly expanding middle class, supported by a government policy of reform and opening up to the world.

India: Boasting a young and growing population, a rising middle class, and a government focused on reform, India is poised to be one of the fastest-growing economies in the world

Indonesia: With a young population, a rapidly urbanising society, and a large consumer market, Indonesia is a thriving economy and an attractive destination for foreign investment.

Vietnam: An economy that has transformed rapidly in recent years, Vietnam is home to a young and growing population, low labor costs, and an expanding manufacturing sector.

Philippines: A country with a young and educated workforce, a large consumer market, and a rapidly expanding services sector, the Philippines is a popular destination for foreign investment and outsourcing.

Malaysia: An economy that has diversified beyond its traditional focus on commodities, Malaysia is home to a well-educated workforce, a thriving manufacturing sector, and a growing services sector.

Thailand: A popular tourist destination and manufacturing hub, Thailand is home to a large and growing consumer market, a robust agricultural sector, and a thriving services sector.

Bangladesh: With a large and growing population, a low-cost labor force, and a government committed to reform and development, Bangladesh is one of the fastest-growing economies in the world.

Pakistan: A country with a large and young population, a thriving agricultural sector, and a rapidly growing services sector, Pakistan has enormous economic potential.

Myanmar: With over 50 million people and an economy opening up to the world, Myanmar is poised for rapid growth in the coming years.

Cultural Aspects Brands Need to Know

When conducting market research in emerging markets in Asia, companies need to understand the cultural aspects of the local population. Here are some cultural elements that brands need to know:

Collectivism vs. Individualism.

Some cultures are more collectivistic, where the needs of the group are prioritised over the needs of the individual. Other cultures are more individualistic, where the needs of the individual are prioritised over the needs of the group.

High vs. Low Context.

Some cultures are high-context, which means they rely heavily on non-verbal communication and indirect language to convey meaning. Other cultures are low-context, where people rely more on direct communication and explicit language.

Power Distance.

Some cultures have a high power distance, with a significant distance between those in authority and those who are not. Other cultures have a low power distance.

Masculinity vs. Femininity.

According to Geert Hofstede, “masculine” and “feminine” are often used to describe society’s cultural dimensions. These dimensions are based on various cultural variables, such as values, beliefs, and attitudes.

In a “masculine” culture, competitiveness, assertiveness, and material success are highly valued. This may lead to a focus on achievement and advancement in the workplace, emphasising individual success over group cohesion. There is also a tendency to prioritise ambition and competition over collaboration and empathy.

In a “feminine” culture, on the other hand, collaboration, empathy, and social harmony are emphasised. There may be less focus on material success and more on the quality of life, work-life balance, and social responsibility. In the workplace, there may be more emphasis on collaboration and teamwork, with less emphasis on hierarchical structures or individual achievement.

It’s worth noting that these cultural dimensions are not binary or mutually exclusive, and different cultures may exhibit varying degrees of masculine and feminine characteristics. Additionally, individuals within a culture may have unique values and beliefs that don’t necessarily conform to cultural norms.

Religion.

Religion can also play a significant role in shaping cultural values and norms in emerging markets. Companies need to understand the religious beliefs and practices of the local population and how they may impact consumer behaviour. For instance, in Indonesia, where most of the population follows the Islamic faith, even non-food companies must consider “halal” concepts.

Case Study: Coca-Cola in India

Coca-Cola is a global brand that has successfully entered emerging markets in Asia. One example is India. Coca-Cola entered the Indian market in 1993 and initially faced challenges due to cultural and political barriers. The company had to adjust its marketing strategy and product offerings to appeal to the local population.

Coca-Cola conducted extensive market research in India to understand the local market. The company discovered that the local population preferred sweeter beverages and was concerned about water quality. Coca-Cola adjusted its product offerings to include sweeter beverages and invested in local water treatment facilities to ensure the quality of its products.

Coca-Cola also adjusted its marketing strategy to appeal to the local population. The company used local celebrities and cultural events in its advertising campaigns to create a solid emotional connection with the local audience.

Due to language and cultural barriers, conducting market research in emerging markets in Asia can take time and effort.

However, with the right approach, companies can enter these markets and create successful branding strategies. Understanding the local market, identifying the target audience, using local research partners, considering online research methods, and paying attention to cultural nuances are all critical factors to consider when conducting market research in emerging markets.

Companies that take the time to conduct thorough market research and adjust their branding strategy to meet the needs of the local population can create a strong and lasting impression with their target audience.

Challenges brands face in emerging markets and strategies for overcoming them.

While emerging markets in Asia offer significant growth opportunities for brands, they also present unique challenges that brands must overcome. These challenges include language and cultural barriers, limited infrastructure, and the need for more data and information.

Language and Cultural Barriers.

One of the primary challenges brands face in emerging markets is language and cultural barriers. Companies must understand the local language and cultural nuances to develop a successful branding strategy that resonates with the target audience.

To overcome language and cultural barriers, brands should consider partnering with local marketing agencies and research firms. These firms can provide valuable insights into the local culture and language, help develop messaging that resonates with the target audience, and ensure that the brand’s message is culturally sensitive and appropriate.

When Nike entered the Chinese market, the company partnered with a local marketing agency to develop a branding strategy that resonated with the local population. The agency provided insights into the local culture and language, which helped Nike develop messaging that resonated with the target audience.

Limited Infrastructure.

Another challenge brands face in emerging markets is limited infrastructure. Emerging markets may need more access to transportation, communication, and other essential infrastructure, making it difficult for brands to distribute products and conduct market research.

To overcome limited infrastructure, brands should consider developing innovative distribution strategies that leverage local infrastructure. For example, when Coca-Cola entered the Myanmar market, the company partnered with local distributors to establish a distribution network that leveraged local transportation infrastructure.

Lack of Data and Information.

Another challenge brands face in emerging markets is a need for more data and information. Emerging markets may need more access to data and information, making it difficult for brands to conduct market research and develop a successful branding strategy.

To overcome the lack of data and information, brands should consider investing in primary research methods, such as surveys, focus groups, and interviews. These research methods can help brands gather data and information directly from the target audience and provide valuable insights into consumer behaviour.

Regulatory Challenges.

Another challenge brands face in emerging markets is regulatory challenges. Emerging markets may have different regulatory frameworks, making it difficult for brands to navigate the local market and establish a presence.

To overcome regulatory challenges, brands should consider partnering with local experts who understand the local regulatory environment. These experts can provide valuable insights into local regulations and help brands navigate the local market.

Market research methodologies brands use to enter emerging markets in Asia.

Market research methodologies are diverse and should be tailored to the specific needs of each market. Surveys, focus groups, ethnographic research, in-depth interviews, social media monitoring, and big data analytics are some of the most commonly used market research methodologies in emerging markets in Asia.

Using these methodologies, brands can collect accurate and relevant data and develop successful branding strategies that resonate with the target audience.

As brands look to enter emerging markets in Asia, they must use market research methodologies tailored to each market’s specific needs. Market research methodologies in Asia are diverse, and brands must choose a suitable method to collect accurate and relevant data.

Surveys and Questionnaires.

Surveys and questionnaires are the most commonly used market research methodology in emerging markets. Surveys are typically used to gather data on consumer behaviour, preferences, and attitudes. They can be conducted face-to-face, online, or by phone.

In India, brands often use surveys to understand the local market. For example, when Coca-Cola entered the Indian market, it surveyed the local population’s beverage preferences and habits.

Focus Groups.

Focus groups are another popular market research methodology involving a small group discussing a specific product or service.

These groups can provide valuable insights into consumer behaviour, attitudes, and preferences.

Apple conducted focus groups to understand the local population’s needs and preferences when it entered the Chinese market.

Ethnographic Research.

Ethnographic research involves observing and studying people in their natural environment. This methodology helps understand consumer behaviour and preferences in a specific cultural context.

In Thailand, brands often use ethnographic research to understand the local market. For example, when Unilever entered the Thai market, it used ethnographic research to understand the local population’s skincare habits and preferences.

In-Depth Interviews.

In Vietnam, brands often use in-depth interviews to understand the local market. For example, when Nike entered the Vietnamese market, it conducted in-depth interviews with local consumers to understand their needs and preferences.

Social Media Monitoring.

Social media listening and monitoring involves monitoring and analysing social media platforms to gather consumer behaviour and preferences data. Social media monitoring can provide real-time insights into consumer behaviour and preferences.

In Indonesia, brands often use social media listening and monitoring to understand the local market. When McDonald’s entered the Indonesian market, it monitored social media to understand the local population’s reaction to its menu items and marketing campaigns.

Big Data Analytics.

Big data analytics involves analysing large volumes of data to identify patterns and trends. This methodology helps understand consumer behaviour and preferences at a large scale.

In the Philippines, brands often use big data analytics to understand the local market. For example, when Nestle entered the Philippine market, it used big data analytics to understand the local population’s food preferences and habits.

Emerging markets in Asia offer significant growth opportunities for brands but also present unique challenges. To establish a successful presence in these markets, brands must overcome language and cultural barriers, limited infrastructure, lack of data and information, and regulatory challenges. By partnering with local experts, investing in primary research methods, and developing innovative distribution strategies, brands can overcome these challenges and grow a successful branding strategy that resonates with the target audience.

When looking to conduct panel research, consider partnering with Kadence International, a multi-award-winning global market research agency with extensive experience and expertise in panel research. Contact us today to learn more about our panel research services and how we can help you gather the insights you need to drive business success.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

“Businesses that are solely focused on their product without understanding their customers will ultimately fail.” – Michael Seibel, CEO of Y Combinator.

This quote highlights the importance of understanding your customers and their needs, which is why market research is critical for any successful business. In today’s rapidly changing and competitive marketplace, it’s not enough to simply create a product and hope it will sell. You need to know who your customers are, what they want, and how they behave to make informed decisions and develop effective marketing strategies.

One approach to market research that is often overlooked is panel research. Panel research involves gathering data from a group of individuals who have agreed to participate in ongoing research studies. This type of research can provide valuable insights into consumer behaviour, attitudes, and preferences over time, which can help businesses stay ahead of the curve and make more informed decisions. In this article, we’ll explore why panel research should be part of your market research strategy and how it can help you better understand your customers and improve your marketing efforts.

The Benefits of Panel Research

One of the primary benefits of panel research is that it allows you to gather data from a consistent group of individuals over time. By surveying the same group of people multiple times, you can track changes in their behaviour and attitudes and identify trends or patterns that may be emerging. This can help you make more accurate predictions about future behaviour and inform your marketing strategies accordingly.

Another advantage of panel research is that it can provide a more accurate picture of consumer behaviour than other types of research. For example, traditional market research methods like focus groups or surveys are often conducted with a one-time sample of participants. However, these individuals may not represent your target audience as a whole. Their responses may be affected by factors like social desirability bias or their mood during the study.

With panel research, on the other hand, you can ensure that your sample is representative of your target audience and that the data you collect is more reliable and valid. This is because the same individuals are surveyed multiple times, which reduces the likelihood of random variations in responses and other sources of error.

Lastly, panel research can also be more cost-effective than other types of research. Because you are surveying the same group of people multiple times, you can often collect more data with fewer resources than you would need to conduct numerous one-time studies. This can be especially useful for small businesses or startups that have limited budgets but still need to gather high-quality data to inform their decisions.

Types of Panel Research

There are several types of panel research that brands can use to gather insights into their target audience. Each type has strengths and weaknesses, so choosing the one best suited to your research needs is essential.

Online Panels: Online panels are one of the most popular types of panel research. These panels consist of a group of individuals who have agreed to participate in research studies online. Businesses can use online panels to gather data on a wide range of topics, including consumer behaviour, attitudes, preferences, and more.

Mobile Panels: Mobile panels are similar to online panels but are conducted exclusively on mobile devices like smartphones and tablets. These panels can be particularly useful for gathering data on consumer behaviour in real-time, such as when they are shopping in-store or browsing a website on their mobile device.

Traditional Panels: Traditional panels are in-person through focus groups or one-on-one interviews. These panels can help gather in-depth qualitative data on consumer attitudes and preferences, but they can also be more time-consuming and expensive than online or mobile panels.

Customer Panels: Customer panels comprise of individuals who have already purchased a product or service from a business. These panels can help gather customer satisfaction feedback, identify improvement areas, and test new product ideas.

When choosing a panel research method, it’s important to consider your research objectives, target audience, and budget. Online panels and mobile panels may be more cost-effective and efficient, while traditional panels and customer panels may provide more in-depth qualitative data. It’s also important to ensure that your sample is representative of your target audience so that you can be confident in the data you collect.

How to Conduct Panel Research

Conducting panel research involves several key steps to ensure that you gather reliable and actionable data. Here are some best practices to follow:

Choose the Right Panel: The success of your panel research depends on choosing the right panel. Look for a panel provider with a large and diverse sample, with participants matching your target audience demographics. You should also ensure the panel provider has a robust data quality control process to minimise bias and ensure accurate data.

Create Effective Surveys: Once you have your panel, it’s time to design your survey. Consider your research objectives and craft questions to provide the insights you need. Ensure your questions are clear, concise, and unbiased to ensure accurate data. Keeping your surveys short is also important to avoid panel fatigue and maintain high response rates.

Conduct Your Survey: Once your survey is designed, it’s time to deploy it to your panel. Make sure your survey is mobile-friendly, as many panel members may complete it on their smartphones or tablets. It’s also a good idea to incentivise panel members to complete your survey through cash or gift card rewards to maintain high response rates.

Analyse Your Data: Once you have collected your survey data, it’s time to analyse it. Look for patterns and trends in the data, and compare them to previous waves of data to identify changes over time. Use statistical analysis to ensure your findings are reliable and valid.

Draw Insights and Make Decisions: Use your data to draw insights about your target audience and inform your marketing decisions. Use your insights to optimise your marketing strategies, improve your products or services, and better meet your customers’ needs.

Following these best practices ensures that your panel research provides valuable and reliable data to inform your business decisions.

Real-Life Examples

Many companies have used panel research to gather insights into their target audience and inform their marketing strategies. Here are some real-life examples of companies that have successfully used panel research:

Procter & Gamble: Procter & Gamble used a panel of customers to gather feedback on a new line of shampoo products. By gathering insights from the panel, they could identify which product features were most important to customers and optimise their marketing strategy accordingly. The result was a highly successful product launch that exceeded sales targets.

Netflix: Netflix has used panel research to gather insights into viewer behaviour and preferences. By analysing data from their panel, they could identify trends in viewing habits and preferences and optimise their content offerings accordingly. This has helped Netflix stay ahead of the curve and maintain its position as a leader in the streaming industry.

Hilton Hotels: Hilton Hotels used a panel of customers to gather feedback on their loyalty program. By gathering insights from the panel, they could identify areas for improvement and make changes to the program that better met the needs of their customers. The result was increased customer satisfaction and loyalty.

These examples demonstrate the power of panel research to provide valuable insights into consumer behaviour and preferences. By using panel research as part of their market research strategy, these companies were able to make more informed decisions and develop more effective marketing strategies.

Challenges and Limitations of Panel Research

While panel research has many benefits, it also has some challenges and limitations that businesses should be aware of. Here are some of the main challenges and limitations of panel research:

Selection Bias: Panel research can be susceptible to selection bias if the panel members do not represent the target population. This can occur if the panel provider has a biased sample or if certain demographics are over or underrepresented in the panel.

Low Response Rates: Panel research can also suffer from low response rates, especially if panel members are asked to complete surveys too frequently. Low response rates can lead to a biased sample and make it difficult to draw accurate conclusions from the data.

Panel Fatigue: Panel fatigue occurs when panel members become tired of completing surveys and start to provide less accurate or thoughtful responses. This can be especially problematic for longitudinal studies that require participants to complete multiple surveys over a period of time.

Limited Sample Size: Panel research is typically conducted with a smaller sample size than other types of research, which can limit the generalisability of the findings. This is especially true for niche or hard-to-reach populations.

Cost: While panel research can be cost-effective in the long run, upfront costs associated with panel recruitment and data collection can be prohibitive for smaller brands.

To address these challenges, brands should ensure that their panel is representative of the target population and that panel members are asked to complete surveys sparingly. Brands should also consider using incentives to encourage high response rates and reduce panel fatigue.

Finally, businesses should be aware of the limitations of panel research and use it in conjunction with other research methods to gather a more comprehensive understanding of their target audience.

Outsourcing Your Panel Research

While conducting panel research in-house can be tempting, outsourcing your panel research to a market research agency can have many benefits. Here are some advantages to consider:

Expertise: Market research agencies have extensive experience and expertise in panel research. They know how to recruit the right participants, design effective surveys, and analyse data in a way that provides actionable insights. This can lead to more accurate data and more informed decisions.

Access to Technology: Market research agencies have access to the latest technology and tools for panel research. This can include advanced survey software, data analysis tools, and reporting capabilities. Using these tools, agencies can provide more robust and detailed data than possible with in-house resources.

Quality Control: Market research agencies have established processes to ensure the quality and reliability of the data they collect. This can include data quality checks, respondent validation, and data cleaning to minimise bias and provide accurate data.

Time and Cost Savings: Outsourcing your panel research can save time and money compared to conducting it in-house. Market research agencies have established panels and recruitment processes in place, which can save time and resources. Additionally, outsourcing can help you avoid the upfront costs of panel recruitment and data collection.

Access to Niche Populations: Market research agencies have access to a wide range of panels, including panels that may be difficult to recruit in-house. This can include panels of healthcare professionals, IT professionals, or other niche populations.

By outsourcing your panel research, you can take advantage of these benefits and gain access to more accurate and reliable data. Market research agencies can provide various services, from panel recruitment and survey design to data analysis and reporting, to help you gather the insights you need to make informed decisions and drive business success.

Key Takeaways

Panel research is essential for brands looking to gain insights into their target audience and develop effective marketing strategies. Using panel research, brands can gather reliable data on consumer behaviour, attitudes, and preferences over time, making informed decisions that drive business success. However, panel research also has its challenges and limitations, which businesses should be aware of to ensure the data’s accuracy and reliability.

Outsourcing panel research to a market research agency can provide many benefits, including expertise, access to technology, quality control, time and cost savings, and access to niche populations. By working with a market research agency, businesses can ensure that their panel research provides accurate and actionable data that can inform their marketing strategies and drive business growth.

Key Takeaways:

Panel research provides valuable insights into consumer behaviour, attitudes, and preferences over time.
Panel research can be conducted using online panels, mobile panels, traditional panels, or customer panels.
Businesses should be aware of the challenges and limitations of panel research, including selection bias, low response rates, panel fatigue, limited sample size, and cost.
Outsourcing panel research to a market research agency can provide many benefits, including expertise, access to technology, quality control, time and cost savings, and access to niche populations.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Nearly 9 in 10 parents say their kids influence their purchase decisions. Recent studies have identified children as the most important influencers in making daily household shopping habits more environmentally responsible.

Climate activist Greta Thunberg also began her climate change journey when she persuaded her parents to adopt lifestyle choices that reduced their carbon footprint.

There has been a significant increase in awareness about the impact of human activity on the environment. As the world grapples with the challenges of climate change, young people are taking an active role in advocating for a more sustainable future. Children are increasingly influencing their parents to adopt green practices daily.

Spending on sustainable brands and products by Gen X has increased by 24 percent since 2019, as a result of the Gen Z influence.

Studies have shown that children significantly influence their parents’ behaviour when it comes to environmental issues. Parents with children concerned about the environment are more likely to change their daily habits and be more conscious of their impact on the planet. Children are also encouraging their parents to become more active in advocating for environmental issues and supporting brands that are committed to sustainability.

The Greta generation is growing up and looking to raise awareness, often starting in their own homes. Brands that are looking to become more sustainable should take note of the role that children are playing in this movement.

Steps brands can take to become more sustainable and appeal to eco-conscious families.

To convey their social purpose and position themselves as eco-friendly and sustainable to Gen Alpha and Gen Z, brands can follow these steps:

Be transparent.

Be open and honest about your sustainability practices and initiatives. Gen Alpha and Gen Z value sustainability and are more likely to trust and support brands that are transparent about their environmental impact.
Use eco-friendly materials.

Use environmentally friendly materials in your products and packaging. This can include using recycled materials, reducing plastic usage, and using biodegradable packaging.
Support social causes.

Gen Alpha and Gen Z are more likely to support brands actively involved in social causes. Support social causes that align with your brand’s values and messaging.
Communicate your values.

Clearly communicate your brand’s values and beliefs about sustainability. This can be done through social media, advertising campaigns, and product packaging.
Engage with your audience.

Engage with Gen Alpha and Gen Z through social media and other digital platforms. Encourage them to share their thoughts and feedback on your sustainability efforts.
Take concrete actions.

Take concrete actions to reduce your environmental impact. This can include reducing waste, using renewable energy sources, and supporting sustainable farming practices.
Educate your audience.

Educate your audience on sustainability issues and the impact of their choices. Provide tips and resources on how they can reduce their environmental footprint.

It is important for brands to not just talk about sustainability but to take steps to reduce their environmental impact actively. By doing so, they can gain the trust and support of Gen Alpha and Gen Z, who are increasingly conscious about sustainability and the environment.

Brands that want to appeal to eco-conscious families should take note of this and take steps to become more sustainable. By reducing waste, using sustainable materials, supporting environmental causes, and providing educational resources, brands can demonstrate their commitment to sustainability and appeal to consumers looking for eco-friendly products.

Not surprisingly, TikTok has become a popular platform for promoting sustainability and raising awareness about environmental issues among the younger generation. Its short-form video format and engaging content make it an effective platform for educating and inspiring others to take action toward a more sustainable future.

Here are a few examples of how TikTok contributes to the sustainability movement:

#ClimateChange and #Sustainability Challenges.

TikTok users have created various climate change and sustainability challenges, such as the #ClimateChangeChallenge and #SustainabilityChallenge. These challenges encourage users to share their own sustainable habits and tips, spreading awareness about the importance of sustainability.
Upcycling and DIY Videos.

TikTok is a popular platform for DIY and upcycling videos. Users share videos of themselves transforming old clothes or other items into something new and fashionable, encouraging others to reuse and repurpose items instead of throwing them away.
Sustainable Fashion and Beauty Tips.

Many TikTok creators use the platform to share sustainable fashion and beauty tips. They show how to shop secondhand at thrift stores and online, create sustainable skincare routines, and reduce waste in the beauty industry.
Environmental Education.

TikTok has also become a platform for environmental education. Creators share short videos explaining climate change, sustainability, and other environmental issues in a fun and engaging way.
Advocacy Campaigns.

Many advocacy campaigns related to environmental and sustainability issues have taken place on TikTok, including campaigns focused on reducing plastic waste, promoting renewable energy, and protecting biodiversity.

Barriers brands face when trying to become eco-friendly.

Several barriers brands face when trying to become eco-friendly. Some of these barriers include:

Cost.

One of the biggest barriers for brands that want to become eco-friendly is the high cost of sustainability. Sustainable materials and manufacturing processes can often be more expensive than traditional materials and methods. This can make it difficult for some brands to invest in sustainability.
Infrastructure.

Brands may also face barriers related to their infrastructure. For example, finding suppliers and manufacturers that use sustainable practices may be difficult. Additionally, it may require significant investment to update existing facilities and equipment to be more sustainable.
Lack of Consumer Demand.

While there is a growing demand for eco-friendly products, some brands may still face barriers related to consumer demand. Brands may hesitate to invest in eco-friendly practices if consumers are not yet prioritizing sustainability when purchasing.
Regulation.

Brands may also face barriers related to regulation. Governments may have regulations and policies that make it difficult for brands to adopt sustainable practices. Additionally, compliance with these regulations can be costly and time-consuming.
Education.

Finally, brands may face barriers related to education. Not all consumers may be aware of the benefits of eco-friendly products, and some may not understand the environmental impact of their purchasing decisions. Brands may need to invest in education and awareness campaigns to help consumers understand the importance of sustainability.

Becoming eco-friendly can be a challenging process for brands. However, as sustainability becomes more important to consumers and the planet, it is becoming increasingly necessary for brands to overcome these barriers and invest in sustainability.

Eco-Friendly Brands in the US, UK, and Asia: Examples and Positioning Strategies for Sustainability.

Here’s how successful sustainable brands position themselves as eco-friendly and attract consumers with their environmentally-friendly practices.

Patagonia.

Patagonia is a well-known outdoor apparel brand committed to sustainability. The brand has used recycled materials and organic cotton for years and has launched several initiatives to reduce its carbon footprint. Patagonia is known for its transparency in its supply chain and for advocating for environmental causes.

Eileen Fisher.

Eileen Fisher is a fashion brand focused on sustainable and ethical fashion. The brand uses organic cotton and recycled materials to make its clothing and has launched several initiatives to reduce its waste and carbon footprint. Eileen Fisher also partners with organizations that promote sustainability in the fashion industry.

Rapanui.

Rapanui is a sustainable clothing brand in the UK. The brand uses organic cotton and recycled materials to make its clothing and has a closed-loop production process that minimizes waste. Rapanui also uses renewable energy to power its factories and offsets its carbon footprint by planting trees.

Paperboat.

Paperboat is a beverage brand in India that uses natural ingredients and traditional Indian recipes to make its drinks. The brand uses eco-friendly packaging and is committed to reducing its carbon footprint by sourcing ingredients locally and using sustainable transportation.

Bamboo Straw Girl.

Bamboo Straw Girl is a brand in Singapore that sells eco-friendly bamboo straws. The brand sources bamboo from sustainable farms and has a closed-loop production process that minimizes waste. Bamboo Straw Girl also partners with environmental organizations and advocates for plastic-free living.

Sapa O’Chau.

Sapa O’Chau is a social enterprise in Vietnam that sells organic tea and coffee. The brand works with local farmers to source its ingredients and uses eco-friendly packaging. Sapa O’Chau also reinvests its profits into the local community, supporting education and sustainable tourism.

Messy Bessy.

Messy Bessy is a personal care and cleaning brand in the Philippines. The brand uses plant-based ingredients and eco-friendly packaging for its products. Messy Bessy also partners with organizations that promote environmental causes and provides employment opportunities to marginalized communities.

Avani Eco.

Avani Eco is a brand in Indonesia that produces eco-friendly bags and packaging made from cassava starch. The brand’s products are biodegradable and compostable, and its manufacturing process uses renewable energy. Avani Eco also partners with organizations that promote sustainable living and advocate for a circular economy.

MUJI.

MUJI is a Japanese brand that produces a wide range of products, including clothing, home goods, and food. The brand strongly focuses on sustainability and uses eco-friendly materials such as organic cotton and recycled paper. MUJI also encourages a minimalist lifestyle, which reduces waste and promotes sustainability.

Innowell.

Innowell is a Chinese brand that produces eco-friendly air purifiers. The brand’s purifiers use natural materials such as bamboo charcoal and HEPA filters to remove pollutants from the air. Innowell also focuses on energy efficiency, using less energy than traditional air purifiers.

Klean Kanteen.

Thailand-based brand Klean Kanteen produces eco-friendly water bottles and containers using stainless steel, a sustainable and recyclable material. It encourages consumers to reduce their use of single-use plastic bottles. Klean Kanteen also partners with organizations that promote environmental causes and sustainable living.

These brands have positioned themselves as environmentally-conscious by using eco-friendly materials, reducing waste, and promoting sustainable lifestyles. They also communicate their eco-friendly practices to consumers through marketing and transparency in their supply chains. Additionally, they partner with organizations that promote environmental causes and sustainable living, which helps to raise awareness of sustainability issues and promote positive change.

To position themselves as sustainable and appeal to this generation, brands need to take a 360-degree approach to sustainability. This means that they should consider not only the materials they use in their products and packaging but also the production methods and conditions, as well as their supply chain and distribution practices.

Brands that prioritize sustainability and are transparent about their practices can build trust with young consumers, who also yield some influence on their parents’ purchasing behavior and gain a competitive advantage in the marketplace. By adopting sustainable practices, brands can contribute to the global effort to address climate change and reduce their environmental impact.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The USD 500 billion beauty and personal care industry encompasses everything from skincare and cosmetics to hair care and personal grooming. This lucrative industry has seen a significant surge in influencer marketing campaigns to reach its target audience. In fact, beauty brands are some of the most-followed and active accounts on social media.

According to LTK’s national shopper study, beauty brands are the top product category from influencer recommendations. For beauty brands, there are ample opportunities for social selling; however, the intense competition in this space can be daunting.

The key to differentiating a beauty brand in such a crowded marketplace is to have the right influencer to communicate the message personally. This helps people become engaged and commit to the beauty brand. Beauty brands must also evaluate their campaign’s success to continue building upon it.

In this guide, you will learn about the benefits of utilising the top influencer platform to expand your beauty brand; tips on strategy, campaigns, and selecting the right influencers; and guidance on where to begin.

In the past decade, influencer marketing has become a crucial part of the marketing strategies of many beauty brands. Influencer marketing is leveraging social media influencers’ reach and influence to promote products or services. Beauty brands have partnered with influencers with a significant following on social media platforms such as Instagram, YouTube, and TikTok.

This guide will explore the impact and effectiveness of influencer marketing on beauty brands, including the advantages and disadvantages of this marketing strategy.

What is influencer marketing?

Influencer marketing is a type of social media marketing that focuses on using key leaders or ‘influencers’ to drive brand messages to the target market. Influencers are industry experts and social media personalities with established credibility, a large following, and niche audiences.

Influencer marketing plays an integral role in the beauty and personal care industry. From make-up tutorials to health and wellness routines, influencers can offer personal, real-time tips to help potential customers make informed purchasing decisions.

Companies view influencers as key brand partners in helping them connect with a targeted audience to increase awareness and sales. Creators or influencers representing the brand and its products can be extremely valuable for designing content strategies to reach a specific demographic. Such strategies can be crafted using various visuals and interactive materials that articulate the brand’s messaging and the influencer’s experiences. This can lead to an authentic relationship between the influencer and the brand’s audience.

The Advantages of Influencer Marketing for Beauty Brands:

Increased Brand Awareness

Partnering with influencers can help beauty brands reach a wider audience and increase brand awareness. Influencers have a dedicated following on social media, and their followers often trust and value their recommendations. Influencers promoting a beauty brand’s products can generate interest and awareness among their followers, leading to increased brand exposure.

Targeted Marketing

Influencer marketing allows beauty brands to target specific demographics and audiences. By partnering with influencers with a significant following within a particular demographic, beauty brands can reach their target market more effectively. This can result in higher engagement rates and more conversions.

Cost-Effectiveness

Compared to traditional advertising methods, influencer marketing can be a cost-effective way for beauty brands to promote their products. While partnering with top-tier influencers can be expensive, beauty brands can also work with micro-influencers with smaller followings but can still reach a targeted audience at a lower cost.

Authenticity

Influencer marketing can add authenticity to a beauty brand’s marketing strategy. Influencers are often seen as authentic and trustworthy by their followers, which can increase the perceived value of a beauty brand’s products. This can lead to increased engagement and conversions.

The Disadvantages of Influencer Marketing for Beauty Brands:

Risk of Inauthenticity

One of the main disadvantages of influencer marketing is the risk of inauthenticity. If influencers promote products solely for the sake of payment, it can come across as inauthentic and may damage their reputation with their followers. This can also poorly reflect the beauty brand, leading to decreased trust and credibility.

Limited Control

Beauty brands have limited control over influencers’ content when promoting their products. While they can provide guidelines and suggestions, ultimately, the influencer has creative control over the content. This can lead to inconsistencies in messaging and branding.

Saturation

Influencer marketing has become increasingly popular in recent years, leading to saturation in the market. With so many beauty brands partnering with influencers, it can be difficult for a brand to stand out and make an impact.

Challenges with metrics and ROI

Measuring the effectiveness of influencer marketing can be challenging, and it can be difficult to determine the return on investment (ROI). Metrics such as engagement rates, impressions, and conversions can be used to measure the success of a campaign, but it can be difficult to attribute sales directly to influencer marketing.

There are two types of influencers —micro-influencers and macro-influencers.

Both micro-influencers and macro-influencers have a place in the marketing world, but they have some distinct differences that set them apart.

The main differences between micro and macro influencers are their reach and cost. Micro-influencers usually have between 10k-100k followers, while macro-influencers have above 100k followers.

Micro-influencers have a smaller but more dedicated following, often with niche interests. They also tend to engage their followers more since their following is smaller. This can create stronger bonds between influencer and follower, often resulting in more meaningful connections.

On the other hand, macro-influencers have a larger but less dedicated following, usually due to a broader range of interests and less one-on-one interaction with followers.

Another big difference between the two is their rates for sponsored posts. Since macro-influencers often have bigger followings, they can usually command higher rates than micro-influencers.

However, this doesn’t necessarily mean they always have a higher ROI. Micro-influencers can have a higher ROI due to their more engaged followers.

Micro and macro influencers have advantages and disadvantages; choosing the right influencer will depend on the campaign’s specific needs. The size of their audience, the quality of their engagement, and the cost must be considered when selecting an influencer.

What types of platforms are most popular for Influencer Campaigns

Influencer campaigns showcase the power of influencers to boost brand engagement and inspire potential customers. This, in turn, can significantly affect sales within the beauty and personal care industry.

Beauty influencers greatly impact product sales worldwide, creating trends and transforming the beauty industry.

The platform with the most beauty influencers is undoubtedly Instagram, with its ease of use, huge user base, and engaging features allowing influencers to build their own audience. Countries like the US, UK, India, and Brazil lead the charge for the total number of influencers, but as social media usage expands to other areas of the world, this number will grow.

Instagram is also the platform with the highest engagement rate for beauty influencers, particularly when it comes to micro-influencers. Due to their niche approach and smaller but highly dedicated following, micro-influencers can leverage relationships with their followers to have high interaction rates with posts, especially compared to traditional beauty influencers, who may have more followers but often receive lower engagement.

The success of Instagram influencers has spilled over to other platforms, particularly YouTube, which is seeing an increasing number of beauty influencers and related content. However, while it may not have the highest engagement rate for beauty influencers, YouTube is still a major player in the market and should not be overlooked.

Case Study: Glossier

Glossier is a direct-to-consumer beauty brand that has successfully leveraged influencer marketing to promote its products. The brand was founded in 2014 and has become a cult favourite among millennial and Gen Z consumers.

Glossier’s influencer marketing strategy focuses on working with micro-influencers with smaller followings but can still reach a targeted audience. The brand has also cultivated a community of “Glossier Girls,” who are fans of the brand and are often featured on Glossier’s social media platforms.

One of Glossier’s most successful influencer campaigns was the launch of its

Four beauty brands that effectively used influencer marketing to build a loyal following:

US – Fenty Beauty by Rihanna

Fenty Beauty by Rihanna is a US-based beauty brand that launched in 2017. The brand’s strategy heavily relied on influencer marketing, particularly on social media platforms like Instagram and YouTube. The brand collaborated with various influencers, from micro-influencers to celebrities, to promote its products.

One of the brand’s most successful influencer campaigns was the launch of its Pro Filt’r Soft Matte Longwear Foundation. The brand partnered with influencers of various skin tones and types, ensuring the foundation was showcased to a diverse range of individuals. This helped the brand gain traction and build a loyal following, particularly among women of colour who had previously struggled to find a foundation that matched their skin tone.

UK – Charlotte Tilbury

Charlotte Tilbury is a UK-based beauty brand that launched in 2013. The brand has a strong influencer marketing strategy and has partnered with numerous beauty bloggers and influencers to promote its products. Charlotte Tilbury’s influencer campaigns have been particularly effective on Instagram, where the brand has over 3 million followers.

One of the brand’s most successful influencer campaigns was the launch of its Pillow Talk lipstick. The brand partnered with influencers such as Zoella, who posted Instagram stories and blog posts about the lipstick, generating buzz and interest around the product. The campaign was so successful that the brand expanded its Pillow Talk range to include an eyeshadow palette and blush.

India – Nykaa

Nykaa is an Indian beauty and wellness brand that launched in 2012. The brand’s strong online presence has leveraged influencer marketing to expand its reach and increase sales. Nykaa has partnered with micro-influencers and celebrities to promote its products, particularly on Instagram and YouTube.

One of Nykaa’s most successful influencer campaigns was the launch of its matte lipstick range. The brand partnered with influencers such as Masoom Minawala, who created YouTube tutorials showcasing lipsticks and how to wear them. The campaign generated over 6 million views on YouTube and helped the brand establish itself as a leader in the Indian beauty market.

China – Perfect Diary

Perfect Diary is a Chinese beauty brand that launched in 2017. The brand has rapidly gained popularity in China due to its influencer marketing strategy. Perfect Diary has partnered with numerous Chinese influencers, particularly on the social media platform Weibo, to promote its products.

One of Perfect Diary’s most successful influencer campaigns was the launch of its “Dreaming Of Sea” eyeshadow palette. The brand partnered with influencers such as Becky Li, who created makeup tutorials using the palette on Weibo. The campaign generated over 200 million views and helped the brand become a major player in the Chinese beauty market.

Diversity and Inclusion in Influencers

The landscape of beauty influencers is also becoming more diverse as many male beauty influencers are popping up on social media. Their content may range from advice on skincare, fashion tips, or personal videos featuring their daily activities and lifestyle. This new group of influencers is set to revolutionise the beauty industry further and provide greater inclusivity to an already diverse sector.

In conclusion, the impact of beauty influencers can be felt worldwide and shows no sign of slowing down anytime soon. Instagram is currently leading the pack in terms of the number of influencers and engagement rate, but with an influx of new platforms and styles of influencers emerging, there is no telling what the future of beauty influencers will bring.

No, the same beauty influencers are not always active on all social channels. For example, while they might have a thriving presence on YouTube, they might not have an active presence on Instagram or TikTok. It all depends on the influencer and what platforms they feel the most comfortable and effective on. Each influencer usually specialises in one or two platforms, often tailoring their content for that specific channel. They might focus on Instagram to showcase beauty products but specialise in Youtube for longer-form content, like tutorials. Additionally, some influencers are active on all platforms, creating different types of content on each. This approach can help build their presence across all channels, increasing success and visibility.

The impact of Beauty Influencers

Beauty buyers seek products and services that best suit their preferences, needs, and values. That’s why beauty and personal care brands are now looking to beauty and wellness influencers to engage with potential buyers and promote their products and services.

Beauty and wellness influencers are highly engaged and passionate individuals with a large audience who share honest reviews and opinions on the latest beauty trends. They often receive incentives or gifts from brands in return for their content and have the power to make or break a product launch or sale.

By engaging with beauty influencers, beauty brands can promote their products to a wider and more specific audience, gain valuable feedback from buyers, increase product visibility, and establish buyer loyalty. Through the influencer’s content, brands can promote products to customers in an interactive, entertaining, and innovative way.

To ensure maximum benefit from influencer marketing, beauty brands need to clearly define the goals of their campaign, identify the influencers that are best suited to the goals and brands, establish and implement guidelines for engagement, provide the necessary support for influencers, track engagement data, and analyze campaign results.

In addition to their campaigns, beauty brands can also maximise their strategy by utilising influencer marketing software and creator management. With this software, brands can easily discover, track and engage influencers in their network. Additionally, they can measure and monitor the success of campaigns in real-time, assess their ROI, track payment schedules, and view detailed performance metrics.

By leveraging influencer marketing in their beauty marketing strategies, large and small beauty brands can gain loyal customers, generate brand awareness and create long-term engagement and relationships.

Crafting an influencer campaign for a beauty brand requires strategy and research to create an effective campaign that produces results.

Tips to keep in mind when planning an influencer campaign.

Choose the Right Influencers.

Select influencers who align with the goals and mission of your beauty brand and have an audience that would be interested in what your beauty brand offers.

Utilise Existing Connections.

See if you already have a relationship with any influencers and use it to your advantage. Influencers that you already know can give you a better idea of what their followers like, how to approach them, and how to interact with them.

Set a Realistic Budget.

Knowing how much you can spend on your influencer campaign will help you create an achievable goal. Determine the most important part of the campaign, such as whether you want a certain number of impressions, engagement, or followers. Then adjust your budget to what makes the most sense for your goals.

Establish Metrics.

Establishing specific metrics to measure success is important to ensure you get a return on investment. Create KPIs focusing on the outcome you are trying to achieve, whether sales or awareness.

Analyze Performance.

Once your influencer campaign has concluded, it’s important to look at the results and determine what worked and what didn’t. Analyzing performance will help you adjust your future campaigns to achieve maximum success.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.