With the vast amounts of data available today, marketers need to apply human analysis to extract strategy from the data presented.
However, as pointed out by Fiona Lovatt, the Human Insights Director for Nutrition in Europe at the Coca-Cola Company, during a panel at the Market Research Society’s 2023 Insight Alchemy conference this month, the reality of a brand manager’s role is such that they often lack the capacity to act strategically.
“I think if you walked in the shoes of a brand manager, a lot of people would be shocked at how operational and short-term that role can be,” she said.
Data is an essential tool for marketers looking to make informed strategic decisions. However, with the vast amount of data available, it’s easy to get lost in the numbers and lose sight of the human aspect. Marketers get bogged down by the day-to-day, so they do not have the time to focus on long-term strategic thinking.
That’s why marketers must use human analysis and understanding when extracting insights from data for strategic decision-making. This blog post will discuss why this is important and how marketers can achieve it.
The importance of strategic thinking in a post-Covid world.
As the world begins to emerge from the chaos and uncertainty of the COVID-19 pandemic, it is important to start thinking strategically about how to move forward. Now more than ever, strategic thinking is critical to achieving long-term success.
For one, strategic thinking allows businesses to identify, prioritise and capitalise on new opportunities. A sound strategy allows business leaders to identify where and how to invest resources best to meet long-term goals. As businesses return to pre-pandemic productivity levels, it’s important to remain strategic and capitalise on potential opportunities.
Strategic thinking can also help businesses mitigate risks. A strategic approach helps leaders better anticipate and plan for possible disruptions and formulate plans to address any unexpected challenges that may arise quickly. Strategic planning can also help companies avoid pitfalls or setbacks caused by misdirected resources or efforts.
Most importantly, strategic thinking enables organisations to adapt to an ever-evolving landscape. With the impacts of the pandemic, many businesses are facing a whole new set of challenges and opportunities. With the help of strategic thinking, business leaders can stay agile and proactively develop new strategies to help their companies stay competitive in this rapidly changing environment.
The post-pandemic world is dynamic and unpredictable. While technology provides abundant data, it must be used to create the insights needed for strategic decision-making and long-term planning. By embracing strategic thinking, business leaders can help ensure their organisation is equipped with the necessary tools to remain competitive and succeed in this new environment.
Philips —the health technology brand, is making a conscious effort to help its marketers become more strategic by ensuring they have time to think about long-term strategy. As head of marketing insights and analytics for personal health, Fenny Léautier puts it, “the human behind it.”
Léautier wants his team members to spend time speaking to the consumer directly and not just focus on internal matters.
The importance of the human element in insights.
As digital marketers, the ability to interpret and analyse data to help guide our marketing strategies is essential. But in this digital age, there’s no shortage of data. So how can we use this data effectively?
The key lies in applying human analysis. Data itself is just a set of facts. We must rely on human intelligence and instinct to make sense of these facts and draw meaningful insights from them. In this post, we’ll discuss the need to combine human analysis with data to develop more effective strategies.
We all know the importance of data. We use it to make decisions, track trends, and create powerful campaigns. However, simply collecting data is not enough to achieve successful outcomes.
Rather than looking at data as numbers or figures, it is important to interpret the data to understand the context of the information fully. Analysing data alone cannot provide a complete picture of what’s happening. The information must be combined with a more holistic approach incorporating subjective factors, such as customers’ feelings and perceptions and economic and cultural conditions.
Once we’ve assessed the data in the context of its wider environment, we can use the insights gained to form the foundation for an effective strategy.
To truly harness the potential of data, marketers need to create a dialogue between human intelligence and analysis and machine analysis. For example, it’s easy to use algorithms to spot trends and opportunities, but marketers must apply their own judgment to determine whether the opportunities should be pursued.
At the same time, human analysis of data must be supported by predictive analytics, AI, and other machine-driven approaches. By combining these elements, marketers can build on their human insights to make more informed decisions.
While data can provide valuable insights, it’s important to remember that data only tells part of the story. Human analysis and understanding can fill in the gaps and provide context to the data. For example, data might show a particular marketing campaign’s high conversion rate, but it doesn’t explain why. Using human analysis and understanding, marketers can identify the factors contributing to the campaign’s success and replicate them in future campaigns.
Additionally, data can be misleading if it’s not analysed correctly. It’s easy to make assumptions based on data without considering the human element. Human analysis and understanding can help marketers to avoid these pitfalls and make more informed decisions.
Steps to ensure marketers are using human understanding when extracting insights from data for strategic decision-making:
How to Achieve Human Analysis and Understanding
Put Yourself in Your Customers’ Shoes
Putting yourself in your customers’ shoes is essential to achieve human analysis and understanding. Understanding their needs, desires, and pain points can help you to make more informed decisions. Use data to identify trends and patterns in customer behaviour, but don’t forget to consider the reasons behind those behaviours.
Use Qualitative Data
Quantitative data, such as website analytics and sales figures, is valuable but doesn’t tell the whole story. Qualitative data, such as customer feedback and surveys, can provide insights into customers’ emotions, attitudes, and preferences. Use this data to better understand your customers and how they interact with your brand.
Collaborate with Other Departments
Marketing doesn’t operate in a vacuum, and it’s important to collaborate with other departments, such as sales and customer service, to gain a broader perspective. These departments can provide valuable insights into customers’ experiences and pain points that may not be evident from data alone.
Take a Holistic Approach
To achieve human analysis and understanding, it’s important to take a holistic approach to data analysis. Don’t rely solely on data to make decisions. When analysing data, consider the human element, such as emotions, cultural context, and social factors.
Use Data to Inform Decisions, Not Dictate Them
It is important to remember that data should inform decisions, not dictate them. Use data to identify trends and patterns, but don’t forget to consider the human element. Ultimately, marketing decisions should be based on data analysis and human understanding.
Data has become a valuable asset for marketers in today’s digital age. With the vast amount of data available, marketers can use it to make informed strategic decisions that can significantly impact their business’s success.
How marketers can harness data for strategic decision-making.
Define your marketing goals.
Before you start gathering data, you need to define your marketing goals. Your goals will determine what kind of data you need and how you will use it. For example, if your goal is to increase website traffic, you must track metrics such as page views, unique visitors, and bounce rate. To increase sales, you need to track metrics such as conversion rate, average order value, and customer lifetime value.
Identify the right data sources.
Once you have defined your marketing goals, you must identify the right data sources. Various data sources are available, such as customer, social media, website analytics, and market research data. Choose the data sources that align with your marketing goals and provide relevant insights.
Collect and analyse data.
After identifying the data sources, you need to collect and analyse the data. There are various tools and software available that can help you collect and analyse data. Google Analytics is a popular tool for website analytics, while social media platforms have their own tools. Use these tools to gather data and extract insights to help you make informed decisions.
Use data to make informed decisions.
Once you have gathered and analysed the data, it’s time to use it to make informed decisions. Use the insights to optimise your marketing campaigns, personalise your messaging, and target the right audience. For example, if your data shows that your website has a high bounce rate, you can use it to improve your website’s user experience and reduce the bounce rate.
Monitor and adjust
Data is not static, and it’s essential to monitor and adjust your marketing strategies based on new insights. Use A/B testing to test different marketing strategies and track their performance. Monitor your data regularly to identify new trends and make adjustments accordingly.
Additional steps customer-centric marketers take when using customer data for long-term decision-making.
Define your target market. Start by clearly understanding who the intended customers are and what their needs are.
Analyse customer data. Look at existing data on customer interactions and behaviour to inform strategic decisions.
Connect with customers to gather their opinions. Use feedback and survey data to uncover customer motivations, perceptions, and behaviours.
Engage with competitors and benchmark performance. Study competitor data to understand market trends and uncover opportunities.
Utilise predictive analytics to determine the probability of customer behaviours. Use advanced statistical techniques to inform decision-making.
Use customer insights to develop customer personas. Break down data into customer segments and create stories about who your customers are and what drives their decisions.
Identify customer segments for marketing activities. Utilise data insights to inform your customer segmentation strategy.
Look for feedback in qualitative research. Combine both qualitative and quantitative research to assess the success of customer campaigns.
Apply analytical techniques to assess customer experience. Collect customer feedback and apply techniques like focus groups and survey design to gain deeper insight into the customer experience.
Constantly monitor customer behaviour. Follow customer behaviour trends closely and continually update analytics to identify new opportunities.
Best practices for using data to make strategic decisions
When using data to make strategic decisions, it is important to adhere to best practices.
Ensure you are working with high-quality data.
First and foremost, the data must be accurate and up-to-date. Poor data can lead to wrong or incomplete decisions, so ensure you source the data from reputable sources. Additionally, take steps to ensure the data you are using is up-to-date and valid.
Utilise different types of data when making decisions.
Not all data is equal in terms of reliability and accuracy, so consider multiple sources, such as surveys, financial reports, market research, customer feedback, etc.
Consider how you can make impactful, data-driven decisions.
Analysing the data should give you insights that you can use to inform strategy. Leverage the data to come up with creative solutions, as well as make evidence-based recommendations.
By adhering to these best practices for using data to make strategic decisions, you can ensure that your decisions are based on accurate and reliable data and are ultimately successful.
Combining human analysis with data is the key to driving successful marketing strategies. Data provides the structure, while the human factor brings an understanding of the real-world implications. With a balance of the two, marketers can generate strategies to achieve the best campaign outcomes.
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With the proliferation of smartphones and tablets, it’s no surprise that more and more people are completing surveys on their mobile devices. But what does this mean for marketers, product managers, and market researchers?
In this article, we’ll explore how mobile devices have changed the survey landscape and why it’s crucial to design mobile-friendly surveys. We’ll dive into the various question types, discuss their effectiveness on mobile devices, and provide best practices for designing surveys that work well on screens of all sizes.
But first, let’s take a step back and consider how mobile devices have changed our interaction with technology. These devices have revolutionised how we communicate, consume content, and engage with brands in just a few short years. People spend more time on their phones than ever before, and this trend will continue.
As marketers and researchers, we must keep up with these changes and adapt our strategies accordingly. By understanding the impact of mobile devices on survey responses, we can design surveys that are more engaging, more effective, and ultimately more valuable for our businesses. So let’s dive in and explore the exciting world of mobile surveys!
The Mobile Survey Landscape
The mobile survey landscape is constantly evolving, and staying up-to-date with the latest trends and statistics is essential. According to Statista, in 2023, the current number of smartphone users in the world today is 6.92 billion, meaning 86.29% of the world’s population owns a smartphone. This means that a large percentage of survey respondents are completing surveys on their mobile devices.
While mobile surveys offer many benefits, such as increased convenience and accessibility, they also present some unique challenges. One of the biggest challenges is the limited screen size of mobile devices. It’s crucial to design surveys that are optimised for smaller screens, with clear and concise questions and answer options.
In a survey by Google, 94% of respondents reported using their smartphones to take surveys.
Another challenge is user attention span. Mobile users often multitask and are easily distracted, so surveys must be engaging and easy to complete. If a survey takes too long or requires too much effort, respondents will likely abandon it before completing it.
Despite these challenges, mobile surveys can be highly effective when designed correctly. In fact, a study found that mobile surveys have a completion rate that is 10% higher than desktop surveys. Additionally, mobile surveys tend to have higher response rates and lower costs, making them an attractive option for brands.
Understanding Question Types
Understanding the different types of survey questions is crucial to designing effective mobile surveys. Let’s closely examine some of the most common question types and how they work on mobile devices.
Open-ended questions allow respondents to provide their own answers and can be useful for collecting qualitative data. However, they can be more challenging to answer on a mobile device, as they often require more typing and can be harder to read on a smaller screen. In contrast, closed-ended questions provide a set of predefined answer options, such as yes or no, and are often easier to answer on a mobile device.
Multiple-choice questions are a popular closed-ended question type, where respondents are given a set of answer options to choose from. These can be effective on mobile devices if the options are clear and easy to read. However, if the options are too lengthy or complex, they may be difficult to read on a small screen.
Rating scales are another common question type, where respondents are asked to rate their level of agreement or satisfaction on a scale of 1 to 5 or 1 to 10. Rating scales can be effective on mobile devices if they are designed to fit the smaller screen size, and the rating options are clearly labelled and easy to select.
Research by Quirk’s Media found that surveys optimised for mobile devices are completed 30-40% faster than those optimised for desktops.
It’s worth noting that some question types, such as matrix questions or grid questions, can be challenging to answer on a mobile device. These types of questions require respondents to evaluate multiple items, which can be difficult to do on a smaller screen.
Best Practices for Mobile-Friendly Surveys
Designing surveys that are mobile-friendly is crucial to maximising completion rates and gathering accurate data. Here are some best practices for designing mobile-friendly surveys:
Keep it concise: Mobile users have limited attention spans, so it’s essential to keep survey questions and answer options short and to the point. Avoid using long or complicated sentences, and consider breaking up longer questions into smaller, more manageable chunks.
Use clear formatting: Use a clear and easy-to-read font, with a font size of at least 14 points, to ensure the text is readable on smaller screens. Use plenty of white space between questions and answer options to help respondents navigate the survey more easily.
Optimise for different devices: Make sure your survey is optimised for different screen sizes and device types. Test your survey on different devices to ensure it looks and functions correctly on each one.
Keep answer options consistent: Make sure that answer options are consistent throughout the survey. This will make it easier for respondents to understand the question and select the appropriate answer.
Provide clear instructions: Provide clear and concise instructions at the beginning of the survey to help respondents understand how to complete the survey. Include instructions on navigating the survey and how long it is expected to take.
Use skip logic: Skip logic allows respondents to skip questions that are not relevant to them, which can help to reduce survey fatigue and improve completion rates. However, ensure that skip logic is used sparingly, as it can add complexity to the survey.
Test and iterate: Testing and iterating are essential parts of survey design. Test your survey on a small sample of respondents before launching it to a larger audience, and use their feedback to make improvements.
Key Takeaways
Mobile devices have revolutionised how people interact with technology, including completing surveys. To maximise response rates and gather accurate data, it’s essential to design mobile-friendly surveys.
This means selecting the right question types and optimising surveys for different screen sizes and devices.
Key takeaways from this blog post include:
Mobile devices are an important platform for survey completion and should be taken into consideration when designing surveys.
Closed-ended questions, such as multiple-choice questions and rating scales, tend to work better on mobile devices than open-ended questions.
Mobile surveys should be concise, well-formatted, and optimised for different devices.
Best practices for mobile surveys include keeping answer options consistent, providing clear instructions, and testing and iterating.
Brands and researchers can create engaging, effective surveys that provide valuable insights into consumer behaviour and preferences by using a mobile-first approach and following these best practices.
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Are you tired of investing time, money, and resources to develop products that don’t resonate with your target audience? Have you ever launched a product that received little to no interest from the market? If so, you’re not alone.
Launching a successful product in today’s highly competitive market can be daunting. However, concept testing can help you validate your product ideas, refine your concepts, and increase the likelihood of success.
Concept testing evaluates customer responses to a product idea before launching it in the market. It involves gathering feedback from potential customers to understand their preferences, pain points, and expectations. By conducting concept testing at different stages of product development, you can identify potential issues and improve your product before it’s too late.
In this article, we will explore the importance of concept testing in product development and provide an overview of the different stages involved in the process. From idea generation to launch testing, we will discuss how concept testing can help you maximise your product’s potential and increase your chances of success in the market.
What is concept testing?
Concept testing, also known as idea testing, is a crucial step in the product development process. It involves testing a product idea with potential customers to gauge their level of interest and gather feedback to refine and improve the idea.
Concept testing aims to validate a product idea before investing significant resources in developing it. It allows product teams to gather valuable insights from potential customers and make data-driven decisions based on their feedback. This helps to reduce the risk of failure and increases the chances of launching a successful product.
Concept testing can be conducted using various methods, including surveys, focus groups, and interviews. It typically involves presenting potential customers with a description, sketch, or prototype of the product and gathering their feedback on various aspects, such as its features, pricing, and overall appeal.
Concept testing is an integral part of the product development process as it can help companies avoid costly mistakes, such as launching products with no market demand. By gathering feedback early on in the product development process, companies can make informed decisions about whether to proceed with the product idea or make modifications to improve its chances of success.
Stage 1: Idea Generation
Ah, the brainstorming stage – the time to let your imagination run wild with new product ideas! But wait, before you start investing time and resources into developing a product, have you considered the importance of concept testing in the idea generation phase?
Concept testing is critical in the idea generation stage, as it helps to validate and refine your product ideas. Imagine spending months developing a product only to discover that it’s not something your target audience wants or needs. That’s where concept testing comes in – it helps you to validate your ideas before you invest significant resources into developing them.
Let’s say you have an idea for a new fitness tracker that tracks your daily water intake. You might think this is a great idea, but will your target audience feel the same? Through concept testing, you can present your idea to potential customers and gather their feedback on your product’s features, pricing, and overall appeal. If your target audience doesn’t see the value in tracking their water intake, you can refine your idea to include more appealing features.
In addition to validating your ideas, concept testing in the idea generation phase can also help you to generate new ideas. Presenting your product idea to potential customers may generate feedback that inspires new features or functionalities you have yet to consider.
Stage 2: Concept Development
Welcome to stage two – concept development! This is where you take your product ideas and start developing them into a tangible concept. But how do you know which concept is the most promising one? You guessed it – concept testing!
Concept testing in the concept development stage can help you to evaluate different concepts and identify the most promising ones. Let’s say you have developed three concepts for your fitness tracker – one that tracks water intake, one that tracks sleep patterns, and one that tracks heart rate. Through concept testing, you can present these concepts to potential customers and gather feedback on their level of interest in each one. Based on their feedback, you can identify which concept most appeals to your target audience.
Not only can concept testing help you to identify the most promising concept, but it can also help you to refine the concept further. Through feedback from potential customers, you may discover areas that need improvement or additional features that would make the product even more appealing.
Stage 3: Prototype Testing
Now that you have a promising product concept, it’s time to develop and test a prototype with your target audience. This is where concept testing can help to refine your prototype and identify areas for improvement.
Let’s say you have developed a prototype of your fitness tracker that tracks water intake. You present it to potential customers, and while they are interested in the idea, they express concerns about the size and comfort of the tracker. Through concept testing, you can gather this feedback and refine your prototype to address these concerns. You could make the tracker smaller or adjust the design to make it more comfortable to wear.
In addition to refining your prototype, concept testing can help you identify areas for improvement. For example, if potential customers express confusion about how to use certain features, you may need to adjust the user interface to make it more intuitive.
Concept testing in the prototype testing stage can be conducted in various ways, such as usability testing or field testing. These methods allow you to gather feedback on the functionality and user experience of the prototype.
By refining your prototype based on feedback from concept testing, you can increase the chances of launching a successful product that meets the needs and desires of your target audience. So, don’t underestimate the power of concept testing in the prototype testing stage – it can make all the difference between a mediocre product and a successful one.
Stage 4: Launch Testing
Now let’s look at launch testing! This is where you test the market readiness of your product and identify potential issues before launch.
Concept testing in the launch testing stage can help you gather feedback on your product’s final version before launch. This feedback can help you to identify potential issues, such as pricing concerns or a lack of interest in certain features.
For example, if you have developed a new smartphone app, you can present it to potential customers and gather feedback on its functionality, design, and pricing. Based on this feedback, you can make necessary adjustments before launching the app to the market.
By gathering feedback from potential customers in the launch testing stage, you can also gain insights into the competition and the overall market demand for your product. This can help you to make informed decisions about pricing, marketing, and distribution strategies.
Concept testing in the launch testing stage can be conducted in various ways, such as beta testing or product demos. These methods allow you to gather feedback on the final version of your product and make necessary adjustments before launching.
Methodologies for concept testing
Now that we’ve explored the different stages of concept testing and their importance in product development, let’s dive deeper into the various methodologies that can be used for concept testing.
There are several different methods for conducting concept testing, each with advantages and disadvantages. The most commonly used methods include surveys, focus groups, and usability testing.
Surveys are a great way to gather feedback from a large number of potential customers. They can be conducted online or in person and are typically used to collect quantitative data on different aspects of a product concept, such as the level of interest in certain features or pricing.
On the other hand, focus groups are more qualitative and involve gathering a small group of potential customers to discuss and provide feedback on a product concept. They are often used to gain more in-depth insights into the thoughts and feelings of potential customers, as well as to gather ideas for new product features or functionalities.
Usability testing is another method that can be used to gather feedback on a product concept. It involves observing potential customers as they use a prototype of the product and gathering feedback on the usability and functionality of the product.
In addition to these methods, there are other types of concept testing, such as A/B and field testing. A/B testing involves presenting two different versions of a product concept to potential customers and gathering feedback on which one is more appealing. Field testing involves testing a product concept in a real-world setting, such as in a store or online marketplace.
Best Practices
Now that we’ve explored the different methodologies for concept testing let’s explore some best practices for conducting effective concept testing. These best practices help ensure that you gather the most valuable feedback and make informed decisions about your product development.
Firstly, defining clear research objectives before conducting concept testing is important. This will help you focus on the most important aspects of the product concept and gather relevant feedback for your goals. Clear research objectives also help ensure you don’t waste time or resources on gathering irrelevant feedback.
Secondly, recruiting the right participants for your concept testing is essential. This means targeting individuals representing your target audience and likely to use or purchase your product. It’s also important to ensure the participants are engaged and invested in the concept testing process. You can achieve this by providing incentives or rewards for their participation.
Another best practice is to use the correct methodology for your product concept and research objectives. This means choosing a method best suited for gathering feedback on the specific aspects of your product concept that you want to test.
For example, if you want to gather quantitative data on pricing, a survey would be more appropriate than a focus group.
Finally, analyzing the data effectively is crucial to make informed decisions about your product development. This means looking for trends and patterns in the feedback and using this information to refine and improve your product concept. It’s also important to prioritise the feedback based on its relevance and impact on the product’s success.
Limitations of concept testing
While concept testing is a valuable tool for product development, knowing its limitations is essential.
For example, concept testing can only provide feedback on the specific product concept being presented to potential customers. It may not capture all possible issues or challenges that arise once the product is launched in the market.
Additionally, concept testing can be influenced by factors such as how the concept is presented, and the language used, or the participants’ demographic.
Another limitation of concept testing is that it may not capture a product’s emotional or experiential aspects. For example, a potential customer may express interest in a product concept, but they may have a negative emotional response once they use the product.
By acknowledging the limitations of concept testing, product development teams can use it as a tool in combination with other methods, such as user testing and market research, to gain a more comprehensive understanding of their product’s potential success in the market.
Case Studies in Concept Testing
Now let’s look at some real-life case studies of successful concept testing in product development.
One example comes from the UK-based cosmetics company Lush. In 2018, Lush developed a new product concept for a solid shower gel. Before launching the product, Lush conducted concept testing by sending samples to customers and gathering feedback through surveys. The feedback was overwhelmingly positive, with customers expressing interest in the new product and suggesting additional scents for the line. Lush used this feedback to refine the product and launch it successfully in the market.
Another example comes from the US-based fast-food chain Taco Bell. In 2017, Taco Bell conducted concept testing for a new menu item called the Naked Chicken Chalupa. The company used focus groups and taste tests to gather feedback on the product concept and made adjustments based on the feedback. The Naked Chicken Chalupa was a huge success when launched, selling over 25 million units in its first year.
Finally, an example from Asia comes from the Chinese tech company Xiaomi. Xiaomi developed a new product concept for a foldable phone, but before launching the product, the company conducted concept testing by sending out a prototype to potential customers for feedback. The feedback was mixed, with customers expressing concerns about the phone’s durability. Xiaomi used this feedback to make necessary adjustments and launch a successful foldable phone.
Key Takeaways
In conclusion, concept testing is a crucial step in the product development process. It allows brands to gather feedback from potential customers, refine their product concepts, and increase their chances of success in the market.
Brands can conduct effective concept testing and make informed decisions about their product development by following best practices such as defining clear research objectives, recruiting the right participants, and analyzing data effectively.
Here are some key takeaways to keep in mind:
Concept testing can be conducted at different stages of product development, including idea generation, concept development, prototype testing, and launch testing.
Different methodologies can be used for concept testing, including surveys, focus groups, and usability testing.
Effective concept testing requires careful planning, execution, and analysis of data.
Concept testing has limitations, and it should be combined with other methods to gain a more comprehensive understanding of a product’s potential success in the market.
Overall, concept testing is a valuable tool for product development that can help companies to create products that truly resonate with their target audience. By implementing the best practices and key takeaways discussed in this article, you can increase your chances of success and launch a product that will delight your customers.
If you want to conduct concept testing for your next product development project, consider using a market research agency like Kadence International. We have extensive experience conducting effective concept testing and can help you gather valuable feedback from potential customers. To get started, simply submit your research brief.
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Have you ever found yourself hesitating before making a purchase? You may have been unsure about the quality of the product or whether you could afford it. Or maybe you were simply feeling uncertain about the future and didn’t want to commit to something that might not be a wise investment.
Whatever the reason, you’re not alone. Uncertainty is a common experience for many consumers and can significantly impact buying decisions. It’s important to understand uncertainty’s role in consumer behavior and how we can respond to it to better meet our customers’ needs.
In this article, we’ll explore the fascinating world of consumer psychology during times of uncertainty. We’ll delve into the effects of uncertainty, how consumers respond to it, and what marketers can do to adjust their strategies accordingly.
We’ll also discuss market research’s crucial role in understanding and responding to uncertainty and provide some practical tips for conducting research during uncertain times.
So buckle up and get ready for a deep dive into the unpredictable waters of consumer purchasing behavior!
The Concept of Uncertainty
Let’s break down the different types of uncertainty.
Economic uncertainty is perhaps the most well-known and pervasive form of uncertainty. It can arise from various factors, such as recessions, inflation, or changes in government policies. When consumers are uncertain about their financial futures, they may be more cautious about spending money and prioritize essentials over luxury items.
Social uncertainty, on the other hand, can arise from changes in social norms or cultural values. For example, the #MeToo movement sparked a reckoning in many industries as consumers became more aware of issues related to sexual harassment and assault. This led to increased uncertainty about what behavior is considered acceptable in the workplace and beyond, which may have affected consumer preferences and buying decisions.
Personal uncertainty can stem from various sources, such as health concerns, relationship issues, or significant life transitions. When consumers are experiencing personal uncertainty, they may be more likely to prioritize products or services that offer a sense of stability or comfort, such as self-care products or experiences that provide a sense of escapism.
The Effects of Uncertainty
For one thing, uncertainty tends to make consumers more cautious about spending money. Consumers may be more likely to save their money for a rainy day when the future feels unpredictable rather than splurge on non-essential items. This can be especially true during times of economic uncertainty, such as recessions or market crashes, when consumers may be worried about losing their jobs or experiencing a decline in their financial well-being.
Uncertainty can also lead consumers to seek out products or services that offer a sense of stability or security. For example, during social or political uncertainty, consumers may be more likely to support brands or businesses that align with their values or offer a sense of community or belonging. Similarly, during times of personal uncertainty, consumers may be drawn to products or services that provide a sense of comfort or escape, such as luxury goods or experiences.
The effects of uncertainty on consumer behavior can be complex and multifaceted. Still, uncertainty can significantly impact consumers’ willingness to take risks and make purchases. It’s essential for brands to be aware of these effects and to adapt their strategies accordingly. By understanding how uncertainty affects consumer behavior, we can better tailor our messaging, products, and services to meet the needs of our customers, even in the most uncertain of times.
Consumer Response to Uncertainty
Consumers may respond in various ways when faced with uncertainty, depending on their personal circumstances and individual preferences. However, some common patterns tend to emerge when consumers feel uncertain about the future.
One of the most notable responses to uncertainty is a tendency to seek more information before purchasing. When consumers feel uncertain about the quality, safety, or value of a product, they may be more likely to do their research and read reviews before making a decision. This can be especially true during times of uncertainty, when consumers may be more risk-averse and less willing to take chances on products they need to learn more about.
Another common response to uncertainty is a preference for familiar brands or products. Consumers may be more likely to stick with brands or products they know and trust when the future feels unpredictable rather than experimenting with new or unfamiliar options. This can be especially true during times of economic uncertainty, when consumers may be looking for ways to save money and reduce risk.
Additionally, during times of uncertainty, consumers may be more likely to prioritize practical needs over aesthetic or luxury desires. For example, during a recession, consumers may be more likely to purchase essential items like food and clothing rather than splurge on expensive vacations or high-end fashion items.
Implications for Marketers
As we’ve seen, uncertainty can significantly impact consumer behavior, affecting everything from purchasing decisions to brand loyalty. For marketers, it’s important to be aware of how uncertainty affects their target audience and to adapt their strategies accordingly.
One key implication for marketers is the need to reassure consumers during times of uncertainty. This can involve emphasizing the quality, safety, and reliability of products and services and addressing any concerns or questions consumers may have. By providing clear and transparent messaging, marketers can help build trust and loyalty among consumers, even during times of unpredictability.
Another critical consideration for marketers is pricing strategy. During times of uncertainty, consumers may be more price-sensitive and risk-averse, making it challenging to attract and retain customers. To address this, marketers may need to adjust their pricing strategies to reflect changing consumer behavior, such as offering discounts or promotions to incentivize purchases.
Additionally, marketers must be more flexible and adaptable in their approach, as consumer behavior can shift quickly in response to changing circumstances. This may involve experimenting with new marketing channels or tactics or being open to adjusting messaging or product offerings as needed.
Lessons from Past Uncertain Times
The 2008 Financial Crisis
During the financial crisis of 2008, many consumers became more cautious about spending money, particularly on luxury goods and services. As a result, brands that relied heavily on discretionary spending, such as high-end fashion labels and luxury hotels, saw a significant decline in sales. At the same time, consumers became more interested in value-driven products and services, such as budget airlines and discount retailers.
Many luxury fashion brands responded by offering affordable options like diffusion lines and collaborations with fast fashion retailers. For example, designer Versace partnered with H&M, a popular fast fashion brand, to reach a wider audience and appeal to price-sensitive consumers. Similarly, many luxury hotels responded by offering promotions and deals to attract customers looking to save money.
The COVID-19 Pandemic
The COVID-19 pandemic has significantly impacted consumer behavior, as many people have experienced economic, social, and personal uncertainty. During the pandemic, consumers have been more cautious about in-person shopping and have increasingly turned to online retailers for their purchases. Additionally, consumers have become more interested in health and wellness products, home improvement, and DIY products as they spend more time at home.
For example, beauty brand Sephora launched a virtual makeup try-on tool, allowing customers to test out products from the comfort of their own homes. Additionally, many brands pivoted their messaging to emphasize safety and hygiene, such as restaurant chains highlighting their contactless delivery options or airlines emphasizing their cleaning procedures.
The #MeToo Movement
The #MeToo movement has profoundly impacted consumer behavior, particularly in the fashion industry. Brands perceived as promoting unrealistic beauty standards or perpetuating gender stereotypes saw a decline in sales, while brands that embraced inclusivity and diversity saw increased demand.
For example, lingerie brand Aerie launched a campaign featuring unretouched photos of models with a range of body types to promote body positivity and self-confidence.
The Role of Market Research
Market research is a crucial tool for understanding consumer behavior, particularly during times of uncertainty. By gathering data and insights on how consumers respond to changing circumstances, market researchers can help marketers develop effective strategies that meet the needs of their target audience.
One of the main benefits of market research during times of uncertainty is the ability to identify changing consumer needs and concerns. For example, during the COVID-19 pandemic, market research has helped brands understand how consumers adjust to working from home, their concerns about public health and safety, and what products and services they are most interested in. By gathering this data, marketers can develop messaging and products that resonate with consumers’ changing needs and priorities.
Another role of market research during times of uncertainty is to identify changes in consumer behavior. Brands that use market research can identify trends and patterns that may indicate more significant shifts in consumer behavior by analyzing purchasing patterns, brand loyalty, and other key metrics. This can help marketers anticipate changes in the marketplace and adjust their strategies accordingly.
Finally, market research can help marketers develop messaging and branding that resonates with consumers’ emotions and values. During times of uncertainty, consumers may be more sensitive to trust, safety, and social responsibility issues. Market research can help identify the most effective ways to communicate these values to consumers.
Overall, market research is a crucial tool for navigating the complex and unpredictable world of consumer behavior during times of uncertainty. By gathering data and insights on consumer needs, behavior, and values, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.
Key Takeaways
Uncertainty is a fact of life that can significantly impact consumer behavior. From economic downturns to social movements to global pandemics, uncertainty can make consumers more cautious, risk-averse, and focused on practical needs. However, by understanding how uncertainty affects consumer behavior, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.
Key takeaways include the importance of reassurance, adaptability, and flexibility in uncertain times. Marketers must be attuned to their target audience’s changing needs and concerns and be willing to adjust their strategies accordingly. Additionally, market research is crucial for understanding how consumers respond to uncertainty and can provide valuable insights into changing behavior and priorities.
Moving forward, brands should prioritize building trust and loyalty among their target audience, emphasizing practical needs and value-driven products and services, and remaining flexible and adaptable in the face of changing circumstances. By doing so, marketers can weather even the most uncertain times and emerge stronger and more resilient.
So, let’s approach uncertainty with optimism and confidence. By embracing change, staying attuned to consumer needs, and remaining flexible and adaptable, we can build a more resilient and successful future for ourselves and our brands.
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Did you know that, on average, shoppers spend just two seconds deciding whether to pick up a product or not? In that short amount of time, packaging has to grab their attention, communicate key information, and entice them to purchase. As a marketer, understanding the psychology behind the packaging is essential for capturing those fleeting moments and making the most of your opportunity on the shelf. In this blog, we’ll explore the fascinating research into shopping behaviour and eye-tracking studies and show you how to design packaging that influences consumers’ decisions. So, if you want to know the secrets to gain consumers’ attention from a shelf, keep reading!
The Science of Shopping Behavior
To create effective packaging, it’s essential to understand how shoppers behave in a store. Numerous studies into shopping behaviour offer key insights into how to design packaging that resonates with your target audience.
One important insight is that shoppers tend to make decisions based on emotion rather than logic. Packaging that conveys a sense of excitement, pleasure, or indulgence is more likely to attract their attention than packaging that simply lists the product’s features.
Another crucial insight is that shoppers look at a product’s upper left corner first. This area should contain the most vital information, such as the product’s name or a key benefit.
It is important to note that this insight is based on eye-tracking studies conducted primarily in Western societies, such as the United States and Europe. Shoppers in other countries may have different eye-tracking patterns or prioritise different areas of a product’s packaging.
Finally, shoppers prefer products that are easy to understand and use. Clear and concise communication on packaging regarding the product and its usage will help the product stand out on the shelf.
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The Power of Eye-Tracking Studies
While studies into shopping behaviour can provide valuable insights, they can also be limited by the self-reported nature of the data. Researchers have turned to eye-tracking studies to get a more accurate picture of how shoppers behave in-store.
Eye-tracking technology allows researchers to see where shoppers are looking and for how long. This provides a more objective way of measuring shopper behaviour and can reveal insights that might not be captured through self-reported data.
One key finding from eye-tracking studies is that shoppers focus on the front of the package first, then move on to the sides and back. That means that the front of your package needs to be eye-catching and convey essential information clearly and concisely.
Another important insight from eye-tracking studies is that shoppers tend to look at products at eye level more than those that are higher or lower. If your product is on a lower or higher shelf, you may need to use packaging design elements that stand out even more to attract attention.
Eye-tracking studies can also reveal how shoppers scan a package for information. For example, they tend to look at the product name, the image or graphic, and then any claims or benefits listed on the front of the package.
By using the insights from eye-tracking studies, you can design packaging that is even more effective at attracting attention and communicating key information to your target audience.
Designing Packaging to Stand Out
Now that we better understand how shoppers behave in-store and the insights gained from eye-tracking studies, let’s explore some specific design elements that can help your packaging stand out on the shelf.
Colour
Colour is one of the most powerful design elements for attracting attention. Using bold and bright colours can help your product stand out. Consider using colours not commonly seen in your product category to make your product even more distinctive.
However, colour can be perceived differently in different countries, and marketers need to be aware of these differences when designing packaging for a global audience. For example, in Western cultures, black is often associated with luxury and sophistication, while in some Eastern cultures, it is associated with mourning and sadness. Similarly, the colour red is often associated with love and passion in Western cultures, while in some Asian cultures, it is associated with luck and prosperity.
It’s also important to consider the context in which the product will be sold, as colours can have different meanings in different contexts. For example, green may be associated with nature and health in some contexts, but it may relate to money and finance in others. By carefully considering the cultural and contextual implications of colour, marketers can create packaging that effectively communicates the product’s value and resonates with the target audience.
Typography
Typography refers to the style, size, and arrangement of text on your packaging. Using clear and easy-to-read fonts can help shoppers quickly understand what your product is and what it offers. It is also important to note there can be differences in buyer behaviour and preferences regarding typography in different cultures.
For example, in many Asian cultures, calligraphy and other forms of intricate handwriting are highly valued, and this may influence the types of typography that are preferred by consumers. Similarly, different scripts and writing systems may have different connotations and associations in different cultures, impacting buyer behaviour.
It’s worth noting that typography can also significantly impact accessibility and readability for people with visual impairments or other disabilities. Designing clear and easy-to-read typography can help ensure your product is accessible to the broadest possible audience, regardless of cultural or linguistic background.
Imagery
Compelling imagery can help your product stand out and connect with shoppers emotionally. Consider using high-quality photos or illustrations that convey the benefit or feeling your product provides.
Packaging Shape
The shape of your packaging can also help it stand out on the shelf. Consider using unique shapes or structures different from the typical packaging in your product category.
Branding
Finally, branding can also play a crucial role in attracting attention and building loyalty. Ensure your packaging design is consistent with your brand identity and conveys your brand values.
Real-World Examples of Successful Packaging Design
One of the best ways to learn about effective packaging design is to look at real-world examples. Here are a few successful packaging designs that have used the principles we’ve discussed:
Burt’s Bees: Burt’s Bees packaging stands out on the shelf with its natural, earthy colours and simple, elegant typography. Using natural images and illustrations of bees and flowers helps to communicate the brand’s commitment to using natural ingredients.
Oatly: Oatly’s packaging for their dairy-free milk products stands out on the shelf with its bold use of typography and graphics. The packaging features a simple black and white design with clever and irreverent messaging, such as “It’s like milk, but made for humans.”
Chobani: Chobani’s yoghurt packaging features a distinctive, curved shape that differentiates it from other yoghurt brands. The packaging also features bold, colourful graphics and typography that help it stand out on the shelf.
Method: Method’s cleaning product packaging features bright, cheerful colours and playful illustrations that help it stand out from the typically bland and boring cleaning products. The packaging also features witty product names that add to the brand’s playful personality.
Nivea: Nivea’s skincare packaging features a simple, classic design that has become synonymous with the brand. The packaging features a clean, white background with the brand’s iconic blue logo, which helps it stand out on the shelf and communicate its commitment to quality skincare products.
A Case Study on Packaging that Missed its Mark
While the above are great examples of packaging that resonate well with buyers, marketers can also learn from many packaging failures.
Case Study: Bic For Her
In 2012, Bic introduced a line of pens called “Bic For Her,” marketed as pens designed specifically for women. The pens featured pastel colours and a thinner barrel size and were priced higher than regular pens. The packaging also included a tagline “Designed to fit comfortably in a woman’s hand.”
The product was met with widespread criticism and mockery on social media, with many people questioning why women would need pens explicitly designed for them. Some critics also pointed out that the pens were more expensive than regular pens, despite offering no significant additional features or benefits.
There are several steps that Bic could have taken to avoid the Bic For Her disaster. Here are a few possible strategies:
Conduct Research: Before launching a new product, it’s essential to conduct thorough market research to understand the needs and preferences of your target audience. In the case of Bic For Her, Bic could have conducted surveys or focus groups to better understand whether there was a demand for pens designed specifically for women.
Avoid Stereotypes: The marketing of Bic For Her relied heavily on gender stereotypes, such as the idea that women have delicate hands that require special pens. To avoid this, Bic could have focused on creating marketing messages that were more inclusive and resonated with a diverse range of consumers.
Price the Product Appropriately: One of the criticisms of Bic For Her was that the pens were priced higher than regular pens, despite offering no significant additional features or benefits. To avoid this, Bic could have priced the product more competitively or provided clear and compelling reasons why the pens were worth the higher price.
Test the Product: Before launching a new product, testing it with a smaller audience is vital to see how it is received. In the case of Bic For Her, Bic could have tested the pens with a smaller group of consumers to see whether the product resonated with them before launching it on a larger scale.
Learn from Feedback: When the negative feedback about Bic For Her started to emerge, Bic could have responded more quickly and effectively to address the concerns.
By taking these steps, Bic could have avoided the Bic For Her disaster and created a product that resonated with consumers and drove sales. The key is to understand your target audience, create marketing messages that are inclusive and relevant, and be responsive to feedback and criticism when it arises.
While Bic For Her was widely criticised, the brand was able to learn from its mistakes and move forward. In subsequent marketing campaigns, Bic focused on creating messages that resonated with all consumers, regardless of gender. By acknowledging their missteps and making changes based on feedback, Bic was able to salvage its brand reputation and avoid making similar mistakes in the future.
Putting It All Together
Now that we’ve explored the psychology of shopping behaviour, the power of eye-tracking studies, and specific design elements that make packaging stand out, let’s bring it all together.
A deep understanding of your target audience is essential to create effective packaging. What are their values, preferences, and pain points? How can your packaging address those needs and stand out from the competition?
Once you clearly understand your audience, you can incorporate the design elements we’ve discussed. Consider using bold, bright colours, clear and easy-to-read typography, compelling imagery, unique packaging shapes, and consistent branding.
It’s also important to communicate key information clearly and concisely. What is your product? What are the key benefits or features? Why should consumers choose your product over the competition?
Finally, don’t be afraid to be creative and have fun with your packaging design. Consumers are drawn to brands that have personalities and stand out from the crowd. By incorporating unique design elements and messaging that reflect your brand’s personality and values, you can create packaging that resonates with your target audience and leads to increased sales.
Testing Your Packaging Design
After you’ve invested time and resources into creating effective packaging, testing your design to ensure it resonates with your target audience is important. Here are a few methods for testing your packaging design:
Surveys: One of the simplest ways to test your packaging design is to survey your target audience. You can show them different packaging designs and ask for feedback on their preferred design and why. This can provide valuable insights into what design elements are most appealing to your audience.
Focus groups: Conducting a focus group is another effective method for testing your packaging design. This involves bringing together a group of individuals from your target audience and showing them your packaging design. You can then ask for their feedback on what they like and don’t like about the design and what changes they would suggest.
A/B testing: A/B testing involves creating two different versions of your packaging design and testing them against each other to see which performs better. This can be done through online surveys or by conducting in-store tests.
Eye-tracking studies: Eye-tracking studies can provide valuable insights into how shoppers interact with your packaging design. Eye-tracking technology lets you see which design elements attract the most attention and how shoppers scan the package for information.
Testing your packaging design ensures that it resonates with your target audience and leads to increased sales. This investment in testing can ultimately save you time and money in the long run by ensuring that your packaging design is effective before it goes to market.
Adapting Your Packaging Design Over Time
Even the most effective packaging designs may need to be adapted over time to stay relevant and resonant with your target audience. Here are a few reasons why you may need to adapt your packaging design:
Changes in consumer preferences: Consumer preferences and values can change over time, which may require you to adapt your packaging design to stay relevant. For example, if consumers become more concerned about sustainability, you may need to incorporate eco-friendly packaging materials into your design.
Changes in the competitive landscape: Your competitors may change their packaging designs, requiring you to adapt your design to stand out from the crowd. Keeping an eye on your competitors and their packaging designs can help you stay ahead of the curve.
New product features or benefits: If your product evolves and offers new features or benefits, you may need to update your packaging design to communicate those changes effectively.
New marketing strategies: If you change your marketing strategy, you may need to adapt your packaging design to align with those changes. For example, if you shift your focus to a new target audience, you may need to adapt your packaging design to appeal to that audience.
Packaging design captures consumers’ attention, communicates key information, and drives sales. By understanding the psychology of shopping behaviour, utilising eye-tracking studies, and incorporating key design elements, you can create packaging that stands out on the shelf and resonates with your target audience.
Starting with a deep understanding of your target audience, you can incorporate design elements such as bold colours, easy-to-read typography, compelling imagery, unique packaging shapes, and consistent branding to create effective packaging. Communication of key information clearly and concisely is important, as is creativity and personality in your design to stand out from the competition.
Testing your packaging design using surveys, focus groups, A/B testing, and eye-tracking studies is essential to ensure it resonates with your target audience. Regular evaluation and adaptation of your packaging design can help you stay relevant and effective over time.
By investing in effective packaging design, you can set your product apart from the competition and increase your chances of success in the competitive world of retail. So, take the time to invest in your packaging research and design, and watch as your sales soar.
Kadence International has expertise with the world’s leading brands in package testing. Get in touch or submit a research brief.
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As a marketer, you’re constantly juggling multiple priorities. You need to develop compelling campaigns that resonate with your target audience, stay ahead of the competition, and demonstrate the value of your products or services. With so much to do, it can be tempting to skip the research phase and jump straight into execution mode. However, this can be a costly mistake. Your marketing efforts will likely fall flat without a solid understanding of your customer’s needs, preferences, and pain points.s
That’s where market research comes in. By conducting research, you can gather valuable insights into your target audience and use these insights to inform your marketing strategy. However, knowing when to conduct research and how to do it right can be challenging.
In this article, we’ll explore some telltale signs that indicate it’s time to conduct research and provide practical tips on how to conduct research effectively. Whether you’re a seasoned marketer or just starting out, this article will help you navigate the marketer’s dilemma and make informed decisions that drive growth.
Signs that It’s Time to Conduct Research
Several telltale signs indicate it’s time to conduct research. If you’re experiencing any of the following issues, it may be time to consider conducting research:
Declining Sales: If you’ve noticed a decline in sales, it could be a sign that your marketing strategy is no longer effective. Conducting research can help you identify the root cause of the decline and develop a plan to turn things around.
Customer Complaints: Are you receiving a lot of complaints from customers? This could indicate that your products or services aren’t meeting their needs. Research can help you understand what’s causing the complaints and how to address them.
Lack of Customer Engagement: If your customers aren’t engaging with your brand or products, it may be time to conduct research to understand why. This can help you develop more effective marketing campaigns that resonate with your target audience.
New Competitors: If new competitors have entered the market and are gaining market share, it’s important to conduct research to understand what they’re doing differently and how you can stay ahead.
Changing Market Conditions: Markets constantly evolve; what worked yesterday may not work today. Conducting research can help you stay up-to-date on changing market conditions and adjust your strategy accordingly.
Steps to Take Before Conducting Research
Before conducting any research, you must take some preparatory steps to ensure you’re clear on what you want to achieve. Here are some steps to consider:
Define the Problem: The first step is to define the problem you’re trying to solve. What questions do you need answers to? What insights are you hoping to gain? It’s essential to be clear on the problem before embarking on any research.
Set Research Objectives: Once you’ve defined the problem, you must set research objectives to help you achieve your goal. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, if you’re trying to understand why sales have declined, your research objective might be to identify the key factors contributing to the decline.
Identify the Target Audience: Next, you must identify your research’s target audience. Who are you trying to reach? What characteristics do they have? It’s essential to define your target audience so that you can design research that will yield meaningful insights.
Choose the Right Research Methodology: There are many different research methodologies available, such as surveys, focus groups, interviews, and observational research. Each method has pros and cons; the right choice will depend on your research objectives and target audience. Choosing the right methodology ensures you get the insights you need.
Develop the Research Instrument: Once you’ve chosen your methodology, you need to develop the research instrument – the tool you’ll use to collect data. This might be a survey questionnaire, a discussion guide for a focus group, or an interview protocol. It’s important to design the research instrument carefully to ensure you collect high-quality data.
Crafting the Right Research Question
Once you’ve defined the problem, set research objectives, identified the target audience, and chosen the right research methodology, the next step is to craft the right research question. The research question should be clear, concise, and focused on the problem you’re trying to solve. In addition, you can develop supplemental questions to provide more context and depth around the issue. Here are some tips for crafting the right research question and creating additional questions:
Start with a Broad Question: Begin by crafting a broad research question that captures the main issue you’re trying to address. For example, if you’re trying to understand why sales have declined, your general research question might be, “What factors are contributing to the decline in sales?”
Narrow the Question: Once you have a broad research question, you need to narrow it down to something more specific. This will help you focus your research and ensure you’re collecting the correct data. For example, you might narrow your research question to “What are the key drivers of customer churn?”
Make the Question Measurable: It’s important to make your research question measurable so that you can collect data that will help you answer it. For example, you might ask, “What percentage of customers who churn cite price as a factor?”
Ensure the Question is Relevant: The research question should be relevant to the problem you’re trying to solve and the research objectives you’ve set. Ensure that the question will yield insights to help you make informed decisions.
Keep the Question Simple: Keep the research question simple and easy to understand. This will help ensure that participants can answer it accurately and that you can analyse the data effectively. Let’s say you’re conducting research to understand why customers are not using a new feature on your product. Instead of asking a complex question like, “How do you feel about the usability of the new feature compared to previous versions of the product?” which may confuse participants, consider asking a simple and direct question like “Are you currently using the new feature?” This question is easy to understand and can be answered with a simple “yes” or “no,” making it easier for participants to answer accurately and for you to analyse the data effectively.
Develop Supplemental Questions: Once you have the key question, develop supplemental questions that provide more context and depth around the issue. These questions should help you understand the nuances of the problem and provide a more comprehensive view of the issue. For example, suppose you’re trying to understand why sales have declined. In that case, you might develop supplemental questions such as “How has customer sentiment changed over time?” or “What are customers saying about our competitors?”
Conducting the Research
Once you’ve defined the problem, set research objectives, identified the target audience, chosen the right research methodology, and crafted the right research questions, it’s time to conduct the research. Here are some tips for conducting the research effectively:
Recruit Participants: Depending on your research methodology, you’ll need to recruit participants who fit your target audience. This might involve contacting customers via email, social media, or in-person events. Make sure to screen participants carefully to ensure they meet your established criteria.
Structure the Research: Once you’ve recruited participants, you must structure the research to yield meaningful insights. For example, if you’re conducting a focus group, you might structure the discussion around key topics or questions. If you’re conducting a survey, you must design the questionnaire carefully to ensure you’re collecting the data you need.
Collect Data: The next step is to collect the data. This might involve recording the discussion in a focus group, administering a survey online or in-person, or conducting interviews. Make sure to collect the data in a way that is consistent with the research methodology you’ve chosen.
Analyse the Data: Once you’ve collected the data, you must identify patterns and insights. This might involve coding the data, running statistical analyses, or using qualitative analysis techniques. Analyse the data rigorously to ensure the insights are accurate and meaningful.
Draw Conclusions: Finally, use the insights you’ve gained from the research to draw conclusions and inform your marketing strategy. What did you learn from the study? How can you use these insights to address the problem you identified at the beginning of the research process?
Interpreting the Results
Once you’ve researched and analysed the data, it’s time to interpret the results and use them to inform your marketing strategy. Here are some tips for interpreting the results effectively:
Look for Patterns: As you review the data, look for emerging patterns and trends. Are there any common themes or issues that participants identified? What insights can you gain from the data?
Compare Results: If you conducted multiple research methods, compare the results to determine any consistencies or discrepancies. This can help you triangulate the data and ensure accurate insights.
Consider the Context: When interpreting the results, it’s essential to consider the context in which the research was conducted. What external factors might be impacting the results? How do the results align with what you know about the market and your target audience?
Draw Meaningful Conclusions: Based on the insights you’ve gained from the research, draw meaningful conclusions that will inform your marketing strategy. What changes do you need to make to your strategy? What opportunities can you pursue based on the insights?
Communicate the Results: Finally, communicate the research results to your organisation’s stakeholders. This might include senior leadership, sales teams, or product development teams. Communicate the results clearly and effectively, and emphasise how they can be used to drive business growth.
Key Takeaways
The marketer’s dilemma of knowing when to conduct research and how to do it right is a challenge many marketers and product marketing managers face
However, by following best practices and taking a structured research approach, you can gather valuable insights into your target audience and use these insights to inform your marketing strategy.
Defining the problem is the first step in conducting research, followed by setting research objectives, identifying the target audience, choosing the correct methodology, and crafting the right research question.
Signs that indicate it’s time to conduct research include declining sales, customer complaints, lack of customer engagement, new competitors, and changing market conditions.
Conducting research involves recruiting participants, structuring the research, collecting data, analyzing the data, and drawing conclusions.
Interpreting the results involves looking for patterns, comparing results, considering the context, drawing meaningful conclusions, and communicating the results to stakeholders.
By taking a strategic approach to research and using the insights gained to inform your marketing strategy, you can develop compelling campaigns, stay ahead of the competition, and drive business growth.
No matter your experience level, prioritising research and using it to inform your marketing strategy is crucial for driving business growth. Following the steps outlined in this article, you can conduct research that yields valuable insights and helps you make informed decisions.
If you’re ready to take the next step and conduct a research project, consider working with a trusted partner like Kadence International. With 30 years of expertise and offices in 10 countries, Kadence is a leading and award-winning market research firm that can help you conduct research that delivers actionable insights. Contact us to learn more and get started on your next research project.
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Gamification, the use of game mechanics and design elements in non-game contexts, has become a popular strategy for encouraging healthy behaviours. By making healthy activities more engaging and fun, gamification has the potential to motivate individuals to adopt healthier lifestyles.
In recent years, many brands have embraced gamification to enhance consumer engagement and loyalty. This approach effectively creates lasting behaviour change, a significant challenge in health and wellness.
One of the key benefits of gamification is its ability to leverage intrinsic motivation. By tapping into people’s natural desire for mastery, autonomy, and relatedness, gamification can create a sense of enjoyment and satisfaction that makes healthy behaviours more appealing. Additionally, gamification can provide a sense of social support and accountability as users compete with friends and track progress toward shared goals. By making healthy behaviours more fun and engaging, gamification has the potential to create lasting behaviour change and drive positive outcomes for both consumers and brands.
One of the main features of gamification is using rewards to incentivise desired behaviours. Unlike traditional games, which are primarily focused on entertainment, gamification is designed to encourage specific behaviours or outcomes. For example, a fitness app might award badges or points to users who reach certain milestones, or a loyalty program might offer discounts or exclusive perks to customers who make repeat purchases. By creating a sense of progress and achievement, gamification can motivate users to continue engaging with the product or service.
Benefits of gamification for health and wellness
Here are a few of the main benefits of gamification for health and wellness:
Increased motivation: One of the primary benefits of gamification is that it can increase motivation for healthy behaviours. By tapping into people’s natural desire for achievement and mastery, gamification can create a sense of satisfaction and progress that makes healthy behaviours more appealing.
Increased engagement: Gamification can also increase engagement with health and wellness programs. By making activities more fun and interactive, gamification can encourage people to stick with their programs and continue making progress toward their goals.
Increased retention: Gamification can also increase the retention of healthy behaviours over time. By creating a sense of community and accountability, gamification can encourage people to continue engaging with health and wellness programs even after the initial novelty wears off.
Examples of gamification use in health and wellness
Many health and wellness brands use game mechanics and design elements to encourage healthy behaviours. Here are a few examples of how gamification has been used in health and wellness:
Fitness apps: Many fitness apps use gamification to motivate users to exercise and track their progress. For example, the app Strava allows users to compete with friends and track their running or cycling routes, while Fitbit and other wearable devices use badges and challenges to encourage physical activity.
Weight loss programs: Weight loss programs like Weight Watchers have incorporated gamification elements to increase engagement and motivation. For example, the program allows users to earn “FitPoints” for physical activity and offers rewards for reaching weight loss milestones.
Mental health apps: Gamification has also been used in mental health apps to encourage mindfulness and stress reduction. The app Headspace, for example, uses game-like elements to encourage users to meditate regularly and track their progress.
Chronic disease management: Gamification has also been used to help people manage chronic diseases like diabetes. The app MySugr, for example, allows users to track their blood sugar levels and provides feedback and rewards to encourage healthy habits.
Best practices for using gamification
By following these best practices, brands and organisations can create effective gamification strategies that encourage healthy behaviours and deliver measurable value. With the help of market research, they can identify and prioritise the most effective gamification features and continuously improve their approach over time.
Set clear goals: To create effective gamification strategies, you must set clear goals for what you want to achieve. This might involve defining specific behaviours or outcomes you want to encourage, such as increased physical activity or better medication adherence.
Create meaningful rewards: Rewards are a vital aspect of gamification, and creating meaningful and motivating rewards for users is essential. This might involve offering tangible rewards like discounts or prizes or more intangible rewards like badges or social recognition.
Design a user-friendly experience: To encourage engagement and retention, it’s essential to design a user-friendly experience that is intuitive and easy to use. This might involve testing different user interfaces and gathering user feedback to identify improvement areas.
Use data to inform strategy: Market research can gather data and insights on user behaviour and outcomes, which can inform the development of gamification strategies. This might involve analyzing user engagement and retention rates, conducting surveys or focus groups to gather feedback, or using analytics tools to track user behaviour over time.
Evaluate ROI: It’s important to evaluate gamification investments’ return on investment (ROI) to ensure they deliver value for the organisation. This might involve measuring the impact of gamification on key metrics like user engagement, behaviour change, or health outcomes and using this data to prioritise and refine gamification features.
Market Research’s role in gamification
Market research is a critical component of developing and implementing effective gamification strategies. By gathering data on consumer needs and preferences, testing prototypes, and evaluating the effectiveness of campaigns, brands can create gamification experiences that are engaging, effective, and sustainable over the long term.
Here are some specific ways that market research can contribute:
Identifying consumer needs and preferences: Market research can gather insights into consumer needs and preferences related to health and wellness. This might involve conducting surveys, focus groups, or user testing to understand what motivates consumers to adopt healthy behaviours and their preferences for gamification features and rewards.
Testing prototypes: Once a gamification strategy is developed, market research can test prototypes and gather user feedback. This might involve conducting user testing or focus groups to identify areas for improvement and refine the user experience.
Evaluating the effectiveness of campaigns: Market research can also evaluate the effectiveness of gamification campaigns over time. This might involve tracking user engagement and retention rates, conducting surveys or interviews to gather feedback, or using analytics tools to measure the impact of gamification on key metrics like behaviour change or health outcomes.
Prioritizing features: Market research can help prioritise gamification features based on their potential impact on user engagement and behaviour change. By gathering user needs and preferences data, brands can identify the most critical features and allocate resources accordingly.
Important considerations when developing a gamification strategy
When using gamification in health and wellness, it’s important to consider ethical considerations to ensure that users are treated fairly and respectfully. Here are some ethical considerations that should be taken into account:
Privacy and data security: Gamification often involves collecting and storing user data, which can raise privacy and security concerns. Brands should protect user data and ensure it is only used for its intended purpose.
Transparency and informed consent: Users should be fully informed about how their data will be used and have the opportunity to provide informed consent. Brands should be transparent about their data collection and use policies and provide users with clear information about how their data will be used.
Inclusivity: Gamification should be designed to be inclusive of all users, regardless of their race, ethnicity, gender, or other personal characteristics. Brands should be sensitive to the potential for bias or discrimination and take steps to ensure that gamification features are designed to be accessible and inclusive.
Accuracy and fairness: Gamification should be designed to measure and reward user behaviour accurately. Brands should avoid using gamification features that are misleading or unfair and should be transparent about how rewards are calculated and distributed.
Limitations of gamification
While gamification can be an effective strategy for promoting health and wellness, it is not without potential limitations or drawbacks. Here are some of the key considerations:
Short-term impact: Gamification is often used to motivate users in the short term, but it may not lead to lasting behaviour change. Users may lose interest in gamification features once they become less novel and may revert to their old habits over time.
User preferences: Not all users may find gamification features engaging or motivating. For some users, gamification may feel trivial or inauthentic and may not lead to sustained engagement or behaviour change.
Potential for addiction: Gamification features, particularly those involving rewards or points systems, may potentially create addictive behaviours. Users may become overly focused on achieving rewards or points at the expense of other aspects of their health or well-being.
Privacy and data security: As mentioned earlier, gamification often involves collecting and storing user data, which can raise privacy and security concerns. Brands must protect user data and ensure it is only used for its intended purpose.
Potential for bias or discrimination: Gamification features may inadvertently reinforce existing biases or discrimination, particularly if designed without considering users’ diverse needs and preferences. Brands must be careful to avoid any features that may perpetuate stereotypes or bias.
The role of social influence in gamification
Social influence and peer support can play an influential role in the success of gamification strategies. By creating a sense of community and accountability, gamification can tap into users’ social networks to increase engagement and motivation. Here are some ways that social influence and peer support can be incorporated into gamification:
Social features: Many gamification strategies incorporate social features, such as leaderboards or social sharing, that allow users to compete or collaborate with their peers. By tapping into users’ natural desire for social validation and recognition, social features can increase engagement and motivation.
Peer support networks: Gamification strategies can also leverage peer support networks for encouragement and accountability. For example, fitness apps like Nike Training Club allow users to join virtual workout groups and connect with other users who share similar fitness goals.
Rewards for social engagement: Brands can incentivise social engagement by offering rewards or recognition for users who share their progress on social media or invite friends to join their program. This can create a sense of community and encourage users to support each other in their health and wellness journeys.
User-generated content: User-generated content, such as user reviews or success stories, can also be a powerful tool for creating social influence and peer support. By highlighting the achievements and experiences of other users, brands can inspire and motivate new users to join their programs.
Health and Wellness gamification success stories
There are many examples of gamification strategies that have been successful in promoting health and wellness. Here are a few specific examples, along with their respective outcomes and impact:
Pokemon Go: Pokemon Go is a popular mobile game incorporating gamification elements to encourage physical activity. Players must walk or run to different locations to catch virtual Pokemon characters, earning points and rewards along the way. One study found that Pokemon Go players increased their physical activity by an average of 1475 steps per day or about 25% more than their baseline activity levels.
Habitica: Habitica is a gamification app that tracks users’ daily habits and tasks, earning rewards and points for completing them. The app incorporates social features that allow users to connect with friends and join virtual communities based on shared goals. One study found that users who used Habitica for four weeks were likelier to continue using the app than those who used a non-gamified habit-tracking app.
Blue Shield of California’s Wellvolution program: Blue Shield of California’s Wellvolution program uses gamification to encourage healthy behaviours among its members. The program offers challenges and rewards for completing healthy activities like exercise or healthy eating and allows users to connect with health coaches and track their progress over time. One study found that users who participated in the Wellvolution program had significantly lower healthcare costs than non-participants.
Mango Health: Mango Health is a medication management app that uses gamification to encourage medication adherence. Users earn points and rewards for taking their medications on time and can connect with friends and family members for support. One study found that Mango Health users were 1.5 times more likely to take their medications on time than non-users.
Case Study: Zombies, Run!
Zombies, Run! is a popular mobile game that combines storytelling, fitness tracking, and gamification elements to encourage physical activity. The game has been credited with increased physical activity in users. Let’s look at how the game works and why it has been so successful.
The premise of Zombies, Run! is simple: players are runners in a post-apocalyptic world overrun by zombies. The game combines immersive storytelling with fitness tracking, allowing users to experience a thrilling adventure while getting in shape. Players start by selecting a mission, which might involve gathering supplies or rescuing survivors, and then begin running. The game tracks their distance, pace, and burned calories as they run while immersing them in a rich audio narrative.
The game’s developers, Six to Start, conducted a study to evaluate the impact of Zombies, Run! on physical activity levels. The study included 3,906 participants who completed a survey before and after using the app for six weeks.
The results were impressive: on average, participants who used the app increased their weekly physical activity by 23 percent. In addition, 90% of participants reported that the game had motivated them to exercise more, and 80% reported that they were more likely to continue using the app in the future.
So why has Zombies, Run! been so successful at increasing physical activity levels? One key factor is the game’s immersive storytelling. By creating a compelling narrative that users can engage with, the game makes running more enjoyable and engaging. The game also incorporates gamification elements, such as rewards for completing missions and progress tracking, that give users a sense of accomplishment and motivation. In addition, the game’s community features, such as leaderboards and social sharing, allow users to connect with other players and provide a sense of accountability and support.
Overall, the success of Zombies, Run! highlights the potential of gamification to increase physical activity and promote healthy behaviours. By combining storytelling, fitness tracking, and gamification elements, the game provides users with an engaging and motivating experience that can lead to sustained behaviour change.
Case Study: SuperBetter
SuperBetter is a website developed to help people recovering from traumatic brain injuries, and it uses gamification elements to encourage users to set goals, track progress, and build resilience. Let’s look closer at how the website works and why it has been so effective.
The concept behind SuperBetter is simple: users set goals for themselves, such as managing pain or reducing stress, and then use the website’s tools to track their progress and build resilience. The website incorporates gamification elements, such as quests, power-ups, and challenges, that give users a sense of accomplishment and motivation. Users can also connect with friends and family for support, creating a sense of community and accountability.
The study published in the Journal of Medical Internet Research evaluated the effectiveness of SuperBetter among 388 participants who were recovering from traumatic brain injuries. The participants were randomly assigned to use the website or receive standard care.
The results were striking: after 12 weeks, participants who used SuperBetter reported a 50% decrease in symptoms of depression and anxiety, compared to a 20% decrease among participants who received standard care. In addition, users of SuperBetter reported a 55% increase in their ability to cope with stress, compared to a 16% increase among those who received standard care.
So why has SuperBetter been so effective at reducing symptoms of depression and anxiety? One key factor is the website’s focus on building resilience. By providing users with a range of tools and strategies for coping with stress and setbacks, the website helps users feel more in control and better manage their symptoms. The website also incorporates social support and community features, allowing users to connect with others who share similar experiences and provide encouragement and accountability.
Overall, the success of SuperBetter highlights the potential of gamification to promote mental health and well-being. By incorporating gamification elements and community features, the website gives users a sense of accomplishment, motivation, and social support that can lead to sustained behaviour change. The study also underscores the importance of using market research to evaluate gamification strategies’ effectiveness and continuously refine and improve them over time.
Key Takeaways
Gamification has emerged as a powerful strategy for promoting health and wellness, with many brands and organisations using game mechanics and design elements to encourage healthy behaviours.
Market research plays a critical role in developing and implementing effective gamification strategies by gathering insights on user behaviour and outcomes, testing prototypes, and evaluating the effectiveness of campaigns.
Here are some key takeaways from this blog:
Gamification can be an effective tool for promoting healthy habits by increasing motivation, engagement, and retention.
Best practices for gamification in health and wellness include setting clear goals, creating meaningful rewards, designing a user-friendly experience, using data to inform strategy, and evaluating ROI.
Ethical considerations, such as privacy and data security, should be considered when using gamification.
Social influence and peer support can play an influential role in the success of gamification strategies by creating a sense of community and accountability.
Gamification can potentially transform how we approach health and wellness by making healthy behaviours more engaging, fun, and sustainable. By incorporating best practices, ethical considerations, and social influence, brands and organisations can create gamification programs that are effective, inclusive, and impactful.
If you seek a market research partner to help with your gamification strategy, Kadence International is happy to help.
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The allure of new and improved products is undeniable. We constantly see updates and revised versions of our favourite products and wonder if and when we should buy the updated versions of products that already work for us.
The truth is that brands frequently release products as new and improved, and consumers feel compelled to buy even when there is little objective improvement. Revising things may or may not make products better than their previous versions, yet, consumers perceive them as improved products. This is the reason brands release improved flavours, revised editions of books, and technology updates.
For product development teams to release product improvements, it is vital to consider market research to collect consumer preferences and behaviour data. Product development includes innovating and creating new products based on these insights. In this blog post, we will explore why updates and revised products are more appealing to consumers and how market research and product development play a part.
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Why do consumers think updates and revised products are better even if they are not?
When a new version of a product is released, consumers often perceive it as being better than its predecessor. This can be seen in technology, from smartphones to video game consoles.
Research studies show consumers have difficulty passing up on a product labelled new, improved, or revised, even if it isn’t objectively better than its previous version.
So why do consumers think updates and revised products are better than their previous versions? It is due to a combination of consumer psychology and behaviour.
Consumers no longer make decisions solely based on rationality, as evidenced by the financial crisis and a wealth of research. The leader in this space, Daniel Kahneman, has presented his groundbreaking book, “Thinking, Fast and Slow.” The book explains how our minds possess two distinct methods of thinking, which he calls System 1 and System 2 thinking.
Kahneman’s work on the System 1 and System 2 thinking models helps explain why people make certain decisions about purchasing updated products. System 1 is instinctive, fast, and emotional, while System 2 is logical, slow, and analytical. In many cases, people are drawn to updated products due to the former type of thinking, which means they are likely to be swayed by the allure of what appears to be a shiny, new object.
People often assume new versions of products and services are better, even if the improvements are insignificant.
One study by the University of Michigan found that people are more likely to choose new products than old ones, even when the products are identical. The researchers also found that people are willing to pay more for products labelled as new than those labelled as old.
Another study published in the Journal of Consumer Research found that consumers are more likely to choose products labelled as new or improved than those not labelled in this way. The researchers found that consumers associate these labels with innovation and quality and are more likely to be attracted to them.
This behaviour is further explained by Kahneman’s distinction between “fast” and “slow” thinking. Fast thinking is the instinctive, automatic response to the perceived differences between old and new products. Slow thinking involves more deliberation, where consumers compare the cost of the new product against the benefit it provides.
Market research into what consumers want and need has revealed that people tend to view these new versions as more desirable because they offer additional features or more convenient use than earlier versions.
How high technology product developers and marketers make decisions regarding updates.
If you’ve ever agonised over the perfect time to replace your mobile device with a shiny new model, then you can appreciate the difficult decisions technology developers and marketers have to make when planning their product updates.
To assist planners of high-tech consumer products in making these kinds of decisions, V. “Seenu” Srinivasan, a distinguished professor at Stanford GSB, and Sang-Hoon Kim, an assistant professor at Seoul National University, created a mathematical model which forecasts the sales pattern of a new version of an existing product.
In an article titled “What Makes Consumers Want to Buy the Latest Model?” Srinivasan describes the model as simple, saying it is based on how much the benefits of a new product (compared to an old one) outweigh any obstacles that may inhibit a customer from upgrading. For instance, the probability of a customer buying a new laptop will increase if it is much better than their existing one and the upgrade is easy and not overly expensive. The obstacles taken into consideration for this model include not just the financial, procedural, and psychological costs of upgrading but also a consumer’s expectations on how soon future technology improvements will occur, the customer’s level of innovativeness, and the customer’s existing opinion of the product.
As anticipated, if the gains of upgrading outweigh any perceived drawbacks, it is more probable that the consumer will upgrade in a specific month.
Exploring such an analysis in the actual world is far more complex and expensive. For some products such as laptops, printers, and cell phones, Srinivasan states, their new versions come out so quickly that some technical supervisors think there needs more time for this kind of market exploration.
But educators are enthusiastic as the model is an imaginative blend of two prevailing methodologies in marketing science: conjoint analysis and hazard rate modelling. Conjoint analysis, which includes asking a sample of customers from the goal market how essential they consider various features to be, has been applied for some time to determine which group of product features to offer. However, since conjoint analysis provides a static snapshot of the marketplace at a specified moment, it does not provide the sorts of answers linked to product upgrades. It requires the inclusion of hazard rate modelling, traditionally used to compute the time discrepancy between a product’s initial purchase and future replacement purchases.
The importance of Market research in product development.
The idea of buying something new and improved can be seen in many industries, from food or beverages to technology and streaming services. Smartphone companies typically announce a new version of their device every year or two, even though the updates are relatively minor. Similarly, streaming services offer different packages with additional features or added content. In all cases, the companies use this lure of new to boost their sales and keep customers interested in their products.
When it comes to developing high-tech products, market research plays an important role. Companies must carefully evaluate consumer preferences, pricing strategies, and other factors to ensure their product is attractive to customers and has the potential for long-term success. Market research also helps companies predict when to introduce a new version of an existing product. By understanding consumer behaviour, companies can make informed decisions about when to launch a revised product that will maximise its success.
Ultimately, combining consumer psychology and behaviour helps explain why consumers find updates and revised products more attractive. As marketers plan out their product releases and try to find the best ways to reach consumers, understanding these factors is essential for success.
Take a deep dive into Gen Z’s psychology, behaviour, preferences, beliefs, and attitudes. Download our exhaustive guide to understand and engage with this target segment.
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Microsoft recently made a substantial commitment to OpenAI’s ChatGPT —a chatbot released late last year, announcing its intent to invest $10 billion, while tech giant Google is scrambling to produce a rival for ChatGPT called Bard.
Artificial Intelligence (AI) is advancing at a remarkable rate, raising several questions about the dangers and risks of an AI takeover in every walk of life.
Artificial Intelligence (AI), the ability of computers to perform tasks that typically require human intelligence, such as speech and image recognition, iterative learning, and creative thinking, has been a touchstone of hope and anxiety for decades.
AI is within reach of many industries, including healthcare, education, retail, and, believe it or not, mining. Of course, the field of market research is no exception.
In market research, will AI put jobs on the chopping block, or will it set off a renaissance of new market research innovation and jobs? Will machine learning in market research annihilate the human element or propel the industry forward with accelerated momentum?
Stephen Hawkings cautioned the world about the rise of artificial intelligence.
These questions have been a major source of anxiety for many. But before we dive into these questions, let’s look at a brief history of AI, the types of AI, and how to use AI.
A Brief History of Artificial Intelligence
Let’s look at how AI has evolved over the past few decades.
Artificial Intelligence can be divided based on capabilities and functionalities.
There are three types of Artificial Intelligence-based on capabilities.
Narrow AI
Also known as Weak AI, Narrow AI specialises in one task and cannot exceed its boundaries. This subset of AI is advancing in that single domain, becoming more ubiquitous in everyday life as machine learning and deep learning progress. Let’s look at the capabilities of Narrow AI using real-world examples. From the iPhone’s Siri virtual assistant to self-driving cars, utilising vision recognition and product recommendation engines, this type of AI utilises pre-programmed abilities to serve users but often fails to assist with tasks outside its scope. On the other hand, IBM Watson is an advanced data analytics processor that employs natural language processing, an advanced technology that deciphers human language for syntax and significance. Watson has the power to rapidly perform analytics on enormous volumes of data to respond to human inquiries accurately. Interestingly, Watson competed and outsmarted a contestant on the popular TV game show Jeopardy!
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Other popular examples of Narrow AI include Google Translate, image recognition software, recommendation systems, spam filters, and Google’s page-ranking algorithm.
General AI
General AI, otherwise known as strong AI, is a form of Artificial Intelligence (AI) that has the potential to understand and learn any task a human being can. AI researchers have yet to develop this technology to its fullest capacity, needing a method to give machines the ability to think cognitively.
Fujitsu has built the K computer – one of the world’s fastest supercomputers- to create strong AI. Meanwhile, China’s Tianhe-2 has been deemed the most powerful supercomputer in the world, as it can calculate 33.86 petaflops (quadrillions of cps). This still needs to catch up to what the human brain can accomplish.
Super AI
Artificial Superintelligence (AI) has surpassed human intelligence and can do any task more efficiently than a person. Super AI is imagined to be so close to the human sentiment that it not only comprehends them but can create its own feelings, requirements, opinions, and wishes. As of now, its concept remains just hypothetical. However, it is thought to possess significant abilities like contemplating, resolving issues, and generating its own judgments and decisions.
In terms of functionality, there are four main types of Artificial Intelligence.
Purely Reactive
As the name suggests, these AI machines do not use any data or memory. They specialise in one field. An example would be in a chess game where the machine observes the player’s moves and makes the best possible decision to win.
Limited Memory
These machines use previous data, but memory is limited. They have enough previous data to make decisions, but their memory is minimal. An example is suggesting users a convenience store based on the location data.
Theory of Mind
This type of AI goes beyond hard data and can interpret emotions and thoughts.
Self-Aware
Self-aware machines are smart as well as conscious. These are the future of AI.
So how does AI work?
Artificial Intelligence utilises an abundance of data and intelligent algorithms, in tandem with high-speed processing, to understand patterns in the data and self-teach accordingly.
Artificial Intelligence is expected to revolutionise the market research industry in several ways:
Data Collection and Analysis: AI-powered tools can collect, process and analyse large amounts of data faster and more accurately than humans, leading to more comprehensive and actionable insights.
Customer Insight: AI can help uncover hidden patterns and connections in customer data, providing deeper and more personalised insights into consumer behaviour.
Predictive Analytics: AI-powered predictive analytics can help companies anticipate consumer behaviour, market trends, and buying patterns, allowing businesses to make more informed decisions.
Sentiment Analysis: AI can analyse large volumes of customer feedback, social media data, and other unstructured data sources to provide insight into consumer opinions and emotions.
Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants can interact with consumers and collect data, freeing up researchers’ time to focus on analysis and interpretation.
Improved Efficiency and Accuracy: AI can automate repetitive tasks, reducing errors and allowing market researchers to focus on more creative and strategic initiatives.
Artificial Intelligence is a powerful tool that can significantly enhance the work of market researchers, but it is unlikely to replace them completely.
Here are some ways in which AI will not replace the role of market researchers:
Interpretation and Analysis: AI can provide vast amounts of data and insights, but it is up to market researchers to interpret the results and provide meaningful insights and recommendations.
Creative Problem-Solving: Market researchers are responsible for devising and executing research strategies, which requires creative problem-solving and human intuition. AI is not capable of replacing this critical aspect of the research process.
Ethical Considerations: AI operates based on algorithms and data inputs, sometimes resulting in biased or unethical outcomes. Market researchers must consider ethical considerations and ensure that research methods and results align with the values and goals of the organisation.
Communication and Presentation: Market researchers are responsible for communicating the research results to stakeholders, which requires strong communication skills, the ability to tell a story, and the ability to present data in an engaging and actionable manner.
Contextual Understanding: AI operates based on patterns and algorithms, but it cannot replace the human understanding of context, culture, and individual circumstances that is critical to providing meaningful insights.
AI disruptions are everywhere.
AI is quickly disrupting how brands approach customer service, product creation, marketing, and data analysis. Companies are beginning to integrate AI into many aspects of their operations. Here are a few of the major brand disruptions that AI is bringing to the market:
One brand that has caused a disruption in the marketplace through AI is Amazon. By incorporating machine learning, Amazon has made real-time decisions to respond to customer needs. By taking into account past customer behaviours and preferences, Amazon offers personalised product recommendations. Amazon has also used AI-enabled facial recognition technology in their warehouses to automate and improve the inventory process.
Another brand that has disrupted the market using AI is Microsoft. Microsoft provides businesses with advanced predictive analytics and natural language processing capabilities through its Azure AI platform. With these features, businesses can use machine learning to develop more accurate forecasting models. Additionally, brands can more effectively identify customer trends and behaviour, enabling them to respond quickly to changing customer demands.
Finally, Tesla is another company that has used AI to disrupt the market. The company has enabled its autonomous vehicles to read and recognise their environment using computer vision. This allows their cars to recognise traffic signals and lane markings, resulting in a safer driving experience. Additionally, their AI-powered Autopilot system allows their cars to make real-time adjustments to improve their driving performance.
Will robots dominate the world?
Artificial Intelligence has progressed at a phenomenal rate, and its expansive possibilities have prompted fears about the probability of an AI takeover.
In Nick Bostrom’s book Superintelligence, the opening story “The Unfinished Fable of the Sparrows” offers a parable of how AI’s growing strength and abilities can stir feelings of unease and worry. The story follows some sparrows that sought a pet owl, disregarding the worries of one sparrow that cautioned about the difficulty of controlling such a creature. Instead of addressing this doubt, the group simply deferred the issue for future resolution.
Elon Musk, the founder of Tesla, SpaceX, and Neurolink, has also openly expressed the potential dangers of AI. However, since the benefits of AI are enormous, he suggests a regulatory body to minimise the dangers and risks associated with it.
Overall, while AI can significantly enhance the work of market researchers, it will not replace their expertise and creativity. Instead, market researchers will likely embrace AI as a tool that enables them to do their jobs more efficiently and effectively.
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Sun Tzu once said, “Know thy self, know thy enemy. A thousand battles, a thousand victories.” While the quote from this ancient Chinese military strategist is about tactical warfare, it also highlights the importance of understanding your place in the market and the competition you face.
In today’s world of global e-commerce, where sales amounted to over $5.7 trillion in 2022, businesses must conduct a competitive analysis to gain an edge. This article will delve into the essential steps of competitive analysis and show you how to leverage the insights gained to enhance your brand or product’s market position. Whether you’re a marketer, brand manager, or product manager, this post will provide the knowledge and tools to evaluate your business’s performance and stay ahead of the competition.
Identifying Competitors
The first step in conducting a competitive analysis is identifying your competitors. This includes direct competitors who offer similar products or services and indirect competitors who offer substitutes or alternatives to your offerings.
A direct competitor is a business that offers similar products or services and targets the same customer segments as another business. Direct competitors are often in direct competition for customers and market share. For example, Nike and Adidas are direct competitors in the athletic footwear and apparel market. Both companies offer similar products, such as running shoes, athletic wear, and accessories, and target the same customer segments, including athletes and fitness enthusiasts.
An indirect competitor is a business that offers products or services that are not the same as another business but still competes for customers in the same market. Indirect competitors can offer substitute products or services or cater to a slightly different customer segment. For example, Uber and public transportation services are indirect competitors. While they offer different products and services, they still compete for customers who need to travel from one place to another. In some cases, customers may choose to take public transportation instead of Uber, or vice versa, depending on convenience, cost, and availability.
One way to identify your competitors is to research your industry and market. Look for companies with similar products or services and a similar target audience. You can also ask your customers who they consider as alternatives to your brand or product.
Another method is to use online tools such as Google Trends, SEMrush, or SimilarWeb. These tools allow you to analyse the search volume and traffic of your competitors’ websites and their social media presence and marketing tactics.
Once you have identified your competitors, you must classify them and understand their strengths and weaknesses. This will help you gain insights into their strategies and how they are positioning themselves in the market. For example, if you’re a fitness app, your direct competitors may include other fitness apps such as Fitbit and MyFitnessPal, while your indirect competitors may include gyms or personal trainers.
Understanding your competitors’ pricing strategies, marketing tactics, and features can help you differentiate your brand and attract more customers. A Harvard Business Review article emphasises the importance of understanding competitors: “It’s not enough to know who your competitors are. You need to know how they think, what drives them, their goals and values, and their strengths and weaknesses.” By conducting a thorough competitive analysis, you can gain valuable insights into your competitors and use them to improve your business strategy.
Analysing Competitors
Once you have identified your competitors, the next step is thoroughly analysing their business strategy. This includes researching their products or services, pricing strategies, marketing tactics, and overall market position.
One way to analyse your competitors is to visit their websites and social media profiles. Look at the design and layout of their website, the features of their products or services, and their pricing strategy. Also, pay attention to their social media presence, including the type of content they share, how often they post, and their engagement with customers.
Another method is to purchase or use your competitors’ products or services. This will give you firsthand experience with their offerings and allow you to identify areas where you can differentiate your brand or product.
Additionally, you can conduct a SWOT analysis of your competitors. SWOT stands for strengths, weaknesses, opportunities, and threats. You can identify areas to improve your business strategy by analysing your competitors’ strengths and weaknesses. Similarly, you can adapt your approach to changing market conditions by identifying opportunities and threats.
For example, let’s say you’re a restaurant owner, and your competitor is a nearby restaurant that offers similar cuisine. By analysing their pricing strategy, menu offerings, and customer reviews, you discover they offer a more extensive menu and are priced slightly higher than your restaurant. You can use this information to differentiate your brand by providing a unique menu with higher-quality ingredients at a competitive price.
Evaluating Your Position
After analysing your competitors, you must compare your position and strengths. This will help you identify areas where you can improve your business strategy and differentiate your brand or product from the competition.
One way to evaluate your position is to conduct a SWOT analysis of your business. This includes identifying your strengths, weaknesses, opportunities, and threats. By analysing your strengths and weaknesses, you can identify areas to improve your business strategy. Similarly, you can adapt your strategy to changing market conditions by identifying opportunities and threats.
Another method is to analyse your customer feedback and reviews. Look for areas where your customers are particularly satisfied and where they think you can improve. This will give you insights into your strengths and weaknesses and help you understand how you’re perceived in the market.
Additionally, you can evaluate your pricing strategy and marketing tactics. Are you offering competitive prices for your products or services? Are your marketing efforts effective in reaching your target audience? By evaluating these aspects of your business, you can identify areas to improve and differentiate your brand.
For example, let’s say you’re a tech company that offers a productivity app. After analysing your competitors, you may find that your app offers similar features to your competitors but at a lower price point. You can use this information to differentiate your brand by emphasising the value of your app and targeting price-sensitive customers.
As business strategist Jay Abraham once said, “Your competitors can teach you everything you need to know about your own customers.” By evaluating your position and strengths compared to your competitors, you can gain valuable insights that will help you improve your business strategy and attract more customers.
Creating an Action Plan
Once you have conducted a competitive analysis and evaluated your position, it’s time to create an action plan leveraging the insights gained. An action plan should be a detailed roadmap of the steps you need to take to improve your brand or product’s market position.
One way to create an action plan is to prioritise the insights gained from your competitive analysis and evaluation. For example, if you’ve identified a weakness in your pricing strategy, you may prioritise adjusting your prices to be more competitive. Similarly, if you’ve identified an opportunity to target a new customer segment, you may prioritise developing a new marketing campaign to appeal to that segment.
Another method is to set specific goals and metrics to track progress. For example, if you’ve identified a weakness in your customer service, you may aim to improve your customer satisfaction ratings by a certain percentage within a specific timeframe.
It’s also important to allocate resources and assign responsibilities to implement the action plan effectively. This includes assigning tasks to specific team members, determining the budget required, and establishing timelines for each step of the plan.
A report by Forbes emphasises the importance of having a concrete action plan, stating, “The key to success in competitive analysis is to turn insights into action.” By creating a detailed action plan, you can ensure that the insights gained from the competitive analysis are used to drive tangible results and improvements to your business.
The Importance of Regular Competitive Analysis
Competitive analysis is not a one-time event but a continuous process that should be conducted regularly. The market constantly changes, and new competitors and trends can emerge at any time. Regular competitive analysis can help businesses stay ahead and adapt their strategy to changing market conditions.
One way to stay on top of the competition is to set up a system for continuously monitoring and analysing your competitors. This includes tracking their pricing strategy, product offerings, marketing campaigns, and customer feedback. By monitoring your competitors, you can identify changes in the market and adjust your strategy accordingly.
Regular competitive analysis also helps businesses identify potential threats and opportunities in the market. For example, if a new competitor enters the market, regular analysis can help you identify its strengths and weaknesses and adjust your strategy to compete effectively.
Additionally, regular competitive analysis can help businesses identify areas to improve their strategy. By analysing your competitors’ strengths, you can identify areas where you may fall short and adjust your strategy accordingly.
A Real-Life Example of Competitive Analysis
Let’s take a look at a real-life example of how competitive analysis can help brands improve their market position:
Airbnb and Hotels
Airbnb and hotels are two accommodation options for travellers. Airbnb, founded in 2008, offers an online platform for people to rent out their homes, apartments, and other spaces to travellers. On the other hand, hotels offer traditional accommodation in a dedicated facility with various amenities and services.
SWOT Analysis of Airbnb
Strengths:
Unique experiences: Airbnb offers unique and authentic experiences for travellers by allowing them to stay in local homes and neighbourhoods.
Low prices: Airbnb offers lower prices than traditional hotels, making it an attractive option for budget-conscious travellers.
Innovative technology: Airbnb uses innovative technology, such as its search algorithm and messaging system, to enhance the customer experience.
Weaknesses:
Quality control: Airbnb’s reliance on individual hosts can lead to inconsistent quality and standards across its listings.
Legal and regulatory challenges: Airbnb has faced legal and regulatory challenges in several cities, which can limit its growth opportunities.
Limited services: Airbnb offers limited services compared to hotels, such as room service and housekeeping.
Opportunities:
Expansion into new markets: Airbnb can expand its offerings to include new types of accommodations, such as boutique hotels or bed and breakfasts.
Partnerships with tourism boards: Airbnb can partner with tourism boards to promote local tourism and offer unique experiences.
Personalisation: Airbnb can use data and technology to personalise its offerings and customer recommendations.
Threats:
Competition from traditional hotels: Traditional hotels are increasing their focus on offering unique and authentic experiences to compete with Airbnb.
Safety concerns: Safety concerns like theft and vandalism can impact the customer experience and damage Airbnb’s reputation.
Economic downturns: Economic downturns can impact travel and tourism, impacting Airbnb’s business.
SWOT Analysis of Hotels:
Strengths:
Established brand reputation: Hotels have a well-established brand reputation and are a trusted accommodation option for travellers.
Wide range of services and amenities: Hotels offer a wide range of services and amenities, such as room service and housekeeping, to enhance the customer experience.
Consistent quality: Hotels offer consistent quality and standards across their properties.
Weaknesses:
High prices: Hotels can be more expensive than other accommodation options, making them less attractive to budget-conscious travellers.
Lack of personalisation: Hotels can be less personalised than Airbnb, as they offer a more standardised experience.
Limited local experiences: Hotels can lack the unique local experiences that Airbnb offers, as they are often located in tourist areas.
Opportunities:
Focus on unique experiences: Hotels can offer unique and authentic experiences to compete with Airbnb.
Partnerships with local businesses: Hotels can partner with local companies to offer unique experiences and enhance the customer experience.
Personalisation: Hotels can use data and technology to personalise their offerings and customer recommendations.
Threats:
Competition from Airbnb: Airbnb’s unique offerings and lower prices can attract customers away from traditional hotels.
Economic downturns: Economic downturns can impact travel and tourism, impacting hotels’ business.
Safety concerns: Safety concerns, such as crime and terrorism, can impact the customer experience and damage hotels’ reputations.
When Airbnb entered the market, it disrupted the traditional hotel industry. Initially, hotels underestimated Airbnb’s impact and did not conduct a competitive analysis to understand the company’s strategy.
However, as Airbnb’s popularity grew, hotels began recognising the threat and adapted their strategy to compete. Hotels started to offer more unique and local experiences to attract customers, a strategy that Airbnb had successfully implemented. Additionally, hotels invested in technology to enhance the guest experience and offer more personalised service.
Some hotels also started to offer short-term rentals and home-sharing services to compete with Airbnb directly.
One example of a hotel that successfully adapted its strategy to compete with Airbnb is Marriott International. In 2019, Marriott launched its Homes & Villas program, offering high-end home rentals in more than 100 destinations worldwide. By providing unique and local experiences, personalised service, and home-like amenities, Marriott was able to attract customers who might otherwise have booked with Airbnb.
Overall, the success of Airbnb has demonstrated the importance of conducting competitive analysis and staying up-to-date on industry trends and developments. By understanding the competition and adapting their strategy accordingly, brands can stay ahead of the curve and drive business success.
Lessons Learned
The case study of Airbnb vs. hotels provides valuable lessons for businesses in any industry. Here are a few key takeaways:
Disruption can come from unexpected sources: Hotels initially underestimated Airbnb’s impact and did not conduct competitive analysis to understand the company’s strategy. As a result, they were caught off guard when Airbnb disrupted the industry.
Adaptability is key: Hotels eventually adapted their strategy to compete with Airbnb, offering more unique and local experiences to attract customers. This shows the importance of adaptability and willingness to change your strategy when faced with new competitors or market conditions.
Customer preferences are changing: Airbnb’s success is partly due to customers’ changing preferences, who are increasingly seeking unique and authentic experiences. This highlights the importance of understanding your customers’ preferences and adapting your strategy to meet their needs.
Innovation can create new opportunities: Airbnb’s success has created new opportunities for other businesses, such as property management companies specialising in short-term rentals. This shows the potential for innovation to develop new business models and opportunities in any industry.
In conclusion, the case study of Airbnb vs. hotels highlights the importance of conducting competitive analysis, being adaptable, understanding customers’ preferences, and embracing innovation. By applying these lessons to your brand, you can stay ahead of the competition and drive business success.
Examples of Successful Competitive Analysis
Competitive analysis is a powerful tool that can help businesses gain a competitive advantage in their industry. Here are a few examples of companies that have successfully used competitive analysis to improve their strategy and gain a stronger market position:
Coca-Cola vs. Pepsi: For decades, Coca-Cola and Pepsi have been locked in fierce competition for market share. In the early 2000s, Coca-Cola conducted a comprehensive competitive analysis of Pepsi, analysing everything from its marketing campaigns to its pricing strategy. As a result, Coca-Cola developed a new marketing campaign emphasising the brand’s history and nostalgia, which helped them gain a stronger foothold in the market.
Netflix vs. Blockbuster: In the early 2000s, Netflix was a relatively unknown startup that offered a subscription-based DVD rental service. At the time, Blockbuster was the dominant player in the video rental market. However, Netflix conducted a thorough competitive analysis of Blockbuster, identifying weaknesses in its strategy and opportunities for growth. Netflix then shifted its focus to streaming video, which ultimately allowed them to overtake Blockbuster and become the dominant player in the market.
Amazon vs. Barnes & Noble: In the 1990s, Barnes & Noble was the largest bookstore chain in the United States. However, with the rise of e-commerce, Amazon quickly emerged as a formidable competitor. Amazon conducted a thorough competitive analysis of Barnes & Noble, identifying opportunities to improve their online shopping experience and offer a wider selection of products. As a result, Amazon was able to outmanoeuvre Barnes & Noble and become the dominant player in the book industry.
Tools and Resources for Conducting Competitive Analysis
Conducting competitive analysis can be a complex and time-consuming process. Fortunately, many tools and resources are available to help brands conduct competitive analysis effectively. Here are a few examples:
Competitive analysis templates: Many business and marketing websites offer free or paid templates for conducting competitive analysis. These templates provide a framework for identifying and analysing your competitors’ strengths and weaknesses and opportunities and threats in the market.
Industry reports: Industry reports provide valuable data and insights into the competitive landscape of a particular industry. These reports may include information on market share, pricing trends, consumer preferences, and more. They can be purchased from market research firms or industry associations.
Online tools: Many online tools are available to help businesses conduct competitive analysis, such as SEMrush for analysing online advertising and search engine rankings and SimilarWeb for analysing website traffic and engagement.
Social media analytics: Social media platforms offer valuable data on customer sentiment, engagement, and trends. You can gain insights into your marketing strategy and customer preferences by analysing your competitors’ social media presence.
Market Research Agencies: Hiring an expert market research agency can be a valuable investment for businesses that lack the expertise or resources to conduct competitive analysis in-house. Agencies can provide a deep understanding of your industry and competitors and insights into emerging trends and opportunities.
Tips for Staying Ahead of the Competition
Conducting competitive analysis is an essential part of developing a successful business strategy. However, it’s not enough to simply analyse your competitors – you also need to use the insights gained to stay ahead of the competition. Here are a few tips for staying ahead:
Stay up-to-date on industry trends: Keeping up with the latest trends and developments in your industry can help you anticipate changes in the market and stay ahead of the competition. Subscribe to industry newsletters, attend conferences and trade shows, and follow industry leaders on social media to stay informed.
Focus on customer needs: While it’s essential to understand your competitors’ strategies, it’s even more critical to understand your customers’ needs and preferences. Conducting market research and gathering customer feedback can help you tailor your products and services to meet their needs and gain a competitive edge.
Invest in innovation: Innovation can help you differentiate your business and stay ahead of the competition. Invest in research and development, experiment with new technologies and business models, and encourage a culture of innovation within your organisation.
Build strong partnerships: Building strong partnerships with other businesses can help you expand your reach and offer more value to your customers. Look for opportunities to partner with companies that complement your own, such as suppliers, distributors, or complementary service providers.
Embrace change: Finally, it’s essential to be flexible and adaptable in the face of change. The business landscape is constantly evolving, and it’s important to be willing to pivot your strategy when necessary to stay ahead of the competition.
Challenges and Limitations of Competitive Analysis
While competitive analysis is a valuable tool for businesses to evaluate their position in the market and gain a competitive advantage, it’s essential to approach this process with a critical and realistic perspective. Here are a few challenges and limitations of competitive analysis:
Difficulty obtaining accurate data: Competitors may not always disclose accurate or complete information about their strategy or performance. This can make it challenging to get accurate data and insights about their strengths and weaknesses.
Risk of focusing too much on competitors: Focusing too much on competitors can sometimes lead businesses to overlook the needs and preferences of their customers. It’s essential to strike a balance between understanding your competitors’ strategies and staying focused on your value proposition.
Limitations of industry reports: While they can provide valuable data and insights into the competitive landscape, industry reports may not always be up-to-date or relevant to your business. It’s vital to supplement industry reports with independent research and analysis.
Rapidly changing market conditions: The business landscape constantly evolves, and competitors may adopt new strategies or technologies that disrupt the market. It’s important to stay agile and adaptable in the face of change and to update your competitive analysis to reflect new developments regularly.
Risk of overreliance on competitive analysis: Competitive analysis is just one tool in a business’s arsenal. It’s crucial to supplement competitive analysis with other types of research, such as customer feedback and market research, to gain a complete picture of the market and stay ahead of the competition.
Future Trends in Competitive Analysis
As the business landscape evolves, new trends and technologies change how businesses conduct competitive analysis. Here are a few emerging trends to watch:
Artificial intelligence: Artificial intelligence (AI) is revolutionising many aspects of business, including competitive analysis. AI-powered tools can analyse vast amounts of data and identify patterns and trends that human analysts might miss. They can also provide real-time insights into competitors’ pricing strategies, marketing campaigns, and more.
Social media analytics: Social media platforms offer a wealth of data on customer sentiment, engagement, and trends. By analysing this data, businesses can gain insights into their competitors’ marketing strategies and customer preferences. Social media analytics tools are becoming increasingly sophisticated, making it easier for companies to conduct competitive analyses on these platforms.
Predictive analytics: Predictive analytics uses data, statistical algorithms, and machine learning to identify future outcomes based on historical data. This technology is becoming increasingly important in competitive analysis, allowing businesses to anticipate changes in the market and stay ahead of the competition.
Big data analytics: The amount of data available to businesses is growing exponentially, and big data analytics is becoming increasingly important in competitive analysis. Big data analytics tools can help companies to identify patterns and trends in large data sets, providing valuable insights into competitors’ strategies and market trends.
Collaboration and knowledge sharing: Finally, business collaboration and knowledge sharing are becoming increasingly important in competitive analysis. By sharing information and insights with other businesses in their industry, companies can gain a more complete picture of the market and identify opportunities for growth and innovation.
The Role of Market Research in Competitive Analysis
Market research plays a critical role in competitive analysis. By gathering data on customer needs and preferences, market trends, and competitor strategies, businesses can gain valuable insights into the competitive landscape and develop a strategy that sets them apart. Here are a few reasons why outsourcing market research to an external agency can be a good idea:
Access to expertise and resources: Market research agencies specialise in gathering and analysing data and have access to sophisticated tools and resources for conducting research. By outsourcing market research to an external agency, businesses can tap into this expertise and gain a complete picture of the market.
Objectivity and impartiality: Market research agencies are independent from the businesses they serve, which allows them to provide unbiased and objective insights into the market. This can be especially valuable in competitive analysis, where an objective perspective is critical for identifying strengths and weaknesses in the market.
Cost-effectiveness: Conducting market research in-house can be expensive, especially for small businesses. Outsourcing market research to an external agency can be cost-effective, as agencies can provide access to tools and expertise that might otherwise be prohibitively expensive.
Time-saving: Market research can be time-consuming, especially for businesses with limited resources. Outsourcing market research to an external agency frees up time and resources to focus on other aspects of their strategy.
Flexibility: Market research agencies can offer various research services, from online surveys to focus groups to ethnographic research. This allows businesses to choose the best research methods for their needs and budget.
Outsourcing market research to an external agency can be a good idea for brands looking to conduct competitive analysis. By tapping into market research agencies’ expertise, resources, and objectivity, businesses can gain valuable insights into the market and develop a strategy that sets them apart from the competition.
Key Takeaways
Competitive analysis is a valuable tool for brands seeking a competitive advantage in their industry. By identifying their competitors’ strengths and weaknesses, opportunities, and threats in the market, businesses can develop a strategy that sets them apart from the competition. However, it’s essential to approach competitive analysis with a critical and realistic perspective and use the insights gained to inform your strategy and decision-making effectively.
Competitive analysis is valuable for gaining a competitive advantage in your industry.
It’s essential to balance understanding your competitors’ strategies and staying focused on your value proposition.
Market research is critical in competitive analysis, and outsourcing to an external agency can be a cost-effective and efficient solution.
Businesses should stay up-to-date on emerging trends and technologies in competitive analysis, such as artificial intelligence and social media analytics.
Finally, businesses should be flexible and adaptable in the face of change and regularly update their competitive analysis to reflect new developments in the market.
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