In market research, the collection and use of data raise several ethical considerations, such as obtaining informed consent, protecting the privacy and confidentiality of participants, avoiding deceptive practices, and ensuring data accuracy. 

Ethical guidelines, such as the International Chamber of Commerce’s ICC/ESOMAR International Code on Market and Social Research, provide a framework for conducting market research responsibly and respectfully. Additionally, industry-specific regulations, such as the General Data Protection Regulation (GDPR) in the European Union, further regulate the collection and use of personal data. Brands and their market research teams must be aware of these ethical considerations and guidelines to ensure the validity and credibility of their research findings and maintain the trust of their participants.

The Importance of Ethical Data Collection

The ethics of data collection play a crucial role in the credibility and validity of market research findings. When data is collected ethically, participants can trust that their personal information is handled responsibly and securely. 

This trust is essential for accurate research results, as participants are more likely to provide honest and complete answers when they feel their privacy and confidentiality are protected.

“The right to privacy is a fundamental human right, essential for the protection of human dignity and autonomy.” – Justice Michael Kirby.

Additionally, ethical data collection practices help to maintain the reputation and credibility of the market research industry. Deceptive or unethical practices can damage the reputation of both the individual researcher and the industry as a whole, leading to a loss of trust from participants, clients, and stakeholders.

It is also a legal obligation for researchers to adhere to ethical standards and regulations, such as the GDPR. Failing to comply with these regulations can result in significant fines and legal consequences, damaging the reputation of the research company and potentially impacting its ability to conduct research in the future.

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Data Privacy Laws Around the World

Data privacy laws vary by country, but here is an overview of some of the most notable data privacy laws in different regions worldwide.

It is important to note that these laws are subject to change and that organisations should stay informed about their regions’ latest data privacy laws and regulations.

UK: The General Data Protection Regulation (GDPR) applies to organisations operating in the EU, including the UK. The GDPR requires organisations to obtain explicit consent from individuals before collecting and processing their personal data.

Europe: The General Data Protection Regulation (GDPR) applies to organisations operating in the EU. It sets out strict rules for collecting and processing personal data, including the right to erasure and data portability.

USA: The United States does not have a comprehensive federal data privacy law, but some states have enacted their own privacy laws, such as the California Consumer Privacy Act.

Canada: The Personal Information Protection and Electronic Documents Act (PIPEDA) governs the collection, use, and disclosure of personal data in Canada. Organisations must obtain explicit consent before collecting personal data and must protect the privacy of the data they collect.

Thailand: The Personal Data Protection Act (PDPA) became effective in May 2020 and governed the collection, use, and disclosure of personal data in Thailand. Organisations must obtain explicit consent before collecting personal data and must protect the privacy of the data they collect.

Philippines: The Data Privacy Act of 2012 governs the collection, use, and disclosure of personal data in the Philippines. Organisations must obtain explicit consent before collecting personal data and must protect the privacy of the data they collect.

Japan: The Act on the Protection of Personal Information governs the collection, use, and disclosure of personal data in Japan. Organisations must obtain explicit consent before collecting personal data and must protect the privacy of the data they collect.

Indonesia: The Personal Data Protection Law governs the collection, use, and disclosure of personal data in Indonesia. Organisations must obtain explicit consent before collecting personal data and must protect the privacy of the data they collect.

China: The Cybersecurity Law of the People’s Republic of China governs the collection, use, and disclosure of personal data in China. Organisations must obtain explicit consent before collecting personal data and must protect the privacy of the data they collect.

Singapore: The Personal Data Protection Act (PDPA) governs the collection, use, and disclosure of personal data in Singapore. Organisations must obtain explicit consent before collecting personal data and must protect the privacy of the data they collect.

India: The Personal Data Protection Bill, 2019, governs the collection, use, and disclosure of personal data in India. The bill requires organisations to obtain explicit consent before collecting personal data and to protect the privacy of the data they collect.

Vietnam: The Personal Data Protection Law governs the collection, use, and disclosure of personal data in Vietnam. Organisations must obtain explicit consent before collecting personal data and must protect the privacy of the data they collect.

Examples of Brands Fined for Violating Data Privacy

These are just a few examples of the many brands that have faced fines for violating data privacy laws. It is essential for companies to take data privacy seriously and to comply with the relevant laws and regulations to avoid similar consequences.

  1. Google was fined €50 million by the French data protection authority (CNIL) in January 2019 for violating the General Data Protection Regulation (GDPR).
  2. Facebook was fined $5 billion by the Federal Trade Commission (FTC) in July 2019 for violating its users’ privacy rights.
  3. Marriott International was fined £18.4 million by the Information Commissioner’s Office (ICO) in July 2019 for a data breach affecting approximately 339 million guests.
  4. British Airways was fined £20 million by the ICO in July 2019 for a data breach affecting approximately 500,000 customers.
  5. Equifax was fined £500,000 by the ICO in September 2018 for a data breach affecting approximately 15 million UK citizens.

The Ethics of Data Privacy

Data privacy is a critical aspect of ethical data collection in market research. The personal information of participants must be protected and kept confidential to maintain their trust in the research process and to prevent potential harm or abuse of their data.

One of the key ethical considerations in protecting consumer data privacy is obtaining informed consent. Participants must be fully informed about how their data will be collected, used, and stored, and they must give explicit consent for their information to be used in the research. This includes informing participants who will have access to their data, for what purposes it will be used, and for how long it will be stored.

“Data is the new oil, but privacy is the new gasoline.” – Unknown.

Another important consideration is data security. Market researchers must implement appropriate measures to secure the collected data, such as encryption and secure storage solutions, to prevent unauthorised access and to protect participants’ information from theft or breaches.

It is essential for market researchers to be transparent and honest about their data collection practices. Deceptive or misleading practices, such as collecting data without obtaining proper consent or using data for purposes outside of what was initially disclosed, can severely damage the trust of participants and harm the reputation of the market research industry.

The concept of data privacy has been a concern for individuals and organisations for many decades. Still, it has become increasingly relevant in recent years with the rapid growth of technology and the increasing amount of personal data collected and stored by organisations. Here is a timeline of some key events related to data privacy and notable data breaches by year:

  • 1970s: The first privacy laws, such as the US Privacy Act of 1974, are enacted in response to government data collection and storage concerns.
  • 1980s: The first computer viruses were discovered, and the threat of data breaches became more prominent.
  • 1990s: The rise of the internet and the increasing use of personal computers leads to concerns about online data privacy.
  • 2000s: The growth of social media and the increasing amount of personal data collected by organisations leads to increased privacy concerns.
  • 2005: The first large-scale data breach, involving the theft of millions of credit card numbers by one of the largest credit card processors in the United States, CardSystems Solutions, is reported. The breach was one of the first large-scale data breaches to receive widespread media attention and raised concerns about the security of personal data stored by organisations. The breach resulted in the loss of credit card information for 40 million individuals and prompted a number of major credit card companies to reissue their customers’ credit cards. The breach also led to increased scrutiny of data security practices by organisations and a call for stronger data privacy laws to protect consumers.
  • 2013: The first high-profile data breach involving the unauthorised access of personal data, such as names, addresses, and social security numbers, is reported. Hackers stole 40 million credit card numbers and 70 million other pieces of information, such as names, addresses, and phone numbers, from the retailer’s database. The breach was one of the largest data breaches to date and resulted in widespread media coverage and concern about the security of personal information stored by organisations. The breach also increased scrutiny of data security practices and calls for more robust data privacy laws to better protect consumers. This event highlighted the need for organisations to take data privacy and security seriously, implement strong security measures, and regularly review and update their practices to stay ahead of evolving threats.
  • 2018: The European Union’s General Data Protection Regulation (GDPR) goes into effect, setting new standards for data privacy and security in Europe.
  • 2019: The Capital One data breach, involving the theft of personal data of over 100 million individuals, is reported.
  • 2020: The Zoom video conferencing platform becomes widely used due to the COVID-19 pandemic, leading to concerns about the security of personal data being transmitted over the platform.

The Ethics of Data Use

The use of collected data is just as important as the collection process in terms of ethical considerations. Market researchers are responsible for using the data they collect in a manner that is respectful, non-discriminatory, and in line with the initial purpose for which it was collected.

One key consideration is avoiding discriminatory practices. Market research data must not be used to make decisions that unfairly impact or discriminate against particular groups based on race, gender, religion, or sexual orientation. Researchers must also ensure that their findings are not used to perpetuate negative stereotypes or to support biased viewpoints.

“Ethics is knowing the difference between what you have a right to do and what is right to do.” – Potter Stewart.

Another important consideration is maintaining the confidentiality of participants’ information. Researchers must not use collected data in a manner that violates participants’ privacy, such as by sharing it with third parties without proper consent. The data must be used only for the purposes for which it was collected and must be kept confidential to the extent required by law or ethical guidelines.

The Importance of Consent

Obtaining informed consent from consumers is crucial to ethical data collection in market research. It is essential for market researchers to respect the privacy rights of participants and to ensure that they fully understand how their data will be used and what they agree to when they provide it.

Informed consent means that participants clearly understand the purpose of the research, how their data will be collected, used, and stored, and the consequences of participating or not participating in the research. Participants must also be allowed to opt-out of the research or withdraw their consent at any time.

When participants provide their informed consent, it demonstrates their trust in the market research process and their willingness to participate. This trust is essential for accurate research results, as participants are more likely to provide honest and complete answers when they feel their privacy and confidentiality are protected.

However, obtaining informed consent also protects the rights of participants and ensures that their data is not being collected or used without their knowledge or permission. Market researchers must be transparent and honest about data collection and use practices to build trust and credibility with their participants.

Data Security and Protection

Data security and protection are crucial components of ethical data collection in market research. Market researchers are responsible for implementing appropriate measures to secure the collected data and prevent unauthorised access, theft, or breaches.

One key consideration is using secure storage solutions, such as encrypted databases, to store collected data. This helps to prevent unauthorised access to the data and to ensure that it is protected from potential breaches.

Another critical consideration is controlling access to the collected data. Market researchers must limit access to the data to only those who need it. They must have appropriate security measures, such as password protection, to prevent unauthorised access.

Additionally, market researchers must have procedures in place to detect and respond to data breaches if they occur. This includes regular monitoring of the security of collected data and having a plan to quickly address any breaches and take appropriate action to prevent future violations.

The Role of Industry Regulations

Industry regulations play a significant role in shaping the ethics of data collection in market research. Regulations such as the General Data Protection Regulation (GDPR) in the European Union and similar laws in other regions set standards for the collection, use, and storage of personal data and provide guidelines for protecting the privacy rights of individuals.

Market researchers must comply with these regulations and follow the established guidelines to ensure that their data collection practices are ethical and in line with the law. This includes obtaining informed consent from participants, protecting the privacy of collected data, and ensuring that data is not used in a discriminatory manner.

Industry regulations also set data security and protection standards, requiring market researchers to implement appropriate measures to secure collected data and prevent breaches. These regulations also give individuals the right to access their personal data and to request that it be deleted or corrected if it is inaccurate.

Ethical Considerations in the Use of Big Data

The use of big data in market research presents several ethical considerations, including data bias and algorithmic transparency. Market researchers must be aware of these considerations and take steps to ensure that their use of big data is ethical and in line with industry regulations.

Data bias refers to the inherent biases that exist in data sets, which can result in inaccurate or skewed results if not properly addressed. For example, suppose a data set used in market research predominantly consists of data from one demographic group. In that case, it may not accurately represent the experiences or opinions of other groups.

To address data bias, market researchers must be aware of their data sources and take steps to ensure that their data sets are representative and diverse. This may include sourcing data from multiple sources and using techniques such as oversampling to increase the representation of underrepresented groups.

Algorithmic transparency is another important consideration in using big data in market research. Algorithms used to analyze data can contain biases and make decisions that are not transparent or easily understood. To address this issue, market researchers must ensure that the algorithms they use are transparent and can be audited and that the decisions made by algorithms are easily explainable and free from bias.

Best Practices for Ethical Data Collection

Best practices for ethical data collection in market research include:

  • Having a clear privacy policy.
  • Obtaining informed consent.
  • Implementing appropriate data security measures.

By following these best practices, market researchers can ensure that their data collection practices are ethical, respectful of participants’ privacy rights, and in line with industry regulations.

Having a clear privacy policy is essential for ethical data collection. This policy should outline the type of data that will be collected, how it will be used, and who will have access to it. Participants should be able to understand the privacy policy easily and have the option to opt-out of data collection if they choose.

Obtaining informed consent is another key best practice for ethical data collection. Market researchers must inform participants about the data that will be collected and how it will be used and obtain their explicit consent before collecting any data. Participants should also have the option to withdraw their consent at any time.

Data security is also essential for ethical data collection. Market researchers must implement appropriate measures to secure collected data, such as encryption and secure storage, and take steps to prevent breaches and unauthorised access.

Checklist of Best Practices for Ethical Data Collection

By following this checklist of best practices for ethical data collection, market researchers can ensure that their data collection practices are responsible, honest, and in line with industry standards.

  1. Develop a clear privacy policy: Outline the data collection type, how it will be used, and who will have access to it.
  2. Obtain informed consent: Inform participants about the data that will be collected and how it will be used, and obtain their explicit consent before collecting any data.
  3. Implement data security measures: Encrypt collected data and store it securely to prevent breaches and unauthorised access.
  4. Respect the right to privacy: Allow participants to opt-out of data collection and allow them to withdraw their consent at any time.
  5. Avoid discriminatory practices: Ensure that collected data is used ethically and avoid discriminatory practices.
  6. Comply with industry regulations: Stay informed about industry regulations, such as GDPR, and ensure that your data collection practices align with these regulations.
  7. Consider the ethics of big data: Be aware of ethical considerations related to the use of big data, such as data bias and algorithmic transparency.
  8. Maintain transparency: Be transparent about your data collection practices and clearly communicate your privacy policy to participants.
  9. Conduct regular review: Regularly review your data collection practices to ensure that they are ethical and in line with industry standards.
  10. Educate yourself and your team: Stay informed about best practices for ethical data collection and educate yourself and your team on the importance of responsible data practices.

Using Market Research Agencies and Ethical Data Collection

By outsourcing market research to a trusted third-party firm, brands can have peace of mind knowing that experts in the field are handling their data collection practices and that appropriate measures are in place to protect consumer privacy. 

However, it is still crucial for brands to thoroughly vet and monitor the practices of their market research partners to ensure they meet their privacy and security standards.

Using a third-party market research firm can provide several benefits for brands regarding data privacy in market research. Some of these benefits include:

  1. Expertise: Market research firms often have specialised knowledge and experience in data privacy and security, which can help ensure that data collection and storage practices comply with applicable laws and regulations.
  2. Resources: Market research firms often have the resources and technology to implement robust security measures and respond to data breaches.
  3. Independence: Using a third-party market research firm can provide a level of independence and objectivity in data collection and analysis, which can help mitigate concerns about bias and privacy violations.
  4. Reputation: Market research firms have a reputation to maintain and are motivated to ensure that data privacy and security practices are of the highest standard.

Summary

The ethics of data collection in market research is an important and complex topic that must be carefully considered. By understanding the importance of ethical data collection, market researchers can ensure that they are protecting consumer data privacy, using collected data in an ethical manner, obtaining informed consent, and implementing appropriate data security measures.

The ethics of data collection is not only a matter of legal compliance but also a matter of maintaining the integrity of market research and respecting the rights of consumers. 

By following best practices for ethical data collection and staying informed about industry regulations and trends, market researchers can ensure that their data collection practices are responsible, honest, and in line with industry standards.

In summary, understanding the ethics of data collection in market research is essential for protecting consumer data privacy, maintaining the integrity of market research, and ensuring responsible data practices. Market researchers must be aware of the importance of ethical data collection and ensure that their data collection practices align with industry standards and best practices.

Customer journey mapping is the process of creating a visual representation of the steps and touchpoints a customer goes through in their interaction with a company. It aims to understand the customer’s needs, emotions, and motivations at each stage of the journey. 

The importance of customer journey mapping lies in its ability to improve the customer experience by identifying pain points and opportunities for optimization. By mapping the journey, companies can comprehensively understand the customer’s perspective and use this information to enhance the overall experience, increase customer satisfaction, and drive loyalty. 

Customer journey mapping helps companies to align their operations and messaging with customer expectations, leading to more efficient and effective communication and improved customer experiences.

“The customer journey map is a tool to help you understand what your customers are thinking and feeling as they engage with your company.” – Jeannie Walters, customer experience consultant and author of “The Customer Journey: Mapping the Future of Your Brand.”

The concept of customer journey mapping has its roots in the fields of marketing and customer experience design. It is a relatively recent development, with the first recorded use of the term dating back to the early 2000s. However, the practice of mapping customer interactions with a company can be traced back to the early days of market research and customer satisfaction studies.

Other names, including customer experience mapping, customer journey design, and customer journey visualization, sometimes refer to customer journey mapping. 

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Regardless of the name, the underlying process and goals remain the same: to create a comprehensive understanding of the customer’s experiences and use this information to improve the customer experience.

It has become an increasingly important tool for companies looking to improve the customer experience and is widely recognized as a valuable method for understanding and optimizing customer interactions.

Signs a Brand Would Benefit from Customer Journey Mapping

  1. Decreased customer satisfaction: If a brand is experiencing a decrease in customer satisfaction or loyalty, it may be a sign that the customer journey needs to be reevaluated.
  2. Increased customer complaints: An increase in customer complaints can indicate pain points in the customer journey that need to be addressed.
  3. Decreased conversion rates: A decrease in conversion rates can indicate issues in the customer journey that prevent customers from making a purchase.
  4. Increased churn: An increase in customer churn can indicate that the customer experience is not meeting expectations and needs to be improved.

Touchpoints and Pain points

The customer journey refers to a customer’s experiences with a company, from initial brand awareness to post-purchase evaluation. Understanding the customer journey is critical for companies looking to improve the customer experience and increase customer satisfaction.

The key components of the customer journey include touchpoints and pain points. Touchpoints are the moments of interaction between a customer and a company, such as a visit to a website, a phone call, or an in-store purchase. 

Pain points are the parts of the customer journey that cause frustration or dissatisfaction. These can include long wait times, confusing navigation on a website, or poor product quality.

Understanding touchpoints and pain points are essential to map the customer journey effectively. Touchpoints provide insights into the customer’s motivations and needs at each stage of the journey, while pain points indicate areas for improvement. By identifying and addressing pain points, companies can create a more seamless and enjoyable customer experience.

Here’s a fictional example of a customer journey map for a company that sells luxury skincare products:

Industry: Luxury Skincare Marketing Personas:

  • Persona 1: “The Health-Conscious Beauty Enthusiast” – A young professional who values natural and organic products and prioritizes self-care.
  • Persona 2: “The Anti-Aging Advocate” – A mature individual who is looking for skincare products that address ageing and wrinkling.

The Customer Journey:

  1. Awareness: The customer becomes aware of the company through social media, influencer partnerships, and recommendations from friends.
  2. Consideration: The customer starts researching the company’s products and reviews online. They may also attend a skincare event or visit a store to try the products.
  3. Purchase: The customer purchases online or in-store and receives personalized recommendations based on their skin type and concerns.
  4. Delivery: The customer receives the products and begins using them, receiving regular follow-up emails and phone calls from the company to ensure satisfaction.
  5. Loyalty: The customer continues using the products and becomes loyal, referring friends and family to the company.
  6. Advocacy: The customer may become a brand advocate, sharing positive reviews and experiences online and attending events on behalf of the company.

Pain Points:

  • Difficulty finding the right products for their skin type and concerns
  • Lack of personal attention and support during the purchasing process
  • Lack of clear instructions and usage guidelines
  • Inconsistent results with the products

Key Touchpoints:

  • Social media and influencer partnerships
  • In-store events and product demonstrations
  • Personalized recommendations and follow-up calls
  • Clear instructions and usage guidelines

The Benefits of Customer Journey Mapping

One of the key benefits of customer journey mapping is increased customer satisfaction. By identifying and addressing pain points, companies can create a more seamless and enjoyable customer experience. This can lead to higher levels of customer satisfaction and improved brand loyalty. Customers with a positive experience with a company are more likely to return and recommend the brand to others.

Another benefit of customer journey mapping is improved brand loyalty. By understanding the customer’s experiences, companies can align their operations and messaging with customer expectations. This can lead to more efficient and effective communication and a stronger emotional connection between the customer and the brand. This, in turn, can drive customer loyalty and encourage repeat business.

The benefits of customer journey mapping are evident, from increased customer satisfaction and improved brand loyalty to more efficient operations and better communication. By mapping the customer journey, companies can gain a comprehensive understanding of the customer’s experiences and use this information to drive improvements and create a more positive customer experience.

Gathering Customer Feedback

Gathering customer feedback is an essential component of the customer journey mapping process. It provides valuable insights into the customer’s experiences and helps companies understand their needs, motivations, and pain points. Customer feedback is a powerful tool for informing the customer journey mapping process and driving improvements in the customer experience.

There are various methods for gathering customer feedback, including surveys, focus groups, and online reviews. Each method has its strengths and weaknesses, and the best approach will depend on the specific goals and needs of the company. For example, online reviews can provide a wealth of information about customer experiences, while focus groups can offer more in-depth and personalized insights.

It is important to use customer feedback to inform the customer journey mapping process. Companies can use this information to identify pain points and opportunities for improvement, as well as to gain a deeper understanding of the customer’s needs and motivations. By incorporating customer feedback into the customer journey mapping process, companies can create a more accurate and comprehensive representation of the customer’s experiences.

By using customer feedback to inform the customer journey mapping process, companies can create a more accurate and comprehensive representation of the customer’s experiences and drive improvements in the customer experience.

The Importance of Empathy in Customer Journey Mapping

Empathy is a critical component of customer journey mapping, as it allows companies to understand the customer’s experiences from their perspective. Empathy helps companies to understand the customer’s needs, motivations, and pain points and to create a more accurate representation of the customer journey.

By incorporating empathy into the customer journey mapping process, companies can understand the customer’s experiences more deeply. This can lead to more accurate and comprehensive mapping and improved customer experience design. Companies can use this information to identify pain points and opportunities for improvement and create a more seamless and enjoyable customer experience.

Empathy can also help companies to build stronger emotional connections with their customers. By understanding the customer’s experiences and needs, companies can align their operations and messaging with customer expectations. This can lead to more efficient and effective communication, improved brand loyalty, and increased customer satisfaction.

Brands that use Customer Journey Mapping 

These are just a few examples of well-known brands that have used customer journey mapping to improve their customer experience and drive business success. Using this approach, these brands have identified areas for improvement, created more meaningful and memorable experiences for their customers, and ultimately differentiated themselves from their competitors.

  • Starbucks: Starbucks used customer journey mapping to understand its customers’ experiences with its mobile ordering app. By mapping the various touchpoints, the company could identify areas for improvement, such as reducing wait times and improving the ordering process. As a result, Starbucks improved the customer experience and increased customer satisfaction.
  • Amazon: Amazon is known for its exceptional customer experience, and customer journey mapping has been a key component of this. The company maps the customer journey across multiple touchpoints, including its website, delivery process, and customer service. By using customer journey mapping, Amazon is able to identify areas for improvement, such as streamlining the checkout process and improving delivery times.
  • Nike: Nike used customer journey mapping to understand its customers’ experiences in China. By mapping the customer journey, Nike identified areas for improvement, such as simplifying the online ordering process and improving product availability. These insights helped Nike to create a more seamless and personalized customer experience, increasing customer satisfaction and loyalty.
  • Apple: Apple has a reputation for delivering an exceptional customer experience, and customer journey mapping has been a key component of this. By mapping the customer journey across multiple touchpoints, such as its retail stores and online support, Apple is able to identify areas for improvement, such as streamlining the product return process and improving the in-store experience.

Creating a Customer Journey Map

Creating a customer journey map is crucial in improving the customer experience. By visualizing the customer’s experiences, companies can gain a deep understanding of the customer’s needs, motivations, and pain points and use this information to drive improvements and create a more positive customer experience.

Here is a step-by-step guide for creating a customer journey map:

  1. Identify your customer segments: Start by identifying your key customer segments. This will help you to understand the different types of customers and their unique needs and experiences.
  2. Gather customer feedback: Use various methods to gather customer feedback, such as surveys, focus groups, and online reviews. This information will provide valuable insights into the customer’s experiences and help you to identify pain points and opportunities for improvement.
  3. Map out the customer journey: Create a visual representation of the customer’s experiences, including all key touchpoints. This can be done using various tools, such as flowcharts, diagrams, or mind maps.
  4. Identify pain points: Use the information gathered from customer feedback to identify pain points in the customer journey. These are the points in the customer’s experience where they encounter frustration, confusion, or other negative emotions.
  5. Analyze the data: Analyze the information gathered from customer feedback and the customer journey map to identify patterns and trends. This will help you to understand the customer’s needs and motivations and to create a more accurate representation of the customer journey.
  6. Drive improvements: Use the information gathered from the customer journey mapping process to drive improvements in the customer experience. Identify opportunities to streamline processes, improve communication, and address pain points, and use this information to inform your customer experience design.

The Role of Data in Customer Journey Mapping

Data plays a critical role in customer journey mapping. There are a variety of data sources that companies can use to inform their customer journey mapping. 

Some common sources of customer data include:

  • Surveys: Surveys can be used to gather customer feedback and insights into their experiences. This can include their motivations, pain points, and overall satisfaction with the customer experience.
  • Behavioural data: Behavioral data can be collected from a variety of sources, including website analytics, customer service logs, and sales data. This data can provide valuable insights into the customer’s actions and behaviours and help identify trends and patterns in the customer journey.
  • Customer feedback: Customer feedback can be collected through various channels, such as online reviews, focus groups, and customer service interactions. This information can provide valuable insights into the customer’s experiences and help to identify pain points and opportunities for improvement.

By collecting and analyzing customer data, companies can gain a deeper understanding of the customer’s experiences and use this information to improve customer experience. Data can inform your understanding of the customer journey and help create a more accurate representation of the customer’s experiences.

Implementing Changes Based on Customer Journey Mapping

Using the information gathered from the customer journey mapping process, companies can identify opportunities for process improvements and product modifications to help drive customer satisfaction and brand loyalty.

Here are some steps for implementing changes based on customer journey mapping:

  1. Prioritize changes: Based on the customer journey map and the feedback gathered, prioritize the changes that will significantly impact the customer experience. This can include process improvements, product modifications, or changes to the customer service experience.
  2. Design new processes and products: Use the insights gained from the customer journey mapping process to design new processes and products that address the customer’s pain points and meet their needs.
  3. Test and iterate: Implement the changes in a controlled environment and gather customer feedback to evaluate the impact. Use this feedback to refine the changes and make further improvements.
  4. Roll out changes: Once the changes have been tested and refined, roll out the changes to the entire customer base. Continuously monitor customer feedback to evaluate the impact of the changes and make further improvements as needed.
  5. Stay flexible: The customer journey constantly evolves, and customer needs and expectations change over time. Stay flexible, gather customer feedback, and improve the customer experience as needed.

Companies can drive customer satisfaction and improve brand loyalty by prioritizing changes, designing new processes and products, testing and iterating, and continuously monitoring customer feedback.

Best Practices for Customer Journey Mapping

While customer journey mapping can be an effective tool for improving the customer experience, it is important to follow best practices to ensure success. 

Here are some best practices for customer journey mapping:

  • Involve key stakeholders: Involve key stakeholders in the customer journey mapping process, including representatives from sales, marketing, customer service, and product development. This will ensure that all perspectives are considered and that the customer journey map accurately reflects the customer experience.
  • Use a data-driven approach: Use data to inform the customer journey mapping process. This includes customer feedback, website analytics, and sales data. This data can provide valuable insights into the customer’s experiences and help to identify pain points and opportunities for improvement.
  • Test changes before implementation: Before making any changes based on the customer journey map, it is crucial to test them in a controlled environment. This will help evaluate the changes’ impact and refine them before they are rolled out to the entire customer base.
  • Continuously monitor customer feedback: The customer journey constantly evolves, and customer needs and expectations change over time. Continuously monitor customer feedback to ensure the customer journey map accurately reflects the current customer experience.
  • Foster a customer-centric culture: Foster a customer-centric culture within the organization by prioritizing the customer journey. This includes regularly reviewing and updating the customer journey map and improving the customer experience as needed.

Negatives of Customer Journey Mapping

  1. Time-consuming and resource-intensive: Customer journey mapping can be a time-consuming and resource-intensive process, especially for larger organizations with complex customer journeys.
  2. Limited to current understanding: Customer journey mapping is only as good as the data and information used to create it. A brand needs to fully understand its customers and their journeys so that the resulting map accurately reflects reality.
  3. Can be subjective: Customer journey mapping is often created by a team, which can lead to subjectivity and bias in the final map. To minimize this, it’s important to involve multiple stakeholders and gather data from various sources.

Frequency of Customer Journey Mapping

It’s recommended that a brand conduct customer journey mapping regularly, at least once a year or as needed, based on changes in the market, customer behaviour, and the brand’s offering. The frequency of customer journey mapping will depend on the size of the brand, the complexity of its customer journeys, and the speed at which the market and customer behaviour are changing.

What to Consider before Embarking on Customer Journey Mapping

  • Data collection: Before conducting customer journey mapping, it’s important to have a solid understanding of your customers, including their behaviours, preferences, and pain points. This information can be collected through surveys, focus groups, and customer interviews.
  • Stakeholder involvement: To ensure that customer journey mapping is comprehensive and accurate, it’s important to involve key stakeholders, including representatives from sales, marketing, customer service, and product development.
  • Clear goals: Before conducting customer journey mapping, it’s important to have clear goals and objectives, such as identifying areas for improvement, increasing customer satisfaction, or improving the overall customer experience. This will help guide the process and ensure that the resulting map is actionable and relevant.

The Role of Market Research in Customer Journey Mapping

Market research plays an important role in customer journey mapping. By gathering customer feedback and data, brands can gain a deeper understanding of their customer’s needs, motivations, and behaviours. This information can then be used to inform the creation and refinement of the customer journey map, ensuring that it accurately reflects the customer experience.

Customer journey mapping is a critical component of a brand’s customer-centric strategy, and market research is essential in ensuring that it is based on accurate and up-to-date information. By combining these two approaches, brands can create a customer experience that exceeds customer expectations and drives business success.

Conjoint Analysis is a market research technique used to understand how consumers value different product or service features. It involves presenting participants with a series of product profiles that vary in their features and asking them to rate or choose the profiles they prefer. By analyzing the data collected, researchers can determine each feature’s relative importance and how consumers trade off one feature for another. Conjoint Analysis helps companies make informed decisions about product design, pricing, and positioning.

Conjoint Analysis and Trade-off Analysis are essentially the same. Conjoint Analysis is a more commonly used term, but Trade-off Analysis is also widely used in market research. Conjoint Analysis and Trade-off Analysis are also known by other names, such as:

  • Conjoint Study
  • Multi-attribute Trade-off Study
  • Conjoint Measurement
  • Conjoint Analysis Method
  • Conjoint Analysis Technique
  • Conjoint Methodology
  • Conjoint Analysis Experiment
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Conjoint Analysis has its roots in mathematical psychology in the 1960s. It was first used in market research in the 1970s and has since become one of the most widely used methods for understanding consumer preferences for product features. Sawtooth Software founder Dr. Fred McCollum conducted the first Conjoint Analysis study in the 1970s. He used the technique to study the features customers valued in different types of products. McCollum’s work laid the foundation for developing Conjoint Analysis as a widely used market research tool. Since then, Conjoint Analysis has been adapted and refined to meet the changing needs of market research and is now used in a wide range of industries to help companies make informed decisions about product design, pricing, and positioning.

Conjoint Analysis is a type of quantitative market research. It uses statistical methods to quantify consumer preferences and trade-offs, making it a numerical and data-driven approach to market research. The results of Conjoint Analysis are typically presented in graphs, tables, and statistical models.

The market research formulas typically used when analyzing data from a Conjoint Analysis study include:

  1. Part-Worth Utilities: Part-Worth Utilities are the most commonly used metric in Conjoint Analysis. They quantify the relative importance of each product feature and the trade-off between different features.
  2. Regression Analysis: Regression analysis examines the relationship between product features and consumer preferences and identifies which features are most influential in driving consumer behaviour.
  3. Multivariate Analysis of Variance (MANOVA): MANOVA is used to analyze the differences in consumer preferences across demographic groups and to identify differences in product preferences between sub-groups.
  4. Logit Regression: Logit Regression analyzes binary choices, such as the choice between two product options. It is used to model consumer choice behaviour and to predict which product features are most likely to influence consumer choices.
  5. Conjoint Simulation: Conjoint Simulation is used to forecast consumer behaviour based on the results of the Conjoint Analysis. It predicts how consumers will respond to different product profiles and identifies the most appealing product configurations.

Like everything in life, Conjoint Analysis has both pros and cons.

The pros of conducting Conjoint Analysis:

  1. Insights into Consumer Preferences: Conjoint Analysis provides valuable insights into what consumers value in a product or service and how they trade off one feature for another. This information can inform product design, pricing, and positioning decisions.
  2. Realistic Scenarios: Conjoint Analysis presents participants with real product scenarios, making it a more accurate reflection of real-world purchasing behaviour.
  3. Large Sample Size: Conjoint Analysis is a scalable research technique and can be used to gather data from large sample sizes, providing more robust and representative results.
  4. Cost-effective: Conjoint Analysis is relatively cost-effective compared to other market research techniques, such as focus groups and individual interviews, making it an attractive option for many companies.

Conversely, some of the disadvantages or cons of Conjoint Analysis include:

  1. Limited Feature Options: Conjoint Analysis may only be able to capture consumer preferences for a limited set of product features and may not be suitable for studying the impact of unusual or unique features.
  2. Response Bias: There is the potential for participants to exhibit response bias, where they may choose product profiles based on factors other than the features presented, such as brand or price.
  3. Complex Analysis: Conjoint Analysis requires complex data analysis to extract meaningful insights and may be challenging for researchers without specialised training.
  4. Limited Context: Conjoint Analysis presents product profiles in a laboratory setting, which may not accurately reflect real-world purchasing behaviour in different contexts, such as in-store or online.

Minimizing respondent bias is essential in any market research study, including Conjoint Analysis. Here are some steps that you can take to mitigate respondent bias in a Conjoint Analysis study:

  1. Use a representative sample: Using a representative sample of the target population can help to minimise the impact of respondent bias, as the results will be more representative of the broader population.
  2. Use blind or randomised presentation: To minimise the impact of order effects or other biases, it can be helpful to present the product configurations randomly or to use a blind presentation, where the respondents do not know the identity of the product or brand being evaluated.
  3. Avoid leading questions: Care should be taken to avoid asking leading questions or using language that could influence the respondents’ responses.
  4. Provide clear instructions: Providing clear and detailed instructions to the respondents can help to minimise misunderstandings and ensure that the responses are accurate and meaningful.
  5. Use incentives to increase response quality: Providing incentives to the respondents can help to improve the quality of the responses and to encourage respondents to take the time to evaluate the product configurations thoughtfully.
  6. Pre-test the survey questionnaire: Conducting a pre-test of the survey can help identify and address any potential biases or problems with the questions and improve the quality of responses.
  7. Consider using multiple methods: Conjoint Analysis can be combined with other forms of market research, such as in-depth interviews or focus groups, to help validate the results and minimise the impact of respondent bias.

In addition, Conjoint Analysis may be best suited to specific industries than others. Industries that typically use Conjoint Analysis:

  1. Consumer Goods: Conjoint Analysis is widely used in the consumer goods industry to understand consumer preferences for product features in categories such as packaged goods, electronics, and appliances.
  2. Healthcare: Conjoint Analysis is used in the healthcare industry to understand patient preferences for medical treatments, procedures, and healthcare services.
  3. Financial Services: Conjoint Analysis is used in the financial services industry to understand consumer preferences for financial products and services, such as credit cards, loans, and insurance products.
  4. Automotive: Conjoint Analysis is used in the automotive industry to understand consumer preferences for vehicle features, such as safety, performance, and design.
  5. Telecommunications: Conjoint Analysis is used in the telecommunications industry to understand consumer preferences for mobile phone features, such as camera quality, battery life, and screen size.

However, if Conjoint Analysis is suitable for your brand, product, or service, you can expect the following strategic outcomes from conducting a Conjoint Analysis research study:

  • Improved Product Design: Conjoint Analysis provides insights into the relative importance of different product features and the trade-off between various features. This research can be used to design products that better meet the needs and preferences of consumers.
  • Better Understanding of Consumer Preferences: Conjoint Analysis provides a detailed understanding of consumer preferences and behaviours, which can be used to inform product design, pricing, and marketing decisions.
  • Improved Pricing Strategy: Conjoint Analysis can help determine the price sensitivity of consumers for different product features, allowing a company to set prices that are competitive and in line with consumer preferences.
  • Increased Market Share: By designing products that better meet the needs and preferences of consumers and by pricing products in a way that is competitive and in line with consumer preferences, a company can increase its market share and improve its competitiveness.
  • Better Segmentation: Conjoint Analysis can help identify differences in consumer preferences across demographic groups and can be used to inform targeted marketing and product design strategies for different segments of the market.
  • Improved Product Development: Conjoint Analysis can be used to test new product concepts and to identify which ideas are most likely to be successful in the market. These insights can be used to improve the success rate of product development efforts.
  • Better Decision Making: Conjoint Analysis provides objective and data-driven insights into consumer preferences and behaviours, which can be used to support informed decision-making in product design, pricing, and marketing.

Another important consideration before embarking on a Conjoint Analysis research study is that they typically analyze between 4 to 10 features or attributes. 

For example, a Conjoint Analysis study of a smartphone product may analyze 4 to 6 features, such as screen size, camera quality, battery life, and storage capacity. A Conjoint Analysis study of a car may analyze 8 to 10 features, such as fuel efficiency, safety features, interior design, and entertainment systems.

A maximum number of features is critical because Conjoint Analysis presents participants with trade-off scenarios between different product features. Too many attributes or features can make the trade-off decisions overwhelming and unrealistic. Additionally, analyzing too many features can increase the complexity of the Conjoint Analysis design, making it more challenging to interpret the results. 

Because there are limitations with the number of features to include in a Conjoint Analysis research study, researchers and product managers can determine which trade-offs to include in the study by:

  • Identifying the most important product attributes: Researchers should identify the product characteristics that are most important to consumers and have the most significant impact on their purchasing decision. This information can be obtained through market research techniques such as focus groups, surveys, and competitor analysis.
  • Determining the level of variability for each attribute: Researchers should assess the level of variability for each product attribute, such as low, medium, or high. This will help determine the number of levels for each feature included in the Conjoint Analysis study.
  • Determining the feasibility of including all attributes: Researchers should evaluate the feasibility of having all attributes in the Conjoint Analysis study. Some attributes may be too complex or difficult to measure or need more variability to make meaningful trade-off decisions.
  • Considering the trade-off between complexity and accuracy: Researchers should consider the trade-off between complexity and accuracy when determining which attributes to include in the Conjoint Analysis study. A study with too many features may be too complex for consumers to understand and respond to, while a study with too few attributes may not provide enough information to predict consumer behaviour accurately.
  • Testing the attributes in a pilot study: Researchers should conduct a pilot study with a small sample of participants to test the attributes or features and make any necessary adjustments before running a full Conjoint Analysis study.

These points will help determine which product feature trade-offs to include in a Conjoint Analysis study that provides meaningful and statistically significant results.

Once the trade-offs are determined for the study, typical steps taken when conducting a Conjoint Analysis Market Research Project include:

Step 1 – Design and Development: The first step is to design the Conjoint Study, including developing product profiles, feature sets, and questions for participants. This stage usually takes several weeks to a few months, depending on the complexity of the study.

Step 2 – Recruitment: Participants are recruited for the study, which may involve online surveys, telephone interviews, or in-person focus groups. Recruitment can take weeks to months, depending on the sample size.

Step 3 – Data Collection: Once participants are recruited, data is collected. Again, this stage can take several weeks, depending on the sample size and complexity of the study.

Step 4 – Data Analysis: The collected data is then analyzed to determine the relative importance of different features and how consumers trade off one feature for another. 

Step 5 – Report Preparation: The final stage is to prepare a report that summarises the findings of the Conjoint Study and provides actionable insights for the client. 

Once the decision is made to run a Conjoint Analysis research study, brands should find a reputable market research agency to run the study.

The benefits of hiring an external market research agency like Kadence International to conduct a Conjoint Analysis study are:

  • Expertise: Market research agencies have the knowledge and experience necessary to design and conduct high-quality Conjoint Analysis studies, ensuring the results are accurate and meaningful.
  • Objectivity: An external market research agency can provide an objective perspective on the findings of the Conjoint Analysis, free from any internal biases or conflicts of interest.
  • Access to Resources: Reputable market research agencies have access to a range of resources, including data collection and analysis tools, that can significantly improve the quality and efficiency of the Conjoint Analysis study.
  • Time and Cost Savings: Hiring an external market research agency can save time and reduce the cost of conducting a Conjoint Analysis study, as the agency can manage all aspects of the study, from design and development to data collection and Analysis.
  • Increased Credibility: An external market research agency provides credibility to the results of the Conjoint Analysis study, as the agency is independent and impartial and has a reputation to uphold.
  • Expert Interpretation: Market research agencies have the expertise to interpret the results of the Conjoint Analysis study and provide actionable insights and recommendations to the client. This can help you make informed decisions and drive growth.

Emerging Trends in the Global Beverage Industry is an in-depth guide providing insights into key trends shaping the alcoholic beverage category in the U.S., U.K., Singapore, Japan, Indonesia, China, Thailand, Vietnam, and the Philippines, with examples and case studies from leading global brands. 

This report is for beverage brands, retailers, distributors, investors, bars, restaurants, and anyone in the business of quenching a consumer’s thirst for innovative beverages.

This is a summary of all five emerging trends in the report and how brands globally keep up with dramatic shifts in consumer tastes and preferences and the stiff competition in the beverage industry.

Trend 1: Booze without the buzz. 
The rise of no-to-low alcohol

As younger generations shun alcohol or reduce consumption, the low-to-no-alcohol (LNA) trend is here to stay.

Moderation, health, wellness, and a thirst for innovative flavours drive growth in this sub-category, and consumers are willing to pay for high-end innovative, non-alcoholic spirits.

Download the full report to find out how much the millennial share of alcohol drinkers has dropped in just one year.

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Apart from big brands, the global market is deluged with new, independent entrants. Read the full report to discover the brands in the LNA category and how they are responding to the sober curious movement.

Also, read the case study of a brand that sowed the seeds for the LNA category. 

Trend 2: Spirit-based ready-to-drink beverages.
RTDs create a stir in the beverage industry

The demand for RTDs continues to grow, especially among younger consumers.

Variety, taste, and convenience are driving demand. The category includes hard seltzers, canned wines, ready-to-drink cocktails, hard coffee, hard tea, kombucha, wine spritzers, and coolers.

Download the report to discover why RTDs cater to the millennial lifestyle and how brands are delivering. Also, learn how Suntory is combatting low beer sales in Japan. 

In our case study, we look closely at what made the US-based hard seltzer White Claw become a pop culture icon. 

Trend 3: The Shift to drinking smart. 
Low-cal, plant-based, and gluten-free options

Low-calorie or zero-carb drinks may cater to a different target audience than the no-to-low-alcohol beverage category.

These consumers are mindful of their caloric intake but may not be as concerned with the amount of alcohol they drink.

In response to the health-conscious consumer, a leading beer brand added transparency by adding a nutrition label on its pack. Also, explore a soy-based alcoholic brand, how it uses a nutritious by-product to create an innovative drink, and how Skinnygirl catapulted into a leading RTD brand. 

Trend 4: Unlocking Craft Alcohol.
The popularity of mall-batch wine, spirits, and beer

This trend toward premiumization is a hot trend we will see well into the future. 

In most industries, the major growth areas have been for premium products catering to niche consumer segments. The alcoholic beverage segment is no exception, and brands are catering to evolving tastes by improving their beverages through better craftsmanship and innovative flavours.

The growing demand for craft spirits is expected to be the primary trend in the future, even as we move into a downturn. 

Also, discover how countries like Thailand and India are growing their wines. And if you have heard about the hype behind George Clooney’s famous tequila brand, read the case study to learn about Clooney’s journey into small-batch premium alcohol. 

Trend 5: The future of packaging. 
Innovative, sustainable, and inclusive design 

The package material, shape, design, logo, colours, and messaging are all critical elements that help a brand tell its story.

So how do brands in the alcoholic beverage category balance it all? Download the case study to find out. 

While brands focus on creating sustainable production methods, they also need to rethink packaging and distribution, just like the innovative flat wine bottles that fit through a mail slot. Read the complete case study in the report. 

As people worldwide drink less, brands are working hard to quench their thirst and keep up with their changing tastes using market research insights and constant innovation.

To get an in-depth view of the emerging trends in the global alcoholic beverage industry, download the complete report today. 

If you want a crocheted sweater or a bespoke engraved cutting board but need help finding an artisan, you might turn to platforms like Etsy that connect buyers with artisans on their eCommerce platforms. 

The last decade has brought a massive consumer shift in mindset. Consumers today care about where their products come from, who produced them, and under what conditions they were made. They care about the impact of everything they purchase —on the workers and the environment. 

Many trends are responsible for the maturation of the artisan economy around the globe, such as the rise of e-commerce, a growing interest in the environment and sustainability, the demand for rare, unique, personalised items, and a desire to support the local economy and small businesses. 

Consumers care about sustainability, ethical consumption, and small-batch production and are looking for unique pieces with a story to add to their lives. 

There has been a massive demand for handmade products globally. Handmade or artisanal products are high quality and unique, making them desirable for people looking for one-of-a-kind products with a strong narrative. 

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The need for personalization and the recent movements supporting local businesses and artisans have also helped promote bespoke brands or handmade products.

Unlike mass-produced goods, handmade products have certain deviations, and no two products will be the same, adding to the uniqueness consumers seek in the products they purchase.

When consumers purchase a handmade product, they are also buying into the story and history behind it and building a deep connection with the artisan making the product while supporting craftsmanship and local businesses. Consumers are avoiding off-the-shelf pieces, and artisan goods are becoming a staple. 

According to a U.K. Crafts Council report, 73 percent of U.K. adults had bought a craft in 2019 —which amounts to almost 25 million handmade items. About 32 percent of today’s buyers are under 35 years of age, making the younger populations of Millennials and Gen Z the biggest craft shoppers today. There are 11,620 craft businesses in the U.K., with over 43,000 employees. 

Consumers often save crafts and techniques that face extinction and erasure by purchasing artisanal goods. And now, many big brands want to add a piece of the traditional method to their products. For instance, independent watchmaker Daizoh Makihara decided to use the traditional Japanese glass-cutting technique called Edo-kiriko for the dial of his first watch. He found eight companies that specialised in the method, but only one agreed to do it. This was Kyosuke Hayashi, the president of Mitsuwa Glass Kogei. 

In English, Edo-kiriko means “cut glass from Edo”: Edo is an old name for Tokyo, and kiriko is the name of the cutting technique. This partnership gave birth to the first edo-kiriko watch in the world in 2018. 

The weavers and artisans work hard to keep the rich Indian arts and crafts heritage alive. According to IBEF, the total handicraft exports from India reached $3.5 billion in FY20. With over 200 million artisans, India’s handicraft sector is the second largest employer after agriculture. 

While fast fashion is pressuring the environment with its heavy carbon emissions, water waste, and poor working conditions and treatment of workers, consumers are hungry for a better model that offers trendy essentials and accessories without harmful environmental and socio-economic impact.

eCommerce has enabled many skilled artisans and hobbyists to profit from their passion and talent. 

Consumer obsession and interest in handmade products have also seeped into reality T.V., and craft reality T.V. shows have become quite the rage. 

British reality show Handmade: Britain’s Best Woodworker is a furniture-making competition similar to a cooking contest that has captured the hearts of audiences worldwide. Every major network and various streaming platforms are in on the trend. Other similar shows include BBC’s All that Glitters, Netflix’s Blown Away, NBC’s Making It, HBO Max’s Craftopia, ITV’s Bling, and Channel 4’s The Great Pottery Throwdown.  

The pandemic spurred the demand for handmade goods. Online platforms have fuelled much of this growth: in December 2018, Etsy, a U.S.-based online platform for artisans to buy and sell handmade goods, reported that there were 220,000 active sellers in the U.K. with a further 9,000 makers on Folksy, a U.K.-based online platform to purchase handcrafted gifts and original artwork, sold directly by the artists and designers who have created them.

Top handmade product categories on Etsy 

According to a report, the top handmade product category on Etsy in 2020 was home and living, with a 25 percent seller share, followed by art and collectables (21 percent), jewellery (15 percent), clothing (11 percent), accessories (8 percent), bath and beauty (6 percent), toys and games (4 percent), bags and purses (3 percent), weddings (2 percent), and books, movies and music (2 percent).

Etsy has three main sections in its online marketplace: Handmade, Vintage, and Supplies. Handmade represents 85 percent of sellers, Vintage represents 6 percent, and Supplies represent 12 percent of sellers.

Etsy, founded in 2005, now has more than 1.4 million sellers and 19.8 million buyers. Etsy focuses on handmade and vintage items and features over 5.4 million craft supply items.

Handmade gifts provide a personal touch and make the gift unique and personalised. This unique factor has driven platforms and brands that offer handmade products as popular choices during the Holidays. 

There has been an 80 percent jump in searches on the creator-driven platform Etsy for Holiday gifts in the past three months compared to last year. In 2020, CNBC reported that Etsy saw a 156 percent increase in search traffic during three months compared to the year prior for custom gifts.

Case Study: How Etsy carved a niche for the handmade sector using an e-commerce platform

The Overview

Based in Brooklyn, New York, Etsy is the largest online marketplace globally, connecting buyers to sellers of handmade and vintage goods and craft supplies. Etsy is built on a smart revenue model: it charges sellers a listing fee and a commission and upsells advertising services to push a seller’s products to boost reach. The company expanded through acquisitions, including Blackbird Tech for USD 32.5 million, Reverb in 2019 for USD 275 million, and the fashion resell marketplace, Depop in 2021 for USD 1.63 billion.

The company has competitors like Amazon Handmade, Big Cartel, Folksy, iCraft, and eBay. 

The Approach

Etsy took the value creation approach and narrowed its product offering to handmade or artisan-made products. While it has created a community of buyers and sellers, it moved its focus to buyers as the core market when eBay vet Josh Silverman took over Etsy’s reins. A year after hitting an all-time low in 2017, Etsy’s stock rebounded and grew; today, it stands at USD 119.74 a share. Defining and focusing on its key audience helped the brand grow. 

Once the brand identified its core audience, the buyers, it hiked the fees it charged its sellers from 5 percent to 6.5 percent. Even though 20,000 of its sellers went on strike, the company did not budge, and the results showed in the most recent third-quarter earnings in 2022, reporting a revenue bump of 11.7 percent over the same quarter of 2021, to USD 594.5 million. 

Etsy is also attracting more buyers to its platform via the mobile app. In 2021 alone, the brand reported a 45 percent increase in app downloads bringing 5.7 million new shoppers to download the app. The brand also leverages targeted, compelling email offers based on items favourited or shops browsed. The brand funded discounts and sent them to 18 million shoppers in 2021, and also provided discount technology allowing shoppers to discount goods from their shops. The brand also encourages buyers to follow more shops through sweepstakes and contests. 

The brand also offers multiple additional services to facilitate communication with sellers, on-platform transactions, and access to ratings and reviews. 

Etsy allows its sellers to voice their concerns with congress members and local and federal governments. And lastly, the brand continuously invests in retail technologies like machine learning via acquisitions. The brand has designed convenient distribution channels, upgraded buying and selling software and merchant services, and improved its social media presence to boost brand awareness. This month, Etsy rolled out a new image search feature to allow shoppers to find an object faster than with a keyword search. Users on iOS can now tap the camera icon and search for images by uploading a picture. Etsy then scours its platform to find products visually similar to the ones the user is searching for. Etsy plans to expand image search to Android app users soon.

The Results

Etsy’s impact on the artisan economy is robust. The most recent quarterly earnings report disclosed revenues had risen to USD 198 million, a 31.64 percent increase year over year. Etsy currently holds a market cap of just under USD 5.5 billion – quite a climb from its USD 1.1 billion market cap back in March 2017. The brand attracted 6.3 million shoppers in the third quarter of 2022, ending with 88.3 million active buyers on the Etsy marketplace.

In most developing nations, the handicraft industry is fragmented, lacking legal Intellectual Property laws surrounding its products, and artisans not getting fair compensation for their craft. 

In most countries, handcrafts are highly valued because of the high skill level and talent required and are sold in luxury stores at premium prices. However, although India has a rich culture and many categories of handicrafts, they still need to be given their deserved value and place. Ramesh Menon founded Save the Loom, a nonprofit community group to revive, restore, and restructure the handloom industry in India.

Many other such organizations are helping artisans overcome the many challenges they face. However, online platforms and eCommerce websites like Etsy, Folksy, Amazon Handmade, and others have helped create a viable worldwide path forward for the handmade industry. 

While not every product fits the artisan-made model, the lessons from this growing trend apply to all categories. Consumers want to feel connected to the story behind the product, how a product is made, and the feel-good impact on the environment and people after purchase.

For more insights into the shifting trends in online shopping and consumer behaviour around the globe, download our complete report, “The Future of Online Shopping.” 

Product managers and designers frequently get requests to design new products and add new features to existing products, making it difficult to determine which ideas to invest in for the best outcome. 

This is where concept testing comes into play. 

Concept testing ideas and even features for existing products before moving into implementation and design is the best way to approach a customer-centric product development process.

What is concept testing?

Concept testing is a market research method to get user feedback before bringing a new product or feature to the market. It often allows users to provide their input on potential solutions. When end users are involved in the initial product development and design phase, it takes the guesswork out of what consumers want and allows them to shape the idea before it is launched in the marketplace.

It involves putting the idea in front of real consumers and asking them to assess the product’s value in multiple areas. 

Whether the goal is to bring a new concept or product into the market, update an existing product, or change pricing or messaging, input from real customers translates into informed decision-making. This allows brands to save time, money, and resources while preventing financial losses due to failed products and also helps protect the brand and customer relationships.

In today’s highly competitive business environment, brands need to employ a customer-centric approach, and all decision-making should start and end with the consumers’ interests and preferences in mind.

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The value of concept testing

According to studies, more than 25 percent of total revenue and profits come from launching new products, which is true across industries and product categories. 

With concept testing, brands can validate an idea or vision before investing valuable resources into building something that may not resonate with its users. It also helps brands identify potential challenges in executing the idea. Concept testing precedes usability testing, which must be conducted once the refined design prototype or wireframe becomes available. Product testing is crucial and happens after the final product is ready for launch to get first-hand information on how consumers will respond to the final product. 

Launching a product or service is a massive undertaking, even for larger organizations. Research shows only 55 percent of all product launches occur on schedule, and 45 percent are delayed by at least one month. 

Therefore, brands must ensure the product resonates with the end user before launching it. Concept testing helps confirm that your assumptions around a solution or idea are correct. 

Concept testing comes after the ideation phase and is a way of testing ideas that have been developed to an extent but need further refinement and provides a more detailed understanding of the needs of your potential customers. 

Concept testing may also be used to design a complete User Experience (UX). According to studies, every USD 1 invested in User Experience (UX) design results in a USD 100 return. Providing consumers with a seamless UX is crucial for brands to stay competitive in today’s volatile market conditions. 

Concept testing should be considered an unobstructed learning process where brands open the concept up to end users to discover their perceptions —without any predefined parameters.

Benefits of concept testing

Concept testing minimises risk and is easy to set up.

Concept testing allows brands to test and understand how real consumers will feel about the product before investing time, money, effort, and resources into it, minimising the risk of product failure. 

Concept testing can help you optimise the concept before the launch.

Concept testing can provide more information regarding the potential roadblocks to implementation, consumer perceptions, price perceptions, competition, and how the new concept fits into the brand. 

It also allows brands to test multiple solutions or concepts to arrive at the best one and helps provide some information on potential market demand.

Research helps forge strong brands.

Concept testing is a great way to show consumers and investors that your brand believes in constant innovation, has a customer-centric approach, and is transparent. This helps boost loyalty and enhance brand value and equity.

Concept testing prevents costly mistakes.

Even some of the biggest brands, like Google and Coca-Cola, are not immune to making mistakes due to false assumptions about what consumers want (or do not want).

In 2012, Google first announced Google Glass —an eyeglasses-shaped head-mounted display with smartphone functionality. It was based on the premise that “technology should work for you —to be there when you need it and get out of your way when you don’t.” The brand wrongly assumed what consumers wanted from technology. In 2015, the company discontinued the product due to low market demand. 

Coca-Cola is another great example illustrating the importance of concept testing. When Coca-Cola’s flagship cola drink started losing market share to Pepsi, it changed its drink formula for the first time in 99 years. It introduced New Coke, which failed miserably. The brand reintroduced its older recipe and rebranded it as Coca-Cola Classic.

Similarly, in 1990, US-based beer Coors introduced Coors Rocky Mountain Sparkling Water to tap into the fast-growing bottled water segment but fell flat as the Coors name confused consumers. 

Concept testing boosts confidence in product launch and team buy-in.

If you have a concept but need to assure the senior team that it will work, concept testing is the best way because you can show evidence that real consumers will use it.  

The importance of well-designed questions

Over 80 percent of all new products fail, and concept testing allows brands to determine if a new product or feature is a good market fit by asking real users the right questions. 

Therefore, you must ask the right questions that will give you valuable insights into the needs and requirements of real users. Determining the metrics, you will measure in your concept testing is crucial. 

You will set your goals depending on the concept and methodology you choose, and your survey questions should aim to reach these goals. For instance, if you are testing a new type of single-serve, wireless blender, the goal is to determine if your potential customers need a product that makes smoothies on the go. The questions will revolve around understanding the consumer better and if they need a solution like this, along with any other features they might want to see in this blender, for instance, a sippy cup cover or straw to go with it. 

This is where research design comes into play, and the research questions depend upon the business need. For instance, if a brand is taking its concept to a new market segment, they need to conduct a needs analysis using qualitative and quantitative research methods. The questions will be designed to find out if the concept will work in the new market. 

Let’s say the brand is testing a new concept before its initial introduction. In that case, they need to conduct Concept Fulfillment utilizing qualitative research to determine if there is a need for the new product concept.

Some common goals brands set for concept testing are as follows.

  • Get a metric on how likely existing customers and new market segments will be to purchase the product. 
  • How the product will do based on current competition in the market, and what features will make it stand out. 
  • Learning which features would get existing customers to purchase from the brand.

These goals provide brands with invaluable, high-quality data and insights into consumer behaviours, attitudes, and preferences. 

Concept testing methodologies

Brands test concepts in many ways and all the methods involve getting feedback from potential users on the idea’s validity. It can be done via a face-to-face or remote interview. Depending on the concept and the study’s goals, it can be done asynchronously or unmoderated. 

There are four standard methods for concept testing. They are based on the number of ideas you want to evaluate.

Comparative testing

This method is used when you have more than one potential concept to test. Brands use the comparative method to see how multiple concepts measure against each other.

When using this method in a survey, respondents are asked to rate each concept against a set of criteria. Questions must be specific features that can also be ranked to determine which features are most preferred by respondents.

Monadic testing

Unlike comparative testing, monadic testing shows research participants one product or idea. 

This concept testing takes your entire target audience and breaks it into subsets, showing only one concept to each. These user-friendly tests provide a deep dive into the consumer’s mind. They also reduce bias and provide accurate results.

Sequential monadic testing

A sequential monadic survey shows your entire target audience or a subset of the audience, either all of your concepts or some of them—with at least two concepts being shown randomly.

Proto-monadic testing

Proto-monadic testing combines sequential monadic and comparison testing. It asks participants to analyze concepts and compare features to help them choose the best concept.

Steps in Concept testing survey design

When you’re ready to test your concepts, there are four steps to follow:

Choose the most suitable methodology for your business needs.

Select the best methodology depending on the scope, time, and number of features or concepts being tested.

Set a goal.

Work backwards, set a goal based on the objective and the information you want to gather from your customers, and design survey questions accordingly.

Choose survey components appropriately.

Make sure you use the most appropriate components for your surveys. From Likert scales to images and demographic questions, brands should carefully make these choices to design a survey with questions that will produce valuable data.

Identify the most promising concept.

Review the collected data to get a clear picture of the concept favoured by the target market. Dive deeper into the most desirable features to determine which concept has the highest potential for market success. 

If the data reveals something unexpected or is something you did not imagine before, feel free to change course. This is why you conducted concept testing in the first place —to ensure the concept works in the marketplace. The ultimate goal of this study is to do what’s profitable for the brand. 

Real-world examples of Concept testing

It’s one thing to determine if people want a product or service and yet another to say they are willing to open their wallets and buy the product. 

This is where purchase intent testing comes into play. This helps determine if people will purchase your product or service at your desired price.

Many brands test the product without the price first to gauge consumer interest and later add price to determine purchase intent. 

US-based Electric Vehicle brand Tesla conducted purchase intent testing for a car model before it even designed it.

In 2016, the pioneering EV automobile brand tested purchase intent for the Tesla Model 3 before it was even designed. Interested buyers were asked to put down USD 1,000 for the Tesla Model 3, and about 400,000 people ended up putting down money to book the car. The participants also provided feedback on the car, and Tesla made modifications and features based on real customer input. This also gave Tesla the confidence and the capital needed to develop the car. 

Another undefeated brand due to its concept testing research is Denmark-based Lego, a plastic building-block toy company. For years, Lego was predominantly bought for boys, so the brand conducted extensive market research to discover that boys and girls played with Legos differently. Boys preferred stand-alone structures, while girls enjoyed recreating backgrounds, scenes, and environments. 

In 2012, based on these findings, the brand launched the Lego Friends product range with cafes, salons, supermarkets, and so forth to tap into the new consumer segment successfully. 

Concept testing is a great way to evaluate and identify winning product concepts. It promotes innovative thinking and developing products, features, and pricing that resonates with end users. It allows brands to stay ahead of the competition by developing and designing concepts based on market demand and creating products only after testing the idea and getting invaluable feedback from real consumers. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Fill out our Request for a Proposal here.

Back in the day, Qualitative research was all about understanding the person behind the responses by watching his actions, behaviour, mood, tonality, and other giveaways while talking about specific products and services. We still do it (some of it) but with less dependency on human competence and more reliance on the tools believed to be fast, precise, and less intruding.

In Qual research, most of these tools are used for analyzing data, app testing, and emotion decoding through Artificial Intelligence (A.I.), which can address multiple research studies like UI/UX testing, NPD, product/concept test, etc. While these tools help capture the required details without bias, they still have some limitations.

Typical Qual research is done to understand:

  • Human behaviour and interaction with various categories (brands/ services/products)
  • Trends and impact 
  • Product and concept evaluation
  • Segmentation (Pen portraits)
  • U&A 
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Researchers apply various approaches to meet the objectives depending on the overall scope of the research project. However, basic principles like the need to be an open-ended, free-flowing discussion to gain in-depth knowledge and reasons for a particular behaviour or response and generate actionable insights stay the same. 

These days, technology is helping make research much more accessible and cost-effective for brands, but it is yet to be seen if it serves the intended purpose.

Before the pandemic, online interactions were not a preferred research methodology for most brands as they offered a different experience than face-to-face interaction and were considered an ‘optional methodology.’ 

However, the pandemic changed that as there was no option other than doing online research and gradually posting using an online methodology for various research activities. Brands found it to be both cost and time effective. With this began the race for offering/ innovating several tech/ tools to enable Qual research to deliver insights irrespective of situational limitations. There are hundreds of ‘tech research agencies/boutiques’ currently offering various tech solutions like UI/UX, Neuro, A.I.-enabled analysis (from transcriptions/ recording), and emotion decoding tools, and a considerable amount of R&D is already happening in this area.

These tools are certainly helpful in today’s era when not just research but the overall ecosystem is evolving, and tech has become the backbone of any new venture. There are so many start-ups today, and India has emerged as one of the growing ecosystems for start-ups; currently ranked third globally with over 77,000 start-ups, this number is growing yearly. 

Most start-ups are tech-based and have apps for better user experience, easy access to data, and increasing adoption rate of new services and products.

Most of these start-ups utilise research to get feedback on UI/UX and check what can be improved to provide a better experience and increased engagement. A few years back, researchers typically carried out these research activities at a CLT set-up with a couple of cameras. Still, now this can be done on mobile phones using another platform (app) for decoding user interaction with the app to be evaluated.

Tech has helped explore new avenues and reshape old methodologies like G.D.s, Ethnos, and diary placements. Now, online methods are used widely, and it is still to be seen whether this phenomenon will stay.

While online methods have certain limitations, like missing the human connection —one of the basics of any Qual research, there are certain aspects wherein technology is not as helpful or hasn’t yet been developed to cater to those needs in terms of tech evolution / AI.

But there are certain spheres wherein technology has worked brilliantly for multiple reasons.

India is extremely tech-friendly.

Most of the brains in the tech world are from India, and we indeed take pride in saying that. People in India are curious and open to using new technology in every sphere of their life —be it a smartwatch, smart T.V., payment apps, food ordering apps, health trackers, cab booking apps, or high-end technology like smart homes or A.I. technology. With a growing number of start-ups, a young workforce, and evolving technology, end users prefer new tools and products for better, unbiased, and faster results. However, cost efficiency is still a grey area that will also be addressed as time goes by.

Learn more about how to develop a market entry strategy for India here.

It helps understand the customer.

Marketers want to know their customers better to increase sales and saliency through precise and tailored communications. 

Brands track data to get a complete understanding of their potential customer and offer relevant products/services. This helps close the “say-do” gap, and layering this with specific Qual interactions helps in a deeper understanding of this behaviour.

It is cost-effective.

Though using technology for online interactions, mobile or digital diaries, and online communities is more economical than face-to-face interactions, other dimensions like UI/UX tools and analysis tools are still expensive, and only a few agencies offer integrated solutions. This area will undoubtedly see many innovative solutions that address issues cost-effectively in the coming years.  

It removes bias and is more credible and faster.

Using apps/ tools/ tech for capturing and analyzing data adds credibility and saves time. Respondents can upload pictures/ videos in real-time and share their stories with a broader group or in a one-to-one setting. Less human intervention removes bias, and data output can be visualised in multiple ways per the client’s requirement.   

Though there is nothing wrong with moving ahead with time, there are pros and cons of using technology for Qual research. It remains to see what else tech can add to understand human beings better, as Qual research is not just about evaluation but also about understanding the subject more deeply. Face-to-face interactions help form a temporary bond and comfort level wherein respondents share much information about themselves, their family, occupation, finances, and buying behaviour, which is a shortfall when it comes to online interactions or using any tool/tech.    

Tech can be an enabler but not a tool to understand human emotions through superficial levels. We can decode a few things like facial emotions and System I/II responses, but a deep and detailed understanding of a particular human being would always require human intervention. It is yet to be seen how much more we can do with ever-evolving technology and how it can impact the market research ecosystem. But one thing is certain: traditional Qual is here to stay as no amount of technology can completely replace human-to-human interaction and understanding, at least not in the near future.

Digitization has reset the online shopping game board, and the pandemic has accelerated technology adoption by both brands and consumers. Today, the most successful retailers have adopted technology at warp speeds. With breakthrough technology complementing every step of the retail process, where are we headed? 

Download our complete report, “The Future of Online Shopping,” to find out.

Here’s a summary of the most significant trends shaping the future of online shopping worldwide. 

Trend 1: The Future is ‘Phygital’ — Reinventing the retail experience. 

At the intersection of physical and digital is a connected retail environment where consumers are placed at the centre. In this consumer-centric, channel-agnostic, connected environment, consumers can buy online and pick up from stores.

They can try clothes and accessories virtually, in-store or online, browse large touchscreens for product information, dispense products from vending machines, and even scan an aisle in a grocery store to view an overlay of information about products. 

The future of retail is omnichannel, an approach providing customers with

 a unified shopping experience. This approach connects experiences across multiple touchpoints, including brick-and-mortar, web, and mobile apps. 

Discover how Singapore’s NTUC grocery chain increased retention and repeat business using an omnichannel approach.

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Online Financing Options – “Buy-Now-Pay-Later.”

Retail brands are removing barriers to make the shopping experience as frictionless as possible, including easy financing terms. 

Apps Making Online Shopping Seamless.

Mobile apps offer retailers an engaged audience they can easily connect with to sweeten their shopping experience, building loyalty and driving in-store sales. 

Download the complete report to discover how Shopee, the leading eCommerce online shopping platform in the Philippines, Taiwan, Thailand, Singapore, Malaysia, Indonesia, and Vietnam, and Sephora, a multi-brand beauty retail store, leading the way in making the shopping experience seamless. 

Trend 2: DTC brands are booming worldwide.

Direct-to-Consumer (DTC) has disrupted the eCommerce industry. As more brands manufacture, design, market, sell and ship their products directly to customers, they are more agile than traditional brick-and-mortar retailers. 

Download the complete report to learn how Nike tapped into the DTC space along with other legacy brands.

Social media advertising significantly contributes to DTC sales; however, rising ad prices damper many of these brands. 

Download our report to discover how DTC brands target users in a cookieless world. 

Also, learn how a home-grown Vietnamese DTC start-up raised USD 2.3 million in the middle of V.C. winter in the country. 

Shein, another DTC brand based in China, adopted and perfected its business model and developed a massive, vibrant, international community around Shein with a customer-centric approach. 

Download our report for the complete case study and discover how Shein has tapped into a massive international market of online fast fashion shoppers in the U.S., Europe, the Middle East, and other big consumer markets. 

Trend 3: Influencers are the new sales associates.

In a crowded digital space, where media consumption is highly democratised, brands seek attention by creating entertaining content that moves the audience. 

Consumers are now in charge — and rather than listening to brands, they listen to peer-to-peer advice on products and services. Consumers are increasingly filtering content, ads, and posts that reek of brand promotions in favour of posts and promotions from people they trust, a.k.a. Influencers. 

So who are the top Instagram influencers right now? 

Download our report to find out who owns the top spot for earnings per paid promotion, and learn how Kim Kardashian sold 150,000 bottles of perfume within minutes on a live stream in China. 

Trend 4: Personalizing the online shopping experience. 

Customers have spoken. They don’t just want personalization; they expect it from brands. 

Research shows that when brands provide personalised experiences, 80 percent of customers are more likely to purchase. When brands personalise a customer’s experience, they anticipate what they want and deliver it to them, increasing engagement, improving conversions, boosting customer loyalty, enhancing the experience, and gaining a competitive advantage. 

Download our report to find out how U.S.-based grocery chain Kroger is delighting shoppers with next-level personalization strategies in our brand case study. 

The future belongs to retail brands that master the omnichannel experience.

Consumers are tightening their purse strings due to inflation and the fear of an impending recession.

High prices of fuel and food are impacting consumer spending. It’s time for brands to get more creative, and eCommerce sellers are in a favourable position to weather the economic downturn using competitive pricing software and data-rich touchpoints. 

Download our free report to find out how top retail brands are globally navigating the new online retail playing field during these uncertain times. 

The fitness industry is rife with technology trends that have recently transformed the industry. One of the most significant digital fitness trends worldwide is the rise of fitness apps. A fitness app is an application related to health or fitness that users can download on smart devices, such as laptops, phones, and tablets. It may be accessible on the Android and iPhone operating systems. Fitness apps use artificial intelligence, machine learning, and other technologies to give users customised workout plans. 

Fitness users see tremendous value in online training because it is entertaining, provides many new opportunities and workouts, and allows them to share their experiences or compete with other app users.

Another reason for the rapid adoption of these fitness apps, which give users instructions on exercise routines, diet and nutritional programs, physical activity tracking, and other fitness and well-being-related topics, is convenience.

Apart from that, these apps provide access to real-time data, which allows users to track progress over time. Most apps provide users with an opportunity to win new training milestones. They can be used with other devices, such as a heart monitor, to offer workouts and levels and motivate users to perform just like a trainer or coach would in a live class.

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The global fitness app market was valued at USD 1.21 billion in 2021 and is projected to reach USD 5.41 billion by 2030, registering a CAGR of 18.1 percent from 2022 to 2030. 

According to the online public health resource, more than 97,000 fitness and health apps are on tablets and mobile devices (Health Works Collective). Additionally, roughly 15 percent of smartphone users between 18 and 29 have installed health apps, and approximately 52 percent access health-related information through their devices. 

According to a survey of users in the United States conducted during the third quarter of 2022, awareness of mobile fitness tracking apps reached 86 percent of respondents in the last measured quarter. Also, 34 percent of respondents actively used apps in this category.

Despite the many benefits and the convenience of working from anywhere, not everyone will transition entirely to online training. Current trends show that most people are looking for a hybrid approach and will take a class or go to the gym while also working out using a fitness app. 

Let’s examine the Sweat fitness app case study to understand what drives the fitness app market. 

Case Study: Sweat

From personal trainer to managing the biggest fitness community in the world, Sweat is a fitness app that built a community to succeed in the highly competitive fitness app market.

The Big Idea behind Sweat

Kayla Itsines, an Australian personal trainer, started a fitness business at 18 from her home in Adelaide. She soon discovered the mobile device as the perfect tool to help her clients achieve their fitness goals. She joined hands with two other personal trainers and launched Sweat: Kayla Itsines Fitness app. This resulted in a complete fitness program, the Bikini Body Guide, with two options for home and gym.

The program SELF-Post: Pregnancy with Kelsey Wells focused on new mothers and Yoga lessons with Sjana Elise Earp for a healthy body and mind. In this manner, Kayla ensured users wouldn’t sway toward other apps if Sweat could become their go-to for total body and mind well-being. 

Let’s look closely at the main strategies used to acquire valuable users and turn the app into a multi-million dollar brand. 

The idea behind the app was not how you look but how you feel. The app was built on a “try-before-buy” concept. Like many other apps, the app offers users a free trial for a week. At the end of the seven-day trial period, users must subscribe and pay a monthly fee of $19.99. Therefore, if they see results in the first seven days and feel it is a worthwhile investment, it is easy to hook them in with the free trial period. 

The app is hyper-focused on its target audience, primarily women —the branding, content, and style are all targeted toward women. 

Sharing results with before and after pictures

The app uses before and after pictures to demonstrate its effectiveness. This is what helped grow subscribers and kept bringing them back. As Kayla shared her clients’ results, she managed to retain and grow her subscriber base. By adding the other two programs to the app with Elise and Kelsey, she ensured they stayed consistent with other apps. 

Becoming an Influencer

From not knowing much about the social media landscape to make the list of most appreciated fitness trainers on Forbes, Kayla leveraged her following to grow the app organically. Her YouTube channel has a sleuth of videos that women can follow worldwide, and she currently has 412,000 subscribers. She leveraged social media to grow her subscriber base by using organic techniques to acquire new users. 

Building a community

Kayla tapped into the power of community to reach millions of women worldwide. 

Since its inception, the Sweat app has been downloaded more than 30 million times. In 2020, the app generated USD 99.5 million in revenue. Sweat’s success lies in its community-first approach, as users share before and after pictures and success stories. This, in turn, keeps other users motivated as they can see the results and believe that it can happen to them, too, if they stick with the program. 

In 2021, Kayla sold Sweat, their popular workout platform, to fitness-tech company iFit for a reported USD400 million. 

By increasing engagement, fitness apps have proved to be an excellent solution for users worldwide. These apps are also perfect for studio owners looking to supplement their regular brick-and-mortar service. 

Technology is progressively making a place for itself in fitness routines and monitoring and treating many chronic diseases.

How do you ensure your brand has its finger on the pulse of this dynamic market and constantly changing consumer preferences?

Download our full report, “Feeling Good: Powering the Next Generation of Fitness and Medtech,” report and find out how brands like Peloton, ŌURA, Noom, Headspace, and others are navigating a fiercely competitive market.