Move over Millennials; there’s a new kid in town – Gen Z. By 2026, this demographic will account for over a quarter of the world’s population and become the largest consumer group globally, with a purchasing power of over $44 billion. As a marketer, understanding the unique characteristics of this generation is crucial in creating impactful and effective marketing strategies. As the famous quote goes, ‘The future belongs to those who prepare for it today.’ So, let’s dive in and gain insights into the newest consumer market – Gen Z.

Gen Z Demographic Profile

Gen Z, also known as the iGeneration or Post-Millennials, includes individuals born between 1997 and 2012. As of 2023, the oldest members of this generation are 26 years old, and the youngest are just 11 years old.

Gen Z is a highly diverse generation with members from different cultural, social, and economic backgrounds. They are the first generation to be truly digital natives, growing up in a world that has always been connected by technology.

Gen Z is also a socially conscious generation with a strong emphasis on diversity, inclusion, and sustainability. In a global study by The Center for Generational Kinetics, 70% of Gen Z respondents said they believe in equal rights, regardless of race, gender, or sexual orientation. Furthermore, a survey found that 66% of Gen Z respondents in the United States prefer to buy products from companies that prioritise sustainability.

Gen Z Around the World

North America

In North America, the demographic profile of Gen Z varies significantly by country. According to a study by the US Census Bureau, the percentage of the population aged 15-24 in the United States is 13.6%, while in Canada, it is 12.9%. The ethnic composition of Gen Z in North America also varies, with the United States having a higher proportion of non-white populations compared to Canada. Gen Z in North America is highly diverse, with a growing number of individuals identifying as multiracial or belonging to minority groups.

Gen Z in North America is highly educated, with a more significant percentage pursuing higher education than any previous generation. According to a report by the National Center for Education Statistics, 59% of high school graduates in the United States enrolled in college in 2019, which is projected to continue to rise. A similar trend is seen in Canada, with 56% of high school graduates enrolling in college or university in 2018.

Overall, marketers targeting Gen Z in North America need to be aware of this generation’s demographic diversity and high levels of education. By understanding the unique characteristics of this generation, marketers can create impactful campaigns that resonate with Gen Z and build long-term brand loyalty.

UK

In the UK, Gen Z constitutes roughly 16% of the total population, with an estimated 11.2 million individuals in this age group. According to a report by Kantar, the ethnic diversity of Gen Z in the UK is higher than in any previous generation. Approximately 54% of Gen Z in the UK come from non-white backgrounds, with 18% identifying as Asian, 16% as Black, 11% as mixed, and 9% as other ethnic groups. Regarding gender, Gen Z in the UK is evenly split between males and females.

Europe

In Europe, the demographic profile of Gen Z varies significantly by country. According to the statistical office of the European Union, the percentage of the population aged 15-24 ranges from 8.8% in Italy to 18.9% in Cyprus. The ethnic composition of Gen Z in Europe also varies, with countries such as France, Germany, and the Netherlands having a higher proportion of non-white populations compared to countries such as Hungary, Poland, and Romania. Gen Z in Europe is generally highly educated, with a greater percentage pursuing higher education than any previous generation.

India

Gen Z represents the largest demographic group in India, with an estimated 472 million individuals aged 24 and below. The demographic profile of Gen Z in India is highly diverse, with a variety of languages, religions, and cultures represented. Gen Z in India are bilingual, with English and Hindi being the most commonly spoken languages. Regarding gender, there are slightly more males than females in this age group.

Southeast Asia

In Southeast Asian countries such as Indonesia, Malaysia, and the Philippines, Gen Z constitutes a significant portion of the population. According to the Asian Development Bank, the percentage of the population aged 15-24 in Southeast Asia ranges from 14% in Thailand to 22% in the Philippines. The ethnic composition of Gen Z in these countries is diverse, with a variety of ethnic groups and languages represented. Regarding gender, there are slightly more females than males in this age group in some countries, such as the Philippines.

Gen Z Behavioural Trends

Gen Z has grown up in a world where digital technology is ubiquitous. As a result, they have a strong preference for digital communication channels, such as social media, messaging apps, and video conferencing.

According to a report by Snapchat, Gen Z spends an average of 3.4 hours per day on social media, and 63% of this generation prefers to interact with businesses through social media channels. This trend presents an excellent opportunity for marketers to reach Gen Z effectively by creating engaging content for social media platforms.

Another major behavioural trend among Gen Z is their interest in social and environmental issues. Gen Z is more socially and environmentally conscious than any previous generation, and they expect businesses to take a stand on issues that are important to them. According to research, 62% of Gen Z respondents worldwide believe that companies have a responsibility to take a stand on social and environmental issues. This trend presents an opportunity for marketers to align their brands with causes that matter to Gen Z and to communicate their social and environmental impact effectively.

Gen Z also values personalisation and authenticity. They expect businesses to tailor their products and services to their individual needs and preferences, and they respond positively to authentic and transparent brands. A survey found that 53% of Gen Z respondents in the United States are more likely to buy from brands that provide personalised recommendations, and 72% are more likely to buy from brands that are transparent about their business practices.

Case Study: Nike

Nike’s “You Can’t Stop Us” campaign is an excellent example of a marketing campaign that successfully targeted Gen Z by addressing their behavioural trends. The campaign highlighted Nike’s commitment to social issues, including racial justice and gender equality, while emphasizing personalisation and authenticity. 

As demonstrated through split-screen video edits, the campaign’s message of resilience and determination resonated well with Gen Z, resulting in increased engagement and brand loyalty.

Case Study: Greggs 

Greggs is a UK-based bakery chain that successfully targeted Gen Z by aligning its brand with social and environmental issues. In 2019, Greggs launched its vegan sausage roll, which became a viral sensation on social media, with the hashtag #vegansausageroll trending on Twitter. The launch of the vegan sausage roll was part of Greggs’ broader strategy to appeal to Gen Z, who are more likely to follow a plant-based diet than any previous generation. The vegan sausage roll’s success helped Greggs increase its sales and improve its brand perception among Gen Z, who saw the company as innovative and socially responsible.

Case Study: Grab 

Grab is a ride-hailing and food delivery company that successfully targeted Gen Z in Southeast Asia by focusing on personalisation and authenticity. Grab’s “Personalise Your Journey” campaign aimed to show Gen Z that the company understands its individual needs and preferences. The campaign involved a series of short videos highlighting how Grab’s services can be tailored to each user’s preferences, such as music and temperature settings in the car. The campaign increased engagement and loyalty among Gen Z users, who saw Grab as a brand that values their unique identity and preferences.

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Gen Z Consumption Habits

Gen Z has a unique set of consumption habits shaped by their digital upbringing, interest in social and environmental issues, and focus on personalisation and authenticity. Understanding these consumption habits is essential for marketers who want to engage effectively with this generation.

Preferred Shopping Channels

Gen Z prefers to shop online and is likelier to use their mobile devices than any other generation. According to a survey by Hootsuite, 54% of Gen Z respondents in the United States prefer to shop online, and 72% use their mobile devices to make purchases. This trend presents an opportunity for marketers to create mobile-optimised e-commerce websites and mobile apps that provide a seamless shopping experience for Gen Z.

In addition to online shopping, Gen Z also values physical stores that provide a unique and immersive experience. A survey found that 59% of Gen Z respondents in the United States prefer to shop in stores that offer an immersive experience, such as augmented reality or virtual reality. This trend allows marketers to create innovative, engaging in-store experiences that resonate with Gen Z.

Products They Buy

Gen Z has diverse interests and preferences regarding the products they buy. They are more likely to purchase products that align with their values and beliefs, such as social and environmental issues. A survey by NPD Group found that 83% of Gen Z respondents in the United States are more likely to buy products that support social and environmental causes. This trend allows marketers to create products and services that align with Gen Z’s values and beliefs.

Decision-Making Process

Social media and peer recommendations heavily influence Gen Z’s decision-making process. According to a survey by Common Sense Media, 43% of Gen Z respondents in the United States trust peer recommendations over advertising when making purchase decisions. This trend allows marketers to leverage influencer marketing and user-generated content to effectively reach and engage with Gen Z.

Case Study: Fabletics

Fabletics is a women’s activewear brand that has successfully targeted Gen Z in the US by aligning its brand with the consumption habits of this generation. Fabletics’ subscription model and personalised shopping experience have resonated well with Gen Z, who value convenience and personalisation. 

Fabletics offers a monthly subscription service that provides members with personalised activewear outfits based on their style preferences, body shape, and fitness goals. The company also allows members to skip a month or cancel their subscription anytime, providing a flexible and convenient shopping experience that resonates well with Gen Z.

Fabletics’ focus on diversity and inclusivity has also resonated well with Gen Z. The company offers a wide range of sizes and styles, including a plus-size collection that promotes body positivity and inclusivity. Fabletics also partners with non-profit organisations that support women’s health and wellness, aligning the brand with social issues that matter to Gen Z.

Fabletics’ success with Gen Z is reflected in its highly engaged social media following, with over 2 million followers on Instagram and a highly active community of brand advocates. By aligning its brand with the consumption habits of this generation, Fabletics has become a popular choice for Gen Z women who value convenience, personalisation, and inclusivity.

Case Study: Zomato 

Zomato is a food delivery and restaurant discovery platform that has successfully targeted Gen Z in India by aligning its brand with the consumption habits of this generation. Zomato’s user-friendly mobile app and website have resonated well with Gen Z, who value convenience and personalisation. In addition, Zomato’s focus on sustainability and ethical sourcing has appealed to Gen Z’s interest in social and environmental issues. Zomato’s success with Gen Z is reflected in its rapidly growing user base, with over 80 million monthly active users as of 2022.

Case Study: Depop 

Depop is a fashion marketplace that has successfully targeted Gen Z in the UK by aligning its brand with the consumption habits of this generation. Depop’s mobile app allows users to buy and sell unique, vintage, and sustainable fashion items, which aligns with Gen Z’s interest in personalisation and sustainability. In addition, Depop’s focus on community building and peer-to-peer selling has appealed to Gen Z’s desire for authentic and transparent shopping experiences. Depop’s success with Gen Z is reflected in its rapidly growing user base, with over 30 million registered users as of 2022.

Understanding the consumption habits of Gen Z is crucial for marketers who want to engage this generation effectively. Gen Z prefers online shopping and values physical stores that provide an immersive experience. They are more likely to buy products that align with their values and beliefs, such as social and environmental issues. Social media and peer recommendations heavily influence their decision-making process. Marketers can create impactful campaigns that resonate with Gen Z by aligning their brands with these consumption habits. 

Gen Z Marketing Strategies

Gen Z has a unique set of consumption habits, which requires marketers to use innovative and effective marketing strategies to reach and engage with this generation. Here are some of the most effective marketing strategies for targeting Gen Z:

Social Media Marketing

Social media marketing is one of the most effective strategies for reaching and engaging with Gen Z. This generation spends an average of 3.4 hours per day on social media, making it an excellent platform for marketers to reach them. To be successful, social media marketing needs to be personalised, engaging, and authentic. Marketers must create content that aligns with Gen Z’s interests and values, such as social and environmental issues, diversity, and inclusivity.

Influencer Marketing

Influencer marketing is another effective strategy for reaching and engaging with Gen Z. This generation trusts peer recommendations over advertising, making influencer marketing a powerful tool for marketers. Influencers are highly influential among Gen Z, and they can help brands reach this generation in an authentic and engaging way. However, working with influencers who align with the brand’s values and messaging is essential to avoid being inauthentic or disingenuous.

Experiential Marketing

Experiential marketing is a highly effective strategy for engaging with Gen Z, who value unique and immersive experiences. This strategy involves creating brand experiences that provide a tangible and memorable connection with the brand. For example, a pop-up store or event can create a powerful connection with Gen Z by delivering an immersive and engaging experience. This strategy can build brand awareness and loyalty among this generation.

Case Study: Taco Bell

Taco Bell is a fast-food chain that has successfully targeted Gen Z using innovative marketing strategies, including social media, influencer, and experiential marketing. Taco Bell’s highly engaged social media presence has helped it to connect with Gen Z, who value personalisation and authenticity. 

The company has also leveraged influencer marketing to reach this generation in an authentic and engaging way. For example, in 2019, Taco Bell partnered with influencer David Dobrik to launch the “Belluminati” campaign, which generated over 3.4 billion impressions on social media.

Taco Bell has also used experiential marketing to create unique and immersive brand experiences that resonate with Gen Z. In 2019, the company opened a hotel in Palm Springs, California, which provided a highly immersive and engaging experience for fans of the brand. The hotel sold out in just two minutes, demonstrating the power of experiential marketing in engaging with this generation.

Marketers need to use innovative and effective marketing strategies to reach and engage with Gen Z. Social media marketing, influencer marketing, and experiential marketing are some of the most effective strategies for targeting this generation. By creating personalised, authentic, and engaging marketing campaigns, marketers can build brand awareness and loyalty among this highly influential generation. 

Gen Z Campaigns from around the world

These examples demonstrate how successful marketing campaigns targeting Gen Z require creativity, authenticity, and a focus on emotions and experiences. 

Using tactics such as social media challenges, short films, and humour, these brands engaged with Gen Z meaningfully and created strong connections with this generation. The outcomes achieved, such as increased sales and widespread media coverage, show the power of effective marketing in reaching and engaging with this highly influential generation.

India – Lays

Lays’ “Smile Deke Dekho” campaign targeted Gen Z in India by focusing on humour and creativity. The campaign involved a social media challenge that encouraged people to create and share their own funny videos using a Lays chip packet. The campaign was highly successful, with over 7 million views on YouTube and widespread social media engagement.

China – Pepsi

Pepsi’s “Bring Happiness Home” campaign targeted Gen Z in China by focusing on family and community. The campaign featured a short film that showed a young man using Pepsi to connect with his family and bring them together. The campaign also involved a social media challenge encouraging people to share their family stories and experiences. The campaign was highly successful, with over 10 million views on YouTube and widespread media coverage.

Japan – McDonald’s

McDonald’s “Fry Thief” campaign targeted Gen Z in Japan by focusing on humour and creativity. The campaign featured a series of short films that showed people stealing fries from each other in various settings, from a park to a beach. The campaign also involved a social media challenge encouraging people to share their “fry thief” moments. The campaign was highly successful, with over 3 million views on YouTube and widespread social media engagement.

Understanding Gen Z as a consumer market is essential for marketers who want to engage with this highly influential generation effectively. By aligning their brands with the consumption habits and marketing preferences of Gen Z, marketers can create impactful campaigns that resonate with this generation and build long-term brand loyalty. 

Are you ready to take your marketing to the next level by understanding Gen Z as a consumer market? Download “The Definitive Guide to Gen Z” This guide is packed with valuable insights and data to help you create effective marketing campaigns that resonate with Gen Z.

Big data refers to the massive amount of structured and unstructured data generated by various sources in our digital world, such as social media, e-commerce transactions, and mobile devices. This data is characterised by its sheer volume, velocity, and variety, making it difficult to process using traditional methods.

“Big data will become the basis for competitive advantage, replacing the traditional competitive advantage of having the best resources, the best people, or the best strategy.” – Ginni Rometty, CEO of IBM.

The role of big data in market research is crucial in providing businesses with valuable insights into consumer behaviour, preferences, and market trends. Market researchers use big data to analyse consumer data and understand their purchasing habits, preferences, and opinions, which helps businesses make informed decisions about product development, marketing, and sales strategies.

Big data also helps identify potential market opportunities and challenges and understand the effectiveness of marketing campaigns. By leveraging advanced analytical techniques, such as machine learning and predictive analytics, market researchers can uncover patterns and relationships in consumer data, which can help businesses tailor their products and services to meet the needs and preferences of their target market.

The term “big data” was first popularised in the late 1990s and early 2000s, but the concept of handling large amounts of data dates back to much earlier. Here is a rough timeline of the history of big data:

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The outlook for big data is very positive, with demand for big data solutions expected to continue growing as brands seek to harness the value of their data and make more informed decisions.

Here are some of the key trends and factors that are shaping the future of big data:

  • Continued Growth of Data: The amount of data being generated is continuing to grow at an exponential rate, driven by the proliferation of connected devices, the Internet of Things (IoT), and the rise of new technologies such as artificial intelligence and machine learning.
  • Wider Adoption of Cloud Computing: The trend towards cloud computing enables companies to store and process large amounts of data more efficiently and cost-effectively, driving the adoption of big data solutions.
  • Increased Focus on Data Privacy: As consumers become more aware of the value of their personal data, there is a growing demand for solutions that allow them to control and protect their information.
  • Advances in Artificial Intelligence and Machine Learning: The continued development of AI and machine learning makes it possible to extract more value from big data, enabling companies to gain new insights and make more informed decisions.
  • Expansion into New Industries: Big data is no longer limited to tech-focused industries and is increasingly being adopted by a wider range of industries, including healthcare, retail, finance, and energy.

4 Ways Big Data is Changing Market Research

As previously mentioned, big data refers to large and complex datasets generated by various sources, including social media, e-commerce transactions, and mobile devices. The sheer volume, velocity, and variety of big data can make it difficult to process and analyse using traditional data processing techniques.

“Big data is more than just a matter of size; it is an opportunity to find insights in new and emerging types of data and content, to make your business more agile, and to answer questions that were previously considered beyond your reach.” – Tim O’Reilly, Founder, and CEO of O’Reilly Media.

Big data is changing the way market research is conducted in several ways. First, big data allows market researchers to gain insights into consumer behaviour and preferences at a scale that was previously not possible. With big data, researchers can track consumer interactions across multiple touchpoints, including online and offline behaviours, social media interactions, and purchase history.

Second, big data enables market researchers to gain more accurate and in-depth insights into consumer behaviour and preferences. With traditional market research methods, such as surveys and focus groups, it can be difficult to get a complete picture of consumer behaviour and preferences, as the sample size is often limited and the data is self-reported. With big data, researchers have access to a much larger and more diverse dataset, which can provide a more accurate and in-depth view of consumer behaviour and preferences.

Third, big data allows market researchers to conduct research in real-time, providing brands with insights into consumer behaviour and preferences as they happen. This will enable companies to respond quickly to changing consumer preferences and needs and make more informed decisions.

Finally, big data enables market researchers to use more advanced analytical techniques, such as machine learning and artificial intelligence, to gain deeper insights into consumer behaviour and preferences. With these techniques, researchers can analyse large and complex datasets, uncover patterns and correlations, and gain insights into consumer behaviour and preferences in a way that was previously not possible.

In conclusion, big data is changing the way market research is conducted by providing researchers with access to larger and more diverse datasets, enabling real-time research, and allowing for more advanced analytical techniques. As a result, companies can gain more accurate and in-depth insights into consumer behaviour and preferences and make more informed decisions.

The Benefits of Big Data

The use of big data in market research offers several benefits that can help brands gain a better understanding of their customers and make more informed decisions. Some of the key benefits of big data in market research include the following:

  • Ability to gather and analyse vast amounts of data: One of the biggest benefits of big data in market research is the ability to gather and analyse vast amounts of data. With traditional market research methods, such as surveys and focus groups, it can be difficult to collect enough data to make accurate and informed decisions. However, with big data, researchers can gather and analyse vast amounts of data from a wide range of sources, including social media, e-commerce transactions, and mobile devices, providing a much more complete picture of consumer behaviour and preferences.
  • Real-time insights: Another key benefit of big data in market research is the ability to gain real-time insights. Traditional market research methods can take weeks or even months to gather and analyse data, by which time consumer preferences and behaviours may have changed. With big data, researchers can gain real-time insights into consumer behaviour and preferences, allowing companies to respond quickly to changes in the market.
  • Improved accuracy: Big data also provides a more accurate picture of consumer behaviour and preferences than traditional market research methods. With traditional methods, the sample size is often limited, and the data is self-reported, leading to biases and inaccuracies. With big data, researchers have access to a much larger and more diverse dataset, which can provide a more accurate view of consumer behaviour and preferences.
  • Advanced analytical techniques: Finally, big data enables market researchers to use more advanced analytical methods, such as machine learning and artificial intelligence, to gain deeper insights into consumer behaviour and preferences. These techniques can help researchers uncover patterns and correlations in large and complex datasets, giving organizations a more in-depth understanding of their customers.

The Power of Predictive Analytics

Predictive analytics is a key component of big data and is increasingly used by companies to make informed business decisions. Predictive analytics involves statistical models, machine learning algorithms, and other techniques to analyse large and complex datasets and predict future events or trends.

In market research, predictive analytics can forecast consumer behaviour and preferences and predict the success of marketing campaigns, product launches, and other initiatives. By leveraging the power of predictive analytics, brandss can better understand their customers, make more informed decisions, and stay ahead of the competition.

One of the key advantages of predictive analytics is its ability to identify patterns and correlations in large and complex datasets. This allows brands to predict future consumer behaviour and preferences and identify key drivers of consumer behaviour. For example, predictive analytics can identify the factors influencing consumer purchasing decisions, such as brand loyalty, price sensitivity, and product quality.

Another advantage of predictive analytics is its ability to provide real-time insights. Traditional market research methods can take weeks or even months to gather and analyse data, by which time consumer preferences and behaviours may have changed. With predictive analytics, organisations can gain real-time insights into consumer behaviour and preferences, allowing them to respond quickly to changes in the market.

The Challenges of Big Data

Despite the many benefits of big data in market research, several challenges are associated with this approach. Some of the main challenges of big data include the following:

  • The need for advanced data management systems: One of the biggest challenges of big data is the need for advanced data management systems. Traditional market research methods typically collect data in a centralised and structured format, making it easier to manage and analyse. However, with big data, data is often collected from a wide range of sources and in a variety of formats, making it more challenging to manage and analyse. As a result, companies must invest in advanced data management systems, such as data warehouses, data lakes, and cloud computing solutions, to effectively manage and analyse big data.
  • The need for skilled data scientists: Another challenge of big data is the need for qualified data scientists. With big data, organisations must analyse vast amounts of data using advanced techniques, such as machine learning and artificial intelligence, which require a high level of expertise. As a result, companies must invest in training and development programs for their data scientists or partner with external firms with the necessary expertise to effectively leverage the power of big data.
  • Data privacy and security concerns: With the increasing use of big data, there are also concerns about data privacy and security. With big data, organisations must collect and store vast amounts of personal data, which raises concerns about data privacy and security. As a result, companies must implement strong security measures and comply with data privacy regulations, such as the General Data Protection Regulation (GDPR), to protect personal data.
  • Quality and accuracy of data: Another challenge of big data is the quality and accuracy of data. With big data, organisations must rely on data from a wide range of sources, including social media, e-commerce transactions, and mobile devices, which may only sometimes be accurate or up-to-date. As a result, companies must validate and clean the data they collect to ensure its accuracy and quality.

Big Data Gone Wrong

There are several examples of big data gone wrong that are worth mentioning. One such example is the Cambridge Analytica scandal, where the data analytics firm gained unauthorised access to the personal data of millions of Facebook users, which was then used to influence political elections. This scandal brought attention to the potential misuse of big data and the importance of ethical considerations in its use.

“Big data is not about the data. It’s about creating insights, making informed decisions, and driving outcomes.” – Tom Davenport, Professor of Information Technology and Management at Babson College.

Another example is the concept of “fake news,” which has become increasingly prevalent with the rise of big data. The vast amounts of information available through big data can make it difficult to distinguish between credible and non-credible sources, leading to the spread of false information and misleading insights.

Finally, big data can also perpetuate existing biases and discrimination if the data used to inform decision-making is not diverse and representative. For example, facial recognition technology has faced criticism for having higher error rates for people with darker skin tones due to a lack of diverse training data.

These examples highlight the importance of responsible and ethical use of big data in market research and the need for companies to consider the potential consequences of their actions when leveraging big data to inform business decisions.

Integrating Big Data with Traditional Research Methods

While big data in market research offers many benefits, it is also essential to integrate it with traditional research methods, such as surveys and focus groups, to achieve a comprehensive understanding of consumer behaviour. This integration can help organisations:

  • Validate big data findings: By combining big data with traditional research methods, brands can validate the findings of big data and ensure the accuracy of their results. For example, by conducting surveys or focus groups, companies can gain insights into consumer attitudes and behaviours, which can be compared with the data collected from big data sources, such as social media or e-commerce transactions.
  • Gain deeper insights into consumer behaviour: Integrating big data with traditional research methods can also help organisations gain deeper insights into consumer behaviour. For example, by combining big data with focus groups, brands can gain a complete understanding of consumer attitudes and motivations, which can help them make more informed decisions.
  • Fill gaps in big data: Big data sources, such as social media and e-commerce transactions, only sometimes provide a complete picture of consumer behaviour. By integrating big data with traditional research methods, brands can fill gaps in their data and gain a full understanding of consumer behaviour.
  • Enhance the reliability of results: Integrating big data with traditional research methods can also enhance the reliability of market research results. By combining multiple data sources, organisations can gain a more accurate and comprehensive understanding of consumer behaviour.

The Role of Artificial Intelligence and Machine Learning

Artificial intelligence (AI) and machine learning (ML) are rapidly becoming an important part of big data in market research. These technologies are often used to automate the analysis of large amounts of data, making it easier and faster to gain insights into consumer behaviour. Some of the ways in which AI and ML are used in market research include:

  • Predictive modelling: AI and ML are used to create predictive models that can identify patterns and trends in big data. These models can be used to forecast consumer behaviour and make informed decisions.
  • Sentiment analysis: AI and ML can also be used to perform sentiment analysis on social media data, making it possible to gain insights into consumer opinions and attitudes.
  • Natural language processing: AI and ML are also used to perform natural language processing (NLP) on big data sources, such as customer reviews or surveys. NLP allows companies to analyse text data and gain insights into consumer behaviour.

In the future, AI technologies, such as ChatGPT, could play a significant role in market research. For example, ChatGPT could conduct virtual focus groups or customer interviews. This type of AI could provide a more natural and interactive experience for participants, making it easier to gain insights into consumer behaviour. Additionally, ChatGPT could automate customer feedback analysis, making it possible to gain insights into consumer behaviour in real-time.

Best Practices for Big Data Market Research

When conducting big data market research, it is essential to follow best practices to ensure the quality and accuracy of the data. Some of the best practices for big data market research include:

  • Focus on data quality: The quality of the data is critical for making informed decisions. Organisations should focus on collecting high-quality data from reliable sources, such as customer surveys or transactional data. Additionally, it is essential to clean and validate the data to ensure accuracy.
  • Ethical considerations: Big data market research raises significant ethical concerns like privacy and data security. Brands should be transparent about their data collection practices and obtain consent from participants. Additionally, it is crucial to secure and store data to protect sensitive information properly.
  • Integration with traditional research methods: While big data provides valuable insights into consumer behaviour, it is important also to integrate it with traditional research methods, such as focus groups or customer interviews, to gain a comprehensive understanding of consumer behaviour.
  • Data management and storage: The volume and complexity of big data requires advanced data management systems and storage solutions. Brands should invest in these technologies to ensure that they can efficiently store, manage, and analyse large amounts of data.
  • Collaboration with data scientists: Organisations may need to collaborate with data scientists or other experts to analyse the data and extract insights. It is vital to work with experienced professionals to ensure that the data is analysed accurately and effectively.

Big Data in Action

Big data has been used in various industries to inform business decisions and improve market research. Here are a few examples:

  • Retail: Big data has been used by retailers to analyse customer purchase patterns and improve inventory management. For example, retailers can use data on customer purchases to determine which products are in high demand and adjust their inventory accordingly.
  • Healthcare: The healthcare industry uses big data to improve patient outcomes and reduce costs. For example, healthcare providers use patient health records and medical procedures data to identify trends and make treatment recommendations.
  • Finance: Financial services companies use big data to improve risk management and fraud detection. For example, banks can use data on customer transactions to identify unusual patterns that may indicate fraudulent activity.
  • Marketing: Marketers use big data to gain insights into consumer behaviour and target advertisements more effectively. For example, companies can analyse consumer searches and social media activity data to determine which products and services interest consumers.

These are just a few examples of how big data can inform business decisions and improve market research. As technology evolves and the amount of data generated continues to grow, we will likely see even more innovative uses of big data in the future.

Final thoughts and Key Takeaways

It is worth mentioning that the role of big data in market research is constantly evolving. As technology advances and the amount of data generated continues to grow, the opportunities to leverage big data in market research are only increasing.

“Big data, if used correctly, has the potential to change the face of market research forever. By harnessing the power of advanced analytics, market researchers can uncover new insights and trends that were previously hidden in the data.” – Raj De Datta, CEO and Co-Founder of Bloomreach.

One key trend in using big data for market research is the rise of omnichannel data. Omnichannel data refers to collecting data from various sources, including online and offline interactions, to understand consumer behaviour comprehensively. With the rise of the Internet of Things (IoT) and the increasing use of mobile devices, the amount of omnichannel data available for analysis is snowballing.

Another trend in using big data for market research is the increased focus on data privacy and ethics. With the growing amount of data being collected and analysed, companies must ensure that they respect consumers’ privacy and adhere to ethical standards.

Key Takeaways

  • Big data refers to the vast amounts of structured and unstructured data generated by modern technologies, such as social media, online transactions, and IoT devices.
  • The benefits of using big data in market research include gathering and analysing vast amounts of data in real-time, gaining deeper insights into consumer behaviour, and making more informed business decisions.
  • Predictive analytics is a powerful tool in big data, as it can help brands identify trends and predict future behaviour.
  • The use of big data in market research is not without its challenges, including the need for advanced data management systems, skilled data scientists, and ethical considerations.
  • Integrating big data with traditional research methods, such as surveys and focus groups, can provide a comprehensive understanding of consumer behaviour and help companies make more informed decisions.
  • AI and machine learning play a significant role in big data, as they can help process and analyse vast amounts of data and improve market research.
  • Best practices for conducting big data market research include ensuring data quality, considering ethical considerations, and integrating big data with traditional research methods.
  • Real-life examples of big data in action include its use in personalised marketing, identifying consumer trends, and predicting future behaviour.
  • Despite the potential benefits of big data in market research, there are also possible consequences, including spreading false information, perpetuating existing biases and discrimination, and potential misuse of data. As such, market researchers must be aware of these potential consequences and ensure that they use big data in an ethical and responsible manner.

In conclusion, big data has already significantly impacted market research and is only becoming more important as technology advances, and the amount of data generated continues to grow. Market researchers who embrace big data and understand its potential benefits and challenges will be well-positioned to succeed in the future.

Imagine this: You’re scrolling through your social media feed and come across a product ad that catches your attention. The ad tells a story that speaks to your heart, making you want to learn more about the product and even consider buying it. This is the power of storytelling in product marketing.

In today’s crowded marketplace, it’s becoming increasingly difficult for brands to stand out and connect with their target audience. Storytelling provides a way for companies to create a lasting emotional connection with their customers by tapping into their hopes, fears, and desires.

Many companies and brands have successfully used storytelling in their product marketing. Take Nike, for example, whose “Just Do It” campaign tells stories of athletes overcoming challenges to achieve greatness. 

And there’s Coca-Cola, whose “Share a Coke” campaign tells the story of a simple act of sharing a Coke with friends and family, highlighting the brand’s values of happiness and togetherness.

But how can companies effectively use storytelling in their product marketing? In this article, we will explore the art of storytelling in product marketing, providing tips and guidance on creating compelling brand stories that engage customers and drive sales. We will also discuss the importance of understanding your audience, choosing the right channels for sharing your story and measuring the success of your storytelling efforts. So, let’s get started and discover the art of storytelling in product marketing.

The Power of Storytelling

In the world of marketing, storytelling is a powerful tool that brands can use to connect with their customers on a deeper, emotional level. By telling relatable and inspiring stories, companies can create a connection with their audience that goes beyond the product or service they offer.

Successful companies understand the value of storytelling. Apple’s “Think Different” campaign tells the story of how it differs from other technology companies, highlighting its innovation and creativity. This story inspires customers to see themselves as part of a community of people who are also “different.”

Dove’s “Real Beauty” campaign tells the story of how women should embrace their natural beauty. The campaign uses real women with diverse body types and skin tones and focuses on their stories and struggles. This story resonated with customers and helped Dove become a leader in the beauty industry.

Storytelling is a powerful tool in product marketing because it evoles emotions, connects with customers on a deeper level.

To quote Maya Angelou, “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” This is the essence of storytelling in product marketing: create an emotional connection with customers that lasts beyond the transaction.

Understanding Your Audience

To create a compelling brand story, it’s crucial to understand your target audience and their needs and interests. This knowledge allows you to tailor your storytelling to resonate with them and create a strong emotional connection.

Customers are looking for brands that align with their values and beliefs. They are more likely to engage with content that speaks to those values. A great example of this is TOMS Shoes, a company that donates a pair of shoes to someone in need for every pair purchased. TOMS promotes its ethos and tells a story of social responsibility and giving back. This story resonates with customers who value social impact and has helped TOMS become a leader in the ethical fashion industry.

Another example is Airbnb, a company that tells the story of “belonging anywhere.” The brand’s storytelling focuses on the unique and authentic experiences that customers can have when they use Airbnb, catering to the needs and interests of travellers who seek immersive and personalised travel experiences.

To understand your target audience and their needs and interests, it’s important to gather data and insights about their demographics, psychographics, and behaviours. This information can be collected through market research, customer surveys, and social media analytics.

Once you deeply understand your target audience, you can tailor your storytelling to meet their needs and interests. This can include incorporating their values and beliefs, using language and visuals that resonate with them, and telling relatable and inspiring stories.

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Creating Your Story

Creating a compelling brand story is an art that requires careful planning and execution. A strong brand story can engage customers, create an emotional connection, and differentiate your brand from competitors.

Here are some tips and guidance on how to create a compelling brand story:

Develop a relatable character 

Your story’s protagonist should be someone your target audience can relate to. This character should have struggles and challenges that they can identify with.

For example, the clothing brand Patagonia tells the story of Yvon Chouinard, the company’s founder, as a relatable character who embodies the brand’s values of sustainability and environmentalism.

Create conflict

A compelling story needs conflict to create tension and keep the audience engaged. This conflict could be anything from a problem your target audience faces to a challenge your company overcame.

The shoe company Allbirds tells the story of how they discovered a sustainable material to make their shoes, overcoming the challenge of finding an environmentally-friendly option in the fashion industry.

Provide a resolution

A resolution is the story’s conclusion, where the conflict is resolved. This resolution should satisfy the audience and reinforce your brand’s values.

The car company Volvo tells the story of how their cars prioritise safety, resolving the conflict of fear and danger on the road.

Use visuals and language

Your language and visuals should be consistent with your brand’s values and personality. This includes everything from the tone of your language to the colours and imagery you use.

The makeup brand Glossier uses playful and colourful imagery in its storytelling to reflect the brand’s personality and appeal to a younger demographic.

Choosing Your Channels

Once you’ve developed a compelling brand story, it’s time to share it with the world. Choosing the right channels for sharing your story can help you reach your target audience and create a lasting impact. 

Here are some of the channels you can use to share your brand story:

Social media

Social media platforms such as Facebook, Instagram, TikTok and Twitter are great for sharing visual and engaging content. According to Hootsuite, social media users spend an average of 2 hours and 24 minutes per day on social media. This presents a huge opportunity for brands to connect with their target audience and share their brand story.

The sportswear brand Lululemon uses Instagram to showcase their products and tell the story of their brand’s values and lifestyle. They also use influencer partnerships and user-generated content to create a community around their brand.

Email marketing

Email marketing is an effective way to reach customers directly and share your brand story.

According to Hubspot, email marketing has an average ROI of 38:1, making it a highly effective marketing channel.

The cosmetics company Sephora uses email marketing to share its brand story and promote its products. They send personalised emails based on customers’ purchase history and preferences, using language and visuals that resonate with their target audience.

Content marketing

Content marketing involves creating valuable, educational content that provides value to your target audience. This content can be shared on your website, blog, or social media platforms.

The furniture retailer West Elm uses content marketing to educate customers on interior design trends and share their brand story. They create blog posts and social media content that features their products in real-life settings and offers design tips and inspiration.

Measuring Success

Measuring the success of your storytelling efforts is essential to understand the impact of your brand story on your target audience. 

By tracking metrics such as engagement, conversions, and sales, you can evaluate the effectiveness of your storytelling and optimise your strategy accordingly.

Here are some metrics you can use to measure the success of your storytelling efforts:

Engagement

Engagement metrics include likes, comments, shares, and followers on social media platforms. These metrics can help you understand how well your target audience connects with your brand story.

Conversions

Conversions refer to your target audience’s actions after engaging with your brand story. This can include signing up for a newsletter, downloading a resource, or making a purchase.

Sales

Sales metrics include revenue, order value, and customer retention. By tracking these metrics, you can understand the direct impact of your brand story on your bottom line.

The role of Market Research and Storytelling

Market research is crucial in creating a compelling brand story that resonates with your target audience. By understanding your target audience’s needs, preferences, and pain points, you can create a brand story that is relatable and engaging.

Here are some ways that market research can help product marketers create a compelling story for their product:

Identify customer pain points

Market research can help you identify your target audience’s problems and pain points. By understanding their challenges, you can create a brand story that addresses these issues and provides solutions.

Determine brand values

Market research can help you identify the values and beliefs that your target audience cares about. By incorporating these values into your brand story, you can create an emotional connection with your audience.

Test messaging

Market research can help you test different messaging and brand story concepts with your target audience. By getting feedback from your audience, you can optimise your brand story and ensure that it resonates with your customers.

Storytelling is a powerful tool that product marketers can use to create a lasting emotional connection with their customers. By tapping into their hopes, fears, and desires, companies can tell compelling brand stories that engage customers and drive sales.

As competition in the marketplace continues to grow, the brands that can tell a compelling brand story will be the ones that stand out and succeed. 

A small startup named Gymshark partnered with a group of fitness influencers on Instagram to promote their fitness apparel line. The influencers shared photos and videos of themselves wearing Gymshark clothing with their followers, and the results were nothing short of astounding. Gymshark grew into a multi-million-dollar company in just a few years, largely thanks to its influencer marketing strategy.

This is just one example of the power of influencer marketing in product promotion. As consumers increasingly turn to social media to discover and purchase products, partnering with influencers has become a popular and effective way for brands to reach new audiences and leverage the trust and credibility that influencers have built with their followers.

In this article, we’ll explore the world of influencer marketing, and show you how to use this powerful strategy to drive sales and boost brand awareness. Whether you’re a product marketing manager, marketing executive, or head of market research, this article will provide you with a comprehensive guide to the ins and outs of influencer marketing and show you how to incorporate it into your product promotion strategy.

What is Influencer Marketing? 

Influencer marketing is a marketing strategy that involves partnering with individuals with a significant social media following. These individuals, known as influencers, can be bloggers, vloggers, celebrities, or simply social media users with a large following. 

Brands partner with these influencers to promote their products or services, leveraging the trust and credibility that the influencers have built with their followers.

One of the main differences between influencer marketing and other marketing strategies is how it relies on social proof and authenticity. Unlike traditional advertising, where the brand is the primary focus of the message, influencer marketing is all about the relationship between the influencer and their followers. 

By partnering with an influencer, a brand can tap into the trust and credibility the influencer has built with their audience.

The term “influencer” was first used in 2006 in a blog post by marketer Duncan Watts. Since then, the concept has exploded in popularity, and influencer marketing has become crucial to many brands’ marketing strategies.

 

Why Influencer Marketing Works. 

Influencer marketing has become a popular marketing strategy because it leverages the psychology of social proof, trust, and authenticity to drive sales and brand loyalty. 

Social Proof

Social proof is the idea that people are more likely to follow the actions of others when making decisions. In the case of influencer marketing, when an influencer promotes a product, their followers are more likely to trust and try that product. This is because the influencer serves as social proof, indicating that the product is valuable and worth trying.

Trust 

Influencers can build trust with their followers over time by consistently providing value and building relationships. This trust is important because it allows the influencer to promote products that feel authentic and genuine rather than pushy or salesy.

Authenticity

Influencers can create a sense of authenticity in their content by sharing their personal experiences and opinions. This authenticity is essential because it allows the influencer to connect with their followers on a deeper level, and build a sense of community around shared values and interests.

The influencer marketing industry is estimated to be worth $15 billion and is expected to grow to $84 billion by 2028, a clear indication of its effectiveness. 

The power of influencer marketing lies in its ability to tap into the psychology of social proof, trust, and authenticity and create a sense of community around shared values and interests. By partnering with the right influencers, brands can drive sales, boost brand awareness, and create a loyal customer base.

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Identifying the Right Influencers. 

When it comes to influencer marketing, it’s essential to find the right influencers for your brand and product. Choosing the right influencer can make all the difference in the success of your campaign. 

Here’s why it’s important to identify the right influencers and some tips for how to do so.

  • Audience Relevance: Audience relevance is one of the most important factors to consider when choosing influencers. You want to ensure the influencer’s audience fits your brand and product well. This means looking at factors like the influencer’s follower demographics, interests, and values.
  • Engagement Rates: Engagement rates are another essential factor when choosing influencers. High engagement rates indicate that the influencer’s followers actively engage with their content, meaning your brand’s message is more likely to be seen and heard.
  • Brand Alignment: It’s important to consider how the influencer aligns with your brand’s values and message. Choosing an influencer who shares similar values and aesthetics as your brand can help to create a more authentic and effective campaign.

In the UK, the beauty brand Glossier has also successfully identified the right influencers. The brand has worked with a range of beauty influencers who align with its message of natural, effortless beauty. This has helped the brand to build a loyal following and achieve massive success in the UK market.

Identifying the right influencers is crucial to the success of your influencer marketing campaign. By considering factors like audience relevance, engagement rates, and brand alignment, you can choose influencers who are more likely to connect with your target audience and drive results for your brand.

Creating an Influencer Marketing Campaign

Once you’ve identified the right influencers for your brand and product, developing a successful influencer marketing campaign is next. Here’s how to do it:

  1. Create a Clear Message: The first step in creating an effective influencer marketing campaign is to create a clear and compelling message. This message should align with your brand values and goals and resonate with the influencer’s audience.
  2. Set Goals and Metrics: Next, you’ll want to set clear goals and metrics for your campaign. This could include things like increasing brand awareness, driving website traffic, or boosting sales. By setting clear goals and metrics, you’ll be able to measure the success of your campaign and make adjustments as needed.
  3. Provide Guidelines and Content: It’s also vital to provide influencers with clear guidelines and content to share. This could include things like product photos, videos, or copy. By providing influencers with these assets, you’ll be able to ensure that the message is consistent and on-brand.

Clothing brand PrettyLittleThing launched an influencer marketing campaign to promote its festival line. The brand worked with various influencers attending music festivals that summer, creating a clear and consistent message around festival fashion. The campaign was a huge success, with PrettyLittleThing reporting a 15% increase in sales during the festival season.

Creating a successful influencer marketing campaign requires a clear message, clear goals and metrics, and clear guidelines and content for influencers to share. By following these steps, you can develop a campaign that resonates with your target audience and drives results for your brand.

Measuring the Success of Your Influencer Marketing Campaign

Measuring the success of your influencer marketing campaign is crucial to understanding what’s working and what’s not. By tracking key metrics, you’ll be able to see how your campaign is performing and make adjustments as needed. Here’s what to track:

  • Engagement Rates: Engagement rates are one of the most important metrics to track in an influencer marketing campaign. This includes things like likes, comments, and shares. High engagement rates indicate that the influencer’s followers actively engage with the content and are more likely to take action.
  • Click-Through Rates: Click-through rates are another important metric to track. This measures how many people clicked on a link in the influencer’s content and visited your website. High click-through rates indicate that the influencer’s followers are interested in your product and are more likely to become customers.
  • Conversion Rates: Conversion rates are the ultimate metric to track, as they measure how many people who clicked through to your website actually made a purchase. By tracking conversion rates, you’ll see how effectively your influencer marketing campaign drives sales and revenue.

It’s important to track these metrics consistently throughout your campaign and to make adjustments as needed. For example, if you’re not seeing the engagement rates you were hoping for, you may need to adjust your message or content to resonate better with the influencer’s audience.

Measuring the success of your influencer marketing campaign is crucial to understanding what’s working and what’s not. By tracking metrics like engagement, click-through, and conversion rates, you’ll see how effective your campaign is at driving sales and revenue. This will allow you to adjust as needed and ensure that your campaign delivers the results you need to achieve your business goals.

Legal Considerations

When working with influencers, ensuring that your campaign complies with relevant laws and regulations is important. In the US, the Federal Trade Commission (FTC) has issued guidelines for influencer marketing, requiring influencers to disclose sponsored content. This means influencers must clearly state when they are being paid or compensated to promote a product. Failure to comply with these guidelines can result in legal repercussions for the brand and the influencer.

In addition to following disclosure guidelines, brands should also ensure that they have clear contracts with influencers that outline the terms of the partnership, including payment, deliverables, and any exclusivity clauses.

Micro-Influencers

While many brands focus on partnering with macro-influencers with millions of followers, micro-influencers with smaller, more niche followings can be just as effective. Studies have shown that micro-influencers often have higher engagement rates and can be more cost-effective than macro-influencers.

Influencer Platforms

Various influencer platforms and tools are available to help brands find and work with influencers. These platforms can simplify the influencer marketing process, providing access to a wide range of influencers and tools for managing partnerships and tracking metrics.

One popular influencer platform is AspireIQ, which allows brands to easily search for influencers based on factors like audience demographics and engagement rates. The platform also provides tools for managing partnerships and tracking metrics like engagement and sales.

Influencer Marketing Trends

Finally, staying up-to-date on the latest influencer marketing trends and predictions can help brands stay ahead of the curve and create more effective campaigns. Some of the latest trends in influencer marketing include:

  • The rise of TikTok influencers: As TikTok continues to grow in popularity, brands are partnering with influencers on the platform to reach a younger audience.
  • The focus on authenticity: Consumers are becoming increasingly wary of inauthentic or forced influencer partnerships, and brands are responding by focusing on more genuine, long-term relationships with influencers.
  • The shift towards performance-based metrics: Brands are increasingly focused on measuring the ROI of influencer marketing campaigns and are using metrics like conversion rates and sales to evaluate the effectiveness of their campaigns.

Keeping up with these trends and others can help brands create more effective influencer marketing campaigns and stay ahead of the competition.

The role of Market Research in Influencer Marketing

Market research is a critical component of any successful influencer marketing campaign. By conducting thorough research, product marketing managers can gain insights into their target audience, identify the right influencers to partner with, and track the success of their campaign. Here’s a closer look at the role of market research in influencer marketing:

Before the Campaign

Before launching an influencer marketing campaign, it’s essential to conduct market research to identify your target audience and the influencers who are most likely to resonate with that audience. This could include analyzing audience demographics, social media behavior, and content preferences and conducting surveys and focus groups to gain deeper insights.

During the Campaign

Market research can also be valuable during the course of an influencer marketing campaign, as it allows you to track metrics like engagement rates, click-through rates, and conversion rates. This data can be used to adjust your campaign in real time, improving its effectiveness and ensuring you get the best ROI possible.

Post Campaign

After the campaign has concluded, market research can be used to evaluate its success and identify areas for improvement. This could include analyzing data on sales, brand awareness, and customer loyalty, as well as conducting surveys and focus groups to gain feedback from customers and influencers.

Who doesn’t want to learn from their hero? Nike celebrates their influencers and showcases them as inspirations. Their top posts featured the likes of Cristiano Ronaldo, Roger Federer, Rafael Nadal, and artists like Kendrick Lamar, Travis Scott, and Kevin Hart. According to Swaymap, over 1000 influencers tag @nike on Instagram each month. Nike has successfully used market research to inform its influencer marketing campaign is Nike. The company researched its target audience extensively and identified a group of influential sneakerheads on social media. Nike then partnered with these influencers to create content around its new product releases, significantly increasing sales and brand awareness.

Market research plays a critical role in influencer marketing, helping product marketing managers identify their target audience, choose the right influencers, and track the success of their campaign. By conducting thorough research before, during, and after the campaign, brands can ensure they get the best ROI possible and build a loyal customer base.

Influencer marketing is a powerful tool for product marketing managers and marketing executives looking to promote their products and build a loyal customer base. By partnering with the right influencers, creating a clear and compelling message, and tracking metrics throughout the campaign, brands can tap into the psychology of social proof and authenticity to connect with their target audience and achieve their business goals.

Key takeaways from this article include:

  • The importance of identifying the right influencers.
  • Creating a clear message.
  • Measuring the success of the campaign.
  • Leveraging market research to inform the campaign at every stage. 

Following these best practices, brands can create influencer marketing campaigns that drive sales, boost brand awareness, and build a loyal customer base.

Influencer marketing is an exciting and rapidly growing area of marketing with the potential to drive significant business results. By following the best practices outlined in this article, product marketing managers and marketing executives can successfully leverage the power of influencer marketing to promote their products and build a strong brand.

At Kadence International, we specialise in market research and can help you gain the insights you need to create a successful influencer marketing campaign. Contact us today to learn more about our services and how we can help you take your marketing strategy to the next level.

In September 2022, Kadence partnered with tSurvey, an Indonesian online panel firm, to examine how individuals reacted to digital and non-digital ads. The participants came from 10 big cities in Indonesia, with Jakarta holding the biggest percentage of this study at 44 percent.

According to the findings, 45% of the respondents watched ads on their social media accounts. Among the 88% of people who had Instagram accounts, 40% didn’t skip the ads on the platform. Likewise, from the 62% of respondents with YouTube accounts, 28% didn’t skip the ads. Yet, the number decreased to 21% for the 40% of the respondents with Facebook accounts.

By age, the 26-30-year-olds had the highest viewership percentage of ads on their social media compared to other age groups.

Respondents highlighted the following three reasons why they watched the ads: they planned to buy the product (58%), they found the visuals captivating (55%), and the duration was short (40%).

Lastly, the most watched product category was automotive advertising, with 57% viewership, followed by body care (56%) and face care (50%).

ad-viewing-behavior-spcoal-media-indonesia
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From the heart of the capital, we conduct market research across the Indonesian archipelago as well as the international area supported by our global offices throughout Asia, Europe, and the US – all tailored to meet your needs.

Got a project to discuss with our team? Get in touch today!

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.