How to conduct market research – sophistication made easy
Market research is the marketing team’s most powerful tool in their pursuit to deliver back to the business. To help marketing teams deliver work that brings real impact, Qualtrics outlines how to conduct market research that uncovers insights to act on.
As a new decade gets underway the marketing sector is faced with a strange paradox.
While budget levels are at their lowest since 2014, most marketing teams remain optimistic about budgetary growth in the years ahead according to Gartner.
One of the reasons for this optimism is businesses’ increasing focus on delivering great customer experiences. As part of their efforts to stand out organizations need to know the services and products their customers want, the prices they’re willing to pay, and what it is about their brand that makes people choose them.
Considering this hunger for insights, it’s no surprise market research and marketing analytics are listed by CMOs as the most strategically important capabilities.
For businesses asking how to conduct market research in today’s digital economy, we’ve outlined the six areas businesses must prioritize in their projects to collect and analyze data delivering meaningful outcomes:
1. Creative Testing
Did you know most consumers are exposed to between 4,000 - 10,000 ads per day?
These staggering numbers mean businesses have to work harder than ever for their marketing efforts to breakthrough. Being able to test the effectiveness of advertising helps brands understand which one will have the greatest impact on their marketing goals. Using insights from this research, marketing teams can allocate and direct resources to accelerate and optimize performance.
Finder, which is one of the world’s fastest growing online comparison websites, is an example of a brand using market research to inject some analytical rigor into the business. Fueled by great market research, the business lifted brand awareness by 23 per cent, boosted NPS by 8 points, and scored record profits - all within 10 weeks.
To take your creative to the next level, remember this saying from brand mastermind Bonin Bough: “People buy experiences, not ads.” Capitalize on this theory in your marketing campaign.
2. Product Concept Testing
The secret to great product development is research and testing.
Conducting market research into how a select group of consumers use and perceive your product - from how they use it through to what they like and dislike about it - is essential to lasting success. Evaluating your strengths and weaknesses early on allows you to focus resources on ideas with the most potential.
Chobani’s yogurt pouches are a product optimized through great market research. Using product concept testing, Chobani identified packaging could negatively impact consumer purchase decisions. Inspired by this insight, the brand made a subtle change ensuring the item satisfied the needs of consumers. This ability to constantly refine its products for customer needs and preferences has helped Chobani become Australia’s #1 yogurt brand and increase market share.
3. Pricing Testing
A great product is nothing if no-one will buy it.
Market research provides businesses with insights to guide pricing decisions. One of the most powerful tools available to market researchers is conjoint analysis, which uses choice modeling to help brands identify the perfect package and price for customers.
Conjoint analysis is most useful when you want to understand how a new product will perform in market, how to increase sales and willingness to buy and upgrade existing products.
Another valuable model is the Van Westerndorp Pricing Study. Businesses can simulate scenarios with a select group of respondents to find the optimal price point for their products and services. It helps maximize revenue margins by ensuring businesses do not charge too much or too little.
Platforms like Qualtrics enable businesses to capture important market research data, like conjoint analysis, and undertake instant analysis and action to ensure success.
Find out how Qualtrics helps you ensure the data you collect can be trusted to make important business decisions.
4. Customer Satisfaction Testing
Market research is equally important to the ongoing success of your brand. Customer satisfaction (CSAT) is one of the most important metrics for marketing teams to measure to continue improving customer experience, loyalty, spend, and acquisition.
CSAT allows market researchers to dig deeper into why customers choose to engage with them. It reveals the key experiences in the customer journey and how they influence the overall customer decision.
Alongside lasting success, measuring CSAT is useful for marketing teams wanting to analyze a specific interaction with the company or to understand satisfaction levels after an engagement.
Ultimately, CSAT tells you what your business should do more of, and what it needs to do less off.
5. Event Testing
Events are one of the marketing team’s most powerful tools to drive revenue and generate pipeline.
When done right, market research can help you understand how to make your events even better - from increasing engagement to building trust or personalizing engagement. The insights you can unlock will show how enjoyable events are, and the gaps to improve them.
The best Event Testing platforms use NPS and open text feedback, giving you direct feedback to act upon.
6. Brand Awareness and Performance Testing
Analyzing brand awareness and performance tells you how your marketing efforts rank compared to your competitors, and the impact they have converting prospects to customers.
The best marketing teams view awareness and performance data from a single marketing research dashboard. Being able to view your brand’s vital signs from one place increases the speed at which you can unlock insights - a key competitive advantage in today’s markets.
Making your market research easy to understand
Market research success is defined by the impact it has. Make sure it’s not discarded or ignored with these five easy steps:
- Less is more - Preface your report with executive summaries that highlight your key discoveries and their implications
- Give people only what they need - Share the top 4-5 recommendations in bullet-point form, rather than pages of analysis and data
- Model the impact - Provide examples and model the impact of any changes you put in place based on your findings
- Show, don’t tell - Add illustrative examples that relate directly to the research findings and emphasize specific points
- Speed is of the essence - Make data available in real-time so it can be rapidly incorporated into strategies and acted upon to maximize value
- Work with experts - Make sure you’ve access to a dedicated team of experts ready to help you design and launch successful projects
Make sophisticated research simple with Qualtrics
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