Ideal blend of Market Research & Customer Insights to Operational Success
Jan. 31, 2023
Companies opt for the latest trends and technologies in the modern business environment to drive growth. The traditional methods of research and gathering data have been discarded and switched to more upgraded versions. The company usually undertakes customer insights and market research to design its operational blueprint and accelerate progress.
Though these approaches appear similar, they provide a different value to the business in optimizing market results.
Market research is an abundant source to yield reliable outcomes for the brand that is existing or setting up in a particular industry. The process is undertaken through well-developed tools and techniques that access market facts and statistics. In comparison, customer insights have a precise landscape that analyses customer behavior and leverages the inputs to create an operational outline. It gives a perception that assists in sharpening the brand strategy.
Common strings for business
Despite the variation in scope and value addition, customer insights and market research are strongly aligned in the business arena. Any brand can view its present status in the market through these methods. So, it becomes easier to identify and counteract the necessary actions for business advancement. The methods provide authentic and reliable information, cutting down the unnecessary guesswork and thus leading to a more accurate business decision and building a competitive edge. Businesses can gain the advantage of understanding its consumer and market with the right blend of customer insights and market research. The business gets all the qualitative and quantitative inputs through these methods, so the combination is truly a successful match.
The methods share a common goal, i.e. driving information leading to business growth. However, there is no confirmed validation that the brand will conduct this research on a priority basis. If the products or services do not resonate with the customers, the brand doesn't move forward with these methods, as there are upfront costs in conducting both market research and consumer insights. But here is where the brand fails to understand the biggest blunder. Launching a new product without these two can cost a huge decline in numbers. Therefore one of the biggest alignments in both approaches is the elimination of missing the target or losing profits, market position, or any number of your customers.
Difference of approach in customer insights and market research
If the distinction is to be considered, market research and consumer insights have a quite precise mark of difference. Market research is the first step that connects to a bigger picture of analytics and data, while consumer insights are deep and granular in their approach. In a deeper sense, market research collects information on the entire market or industry with various methods like surveys, interviews, and focused groups. It works on the mission to identify opportunities and gap them up through a perfect brand marketing or product launch. It projects the industrial trends encompassing all the current and future needs in the market.
In one way, consumer research is a further continuation of market research where it precisely studies the data collected and predicts the audience behavior. The major purpose of customer insights is to analyze the data for creating actionable outlines necessary for the brand. It simply deletes the presumption and vague expectations so that the brand can work on delivering the exact needs of customers. The customer insights also promote the business in resolving all the questions related to attitude, perception, satisfaction, or product.
Preferences and Outcomes
Now the big question arises, when and where to use any of these approaches and what will be its certain outcome? Every business would have gone through this moment. So, by replying to this query, market research is the initial step in gathering information for organizational success. Suppose the business is new in the industry. In that case, it must go for market research as it focuses on providing a complete detailed package of everything that is going on in the particular industry. Or in other cases, if any established business is designing its new product or services, then pre-market research will deliver the right understanding of its promotional launch and branding strategies. The market research adds up in the leadership decisions that devise the phases for product development and ideal product market fit.
On the other hand, customer insights generate deeper knowledge of the brand, its perception in the minds of customers & strategy for the way ahead. If a business has good growth in sales, it must focus on customer insights, as this will give them a clearer picture of what customers are looking for. It can be a secret weapon to understanding how to improve customer satisfaction in different aspects & decide an approach for optimizing the products and using the inputs for future prospects. Since making money is a consistent procedure that should never stop & changes are also inevitable, not understanding the change and following the action plan blindly can result in loss. Taking customer insights into action is the best way to achieve success with boosted efficiency.
Consumer insights is a consumer-focused side of market research that works to impact relevant marketing and analysis of perception. While, market research generates a broader view of the market landscape, including demographics, competitors, and the latest trends. It is a strategy-based approach to have a precise industry overview but lacks the customer's perception. It is estimated that only half of the business decisions are prepared by using consumer insights data. Generally, the sectors of packaged goods and consumer durables have a greater dependence on consumer insights.
In the present scenario, the business world is working with digital technologies that consistently use smart wallets, apps, social media, and AI assistants to gather data. It leads to access to a big pile of data that delivers the inputs of market research and consumer insights. Therefore, today customer insights and market research have become an inseparable part of any business in yielding results.
Source: QDegrees, Media, Questionpro