Data-driven market research is the crux of every new and existing business. It serves as a source of vital information about a target market and provides the landscape for businesses to thrive. Data-driven Market research helps brands to survey the market terrain, get foreknowledge of a prospective market, and understand scaling trends that could affect products.
It also helps businesses identify the right audience, know the acceptable market price, and understand promotion channels. In a data-driven world where market research is key, there is a need to integrate the technology behind data computation with the orthodox method for increased product penetration.
Data-driven market research is grouped into Primary Market Research and Secondary Market Research.
Primary Market Research
The primary market research gathers information for brands via interviews and polls. With the use of technology, data is now easily derived without contacting the direct customer. Today, it is gathered through online forms, surveys, and polls.
Also, social media platforms like Facebook and Twitter give provision for market research on their platform through survey options. All of these channels allow product acceptability and target market information to be measured, collated, and interpreted with ease.
Secondary Market Research
On the other hand, Data-driven Secondary Market Research uses readily available data from established organizations and research institutes to determine a brand’s decision and predict the target customer’s attitude.
Third-party data is used to drive secondary research and provides access to varieties of information. For example, Facebook provides information about over 2 billion users on its platform. Data on user’s daily search and the frequency of search using pictographs and maps can be accessed on Google trends.
Data can be analyzed on apps like Google Analytics, IBM WATSON, Google Data Studio, and others. Also, a platform like Facebook can help you generate data and followers through shared content. It helps you do virtual market research by predicting the location, sales, and acceptability of your product.
Steps to Conduct Data-driven Market Research
Start your market research with a specific audience in mind.
Knowing your audience helps you determine who they are. This can be done through studying data sourced online, acquired from third-party platforms, or deduced by the market research consultant. More importantly, you have to be specific when considering your target audience.
Endeavor to understand customer’s purchase habits, what spurs their buying decision, and their location. This is majorly gotten by knowing your buyers’ persona. Follow this link to map out your target customers’ persona.
Next, you need to learn how to interpret and manipulate available data to suit your needs. The inability to meaningfully interpret data defeats the essence of data-driven market research.
Another way of extracting raw data is through the help of third-party research companies. This requires the help of an experienced Data Scientist. In this case, Crenov8 is recognized as a go-to company to source for the best digital market researcher who can harness data online for effective market penetration.
Finally, make sure you put the acquired data into good use and repeat the process. Evaluate your wins, improve your methods, and predict outcomes through information generated from the research. Having interpreted your data and derived information on how best to penetrate the market, use it judiciously.
Market research without data is a shot in the dark and a single pick in an ocean of a variety of opportunities. Don’t be stuck in a spot, use tech generated information to launch into that new market. Remember, Data is at your beck and call, use it!
Written by Joy Ejere Uche