The Changing Role of Market Research in a Data Driven World
Much has been said about the rate of change in the world of marketing, but there has been decidedly less written about the implications that this will have on the industries that support it — particularly the Market Research industry. Like many others, Market Research will undergo a fundamental transformation within the next decade as brands seek to create Customer Experiences that are data-driven, automated, instantaneous, hyper-personalized, and delivered at scale. To create these experiences, the ways in which marketers use and understand research must change, giving way to a larger and more holistic view of customer insight and understanding.
THE CHANGING ROLE OF MARKET RESEARCH
With increasing amounts of behavioral and personal data readily available to track and measure, we are moving into an arena where customer behavior can be captured by information systems more efficiently, and effectively, than through surveys. One of the traditional difficulties with research is that customers cannot accurately say what they have done in the past or will do in the future. Big data removes the guess work. We now know how customers behave and are trying to understand the underlying motivations and factors behind that behavior. In other words, research is better suited to answer the ‘Why’, and not the ‘What’ or the ‘How’. Research is one component of larger ecosystem that works towards the joint aim of achieving complete customer understanding.
“The ways in which marketers use and understand research must change, giving way to a larger and more holistic view of customer insight.”
MOVING TOWARDS HOLISTIC CUSTOMER UNDERSTANDING
To affect behavioral change and create truly engaging experiences at every touch point in the customer journey, brands need to start with creating a holistic, or 360° view, of the customer. This means stitching together all the data sources that surround each customer in a way that is measurable and actionable.
Research is one of three main components that comprise a holistic view of customer understanding, alongside Customer Interaction data and Predictive Analytics. The key is leveraging and developing each component against a strategic vision of customer understanding and insight that you want to achieve — and not in isolation
1. Customer Interaction Data: What customers are doing
In today’s connected world, the volume and velocity of customer data is becoming infinitely more available to track, measure and analyze. Behavioral data allows you to understand the ways in which customers are interacting with your brand so that you can react in ways that encourage desired outcomes. Everything from digital, mobile, and social behavior to transactional data, to attitudinal and lifestyle data, even IoT, third-party, and syndicated data can be collected to understand how each customer is interacting with your brand at all times. Achieving a complete behavioral customer profile across every brand touch point should be the first step for every marketer.
2. Predictive Analytics: What customers will do
Algorithms and technology have advanced to a point where predictive analytics is now the best way to determine how your customers will behave. The use of advanced analytical algorithms can identify, quantify and predict customers’ behaviors and needs, while machine learning can continually glean insight and optimize the experience in real time. Applying predictive analytics and machine learning to your customer interaction data infinitely increases the amount of insight and understanding that you receive, and behavioral change you can affect. Models such as next best offer, engagement scoring, recommended product, and likelihood to purchase not only enhance and personalize the customer experience, they have a demonstrable impact on your bottom line.
3. Market Research: The Why behind behavior
In this ecosystem, research is focused on determining the Why behind behavior in a way that can be mapped to the holistic view of each individual customer. As research becomes more targeted on answering the Why, research methods such as Neuromarketing will adapt and evolve to better answer this question — becoming more advanced, analytical, data-driven, and focused on subconscious behaviour. This information can feed predictive models that will enhance and personalize experiences for that customer. Targeted research is a critically important tool in achieving complete customer understanding, allowing you to collect data that is strategically designed to be combined with behavioral insight and advanced analytical techniques.
WHAT THIS MEANS FOR MARKETERS.
It no longer makes sense for Market Research to exist as a siloed operation. In order to keep up with where marketing is headed, insights must be seen as a broader term that encapsulates multiple components to achieve full customer understanding. Marketers will need look at all data holistically and strategically use Market Research as a tool within a wider arsenal of understanding. Behavioral data is your key to customer understanding, optimized by predictive analytics and augmented with research. Research will play an increasingly critical role in understanding the underlying human rationale, motivations and desires that drive each customer’s current and anticipated behavior. As the world becomes more scientific, knowing when to use research to unlock the art of what drives a customer will be the key to staying one step ahead of your customers…and your competition.
