Business owners use several marketing strategies to entice customers and increase profits. Some strategies succeed and reinforce sales, whereas other methods exhibit insignificant results. Market and data research is vital in determining the best marketing or advertising strategy. Data-driven market research is perhaps the most important tool for business owners when evaluating the market they are interested in engaging with.
What is the Purpose of Data Driven Market Research?
Data-driven market research provides business owners, managers and employers with a snapshot of customer buying habits. Recognizing buying trends help these businesses tailor their sales and marketing strategy to the customer, which ultimately results in increased sales. This process of market research includes collecting data on customers, then using this data to develop competitive marketing promotions and strategies. Data-driven market research aims to collect important information on consumers, such as their age, birthday, marital status, income level, and online activity. This can give business owners a more detailed understanding of their customers, and will help owners reach the needs, wants and expectations of their buyers at a personal and local level.
How do I Collect Data?
Compiling and collecting data on consumers for market research requires creative measures. The 'old school' in-store method of asking a series of questions and providing a form to fill out at the checkout might annoy or offend some customers, and could put employees in an awkward position. Business owners and managers who use creative methods are more likely to collect accurate and detailed information about their consumers. For example, employers can encourage their employees to gather quick information in-store at checkout in a conversational way, such as the buyers email address, home address or birthday. Customers are more likely to participate because supplying this information typically opens the door to promotional offers.
Collecting data from a digital marketing standpoint can be a bit trickier but there are several resources that can help. Services such as Hubspot can allow you to connect with your customers at a local level and gather information without being aggressive with re-targetting or pop-up ads. Creating a digital marketing strategy that proves you are the leader in your industry, while providing helpful information and tools, is enough to gather important data directly from your most active and engaged customers. After obtaining a customer's contact information, employers can create and send questionnaires, surveys or helpful tools/tips, to encourage feedback with consumer information.
I Have All This Data, Now What?
Data-driven research helps improve the efficiency and effectiveness of marketing campaigns. This information allows you to be in front of your customer when and where they are looking to purchase. Knowing and understanding the needs of customers helps managers construct a sustainable marketing strategy, which is essential to preserving a healthy customer base. Utilizing data-driven market research, allows owners to assess their customers' past and present buying habits. This creates a window into being able to predict future habits, and gives managers the opportunity to understand circumstances that impact buying decisions.
Are There Any Cons of Data Driven Market Research?
While data-driven market research is an effective tool for assessing your customers, this tactic doesn't always represent an accurate view. The reliability of the data is based on how accurate the input of customer information is. Employees can enter data inaccurately, and some customers will simply refuse to provide their personal information or data. Working with providers who specialize in data-driven research can help you fully understand the value of data and how it can be applied to your traditional and digital marketing strategies. This is a tool, and like any other, it has to be used properly in order to see positive results.