Many companies spend small fortunes on market research every year, and while much of this research is valuable, and helps many smart marketers achieve amazing things for their companies, a lot of it is wasted. ‘We didn’t learn anything new’; ‘there was nothing actionable’; ‘the agency didn’t really do their job’; are all quotes I’ve heard from clients in the last month or so. And while there may be much truth in these statements, much of the blame also lies with clients. A really good market research brief will fix many problems. However, in my experience I’ve found one killer question to ask that guarantees an improvement in market research ROI.
The magic question which improves market research ROI – guaranteed
There are lots of steps that could be taken to improve the quality of market research – I’ve included a number of useful links at the end of this post!), but there is a really simple, brilliantly effective step to take. Ask a simple question, and ask it twice. Ask it once, at the very beginning of your market research process, and then again before you finally commit.
“what will I do differently as a result of this research?”
Market research is wasted for one of two reasons. Sometimes marketers have no idea what the market research might tell them, so have not thought through the potential actions that they might take. Secondly, marketers are already committed to going ahead with their plans regardless of the market research results. But hold on, surely marketers would only research if they knew what they would do as a result of their research, right? Before you shoot me down, telling me that this is crazy, let me give you three examples:
- A drinks marketer who, despite receiving research that the flavor profile wasn’t desirable, still launched the product. It failed.
- A sales director at a food company who, despite having data that one retailer’s stores had no influence at all on their targets shoppers, continued to increase investment in that chain.
- Countless organizations who continue to buy continuous market research (retail audits, consumer panels, advertising tracking) and yet take no discernable action other than to fill out their latest presentations and reports.
Yes, it’s as simple as that. Depending on the answer to this question, there are broadly two actions: either in focusing the research on what really matters; or in stopping the research dead in its tracks. Take some time out, and really think about what action would be taken. Would activity be changed, stopped or started; and how valuable would that decision and action be?
“what will I do differently as a result of this research?”
Answer one: Do nothing differently as a result of this market research
At this point the research should be stopped. If no action will be taken regardless of the research, then it is of no value at all. At the very least the market research should be completely reconfigured so that it will enable action.
Yes, these questions can work with continuous market research as well as ad hoc projects, though one should ask the question slightly differently. “What have we done in the last six months as a result of conducting this research?” If the answer is no, then it’s time to reconsider the market research investment.
Answer two: Yes, we’d do something differently as a result of the market research
Well – with this as an answer, we’re in a good place. There may still be an opportunity to focus the research questions or elements on the facts that are required to make the decision, or take the action. We can also value the impact of the action that would be taken, and compare it to the cost of the market research, enabling a very quick and simple calculation of the ROI of the research.
There are many flaws in the approaches taken to market research, but the most damning must be to consider and conduct research with no clear idea of the action that it might lead to
Try asking yourself this question, you might be surprised!
As promised, here are a selection of links to other posts on improving research effectiveness and research ROI
How to improve the value of your market research
How to double the value of your market research investment
The importance of the market research brief
How valuable is qualitative shopper research
How to get the most out of qualitative shopper research
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