Figure 1Marketing Research is Simple…
As a marketing researcher for over 30 years, I would like to think that I’ve learned a few things. So, I am going to dedicate my blogs to areas where I’ve had the benefit of experience, to share some of that experience with you.
For the first blog in the series, I thought I would write about a basic conundrum of the marketing research profession: what constitutes “good” marketing research.
First, what is the purpose of Marketing Research? The purpose can be summed up as gathering data and information from the marketplace, from consumers and/or customers about a problem or an issue facing an organization that provides insights to help make better decisions.
To accomplish this, you only need to do 3 things:
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- Ask the “Right” Questions…
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- Of the “Right” People…
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- At the “Right” Time.
Simple, right?
Well, perhaps simple, but not easy.
As my colleagues understand, meeting each of these three criteria can be a difficult challenge. Especially, in today’s high-tech, rapidly moving, “need-an-answer-now” environment, everyone is looking for shortcuts. Many businesspeople believe marketing research is so easy that just about anyone can do it. They believe that all you need is to:
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- Ask Questions…
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- Of People…
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- Whenever.
The keyword missing in the above shortcut scenario is “RIGHT”; meaning correct, relevant, valid, and effective.
Additionally, all three components must be present and work together, to result in effective research. You cannot ask the “Right” questions of the “Wrong” people or ask the “Wrong” questions of the “Right” people and expect the get actionable insights to make better decisions. And if the timing isn’t “Right”, if you are not able to provide the insights when they are needed, then your research is worthless.
Let’s take a simple hypothetical case. Assume that your company provides a consumer service, and the company is experiencing a high degree of churn, i.e., customers dropping your service for the competition. The “Right” questions would include measures such as overall satisfaction, satisfaction with key attributes, likelihood to renew a subscription, reasons for switching, etc. However, if you ask these questions only of your current customers, you will only tell half of the story. The “Right” people are your current customers AND the people who have recently become ex-customers. Questioning only your current customers will provide a picture of those who are loyal and will not identify all the issues leading to churn. Recently lost customers provide the contrasting information that will generate the actionable insights needed to address the problem.
Conversely, if you select a valid sample of current and recently churned customers, but ask irrelevant or biased questions, your results will lead to invalid conclusions. For example, if all competitors require a service contract, asking questions about whether a service contract is a problem, is at least a waste of time and could lead to misinterpretations. Also, if you ask biased questions, such as “How excellent was your experience with our customer service team”, your results can be positively skewed and could conceal real problems.
Finally, the timing must be “Right”. With every day that goes by, your company’s churn problem continues. If it takes three months to complete the research, it may be too late. Though you don’t want to take shortcuts in your research, you must plan and execute as quickly and as efficiently as possible to provide the insights necessary to resolve their problems in a timely manner.
I’ll address each of these three components of “good” research in greater detail in future blogs, with examples and case studies. For now, keep in mind that there are no shortcuts to “good” research; Ask the “Right” Questions, of the “Right” People, at the “Right” Time.
Carl Fusco is a Marketing Research and Consulting Executive skilled at directing the application of research techniques and insights to solve problems and support data-based business decisions. Over his 35-year career, Carl has built a reputation for quality, integrity, and creativity by establishing trust, credibility, and acceptance with clients and associates. He has built a proven track record of success in organizational management and leadership, research design and implementation, and analytic rigor and impact.
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