Business transformation represents the path to competitiveness; it means: improving service, improving efficiency and cost reduction, expanding into other markets, improving the capacity for innovation, diversification, and new businesses, are just a few of the essential objectives business objectives common across all companies.
Market research is an effective tool to drive that transformation. This is the collection of information that will provide insight into your customers’ thinking, their patterns and buying behaviours and their location, among many other factors. In addition, it will also help to observe market trends and keep an eye on what your competitors are doing. The role that researchers play in this scenario, is to streamline this process to successful business transformation.
The transformation into a successful and profitable brand is the goal for all businesses, and researchers play an integral role in streamlining this process to success:
Researchers Enable Transformation
Researchers should be considered as an essential component of a business plan; if market research does not indicate a demand for the product or service, the company’s proposal is most likely not viable.
Companies carry out market studies to achieve this business transformation, in order to identify new customers and learn from existing customers, make informed decisions, understand their competitors, test new markets, determine the viability of a new business, improve aspects of their business, as well as develop strategies among others. A compilation and analysis of information about consumers, competitors and the effectiveness of marketing programs will be made. The data that is collected through these sources can be quantitative or qualitative:
- Qualitative information is useful if you want to understand why people buy your products; the way they respond to your advertising, or the perception towards your brand.
- Quantitative information is based on statistics; and can be used to predict market penetration, future revenues, etc.
The work of a market analyst is to accurately inform business transformation. Starting with an analysis of how the market is and in what situation the company is currently, with this information, decisions based on data can be made in the future.
From there, the objectives to be achieved with this study are established and the methodology to be used in the study is defined, in addition to what the sources of information will be. In addition to the tools to be used, it is essential to select the size and type of the sample. Once we have all these points, market research professionals will have to collect the information using the right tools.
Transforming Customer & Competitor Understanding
Companies that listen to their clients and change to adapt to their need, will be more successful than those that do not: market research is a great channel through which they can listen to their customers and the researchers that make it possible.
Every multi-national company uses market research data to plan their strategies and make decisions. For example, Amazon, Twitter, Instagram and many more use research insights to inform their decisions in all areas of the business, whether it’s to develop a product or to attract customers.
Some examples of successful customer-centric companies that use market research to support their statements are:
- Southwestern used it to measure how passengers perceive services and be able to act on their reactions.
- Ford used market research to inform the design and creation of its new car models.
- Starbucks expertly employs market research to keep its offerings and marketing messaging in line with consumer sentiment.
- Lego, after a study, realized that only 9% of the main users of the toy were women. After concluding the market investigation, Lego launched a new line of toys called “Friends”.
- After the Super Size Me documentary, McDonalds conducted research into exactly what their customers thought of the brand, and launched a campaign to assure consumers that the meat they use is real. They have also changed part of their menu to include healthier alternatives, such as apple slices.
- Finally, Netflix are leveraging the subscription business model to discover what their customers want next. Insights such as these are derived from behavioural research, but they conduct other types of thorough market research as well in order to improve user experiences.
The transformation is a constant, continuous process that affects multiple dimensions of the company and the business. Consumers act under motivational elements and their behaviour changes over time; so, the review of the investigation should be considered periodically.
Internal Transformation
There are a variety of data sources that help in the investigation such as: Customers and competitors are the obvious ones, but even employees can be a pivotal source of insight for this purpose. Many companies love customer feedback, but only a handful have devoted as much energy to employee feedback systems. In an interview, Troy Stevenson, the former Vice President of Customer Loyalty at eBay stated, “For every dollar spent on employee feedback, companies spend hundreds of dollars on customer feedback.”
For internal transformation to take effect, it is necessary to involve all areas of the organization equally and ensure their commitment, through the development of participation and empowerment formulas, frequent communication that encourages feedback and an evaluation and recognition that motivates people in achieving the objectives of the change. Consequently, market research could also be a great channel to listen to their own employees on how to improve the business. In addition, utilising an internal communications platform is essential for any company, these allow a higher level of collaboration between employees and external collaborators, increasing productivity.
The Role that Researchers Play
A market study is extremely important. There are hundreds of ways in which accurate market research can drive a company in its transformation process, and that is why each company must conduct beneficial research. Business transformation is a complex and systematic process, where it is necessary to be accompanied by professionals who analyse and understand the levels of change to be made.
Researchers are integral in their role in business transformation; their primary goal is to direct and manage the transformation processes, to achieve sustained competitiveness in changing, complex market contexts, and facilitate improved decision-making and guarantee actionable research results.
The original version of this article appeared on the FlexMR Insight Blog and can be accessed here.
