Your Guide To Big Data for Market Research

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In today’s modern markets, customers can access worldwide information to help inform their buying decisions. As a result, today’s market research strategies have changed dramatically. To respond to this change, businesses are relying on big data analytics show them where the trends are and when to deliver their products at the right time.

Using big data is showing some promising results. In a recent report, companies that used big data analytics enjoyed an eight percent increase in their profits. Those same companies saw a 10 percent decrease in their overall costs.

Want to learn more about how to use big data in your market research? Read further on why your business should use these analytics every day to make you stand out from your competitors.

What Is Big Data?

Big data refers to large volumes of structured and unstructured data that are extracted and studied. Big data analytics helps companies study this large volume of data to find patterns in customer behavior. When a company can recognize these patterns, they’ll know how to make better business decisions that target future customers.

Big data analytics are also connected to two other disciplines. These disciplines are called predictive and connected analytics. Predictive analytics calculates the probability of future outcomes based on historical data.

Connected analytics identifies customer behavior across many channels. This information integrates into a single connected data application dashboard. This kind of data analytics in business can help a company avoid over-marketing to existing or potential customers.

What is Market Research?

Market research entails methodically gathering data about consumers or businesses (the “market.”) Researchers then analyze this data to understand what each group needs the most.

Market research results can be used to help companies make informed decisions on their overall strategy, growth potential and operational needs. These results can also point in the direction of any potential new customer base to tap into.

What is Big Data MR?

Big Data Market Research (Big Data MR) is the combination of these two disciplines. In the old day’s “market research data” meant sales transaction data and click-through rates. But thanks to predictive and connected analytics, customer attitudes and buying behavior are a better indicator of where the next great trend or product should be.

How Do Companies Collect Big Data?

Big data can be collected in three different ways. Most will use all three methods. These methods include:

1. Purchasing data from a data broker
2. Asking a customer for their data
3. Monitoring customer performance

Companies will buy data from a data or broker. This data market originates from both private and public sources. For example, this data might include address change records, census data or DMV records.

Companies can also study customer actions by tracking consumer behavior on their company social media pages and website. They can also accumulate IP addresses from other devices that visit their website. Companies will use this data to construct personalized customer profiles and send out relevant advertising.

Companies can also check in with their sales and support staff. These two divisions will work side-by-side to evaluate previous customer reviews on whether they liked or disliked a product or service.

How Do You Collect Big Data?

Companies can begin collecting big data whenever they interact with customers. Examples of these interactions can include:

Contests

Contests are another way you can collect data on potential customers. Offering prizes or other genuine incentives will entice customers to compete.

Be sure your contest distributes a detailed customer entry form. This entry form should explain what you plan to do with their submitted information. You can make submitting these entry forms a condition to participating in the competition.

Polls

Companies can hand out customer surveys to ask for feedback and their contact information. You can also use survey results to improve services or build customer profiles. Consumers will be more cooperative with their personal data if they think you genuinely care about their experiences.

Transaction Data

Transaction records describe a specific event. Examples of transaction records include orders, billing invoices, and payments.

These records will always have numerical values like time measurements or how many people or objects were included in the transaction. Transaction data also includes in-store returns or phone conversations with customer service representatives. Companies can also gather data from inquiries with an online chatbot as well.

Reasons Why You Should Use Big Data in Your Market Research

Collecting and examining big data can pay off for your company well into the future. Your company will be able to please customers, increase efficiency and grow profits for many years to come.

Here are some specific reasons why you should start to incorporate big data into your market research efforts. Doing so can only boost your bottom line:

Creates a Competitive Advantage

Companies that use Big Data MR will surpass their competitors when they use predictive scoring. Predictive-scoring helps companies rank current and prospective customers based on the likelihood they’ll take a certain action. When business leaders have this data in hand, they can fine-tune their products to make them more appealing.

Supports Improved Business Decisions

Big data also supports another practice called data visualization. Data visualization summarizes raw data in a graphic format to allow business leaders to recognize problem areas to avoid. Data visualization helps highlight unforeseen complications before they become too big to fix.

Cuts Down on Inessential Business Costs

Big data market research shows you where to increase sales. It can also help you recognize which product campaigns are not working.

Big data analytics helps you estimate the value of your product campaign’s performance (or nonperformance.) You will be able to recognize which marketing avenues you should abandon. Campaigns that aren’t reaching the right customer base or costing you too much money will stand out.

Next Steps

Ready to incorporate big data into your next market research effort? Check your transaction records and any customer survey results you might have. Use the feedback from these tools to create relevant sales promotions based on what (they said) they want. 

Be sure to check our website for more helpful information on how to use data analytics to help you make key decisions. We offer comprehensive market research services that can move your business forward.

Let us show you meaningful insights to use big data to move your business forward. Get in touch with us today!

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