1. The context for innovation in research
We have seen a dramatic meltdown over the past 12 months, where clients are evaluating value in expenditures, and the benefits derived.
This has slowed the growth of traditional research, but has been a welcome "wake up call" to those who see technology and innovation as possible ways of reducing the cost and increasing the accountability of research.
Resources have been trimmed and there has been a demand to be faster and more effective. This has resulted in staffing reductions in some cases and a greater focus on benefits to clients from researchers.
2. Online research, one solution -- if it can be shown to be trustworthy and valid
The need for speed by marketers to correct problems before they lose customers, and get to market quickly with new products and features, is the type of scenario which makes marketers receptive to new solutions, including the efficiency and reduced costs of collecting data online. The rush to move to this new methodology has, however, meant many are using it without understanding fully how to manage the quality aspects that are essential to obtaining valid data.
Clients in the West have shown concerns about the lack of consistency between results, differing panels, and often between different readings from the same panel. These issues can be addressed by correct research design and strategy, as well as professional panel management and appropriate weighting or modeling of the data outputs.
It is essential that a researcher is in the process to protect the integrity of the data and ensure the methodology delivers its promised benefits.
Weighting by demographics only is often not sufficient to represent your target population online.
3. Client-based customer panels, for fast ongoing feedback
A growing area of research, particularly online, is the use of "CUSTOMER" panels, often managed within the client organization.
Here are cost and time savings, once the panel is up and running! Clients can test advertising and product concepts instantly, and observe issues raised within a customer community, before they become market problems. When there is a need to benchmark this against the total market or other competitors' customers, this research can be supplemented using consumer panels.
4. Integration of primary data, and sales and customer data
Clients are starting to demand data which allows them to model their own customer data, to identify reasons for increases and decreases in purchases.
Given ethical constraints of market researcher companies, this is often done by providing client customer data to the researcher for integration into the analysis. The results are provided back in aggregate, providing insights on what "drives' purchasing behaviour, and this can be translated into actual $'s.
5. Data mining, modeling and choice models for more effective marketing
In the current financial climate, the cost of going to market and failing is driving more use of sophisticated research to select the best options, and ones which will generate the best ROI for expenditure. The same budget spent on above-the-line or direct marketing can have dramatically different impacts, depending on its targeting and communication strategy. This can be teased out prior to major expenditure.
6. Longitudinal research, to provide more valid indications of the effect of marketing
By following the same people over time and measuring their individual levels of awareness, brand perceptions, pre-disposition and usage of a product or service, and being able to observe their individual exposure to marketing activities, we can look at "cause and effect" relationships between specific marketing at given points in time, and changes to these measures.
7. Research comes of age!
Smart research has now been recognized as worth its investment. It is no longer something that keeps track of marketing activity, but a discipline that if well used will ensure appropriate products and campaigns are fielded, that generate high returns on investment. Where marketing is unlikely to achieve this, research is allowing marketers to limit expenditure and reduce costs.
Brian Fine is CEO of Australia Online Research.
