Anyone who has spent a decent amount of time in the field of market research has plenty of anecdotes about companies that either didn’t see the value of research, or claimed they couldn’t afford it, only to find themselves with a financial calamity that properly conducted research would have circumvented.
A fairly recent study conducted by AcuPOLL Research showed that 80-95% of new product introductions fail. It’s been estimated that one out of every five thousand inventions progress to successful product launches. One third of all new businesses fail within their first six months.
Heaven only knows what percentage of business initiatives fail, or, perhaps more commonly, drain enormous amounts of company time and resources before being shelved for what could be any one of countless reasons.
The fact is, people make mistakes. All the time. Smart people, experienced people, successful people all make mistakes. They thought they were right, as they’ve been many times before; but they were wrong. Heck, ex-Federal Reserve chairman Alan Greenspan admitted he had put too much faith in the self-correcting power of free markets. The Rolling Stones’ Keith Richards didn’t think “Satisfaction” would be a hit. There are a million stories like these. There are a million books about stories like these.
So “What’s the cost” isn’t the important question about market research. The important question is “What will it cost me not to conduct market research”?
In a perfect world, all market research would be free from the personal biases of the researcher. However, research is always influenced by the researcher’s personal biases. The only question is the degree of influence.
If you pay very close attention, you’ll notice that most conversations contain misinterpretations, and presumptions that pass for understanding. For example, someone might say that they find a breath mint’s flavor to be “interesting”, which, if they’re someone who doesn’t like to say anything negative, is a way of saying they didn’t like it.
But unless one knows that person well, or is extremely perceptive, or ideally, probes deeper to see what they really meant, their use of “interesting” could easily be taken to be a positive appraisal.
A marketing research and advertising veteran of over 20 years tells of how he has observed over 100 focus groups in his career, and in virtually every case, he felt that some or much of the true meaning of the participants’ communications were not fully and/or accurately understood.
Every research firm will sell you on their superior listening abilities, their superb analytical knowhow, their people skills. But the only truly effective market researchers are those who are able to discern, moment by moment, whether the data they’re receiving is open to interpretation, and therefore requires more analysis.
Which really comes down to getting your ego out of the way.
Want a great marketing research tip? Don’t hire ColemanWick, LLC. or any research firm if all you’re looking for is a focus group or phone study. Wait, what are we saying?? We’ll take your money, and do a bang-up job for you.
But in truth, we can offer you much more than just survey results.
Tom H.C. Anderson’s site has some interesting commentary on the new role market research has come to play in business and culture. For instance, Lenny Murphy, co-founder of Rockhopper Research in Summit, New Jersey, says “In order to flourish in this new research world, we must transform our value prop as an industry from purveyors of data to insight consultants. It’s not about the tools any more, it’s about the strategic impact of what we learn.”
If you’ve read much of the ColemanWick site you’ll know that Murphy’s view matches our own.
Bob Lederer, Editor and Publisher of RFL Communications in Skokie, Illinois, takes this thought further: “Quality surveys and focus group research will no longer be a key differentiator, rather simply an entry cost. The next gen researcher is a data miner, text miner, new media expert, a management consultant and most importantly, an information innovator”, he says.
If you check out our Case Studies, you’ll see that ColemanWick will bring deep business insight to newfound data and help you make the most of it—in whatever way makes the most sense for your enterprise.
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