Market research and consumer insights research are nearly interchangeable concepts. While this may be partially accurate, there is a distinction between the term definitions and actual practice.
In recent times, there have also been discussions on whether consumer insights or market research will provide your firm with the finest data and outcomes. Many in the consumer insights camp insist that their approaches and methodologies are superior, whereas a comparable number in the market research community assert the same.
Both are abundant informational resources that can help you make better business decisions. In many instances, how the two can benefit your brand overlap.
However, it remains true that each fulfils a unique function. Defining the distinction between market research and consumer insights will help you determine whether to use each and how to maximize their effectiveness.
What is consumer insights research?
Consumer insights research is a subset of market research. It identifies the motivation and purchasing behaviour of targeted clients, answering the “why” question. It assists businesses and brands in comprehending client psychology, developing in-depth purchasing behaviour profiles, and gathering systematic data on customer requirements.
Consumer insights expand and enumerate the data collected during market research in order to draw relevant, detailed, and actionable conclusions and forecast audience reactions to a company’s brand, product, or service.
Using the results of consumer insights research, firms can modify their products and services to become more customer-centric, ultimately enhancing customer happiness.
What is market research?
According to the Encyclopedia Britannica, market research is the study of the needs of diverse markets, the acceptability of products, and strategies for expanding or exploiting new markets. Target markets are investigated and analyzed through market research. Researchers obtain information about consumers within a market through market research. It covers the gathering, analysis, and use of market data and market statistics.
Market research enables a business to identify its target market and obtain consumer feedback and other input regarding the product’s appeal.
Researchers conduct market research to assess the wants, needs, attitudes, and purchasing behaviours of the market, among other aspects. It enables them to comprehend and compare their products and services with their competitors’. It is also used to investigate new markets and comprehend the needs of consumers – both present and new – in the marketplace.
Market Research and Consumer Insights Intersection
Both market research and consumer insights depend on reliable and useful data to make informed decisions and determine how to maximize resources most effectively. Both seek to penetrate the minds of consumers in order to determine their behaviours and their underlying motivations. And both can assist you to interpret your company’s present market position and determine what you need to do to keep or expand that position.
Click to start enjoying the advantage of Survey54 for you
Although market research and consumer insights serve diverse goals, they do not usually exist in separate silos. In reality, market research studies are frequently accompanied by consumer insights to provide context for market data.
Market research and consumer insights: Typical use cases
Cast a wide net with Market Research
For instance, suppose you are introducing a new line of kitchenware and tools. You are aware that the market is extremely competitive, so you decide to conduct market research and choose the best locations to debut your brand.
At this phase, your market research may consist of evaluating home cooking trends through time, identifying trending subjects in home nutrition, and identifying possible market competitors (established and up-and-coming). You may also wish to determine who is discussing cooking at home (e.g., celebrities, influencers, industry leaders, etc.) and what they are saying. Determine which retailers are most frequently cited. Explore certain kitchen categories in further detail. Observe what people are purchasing. This information can inform your product development and marketing strategies.
Complement Market data with Consumer Insights
Next, you will need to supplement your macro market research with micro consumer insights. This may involve, for instance, creating buyer personas based on the influencers or interactions uncovered during market research. Learn about their cooking experience and demands, their disposable income, and their quality expectations, as well as other specifics that may affect your marketing strategy.
You may delve deeper into discussions about cooking at home, food preparation and planning, and even grocery budgeting. What themes do you observe? Are there more people who cook at home? Do they have less time and therefore require utensils that make cooking faster or simpler, or at the very least, easier to clean? By isolating these discussions, you may concentrate on specific intelligence. Utilize this information to build your messaging and select the products to give your customers.
Click to start enjoying the advantage of Survey54 for you
Understanding the numerous intricacies that can impact your customer insights is the most challenging aspect of this procedure. There exists a complicated ecosystem of genders, generations, professions, hobbies, and experiences, as well as consumer perception of your brand or category. Creating an accurate consumer profile that takes into consideration all of these factors is not an easy task, but it is one that brands must master.
Why do Brands Need Both Market Research and Consumer Insights?
When launching new products, entering new markets, or making decisions that will affect their customers, companies require both a “bird’s-eye view” and a “street view” of the territory. A high-level perspective provides general knowledge about a specific difficulty and serves as a starting point. However, brands require a comprehensive perspective to comprehend the complexities of the situation. These facts clarify the “why” behind the “what” and enable businesses to make more informed choices.
It is crucial to note, however, that while consumer insights may corroborate what you learn from market research, occasionally the findings reflect two sides of the same coin. Compared to market data, consumer insights may provide a dramatically different perspective on the situation. This is because the data may come from two distinct types of sources. When conducting market research, brands may examine industry-wide data from news media and other secondary sources, but not necessarily from the consumer’s perspective.
Using our kitchen firm as an example, the media may inform us that grocery prices are rising and consumers are eating out more. The reality, however, may be that consumers cook the same amount while reducing their grocery expenses by cooking with fewer ingredients. This, they may believe, helps them save money and reduce kitchen complexity. This gap may be substantial, and we may only discover it by comparing consumer insights to market research data.
Conducting market research and gathering customer insights can help businesses reduce the amount of uncertainty involved in decision-making. Avoid investing in the creation of a product or service that your target market will not buy. It reduces the likelihood that a poor product-market fit may harm the image and reputation of your brand. And most crucially, build effective messaging that resonates with your target audience by balancing information (market data) and personal feelings (insights).
Choose Survey54 for AI-Powered Consumer Insights
Any form of market research or consumer insights study is a significant endeavour. Market research is frequently the simplest of the two to manage because its questions and responses can be straightforward. However, brands cannot say the same about consumer insights.
The emotional component of consumer insights generates many nuances that brands must consider when making decisions based on this data. Word selection and tone can be perceived in a variety of ways. Not only must brands examine what customers are saying, but also how, when, where, and why they are speaking. Context is everything in consumer insights, which is why more brands are turning to AI-powered insights for more precision.
AI-enabled Consumer insights use algorithms to analyze digital data in real-time and transform data points into actionable intelligence. It saves time, sure, but its scalability and dependability can help brands advance with greater speed and assurance.
Safiyo by Survey54 employs AI to enhance the social intelligence of African businesses, both from a macro-level market viewpoint and a micro-level customer perspective. Our technology offers you access to real-time client feedback, allowing you to make significant changes to the customer experience. Monitor insights to assess your brand’s value at all times. To support new product concepts, segment your audience. And identify new industry trends before your competition.
Contact our team today for a professional guide on how to maximize our technology to scale your business.