This blog post was featured in the December 2013 edition of the RMS Newsletter written by our President Mark Dengler.
A popular trend in the market research world is the use of big data for more effective decision making. The idea here is to use available data, many times collected by the company itself, and turn it into meaningful intelligence that can predict customer preference and drive increased business. Many large companies such as Amazon, Google and Target use consumer data to help identify consumer behavior patterns and preferences that can then be operationalized into marketing strategies. This approach has been effective and is certainly having an impact on the business environment. Big data is actually proving very useful in helping companies to connect the dots rather than uncover brand new insights. Examples of big data include things like consumer purchases, credit scores and lifestyle information. This information is then analyzed to predict customer needs. The use of big data is even more relevant because much consumer data is now digitized and easily collected in real-time and at a low-cost.
It is important to understand however that “data” is just “data”. In order for data to have value it needs to be analyzed and turned into information. This needs to be done by knowledgeable staff with the capacity to effectively interpret and understand the data values. Research analysts play a critical role in working with big data and transitioning it into decision-making information. What is exciting about big data is that it may well serve as a cost-effective means to help define key marketing strategies that achieve results. When our firm approaches a client’s research needs we begin by discussing what big data may be available to help drive market strategy development. Many times we are able to obtain needed information and keep costs low by mining big data rather than conducting primary research. In fact, by effectively incorporating big data into a study, the research team can more effectively drive the primary data gathering to a narrow segment and provide more value. Ultimately the blending of big data analysis and primary research produce a better, more cost-effective, market findings result.
Do you have big data analysis needs? Research & Marketing Strategies, Inc. (RMS) and Mark can be reached through the website at RMSresults.com, by email at MarkD@RMSresults.com, or by phone at 1-866-567-5422.