15 September 2020
You’re not a numbers person.
In fact, you can’t stand having to pore over market research data reports. But, you know how important research analysis is for your business.
You want to know what your customers need and want and to develop products they will buy. You want to market your business effectively, but you’re not sure how.
Read on to learn about methods for analyzing data and how to interpret research analyses the right way.
Common issues in research analysis (And how to avoid them)
There are several issues common in research analysis. These issues are easily solvable. Below is a brief overview of some of the more general problems you’ll encounter in your methods for analyzing data.
You may not have the skills needed for market data analysis, which results in choosing incorrect data collection methods and drawing biased conclusions about your target audience. You might miss the statistical significance of your market research data and inaccurately subgroup your data.
When conducting research, you might fail to use the best recording method due to undefined outcomes. This will compromise the reliability and validity of any data you collect and make presenting the data that much more challenging.
To ensure your market data analysis is conducted effectively, you need a few key resources. These resources include a data analysis procedure and the best methods for analyzing data.
Data analysis procedure
When planning to incorporate research analysis into your business strategy, you need to create a procedure. The plan you create to evaluate any market research data you have collected will determine what actions and strategies you can take for your business’s growth.
1. Define the problem
Use a problem statement to identify gaps in your marketing strategy. There are three types of market research for you to consider.
- Exploratory: suggests solutions and new ideas
- Descriptive: determines the extent of market variable impact
- Causal: examines a cause and effect relationship
Depending on your product or service, you may need to conduct quantitative or qualitative research to understand your market and target audience. Qualitative research builds on itself, while quantitative requires more research from the outset.
2. Develop a research plan
After you’ve defined the problem for your market research data, you’re ready to develop a research plan. You’ll gather a primary round of data or that which is most relevant to your problem. Secondary data can provide additional information to support primary data, but may not be necessary, depending on your target.
To collect primary data, you’ll use pilot testing, ideally on your target audience. This testing can be done through a variety of tools, including:
- Questionnaires or surveys
- Mechanical devices
- Qualitative measures
Your research plan will help you collect the data you need most efficiently and effectively. It will also prevent your results from answering the wrong questions for your market or target audience.
Collecting and analyzing data
There is a multitude of ways to collect data. You can conduct interviews, such as arranged, intercept, or in-depth variations to perform quality data collection. Quantitative data may better suit your needs, though.
Methods for analyzing data
Multiple regression is a statistical method used to explain a dependent variable’s value, compared to changing independent variables. One example is comparing revenue to expenses for making said revenue.
Discriminant analysis classifies groups or products into categories to help find effective marketing strategies to act on.
Factor analysis determines connections between larger groups of market research data and identifies the strongest relationships. Factor analysis can help with understanding which things affect your target audience most directly.
Cluster analysis separates products into groups that overlap in distinct areas. When examining clustered research analysis, this will help you divide your customers into subgroups more accurately.
Conjoint analysis examines consumer preferences. It’s comprised of utility functions and the relative importance of product or service relevance to your target audience.
Multidimensional scaling combines multiple quantitative methods to compare competitor brands’ products or services.
Interpreting your research analysis
Once you’ve conducted the appropriate market data analysis, it’s time to present your findings to create actionable items.
The best way to present big data to external clients is to determine how the research analyses connect to your business strategies. If you struggle to understand the relativity, it might be helpful to consult a professional in business smart data, such as Kompass Solutions.
Segmenting and subgroups
Every business is unique and determining how you can best capitalize on potential B2B connections requires a level of understanding potentially beyond your professional scope.
Segmenting your audience into subgroups can provide the opportunity you need to create more impact in select target audiences. The more focused the impact, the more likely you are to align your business goals with your market.
Live data vs. tracked data
Data ages the second it’s recorded, but that does not diminish its value for research analysis. It’s important to recognize that tracked data provides important contextual information for live data.
Tracked data opens avenues for potential client leads while also making your live data more actionable more immediately. If you know the most important numbers of useful tracked data, you can use this to quickly analyze newer information provided by live data.
You’ll be able to recognize patterns over time which might indicate possible new strategies to implement in your business goals. It will also create the opportunity for a high-level view of your data to see what is and is not working.
Taking action on your research analysis
When looking for research analysis strategies to make the most of your big data, do not hesitate to consult a global B2B expert like Kompass Solutions.
Be sure to investigate more our content on data and market research to determine how we can you with your business needs. Feel free to contact us to inquire further about what we can do for you.