Market research technology falls under the umbrella of marketing technology (MarTech). Enterprises can use research technology to collect consumer data, then turn that data into actionable insights. This is one way businesses insulate themselves in the event of a recession by using market research data and insights to outmaneuver market conditions.
Continue reading as we explore four reasons why market research software is critical in a recession.
1. How Market Research Technology Cultivates Consumer Trust
ResTech helps companies obtain data on consumer preferences, habits, and expectations. When a product or service meets consumer expectations and conforms to their preferences and habits, this cultivates trust.
Research data can also be used to transform the customer experience (CX) by making businesses more customer centric. When you collect data on exactly what consumers want or need, then define the unmet needs in the wider market, you can directly target consumer pain points.
The Importance of Consumer Trust
- Trust in a brand, product, or company increases the likelihood of a consumer following through on a sale or transaction.
- When consumers trust a brand, they propagate that trust via word of mouth. This is known as consumer advocacy.
- High levels of consumer trust drive greater consumer loyalty. High levels of consumer loyalty lead to increased retention, which directly supports your enterprise’s revenue.
- For marketing teams, high levels of consumer trust drive engagement on social media platforms. Engagement increases impressions and reach, creating a feedback loop that increases engagement.
Gartner research shows 81 percent of consumers refuse to engage with brands they do not trust, and a further 89 percent disengage from a brand if trust is broken.
2. How Enterprises Use Research Technology to Gain Knowledge and Quickly Pivot Their Products and Services
A pivot typically occurs when an enterprise is playing catch-up with its competitors, hits a plateau in growth or revenue, or when one primary offering gains significant traction compared to secondary offerings.
ResTech is a powerful tool when businesses want to pivot their product and service offerings. It can help to:
- Obtain market research data to understand what consumers want or do not want. This data can be used to guide future business decisions.
- Ask a research panel directly about the strengths and weaknesses in existing product or service offerings. Redevelop offerings to overcome weaknesses and enhance strengths in accordance with market preference.
- Improve understanding of market conditions so the business can proactively adapt and change.
- Generate evidence to support the postponing or decommissioning of an existing offering. Re-focus resources on what generates the most business value.
3. How to Stay Ahead of Competition in Tight Markets Using Research Technology
A tight market is one in which supply is constrained such that demand exceeds supply. The spread between top and bottom sale prices is minimal, leaving little room to maneuver.
This is an area where market research software is valuable. When every product is highly available at the same price, you need differentiation in the form of personalization and customer experience (CX).
Enterprises should use research MarTech in the following ways to outmaneuver competitors:
- React Quickly – Tight markets quickly change in the face of new supply, cheaper supply, and consumer demand. Before you react, gather relevant market research data so decisions are data-driven according to market preference and parameters.
- Deliver Greater Quality and Consistency Than Competitors – There is an abundance of the product or service, so make sure you offer the very best service in your target niche to differentiate yourself. Use research to identify gaps in the market and to fill the gaps to capture an audience that is not catered to by your competitors.
- Manage Expectations, Retain Trust – Your customers are facing a shortage of a product. Where competitors may overpromise and underdeliver just to obtain a sale, you should avoid this. Consider the customer experience (CX) and only say what you can really do to cultivate long-term consumer loyalty. This ties back to consumer trust, where broken trust can lead most customers to disengage from your brand.
4. How to Use Market Research for Continuous Improvement to Offerings and Operations
Within a recession, enterprises should seek to continually improve their operations and offerings.
Continuous improvement goes hand-in-hand with market research. Enterprises should regularly conduct market research with a relevant research panel.
Using monthly research, as an example, would provide 12 touch points throughout the year. Each touch point is an opportunity to understand what is going well and what can be improved. Less time between each touch point means less time spent going in the wrong direction and greater opportunity for alignment with market preference.
A framework for continuous improvement:
- Collect data on market preference and behavior.
- Assess the current state of products or services against consumer preferences and behavior.
- Redevelop offerings or realign strategy to target consumer preferences and behaviors.
- In one month, collect more data on market preference and behaviors. Repeat the assessment and redevelopment phase.