Consumer Market Research vs. Customer Insights: The Benefits of Both

Consumer market research vs customer insights: The terms are often used interchangeably. Yet market research and consumer insights employ different methodologies to gather different types of data, for similar — but yes, different — purposes.

In basic terms, customer market research is broad and more quantitative in nature; consumer insights are narrower in focus and more qualitative. Below, we’ll dive deeper into the differences between market research and consumer insights. We’ll also show how they complement each other to provide organizations with a better understanding of potential and existing customers along with actionable strategies and tactics to develop and strengthen relationships with consumers.

What is Market Research?

Customer market research collects data covering the breadth of an organization’s target audience. While demographic data — gender, age, household income and the like — can make up much of the findings, market research also uncovers consumer behaviors such as buying preferences and macro trends within the audiences. Because market research involves larger data sets, it can reveal that, say, men 25-34 with a household income of more than $100,000 are more likely to purchase prepackaged salad than those ages 35-54, or with a household income of less than $100,000, or than women of the same age and household income. To view trends, researchers will compare data sets over time.

Beyond data about the consumers within a target market, market research typically includes competitive analysis about the other brands vying for those consumers. In conjunction with knowledge of the segments that make up the audience, this information enables brands to identify potential gaps and opportunities within the market. In this way, customer market research can help organizations with their big-picture strategic decision-making: Is there enough demand to warrant expanding into a new geographic region? Should they launch a product-line extension?

What are Consumer Insights?

While market research reveals the “who” and “what” of customers and prospects, consumer insights delve more deeply into the “why”. Going back to our example above, while customer market research might have revealed that older men aren’t buying prepackaged salad, it wouldn’t necessarily explain why. Consumer insights, though, could reveal that it’s because no brands are targeting them, or they don’t understand the benefits of the product, or the prepackaged salads available feature ingredients they don’t like.

Because consumer insights are more tightly focused than market research findings, brands often use them to shape the tactics that will inform their strategies. If market research suggests a brand should expand beyond the East Coast to the Midwest, for instance, consumer insights would inform the marketing channels and messages it employs to reach its optimal audience there.

Market Research and Consumer Insights Methodologies

Because customer market research concerns itself primarily with facts, it often relies on existing public or private data from credible resources such as the Census Bureau and industry organizations. Primary research, such as consumer surveys, is added to the mix to fill gaps or support existing data. SWOT analysis, which examines strengths, weaknesses, opportunities and threats of the market overall as well as of various competitors, is a popular framework for presenting the data.

Researchers typically glean consumer insights via primary qualitative research. In addition to surveys, this might include focus groups and one-on-one, in-depth interviews. The types of questions that make up consumer insight research often differ from those asked in the course of primary market research, with more focus on the reasons behind an individual’s actions and more specificity regarding pain points and preferences. Because interviews and focus groups are time-consuming, adding social media listening and analysis — monitoring online conversations to gather insights into consumer sentiments and trends — to the mix can help bolster the data. When it’s time to present their findings, researchers often create customer personas.

Better Together: How Market Research and Consumer Insights Complement Each Other

One way to look at consumer market research vs customer insights is in cinematic terms. Market research pans the entire audience and marketplace as a wide shot, to set the scene of challenges and opportunities; customer insights home in on individuals within that scene with closeups to more precisely identify and understand them. While one could certainly make a movie entirely of panoramic views or closeups, it wouldn’t be the most interesting film to watch, nor would it give viewers much insight into the characters or the plot.

For a well-rounded understanding of its market and existing and potential audiences, a brand benefits hugely from leveraging both consumer insights and market research. Typically, an organization begins with market research to provide an overview of the marketplace and the audience, which helps it determine its strategic goals. Within the parameters of the market as defined by this research, a brand will determine the types of information it wants and from which audience segments. Applying these findings to the market research supplies a brand with actionable insights it can leverage to achieve its goals.

How Material Can Help with Your Market Research and Consumer Insights

At Material we bring decades of market research and consumer insights expertise to help the world’s leading brands solve their most complex challenges. Contact us today to learn how our market research and consumer insights services can deepen your understanding of your customers and improve your outcomes.

FAQ

What are the benefits of leveraging both qualitative and quantitative market research methodologies?

Quantitative market research reveals the who and what of a marketplace, including the demographics and behaviors of potential audiences and the competitive landscape. Qualitative consumer insights unveil the reasons behind the quantitative facts, such as why audiences make certain purchase decisions and what their needs and pain points are. Leveraging diverse methodologies empowers a brand to determine not only whether to expand or change its strategies within a market but also how best to do so.

How often should market research be done?

Consumer market research is not a one-and-done activity; ideally brands should conduct it on an ongoing basis so that they can detect marketplace changes and trends early on. Many organizations make a point of reassessing the marketplace annually to inform their strategy for the fiscal year. And brands should conduct in-depth market research before considering entering new markets, launching products or undertaking other major initiatives, as well as upon encountering significant declines in performance or changes in customer behavior.

What are some ways businesses can use consumer insights to improve business outcomes?

Consumer insights give organizations a deeper understanding of audiences’ wants, needs and dilemmas. With this knowledge, brands can tailor their products and services to offer consumers what they want and resolve their pain points. Businesses can also use the insights to optimize their marketing messages and channels as well as to improve the customer experience to address those consumer needs. By giving consumers what they want in the way they want it, brands can grow sales and market share, reduce customer churn and foster brand loyalty.