A Quick Guide to Market Research: The top 6 Methods and When to Use Them
by: Grant Gooding
Understanding your audience is one of the most intelligent and cost-effective strategies for improving your bottom line. As an expert in market research with extensive experience in customer insights, psychology, neuroscience, and research methodologies, I am frequently asked about the best research methods and their appropriate applications. Below is an overview of the most commonly used market research methods, along with my insights on their effectiveness and optimal use cases.
1. Focus Groups
Focus groups are small groups of typically randomly selected people led by a moderator to explore a topic or product more deeply. They are typically semi-structured and often have decision-makers or marketers observing behind glass or video.
Strengths:
-Teasing out new ideas
-Combines observation and context
Weaknesses:
-Expensive
-Limited diversity of audience
-Lack of statistical significance
-Groupthink
-Moderator bias
-Insights are subjective
When to Use Focus Groups:
Focus groups are becoming less popular as a research method due to their high costs and the increased awareness of psychological flaws inherent in the process. Issues such as groupthink, lack of anonymity, and experimenter bias, where the moderator unintentionally influences participants, contribute to these flaws. I rarely recommend using focus groups because of these significant weaknesses. Additionally, finding an experienced moderator has become increasingly difficult.
2. In-Depth Interviews (IDIs)
IDIs are one-on-one interviews that provide a deep dive into an individual’s thoughts, feelings, and experiences. IDIs are particularly useful when you need detailed, personal insights or when discussing sensitive topics that participants may not feel comfortable sharing in a group setting.
Strengths
-Allows for strong report building
-Gain deep thoughts and feelings
-Allows for exploration of ideas
-Immediate clarification and context
-Confidential
Weaknesses
-Extremely time-consuming
-Limited diversity of audience
-Lack of statistical significance
-Interviewer bias
-Insights are subjective
When to Use IDIs
In-depth interviews (IDIs) remain a valuable method for capturing qualitative insights. They are particularly useful when there are few total respondents, such as in specialty professions like neurosurgeons, politicians, and extremely high-net-worth donors. Additionally, IDIs are ideal when an organization needs to gather in-depth qualitative information to develop a customer journey map. I frequently advise our agency partners to conduct IDIs with their key stakeholder clients to build rapport and gather valuable insights.
My primary concerns with in-depth interviews IDIs are the lack of statistical significance, the subjectivity in interpreting the results, and the fact that they are often conducted by individuals with limited interviewing experience, which can introduce unintentional bias.
3. Surveys
Surveys are one of the most common forms of quantitative research and involve collecting numerical data to identify patterns, make predictions, and quantify behaviors, attitudes, or opinions.
Strengths
-Cost-effective
-Fast
-Insights are more objective
-Scalable
-Are typically anonymous
-Broad reach
-Can be statistically significant
Weaknesses
-Engagement bias
-Limited depth
-Lack of flexibility or follow-up
-Questions are typically poorly written
When to Use Surveys
Surveys form the backbone of our research and are a specific area of my expertise. They are simple, scalable, and cost-effective, making them one of the most widespread methods for better understanding your audience. Surveys are a good way to better understand your audiences and can be used in several productive ways.
My primary issue with surveys is not with the method itself but rather their ease of execution. This convenience leads to an oversaturation of poorly designed surveys, often created by individuals who lack the necessary expertise, resulting in misleading insights for their organizations.
4. Observational Research
Observational research involves watching and recording behaviors and interactions in natural settings. This method can be overt or covert and provides insights into how consumers behave in real-world environments.
Strengths
-Provides real-world context
-Deep qualitative insights
-Provides context to other research
Weaknesses
-Expensive
-Perceptions are subjective
-Lack of statistical significance
-Lack of control
-Data is challenging to analyze
When to Use Observational Research
P&G is well known for utilizing observational research, particularly in-home observation, to help with product development and understanding consumer behavior. Most organizations do not have the resources or expertise to execute or analyze observational studies so I rarely recommend them, however, I am a big fan.
5. Customer Analytics Research
Customer analytics research is the systematic analysis of customer data to gain insights into behaviors, preferences, and trends. Typically, the goal of this type of research is to predict the future behaviors of customers to aid in revenue and growth modeling.
Strengths
-Data is easy to collect
-Data is typically native
-Insights can be easily tied to a customer record
-Good at identifying inefficiencies
Weaknesses
-Can’t draw causal insights
-Easily get false positives
-Requires constant monitoring
-Gives a false sense of confidence by over-relying on data
When to Use Customer Analytics Research
I am a big fan of customer analytics research. It is a really valuable tool if you want to make operational or efficiency improvements to things like your sales funnel, predict the next purchase, or find red flags when you are going to lose a customer.
One of the aspects I appreciate most about customer analytics data is how it helps in forming strong hypotheses. By closely examining analytics data, organizations gain new insights into their customers, leading to deeper inquiries and a better understanding of customer behavior. Every organization should incorporate customer analytics research to some extent.
6. Emotional Research
Emotional research is a specialized method we developed, that goes beyond traditional techniques by quantifiably identifying the emotional resonance of ideas. This approach combines the depth of qualitative insights with the precision of quantitative data, providing a holistic view of consumer emotions.
Strengths
-Explains customers “why” behind their behavior
-Tells you what to say to which customer segments
-Can be applied to sales, marketing, and management
-Is statistically significant
-Is highly objective
-Can predict the success of new product or service ideas
Weaknesses
-Bias of the author of this article
-Possible response bias depending on the sampling
-You can’t execute yourself
-Does not aggregate behavior
When to Use Emotional Research
As a researcher dedicated to this methodology due to its overall effectiveness, I admit a bias towards it. This approach was developed out of frustration with the subjective and incomplete results provided by other research methods. Its capacity to uncover insights where other methods fall short makes it significantly superior.
Although it may not be perfect for every situation and does require time, investment, and focus, it is generally the most cost-effective market research investment an organization can make.
Choosing the Right Method
Selecting the appropriate market research method depends on your objectives, the nature of your product or service, and the specific burning questions you need answered. Here’s a quick take:
– Exploratory or Ideation Phase: Use focus groups or IDIs to gather deep, qualitative insights.
– Quantitative Validation: Employ emotional research to gather statistically significant data that validate qualitative insights.
– Behavioral Understanding: Opt for observational research and customer analytics to see actual behaviors in real-world settings and measure their frequency.
– Emotional Impact: Leverage emotional research to explain behaviors and quantify the emotional resonance of your ideas.