Using Industry Research is Killing Your Business
by: Grant Gooding
Read Time: 3 minutes
Clients often seek our expertise in evaluating industry research they have acquired. While seemingly helpful, I typically offer a caution: relying too heavily on industry research can be perilous to your brand strategy.
For many, the appeal of industry market research is irresistible. It offers a window into the collective psyche of a target market, often with the promise of a game-changing insight that will lead to the promise of differentiation. However, the reality is that relying on industry research is more likely to make you blend in with your competitors, commoditize your offerings, and render your brand forgettable. Essentially, industry research can be a slippery slope leading your brand into obscurity.
The False Comfort of Industry Consensus
Relying on industry data creates a deceptive sense of security. It feels reassuring to follow the majority, assuming that if everyone is taking the same route, it must be the correct one. This phenomenon, known as conformity bias, stifles creativity and discourages risk-taking, which is typically in direct contrast with what is best for the organization.
Conformity bias makes differentiation nearly impossible and stifles innovation by compelling you to follow industry norms instead of focusing on your own unique ideas and instincts. This leads to tactics and strategies that mimic each other and flood markets with homogeneous product and service offerings. Moreover, the fear of deviating from industry norms naturally stifles experimentation and novel ideas; two things that fuel business growth.
Ditch the Industry norms and embrace Asymmetrical Research
Asymmetrical information is a term from economics that refers to a situation where you have more or better information than everyone else.
In marketing and sales, whoever has the best information wins and you can’t win if you have the same information as everyone else. By conducting proprietary research for your brand on your specific customers and prospects, you can uncover asymmetrical insights and create competitive advantages that will make client acquisition and retention easier and cheaper.
For example, imagine your industry research suggests that the older someone is, the less likely they are to be a customer. As a result, you and your competitors might start targeting a younger demographic. This is a common scenario we often encounter. However, the real insight might be that digital savviness, not age, is the true driver of purchase likelihood. This nuanced understanding drastically changes the messaging and tactics for acquiring new customers. By focusing on digital engagement rather than age, you can effectively capture potential customers, including the older population that others have likely overlooked or abandoned, giving you a distinct competitive advantage.
Many times, we see clients get underwhelming results as a result of vague or misleading insights from industry research. We can help them use asymmetrical research to discover the nuances that make up the true emotional drivers so they can differentiate and expose the true needs in their market.
Industry research often lures businesses with the promise of valuable insights that can drive differentiation and success. However, an over-reliance on this data can be perilous, leading to conformity, commoditization, and a lack of brand distinctiveness. Instead, businesses should embrace asymmetrical research—proprietary studies that provide unique insights specific to their customers. This approach enables companies to uncover competitive advantages, craft more effective marketing strategies, and stand out in a crowded marketplace. Remember, in a world where everyone is zigging, sometimes the biggest opportunity lies in the zag.