Investing in insights
Editor’s note: Sam Kritzer is project manager at Swytchback.
With so much passive and unstructured data at our fingertips, it’s both a blessing and a challenge for analytics teams. They face pressure to justify the time and costs of primary research while delivering real value. While we know that real consumer insights are no longer optional, how do we convince our colleagues that they are worth the continued investment?
At the core of any thriving business is informed decision-making. Hanover Research found that 95% of companies that use targeted data to inform their growth strategies saw increased revenue and 86% reported a 4x ROI. An investment in quality data and research helps us better understand market trends, customer behaviors and competitive landscapes. It’s not just about collecting information; it's about using our findings to shape strategies.
Example: A retail brand is looking to launch a new product line; insights help pinpoint the ideal target audience and refine the marketing approach to ensure a successful launch and more sales.
Six reasons consumer insights are worth the investment
Increased sales, improved customer loyalty and business growth
One of the biggest challenges for insights managers is showing just how valuable their insights really are. Thus, clearly measuring the return on investment becomes crucial. It's important to demonstrate how data-driven decisions lead to an increase in sales, improved customer loyalty and overall business growth. When we can show tangible outcomes tied to insights, we earn the backing of stakeholders and secure continued investment in our analytical efforts.
Agility is everything in today's market. Quick access to relevant insights means businesses can respond swiftly to shifts in the market or consumer preferences. An investment in robust analytics capabilities allows for that kind of agility.
Example: During COVID-19, companies that had invested in insights could pivot their strategies effectively, adapting to rapidly changing needs, while those that didn’t struggled to keep up.
Insights help businesses use resources wisely
When we understand what our customers really want, we focus our marketing efforts where they matter most, minimizing waste and maximizing impact. A consumer goods company leveraging insights can optimize inventory, ensuring they stock the products that are in demand while avoiding the pitfalls of overstocking items that don’t sell.
Insights lay the groundwork for innovation
When you understand what customers are looking for, organizations can spot gaps in the market and create new products or services that cater to those needs. A technology company that can analyze user feedback to improve its offerings will always be more competitive. It’s about anticipating what’s next and staying ahead of the curve.
Example: In the music industry, insights from streaming data can reveal emerging trends and listener preferences, allowing artists and labels to refine marketing strategies, create targeted playlists and tailor concert tours to maximize engagement.
Fostering a culture of data-driven decision-making across the organization
When teams feel empowered to use data in their everyday work, it encourages responsibility and a focus on continuous improvement. Training initiatives can help ensure that everyone understands how to leverage insights effectively.
A strategic investment for real ROI
While the pressure for better, faster and cheaper insights is real, we must remember that investing in high-quality insights pays off in the long run. By embracing advanced analytical tools, we can streamline research processes, making them more efficient without sacrificing data quality and accuracy.
Insights are necessary, not optional
Investing in insights is no longer a nice-to-have – it’s essential for navigating today’s complex business landscape. When we commit to understanding our customers and leveraging data, we’re not just making informed decisions; we’re setting ourselves up for lasting success. It’s crucial to communicate this value clearly and advocate for the importance of quality insights in our organizations.