Consuming data-based insights to make business decisions requires a comprehensive outlook. The promise of behavioral data has not come to execution yet.
Considering the ongoing market situations, it is crucial to realize the significance of consumer data science. In order to remain competitive in the ongoing marketplace, organizations, brands, and agencies should have streamlined, fast access to the critical consumer-based data in place.
For the time being, the sensitivity around data collection, legislation, and responsible use has altered the business climate. With the external pressures from the widespread pandemic, societal upheaval and economic hardships are also triggering the demand for consumer insights to speed up. These consumers are changing their behavior and sentiment rapidly.
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Consumer Data in Market Research
In market research, the objective of consumer data has been behavioral data for a long – it often includes media consumption or purchase data. Due to difficulties in collecting such data, many marketers have switched to survey data as the basis of their insights. As a result, brands often ask consumers random questions to recall things for obtaining information.
For instance, if they watched TV last night, how much they spent on their previous online shopping, etc. However, these have their limitations too. Since businesses can discover data with a survey, the promise of behavioral data has not come to execution. Thus, even today, it is only a mode to obtain information about customers.
It is no secret that this approach provides only a small part of reality. Actually, to start understanding customers, marketers need to associate both types of data – behavioral as well as a survey. Hence, it has proved to be an elusive aim at its best for professionals in the market research industry.
Indeed, these low and dull user experiences have kept customers from accepting any methods that permit the collection of behavioral data. This is due to the low levels of trust in brands or, sometimes, the data collection process. As a whole, the practice is further hampering the progress of the marketplace.
Even legislation is creating significant consequences for the data collection system. Today, data has become a liability for many organizations, but consumers are getting exhausted due to their data collection practices. And this absence of clarity on the necessary data usually leads to misperception – resulting in blocked and unproductive marketing efforts.
Also Read: Impact of consumer insights on business decisions making
Cookies – that have been a vital element for data collection, are being phased out. Moreover, the majority of the industries have not been able to or been eager to compensate users efficiently to make it worth their efforts and while. According to Measure Protocol, nearly 78% of consumers expressed interest to associate with passive data collection – for suitable rewards.
The demand for consumer-based data will not vanish; instead it might increase- with the popularity of complexity and data sensitivity. Thus, for brands to establish the insights for decision making, they need to prioritize consumer needs. To begin with, communication is essential and to be compensated accordingly. This is time-consuming but critical to the upcoming consumer insights and market research.
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