Understanding the needs and market research challenges of your target market is vital to the long-term success of any business. Logically, that knowledge should come from facts, not fiction and be based on extensive research and the careful analysis of the data collected. But market research is only effective when utilized in context and via informed and proven processes.

An Expert’s View

Recently, we had the pleasure of talking with Laura Patterson, president of VisionEdge Marketing, about her expertise in marketing performance management. She defines this practice as the “systematic management of marketing resources and processes to achieve measurable gain while maintaining quality in customer experience. ‘Measurable gain’ may be ROI, efficiency, engagement, or another predetermined goal of your marketing tactics.”

In a previous blog, we discussed types of market research and their uses. Before you can dive into conducting research, it’s important to look at your internal operations to avoid costly mistakes. Without this perspective, challenges will present themselves at every turn. As a solution, Patterson recommends a model for successful marketing performance that includes alignment, accountability, data-derived decisions and operational excellence.

4 Market Research Challenges

Patterson says the most common challenges facing her clients can be grouped into four categories.

• Strategically challenged. This can be a result of a lack of alignment, inadequate strategic skills, limited data to inform strategy, poor planning or planning processes or too much focus on implementing tactical programs that are not connected to a strategy. In Patterson’s words, “Marketing that is not aligned with the business commits random acts of marketing. It’s unclear how the marketing work is connected to the results of the business. Once you have alignment and understand what marketing is expected to do, then you can craft the appropriate plan.”

• Measurement challenged. In too many cases, companies don’t know how to select the right metrics, are challenged to collect the data required for measurement or have measures and metrics but don’t know how to connect them back to how marketing is adding value to the business. As Patterson states, “When you’re without clarity around the business outcomes, then it’s hard for marketing departments to select the right measure and metrics.” Clearly defined metrics and benchmarks are the only method to defining successes. “All the data in the world is only good if you use it,” she adds.

• Data challenged. Challenges with data can present themselves in multiple ways. Companies may have too much or not enough. According to Patterson, “You have to be careful about not boiling the ocean.” The quality of data may be poor or it is in so many places that marketers are unable to determine and agree on the “source of truth.” It may be spread across too many systems and difficult to aggregate. Effective databases and clarity of what information is in each system is essential. Data is necessary to make better decisions about customers, markets, products and the competition.

• Process challenged. This challenge can be defined by the lack of documented processes or workflows, or lack of discipline in using the processes, operational skills and capabilities. For example, attending a trade event can be an effective outreach initiative, but without a process and personnel to follow up and act, the initiative is useless.

Creating a Culture That Values Data Collection and Analysis

When it comes to effective marketing performance, often it isn’t about the individual initiative. It’s more about internal understandings and systems built for success. Sound and effective marketing is based on solid and defined foundation of research, data and operations. Patterson puts it like this: “Companies that conduct research see the value of data in making decisions; they embrace data, and have a hunger and passion for it. The practices take sponsorship at the top of the organization and in the ranks of marketing. It takes a culture of data, a culture of accountability and a passion for continuous improvement. It takes discipline.”