Market analytics needs to be generated and used continuously. By being aware of what is happening, you can plan, make relevant changes, improve and enhance things, as well as stand out among competitors.
As an agency which deals with market research and provides market analytics, we decided to compile a short list of reasons why the companies should use analytics.
- to understand the situation in the company and market environment
Company’s current situation is always a consequence of activities and decisions made in the past, as well as the impact of competitive developments, legislation, changes in consumer behavior, as well as various cultural and technological shifts. It is critical to understand what impact our solutions and activities have on the market and behavior of its players, and how external factors can affect our company in short and long-term perspective.
- to make managerial decisions
Choosing the best option from several ones is always a decision backed up by figures and quality information - both internal from previous periods and external from the market. E.g. pick the most promising market segment or test out promotional materials such as layouts, banners, videos, and key messages you wish to communicate to the target audience.
- to plan
If you have no clue where you are headed, ultimately it does not matter where you will get to. However, in the current environment, businesses can’t afford to fly blindly: you have to constantly plan resources, strategies, objectives, and make future forecasts. This is where information comes into the picture. By analyzing data obtained by the company in the course of its business activities, you will be more aware of your company’s competitive position, what its success depends on and how to plan further activities so that you not only maintain its position, but also stay ahead of the competition.
- to determine success factors
When something doesn't go quite right, you need to figure out why it happens and what factor contributed to it. Analysis is even more important when everything is going well: you have to identify success drivers to be able to focus on effective solutions in the long run and achieve successful outcome. An analysis of the behavior of consumers that opted for your business and those who prefer competitors will provide an insight into the factors affecting their decision, play to your strengths and focus on what competitors lack.
- to control
Once the decision is made, you need to monitor the results continuously. This will help identify the problem areas and make timely adjustments if need be, for instance:
- refine positioning strategy, marketing communications, promotion campaign, product strategy, and pricing policy;
- adjust loyalty scheme and incentive program;
- come up with new products and services;
- evaluate the quality of service provided by the company, etc.
Understanding the market environment, key trends and consumer’s unmet needs allows to identify free niches and offer new products or services.
Aside from that, getting regular feedback from the customers who use your products is highly valuable information which can help improve the quality of existing products and services in order to meet the needs of the target audience to the fullest.
When it comes to business, everything - information, tools, and people - is aimed at achieving the key goals: allow the company to get stable competitive advantages, become high-margin, and expand its influence in the market.
Before proceeding to collection of information, you have to:
- plan how and what you will be using information for;
- back up its effectiveness i.e. prove that the effect from getting it will exceed its value;
- narrow down the questions you need to know the answers to, for instance:
- Which marketing communication channel is the most effective when it comes to ROI maximization?
- How to arrange an effective shelf on the retail floor in order to maximize returns?
- How much commodity stock should you keep in the warehouse?
- What do the customers value the most when cooperating with your company?
- How do the competitors behave and what activities are they conducting in specific region?
- What and how many resources will the company need, say, in 6 months, given the plans and business growth rate?
- What goods and services will be in demand in the short run?
- Figure out what information you already have and what you need to collect additionally;
- Find out what data you will be able to get easily and which information will be hard to collect.
If you aim to grow and thrive in a competitive business environment, analytics is your best bet. It will provide the answers to all of the key questions of the business planning and development department, marketing, sales department, production or any other department of the company.
We will be happy to help you get more successful!