how to develop market research skills

How to Do Market Research: The Complete Guide

Learn how to do market research with this step-by-step guide, complete with templates, tools and real-world examples.

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What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.

Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.

In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.

What is market research?

Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry. The purpose of market research is to offer valuable insight into the preferences and behaviors of your target audience, and anticipate shifts in market trends and the competitive landscape. This information helps you make data-driven decisions, develop effective strategies for your business, and maximize your chances of long-term growth.

Why is market research important? 

By understanding the significance of market research, you can make sure you’re asking the right questions and using the process to your advantage. Some of the benefits of market research include:

• Informed decision-making: Market research provides you with the data and insights you need to make smart decisions for your business. It helps you identify opportunities, assess risks and tailor your strategies to meet the demands of the market. Without market research, decisions are often based on assumptions or guesswork, leading to costly mistakes.
• Customer-centric approach: A cornerstone of market research involves developing a deep understanding of customer needs and preferences. This gives you valuable insights into your target audience, helping you develop products, services and marketing campaigns that resonate with your customers.
• Competitive advantage: By conducting market research, you’ll gain a competitive edge. You’ll be able to identify gaps in the market, analyze competitor strengths and weaknesses, and position your business strategically. This enables you to create unique value propositions, differentiate yourself from competitors, and seize opportunities that others may overlook.
• Risk mitigation: Market research helps you anticipate market shifts and potential challenges. By identifying threats early, you can proactively adjust their strategies to mitigate risks and respond effectively to changing circumstances. This proactive approach is particularly valuable in volatile industries.
• Resource optimization: Conducting market research allows organizations to allocate their time, money and resources more efficiently. It ensures that investments are made in areas with the highest potential return on investment, reducing wasted resources and improving overall business performance.
• Adaptation to market trends: Markets evolve rapidly, driven by technological advancements, cultural shifts and changing consumer attitudes. Market research ensures that you stay ahead of these trends and adapt your offerings accordingly so you can avoid becoming obsolete. 

As you can see, market research empowers businesses to make data-driven decisions, cater to customer needs, outperform competitors, mitigate risks, optimize resources and stay agile in a dynamic marketplace. These benefits make it a huge industry; the global market research services market is expected to grow from $76.37 billion in 2021 to $108.57 billion in 2026 . Now, let’s dig into the different types of market research that can help you achieve these benefits.

Types of market research 

• Qualitative research
• Quantitative research
• Exploratory research
• Descriptive research
• Causal research
• Cross-sectional research
• Longitudinal research

Despite its advantages, 23% of organizations don’t have a clear market research strategy. Part of developing a strategy involves choosing the right type of market research for your business goals. The most commonly used approaches include:

1. Qualitative research

Qualitative research focuses on understanding the underlying motivations, attitudes and perceptions of individuals or groups. It is typically conducted through techniques like in-depth interviews, focus groups and content analysis — methods we’ll discuss further in the sections below. Qualitative research provides rich, nuanced insights that can inform product development, marketing strategies and brand positioning.

2. Quantitative research

Quantitative research, in contrast to qualitative research, involves the collection and analysis of numerical data, often through surveys, experiments and structured questionnaires. This approach allows for statistical analysis and the measurement of trends, making it suitable for large-scale market studies and hypothesis testing. While it’s worthwhile using a mix of qualitative and quantitative research, most businesses prioritize the latter because it is scientific, measurable and easily replicated across different experiments.

3. Exploratory research

Whether you’re conducting qualitative or quantitative research or a mix of both, exploratory research is often the first step. Its primary goal is to help you understand a market or problem so you can gain insights and identify potential issues or opportunities. This type of market research is less structured and is typically conducted through open-ended interviews, focus groups or secondary data analysis. Exploratory research is valuable when entering new markets or exploring new product ideas.

4. Descriptive research

As its name implies, descriptive research seeks to describe a market, population or phenomenon in detail. It involves collecting and summarizing data to answer questions about audience demographics and behaviors, market size, and current trends. Surveys, observational studies and content analysis are common methods used in descriptive research. 

5. Causal research

Causal research aims to establish cause-and-effect relationships between variables. It investigates whether changes in one variable result in changes in another. Experimental designs, A/B testing and regression analysis are common causal research methods. This sheds light on how specific marketing strategies or product changes impact consumer behavior.

6. Cross-sectional research

Cross-sectional market research involves collecting data from a sample of the population at a single point in time. It is used to analyze differences, relationships or trends among various groups within a population. Cross-sectional studies are helpful for market segmentation, identifying target audiences and assessing market trends at a specific moment.

7. Longitudinal research

Longitudinal research, in contrast to cross-sectional research, collects data from the same subjects over an extended period. This allows for the analysis of trends, changes and developments over time. Longitudinal studies are useful for tracking long-term developments in consumer preferences, brand loyalty and market dynamics.

Each type of market research has its strengths and weaknesses, and the method you choose depends on your specific research goals and the depth of understanding you’re aiming to achieve. In the following sections, we’ll delve into primary and secondary research approaches and specific research methods.

Primary vs. secondary market research

Market research of all types can be broadly categorized into two main approaches: primary research and secondary research. By understanding the differences between these approaches, you can better determine the most appropriate research method for your specific goals.

Primary market research 

Primary research involves the collection of original data straight from the source. Typically, this involves communicating directly with your target audience — through surveys, interviews, focus groups and more — to gather information. Here are some key attributes of primary market research:

• Customized data: Primary research provides data that is tailored to your research needs. You design a custom research study and gather information specific to your goals.
• Up-to-date insights: Because primary research involves communicating with customers, the data you collect reflects the most current market conditions and consumer behaviors.
• Time-consuming and resource-intensive: Despite its advantages, primary research can be labor-intensive and costly, especially when dealing with large sample sizes or complex study designs. Whether you hire a market research consultant, agency or use an in-house team, primary research studies consume a large amount of resources and time.

Secondary market research 

Secondary research, on the other hand, involves analyzing data that has already been compiled by third-party sources, such as online research tools, databases, news sites, industry reports and academic studies.

Here are the main characteristics of secondary market research:

• Cost-effective: Secondary research is generally more cost-effective than primary research since it doesn’t require building a research plan from scratch. You and your team can look at databases, websites and publications on an ongoing basis, without needing to design a custom experiment or hire a consultant. 
• Leverages multiple sources: Data tools and software extract data from multiple places across the web, and then consolidate that information within a single platform. This means you’ll get a greater amount of data and a wider scope from secondary research.
• Quick to access: You can access a wide range of information rapidly — often in seconds — if you’re using online research tools and databases. Because of this, you can act on insights sooner, rather than taking the time to develop an experiment. 

So, when should you use primary vs. secondary research? In practice, many market research projects incorporate both primary and secondary research to take advantage of the strengths of each approach.

One rule of thumb is to focus on secondary research to obtain background information, market trends or industry benchmarks. It is especially valuable for conducting preliminary research, competitor analysis, or when time and budget constraints are tight. Then, if you still have knowledge gaps or need to answer specific questions unique to your business model, use primary research to create a custom experiment. 

Market research methods

• Surveys and questionnaires
• Focus groups
• Observational research
• Online research tools
• Experiments
• Content analysis
• Ethnographic research

How do primary and secondary research approaches translate into specific research methods? Let’s take a look at the different ways you can gather data: 

1. Surveys and questionnaires

Surveys and questionnaires are popular methods for collecting structured data from a large number of respondents. They involve a set of predetermined questions that participants answer. Surveys can be conducted through various channels, including online tools, telephone interviews and in-person or online questionnaires. They are useful for gathering quantitative data and assessing customer demographics, opinions, preferences and needs. On average, customer surveys have a 33% response rate , so keep that in mind as you consider your sample size.

2. Interviews

Interviews are in-depth conversations with individuals or groups to gather qualitative insights. They can be structured (with predefined questions) or unstructured (with open-ended discussions). Interviews are valuable for exploring complex topics, uncovering motivations and obtaining detailed feedback. 

3. Focus groups

The most common primary research methods are in-depth webcam interviews and focus groups. Focus groups are a small gathering of participants who discuss a specific topic or product under the guidance of a moderator. These discussions are valuable for primary market research because they reveal insights into consumer attitudes, perceptions and emotions. Focus groups are especially useful for idea generation, concept testing and understanding group dynamics within your target audience.

4. Observational research

Observational research involves observing and recording participant behavior in a natural setting. This method is particularly valuable when studying consumer behavior in physical spaces, such as retail stores or public places. In some types of observational research, participants are aware you’re watching them; in other cases, you discreetly watch consumers without their knowledge, as they use your product. Either way, observational research provides firsthand insights into how people interact with products or environments.

5. Online research tools

You and your team can do your own secondary market research using online tools. These tools include data prospecting platforms and databases, as well as online surveys, social media listening, web analytics and sentiment analysis platforms. They help you gather data from online sources, monitor industry trends, track competitors, understand consumer preferences and keep tabs on online behavior. We’ll talk more about choosing the right market research tools in the sections that follow.

6. Experiments

Market research experiments are controlled tests of variables to determine causal relationships. While experiments are often associated with scientific research, they are also used in market research to assess the impact of specific marketing strategies, product features, or pricing and packaging changes.

7. Content analysis

Content analysis involves the systematic examination of textual, visual or audio content to identify patterns, themes and trends. It’s commonly applied to customer reviews, social media posts and other forms of online content to analyze consumer opinions and sentiments.

8. Ethnographic research

Ethnographic research immerses researchers into the daily lives of consumers to understand their behavior and culture. This method is particularly valuable when studying niche markets or exploring the cultural context of consumer choices.

How to do market research

• Set clear objectives
• Identify your target audience
• Choose your research methods
• Use the right market research tools
• Collect data
• Analyze data 
• Interpret your findings
• Identify opportunities and challenges
• Make informed business decisions
• Monitor and adapt

Now that you have gained insights into the various market research methods at your disposal, let’s delve into the practical aspects of how to conduct market research effectively. Here’s a quick step-by-step overview, from defining objectives to monitoring market shifts.

1. Set clear objectives

When you set clear and specific goals, you’re essentially creating a compass to guide your research questions and methodology. Start by precisely defining what you want to achieve. Are you launching a new product and want to understand its viability in the market? Are you evaluating customer satisfaction with a product redesign? 

Start by creating SMART goals — objectives that are specific, measurable, achievable, relevant and time-bound. Not only will this clarify your research focus from the outset, but it will also help you track progress and benchmark your success throughout the process. 

You should also consult with key stakeholders and team members to ensure alignment on your research objectives before diving into data collecting. This will help you gain diverse perspectives and insights that will shape your research approach.

2. Identify your target audience

Next, you’ll need to pinpoint your target audience to determine who should be included in your research. Begin by creating detailed buyer personas or stakeholder profiles. Consider demographic factors like age, gender, income and location, but also delve into psychographics, such as interests, values and pain points.

The more specific your target audience, the more accurate and actionable your research will be. Additionally, segment your audience if your research objectives involve studying different groups, such as current customers and potential leads.

If you already have existing customers, you can also hold conversations with them to better understand your target market. From there, you can refine your buyer personas and tailor your research methods accordingly.

3. Choose your research methods

Selecting the right research methods is crucial for gathering high-quality data. Start by considering the nature of your research objectives. If you’re exploring consumer preferences, surveys and interviews can provide valuable insights. For in-depth understanding, focus groups or observational research might be suitable. Consider using a mix of quantitative and qualitative methods to gain a well-rounded perspective. 

You’ll also need to consider your budget. Think about what you can realistically achieve using the time and resources available to you. If you have a fairly generous budget, you may want to try a mix of primary and secondary research approaches. If you’re doing market research for a startup , on the other hand, chances are your budget is somewhat limited. If that’s the case, try addressing your goals with secondary research tools before investing time and effort in a primary research study. 

4. Use the right market research tools

Whether you’re conducting primary or secondary research, you’ll need to choose the right tools. These can help you do anything from sending surveys to customers to monitoring trends and analyzing data. Here are some examples of popular market research tools:

• Market research software: Crunchbase is a platform that provides best-in-class company data, making it valuable for market research on growing companies and industries. You can use Crunchbase to access trusted, first-party funding data, revenue data, news and firmographics, enabling you to monitor industry trends and understand customer needs.

• Survey and questionnaire tools: SurveyMonkey is a widely used online survey platform that allows you to create, distribute and analyze surveys. Google Forms is a free tool that lets you create surveys and collect responses through Google Drive.
• Data analysis software: Microsoft Excel and Google Sheets are useful for conducting statistical analyses. SPSS is a powerful statistical analysis software used for data processing, analysis and reporting.
• Social listening tools: Brandwatch is a social listening and analytics platform that helps you monitor social media conversations, track sentiment and analyze trends. Mention is a media monitoring tool that allows you to track mentions of your brand, competitors and keywords across various online sources.
• Data visualization platforms: Tableau is a data visualization tool that helps you create interactive and shareable dashboards and reports. Power BI by Microsoft is a business analytics tool for creating interactive visualizations and reports.

5. Collect data

There’s an infinite amount of data you could be collecting using these tools, so you’ll need to be intentional about going after the data that aligns with your research goals. Implement your chosen research methods, whether it’s distributing surveys, conducting interviews or pulling from secondary research platforms. Pay close attention to data quality and accuracy, and stick to a standardized process to streamline data capture and reduce errors. 

6. Analyze data

Once data is collected, you’ll need to analyze it systematically. Use statistical software or analysis tools to identify patterns, trends and correlations. For qualitative data, employ thematic analysis to extract common themes and insights. Visualize your findings with charts, graphs and tables to make complex data more understandable.

If you’re not proficient in data analysis, consider outsourcing or collaborating with a data analyst who can assist in processing and interpreting your data accurately.

7. Interpret your findings

Interpreting your market research findings involves understanding what the data means in the context of your objectives. Are there significant trends that uncover the answers to your initial research questions? Consider the implications of your findings on your business strategy. It’s essential to move beyond raw data and extract actionable insights that inform decision-making.

Hold a cross-functional meeting or workshop with relevant team members to collectively interpret the findings. Different perspectives can lead to more comprehensive insights and innovative solutions.

8. Identify opportunities and challenges

Use your research findings to identify potential growth opportunities and challenges within your market. What segments of your audience are underserved or overlooked? Are there emerging trends you can capitalize on? Conversely, what obstacles or competitors could hinder your progress?

Lay out this information in a clear and organized way by conducting a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. Jot down notes for each of these areas to provide a structured overview of gaps and hurdles in the market.

9. Make informed business decisions

Market research is only valuable if it leads to informed decisions for your company. Based on your insights, devise actionable strategies and initiatives that align with your research objectives. Whether it’s refining your product, targeting new customer segments or adjusting pricing, ensure your decisions are rooted in the data.

At this point, it’s also crucial to keep your team aligned and accountable. Create an action plan that outlines specific steps, responsibilities and timelines for implementing the recommendations derived from your research. 

10. Monitor and adapt

Market research isn’t a one-time activity; it’s an ongoing process. Continuously monitor market conditions, customer behaviors and industry trends. Set up mechanisms to collect real-time data and feedback. As you gather new information, be prepared to adapt your strategies and tactics accordingly. Regularly revisiting your research ensures your business remains agile and reflects changing market dynamics and consumer preferences.

Online market research sources

As you go through the steps above, you’ll want to turn to trusted, reputable sources to gather your data. Here’s a list to get you started:

• Crunchbase: As mentioned above, Crunchbase is an online platform with an extensive dataset, allowing you to access in-depth insights on market trends, consumer behavior and competitive analysis. You can also customize your search options to tailor your research to specific industries, geographic regions or customer personas.

• Academic databases: Academic databases, such as ProQuest and JSTOR , are treasure troves of scholarly research papers, studies and academic journals. They offer in-depth analyses of various subjects, including market trends, consumer preferences and industry-specific insights. Researchers can access a wealth of peer-reviewed publications to gain a deeper understanding of their research topics.
• Government and NGO databases: Government agencies, nongovernmental organizations and other institutions frequently maintain databases containing valuable economic, demographic and industry-related data. These sources offer credible statistics and reports on a wide range of topics, making them essential for market researchers. Examples include the U.S. Census Bureau , the Bureau of Labor Statistics and the Pew Research Center .
• Industry reports: Industry reports and market studies are comprehensive documents prepared by research firms, industry associations and consulting companies. They provide in-depth insights into specific markets, including market size, trends, competitive analysis and consumer behavior. You can find this information by looking at relevant industry association databases; examples include the American Marketing Association and the National Retail Federation .
• Social media and online communities: Social media platforms like LinkedIn or Twitter (X) , forums such as Reddit and Quora , and review platforms such as G2 can provide real-time insights into consumer sentiment, opinions and trends. 

Market research examples

At this point, you have market research tools and data sources — but how do you act on the data you gather? Let’s go over some real-world examples that illustrate the practical application of market research across various industries. These examples showcase how market research can lead to smart decision-making and successful business decisions.

Example 1: Apple’s iPhone launch

Apple ’s iconic iPhone launch in 2007 serves as a prime example of market research driving product innovation in tech. Before the iPhone’s release, Apple conducted extensive market research to understand consumer preferences, pain points and unmet needs in the mobile phone industry. This research led to the development of a touchscreen smartphone with a user-friendly interface, addressing consumer demands for a more intuitive and versatile device. The result was a revolutionary product that disrupted the market and redefined the smartphone industry.

Example 2: McDonald’s global expansion

McDonald’s successful global expansion strategy demonstrates the importance of market research when expanding into new territories. Before entering a new market, McDonald’s conducts thorough research to understand local tastes, preferences and cultural nuances. This research informs menu customization, marketing strategies and store design. For instance, in India, McDonald’s offers a menu tailored to local preferences, including vegetarian options. This market-specific approach has enabled McDonald’s to adapt and thrive in diverse global markets.

Example 3: Organic and sustainable farming

The shift toward organic and sustainable farming practices in the food industry is driven by market research that indicates increased consumer demand for healthier and environmentally friendly food options. As a result, food producers and retailers invest in sustainable sourcing and organic product lines — such as with these sustainable seafood startups — to align with this shift in consumer values. 

The bottom line? Market research has multiple use cases and is a critical practice for any industry. Whether it’s launching groundbreaking products, entering new markets or responding to changing consumer preferences, you can use market research to shape successful strategies and outcomes.

Market research templates

You finally have a strong understanding of how to do market research and apply it in the real world. Before we wrap up, here are some market research templates that you can use as a starting point for your projects:

• Smartsheet competitive analysis templates : These spreadsheets can serve as a framework for gathering information about the competitive landscape and obtaining valuable lessons to apply to your business strategy.
• SurveyMonkey product survey template : Customize the questions on this survey based on what you want to learn from your target customers.
• HubSpot templates : HubSpot offers a wide range of free templates you can use for market research, business planning and more.
• SCORE templates : SCORE is a nonprofit organization that provides templates for business plans, market analysis and financial projections.
• SBA.gov : The U.S. Small Business Administration offers templates for every aspect of your business, including market research, and is particularly valuable for new startups. 

Strengthen your business with market research

When conducted effectively, market research is like a guiding star. Equipped with the right tools and techniques, you can uncover valuable insights, stay competitive, foster innovation and navigate the complexities of your industry.

Throughout this guide, we’ve discussed the definition of market research, different research methods, and how to conduct it effectively. We’ve also explored various types of market research and shared practical insights and templates for getting started. 

Now, it’s time to start the research process. Trust in data, listen to the market and make informed decisions that guide your company toward lasting success.

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How to do market research: The complete guide for your brand

Written by by Jacqueline Zote

Published on  April 13, 2023

Reading time  10 minutes

Blindly putting out content or products and hoping for the best is a thing of the past. Not only is it a waste of time and energy, but you’re wasting valuable marketing dollars in the process. Now you have a wealth of tools and data at your disposal, allowing you to develop data-driven marketing strategies . That’s where market research comes in, allowing you to uncover valuable insights to inform your business decisions.

Conducting market research not only helps you better understand how to sell to customers but also stand out from your competition. In this guide, we break down everything you need to know about market research and how doing your homework can help you grow your business.

Table of contents:

What is market research?

Why is market research important, types of market research, where to conduct market research.

• Steps for conducting market research
• Tools to use for market research

Market research is the process of gathering information surrounding your business opportunities. It identifies key information to better understand your audience. This includes insights related to customer personas and even trends shaping your industry.

Taking time out of your schedule to conduct research is crucial for your brand health. Here are some of the key benefits of market research:

Understand your customers’ motivations and pain points

Most marketers are out of touch with what their customers want. Moreover, these marketers are missing key information on what products their audience wants to buy.

Simply put, you can’t run a business if you don’t know what motivates your customers.

And spoiler alert: Your customers’ wants and needs change. Your customers’ behaviors today might be night and day from what they were a few years ago.

Market research holds the key to understanding your customers better. It helps you uncover their key pain points and motivations and understand how they shape their interests and behavior.

Figure out how to position your brand

Positioning is becoming increasingly important as more and more brands enter the marketplace. Market research enables you to spot opportunities to define yourself against your competitors.

Maybe you’re able to emphasize a lower price point. Perhaps your product has a feature that’s one of a kind. Finding those opportunities goes hand in hand with researching your market.

Maintain a strong pulse on your industry at large

Today’s marketing world evolves at a rate that’s difficult to keep up with.

Fresh products. Up-and-coming brands. New marketing tools. Consumers get bombarded with sales messages from all angles. This can be confusing and overwhelming.

By monitoring market trends, you can figure out the best tactics for reaching your target audience.

Not everyone conducts market research for the same reason. While some may want to understand their audience better, others may want to see how their competitors are doing. As such, there are different types of market research you can conduct depending on your goal.

Interview-based market research allows for one-on-one interactions. This helps the conversation to flow naturally, making it easier to add context. Whether this takes place in person or virtually, it enables you to gather more in-depth qualitative data.

Buyer persona research

Buyer persona research lets you take a closer look at the people who make up your target audience. You can discover the needs, challenges and pain points of each buyer persona to understand what they need from your business. This will then allow you to craft products or campaigns to resonate better with each persona.

Pricing research

In this type of research, brands compare similar products or services with a particular focus on pricing. They look at how much those products or services typically sell for so they can get more competitive with their pricing strategy.

Competitive analysis research

Competitor analysis gives you a realistic understanding of where you stand in the market and how your competitors are doing. You can use this analysis to find out what’s working in your industry and which competitors to watch out for. It even gives you an idea of how well those competitors are meeting consumer needs.

Depending on the competitor analysis tool you use, you can get as granular as you need with your research. For instance, Sprout Social lets you analyze your competitors’ social strategies. You can see what types of content they’re posting and even benchmark your growth against theirs.

Brand awareness research

Conducting brand awareness research allows you to assess your brand’s standing in the market. It tells you how well-known your brand is among your target audience and what they associate with it. This can help you gauge people’s sentiments toward your brand and whether you need to rebrand or reposition.

If you don’t know where to start with your research, you’re in the right place.

There’s no shortage of market research methods out there. In this section, we’ve highlighted research channels for small and big businesses alike.

Considering that Google sees a staggering 8.5 billion searches each day, there’s perhaps no better place to start.

A quick Google search is a potential goldmine for all sorts of questions to kick off your market research. Who’s ranking for keywords related to your industry? Which products and pieces of content are the hottest right now? Who’s running ads related to your business?

For example, Google Product Listing Ads can help highlight all of the above for B2C brands.

The same applies to B2B brands looking to keep tabs on who’s running industry-related ads and ranking for keyword terms too.

There’s no denying that email represents both an aggressive and effective marketing channel for marketers today. Case in point, 44% of online shoppers consider email as the most influential channel in their buying decisions.

Looking through industry and competitor emails is a brilliant way to learn more about your market. For example, what types of offers and deals are your competitors running? How often are they sending emails?

Email is also invaluable for gathering information directly from your customers. This survey message from Asana is a great example of how to pick your customers’ brains to figure out how you can improve your quality of service.

Industry journals, reports and blogs

Don’t neglect the importance of big-picture market research when it comes to tactics and marketing channels to explore. Look to marketing resources such as reports and blogs as well as industry journals

Keeping your ear to the ground on new trends and technologies is a smart move for any business. Sites such as Statista, Marketing Charts, AdWeek and Emarketer are treasure troves of up-to-date data and news for marketers.

And of course, there’s the  Sprout Insights blog . And invaluable resources like The Sprout Social Index™  can keep you updated on the latest social trends.

Social media

If you want to learn more about your target market, look no further than social media. Social offers a place to discover what your customers want to see in future products or which brands are killin’ it. In fact, social media is become more important for businesses than ever with the level of data available.

It represents a massive repository of real-time data and insights that are instantly accessible. Brand monitoring and social listening are effective ways to conduct social media research . You can even be more direct with your approach. Ask questions directly or even poll your audience to understand their needs and preferences.

The 5 steps for how to do market research

Now that we’ve covered the why and where, it’s time to get into the practical aspects of market research. Here are five essential steps on how to do market research effectively.

Step 1: Identify your research topic

First off, what are you researching about? What do you want to find out? Narrow down on a specific research topic so you can start with a clear idea of what to look for.

For example, you may want to learn more about how well your product features are satisfying the needs of existing users. This might potentially lead to feature updates and improvements. Or it might even result in new feature introductions.

Similarly, your research topic may be related to your product or service launch or customer experience. Or you may want to conduct research for an upcoming marketing campaign.

Step 2: Choose a buyer persona to engage

If you’re planning to focus your research on a specific type of audience, decide which buyer persona you want to engage. This persona group will serve as a representative sample of your target audience.

Engaging a specific group of audience lets you streamline your research efforts. As such, it can be a much more effective and organized approach than researching thousands (if not millions) of individuals.

You may be directing your research toward existing users of your product. To get even more granular, you may want to focus on users who have been familiar with the product for at least a year, for example.

Step 3: Start collecting data

The next step is one of the most critical as it involves collecting the data you need for your research. Before you begin, make sure you’ve chosen the right research methods that will uncover the type of data you need. This largely depends on your research topic and goals.

Remember that you don’t necessarily have to stick to one research method. You may use a combination of qualitative and quantitative approaches. So for example, you could use interviews to supplement the data from your surveys. Or you may stick to insights from your social listening efforts.

To keep things consistent, let’s look at this in the context of the example from earlier. Perhaps you can send out a survey to your existing users asking them a bunch of questions. This might include questions like which features they use the most and how often they use them. You can get them to choose an answer from one to five and collect quantitative data.

Plus, for qualitative insights, you could even include a few open-ended questions with the option to write their answers. For instance, you might ask them if there’s any improvement they wish to see in your product.

Step 4: Analyze results

Once you have all the data you need, it’s time to analyze it keeping your research topic in mind. This involves trying to interpret the data to look for a wider meaning, particularly in relation to your research goal.

So let’s say a large percentage of responses were four or five in the satisfaction rating. This means your existing users are mostly satisfied with your current product features. On the other hand, if the responses were mostly ones and twos, you may look for opportunities to improve. The responses to your open-ended questions can give you further context as to why people are disappointed.

Step 5: Make decisions for your business

Now it’s time to take your findings and turn them into actionable insights for your business. In this final step, you need to decide how you want to move forward with your new market insight.

What did you find in your research that would require action? How can you put those findings to good use?

The market research tools you should be using

To wrap things up, let’s talk about the various tools available to conduct speedy, in-depth market research. These tools are essential for conducting market research faster and more efficiently.

Social listening and analytics

Social analytics tools like Sprout can help you keep track of engagement across social media. This goes beyond your own engagement data but also includes that of your competitors. Considering how quickly social media moves, using a third-party analytics tool is ideal. It allows you to make sense of your social data at a glance and ensure that you’re never missing out on important trends.

Email marketing research tools

Keeping track of brand emails is a good idea for any brand looking to stand out in its audience’s inbox.

Tools such as MailCharts ,  Really Good Emails  and  Milled  can show you how different brands run their email campaigns.

Meanwhile, tools like  Owletter  allow you to monitor metrics such as frequency and send-timing. These metrics can help you understand email marketing strategies among competing brands.

Content marketing research

If you’re looking to conduct research on content marketing, tools such as  BuzzSumo  can be of great help. This tool shows you the top-performing industry content based on keywords. Here you can see relevant industry sites and influencers as well as which brands in your industry are scoring the most buzz. It shows you exactly which pieces of content are ranking well in terms of engagements and shares and on which social networks.

SEO and keyword tracking

Monitoring industry keywords is a great way to uncover competitors. It can also help you discover opportunities to advertise your products via organic search. Tools such as  Ahrefs  provide a comprehensive keyword report to help you see how your search efforts stack up against the competition.

Competitor comparison template

For the sake of organizing your market research, consider creating a competitive matrix. The idea is to highlight how you stack up side-by-side against others in your market. Use a  social media competitive analysis template  to track your competitors’ social presence. That way, you can easily compare tactics, messaging and performance. Once you understand your strengths and weaknesses next to your competitors, you’ll find opportunities as well.

Customer persona creator

Finally, customer personas represent a place where all of your market research comes together. You’d need to create a profile of your ideal customer that you can easily refer to. Tools like  Xtensio  can help in outlining your customer motivations and demographics as you zero in on your target market.

Build a solid market research strategy

Having a deeper understanding of the market gives you leverage in a sea of competitors. Use the steps and market research tools we shared above to build an effective market research strategy.

But keep in mind that the accuracy of your research findings depends on the quality of data collected. Turn to Sprout’s social media analytics tools to uncover heaps of high-quality data across social networks.

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Market Research: A How-To Guide and Template

Discover the different types of market research, how to conduct your own market research, and use a free template to help you along the way.

MARKET RESEARCH KIT

5 Research and Planning Templates + a Free Guide on How to Use Them in Your Market Research

Updated: 02/21/24

Published: 02/21/24

Today's consumers have a lot of power. As a business, you must have a deep understanding of who your buyers are and what influences their purchase decisions.

Enter: Market Research.

Whether you're new to market research or not, I created this guide to help you conduct a thorough study of your market, target audience, competition, and more. Let’s dive in.

Table of Contents

What is market research?

Primary vs. secondary research, types of market research, how to do market research, market research report template, market research examples.

Market research is the process of gathering information about your target market and customers to verify the success of a new product, help your team iterate on an existing product, or understand brand perception to ensure your team is effectively communicating your company's value effectively.

Market research can answer various questions about the state of an industry. But if you ask me, it's hardly a crystal ball that marketers can rely on for insights on their customers.

Market researchers investigate several areas of the market, and it can take weeks or even months to paint an accurate picture of the business landscape.

However, researching just one of those areas can make you more intuitive to who your buyers are and how to deliver value that no other business is offering them right now.

How? Consider these two things:

• Your competitors also have experienced individuals in the industry and a customer base. It‘s very possible that your immediate resources are, in many ways, equal to those of your competition’s immediate resources. Seeking a larger sample size for answers can provide a better edge.
• Your customers don't represent the attitudes of an entire market. They represent the attitudes of the part of the market that is already drawn to your brand.

The market research services market is growing rapidly, which signifies a strong interest in market research as we enter 2024. The market is expected to grow from roughly $75 billion in 2021 to $90.79 billion in 2025 .

Free Market Research Kit

• SWOT Analysis Template
• Survey Template
• Focus Group Template

You're all set!

Click this link to access this resource at any time.

Why do market research?

Market research allows you to meet your buyer where they are.

As our world becomes louder and demands more of our attention, this proves invaluable.

By understanding your buyer's problems, pain points, and desired solutions, you can aptly craft your product or service to naturally appeal to them.

Market research also provides insight into the following:

• Where your target audience and current customers conduct their product or service research
• Which of your competitors your target audience looks to for information, options, or purchases
• What's trending in your industry and in the eyes of your buyer
• Who makes up your market and what their challenges are
• What influences purchases and conversions among your target audience
• Consumer attitudes about a particular topic, pain, product, or brand
• Whether there‘s demand for the business initiatives you’re investing in
• Unaddressed or underserved customer needs that can be flipped into selling opportunity
• Attitudes about pricing for a particular product or service

Ultimately, market research allows you to get information from a larger sample size of your target audience, eliminating bias and assumptions so that you can get to the heart of consumer attitudes.

As a result, you can make better business decisions.

To give you an idea of how extensive market research can get , consider that it can either be qualitative or quantitative in nature — depending on the studies you conduct and what you're trying to learn about your industry.

Qualitative research is concerned with public opinion, and explores how the market feels about the products currently available in that market.

Quantitative research is concerned with data, and looks for relevant trends in the information that's gathered from public records.

That said, there are two main types of market research that your business can conduct to collect actionable information on your products: primary research and secondary research.

Primary Research

Primary research is the pursuit of first-hand information about your market and the customers within your market.

It's useful when segmenting your market and establishing your buyer personas.

Primary market research tends to fall into one of two buckets:

• Exploratory Primary Research: This kind of primary market research normally takes place as a first step — before any specific research has been performed — and may involve open-ended interviews or surveys with small numbers of people.
• Specific Primary Research: This type of research often follows exploratory research. In specific research, you take a smaller or more precise segment of your audience and ask questions aimed at solving a suspected problem.

Secondary Research

Secondary research is all the data and public records you have at your disposal to draw conclusions from (e.g. trend reports, market statistics, industry content, and sales data you already have on your business).

Secondary research is particularly useful for analyzing your competitors . The main buckets your secondary market research will fall into include:

• Public Sources: These sources are your first and most-accessible layer of material when conducting secondary market research. They're often free to find and review — like government statistics (e.g., from the U.S. Census Bureau ).
• Commercial Sources: These sources often come in the form of pay-to-access market reports, consisting of industry insight compiled by a research agency like Pew , Gartner , or Forrester .
• Internal Sources: This is the market data your organization already has like average revenue per sale, customer retention rates, and other historical data that can help you draw conclusions on buyer needs.
• Focus Groups
• Product/ Service Use Research
• Observation-Based Research
• Buyer Persona Research
• Market Segmentation Research
• Pricing Research
• Competitive Analysis Research
• Customer Satisfaction and Loyalty Research
• Brand Awareness Research
• Campaign Research

1. Interviews

Interviews allow for face-to-face discussions so you can allow for a natural flow of conversation. Your interviewees can answer questions about themselves to help you design your buyer personas and shape your entire marketing strategy.

2. Focus Groups

Focus groups provide you with a handful of carefully-selected people that can test out your product and provide feedback. This type of market research can give you ideas for product differentiation.

3. Product/Service Use Research

Product or service use research offers insight into how and why your audience uses your product or service. This type of market research also gives you an idea of the product or service's usability for your target audience.

4. Observation-Based Research

Observation-based research allows you to sit back and watch the ways in which your target audience members go about using your product or service, what works well in terms of UX , and which aspects of it could be improved.

5. Buyer Persona Research

Buyer persona research gives you a realistic look at who makes up your target audience, what their challenges are, why they want your product or service, and what they need from your business or brand.

6. Market Segmentation Research

Market segmentation research allows you to categorize your target audience into different groups (or segments) based on specific and defining characteristics. This way, you can determine effective ways to meet their needs.

7. Pricing Research

Pricing research helps you define your pricing strategy . It gives you an idea of what similar products or services in your market sell for and what your target audience is willing to pay.

8. Competitive Analysis

Competitive analyses give you a deep understanding of the competition in your market and industry. You can learn about what's doing well in your industry and how you can separate yourself from the competition .

9. Customer Satisfaction and Loyalty Research

Customer satisfaction and loyalty research gives you a look into how you can get current customers to return for more business and what will motivate them to do so (e.g., loyalty programs , rewards, remarkable customer service).

10. Brand Awareness Research

Brand awareness research tells you what your target audience knows about and recognizes from your brand. It tells you about the associations people make when they think about your business.

11. Campaign Research

Campaign research entails looking into your past campaigns and analyzing their success among your target audience and current customers. The goal is to use these learnings to inform future campaigns.

• Define your buyer persona.
• Identify a persona group to engage.
• Prepare research questions for your market research participants.
• List your primary competitors.
• Summarize your findings.

1. Define your buyer persona.

You have to understand who your customers are and how customers in your industry make buying decisions.

This is where your buyer personas come in handy. Buyer personas — sometimes referred to as marketing personas — are fictional, generalized representations of your ideal customers.

Use a free tool to create a buyer persona that your entire company can use to market, sell, and serve better.

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How to do market research in 4 steps: a lean approach to marketing research

From pinpointing your target audience and assessing your competitive advantage, to ongoing product development and customer satisfaction efforts, market research is a practice your business can only benefit from.

Learn how to conduct quick and effective market research using a lean approach in this article full of strategies and practical examples. 

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A comprehensive (and successful) business strategy is not complete without some form of market research—you can’t make informed and profitable business decisions without truly understanding your customer base and the current market trends that drive your business.

In this article, you’ll learn how to conduct quick, effective market research  using an approach called 'lean market research'. It’s easier than you might think, and it can be done at any stage in a product’s lifecycle.

How to conduct lean market research in 4 steps

What is market research, why is market research so valuable, advantages of lean market research, 4 common market research methods, 5 common market research questions, market research faqs.

We’ll jump right into our 4-step approach to lean market research. To show you how it’s done in the real world, each step includes a practical example from Smallpdf , a Swiss company that used lean market research to reduce their tool’s error rate by 75% and boost their Net Promoter Score® (NPS) by 1%.

Research your market the lean way...

From on-page surveys to user interviews, Hotjar has the tools to help you scope out your market and get to know your customers—without breaking the bank.

The following four steps and practical examples will give you a solid market research plan for understanding who your users are and what they want from a company like yours.

1. Create simple user personas

A user persona is a semi-fictional character based on psychographic and demographic data from people who use websites and products similar to your own. Start by defining broad user categories, then elaborate on them later to further segment your customer base and determine your ideal customer profile .

How to get the data: use on-page or emailed surveys and interviews to understand your users and what drives them to your business.

How to do it right: whatever survey or interview questions you ask, they should answer the following questions about the customer:

Who are they?

What is their main goal?

What is their main barrier to achieving this goal?

Pitfalls to avoid:

Don’t ask too many questions! Keep it to five or less, otherwise you’ll inundate them and they’ll stop answering thoughtfully.

Don’t worry too much about typical demographic questions like age or background. Instead, focus on the role these people play (as it relates to your product) and their goals.

How Smallpdf did it: Smallpdf ran an on-page survey for a couple of weeks and received 1,000 replies. They learned that many of their users were administrative assistants, students, and teachers.

Next, they used the survey results to create simple user personas like this one for admins:

Who are they? Administrative Assistants.

What is their main goal? Creating Word documents from a scanned, hard-copy document or a PDF where the source file was lost.

What is their main barrier to achieving it? Converting a scanned PDF doc to a Word file.

💡Pro tip: Smallpdf used Hotjar Surveys to run their user persona survey. Our survey tool helped them avoid the pitfalls of guesswork and find out who their users really are, in their own words. 

You can design a survey and start running it in minutes with our easy-to-use drag and drop builder. Customize your survey to fit your needs, from a sleek one-question pop-up survey to a fully branded questionnaire sent via email. 

We've also created 40+ free survey templates that you can start collecting data with, including a user persona survey like the one Smallpdf used.

2. Conduct observational research

Observational research involves taking notes while watching someone use your product (or a similar product).

Overt vs. covert observation

Overt observation involves asking customers if they’ll let you watch them use your product. This method is often used for user testing and it provides a great opportunity for collecting live product or customer feedback .

Covert observation means studying users ‘in the wild’ without them knowing. This method works well if you sell a type of product that people use regularly, and it offers the purest observational data because people often behave differently when they know they’re being watched. 

Tips to do it right:

Record an entry in your field notes, along with a timestamp, each time an action or event occurs.

Make note of the users' workflow, capturing the ‘what,’ ‘why,’ and ‘for whom’ of each action.

Don’t record identifiable video or audio data without consent. If recording people using your product is helpful for achieving your research goal, make sure all participants are informed and agree to the terms.

Don’t forget to explain why you’d like to observe them (for overt observation). People are more likely to cooperate if you tell them you want to improve the product.

💡Pro tip: while conducting field research out in the wild can wield rewarding results, you can also conduct observational research remotely. Hotjar Recordings is a tool that lets you capture anonymized user sessions of real people interacting with your website. 

Observe how customers navigate your pages and products to gain an inside look into their user behavior . This method is great for conducting exploratory research with the purpose of identifying more specific issues to investigate further, like pain points along the customer journey and opportunities for optimizing conversion .

With Hotjar Recordings you can observe real people using your site without capturing their sensitive information

How Smallpdf did it: here’s how Smallpdf observed two different user personas both covertly and overtly.

Observing students (covert): Kristina Wagner, Principle Product Manager at Smallpdf, went to cafes and libraries at two local universities and waited until she saw students doing PDF-related activities. Then she watched and took notes from a distance. One thing that struck her was the difference between how students self-reported their activities vs. how they behaved (i.e, the self-reporting bias). Students, she found, spent hours talking, listening to music, or simply staring at a blank screen rather than working. When she did find students who were working, she recorded the task they were performing and the software they were using (if she recognized it).

Observing administrative assistants (overt): Kristina sent emails to admins explaining that she’d like to observe them at work, and she asked those who agreed to try to batch their PDF work for her observation day. While watching admins work, she learned that they frequently needed to scan documents into PDF-format and then convert those PDFs into Word docs. By observing the challenges admins faced, Smallpdf knew which products to target for improvement.

“Data is really good for discovery and validation, but there is a bit in the middle where you have to go and find the human.”

3. Conduct individual interviews

Interviews are one-on-one conversations with members of your target market. They allow you to dig deep and explore their concerns, which can lead to all sorts of revelations.

Listen more, talk less. Be curious.

Act like a journalist, not a salesperson. Rather than trying to talk your company up, ask people about their lives, their needs, their frustrations, and how a product like yours could help.

Ask "why?" so you can dig deeper. Get into the specifics and learn about their past behavior.

Record the conversation. Focus on the conversation and avoid relying solely on notes by recording the interview. There are plenty of services that will transcribe recorded conversations for a good price (including Hotjar!).

Avoid asking leading questions , which reveal bias on your part and pushes respondents to answer in a certain direction (e.g. “Have you taken advantage of the amazing new features we just released?).

Don't ask loaded questions , which sneak in an assumption which, if untrue, would make it impossible to answer honestly. For example, we can’t ask you, “What did you find most useful about this article?” without asking whether you found the article useful in the first place.

Be cautious when asking opinions about the future (or predictions of future behavior). Studies suggest that people aren’t very good at predicting their future behavior. This is due to several cognitive biases, from the misguided exceptionalism bias (we’re good at guessing what others will do, but we somehow think we’re different), to the optimism bias (which makes us see things with rose-colored glasses), to the ‘illusion of control’ (which makes us forget the role of randomness in future events).

How Smallpdf did it: Kristina explored her teacher user persona by speaking with university professors at a local graduate school. She learned that the school was mostly paperless and rarely used PDFs, so for the sake of time, she moved on to the admins.

A bit of a letdown? Sure. But this story highlights an important lesson: sometimes you follow a lead and come up short, so you have to make adjustments on the fly. Lean market research is about getting solid, actionable insights quickly so you can tweak things and see what works.

💡Pro tip: to save even more time, conduct remote interviews using an online user research service like Hotjar Engage , which automates the entire interview process, from recruitment and scheduling to hosting and recording.

You can interview your own customers or connect with people from our diverse pool of 200,000+ participants from 130+ countries and 25 industries. And no need to fret about taking meticulous notes—Engage will automatically transcribe the interview for you.

4. Analyze the data (without drowning in it)

The following techniques will help you wrap your head around the market data you collect without losing yourself in it. Remember, the point of lean market research is to find quick, actionable insights.

A flow model is a diagram that tracks the flow of information within a system. By creating a simple visual representation of how users interact with your product and each other, you can better assess their needs.

You’ll notice that admins are at the center of Smallpdf’s flow model, which represents the flow of PDF-related documents throughout a school. This flow model shows the challenges that admins face as they work to satisfy their own internal and external customers.

Affinity diagram

An affinity diagram is a way of sorting large amounts of data into groups to better understand the big picture. For example, if you ask your users about their profession, you’ll notice some general themes start to form, even though the individual responses differ. Depending on your needs, you could group them by profession, or more generally by industry.

We wrote a guide about how to analyze open-ended questions to help you sort through and categorize large volumes of response data. You can also do this by hand by clipping up survey responses or interview notes and grouping them (which is what Kristina does).

“For an interview, you will have somewhere between 30 and 60 notes, and those notes are usually direct phrases. And when you literally cut them up into separate pieces of paper and group them, they should make sense by themselves.”

Pro tip: if you’re conducting an online survey with Hotjar, keep your team in the loop by sharing survey responses automatically via our Slack and Microsoft Team integrations. Reading answers as they come in lets you digest the data in pieces and can help prepare you for identifying common themes when it comes time for analysis.

Hotjar lets you easily share survey responses with your team

Customer journey map

A customer journey map is a diagram that shows the way a typical prospect becomes a paying customer. It outlines their first interaction with your brand and every step in the sales cycle, from awareness to repurchase (and hopefully advocacy).

The above  customer journey map , created by our team at Hotjar, shows many ways a customer might engage with our tool. Your map will be based on your own data and business model.

📚 Read more: if you’re new to customer journey maps, we wrote this step-by-step guide to creating your first customer journey map in 2 and 1/2 days with free templates you can download and start using immediately.

Next steps: from research to results

So, how do you turn market research insights into tangible business results? Let’s look at the actions Smallpdf took after conducting their lean market research: first they implemented changes, then measured the impact.

Implement changes

Based on what Smallpdf learned about the challenges that one key user segment (admins) face when trying to convert PDFs into Word files, they improved their ‘PDF to Word’ conversion tool.

We won’t go into the details here because it involves a lot of technical jargon, but they made the entire process simpler and more straightforward for users. Plus, they made it so that their system recognized when you drop a PDF file into their ‘Word to PDF’ converter instead of the ‘PDF to Word’ converter, so users wouldn’t have to redo the task when they made that mistake. 

In other words: simple market segmentation for admins showed a business need that had to be accounted for, and customers are happier overall after Smallpdf implemented an informed change to their product.

Measure results

According to the Lean UX model, product and UX changes aren’t retained unless they achieve results.

Smallpdf’s changes produced:

A 75% reduction in error rate for the ‘PDF to Word’ converter

A 1% increase in NPS

Greater confidence in the team’s marketing efforts

"With all the changes said and done, we've cut our original error rate in four, which is huge. We increased our NPS by +1%, which isn't huge, but it means that of the users who received a file, they were still slightly happier than before, even if they didn't notice that anything special happened at all.”

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Market research (or marketing research) is any set of techniques used to gather information and better understand a company’s target market. This might include primary research on brand awareness and customer satisfaction or secondary market research on market size and competitive analysis. Businesses use this information to design better products, improve user experience, and craft a marketing strategy that attracts quality leads and improves conversion rates.

David Darmanin, one of Hotjar’s founders, launched two startups before Hotjar took off—but both companies crashed and burned. Each time, he and his team spent months trying to design an amazing new product and user experience, but they failed because they didn’t have a clear understanding of what the market demanded.

With Hotjar, they did things differently . Long story short, they conducted market research in the early stages to figure out what consumers really wanted, and the team made (and continues to make) constant improvements based on market and user research.

Without market research, it’s impossible to understand your users. Sure, you might have a general idea of who they are and what they need, but you have to dig deep if you want to win their loyalty.

Here’s why research matters:

Obsessing over your users is the only way to win. If you don’t care deeply about them, you’ll lose potential customers to someone who does.

Analytics gives you the ‘what’, while research gives you the ‘why’. Big data, user analytics , and dashboards can tell you what people do at scale, but only research can tell you what they’re thinking and why they do what they do. For example, analytics can tell you that customers leave when they reach your pricing page, but only research can explain why.

Research beats assumptions, trends, and so-called best practices. Have you ever watched your colleagues rally behind a terrible decision? Bad ideas are often the result of guesswork, emotional reasoning, death by best practices , and defaulting to the Highest Paid Person’s Opinion (HiPPO). By listening to your users and focusing on their customer experience , you’re less likely to get pulled in the wrong direction.

Research keeps you from planning in a vacuum. Your team might be amazing, but you and your colleagues simply can’t experience your product the way your customers do. Customers might use your product in a way that surprises you, and product features that seem obvious to you might confuse them. Over-planning and refusing to test your assumptions is a waste of time, money, and effort because you’ll likely need to make changes once your untested business plan gets put into practice.

Lean User Experience (UX) design is a model for continuous improvement that relies on quick, efficient research to understand customer needs and test new product features.

Lean market research can help you become more...

Efficient: it gets you closer to your customers, faster.

Cost-effective: no need to hire an expensive marketing firm to get things started.

Competitive: quick, powerful insights can place your products on the cutting edge.

As a small business or sole proprietor, conducting lean market research is an attractive option when investing in a full-blown research project might seem out of scope or budget.

There are lots of different ways you could conduct market research and collect customer data, but you don’t have to limit yourself to just one research method. Four common types of market research techniques include surveys, interviews, focus groups, and customer observation.

Which method you use may vary based on your business type: ecommerce business owners have different goals from SaaS businesses, so it’s typically prudent to mix and match these methods based on your particular goals and what you need to know.

1. Surveys: the most commonly used

Surveys are a form of qualitative research that ask respondents a short series of open- or closed-ended questions, which can be delivered as an on-screen questionnaire or via email. When we asked 2,000 Customer Experience (CX) professionals about their company’s approach to research , surveys proved to be the most commonly used market research technique.

What makes online surveys so popular?  

They’re easy and inexpensive to conduct, and you can do a lot of data collection quickly. Plus, the data is pretty straightforward to analyze, even when you have to analyze open-ended questions whose answers might initially appear difficult to categorize.

We've built a number of survey templates ready and waiting for you. Grab a template and share with your customers in just a few clicks.

💡 Pro tip: you can also get started with Hotjar AI for Surveys to create a survey in mere seconds . Just enter your market research goal and watch as the AI generates a survey and populates it with relevant questions. 

Once you’re ready for data analysis, the AI will prepare an automated research report that succinctly summarizes key findings, quotes, and suggested next steps.

An example research report generated by Hotjar AI for Surveys

2. Interviews: the most insightful

Interviews are one-on-one conversations with members of your target market. Nothing beats a face-to-face interview for diving deep (and reading non-verbal cues), but if an in-person meeting isn’t possible, video conferencing is a solid second choice.

Regardless of how you conduct it, any type of in-depth interview will produce big benefits in understanding your target customers.

What makes interviews so insightful?

By speaking directly with an ideal customer, you’ll gain greater empathy for their experience , and you can follow insightful threads that can produce plenty of 'Aha!' moments.

3. Focus groups: the most unreliable

Focus groups bring together a carefully selected group of people who fit a company’s target market. A trained moderator leads a conversation surrounding the product, user experience, or marketing message to gain deeper insights.

What makes focus groups so unreliable?

If you’re new to market research, we wouldn’t recommend starting with focus groups. Doing it right is expensive , and if you cut corners, your research could fall victim to all kinds of errors. Dominance bias (when a forceful participant influences the group) and moderator style bias (when different moderator personalities bring about different results in the same study) are two of the many ways your focus group data could get skewed.

4. Observation: the most powerful

During a customer observation session, someone from the company takes notes while they watch an ideal user engage with their product (or a similar product from a competitor).

What makes observation so clever and powerful?

‘Fly-on-the-wall’ observation is a great alternative to focus groups. It’s not only less expensive, but you’ll see people interact with your product in a natural setting without influencing each other. The only downside is that you can’t get inside their heads, so observation still isn't a recommended replacement for customer surveys and interviews.

The following questions will help you get to know your users on a deeper level when you interview them. They’re general questions, of course, so don’t be afraid to make them your own.

1. Who are you and what do you do?

How you ask this question, and what you want to know, will vary depending on your business model (e.g. business-to-business marketing is usually more focused on someone’s profession than business-to-consumer marketing).

It’s a great question to start with, and it’ll help you understand what’s relevant about your user demographics (age, race, gender, profession, education, etc.), but it’s not the be-all-end-all of market research. The more specific questions come later.

2. What does your day look like?

This question helps you understand your users’ day-to-day life and the challenges they face. It will help you gain empathy for them, and you may stumble across something relevant to their buying habits.

3. Do you ever purchase [product/service type]?

This is a ‘yes or no’ question. A ‘yes’ will lead you to the next question.

4. What problem were you trying to solve or what goal were you trying to achieve?

This question strikes to the core of what someone’s trying to accomplish and why they might be willing to pay for your solution.

5. Take me back to the day when you first decided you needed to solve this kind of problem or achieve this goal.

This is the golden question, and it comes from Adele Revella, Founder and CEO of Buyer Persona Institute . It helps you get in the heads of your users and figure out what they were thinking the day they decided to spend money to solve a problem.

If you take your time with this question, digging deeper where it makes sense, you should be able to answer all the relevant information you need to understand their perspective.

“The only scripted question I want you to ask them is this one: take me back to the day when you first decided that you needed to solve this kind of problem or achieve this kind of a goal. Not to buy my product, that’s not the day. We want to go back to the day that when you thought it was urgent and compelling to go spend money to solve a particular problem or achieve a goal. Just tell me what happened.”

— Adele Revella , Founder/CEO at Buyer Persona Institute

Bonus question: is there anything else you’d like to tell me?

This question isn’t just a nice way to wrap it up—it might just give participants the opportunity they need to tell you something you really need to know.

That’s why Sarah Doody, author of UX Notebook , adds it to the end of her written surveys.

“I always have a last question, which is just open-ended: “Is there anything else you would like to tell me?” And sometimes, that’s where you get four paragraphs of amazing content that you would never have gotten if it was just a Net Promoter Score [survey] or something like that.”

What is the difference between qualitative and quantitative research?

Qualitative research asks questions that can’t be reduced to a number, such as, “What is your job title?” or “What did you like most about your customer service experience?” 

Quantitative research asks questions that can be answered with a numeric value, such as, “What is your annual salary?” or “How was your customer service experience on a scale of 1-5?”

 → Read more about the differences between qualitative and quantitative user research .

How do I do my own market research?

You can do your own quick and effective market research by 

Surveying your customers

Building user personas

Studying your users through interviews and observation

Wrapping your head around your data with tools like flow models, affinity diagrams, and customer journey maps

What is the difference between market research and user research?

Market research takes a broad look at potential customers—what problems they’re trying to solve, their buying experience, and overall demand. User research, on the other hand, is more narrowly focused on the use (and usability ) of specific products.

What are the main criticisms of market research?

Many marketing professionals are critical of market research because it can be expensive and time-consuming. It’s often easier to convince your CEO or CMO to let you do lean market research rather than something more extensive because you can do it yourself. It also gives you quick answers so you can stay ahead of the competition.

Do I need a market research firm to get reliable data?

Absolutely not! In fact, we recommend that you start small and do it yourself in the beginning. By following a lean market research strategy, you can uncover some solid insights about your clients. Then you can make changes, test them out, and see whether the results are positive. This is an excellent strategy for making quick changes and remaining competitive.

Net Promoter, Net Promoter System, Net Promoter Score, NPS, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.

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Market research is a cornerstone of all successful, strategic businesses. It can also be daunting for entrepreneurs looking to launch a startup or start a side hustle . What is market research, anyway? And how do you…do it?

We’ll walk you through absolutely everything you need to know about the market research process so that by the end of this guide, you’ll be an expert in market research too. And what’s more important: you’ll have actionable steps you can take to start collecting your own market research.

What Is Market Research?

Market research is the organized process of gathering information about your target customers and market. Market research can help you better understand customer behavior and competitor strengths and weaknesses, as well as provide insight for the best strategies in launching new businesses and products. There are different ways to approach market research, including primary and secondary research and qualitative and quantitative research. The strongest approaches will include a combination of all four.

“Virtually every business can benefit from conducting some market research,” says Niles Koenigsberg of Real FiG Advertising + Marketing . “Market research can help you piece together your [business’s] strengths and weaknesses, along with your prospective opportunities, so that you can understand where your unique differentiators may lie.” Well-honed market research will help your brand stand out from the competition and help you see what you need to do to lead the market. It can also do so much more.

The Purposes of Market Research

Why do market research? It can help you…

• Pinpoint your target market, create buyer personas, and develop a more holistic understanding of your customer base and market.
• Understand current market conditions to evaluate risks and anticipate how your product or service will perform.
• Validate a concept prior to launch.
• Identify gaps in the market that your competitors have created or overlooked.
• Solve problems that have been left unresolved by the existing product/brand offerings.
• Identify opportunities and solutions for new products or services.
• Develop killer marketing strategies .

What Are the Benefits of Market Research?

Strong market research can help your business in many ways. It can…

• Strengthen your market position.
• Help you identify your strengths and weaknesses.
• Help you identify your competitors’ strengths and weaknesses.
• Minimize risk.
• Center your customers’ experience from the get-go.
• Help you create a dynamic strategy based on market conditions and customer needs/demands.

What Are the Basic Methods of Market Research?

The basic methods of market research include surveys, personal interviews, customer observation, and the review of secondary research. In addition to these basic methods, a forward-thinking market research approach incorporates data from the digital landscape like social media analysis, SEO research, gathering feedback via forums, and more. Throughout this guide, we will cover each of the methods commonly used in market research to give you a comprehensive overview.

Primary vs. Secondary Market Research

Primary and secondary are the two main types of market research you can do. The latter relies on research conducted by others. Primary research, on the other hand, refers to the fact-finding efforts you conduct on your own.

This approach is limited, however. It’s likely that the research objectives of these secondary data points differ from your own, and it can be difficult to confirm the veracity of their findings.

Primary Market Research

Primary research is more labor intensive, but it generally yields data that is exponentially more actionable. It can be conducted through interviews, surveys, online research, and your own data collection. Every new business should engage in primary market research prior to launch. It will help you validate that your idea has traction, and it will give you the information you need to help minimize financial risk.

You can hire an agency to conduct this research on your behalf. This brings the benefit of expertise, as you’ll likely work with a market research analyst. The downside is that hiring an agency can be expensive—too expensive for many burgeoning entrepreneurs. That brings us to the second approach. You can also do the market research yourself, which substantially reduces the financial burden of starting a new business .

Secondary Market Research

Secondary research includes resources like government databases and industry-specific data and publications. It can be beneficial to start your market research with secondary sources because it’s widely available and often free-to-access. This information will help you gain a broad overview of the market conditions for your new business.

Identify Your Goals and Your Audience

Before you begin conducting interviews or sending out surveys, you need to set your market research goals. At the end of your market research process, you want to have a clear idea of who your target market is—including demographic information like age, gender, and where they live—but you also want to start with a rough idea of who your audience might be and what you’re trying to achieve with market research.

You can pinpoint your objectives by asking yourself a series of guiding questions:

• What are you hoping to discover through your research?
• Who are you hoping to serve better because of your findings?
• What do you think your market is?
• Who are your competitors?
• Are you testing the reception of a new product category or do you want to see if your product or service solves the problem left by a current gap in the market?
• Are you just…testing the waters to get a sense of how people would react to a new brand?

Once you’ve narrowed down the “what” of your market research goals, you’re ready to move onto how you can best achieve them. Think of it like algebra. Many math problems start with “solve for x.” Once you know what you’re looking for, you can get to work trying to find it. It’s a heck of a lot easier to solve a problem when you know you’re looking for “x” than if you were to say “I’m gonna throw some numbers out there and see if I find a variable.”

How to Do Market Research

This guide outlines every component of a comprehensive market research effort. Take into consideration the goals you have established for your market research, as they will influence which of these elements you’ll want to include in your market research strategy.

Secondary Data

Secondary data allows you to utilize pre-existing data to garner a sense of market conditions and opportunities. You can rely on published market studies, white papers, and public competitive information to start your market research journey.

Secondary data, while useful, is limited and cannot substitute your own primary data. It’s best used for quantitative data that can provide background to your more specific inquiries.

Find Your Customers Online

Once you’ve identified your target market, you can use online gathering spaces and forums to gain insights and give yourself a competitive advantage. Rebecca McCusker of The Creative Content Shop recommends internet recon as a vital tool for gaining a sense of customer needs and sentiment. “Read their posts and comments on forums, YouTube video comments, Facebook group [comments], and even Amazon/Goodreads book comments to get in their heads and see what people are saying.”

If you’re interested in engaging with your target demographic online, there are some general rules you should follow. First, secure the consent of any group moderators to ensure that you are acting within the group guidelines. Failure to do so could result in your eviction from the group.

Not all comments have the same research value. “Focus on the comments and posts with the most comments and highest engagement,” says McCusker. These high-engagement posts can give you a sense of what is already connecting and gaining traction within the group.

Social media can also be a great avenue for finding interview subjects. “LinkedIn is very useful if your [target customer] has a very specific job or works in a very specific industry or sector. It’s amazing the amount of people that will be willing to help,” explains Miguel González, a marketing executive at Dealers League . “My advice here is BE BRAVE, go to LinkedIn, or even to people you know and ask them, do quick interviews and ask real people that belong to that market and segment and get your buyer persona information first hand.”

Market research interviews can provide direct feedback on your brand, product, or service and give you a better understanding of consumer pain points and interests.

When organizing your market research interviews, you want to pay special attention to the sample group you’re selecting, as it will directly impact the information you receive. According to Tanya Zhang, the co-founder of Nimble Made , you want to first determine whether you want to choose a representative sample—for example, interviewing people who match each of the buyer persona/customer profiles you’ve developed—or a random sample.

“A sampling of your usual persona styles, for example, can validate details that you’ve already established about your product, while a random sampling may [help you] discover a new way people may use your product,” Zhang says.

Market Surveys

Market surveys solicit customer inclinations regarding your potential product or service through a series of open-ended questions. This direct outreach to your target audience can provide information on your customers’ preferences, attitudes, buying potential, and more.

Every expert we asked voiced unanimous support for market surveys as a powerful tool for market research. With the advent of various survey tools with accessible pricing—or free use—it’s never been easier to assemble, disseminate, and gather market surveys. While it should also be noted that surveys shouldn’t replace customer interviews , they can be used to supplement customer interviews to give you feedback from a broader audience.

Who to Include in Market Surveys

• Current customers
• Past customers
• Your existing audience (such as social media/newsletter audiences)

Example Questions to Include in Market Surveys

While the exact questions will vary for each business, here are some common, helpful questions that you may want to consider for your market survey. Demographic Questions: the questions that help you understand, demographically, who your target customers are:

• “What is your age?”
• “Where do you live?”
• “What is your gender identity?”
• “What is your household income?”
• “What is your household size?”
• “What do you do for a living?”
• “What is your highest level of education?”

Product-Based Questions: Whether you’re seeking feedback for an existing brand or an entirely new one, these questions will help you get a sense of how people feel about your business, product, or service:

• “How well does/would our product/service meet your needs?”
• “How does our product/service compare to similar products/services that you use?”
• “How long have you been a customer?” or “What is the likelihood that you would be a customer of our brand?

Personal/Informative Questions: the deeper questions that help you understand how your audience thinks and what they care about.

• “What are your biggest challenges?”
• “What’s most important to you?”
• “What do you do for fun (hobbies, interests, activities)?”
• “Where do you seek new information when researching a new product?”
• “How do you like to make purchases?”
• “What is your preferred method for interacting with a brand?”

Survey Tools

Online survey tools make it easy to distribute surveys and collect responses. The best part is that there are many free tools available. If you’re making your own online survey, you may want to consider SurveyMonkey, Typeform, Google Forms, or Zoho Survey.

Competitive Analysis

A competitive analysis is a breakdown of how your business stacks up against the competition. There are many different ways to conduct this analysis. One of the most popular methods is a SWOT analysis, which stands for “strengths, weaknesses, opportunities, and threats.” This type of analysis is helpful because it gives you a more robust understanding of why a customer might choose a competitor over your business. Seeing how you stack up against the competition can give you the direction you need to carve out your place as a market leader.

Social Media Analysis

Social media has fundamentally changed the market research landscape, making it easier than ever to engage with a wide swath of consumers. Follow your current or potential competitors on social media to see what they’re posting and how their audience is engaging with it. Social media can also give you a lower cost opportunity for testing different messaging and brand positioning.

SEO Analysis and Opportunities

SEO analysis can help you identify the digital competition for getting the word out about your brand, product, or service. You won’t want to overlook this valuable information. Search listening tools offer a novel approach to understanding the market and generating the content strategy that will drive business. Tools like Google Trends and Awario can streamline this process.

Ready to Kick Your Business Into High Gear?

Now that you’ve completed the guide to market research you know you’re ready to put on your researcher hat to give your business the best start. Still not sure how actually… launch the thing? Our free mini-course can run you through the essentials for starting your side hustle .

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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11 Expert Tips for Conducting Better Market Research

Market research is so important that it can mean the difference between success and disaster for a business.

Today’s market, especially with the added challenges of COVID-19, is more volatile than ever. What may have been a “tried and true” method that worked five years ago probably isn’t seeing the same success today.

In addition to analyzing past and current trends, market researchers face the difficult task of finding ways to improve, use forecasts to predict how the market is going to shift, and determine what a business can do to stay one step ahead of the changes.

Some business owners hire professional market researchers to conduct this deep-level analysis. But for small operations, that option isn’t always in the budget.

We’ll break down our top tips to help you improve market research for your business, whether you’re conducting the research yourself in-house or outsourcing it to a third-party professional.

11 Ways to Improve Market Research Skills and Methods for Your Business

Businesses rely on a variety of market research methods. The most common types of market research are surveys, customer observations, focus groups, and interviews, but that’s not an all-inclusive list.

Market research can also include studying website traffic, social media interactions, studies published within a particular industry, field trials, and other means of collecting and analyzing information.

Here are some ways to improve market research:

1. Identify New Opportunities and Needs

One thing is certain about the market – it’s always changing. This state of constant evolution means a market researcher needs to use their analytical skills to study:

• Current trends
• Demographics
• Market size
• Market shares
• Trend forecasts
• Industry suppliers
• Geographic distribution
• Key competitors
• Market gaps, needs, and demands

Collecting this information and pinpointing potential areas of improvement is a critical first step in understanding the existing market and finding opportunities for business strategies, advertising, and products.

2. Understand Your Customers

In order to accurately target the customers in your market niche, you need to know who your customers are. This type of research can be conducted through focus groups, questionnaires, surveys, interviews, and analytical data collected from online interactions with your brand.

It’s important to create a customer profile that not only identifies demographics such as age, income, and interests, but also identifies needs that aren’t being met and how your audience may have changed over time.

3. Conduct Brand Research

There’s a surprising disconnect between how most companies perceive their brand and how their customers perceive it. Even the colors you choose can impact brand recognition by as much as 80% , which means seemingly minor details likely have a bigger impact than business owners realize.

This is where thorough brand research can help businesses improve their overall branding and shed light on:

• How familiar customers are with a brand
• The memorability of a logo and company name
• How customers view a brand in comparison to competitors
• What kind of reputation customers and potential customers think a brand has
• Overall brand perception and awareness in the marketplace
• How customers feel about a brand’s website, social media presence, ads, content, etc.

4. Collect and Analyze Data

Collecting data is a major part of the process, but even more important is being able to analyze that data and determine trends and changes that are currently or may soon impact your business.

Data collection and analysis needs to be a continuous process happening at every phase. Even if you did diligent research prior to launching your latest product, you then need to follow up after the launch and continue to gather customer feedback and market data.

Also, strive to measure the effectiveness of your marketing campaigns with analysis that will drive future campaigns.

5. Don’t Make Assumptions

One of the most dangerous pitfalls a market researcher can fall into is allowing assumptions to enter the equation. It’s easy to notice patterns and make automatic assumptions without diving deeper to explore why certain trends are happening.

That’s a recipe for disaster. Decisions should be made based on the numbers, studies, feedback, and trends – not unverified assumptions.

6. Apply Personalized Problem-Solving Techniques per Project

Every project should be handled individually. There is no blanket, one-size-fits-all approach when it comes to problem solving for different aspects of the market.

If you’re sending out surveys as the primary means of collecting data for your market research, take the time to consider your goal each time. Don’t create an all-in-one survey and send it out to everybody.

Instead, tailor your questions and send them to targeted people. Customers participating in your brand awareness survey should not be getting a carbon copy of your customer satisfaction survey, nor should both groups be receiving one survey that covers questions from both topics.

Taking an individualized problem-solving approach on a project-by-project basis will improve the accuracy of your market research.

7. Improve Communication Skills

In order to gather the most useful data, participants need to have a clear understanding of the questions they’re being asked.

Verbal and written communication skills need to be strong in order to clearly and accurately convey information and create well-documented reports.

8. Gather Product Feature Insights

Whether you’re launching a new product or making updates to an existing one, product feature research should be a part of your overall market research – ideally before you commit to the expenses of large-scale production costs and advertising.

Consumer feedback on concepts and, when possible, prototypes can reveal design flaws, packaging issues, and other problems that will save you a lot of time and money if you can address these issues before the official launch.

Qualitative research such as focus groups, interviews, and open-ended survey questions is best to gather insights you may not have expected from your beta testers.

9. Be Transparent

Market research usually involves interacting with participants in some capacity, whether that’s in-person interviews, virtual focus groups, telephone surveys, digital questionnaires, etc.

Participants need to have a clear understanding of exactly how you intend to use their information. Be open and honest upfront. Failing to do so can have serious repercussions later and may skew your data if participants are uneasy about giving their true opinions.

10. Incentivize Participants

When you’re looking for ways to improve market research, consider what’s motivating the respondents who are providing you with data. Are they being compensated with discounts or prize drawings? Will they be allowed to test a new product prototype?

Remember that just as your time is valuable, so is the time of the people providing you with data. Consider your audience and the best ways you could incentivize them for maximum participation. Incentives designed for B2C surveys are probably not going to be as effective for B2B, and vice versa.

11. Keep Your Surveys, Questionnaires, and Interviews Short and Simple

We already mentioned the importance of communication when it comes to improving market research. In addition to clearly communicating your needs and expectations, make sure you’re keeping the process simple.

Questions should not be complicated and confusing, and your survey shouldn’t take too long to complete. Studies have shown that the response rate drops by 15% if a survey takes more than 5 minutes to finish, with a 40% drop rate past 10 minutes.

Market research is important, but if you need to gather a lot of data, try to break it up into smaller, more manageable sessions so the participants helping you don’t feel overwhelmed.

Improve the Validity of Market Research for Business Success

Market research goes much deeper than simply sending out a survey and generating a report of the responses.

When done in a thorough and meticulous manner, market research can (and should) bring in a ton of data that needs to be analyzed and compiled into written and visual reports capable of showing trends, demographics, and opportunities.

It’s an important part of the business process, and it starts with asking the right questions. Gathering a lot of data is good if it’s the right data. Otherwise, you’re not helping your business make the best strategic decisions for a successful future.

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6 Key Market Research Skills for 2021

It’s that time again, when we begin to focus on the coming year and what it may have in store. One area that saw remarkable shifts in 2020, both in challenges and opportunities, is market research. For a peek at the future, we reached out to several leading market researchers and insights professionals and posed the question: What’s one skill or area of expertise you want to focus on developing in 2021, and why?

Not surprisingly, some are focused on how doing everything online has generated more and more data— good news but in some ways challenging news, too, as competition for stakeholders’ attention grows fiercer. To increase the influence of research findings on business decision making—which maximizes the research ROI and benefits everyone—it’s necessary to break through the noise and keep stakeholders engaged. And, of course, more time spent online also opens more and different opportunities to engage with customers and prospects.

Another trend is the power of human creativity in extracting meaning from data. Technology can only take us so far, in both gathering and analyzing data. Human learning continues to be critical, along with our unique ability to use stories to find and share meaning.

And because everything old eventually becomes new again, we see renewed attention to a foundational market research skill: the art of the interview.

Check out the top skills and areas of expertise that six market research leaders plan to focus on in 2021.

Omnichannel Strategies

Jerry Han, Chief Marketing Executive at PrizeRebel , is focused on omnichannel technology and marketing. According to Han, as more large companies and brands are making effective use of omnichannel strategies in their marketing and brand awareness plans, it has become practical to use an omnichannel approach in data gathering for market research.

Knowledge in omnichannel technology and marketing is a crucial skill to master in 2021. Omnichannel market research targets all possible places where the audience possibly hangs out, including in-store, digital, or mobile platforms to give a more comprehensive outlook on the target market…[It’s] a relatively new concept, but it shows massive potential in reshaping data gathering for marketing campaigns.

Deeper Analysis and Experience Management

Michelle Diamond, CEO at Elevate Diamond Strategy , is emphasizing deeper data analysis (as opposed to more data collection) to maximize value from the plethora of data being generated. She also sees opportunities in experience management, which helps companies capitalize on opportunities and mitigate problems before they occur.

The world is going even more online than we were before and the need to make better sense of all this additional data is crucial. In addition, companies are more sensitive now to anticipating problems beforehand, as reacting to problems later can be costly from a financial and reputational standpoint.

Both these trends highlight the value in—and the need to—act on insights in real time. Businesses have treasure troves of data, and uncovering actionable insights from that data will help them mitigate risk and deliver positive customer experiences. 

Data Triangulation

Speaking of acting on insights in real time: Andria Long , Growth & Innovation Advisor, says the key to differentiation is being able to learn and act faster. She considers the most important skill for the insights professional to be data triangulation : uncovering and synthesizing connections across multiple and diverse data sources.

At the end of the day, everyone has access to the same data…converting data into insights is critical. The ability to see what’s NOT there and make something happen is essential with accelerated industry transformation, growing volumes of data, and rapidly evolving consumer preferences.

She goes on to note that it’s human learning that enables insights professionals to stay relevant and continue growing professionally in an era of machine learning.

In addition to data, we need to gain insights from observation, experience, reflection, and reasoning and make recommendations to drive growth.

Back to Basics: Interviewing Skills

According to Colin Palfrey, CMO at Majesty Coffee , everyone should be honing the skills needed to interview customers and others in their target audience. Good interview skills have become more important than ever with many people working remotely, as the dynamics of interviewing virtually are different than interviewing in person: 

Everything has changed in the last eight months, and if you want your business to thrive, you need to be in touch with your audience. I’ve found that actual interviews are so much more efficient than surveys. When you interview someone, you can understand the context a bit more and ask follow-up questions.

Storytelling

One evergreen challenge for market research professionals is communicating insights to stakeholders in a way that sticks and drives action. With researchers and stakeholders working remotely or in different locations, keeping stakeholders engaged and interested is more important than ever. Organizing data and research findings into meaningful stories is a great way to hold stakeholders’ attention and make an impact.

Bruce Harpham , Marketing Consultant, is getting serious about developing his storytelling skills.

I gather a lot of data, quantitative and qualitative, while working with clients. Without a story to organize all this data, it is nearly impossible to remember insights and improve.

To build his storytelling chops, Bruce is reading (Wired for Story: The Writer’s Guide to Using Brain Science to Hook Readers from the Very First Sentence by Lisa Cron) and writing (participating in National Novel Writing Month).

Activating Insight

In addition to conveying insights through stories, researchers can increase their influence by tailoring their insights delivery to stakeholders and getting creative with the formats of their presentations. 

Chris Martin, CMO at FlexMR , is considering the stakeholder’s perspective and says it will be vital, through 2021 and beyond, for research professionals to get better at activating insight.

The explosion of research and analysis technology of the past decade has given stakeholders access to an increasingly complex data landscape. Research professionals need to find new ways and new skills to help grow the influence of research conclusions.  Ensuring that findings have an impact on business decision making means competing for stakeholder attention in a competitive environment. Creativity, strategy and storytelling will all be essential components—applied in original and inventive ways to maximize stakeholder engagement.

Hopefully, 2021 will hold fewer surprises than this year, less disruption and urgent adaptation and more smooth sailing while we learn to leverage some of the skills and processes that emerged in 2020. But whatever 2021 has in store, developing the skills and areas of expertise above can help research professionals be agile and act as strategic advisors for their stakeholders. 

We see the future of market research as exciting as it’s ever been, and we want to thank the research and insights professionals who helped us take a look at what lies ahead.

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How to Do Market Research: A Definitive Guide

Article Snapshot

Section 1: introduction to market research.

Before we dive into the intricacies of market research, let's first establish a solid understanding of what it entails. Market research is the systematic process of collecting, analyzing, and interpreting data about a target market or industry. It involves gathering information about potential customers, their needs and preferences, as well as assessing the overall market landscape and identifying opportunities for growth.

Market research plays a vital role in shaping business strategies and decision-making processes. It helps businesses identify market trends, evaluate product or service viability, understand customer behavior, and develop effective marketing campaigns. By leveraging market research, companies can minimize risks, optimize resources, and increase their chances of success.

Section 2: Preparing for Market Research

Before embarking on any market research endeavor, it is crucial to establish clear objectives and determine the appropriate research methodology. In this section, we will guide you through the essential steps of preparing for market research.

Defining Research Objectives

The first step in any market research project is to define clear research objectives. These objectives should align with your business goals and provide a framework for your research efforts. Whether you aim to understand customer satisfaction, evaluate market potential for a new product, or analyze competitor strategies, defining specific and measurable objectives is essential to ensure the research is focused and effective.

Choosing the Right Research Methodology

Once you have defined your research objectives, the next step is to select the most appropriate research methodology. There are various methodologies available, each with its strengths and limitations. Qualitative research methods, such as interviews and focus groups, allow for in-depth exploration of customer opinions and perceptions. On the other hand, quantitative research methods, like surveys and data analysis, provide statistical insights and numerical data.

Creating a Research Plan

To ensure the success of your market research endeavor, it is essential to develop a comprehensive research plan. A research plan outlines the steps, timeline, budget, and resources required for your market research project. By creating a well-structured plan, you can effectively manage your research activities, allocate resources efficiently, and stay on track to achieve your research objectives.

Section 3: Conducting Primary Market Research

Primary market research involves collecting firsthand data directly from your target audience. This section will explore various primary research methods and provide insights into how to conduct effective primary market research.

Survey Research

Surveys are a popular and effective method for gathering primary research data. They allow businesses to collect a large volume of data from a diverse audience. Designing effective survey questions, selecting appropriate survey administration methods, and maximizing response rates are crucial elements to consider when conducting survey research.

Interviews and Focus Groups

Interviews and focus groups offer a more in-depth understanding of customer opinions and behaviors. By engaging directly with participants, businesses can explore complex topics and gain valuable insights. This section will cover techniques for conducting successful interviews and focus groups, as well as analyzing and interpreting the qualitative data obtained.

Observational Research

Observational research involves observing and analyzing consumer behavior in real-life situations. This method provides rich insights into consumer interactions, preferences, and decision-making processes. We will discuss different types of observational research and address ethical considerations associated with this methodology.

Section 4: Gathering and Analyzing Secondary Market Research

Secondary market research involves gathering existing data and information from various sources. This section will explore reliable sources for secondary research data, data collection methods, and techniques for analyzing and interpreting secondary research findings.

Sources of Secondary Research Data

Identifying reputable sources for secondary market research data is crucial for obtaining accurate and reliable information. We will explore a wide range of sources, including market research firms, industry reports, government publications, and online databases.

Data Collection and Analysis

Once you have gathered the secondary research data, the next step is to organize and analyze it effectively. This section will provide insights into various data collection methods and techniques for analyzing and interpreting secondary research findings. We will also discuss the utilization of data visualization tools to present data in a visually appealing and informative manner.

Section 5: Utilizing Market Research Findings

Market research findings hold immense value only when they are effectively utilized to drive business growth. In this section, we will explore how to interpret and apply research findings, communicate results, and continually monitor and evaluate market research efforts.

Interpreting and Applying Research Findings

Interpreting research findings accurately is vital to extract actionable insights. We will discuss techniques and strategies for interpreting research findings and applying them to make informed business decisions. Real-world case studies will be presented to illustrate the practical application of market research findings.

Communicating Research Results

Effectively communicating research results is essential for ensuring that the insights gained are understood and utilized by key stakeholders. This section will provide tips for creating visually appealing and informative research reports and delivering impactful presentations to stakeholders and decision-makers.

Monitoring and Evaluating Market Research

Market research is an ongoing process, and continuous monitoring and evaluation are crucial to stay abreast of market trends and changes. We will explore strategies for tracking market dynamics, monitoring the effectiveness of research efforts, and adjusting research strategies based on feedback and evolving market conditions.

Understanding the Importance of Market Research

Market research is an indispensable component of any successful business strategy. It provides crucial insights into customer behavior, market trends, and competitor analysis, enabling businesses to make informed decisions and gain a competitive edge. In this section, we will explore the significance of market research and its role in driving business success.

The Value of Market Research

Market research serves as a guiding light for businesses, helping them navigate the complex landscape of consumer demands and market dynamics. By conducting thorough research, businesses can gain a deep understanding of their target audience, identify unmet needs, and develop products or services that truly resonate with their customers.

One of the primary benefits of market research is its ability to minimize risk. By gathering data and insights before launching a new product or expanding into a new market, businesses can assess market potential, evaluate customer preferences, and anticipate potential challenges. This proactive approach reduces the likelihood of costly mistakes and increases the chances of success.

Moreover, market research plays a vital role in identifying and capitalizing on market opportunities. By staying attuned to market trends, businesses can spot emerging consumer needs, industry shifts, and technological advancements. Armed with this knowledge, they can adapt their strategies, develop innovative solutions, and stay ahead of the competition.

Market research also provides a solid foundation for effective marketing campaigns. By understanding the target audience's preferences, motivations, and pain points, businesses can tailor their messaging, positioning, and communication channels to effectively reach and engage their customers. This targeted approach not only increases customer acquisition but also enhances customer loyalty and brand advocacy.

The Risks of Neglecting Market Research

Failing to conduct market research can have dire consequences for businesses. Without a deep understanding of their target audience, businesses risk developing products or services that do not meet customer needs or preferences. This can lead to low customer satisfaction, decreased sales, and ultimately, business failure.

Additionally, neglecting market research can result in missed opportunities. In a rapidly evolving marketplace, failing to track consumer trends, competitor strategies, and industry shifts can leave businesses lagging behind. By the time they realize the need for change, it may be too late to catch up, leading to lost market share and diminished competitiveness.

Furthermore, without market research, businesses may struggle to effectively allocate their resources. They may invest in marketing campaigns that do not resonate with their target audience or allocate resources to markets with limited potential. This misalignment of resources can drain finances and hinder overall business growth.

The Role of Market Research in Decision-Making

Market research serves as a compass for decision-making, guiding businesses in making strategic choices based on data-driven insights. Whether it is launching a new product, entering a new market, or adjusting pricing strategies, market research provides the necessary information to make informed decisions.

By conducting market research, businesses can gain a comprehensive understanding of their target audience's preferences, needs, and behaviors. This knowledge allows them to develop products or services that align with customer expectations, resulting in higher customer satisfaction and increased sales.

Market research also empowers businesses to assess the competitive landscape. By studying competitors' strengths, weaknesses, and market positioning, businesses can identify gaps and opportunities for differentiation. This knowledge enables them to develop unique value propositions and competitive strategies that set them apart from their rivals.

Additionally, market research helps businesses evaluate the effectiveness of their marketing efforts. By measuring key performance indicators (KPIs) and analyzing consumer responses, businesses can identify areas for improvement and refine their marketing strategies. This iterative approach ensures that marketing budgets are optimized and yields the highest return on investment (ROI).

In conclusion, market research is an invaluable tool for businesses aiming to thrive in a competitive marketplace. By understanding the importance of market research and leveraging its insights, businesses can make informed decisions, minimize risks, seize opportunities, and ultimately drive sustainable growth. Now that we have established the significance of market research, let's delve into the practical steps of preparing for and conducting market research.

Preparing for Market Research

Before diving into market research, it is crucial to lay a solid foundation by preparing for the research process. This section will explore the essential steps involved in preparing for market research, including defining research objectives, selecting the appropriate research methodology, and creating a comprehensive research plan.

Clearly defining research objectives is the cornerstone of any successful market research project. Research objectives serve as guiding principles that outline the specific goals and outcomes you hope to achieve through your research efforts. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART).

When defining your research objectives, consider what you aim to accomplish. Are you seeking to understand customer preferences for a new product? Do you want to assess market potential for a specific geographic region? Defining clear and focused research objectives will help you stay on track and ensure that your research efforts yield actionable insights.

Once you have defined your research objectives, the next step is to select the most appropriate research methodology. Different research methodologies offer unique advantages and are suited for different research objectives.

Qualitative research methods, such as interviews and focus groups, provide in-depth insights into customer opinions, attitudes, and perceptions. These methods allow for rich, nuanced data collection and are particularly useful for exploring complex topics or understanding the underlying motivations and emotions driving consumer behavior.

Quantitative research methods, on the other hand, involve the collection and analysis of numerical data. Surveys and questionnaires are common quantitative research tools that allow for large-scale data collection. These methods are useful for measuring customer satisfaction, analyzing customer preferences, and identifying statistical relationships between variables.

It's important to choose a research methodology that aligns with your research objectives, budget, and time constraints. Consider the advantages and limitations of each methodology and select the one that will provide the most relevant and accurate data for your specific research needs.

A well-structured research plan is essential for conducting market research efficiently and effectively. A research plan serves as a roadmap that outlines the steps, timeline, budget, and resources required for your research project.

By creating a comprehensive research plan, you can ensure that your market research efforts are well-organized, efficient, and yield valuable insights. The plan will also serve as a reference point to track progress and make adjustments as needed throughout the research process.

Now that you understand the importance of preparing for market research, we will delve into the practicalities of conducting primary market research in the next section.

Conducting Primary Market Research

Survey research is one of the most commonly used methods for collecting primary research data. Surveys allow businesses to gather a large volume of data from a diverse audience efficiently. They can be conducted through various channels, including online surveys, phone interviews, or in-person questionnaires.

When designing a survey, it is important to carefully craft the survey questions to ensure they are clear, unbiased, and relevant to the research objectives. Use a combination of open-ended and closed-ended questions to gather both qualitative and quantitative data. Open-ended questions provide respondents with the opportunity to express their opinions and provide detailed feedback, while closed-ended questions offer predefined response choices that can be easily analyzed.

To maximize response rates, it is essential to carefully consider the survey administration method. Online surveys are cost-effective and convenient, allowing respondents to complete the survey at their convenience. Phone interviews provide a personal touch and allow for follow-up questions, while in-person questionnaires enable businesses to interact directly with respondents. Choosing the appropriate survey administration method depends on factors such as target audience demographics, research objectives, and available resources.

Additionally, it is crucial to consider respondent fatigue and survey length. Long and tedious surveys can lead to decreased response rates and inaccuracies in responses. Keep the survey concise, focused, and engaging to ensure higher participation and reliable data.

Interviews and focus groups provide valuable qualitative insights into consumer opinions, preferences, and behaviors. These methods allow businesses to engage directly with participants and gain a deeper understanding of their thoughts and motivations.

Interviews can be conducted in-person, over the phone, or through video calls. They provide an opportunity to ask probing questions, delve into specific topics, and explore in-depth responses. The interviewer can adapt the questioning based on the participant's responses, allowing for a dynamic and personalized conversation.

Focus groups involve bringing together a small group of individuals to discuss a specific topic or product. This method allows participants to interact with one another, share their opinions, and generate insights through group discussions. Focus groups provide a unique perspective by capturing the collective thoughts and experiences of the participants.

To conduct successful interviews and focus groups, it is essential to carefully plan the session. Develop a discussion guide or interview script that includes a set of key questions or topics to cover. This will ensure consistency and enable comparability across interviews or focus groups. Actively listen to participants, encourage open and honest responses, and create a comfortable environment for sharing opinions.

Qualitative data obtained from interviews and focus groups require careful analysis. Use techniques such as thematic analysis or coding to identify recurring themes, patterns, and insights. These qualitative insights can provide valuable context and depth to complement quantitative data collected through surveys or other methods.

Observational research involves observing and analyzing consumer behavior in real-life settings. This method allows businesses to gain insights into consumer interactions, preferences, and decision-making processes. It can be particularly useful in retail environments, public spaces, or during product usage.

Participant observation involves immersing oneself in the context being studied and actively participating in the observed activities. This method allows researchers to gain firsthand experience and capture the nuances of behavior and interactions. Non-participant observation, on the other hand, involves observing from a distance without directly engaging with the participants. This method allows for more objective observations and avoids potential biases that may arise from researcher-participant interaction.

When conducting observational research, it is essential to consider ethical considerations and obtain necessary permissions, especially in public spaces or when observing sensitive behavior. Maintain confidentiality and anonymity of participants and ensure that the research does not infringe upon their privacy.

Observational research often involves recording observations through notes, photographs, or video recordings. These records serve as valuable data for analysis and interpretation. Analyze the collected data by identifying patterns, behaviors, and trends. Observational research findings can be used to supplement and validate other primary research methods, providing a comprehensive understanding of consumer behavior.

As we have explored the various primary research methods, it is important to note that choosing the appropriate method depends on the research objectives, target audience, available resources, and the depth of insights required. By carefully selecting and conducting primary market research methods, businesses can uncover valuable insights about their target audience, preferences, and behaviors.

Gathering and Analyzing Secondary Market Research

While primary market research provides valuable firsthand data, secondary market research involves gathering existing data and information from various sources. This section will explore the sources of secondary research data and provide insights into data collection methods and techniques for analyzing and interpreting secondary research findings.

Secondary market research relies on existing data and information that has been collected by others. There are various sources from which businesses can gather secondary research data, including:

When gathering secondary research data, it is crucial to consider the reliability and credibility of the sources. Ensure that the data comes from reputable sources and is up-to-date. Cross-referencing information from multiple sources can help validate the accuracy and consistency of the data.

Once you have gathered the relevant secondary research data, the next step is to organize and analyze it effectively. The process of data collection and analysis involves several key steps:

Secondary research findings should be interpreted and used in conjunction with primary research data to gain a comprehensive understanding of the market landscape. Combining primary and secondary research data allows for triangulation, validation, and a more holistic analysis of the research objectives.

By effectively gathering and analyzing secondary research data, businesses can gain valuable insights into market trends, consumer behavior, and industry dynamics. These insights serve as a foundation for informed decision-making, strategy formulation, and staying ahead of the competition.

Utilizing Market Research Findings

Interpreting and analyzing research findings is a critical step in extracting actionable insights that can drive business decisions. Here are some key considerations when interpreting and applying research findings:

Remember that market research is an iterative process, and new insights may emerge as you delve deeper into the data. Continuously revisit and refine your interpretation of the research findings to ensure that you capture the most accurate and valuable insights.

Effectively communicating research results is crucial to ensure that the insights gained are understood and utilized by key stakeholders. Here are some tips for communicating research results:

Market research is an ongoing process that requires continuous monitoring and evaluation. Here are some key aspects to consider when monitoring and evaluating market research efforts:

By monitoring and evaluating market research efforts, you can ensure that the insights gained are effectively utilized and that your research strategies remain aligned with the evolving market landscape.

In conclusion, effectively utilizing market research findings is essential for driving business growth and staying ahead of the competition. By interpreting and applying research findings, communicating results effectively, and continuously monitoring and evaluating research efforts, businesses can make informed decisions, improve customer experiences, and seize market opportunities.

Conclusion: The Power of Market Research

Market research is a powerful tool that empowers businesses to make informed decisions, understand their target audience, and gain a competitive edge. Throughout this comprehensive guide, we have explored the various aspects of market research, from understanding its importance to conducting primary and secondary research, and utilizing research findings effectively. Now, let's recap the key points and emphasize the power of market research in driving business success.

Market research serves as a compass for businesses, guiding them through the complex landscape of consumer demands, market trends, and competitor analysis. By conducting thorough research, businesses can gain valuable insights into their target audience, identify market opportunities, and mitigate risks. Market research enables businesses to make informed decisions, optimize resources, and drive sustainable growth.

One of the primary benefits of market research is its ability to provide a deep understanding of customer preferences and needs. By gaining insights into customer behavior, businesses can develop products and services that truly resonate with their target audience, leading to higher customer satisfaction and loyalty.

Market research also enables businesses to stay ahead of the competition. By monitoring market trends, tracking competitor activities, and assessing industry dynamics, businesses can identify emerging opportunities and adapt their strategies accordingly. This flexibility allows businesses to maintain a competitive edge and seize market opportunities before their competitors.

Furthermore, market research plays a vital role in effective marketing campaigns. By understanding consumer preferences, motivations, and pain points, businesses can tailor their messaging, positioning, and communication channels to reach and engage their target audience more effectively. This targeted approach increases customer acquisition, enhances brand perception, and drives business growth.

However, market research is not a one-time endeavor. It requires continuous monitoring and evaluation to stay attuned to evolving market trends, consumer preferences, and competitive dynamics. By monitoring key metrics, tracking market trends, and gathering ongoing customer feedback, businesses can refine their strategies, identify areas for improvement, and deliver exceptional customer experiences.

In conclusion, market research is an indispensable tool for businesses aiming to thrive in a competitive marketplace. By understanding the importance of market research, preparing thoroughly, conducting primary and secondary research effectively, interpreting and applying research findings, and continuously monitoring and evaluating research efforts, businesses can gain a deeper understanding of their target audience, make informed decisions, and drive business growth. Embrace the power of market research and unlock the endless opportunities it holds for your organization.

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Top market research analyst skills for 2024

Market research is a rapidly evolving space. Artificial intelligence is completely reshaping what’s possible, by who and the skills researchers need to bring the most value to their work and themselves. With the help of findings from the 2024 Qualtrics Research Trends report, here we look at the major trends in a changing landscape, and the skills that are most in demand.

The market research landscape in 2024

In a growth-obsessed business world, good market research is the key to responding fastest, creating a competitive advantage and converting potential into success.

And today, fueled by artificial intelligence (AI), the world of market research is evolving at an unprecedented rate.

It’s no surprise that, according to the latest Qualtrics Research Trends report , the value of good research is higher than it has ever been. It’s equally unsurprising that investment in market research is very much on the rise.

Every year, we ask thousands of researchers from across the globe about their experiences to understand how the market is shifting and create the annual Qualtrics Research Trends report. Here are the four main trends we discovered for 2024.

1. Succeeding in the AI revolution is paramount

As sophisticated AI has become an accessible, everyday tool for workers and businesses, its application to market research – generating rich insights from mountains of qualitative and quantitative data in the blink of an eye – has become abundantly clear.

AI has lept from a helpful tool to an integral component of market research, and it’s reshaping the research landscape.

We’re seeing it used to analyze multi-source (qualitative and quantitative) research to generate insights, transform raw findings into marketing strategies, and drive new efficiencies through AI-driven survey reviews that are preventing data-damaging question types or structures.

Our research found that 47% of researchers globally are already using AI in their day-to-day work, and 92% are confident that they understand how to apply AI to research activities. Despite the ‘AI will steal your job’ narrative persisting, most researchers (87%) feel overwhelmingly strong about their job security.

Market research is ripe for AI innovation; it’s an ideal starting point for companies to see what AI-fueled innovation looks like. The race is now focused on how to leverage AI tools to generate the best results.

2. Digital qual is taking over

Digital qualitative research has fast become a popular route for researchers searching for deeper, more nuanced feedback from more people in a cost-effective way. In fact, 87% of researchers say that most or an equal amount of their qualitative research is currently conducted remotely or online vs. in-person.

But how did we get here? There are two key trends that have driven this transition.

On one hand, conducting comprehensive research via traditional methods, like in-person focus groups and large-scale surveys, has become a pain point for market research analysts – it can be slow, labor-intensive and expensive. On the other is the COVID-19 pandemic, which forced researchers to adopt digital-first approaches out of necessity – and saw consumers accept digital interactions as standard enmasse.

As digital qualitative technology evolves at a rapid pace, market research teams are retooling and restructuring to embrace both in-person and online research methods as the demand to collect data in a contactless, remote way grows.

Our research shows that cost effectiveness is the primary benefit of digital qual, but there are many more: increased geographical diversity, faster time to insights, increased accessibility and better reach of target audience are the other key drivers.

3. Data quality is becoming even more important

Behind every good decision lies good quality data – this has always been clear, but as consumers and technology evolve, it has become increasingly difficult to capture.

AI’s impact on market research is immense but it’s not necessarily all positive: it’s no coincidence that rising issues with quality data have coincided with the rise of generative technology like ChatGPT. 43% of respondents in the 2024 Qualtrics Research Trends report say identifying and/or preventing AI-generated responses is a challenge when collecting data using online providers.

But there’s a flip side to this issue, and AI is of course at the center of it once again. While data quality is at risk from AI, it can also be maintained and improved by it. AI can be used to automatically flag issues, like respondents who completed surveys too quickly or open-ended questions that contain nonsensical answers, and intelligently comb through thousands of data points far more efficiently and effectively than a data analyst can.

However they get there, the organizations that prioritize a relentless pursuit of data excellence will be best prepared to make strategic, data-driven decisions.

4. The skills gap is widening

While we’re definitely seeing market researchers adopt AI and learn new AI-focused skills, the pace at which they’re developing these skills is lagging behind the speed at which the technology itself is evolving. According to our data, a third of researchers globally say they outsource projects because their teams don’t have the research skills to manage them internally.

Although AI appears to be widening the skills gap, yet again it can also be the solution to it. Skills development can’t come without the capacity to learn, and AI-powered automation can take on repetitive manual tasks better than ever before – freeing up valuable time for upskilling.

Free eBook: 2024 research trends report

5 market research skills organizations are prioritizing in 2024

The research industry is in a state of significant change. We’re seeing a rapid adoption of new technologies, which is in turn reshaping the skills required for success.

But while new skills are highly valuable, it’s important to not neglect the timeless skills that will be sought after in current and future market research analysts.

As we delve into the top five research skills organizations are prioritizing in 2024, we recommend that you complete a quick skills audit. Determining where your strengths and weaknesses are, what you know and what you don’t, will give you the clarity to understand how you can become a more well-rounded – and employable – researcher or market research analyst.

Starting this list with what is now arguably the most crucial skill today.

AI is being applied at all stages of the research lifecycle, from quality assurance checks on surveys to spot biases to data cleaning, analyzing video from in-person qualitative research to creating highlight reels and shareable results. So, while broadly having good “AI skills” is certainly the way forward now, in the very near future the onus will be on specializing in specific components of AI-driven research.

Our recommendation is that you infuse AI into everything you do and go from there. The exponential growth of data and advanced AI tools makes knowing and understanding them essential for staying competitive in a data-driven market.

Safe to say, nothing is more central to career growth in market research right now than knowing how best to apply AI.

Statistical analysis skills

From new skills to those that will always be in demand.

Statistical analysis skills comprise the likes of statistical modeling, data collection strategies, data visualization and presentation, reconfiguration, Excel, R, SAS, Python – the list goes on. A timeless necessity, solid statistical techniques create the ability to interpret and manipulate data, and identify patterns and trends. In the Big Data era, the ability to distill meaningful information from vast datasets is more critical than ever for effective decision-making.

As researchers and organizations double-down on technologies, honing your statistical data analysis skills as a foundational competency can truly set you apart.

Digital qualitative skills

As digital qualitative research takes center stage, the broad collection of skills required to maximize it have become highly sought after.

Digital qualitative skills encompass designing, conducting and analyzing data from online interviews, focus groups and various other digital qual methods. It’s an umbrella term that also includes prospecting, designing research programs, crafting proposals, managing relationships and identifying target audiences. The main complexity, however, is that all of these skills must of course be done remotely.

A significant portion of researchers (36%) report difficulties in establishing the same level of rapport with participants online as in face-to-face settings. From communication skills to critical thinking, and becoming well-versed in all things consumer behavior, developing the core competencies to mitigate the challenges of online-only interactions is essential for any market researcher.

Data integration skills

This one is particularly important for modern organizations using digital technologies for market research. Data integration, on any research project, can be very complex – especially if market researchers are pulling and interpreting data from multiple sources.

Data integration skills are also essential for closing experience gaps, something that every organization is prioritizing.

The best researchers have a thorough understanding of how to extract information and combine data sets without compromising data quality. They’ll also understand how to structure APIs, use spreadsheets, model data, use statistical analytics programs and coding languages, and more. Of course, with newer market research platforms, much of this can be done with ease.

Automation skills

Automation has become vital in streamlining market research.

Automation skills enable researchers to use AI and machine learning for tasks like data analysis and report formatting, freeing them up for more strategic work. By mastering automation, researchers are better positioned to adapt to new trends and methodologies, ensuring their work remains relevant and impactful.

Developing automation skills isn’t just about understanding and using tools; it’s about reshaping the role of the market researcher to be more efficient and adaptable, and creating capacity for in-depth market research analysis and strategy development.

The importance of getting the basics right

In the fast-evolving field of market research, where cutting-edge technologies and advanced technical skills are often spotlighted, the importance of mastering the basics can’t be overstated. The foundation of effective market and marketing research lies in getting the basics right.

It's essential to not lose sight of fundamentals like survey best practices, interview skills and well-researched questions. These basics are the cornerstone of accurate data collection and ensure the clarity and relevance of the research. They are vital for engaging the right audience and for the effective analysis and interpretation of data.

While advanced technologies and skills are crucial, they should enhance, not overshadow, the foundational aspects of market research.

Embracing platformification in market research in 2024

In today's fast-paced market, having the right technology is crucial, just as much as having the right skills. The future of market research is "Platformification”, integrating various tools into a unified platform. This approach isn't about accumulating disparate solutions; it's about creating a cohesive system that enhances the capabilities of researchers at all skill levels.

Platformification streamlines research methods , data sources and analytics into a single, accessible platform. It allows for quick sharing of insights through tailored dashboards, offering both basic and complex analyses suitable for different roles.

For market researchers, this shift is transformative. It elevates their role from being reactive data analysts to proactive strategists, enabling on-demand insights and strategic recommendations across the buyer’s journey.

While fundamental research skills remain essential, platformification can expand the researcher's value and the impact they create.

How can we help

In a highly competitive business world – with disruptive new entrants more empowered than ever before – researchers need smarter, faster research solutions to stay ahead of the game.

Qualtrics® Strategic Research is an end-to-end research platform that brings together both quantitative and qualitative methods and AI-powered analytics to uncover insights at scale.

• Collect, analyze, share and act on insights from a variety of qualitative methods, including video feedback, video diary studies and in-depth interviews
• Leverage pre-built customisable projects, programs and dashboards
• Automate advanced statistical analyses including Conjoint and MaxDiff
• Easily build profiles, segments, and proprietary panels and reach out on the right channels through personalized targeting

Aaron Carpenter // Experience Management Content Strategist

Aaron is a highly skilled and accomplished content strategist specializing in experience management. With a keen understanding of the ever-evolving landscape of digital content, Aaron brings a unique perspective to the art of crafting engaging and impactful experiences for users.

Will Webster // Co-founder at interlude

Will Webster is the co-founder of the employee wellbeing tool Interlude. With over decades of experience writing for some of the largest brands, he is a skilled copywriter passionately writing in his free time.

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In today's competitive global economy, market research is an essential tool. It's what helps entrepreneurs refine their startup ideas to have the best odds of success. And it's also what established businesses use to explore the viability of new products and services. In short, modern businesses rarely make a move without doing market research first.

That makes the skills of market research analysts quite valuable in today's job market. But learning how to be a market research analyst isn't as straightforward as you might think. And that's because it's a discipline that's part science and part art form – meaning you'll need to develop a diverse skill set to be good at the job.

Here are the essential skills of a market research analyst.

Data Analysis Skills

At its heart, market research involves the collection of large amounts of data , which you then mine for useful insights about a given line of business or industry. And that means that data analysis is the most important part of the job of a market research analyst.

Specifically, market research analysts must understand four specific data analysis types, which are:

Descriptive Data Analysis – Techniques to organize and categorize historical data to identify existing trends. This is often used to quantify the results of past business practices in raw terms (like the number of sales, products manufactured, site visits, etc.).

Diagnostic Data Analysis – Techniques to compare data sets that help identify causal relationships. For example, if a descriptive analysis revealed increasing sales over a given period, a diagnostic analysis would seek the reason for the change (such as a marketing campaign, a price change, or an external trend).

Predictive Data Analysis – Techniques that use existing data to forecast future trends and outcomes. This often involves complex mathematical models and the application of machine learning algorithms to extract meaningful predictions from available data sets.

Prescriptive Data Analysis – A more advanced form of predictive analysis, prescriptive analysis attempts to forecast potential outcomes that result from hypothetical changes to business practices. An existing business might use this to determine if ending production of a particular product might have unintended consequences, or if the launch of a new product might make others redundant.

Data Collection Skills

Even though market research analysts often work with data that businesses already have on hand, they're frequently called upon to collect new data, as well. And that means they need to be skilled in a variety of data collection techniques, too. These include:

Interpersonal and Interview Skills – Market research analysts often use focus groups and customer interviews to collect specific data to use in their work. But getting usable data means having a high level of interpersonal skills and interview skills . This is critical to extract usable information that's free of potential biases.

Survey Creation – Market research analysts must know how to create scientifically valid surveys to focus in on the information they're hoping to gather. They also have to be familiar with using form builder software to create and publish digital versions of the surveys they create.

Data Curation – This refers to the skills needed to manage collected data and distill it down to what's useful for market research purposes. In other words, it means knowing how to eliminate irrelevant data and prepare what's left for the process of market research.

Communication Skills

One of the major purposes of market research is to uncover business insights that inform strategy. But data alone isn't always enough in a business context. And that's why a market research analyst needs strong communication skills , too. This allows them to communicate the significance of their findings to stakeholders, who may then use them in their decision-making processes. Without those skills, they'd be unable to function effectively within a business's hierarchy.

Data Visualization Skills

In addition to communication skills, market research analysts must understand how to create compelling data visualizations that aid in communicating their findings to others. Data visualizations are graphic representations of datasets, aimed at highlighting relevant trends or takeaways from the data. They make it possible for stakeholders without a background in data analysis to see and understand the work that a market research analyst does.

Knowledge of Human Behavior and Psychology

Since the role of a market research analyst is to understand how consumers will act and react to products, services, and business strategies, they need a deep understanding of human behavior and psychology. This is because market research doesn't always yield clear answers to every business question. And that's where the role of a market research analyst comes much closer to being an art form than a science.

Market research analysts have to use their knowledge of psychology to design appropriate investigations that will yield useful insight. This means they need a sharp sense of intuition and insight into consumer behavior. Otherwise, there would be no way to narrow down possible areas of inquiry. The knowledge provides valuable context and allows the market researcher to make baseline assumptions that guide their work.

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The Bottom Line

At the end of the day, the role of a market research analyst revolves around data. And that's what makes data analysis skills so crucial to the job. But unlike the role of a data scientist , a market research analyst must also know how to collect useful data through field research and direct consumer contact. They also have to understand the mind of the consumer. In other words, they must know their subjects as more than just raw numbers and data points.

All these skills allow market research analysts to provide the valuable insights that modern businesses now depend on. They reduce the number of costly errors that businesses make when they approach decisions without the appropriate information. And they deliver better and more relevant products and experiences to consumers. That said, it should be no wonder that market research analysts are so in demand in today's job market. And now you know exactly what skills to develop if you want to be one of them.

About the Author

Philip Piletic closely follows the impact of technology on education, and its evolution from traditional to modern methods that include e-learning, courses, gamification, and others. He has also helped the Sydney-based IT & Business school in developing their IT courses.

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New advances in technology are upending education, from the recent debut of new artificial intelligence (AI) chatbots like ChatGPT to the growing accessibility of virtual-reality tools that expand the boundaries of the classroom. For educators, at the heart of it all is the hope that every learner gets an equal chance to develop the skills they need to succeed. But that promise is not without its pitfalls.

“Technology is a game-changer for education – it offers the prospect of universal access to high-quality learning experiences, and it creates fundamentally new ways of teaching,” said Dan Schwartz, dean of Stanford Graduate School of Education (GSE), who is also a professor of educational technology at the GSE and faculty director of the Stanford Accelerator for Learning . “But there are a lot of ways we teach that aren’t great, and a big fear with AI in particular is that we just get more efficient at teaching badly. This is a moment to pay attention, to do things differently.”

For K-12 schools, this year also marks the end of the Elementary and Secondary School Emergency Relief (ESSER) funding program, which has provided pandemic recovery funds that many districts used to invest in educational software and systems. With these funds running out in September 2024, schools are trying to determine their best use of technology as they face the prospect of diminishing resources.

Here, Schwartz and other Stanford education scholars weigh in on some of the technology trends taking center stage in the classroom this year.

AI in the classroom

In 2023, the big story in technology and education was generative AI, following the introduction of ChatGPT and other chatbots that produce text seemingly written by a human in response to a question or prompt. Educators immediately worried that students would use the chatbot to cheat by trying to pass its writing off as their own. As schools move to adopt policies around students’ use of the tool, many are also beginning to explore potential opportunities – for example, to generate reading assignments or coach students during the writing process.

AI can also help automate tasks like grading and lesson planning, freeing teachers to do the human work that drew them into the profession in the first place, said Victor Lee, an associate professor at the GSE and faculty lead for the AI + Education initiative at the Stanford Accelerator for Learning. “I’m heartened to see some movement toward creating AI tools that make teachers’ lives better – not to replace them, but to give them the time to do the work that only teachers are able to do,” he said. “I hope to see more on that front.”

He also emphasized the need to teach students now to begin questioning and critiquing the development and use of AI. “AI is not going away,” said Lee, who is also director of CRAFT (Classroom-Ready Resources about AI for Teaching), which provides free resources to help teach AI literacy to high school students across subject areas. “We need to teach students how to understand and think critically about this technology.”

Immersive environments

The use of immersive technologies like augmented reality, virtual reality, and mixed reality is also expected to surge in the classroom, especially as new high-profile devices integrating these realities hit the marketplace in 2024.

The educational possibilities now go beyond putting on a headset and experiencing life in a distant location. With new technologies, students can create their own local interactive 360-degree scenarios, using just a cell phone or inexpensive camera and simple online tools.

“This is an area that’s really going to explode over the next couple of years,” said Kristen Pilner Blair, director of research for the Digital Learning initiative at the Stanford Accelerator for Learning, which runs a program exploring the use of virtual field trips to promote learning. “Students can learn about the effects of climate change, say, by virtually experiencing the impact on a particular environment. But they can also become creators, documenting and sharing immersive media that shows the effects where they live.”

Integrating AI into virtual simulations could also soon take the experience to another level, Schwartz said. “If your VR experience brings me to a redwood tree, you could have a window pop up that allows me to ask questions about the tree, and AI can deliver the answers.”

Gamification

Another trend expected to intensify this year is the gamification of learning activities, often featuring dynamic videos with interactive elements to engage and hold students’ attention.

“Gamification is a good motivator, because one key aspect is reward, which is very powerful,” said Schwartz. The downside? Rewards are specific to the activity at hand, which may not extend to learning more generally. “If I get rewarded for doing math in a space-age video game, it doesn’t mean I’m going to be motivated to do math anywhere else.”

Gamification sometimes tries to make “chocolate-covered broccoli,” Schwartz said, by adding art and rewards to make speeded response tasks involving single-answer, factual questions more fun. He hopes to see more creative play patterns that give students points for rethinking an approach or adapting their strategy, rather than only rewarding them for quickly producing a correct response.

Data-gathering and analysis

The growing use of technology in schools is producing massive amounts of data on students’ activities in the classroom and online. “We’re now able to capture moment-to-moment data, every keystroke a kid makes,” said Schwartz – data that can reveal areas of struggle and different learning opportunities, from solving a math problem to approaching a writing assignment.

But outside of research settings, he said, that type of granular data – now owned by tech companies – is more likely used to refine the design of the software than to provide teachers with actionable information.

The promise of personalized learning is being able to generate content aligned with students’ interests and skill levels, and making lessons more accessible for multilingual learners and students with disabilities. Realizing that promise requires that educators can make sense of the data that’s being collected, said Schwartz – and while advances in AI are making it easier to identify patterns and findings, the data also needs to be in a system and form educators can access and analyze for decision-making. Developing a usable infrastructure for that data, Schwartz said, is an important next step.

With the accumulation of student data comes privacy concerns: How is the data being collected? Are there regulations or guidelines around its use in decision-making? What steps are being taken to prevent unauthorized access? In 2023 K-12 schools experienced a rise in cyberattacks, underscoring the need to implement strong systems to safeguard student data.

Technology is “requiring people to check their assumptions about education,” said Schwartz, noting that AI in particular is very efficient at replicating biases and automating the way things have been done in the past, including poor models of instruction. “But it’s also opening up new possibilities for students producing material, and for being able to identify children who are not average so we can customize toward them. It’s an opportunity to think of entirely new ways of teaching – this is the path I hope to see.”

• Published May 15, 2024
• 20 Minute Read

What Is Leadership?

Artificial intelligence in strategy

Can machines automate strategy development? The short answer is no. However, there are numerous aspects of strategists’ work where AI and advanced analytics tools can already bring enormous value. Yuval Atsmon is a senior partner who leads the new McKinsey Center for Strategy Innovation, which studies ways new technologies can augment the timeless principles of strategy. In this episode of the Inside the Strategy Room podcast, he explains how artificial intelligence is already transforming strategy and what’s on the horizon. This is an edited transcript of the discussion. For more conversations on the strategy issues that matter, follow the series on your preferred podcast platform .

Joanna Pachner: What does artificial intelligence mean in the context of strategy?

Yuval Atsmon: When people talk about artificial intelligence, they include everything to do with analytics, automation, and data analysis. Marvin Minsky, the pioneer of artificial intelligence research in the 1960s, talked about AI as a “suitcase word”—a term into which you can stuff whatever you want—and that still seems to be the case. We are comfortable with that because we think companies should use all the capabilities of more traditional analysis while increasing automation in strategy that can free up management or analyst time and, gradually, introducing tools that can augment human thinking.

Joanna Pachner: AI has been embraced by many business functions, but strategy seems to be largely immune to its charms. Why do you think that is?

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Yuval Atsmon: You’re right about the limited adoption. Only 7 percent of respondents to our survey about the use of AI say they use it in strategy or even financial planning, whereas in areas like marketing, supply chain, and service operations, it’s 25 or 30 percent. One reason adoption is lagging is that strategy is one of the most integrative conceptual practices. When executives think about strategy automation, many are looking too far ahead—at AI capabilities that would decide, in place of the business leader, what the right strategy is. They are missing opportunities to use AI in the building blocks of strategy that could significantly improve outcomes.

I like to use the analogy to virtual assistants. Many of us use Alexa or Siri but very few people use these tools to do more than dictate a text message or shut off the lights. We don’t feel comfortable with the technology’s ability to understand the context in more sophisticated applications. AI in strategy is similar: it’s hard for AI to know everything an executive knows, but it can help executives with certain tasks.

When executives think about strategy automation, many are looking too far ahead—at AI deciding the right strategy. They are missing opportunities to use AI in the building blocks of strategy.

Joanna Pachner: What kind of tasks can AI help strategists execute today?

Yuval Atsmon: We talk about six stages of AI development. The earliest is simple analytics, which we refer to as descriptive intelligence. Companies use dashboards for competitive analysis or to study performance in different parts of the business that are automatically updated. Some have interactive capabilities for refinement and testing.

The second level is diagnostic intelligence, which is the ability to look backward at the business and understand root causes and drivers of performance. The level after that is predictive intelligence: being able to anticipate certain scenarios or options and the value of things in the future based on momentum from the past as well as signals picked in the market. Both diagnostics and prediction are areas that AI can greatly improve today. The tools can augment executives’ analysis and become areas where you develop capabilities. For example, on diagnostic intelligence, you can organize your portfolio into segments to understand granularly where performance is coming from and do it in a much more continuous way than analysts could. You can try 20 different ways in an hour versus deploying one hundred analysts to tackle the problem.

Predictive AI is both more difficult and more risky. Executives shouldn’t fully rely on predictive AI, but it provides another systematic viewpoint in the room. Because strategic decisions have significant consequences, a key consideration is to use AI transparently in the sense of understanding why it is making a certain prediction and what extrapolations it is making from which information. You can then assess if you trust the prediction or not. You can even use AI to track the evolution of the assumptions for that prediction.

Those are the levels available today. The next three levels will take time to develop. There are some early examples of AI advising actions for executives’ consideration that would be value-creating based on the analysis. From there, you go to delegating certain decision authority to AI, with constraints and supervision. Eventually, there is the point where fully autonomous AI analyzes and decides with no human interaction.

Because strategic decisions have significant consequences, you need to understand why AI is making a certain prediction and what extrapolations it’s making from which information.

Joanna Pachner: What kind of businesses or industries could gain the greatest benefits from embracing AI at its current level of sophistication?

Yuval Atsmon: Every business probably has some opportunity to use AI more than it does today. The first thing to look at is the availability of data. Do you have performance data that can be organized in a systematic way? Companies that have deep data on their portfolios down to business line, SKU, inventory, and raw ingredients have the biggest opportunities to use machines to gain granular insights that humans could not.

Companies whose strategies rely on a few big decisions with limited data would get less from AI. Likewise, those facing a lot of volatility and vulnerability to external events would benefit less than companies with controlled and systematic portfolios, although they could deploy AI to better predict those external events and identify what they can and cannot control.

Third, the velocity of decisions matters. Most companies develop strategies every three to five years, which then become annual budgets. If you think about strategy in that way, the role of AI is relatively limited other than potentially accelerating analyses that are inputs into the strategy. However, some companies regularly revisit big decisions they made based on assumptions about the world that may have since changed, affecting the projected ROI of initiatives. Such shifts would affect how you deploy talent and executive time, how you spend money and focus sales efforts, and AI can be valuable in guiding that. The value of AI is even bigger when you can make decisions close to the time of deploying resources, because AI can signal that your previous assumptions have changed from when you made your plan.

Joanna Pachner: Can you provide any examples of companies employing AI to address specific strategic challenges?

Yuval Atsmon: Some of the most innovative users of AI, not coincidentally, are AI- and digital-native companies. Some of these companies have seen massive benefits from AI and have increased its usage in other areas of the business. One mobility player adjusts its financial planning based on pricing patterns it observes in the market. Its business has relatively high flexibility to demand but less so to supply, so the company uses AI to continuously signal back when pricing dynamics are trending in a way that would affect profitability or where demand is rising. This allows the company to quickly react to create more capacity because its profitability is highly sensitive to keeping demand and supply in equilibrium.

Joanna Pachner: Given how quickly things change today, doesn’t AI seem to be more a tactical than a strategic tool, providing time-sensitive input on isolated elements of strategy?

Yuval Atsmon: It’s interesting that you make the distinction between strategic and tactical. Of course, every decision can be broken down into smaller ones, and where AI can be affordably used in strategy today is for building blocks of the strategy. It might feel tactical, but it can make a massive difference. One of the world’s leading investment firms, for example, has started to use AI to scan for certain patterns rather than scanning individual companies directly. AI looks for consumer mobile usage that suggests a company’s technology is catching on quickly, giving the firm an opportunity to invest in that company before others do. That created a significant strategic edge for them, even though the tool itself may be relatively tactical.

Joanna Pachner: McKinsey has written a lot about cognitive biases  and social dynamics that can skew decision making. Can AI help with these challenges?

Yuval Atsmon: When we talk to executives about using AI in strategy development, the first reaction we get is, “Those are really big decisions; what if AI gets them wrong?” The first answer is that humans also get them wrong—a lot. [Amos] Tversky, [Daniel] Kahneman, and others have proven that some of those errors are systemic, observable, and predictable. The first thing AI can do is spot situations likely to give rise to biases. For example, imagine that AI is listening in on a strategy session where the CEO proposes something and everyone says “Aye” without debate and discussion. AI could inform the room, “We might have a sunflower bias here,” which could trigger more conversation and remind the CEO that it’s in their own interest to encourage some devil’s advocacy.

We also often see confirmation bias, where people focus their analysis on proving the wisdom of what they already want to do, as opposed to looking for a fact-based reality. Just having AI perform a default analysis that doesn’t aim to satisfy the boss is useful, and the team can then try to understand why that is different than the management hypothesis, triggering a much richer debate.

In terms of social dynamics, agency problems can create conflicts of interest. Every business unit [BU] leader thinks that their BU should get the most resources and will deliver the most value, or at least they feel they should advocate for their business. AI provides a neutral way based on systematic data to manage those debates. It’s also useful for executives with decision authority, since we all know that short-term pressures and the need to make the quarterly and annual numbers lead people to make different decisions on the 31st of December than they do on January 1st or October 1st. Like the story of Ulysses and the sirens, you can use AI to remind you that you wanted something different three months earlier. The CEO still decides; AI can just provide that extra nudge.

Joanna Pachner: It’s like you have Spock next to you, who is dispassionate and purely analytical.

Yuval Atsmon: That is not a bad analogy—for Star Trek fans anyway.

Joanna Pachner: Do you have a favorite application of AI in strategy?

Yuval Atsmon: I have worked a lot on resource allocation, and one of the challenges, which we call the hockey stick phenomenon, is that executives are always overly optimistic about what will happen. They know that resource allocation will inevitably be defined by what you believe about the future, not necessarily by past performance. AI can provide an objective prediction of performance starting from a default momentum case: based on everything that happened in the past and some indicators about the future, what is the forecast of performance if we do nothing? This is before we say, “But I will hire these people and develop this new product and improve my marketing”— things that every executive thinks will help them overdeliver relative to the past. The neutral momentum case, which AI can calculate in a cold, Spock-like manner, can change the dynamics of the resource allocation discussion. It’s a form of predictive intelligence accessible today and while it’s not meant to be definitive, it provides a basis for better decisions.

Joanna Pachner: Do you see access to technology talent as one of the obstacles to the adoption of AI in strategy, especially at large companies?

Yuval Atsmon: I would make a distinction. If you mean machine-learning and data science talent or software engineers who build the digital tools, they are definitely not easy to get. However, companies can increasingly use platforms that provide access to AI tools and require less from individual companies. Also, this domain of strategy is exciting—it’s cutting-edge, so it’s probably easier to get technology talent for that than it might be for manufacturing work.

The bigger challenge, ironically, is finding strategists or people with business expertise to contribute to the effort. You will not solve strategy problems with AI without the involvement of people who understand the customer experience and what you are trying to achieve. Those who know best, like senior executives, don’t have time to be product managers for the AI team. An even bigger constraint is that, in some cases, you are asking people to get involved in an initiative that may make their jobs less important. There could be plenty of opportunities for incorpo­rating AI into existing jobs, but it’s something companies need to reflect on. The best approach may be to create a digital factory where a different team tests and builds AI applications, with oversight from senior stakeholders.

The big challenge is finding strategists to contribute to the AI effort. You are asking people to get involved in an initiative that may make their jobs less important.

Joanna Pachner: Do you think this worry about job security and the potential that AI will automate strategy is realistic?

Yuval Atsmon: The question of whether AI will replace human judgment and put humanity out of its job is a big one that I would leave for other experts.

The pertinent question is shorter-term automation. Because of its complexity, strategy would be one of the later domains to be affected by automation, but we are seeing it in many other domains. However, the trend for more than two hundred years has been that automation creates new jobs, although ones requiring different skills. That doesn’t take away the fear some people have of a machine exposing their mistakes or doing their job better than they do it.

Joanna Pachner: We recently published an article about strategic courage in an age of volatility  that talked about three types of edge business leaders need to develop. One of them is an edge in insights. Do you think AI has a role to play in furnishing a proprietary insight edge?

Yuval Atsmon: One of the challenges most strategists face is the overwhelming complexity of the world we operate in—the number of unknowns, the information overload. At one level, it may seem that AI will provide another layer of complexity. In reality, it can be a sharp knife that cuts through some of the clutter. The question to ask is, Can AI simplify my life by giving me sharper, more timely insights more easily?

Joanna Pachner: You have been working in strategy for a long time. What sparked your interest in exploring this intersection of strategy and new technology?

Yuval Atsmon: I have always been intrigued by things at the boundaries of what seems possible. Science fiction writer Arthur C. Clarke’s second law is that to discover the limits of the possible, you have to venture a little past them into the impossible, and I find that particularly alluring in this arena.

AI in strategy is in very nascent stages but could be very consequential for companies and for the profession. For a top executive, strategic decisions are the biggest way to influence the business, other than maybe building the top team, and it is amazing how little technology is leveraged in that process today. It’s conceivable that competitive advantage will increasingly rest in having executives who know how to apply AI well. In some domains, like investment, that is already happening, and the difference in returns can be staggering. I find helping companies be part of that evolution very exciting.

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Sokhnadiarra Ndiaye: Africana Studies

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Sokhnadiarra Ndiaye

Africana Studies Brooklyn, N.Y. & Diourbel, Senegal

What was your favorite class and why?  

My favorite class was actually held over Zoom my first semester at Cornell, called New Visions in African Cinema, with Professor Naminata Diabate. It was the first time I truly watched African films from across the continent that were made, directed and acted out by Africans. Whether we were watching a Senegalese, South African or Kenyan film, there was always something new to be learned, and it expanded my knowledge of other cultures beyond the West African region I come from. I loved watching as cultural subtleties were embedded in the scenes we watched, and I equally enjoyed the intimate group discussions. It was my introduction to broader African cinema, and I haven’t stopped since.

What Cornell memory do you treasure the most?         

I will never forget the feeling of sitting in my townhouse living room criss-crossed on the ground, surrounded by other Cornellian women as we talked about anything and everything, our laughter synchronizing with our paintbrush strokes. It happened in such an organized yet random manner. After noticing the trend of isolated Black women on campus, I recruited my housemate to begin “randomly” striking up conversations with these women. It didn’t take long to realize that my social experience at Cornell was not shared by everybody. So, we invited them over for a girls’ night. It warmed my heart as a group of women who were strangers to each other mere minutes before began laughing and shedding tears with each other, forming friendships that would last throughout and beyond their Cornell careers. It was at that moment that I found my calling as a gatherer.

What are the most valuable skills you gained from your Arts & Sciences education?  

The ability to think critically and engage in dialogue are the most valuable skills I have gained from my Arts & Sciences education. Whether I am going into business, nonprofits or even holiday dinner conversations, these skills will always remain relevant and integral to both my personal and professional success. Nearly everything I do begins or ends with conversations, and oftentimes, disagreements stem deeper than the topic at hand. In a world as divided as the one we live in today, much can be changed through dialogue. This critical thinking has allowed me to continuously reflect on my own interests and impact, as well as the stories that I tell others and myself. From selective pre-law societies to finance groups, I’ve certainly dipped my foot in a lot of waters here. Yet, it is my ability to adapt and thrive in any environment I am planted in that I believe will be crucial for the years to come.       

Who or what influenced your Cornell education the most?     

In high school, whenever I visited universities and asked the students what they loved most, they’d almost always say “the people.” It baffled me. What was it about “the people” that was so special? Was that just a coded way of saying, “there's nothing else to this place?” As my time at Cornell finishes, I finally understand. As much as I have enjoyed the classes, organizations and resources available to me as a Cornellian, at the root of my confidence and ability to create such a fulfilling four years was the intergenerational community of people who support me. It was the friend who affirmed my value when I doubted it; the mentor who challenged me with, “Why not you?”; the professor who reassured me that my voice matters; the parents who embraced my changes; and many others who empowered me to make my time at Cornell what I wish. To them, I cannot say thank you enough.

What are your plans for next year? 

I will be in Senegal conducting market research with the goal of launching a business in the coming months.

Every year, our faculty nominate graduating Arts & Sciences students to be featured as part of our Extraordinary Journeys series.  Read more about the Class of 202 4.

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Why writing by hand beats typing for thinking and learning

Jonathan Lambert

If you're like many digitally savvy Americans, it has likely been a while since you've spent much time writing by hand.

The laborious process of tracing out our thoughts, letter by letter, on the page is becoming a relic of the past in our screen-dominated world, where text messages and thumb-typed grocery lists have replaced handwritten letters and sticky notes. Electronic keyboards offer obvious efficiency benefits that have undoubtedly boosted our productivity — imagine having to write all your emails longhand.

To keep up, many schools are introducing computers as early as preschool, meaning some kids may learn the basics of typing before writing by hand.

But giving up this slower, more tactile way of expressing ourselves may come at a significant cost, according to a growing body of research that's uncovering the surprising cognitive benefits of taking pen to paper, or even stylus to iPad — for both children and adults.

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In kids, studies show that tracing out ABCs, as opposed to typing them, leads to better and longer-lasting recognition and understanding of letters. Writing by hand also improves memory and recall of words, laying down the foundations of literacy and learning. In adults, taking notes by hand during a lecture, instead of typing, can lead to better conceptual understanding of material.

"There's actually some very important things going on during the embodied experience of writing by hand," says Ramesh Balasubramaniam , a neuroscientist at the University of California, Merced. "It has important cognitive benefits."

While those benefits have long been recognized by some (for instance, many authors, including Jennifer Egan and Neil Gaiman , draft their stories by hand to stoke creativity), scientists have only recently started investigating why writing by hand has these effects.

A slew of recent brain imaging research suggests handwriting's power stems from the relative complexity of the process and how it forces different brain systems to work together to reproduce the shapes of letters in our heads onto the page.

Your brain on handwriting

Both handwriting and typing involve moving our hands and fingers to create words on a page. But handwriting, it turns out, requires a lot more fine-tuned coordination between the motor and visual systems. This seems to more deeply engage the brain in ways that support learning.

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"Handwriting is probably among the most complex motor skills that the brain is capable of," says Marieke Longcamp , a cognitive neuroscientist at Aix-Marseille Université.

Gripping a pen nimbly enough to write is a complicated task, as it requires your brain to continuously monitor the pressure that each finger exerts on the pen. Then, your motor system has to delicately modify that pressure to re-create each letter of the words in your head on the page.

"Your fingers have to each do something different to produce a recognizable letter," says Sophia Vinci-Booher , an educational neuroscientist at Vanderbilt University. Adding to the complexity, your visual system must continuously process that letter as it's formed. With each stroke, your brain compares the unfolding script with mental models of the letters and words, making adjustments to fingers in real time to create the letters' shapes, says Vinci-Booher.

That's not true for typing.

To type "tap" your fingers don't have to trace out the form of the letters — they just make three relatively simple and uniform movements. In comparison, it takes a lot more brainpower, as well as cross-talk between brain areas, to write than type.

Recent brain imaging studies bolster this idea. A study published in January found that when students write by hand, brain areas involved in motor and visual information processing " sync up " with areas crucial to memory formation, firing at frequencies associated with learning.

"We don't see that [synchronized activity] in typewriting at all," says Audrey van der Meer , a psychologist and study co-author at the Norwegian University of Science and Technology. She suggests that writing by hand is a neurobiologically richer process and that this richness may confer some cognitive benefits.

Other experts agree. "There seems to be something fundamental about engaging your body to produce these shapes," says Robert Wiley , a cognitive psychologist at the University of North Carolina, Greensboro. "It lets you make associations between your body and what you're seeing and hearing," he says, which might give the mind more footholds for accessing a given concept or idea.

Those extra footholds are especially important for learning in kids, but they may give adults a leg up too. Wiley and others worry that ditching handwriting for typing could have serious consequences for how we all learn and think.

What might be lost as handwriting wanes

The clearest consequence of screens and keyboards replacing pen and paper might be on kids' ability to learn the building blocks of literacy — letters.

"Letter recognition in early childhood is actually one of the best predictors of later reading and math attainment," says Vinci-Booher. Her work suggests the process of learning to write letters by hand is crucial for learning to read them.

"When kids write letters, they're just messy," she says. As kids practice writing "A," each iteration is different, and that variability helps solidify their conceptual understanding of the letter.

Research suggests kids learn to recognize letters better when seeing variable handwritten examples, compared with uniform typed examples.

This helps develop areas of the brain used during reading in older children and adults, Vinci-Booher found.

"This could be one of the ways that early experiences actually translate to long-term life outcomes," she says. "These visually demanding, fine motor actions bake in neural communication patterns that are really important for learning later on."

Ditching handwriting instruction could mean that those skills don't get developed as well, which could impair kids' ability to learn down the road.

"If young children are not receiving any handwriting training, which is very good brain stimulation, then their brains simply won't reach their full potential," says van der Meer. "It's scary to think of the potential consequences."

Many states are trying to avoid these risks by mandating cursive instruction. This year, California started requiring elementary school students to learn cursive , and similar bills are moving through state legislatures in several states, including Indiana, Kentucky, South Carolina and Wisconsin. (So far, evidence suggests that it's the writing by hand that matters, not whether it's print or cursive.)

Slowing down and processing information

For adults, one of the main benefits of writing by hand is that it simply forces us to slow down.

During a meeting or lecture, it's possible to type what you're hearing verbatim. But often, "you're not actually processing that information — you're just typing in the blind," says van der Meer. "If you take notes by hand, you can't write everything down," she says.

The relative slowness of the medium forces you to process the information, writing key words or phrases and using drawing or arrows to work through ideas, she says. "You make the information your own," she says, which helps it stick in the brain.

Such connections and integration are still possible when typing, but they need to be made more intentionally. And sometimes, efficiency wins out. "When you're writing a long essay, it's obviously much more practical to use a keyboard," says van der Meer.

Still, given our long history of using our hands to mark meaning in the world, some scientists worry about the more diffuse consequences of offloading our thinking to computers.

"We're foisting a lot of our knowledge, extending our cognition, to other devices, so it's only natural that we've started using these other agents to do our writing for us," says Balasubramaniam.

It's possible that this might free up our minds to do other kinds of hard thinking, he says. Or we might be sacrificing a fundamental process that's crucial for the kinds of immersive cognitive experiences that enable us to learn and think at our full potential.

Balasubramaniam stresses, however, that we don't have to ditch digital tools to harness the power of handwriting. So far, research suggests that scribbling with a stylus on a screen activates the same brain pathways as etching ink on paper. It's the movement that counts, he says, not its final form.

Jonathan Lambert is a Washington, D.C.-based freelance journalist who covers science, health and policy.

• handwriting

Collaborations in Africa foster leadership, research, entrepreneurship

While the opening of the Indiana University Ghana Gateway in Africa will usher in a new era of collaboration between the continent and IU, the university already has a long history of engagement in Africa.

IU Global — the Office of the Vice President for International Affairs — has been active in many African countries over the past four decades. A collaboration with Khanya College in South Africa from 1992 to 1995 was one of the earliest partnerships in the continent. Since then, partnerships have been established with several African institutions of higher learning.

“An IU gateway office in Africa will play an important role in nurturing and maintaining connections with our current partners and expanding collaborations across Africa,” said Teshome Alemneh , IU associate vice president for international research and development. “It will be a venue for connecting university faculty, researchers and administrators, NGOs, government agencies, and many other stakeholders.”

Of particular focus at IU has been collaborations focused on institutional development, which include activities such as improving academic programs and curricula, encouraging faculty development, and conducting joint research. In recent years, for example, the IU Office of International Development has implemented collaborations to foster the next generation of African entrepreneurs, strengthen research capacity in Africa and support young leaders from the continent.

Developing civic leadership skills in young leaders

IU has been a supporter of the Mandela Washington Fellowship for Young African Leaders , the flagship program of the U.S. government’s Young African Leaders Initiative.

Through this initiative, IU has hosted a total of 150 young leaders from more than 30 African nations, enhancing their capacity in civic engagement and leadership and connecting them to Indiana. While at IU, fellows made presentations, discussed their perspectives and passions during courses and networking events, and shared their life experiences during social activities, such as meals with IU faculty and staff families.

“The presence of the Mandela Washington Fellows on campus made a lasting impact on faculty, staff and students, increasing IU’s visibility in more than 20 sub-Saharan African countries,” Alemneh said. “The program furthers IU’s global engagement strategy and increased interest in Africa. It has promoted people-to-people relationships and enhanced mutual understanding.”

IU’s engagement in the Mandela Washington Fellows program took place from 2016 to 2022. The program’s lasting legacy at the university is evident in recent collaborations. Students in the IU School of Public Health-Bloomington, for instance, worked with a Kenyan health clinic through the Hijabi Mentorship Program — an organization focused on empowering and educating women and girls and founded by Nima N’zani Kassim, a Mandela Fellow who visited IU in 2019.

Business entrepreneurship and leadership

In collaboration with Ivy Tech Community College and The Mill, IU led a two-year project in Addis Ababa, Ethiopia. Funded by the U.S. Embassy, the Partnership in Business Entrepreneurship and Leadership Transformation , or PiBELT, increases entrepreneurial capacity in Ethiopia.

“This effort was an opportunity to leverage expertise to enable two universities in Ethiopia — Debre Markos and Bahir Dar — to develop business and entrepreneurship incubation centers, and to instill these skills in young people in Africa,” Alemneh said. “The young people in the community and students at participating Ethiopian universities enhanced their skills on how to develop their business ideas into startups, reducing unemployment, creating jobs and improving economic activities.”

Under the project, IU and its partners developed pre-acceleration and accelerator training modules in topics such as customer development; customer work; “insights/point-of-view/ideation” prototyping; revenue; marketing and sales; team building; instant business plan and pitch deck creation; product development; business development; marketing and sales; and investor pitching.

After completing the training and a pitch competition, 22 business ideas were awarded seed money toward starting their business and prototypes. Funded projects included wheelchair production, animal feed, plastic recycling, seed sowing machinery, mead production, waste disposal and filtration, an e-learning platform, and an ice cream shop.

In addition, the Office of International Development welcomed the managers of these entrepreneurship centers — as well as other administrators from Bahir Dar and Debre Markos — to Bloomington to learn from experts at The Mill, the Bloomington Economic Development Corp., the IU Innovation and Commercialization Office and the Ivy Tech Gayle & Bill Cook Center for Entrepreneurship.

The PiBELT project, which concluded in 2022, has recently inspired a spin-off project. Led by the business incubation centers at Debre Markos and Bahir Dar and supported by the U.S. Embassy in Ethiopia, the spin-off supports women’s development as entrepreneurs in the community, Alemneh said.

Strengthening research capacity

Lastly, through its Office of International Development, IU is a core partner on a project titled Long-Term Assistance and Services for Research: Partners for University-Led Solutions Engine. Known as LASER PULSE, the project focuses on strengthening the research capacity of higher education institutions across the globe, including sub-Saharan Africa.

Funded by $70 million from USAID, LASER PULSE is a consortium led by Purdue University that also includes Makerere University in Uganda, University of Notre Dame and Catholic Relief Services.

“The major focus of LASER PULSE is working with institutions to help them design and implement research projects in collaboration with practitioners so the results of their work can create real impact,” Alemneh said. “It’s about bringing partners — like NGOs, government agencies or community organizations — together in the earliest phases of the research design process to ensure that the problem identification and the final research results will be translated into practice.”

Under this project, IU led communications activities in support of research translation partnerships across the globe. IU also led international research development workshops in Uganda and Ethiopia.

Alemneh said that the wide-ranging projects supported through the IU Office of International Development have the potential to transform higher education institutions and improve people’s lives.

“Whether it’s new skills gained by a young entrepreneur in Ethiopia or new knowledge gained by a Mandela Washington Fellow, those experiences are life changing for them individually, and to their communities,” he said. “And in the case of the experience sharing and capacity enhancement programs in translational research, that’s re-envisioning the whole role of university researchers to make a difference on the ground.

“Ultimately, IU has the expertise and experience to lead and make a difference in these countries, and the opening of the Ghana Gateway will strengthen our endeavors. That’s what drives us.”

Kevin Fryling

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