There is such a thing as “paralysis by analysis”.
The key is starting with the objective and by this I don’t mean “what do you want to know” I mean what is the purpose of the research.
Are you developing an advertising plan and want to see research that will help you know which channels to use, or expanding inventory and want to know what new products should you add to your shelves, or perhaps expanding your restaurant chain and want to know where to open a new location…
Before diving into getting data, ask yourself what questions you need answered. Let’s take the example of where to advertise for a new restaurant. Here are the questions that I would ask.
- Who are my target customers? Hint, NOT EVERYONE! People who eat out the most, have disposable income and have certain personal and professional lifestyles that result in the need and desire to eat out more frequently. Note, segment your target customers.. you’ll see why in # 3
- What is the best way to reach the biggest number of potential customers? WRONG QUESTION! The question here should be “what advertising channels provide the greatest potential return for my advertising investment”. Don’t think volume, think effectiveness. It is better to run 10 targeted ads to smaller groups of consumers with a higher rate of response then pay $1,000 for a TV ad where maybe .05% of the viewers are potential customers.
- What do I need to say to them to get them to come to my restaurant? RIGHT QUESTION! Messaging, Messaging, Messaging. Don’t think cool and stupid, you aren’t Budweiser and can’t afford meaningless commercials. Think about what they are looking for such as “happy hours, professional lunch specials, rewards programs, healthy menus…” Knowing what drives people to make a purchasing decision is the key. This is why segmenting customers is so important. The more personal the message feels the greater the chance of a response.
Data is meant to help make decisions, but if you ask the wrong questions you will make the wrong decisions.
