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It’s no secret that data is an incredibly valuable resource for businesses, however, using the data to make more accurate decisions and improving ROI isn’t easy. Using information correctly makes it possible to predict the future, improve your revenue, and even give you the chance to avoid wasting money on ideas that might not work out based on prior results. Hence, the reason we continue to struggle with our data and improve our understanding of how to best analyze our data so that data drives marketing decisions.
How to gather and use data
Market research involves collecting primary data to directly address questions facing your business. Unfortunately, market research is fraught with problems and, if you don’t know what you’re doing, market research can easily lead you astray. The classic example of this comes from Coke, which changed its entire formula based on the results of a flawed market research effort. Because they asked the wrong question, assuming that consumers bought cola based on one criterion when, in fact, another had a stronger impact on purchase intentions, Coke was embraced and, potentially, suffered opportunity costs as a result.
Here are just a few aspects that might warrant the expense and time needed to do market research.
- Segmentation: A segment is a group of people who share common traits that are meaningful for your