Quality data is at the core of any successful market research project.
As researchers, we know the best ways to collect this data, and how each method of collection can provide different results.
In this post, we'll cover the two key data collection methods, their pros and cons, and their roles in providing actionable results for clients.
What Is Data Collection in Market Research?
Data collection in market research is the process of gathering information that allows organizations to gain a better understanding of a target market, customers, and/or competitors.
Most modern businesses conduct research and collect data in one form or another. The end goal of data collection is often to understand the “who," “what”, “when," “where," and “why” regarding customers and the market many businesses operate in.
Data gathered through research is ultimately used by organizations for strategic decision-making and can provide direction for marketing and communication strategies, new product development, and business operations in general.
The Main Types of Data Collected
There are two main types of data that can be collected in market research: primary and secondary. Below, we'll discuss each of these methods in-depth.
Primary Data
There are two main forms of data collection in market research. The most common type is primary data collection, which involves gathering data directly from key audiences (such as customers, a target audience of consumers, or industry experts).
This type of data is gathered either through quantitative methods (such as online or phone surveys) or qualitative methods (such as in-depth interviews or focus groups).
Gathering original data through primary research can be incredibly valuable.
Some advantages of primary data collection include:
Relevant Insights: Primary data collection allows an organization to establish its own research objectives and questions. By focusing the data collection on specific goals, the end result is relevant and actionable.
Current Insights: Since primary data collection is commissioned for specific objectives and needs, the data being captured is current (unlike secondary data collection, which can date back years depending on the source). With a constantly changing marketplace and competitive landscape, having these current and up-to-date insights is invaluable.
Competitive Advantage: Conducting primary research allows an organization to control who has access to the results, with the results most commonly being held internally. By conducting your own research, you can gain a competitive advantage, utilizing insights competitors don’t have access to.
Reduced Error/Bias: With primary data collection, a researcher has complete control of and visibility to the entire research process. This allows the researcher to reduce the risk of error and minimize potential bias.
Secondary Data Collection
In market research, secondary data isn’t as commonly utilized, but it certainly has its merits. Secondary data collection involves utilizing existing data sources such as industry reports, publications, or databases.
Below are some of the key advantages of secondary data:
Quick Insights: By utilizing existing data sources, an organization can often have quick answers to internal questions.
Cost-Effective: Secondary data is also much more cost-effective since an organization doesn’t need to conduct the research themselves. In fact, sometimes the secondary data is even freely available.
Benchmarking: Secondary data can often provide valuable context for primary research results. For example, if an organization conducts a Net Promoter study with customers, they can often reference secondary data sources to find relevant net promoter score (NPS) benchmarks for their industry. This lets organizations know if their score is good or bad relative to other businesses.
Large Databases: Secondary data collection often brings large datasets into play that an organization wouldn’t normally have the resources to gather themselves. Large databases can be useful for diving into specific subsets of individuals as well as identifying broad trends.
Additional Data Sources: Secondary data can also be valuable by allowing organizations to add a wealth of insights to existing research reports. After conducting primary research, researchers often utilize secondary data to supplement and expand upon some of their own findings.
Why Data Collection Matters So Much
Data collection is ultimately the foundation of any research project. It provides researchers with the raw information they need to answer research questions, test hypotheses, and draw meaningful conclusions.
Without reliable data, companies make decisions that can lead to costly mistakes and missed opportunities.
In market research, data ultimately drives growth for businesses. With this in mind, it’s important that the data collection process is the key priority of a research study and the process is executed with thorough consideration and integrity. As we say at Drive Research, better data, better decisions, better strategy.
Methods We Use to Collect Data
Various methods are used in market research to collect data. Choosing the right method depends on your objectives and in some cases, what approach is most feasible.
Here are some of the more common approaches we use regularly when working with clients:
Surveys: Most commonly conducted online (but also done over the phone or in-person), surveys are a way to gather quantitative data from a large sample of respondents. Surveys are often used for gathering insights on consumer decision-making, measuring customer satisfaction, and identifying trends in the market.
Focus Groups: This method involves gathering a small group of individuals to participate in a discussion about a specific topic. Conducting focus groups provides valuable qualitative insights into consumer attitudes, preferences, and motivations.
In-Depth Interviews: These one-on-one conversations allow researchers to dive deep into consumer thoughts and experiences. Long-form conversations allow researchers to explore complex issues and gain a deep understanding about a specific topic.
Observational Research: Researchers observing consumer behaviors in a natural setting (at a store, for example) can provide valuable insights into how consumers interact with products and services, and ultimately what barriers might exist to making a purchase.
Marketing Analytics: By utilizing existing data from marketing channels, social media platforms, and email campaigns, organizations can learn how to deliver effective and thoughtful messages to their target audience. These analytics allow organizations to optimize campaigns and quickly pivot in their approaches, as needed.
Data Cleaning & Quality
Knowing that data collection is the cornerstone of a successful research project, it’s important to prioritize data cleaning and quality throughout the process.
If the data captured is inaccurate, incomplete, or fraudulent, the insights will be unreliable. Poor data will lead businesses into making poor decisions.
Each methodology has a unique process associated with it when it comes to cleaning and reviewing data. However, some stand practices for ensuring quality data include...
Engaging Research Participants
Research participants should be engaged during the data collection process.
Exercises should be interactive, fun, and conducted with purpose to avoid respondent fatigue. It’s also important to ensure your research participants are who they say they are (and align with your target audience) prior to being invited to a study.
This process can often be handled by reviewing profiling information and/or establishing a rigorous qualifying process.
Establish Quality Control Measures
In any research project, it’s vital to review the data, looking for errors or inconsistencies.
Furthermore, research partners should have a defined process when it comes to ensuring data quality (i.e., cleaning procedures, quality checklists, and so on).
Utilize New Technologies
Modern tools can also be used to help optimize the data cleaning and validation process. Tools can be used to help identify fraudulent respondents proactively and also used to review data for common issues (such as survey straightlining, speeding through surveys, or AI-generated responses).
Contact Our Full-Service Market Research Company
When conducting research, it’s important that you feel confident about the data being collected for a study. Organizations invest significantly into research, and then invest even more when taking action on the research results.
Our team of experts at Drive Research will partner with your team to capture quality data and help ensure you receive the highest quality results. Reach out through any of the four ways below to learn more about our market research services.
- Message us on our website
- Email us at [email protected]
- Call us at 888-725-DATA
- Text us at 315-303-2040
Chris Coville
As the Director of Research of Drive Research, Chris has 10 years of experience in the market research field and has completed projects with organizations across the globe. He was also named a 2017 40 Under 40 Award winner.
Learn more about Chris, here.
