6 Common Data Pitfalls That Sabotage Your Customer Insights

I’ve noticed an increased interest in analyzing customer data.

For a long time, I saw it on a decline. Probably due to the Big Data era that promised better results from more data. But it just delivered confusion.

The renewed interest makes me happy.

However, I still see the same problem that plagued the Big Data era: an unclear path for moving from data to insights to strategy.

After 20 years of working with clients on branding and marketing, I’ve noticed common pitfalls in how companies collect customer insights.

Here are six ways to avoid some of the most common ones.

1. Have A Framework

Before conducting any research, you should have a framework for organizing and understanding how your customers see your business and industry.

And you should only collect data that helps you build out that framework.

Building an effective framework starts with understanding what it is and what it isn’t:

• It Isn’t a predetermined view of the customers that you try to prove.

• It Is a way of creating parameters that shape how you collect and understand the data.

• It Is a lens through which you interpret the data you collect.

2. Collect Data With A Purpose

Collecting data without a purpose is the #1 mistake I see companies make.

Companies collect data with the unspoken assumption that just by collecting it, an answer will appear.

The most obvious place this creeps in is in tracking studies: tracking year-over-year changes in metrics.

Companies track metrics. They look at them. And they acknowledge them.

But they don’t do anything with them to change their strategies.

If I could drive one point home in this blog, it would be this: Every question you ask should tie to a potential strategy or tactic.

If it doesn’t tie to either of those, you won’t do anything with it. You’ll waste money. And you’ll waste time.

Research is only as good as the questions you ask.

If you don’t ask the right questions tied to informing specific outcomes, you waste time and money.

3. Make the Right Comparison

Your business doesn’t exist in isolation.

It exists relative to your category and the macro environment.

However, when companies look at metrics, they often don’t look at them in the proper context.

For example, a 10% increase in year-over-year revenue could look fantastic. But if competitors are gaining at 12% year-over-year, it paints a different picture: you’re losing market share.

So, when you’re looking at data, make sure you’re comparing it to an appropriate benchmark to form the right conclusion.

4. Make Sure Your Focus Groups Are Focused

This mostly comes down to a recruitment issue.

Often, a person in a focus group doesn’t fit the mindset or even the demographics the group is supposed to represent.

This is always a problem.

But it becomes a bigger problem when the outlier has the most dominant personality in the group.

You can avoid this by having clear communication between your company and the recruiting facility and multiple screenings of potential interviewees.

5. Embrace The Power of One-On-One

I like digging into marketing journals to find innovative ideas other companies aren’t using and to gain historical perspectives on marketing.

One of my favorite marketing articles was published early in 1952 in the Harvard Business Review: “Qualitative Market Research” by Allan R. Wilson. It is the first article published by the Harvard Business Review on qualitative research.

In it, Wilson explores the potential for the new field of qualitative research.

He hints at a critical idea lost in much of the qualitative research that has followed the article. It could be rephrased as: if you want to learn about someone, would you interview their three best friends or a hundred people who met them just once or twice?

Find the customers who know your brand the best. Interview them one-on-one.

You’ll be surprised at the clarity and value of their insights.

They often know more about your brand than you do.

6. Sell In Ahead of Time

Insights are only useful if people buy into it.

I’ve seen companies produce excellent research only to see it wasted because some people don’t view it as essential or immediately relevant.

Before conducting any research, consider what departments the research could affect. Get their input. And find out what is important to them.

Having people invested before you conduct the research makes it easier to get them to buy in and take action when you deliver the research findings.

P.S. Feeling stuck or overwhelmed with your customer insights? Schedule a free 15-minute call to discuss how I can help you refine your insights and put you back in control.