04 May Analytical Research: Are You Ready?
Market research is a knowledge that cannot be separated from Marketing itself, experts often used market research data for innovation and product development, to increase price of a certain product, to measure an effectiveness of a promotion, and also other strategic decision that can increase company profitability or cost efficiency. Various kind of method was developed by market research industry, whether it’s on qualitative or quantitative field. Both of those methods were categorized as research method with a primary data result which is a data result that corresponding with the research objectives. Along with the rapid change of market landscape, research with primary data method needs to be completed by secondary data, for example data that collected from the industry and also data from internal. It cannot be denied that many marketers more focused on primary data from a research, and less considered a large internal company data of all marketing activity that have been done.
Now the question is: how marketers can increase the function of their internal data and combined it with primary data from a research, or even how marketers can maximize their internal data, evaluate those data, do action based on data evaluation and analysis, and do simulation also estimation about result from the data.
Analytical Research is really important for a company before made any decision making. Not only for marketers, it also can be done in every department if there are plenty of internal data that has been optimize with sharp and accurate analysis. On doing Analytical Research, there are few things that needs to be considered by a company:
Analytical Research Architecture
Analytical Research Architecture was closely related with human resources (capability) and structure of analytical research inside a company. On several companies that has developed analytical research; they give Data science analytics or strategic planning division title for analytical research team. Whatever the title is, the most important thing that needs to be looked at is about structure and capacity of analytical research team itself. It needs to be holistic, which is integrated with all division and capable of looking correlation from every data that needs to be analyzed.
Completeness of the Data
One of the most important things on doing analytical research is data completeness; if the data is complete the result will be more accurate. But unfortunately this condition is still become a barrier for many companies on doing analytical research. Especially for Indonesian company because the data is not well documented and not complete.
Software and Application
Software package is only a tool to help you solve business problems (TS Lim – Market Research Expert). That statement means software and application is needed when doing the analytical research, but no matter how sophisticated the application it is only a ‘tool’.
Type and Stage of Analytical Research
Company can take advantage of doing analytical research start from the basic level (doing measurement and evaluation of activity) up to strategic level (estimation and forecasting). Various analysis whether it is on marketing mix, sales, pricing and promotion, customer analytics, and digital media analytics can be optimized by using analytical research, where the output from can become a business insight for the company.
Analytical Research on Baking, Insurance, and Financial Institution
Banking, insurance, and financial institution are typical of business that needs to implement analytical research on their business process. These three sectors are closely related with customer database, segmentation, profile, and behavior pattern of customer and those things are needs to be understand by whomever that runs business on the financial sector. Things such as how to do customer acquisition, maintain the customer, and how to make customer become more loyal, are part of the analysis that is important when offering product and service to the customer.
When we talk about risk management side on banking industry, based on Loan Growth data and NPL (non-performing loan) with using analytical research, banking can predict and balancing the quality of a loan and also the growth of loan itself. For example, one of the micro segments bank in Indonesia on doing an analytical research, a logarithmic curve of loan growth rate based on its function and number of customer can be founded. It will become more interesting if that curve can be related with the percentage of NPL.
Primary Data VS Secondary Data
It has become an option for a company whether to stay focused with its primary data that came from research, or trying to combined it with internal data by using sharp and holistic analysis. So, is your company ready to do the Analytical Research?