In the ever-increasing, obsessive world of all things AI (artificial intelligence), it seems like qualitative research is increasingly being relegated to the research back bench. More than ever, the mantra “Data is the new oil,” takes on added significance for companies navigating in their competitive set.
Relevant research is essential to anticipating trends, so companies can be tactically proactive rather than reactive in deploying their resources. Some firms make the mistake of assuming “data” in this context only means “numbers.”
How quantitative and qualitative research differ
There is a distinction between quantitative research, which involves collecting and analyzing numerical data, and qualitative research, which uses open-ended questions and interviews to gain deeper insights into a particular product or service. Technology now allows companies to capture purchasing data by tracking credit card purchases and using grocery bar codes to perform sophisticated modeling. Quantitative research typically employs a survey approach to gather data. Example: the oft-used Net Promoter Score (NPS) question that asks a customer to indicate how likely they are to recommend the firm’s products or services to someone.
Since most organizations have finite research budgets, the issue is how much to allocate in resources to each respective research approach. Quantitative research can provide a broader scope and size of survey sample and lends itself to correlations among questions to develop various hypotheses. However, among the many difficulties in survey research are avoiding “survey bias” in the questions and harvesting a representative sample. If an “incentive” is used to motivate participation, it also can create a bias by having disinterested people participate to receive the reward.
Qualitative research’s strength is that it provides context to quantitative research findings. It also requires identifying a well-rounded interviewee pool that will take the time to share their thoughts. Again, if an incentive is used to induce participation, minimizing bias is always imperative. Still, qualitative research can and should serve as the filter to avoid misinterpreting quantitative research results. Qualitative research is especially helpful in guiding follow-on quantitative research to ensure the right questions are being explored. Together they operate like two scissor blades. In tandem, they refine the results and can help companies avoid consumer resistance to a new product launch or modification of an existing product.
Coke's bungled research
A classic example is when “New Coke” was introduced in 1985 after extensive taste testing that indicated a preference for the new flavor. At first the introduction went well but then there was a backlash — initially in the South — that gained momentum nationwide against changing the iconic Coca-Cola brand. Essentially the issue that haunted Coca-Cola was that consumers were more upset about losing the original Coke formula than they cared about the taste of the new one. This was especially apropos since Coke’s tagline was “The Real Thing.” Had qualitative research focused on consumers’ emotional connection to the existing brand, it might have spared the resulting brand upheaval and eventual retreat to the original “Coke.” The quantitative testing could then have measured not only the taste — one important attribute — but also the emotional connection, which turned out to be even more important.
Ranking research
Most importantly, all research cannot be viewed equally. It is of paramount importance to segment the data by the audience that matters — those who are likely to consume your company’s product or service. Yes, it may be interesting to know how your organization compares with a particular company, but what is relevant is how you compare with firms competing in your niche.
Segmentation allows you to laser in and focus on the right data. Then applying what you tout as your differentiation and value proposition — price, service, proximity and/or other factors — decide how consumers evaluate you on those criteria relative to your competitors.
Using both quantitative and qualitative research thoughtfully can accomplish that goal and avoid miscues along the way. At the end of the day, it’s no good for your business to have the right answer to the wrong question.
