Faster, Cheaper and More Honest

More and more people are turning to their data for research and it makes sense to look first at the information already available at your fingertips. A company's data holds the key to vast understndings of its customers and market, which statistical tolls and analysis can unlock.

As a form of market research, data analysis can be less arduous while still revealing key learnings to guide business and marketing decisions. It also sidesteps many of the shortcomings of traditional market research.

For a start, your data deals in the facts - it doesn't lie if analysed properly. Your data will tell you how people actually behave or react, as opposed to what they tell you they would do. What people say can be unreliable! 

Another benefit is that you often have more data available to you than those who would respond to your survey, so you are able to evaluate a more representative sample across your base and avoid the problem of only those with very strong opinions responding.

Then there is always the question of budget; considering both the time and resources committed to traditional research methods, data analysis is often far more cost effective to execute.

SkyCity Cinemas wanted to increase profitable visitation by cinema goers. Anecdotal evidence from staff was that cinema ticket prices were too high and were acting as a barrier to people going to the cinema.  SkyCity Cinemas wanted to ascertain people's perceptions about ticket prices and understand what price thresholds would increase visits.

Raw ticket sales data was used to analyse how various promotions had affected cinema visits, ie: how selling tickets at different price points had affected ticket sales. SkyCity Cinemas was clearly able to gauge its customers' actual behaviour towards price changes and calculate how many tickets they would sell at various price points.

The use of historical sales information is enabling SkyCity Cinemas to make informed decisions about its pricing strategy, based on market understanding and facts about people's behaviour based on different ticket prices.

So, the moral of the story... before you prep that widespread and timely survey, have a look at the data you already hold and what understandings and insights you can gain. The answers may already be in your hands.