Real-Time Measurement – Best Paper Award at SAMRA 2013 Conference

During the South African Market Research Association (SAMRA) Conference, which took place on 16 – 17 May, in Johannesburg, thought leaders in the industry presented their latest views on research and its applications in business, marketing, and social decision-making.

The topic of Real-Time Measurement, which is seen as one of the most thought-provoking subjects among researchers at the moment, was discussed by Andries Noeth, Chief Marketing Officer at Consulta Research.

Noeth’s paper won Best Overall Research Paper at the conference and focused largely on a misperception in the business community that real-time research in itself provides business insights. “Truly understanding how customers view your business, brand or products requires a combination of research methodologies that are aligned with the company’s strategic objectives” says Noeth.

Real time insight a misnomer

Real-time feedback happens instantly and provides companies with a way of keeping their “finger on the pulse” of what customers think. While real-time measurement allows companies to collect megabytes of data with the push of a button, it also comes with a risk. Companies can very quickly become DRIP – Data Rich and Information Poor. Most of the data collected in real time is transactional and operational in nature, and seldomly provides the organisation with strategic insights. Combining this with traditional research methodologies that are more detailed in nature is suggested as the most effective way to gain strategic insights.

Checking how healthy your organisation is

Noeth uses an analogy where he compares the two research methodologies to getting your health checked. Traditional research methodologies are compared to visting your medical doctor for an annual full medical check-up, where everything is checked in detail, after which you can develop a detailed action plan of lifestyle changes that should be made. Real-time measurement, on the other hand, is more like checking your weight and blood pressure every day to see if you are still on track with your health plan. “Thinking that real-time operational measures on a daily basis can provide strategic insights is like foolishly comparing the daily measurement of your blood pressure as equal to a full medical check-up done once a year. The cumulative effect of a daily measurement for 365 days a year is not equal to an in-depth measurement that happens once or twice a year.”

The measurement trilogy

Delegates from the market research community who attended SAMRA were fascinated by how Noeth explained the different levels on which measurement should take place in organisations, and that real-time methodologies only constitute one aspect of the measurement trilogy.

“Essentially, you would need to divide customer experience measurement into three main areas: International and national benchmarking, Proprietary in-depth customer experience measurement, and Operational transactional feedback,” says Noeth.

This type of measurement integration allows companies to understand customer experience and products on three levels – Firstly by understanding how they are doing against competitors, secondly by developing and informing strategically driven action plans, and thirdly by tracking changes and improvements on an operational level.

“The point is that metrics used in the organisation should be strategically aligned to specific research and organisational objectives. Using any real-time measurement in isolation is short-sighted and could be a very dangerous strategy since it can cause knee-jerk reactions that are not aligned with the overall strategy of the company” explains Noeth.

Noeth concluded his presentation by pointing out that there are numerous new channels that allow customers to share their views and experiences with companies: “Customers expect that their interaction with companies, products, and brands will have an influence on how the company treats them. Customers want organisations to show that they understand their needs and value their opinions, and giving consumers exactly what they want will become the expectation rather than the exception,” concludes Noeth.

Companies should therefore have metrics in place that allow them to “enter the minds of their clients”. Being customer centric will become the ultimate differentiator.

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Author: Adrienne Brookbanks from Consulta Research. Originally distributed by MyPR.co.za.

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