Don't Boil the Ocean

By Ted Kouri

Knowledge is power and market research can be a source of competitive advantage for many companies.  However, when it comes to research, companies need to work smarter, not harder.  There are mountains of data available and the sheer volume is overwhelming for most companies.  Here’s the trick – ignore most of it.

For small and medium sized businesses, market research should be managerial, not scientific, in nature.  Gather enough facts to test an assumption, but no more.  In a business situation, anything more is a waste of time and effort and both are precious commodities for your business.

"Don't boil the ocean" means don't try to analyze everything.  You need to be selective; figure out what your priorities are and identify the most efficient way to meet them. Know when you have gathered enough information and then stop.  Otherwise, the time spent will not justify the return, much like trying to boil the ocean to get a handful of salt.

Specifically, aim to integrate research activities into your daily operations rather than undertaking one major research project every year.  For example, monthly focus groups are easy to organize and can be effective sources of practical, action-oriented information.  Alternatively, train your employees to ask two or three research questions every time they speak with a customer.  Finally, form a small advisory group to act as a sounding board on new product ideas, target markets or marketing campaigns.

A managerial, ongoing approach to research can yield valuable returns.  One should not assume that because they have been in business for 30 years that they know their customers.  Things change and so do customer needs.  Learn to understand what makes your customers tick without having to wade through an ocean of information.

Incite Solutions Inc. works with its clients to create ongoing research activities to assist in making practical marketing decisions.  To learn more and to discuss how market research can drive your business, please contact us.

* (Article has been adapted from Ethan Raisel’s The McKinsey Way, 1999)