When making strategic decisions, it is very easy to go with our instincts or intuitions. The “we did this for a similar product previously and it was successful” or “that competitor does this, so we should as well” could work.
However, in order to make educated decisions, some form of relevant insights is essential. That being said, I do agree with the notion that business instincts can be developed over time with experience. With this experience, informed choices can be made with very little effort and almost become second nature. However, it is essential to not become complacent, but instead continuously search for additional sources of knowledge in order to strengthen these decisions.
In a recent example, one of our clients thought their only target was parents or parents-to-be. After running the study with Trybe they gained a greater insights into an additional target market: grandparents. The awareness of a new segment assisted in forming another marketing strategy to approach the grandparents as new customers, bringing a newly sourced target market.
The outcome of making misinformed decisions has serious consequences for a company in the form of time and money (which one could argue are one in the same). Releasing a product that doesn’t necessarily fill or create a need can incur astronomical sunk costs. Your company could even have a great product but be sitting with incorrect information on who your target is and how you could reach them. Using the wrong marketing channels could also be detrimental for your return on investment. If your target doesn’t watch TV as much, then spending millions of dollars on television ads is not helpful.
I get the opportunity to work with brands on a daily basis, and have seen at first hand the benefits of having relevant and accurate data as an essential additional information source in order to make data-driven strategic decisions.
In short, business instincts and intuition are great, but with data and insights, you can also discover what you don’t know. Enter new markets, gain an additional target market for your product, and so much more.
As written by Charlotte Vorkinn Birkelund
Community Manager, North America & Northern Europe