Why are retailers turning to passive data for consumer insights?
Through a special arrangement, presented here for discussion is a summary of a current article from MarketingCharts, a Watershed Publishing publication providing up-to-the-minute data and research to marketers.
Custom surveys are considered the most important data source for the creation of insights today, but fast forward two years and they will be rivaled by passively collected consumer data, according to GfK’s "Future of Insights" report.
Indeed, 28 percent of market researchers surveyed feel that passively collected consumer data (i.e., tracking location, website/online behavior) will be the most important data source in two years’ time, more than double the proportion (13 percent) who feel that it is currently the most important. That will put it virtually on par with customer surveys. Twenty-nine percent expect consumer surveys to become the most important data source in two years, down from 43 percent currently.
Meanwhile, social media and digital data (search engine, website visitation data) are also slated to become more important over time, while point of sales/sales data will decline in importance.
Other findings from the study:
- When asked what is the "biggest gap" in the market research industry today, suppliers were more likely to cite "data quality" (20 percent vs. 15 percent for clients). While "integrating information from different sources to tell a story" was the most frequent choice among both groups, the percentage for clients (31 percent) was significantly higher than for suppliers (23 percent).
- Budget limitations are and will likely remain the leading organizational issue for clients and suppliers, but a variety of other concerns — from data integration to regulatory concerns — are seen as nearly equal in importance.
Among the 709 respondents, 315 were clients and 394 were suppliers.
- Market Researchers Rank the Most Important Insight Creation Data Sources – MarketingCharts
- Two-Thirds of Market Research Clients Do Not Expect to Be Using Passive Data in Two Years – GfK/Business Wire
Do you see passively collected data rivaling consumer surveys within two years? What do you see as the upside and downside of passively collected consumer data versus consumer surveys?