One doesn’t typically attach a return on investment (ROI) to market research. ROI usually refers to a monetary value, and there typically isn’t one associated with your market research teams and the work they do. Why is this important? When it comes to marketing strategies, budgets are a huge portion of the consideration paid to work done. It’s helpful to understand what the ROI is on research conducted and insights gathered, and how much value is placed on the work being done here.
It’s also a great way to measure performance in this area, as well as sell the idea to stakeholders in the business. But can you calculate return on investment for market research? Although it’s a tricky topic to navigate in detail, it could be done. Here are a few considerations to make before trying to assign an ROI to your market research:
ROI can only be assigned to market research information or data that is put to use.
Think about the different iterations of research that go into understanding how a user relates to a product or service. Not every piece of research will necessarily be used, which means that all the unused research or data can never have any value associated with it.
Not all market research information will be used immediately.
This makes it really difficult to trace the information you’ve collected. You’ll need to bear this in mind and make a note to follow up in the future to find out where your research has been put to use.
The way your data is used and for what result can determine differences in value.
Depending on what segments of information were used, how they were collected and what they were used to solve, you will uncover differences in ROI. It’s also important to note the costs involved in using this data.
Market research data can be used in multiple departments.
The use of your data can impact the entire business from one department to the next. Understanding how it is being used will help you place value on it, but not necessarily in the form of an actual monetary figure. It can be used to streamline a certain activity or define a certain operation.
Return on investment is important for understanding the value of the work you do. If you ever need to validate the importance of your position, this is the perfect way to do it. Contact Interact RDT to help you understand the intricacies of market research and how it
can be used to ascertain value to your business.