Are you following the golden rule of market research technology?

Technology helps companies get closer to their customers. But only when it’s the right technology.

Time and distance. Two formidable barriers that drive a wedge between companies and their customers. As the distance between companies and customers increases, due to greater numbers of retail locations, Omni-channel expansion, etc., the opportunity to obtain timely, accurate, and rich insights decreases. Time and distance have long hindered brands and retailers from greater knowledge of those who shop, purchase, and consume their products.

Get a Little Bit Closer

Mobile market research is founded on the basis that mobile technology reduces the distance—both geographical and chronological—between companies and customers. Mobile research has made it easier to know, for instance, what customers are presently thinking, rather than what they were thinking, and to observe shoppers and customers “in the act,” instead of relying on their recall.\n

But innovation marches on, and new technologies, by which companies hope to get even closer to the customer, occasionally make the headlines. While every new technology launch carries the hope of improving current methods, it also carries a dangerous possibility: that someone will confuse new research technology for sound research practice. Methodology should never be forced to serve technology. Rather, technology should serve methodology. In other words, technology should conform to what works, not dictate what works.

This leads to the golden rule of market research technology:

Cutting-edge technology is no substitute for tried-and-true research methodology.

With the emergence of any new technology, a company should ask, “Does it enable good research practice?” If the answer is “no,” the technology may simply need further development, or it may be not be suited for the company’s research needs.

Can’t Fence Me In

To potentially enhance their mobile research and marketing programs, companies and research firms have experimented with new technology such as geofencing and iBeacons. Geofencing occurs where a store—or, in theory, even a store shelf—is “fenced in” by a GPS boundary. This invisible boundary detects when mobile devices cross over it, thus triggering an event such as a shopper survey or brand ad. Consequently, geofencing carries the hope of getting companies even closer to their customers, of providing a means by which companies can deliver surveys and ads at a crucial moment: when customers are actually in stores, interacting with products.

However, at this point, geofencing remains more promising in theory than in practice. While a smartphone does have accurate GPS positioning, the accuracy is often times impacted by other technology such as network access, cell signal, etc. In many cases it is difficult to locate exactly where shoppers are. By exact you may know a person is within 250 feet of a location when you really need to know when they are within 5-10 feet of the location. This presents a problem for companies using geofencing, because there’s no way of knowing whether a shopper is actually in-store or at the store next door. Geofencing works only as well as the ability of a mobile device to precisely locate its user. But if Major League Baseball relied on geofencing to call balls and strikes, it might register “strike three” on a pickoff play to first base. And though an intriguing development, in its current state geofencing may be more impacting for marketing and post shopping surveys as opposed to research on product or shelf engagement.

Beacon Call

The iBeacon attempts to correct some of the problems of geofencing by tightening the “fence.” An iBeacon is a Bluetooth-enabled device positioned inside stores—for instance, on store shelves or in light fixtures—that detects the nearby presence of mobile devices, usually those programmed with a Beacon-enabled app.  The idea is similar to geofencing but allows for better accuracy. Theoretically, an iBeacon inside a product display should know when a shopper approaches and, thus, can trigger the delivery of a shopper survey, coupon, etc. to take advantage of the shopper’s close proximity to the display.

The iBeacon still suffers from certain practical issues that impact all new emerging technologies. It’s like the old quote, “too much of a good thing can be a bad thing.” For example, a store equipped with a couple dozen iBeacons—let alone hundreds of them—could cause a “pinging” frenzy that frustrates shoppers and drains their smartphone batteries. This could cause the shoppers to turn off Bluetooth while in the stores or possibly even delete the app.

Technology alone cannot be expected to change human behavior. However, when reliable methodology is paired with new emerging technologies, we can then see how technology has the potential to enable good research practice.\n

Above All, Keep the Golden Rule\n

A tool is only as good as its reliability and usability. As with any technology—however exciting it may be—we have to account for how people actually engage with the technology as well as how the environment impacts their engagement.

Speaking to researchers at the 2014 IIeX (Insight & Innovation Exchange) Conference, Rick West, VP of the Mobile Marketing Research Association and CEO of Field Agent, said, “As you start looking at technology and how you’re going to implement it…you’ve got to make sure you’ve got someone who understands how to design methodology with mobile in mind. This is why we have researchers on staff. When you talk to someone, you’re engaging a researcher that understands what you’re looking for.” Technology cannot replace the personal attention of professional researchers whose knowledge of research design and methodology ensures the delivery of great data.

[Watch West’s full presentation]\n

Jim Collins famously said, “When used right, technology becomes an accelerator of momentum, not a creator of it.” The same principle applies to market research technology. As companies strive to get closer to the customer, they shouldn’t chase shiny new technology and replace time-tested, rigorous research practices. They should instead incorporate new technology and supplement tried-and-true research methodology that will truly enable them to get closer to their customers.

Remember the golden rule of market research technology:

Cutting-edge technology is no substitute for tried-and-true research methodology.

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