In the past 100 years, market research has changed and revolutionized how companies use these methods to gather crucial insights.
However, even in the past few decades, technology has changed exponentially. As a result, common types of market research has been forced to evolve as well.
In this blog post, our market research company looks back at the 2000s, 2010s, and the 2020s to see how market research has changed over the years.
Market Research in the 2000s
In 2003, Fred Reichheld revolutionized market research by introducing Net Promoter Score (NPS) while at Bain & Company.
NPS begins with a simple question, “How likely are you to recommend us to a friend or colleague?” and then answered on a zero to ten scale.
From that, the responses are usually clustered into three categories:
Promoters are those who rank the company or brand as either a 9 or 10.
They are typically the most loyal and are more likely to remain customers over time.
These customers also act as promoters who share their positive experiences with friends and colleagues and encourage them to become new customers.
Passives are those who rank the company or brand as either a 7 or 8. This group is considered to be “passively satisfied” with lower referral and purchase rates than promoters.
Detractors are those who rank the company or brand as either a 0 to 2.
This group is considered to be unhappy customers that account for a large percentage of negative word of mouth referrals.
This could discourage potential customers from moving forward and tarnish the company’s reputation.
Ultimately, NPS is just the percentage of customers who are promoters minus the percentage of those who are detractors.
Although it was created decades ago, it is still one of the widely-used customer experience measures and relied on companies of all sizes.
Learn more about NPS in this short 60-second video.
Market Research in the 2010s
In the early 2010s, companies trying to recover from the Great Recession began to increasingly invest in market research to generate sales and develop new products.
The 2010s also brought the rise of smartphones, social media, and on-demand consumer insights, which became more accessible than ever before.
With smartphones, participants were easily accessible, and mail-in surveys were falling out of favor for a quicker, easy-to-use online survey.
The Impact of Social Media Advertising
Social media advertising also became popularized during this era as LinkedIn, Twitter, Instagram, and Facebook all began to launch advertising campaigns to their platform.
This revolutionized businesses by gaining the opportunity to tap into potential customers using social media platforms.
Social media advertising allowed companies to gain detailed insights and analytics than ever before (i.e., who was coming to their website and clicking on advertisements).
Drive Research often utilizes social media advertising for market research purposes too! We discuss these benefits in, Using 5 Reasons to Consider Facebook for Online Surveys.
The Impact of Facebook Live
In mid-2015 Facebook launched Facebook Live, a live-streaming service that allowed users to stream in real-time to their friends and followers.
This allowed companies to have a new way to connect with their audience and consumers.
Market researchers were able to begin to leverage around the clock insights and opinions from customers and users through a wider audience and an expanded reach across the world to assist clients better.
Today market researchers and businesses continue to see the value of big data collected through social media and smartphones.
Market Research in the 2020s and Beyond
The future of market research is filled with challenges and opportunities.
Technology has come a long way and continues to change the way market research is conducted forever.
What before was a long, tedious, and expensive process has become simplified for anyone and everyone to use.
Impact of COVID-19
In light of COVID-19, while the world has moved to be virtual for the time being, focus groups and other methodologies that were once in person are now being shifted to being online.
Read more on that here, Market Research Methodologies to Consider Due to COVID-19
With automation and artificial intelligence growing, it will be interesting to watch and see how the industry will continue to change and develop.
Market researchers will have to keep up with trends by learning new skills and training to maximize benefits from the new technology available.
Furthermore, it is equally important to consider data privacy to protect consumers as large amounts of data continue to become readily available in real-time.
Drive Research is a national market research company specializing in qualitative and quantitative services. Our team of senior market research professionals delivers critical insights to achieve your unique business goals.
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