5 Ways Real Customers Are Better Than Gen Pop for Making Billion Dollar Business Decisions

Real Users Deliver Trustworthy Research 

In the late 90s, one of the world’s leading soft drink manufacturers launched a new version of their product in an effort to improve declining sales. Unfortunately, the research behind the launch failed to gather the right user data, leading to catastrophic results. The company ultimately had to withdraw the new product from shelves, leaving them with a significant loss in time, money and resources.

Even global conglomerates with enormous budgets and operational resources can miss the mark if they don’t conduct thorough research with the right users. When million-dollar decisions are at stake, why leave success to chance? Invest in user research to make informed choices that drive impactful results.

Today’s consumers want immersive and personalized experiences, which makes targeted research crucial for understanding their needs. However, many researchers still rely on general population samples, raising an important question: Can you really trust unverified respondents, some of whom might see participation as a side hustle, to guide your major business decisions?

In a market where people are participating in research for income, the authenticity of data from general population samples is becoming more uncertain than ever. The best insights will almost always come from understanding your actual users, ensuring that the data collected is genuine and actually relevant to your business.

Plus, acquiring new customers is about five times more expensive than keeping existing ones. So why focus on general population research that might waste time, money, and resources? The most important trend researchers need to focus on is going back to basics by conducting research with their actual customers to drive long-term success.

Here are 5 reasons you’ll want to make the switch from using the general population to real users for research: 

1. Customer Engagement: When brands take the time to engage with their customers and build strong relationships, those customers are more likely to give thoughtful and consistent feedback, greatly enhancing the quality of insights. When customers feel fairly compensated for their time and can see how their feedback leads to real changes in a brand they love, they are much more inclined to participate again in the future.

2. Cost savings: You won’t need to purchase expensive third-party samples each time you conduct research, significantly reducing your overall research costs. 

Toyota, the Japanese automotive manufacturer, has significantly reduced research time and costs by surveying its own customers instead of the general population. By engaging with its customer community members, Toyota is able to identify common themes that enhance the customer experience for both potential buyers and current owners.

These insights are then used to inform new projects and drive continuous optimization across various functions. The Toyota research team has also implemented an ROI tracking system to align their findings with key organizational goals, enabling them to quantify how much their program is saving the business in external research costs, thanks to quick feedback from real customer respondents.

3. Time Efficiency: Establishing an in-house community of your users streamlines the research process, saving your internal teams weeks, if not months, in setup and execution.

4. Better and Faster Insights: Insights gathered from your own users provide a deeper, more personalized understanding of your offerings. Since these are the individuals actively using your product, their feedback is far more relevant and valuable than that of someone unfamiliar with your brand.

5. Longitudinal Research Capabilities: With an in-house community, you can easily validate your research and track changes over time with the same users. The ability to validate your impact is research gold.

Volvo, the Swedish multinational manufacturer of luxury vehicles, was preparing to introduce a new feature in the Volvo Cars app to better support its customers. To gather feedback, their research team engaged one of their three dedicated real customer communities, allowing them to assess the app’s reliability across different regions of the US.

To ensure trustworthy feedback, it was crucial that all participants were current users of the Volvo Cars app. Volvo was able to release the new feature to community members six weeks before the full launch, giving their customers the opportunity to test it and provide their user experience feedback before launch, providing invaluable insights on the usability of their new product. By leveraging their community, Volvo was able to conduct five additional surveys with the same customers regarding post-launch enhancements. 

By prioritizing your own users in research, you not only gain deeper insights but can also foster a loyal community of customers that can drive your brand forward in meaningful ways.

While research among your own users is the best way to inform your business decisions, there will be specific circumstances where consulting the general population could also provide valuable insights. Like when launching a new company without an existing customer base, or when expanding into a new market.

However, it’s crucial to approach general population research with extreme caution. Companies will often rely on these broader samples when entering new markets, sometimes continuing this practice even after acquiring the right customer base.

The secret to conducting impactful research isn’t really a secret at all: it’s just about getting back to basics and listening to your real customers. After all, research is done with the purpose to enhance the customer experience and improve your brand, so why not invite them to lead the conversation? 

Curious about how leveraging real customer insights can transform your research approach and drive meaningful impact in your organization? Don’t miss Alida’s Innovation Day, a virtual research event on Tuesday, December 10th. Register now to secure your spot.