The Value of Tracking Studies

Face Facts Research – 5 November 2024

Source Face Facts Website

Market research tracking projects are a powerful way to keep a finger on the pulse of markets. They involve systematic collection of data over defined periods "weekly, monthly, quarterly, or annually "providing ongoing insights into consumer behaviour, market trends, and competitive landscapes.

The frequency of the tracking will be determined by the objectives of the project, type of product and what is being tracked. For example, companies may be in a market where "activity" happens throughout the year e.g. communications or advertising and so they wish to continuously monitor the effectiveness of such activity against their competitors. Others may operate in a market where companies usually only conduct activity sporadically e.g. in Christmas advertising and hence they would only potentially need to conduct pre and post-Christmas tracking on an annual basis.

Advantages of Market Research Tracking Projects
One of the most compelling benefits of these projects is their ability to capture real-time data. In today‘s fast-paced market environments, staying updated with the latest trends and consumer preferences is crucial. Regular tracking studies help businesses make data-driven decisions, enabling swift responses to market shifts, competitor activity and emerging opportunities. It‘s akin to having a continuous conversation with the market, with each wave of data adding depth and context to the narrative.

Moreover, tracking studies reveal patterns over time. By consistently gathering data, organisations can identify long-term trends and cyclical behaviours, which are invaluable for strategic planning and forecasting. These insights can help businesses anticipate changes and adapt proactively, rather than reactively. For example, a quarterly tracking study might show a seasonal spike in demand for certain products, allowing a company to adjust its inventory and marketing strategies accordingly.

Regular tracking also enables companies to benchmark their performance against competitors. Understanding where a brand stands in relation to others in the industry can inform strategic decisions and highlight areas for improvement to minimise the loss of customers to competitors.

It‘s also possible to have a section of the tracker where questions can be swapped in and out providing the opportunity to get a gauge on topics/queries that become important to a company and need to be reacted to quickly.

Pitfalls of Tracking Studies
There are however some challenges associated with ongoing tracking studies.

1. Cost and Resource Intensive

Conducting tracking studies can be expensive and time-consuming. Maintaining a consistent methodology, recruiting participants, and analysing data requires significant resources. For smaller organisations, the investment may be prohibitive.

2. Changing Contexts

Market conditions can change rapidly due to economic shifts, technological advancements, or cultural trends. A tracking study conducted over an extended period may not account for these changes, leading to inaccurate conclusions.

3. Data Overload

With the wealth of information collected through tracking studies, companies can face challenges in data analysis. Sifting through extensive datasets to extract meaningful insights can be daunting, and there‘s a risk of focusing on noise rather than actionable insights.

4. Attribution Challenges

Determining the specific impact of various factors on consumer behaviour can be complex. Tracking studies may struggle to attribute changes in metrics to particular initiatives, especially when multiple campaigns or external factors are at play.

Despite these challenges, Face Facts love a tracker, and with effective planning and execution we help our clients mitigate these disadvantages and yield valuable insights.

Conclusion
Tracking studies play a vital role in market research, providing businesses with valuable real-time insights and revealing long-term trends which are invaluable tools for maintaining a competitive edge in dynamic markets. While they offer significant benefits, such as longitudinal insights and performance measurement, researchers must also navigate potential pitfalls like costs and data overload.

To maximise the effectiveness of tracking studies, companies should approach them with a clear strategy, ensuring that they remain flexible and adaptable to changing market conditions. It‘s crucial to communicate findings effectively, contextualise data, focus on actionable insights, and foster a culture of continuous learning.

By balancing the strengths and weaknesses of tracking studies, we have supported our clients in running many successful trackers over the years ensuring they can harness their full potential to drive informed decision-making and ultimately enable our clients to achieve greater success in the marketplace.