Customer database research – an approach for powerful insights

Background

We often have conversations with clients about customer database research – either speaking exclusively to their database, or augmenting a wider market research panel with that of their customer.

This often comes from two places:

1. Cost-saving: If a database exists, why not make extract further value without paying additional fees to reach a wider base of customers; and
2. Insights: What can be done to understand the database in more detail to surface additional insights?

For a recent project involving a brand in the breakfast / smoothie / acai bowl space, we were approached with just this brief – to include a cross-section of customers when conducting a wider brand health and positioning study.

Approach to include customer databases in market research

While we included a component of the customer’s database within our sample profile, we made sure to understand the market at three levels:

• The profile / demographic make-up of the database itself;
• The profile / demographic make-up of those responding to the survey invite; and
• The profile / demographic of those participating in the category.

Result and insights from surveying a customer database in research

By comparing and contrasting the database composition, those who completed the survey, and the market at large, we learned several insights for our client:

• The client was better able to understand how their database differs to the typical brand user, providing detail on how those who sign-up to the mailing list may represent a different cross-section of the market.
• We were able to identify and strategise offers to not only resonate with those previously signed up to the database, but the importance of broadening out who (and how) we get a wider audience to sign up.
• Analysis helped reveal the unique brand offering, from comparing and contrasting exising users and wider market, providing a strategic overlay for future brand extensions and development.

Using a customer database to conduct research makes a lot of sense – it’s an asset that exists, and mining this for additional value (as well as how to activate against this audience) is prudent. However, careful thought must go into understanding the size and shape of the database versus the wider market to better contextualise results – both of who the database represents, and what their needs may be.

Chat to Vibrant today if you’re thinking about including your database in market research studies – we’d be happy to share further learnings and insights.