The Difference Between Good Customer Insights and Great Ones: How to make sure you’re getting the value you pay for

As a business investing in insights, you want to make sure you’re getting the best value for your money – you want to be getting great insights. In qualitative research, there is no gold standard for producing insights, we rely heavily on human interpretation of data. Because of this, it’s hard to know if the insights you’re investing in are going to be great, good or just plain bad.

When Danish toymaker Lego used consumer insights to go from near bankruptcy to the world’s biggest toy-maker, it’s fair to say their insights were great. On the other hand, when UK supermarket Tesco’s use of insights couldn’t stop their downfall, these insights weren’t so great. 

So, how do you ensure the insights you’re buying are going to be great? 

The key lies in the use of theory. Qualitative analysis uses theory to interpret a data set; to turn a collection of unstructured statements, observations and facts into a coherent, valuable insight. 

Why Use Theory? 

“Without analysis, of course, data collection is just plain reporting.” Christian Madsbjerg

According to Anthropological Consultant, Christian Madsbjerg, you need to understand the root causes that explain the data in order to establish patterns that make sense and can be applied to the entire customer base. Theories do just that. 

Sounds simple, right? Collect data. Input theory. Produce insights. 

Not quite. Until we find a theory of everything that explains all human behaviour, which theory to adopt how to apply it is up to the analyst. And this is where the value comes in. What distinguishes good insights from great ones is the analyst’s grasp of why, how and when to use theory. 

Using Theory for Run-of-the-mill Insights 

Good enough insights can be attained through a linear analysis process in which theorising comes into play after the data has been collected. In this view the data and theory are deemed as independent, rigid concepts. The theory should not prematurely influence the data collection in order to maintain its objectivity - so it contains nothing but the customer’s true voice. Equally, the data collection process should not bias the analyst’s choice of theoretical framework or interpretation of that framework. 

Theory for Great Insights 

Humans don’t separate their lives into structured, compartmentalised blocks. Neither, then, should an attempt to understand them. In reality, people produce their opinions, emotions and actions according to the situation they find themselves in (i.e. the data they are provided with) and their preconceived explanations about how the world works (i.e. their theories). Great analysts understand this and emulate it. And they are aware of this process. It even has a name – reflexivity. 

Knowing When to Use Theory 

Data collection should be an iterative process meaning the data should be analysed as-you-go for thematic development. As you collect data, new themes will appear which will guide the collection of further data. Theory guides how these themes should be interpreted and what topics need to be explored during subsequent data collection. 

Let the Data and Theory Dance 

However, it is crucial to find the right level of theory. You don’t want to over-theorise and force the data to fit into the theoretical framework. Swedish sociologist Patrik Aspers explains that throughout the process the data needs to be able to “kickback” against the theory to suggest errors, anomalies or inconsistencies. There should be a consistent back and forth – a dance, if you will – between the data and the theory, with both taking turns at leading the dance when needed. 

Great insights come from understanding how to curate the dance: knowing when to allow the data to take the lead and when it should follow the theory. Whether you are buying qualitative insights from a consultancy firm or producing them internally, you want to ensure your analysts understand the dance. If they don’t, you may end up with good insights and miss out on great ones. 

A quick guide to distinguishing great, good, and bad insights:

Billy Jones

I am a Behavioural Economist at Customer Experience Consultancy, Danji AB in Lund, Sweden. As Sweden’s leading Customer Experience bureau, we provide business with academically rigorous yet actionable insights into the behaviours, values, norms and emotional processes of their customers.