How To Turn Observations Into Insight

At first glance, research is the least sexy part of marketing. There’s no branding, no graphic design, no big-time production team with cameras and lights to take everyone on-location. But in my view, the insights uncovered through research are the backbone of any solid marketing strategy. It’s the hard work. The digging down. And here at TSC, we’re working to make it sexy again.

One of the major problems with market research agencies today is that the primary focus is on gathering data—in other words, observations.

Remember your first science class? The heart of the scientific method is for a scientist to observe the natural world and then draw conclusions. Unfortunately, most researchers are content to collect observations, and never make the leap to the most important element of science: the logical conclusion.

Whether conducting customer surveys, desk research, door-to-door interviews or social listening—most researchers are interested in the facts they call “learning.” Don’t get me wrong. Learning is important. But after 10 years of unearthing consumer insights, the only learning I care about is the learning that leads to action.

So how can you turn market research into actions? How can all of those data points turn into a story? Use your observations and seek the underlying insight.

To do this, first you need to know the difference between observations and insight. Observations can be stated as fact. The sky is blue. The summer is hot. The average order value when a consumer converts from Pinterest is $179.36. Interesting. But interesting doesn’t make me change my behavior.

Insights, by contrast, naturally lead you to action. Insights help us understand why the facts matter.

Let’s take that last fact for example. The average order value when a consumer converts from social media: Twitter, $68.78, Facebook $80.22, Pinterest $179.36. The problem with that fact is that it leaves me hanging with doubt. Okay, so Pinterest is more effective at getting consumers to spend money. Why? What should a brand do with that information? What’s the insight?

Here’s what I think: Pinterest is able to drive significantly higher order value compared to other social networks because Pinterest posts are shown in a more relevant, organized context. On Pinterest, consumers can picture how a product might fit into their lives.

Here are a few more examples:

Observation:

Smartphone users check Facebook an average of 14 times per day. (source)

Insight:

People have a fear of missing out or being out of the loop which has been heightened to extreme degrees by the constant “updates” and highlight reels that get placed on social media, evidenced by the increase from an average of 1 check per day during the initial stages of Facebook to 14+ today.

Observation:

In developing countries, health is the most important need and remains top of mind for most mothers everyday.

Insight:

Health is the most important for mothers in developing countries because health is directly linked to a child’s ability to get an education and therefore further the family socially and financially.

Clearly, insight requires critical thinking—it’s using the data to tell a story. A compelling story.

“Big data” would like to crush that critical thinking with a deluge of data-points that in reality, mean nothing at all. TSC isn’t interested in that kind of research. We’re always pushing ourselves to think critically, unearthing the real insights that can lead to business growth.

When observation becomes insight, analytics becomes art. Then and only then should the camera crew and make-up teams go to work