Overlooking Building Blocks: The Need for Researchers as Pillars of the Product.

In the past, research heavily relied on demographic variables such as age, education, and socioeconomic status. These factors were the cornerstones of research approaches and shaped the insights derived, particularly in many B2C market research sectors. However, today's landscape is evolving rapidly. The lines between B2B and B2B2C are increasingly blurred, creating a complex environment where multiple enterprises exist between the product's source and its final user. This complexity has led to a significant shift in how end users are studied.

As data collection methods and analysis techniques have evolved, traditional demographic factors have often been pushed to the background. The focus has moved towards understanding user behaviour, psychographics, and tracking the entire journey from selection to purchase. But does this shift mean that variables like demographics are being overlooked, or is the change justified?

The Shift in Research Priorities

There is a noticeable shift in priorities in today's evolving research landscape. On one end, larger organisations with established research practices continue to leverage demographic variables to derive valuable insights. On the other, many smaller organisations do not intentionally ignore demographics and socio-economic classifications, but these variables often get sidelined due to practical constraints. The focus on agile methodologies, rapid information turnover, and a "fail fast" mentality often leaves little room for traditional metrics. This drive for personalised and inclusive experiences has shifted research emphasis towards behavioural and psychographic data.

Understanding the demographics of end users in a B2B2C setup is not only challenging but often not prioritised or considered necessary. However, this raises an important question: what foundational elements can be used to build client profiles and effectively analyze data?

Based on my experience in the enterprise sector, some key variables that could serve as building blocks include:

• Headquarters location (City and state)
• Years in business
• Company size
• Lines of business (LOB) and sub-LOBs
• Business units (BU) and sub-BUs
• Products currently in use from the company
• Annual revenue
• Any other relevant variables within the internal data that an enterprise organisation collects

These variables can be utilised to create personas or profiles within an organisation, allowing companies to develop internal metrics and connect the dots using their existing data.

While these building blocks are available, the real question is: Who will take on the responsibility to develop these profiles, and why isn't this being done more proactively?

The Gap in Focus and Skill Sets

One reason for the decreased emphasis on demographics is the imbalance between those who create and maintain products and those dedicated to understanding consumer needs. Founders generate ideas, product managers refine concepts and optimise ROI, designers craft user experiences, and engineers build the technology. Throughout this process, the actual end user—the person for whom all this effort is made—is often assumed to be understood based on limited interactions or borrowed insights rather than being genuinely considered at the center of product development. The primary focus is on ROI, not on fully understanding the client or end user.

Several factors contribute to this oversight:

1. Perceived Understanding: Management and product managers often believe that the end user is already well-understood.
2. Surface-Level Engagement: Companies rely on superficial interactions with clients or users, overlooking the psychological gap between what users say they want and what they actually need.
3. Lack of Specialisation: Unlike other roles, understanding the customer isn’t typically a core responsibility of any single team, leaving a gap in focus on the end user.
4. Misconception of Research Importance: There’s a belief that understanding the customer doesn’t require specialised skills, unlike product development, sales, or marketing.

As organisations claim they are customer-centric, they must ask themselves: Do they have someone specifically responsible for ensuring the customer’s voice is heard and integrated into product development? Who is considering not just behavioural insights but also demographic factors?

The Unique Value of Researchers

This is where researchers play a crucial role. Unlike other roles, researchers are trained to focus on users and all associated variables, connecting the dots, uncovering unspoken needs, and deriving valuable insights. They ensure products and services are designed to meet diverse customer needs from the outset, promoting inclusivity and accessibility. By addressing a wide range of user requirements, researchers help expand the customer base and build brand loyalty by evolving products based on continuous insights.

The Risks of Neglecting Research

In agile environments, the rush to iterate quickly can lead to a lack of understanding of user needs. Smaller organisations or startups without robust user personas and demographic data may experience high churn rates and missed growth opportunities. Even established companies with detailed user personas can benefit from ongoing research to stay ahead.

Critical Questions for Enterprises

1. Why do roles and principles in marketing, sales, and product management remain consistent across organisations, while research seems flexible enough to deviate from established principles?
2. Why is it acceptable to invest in financial models, sales strategies, and marketing while viewing research as an expense rather than an investment?

Alternate approach: Service Driven Research approach

For companies truly committed to growth and customer-centricity, it's time to consider a fresh approach to research. Just as new roles are emerging to address evolving needs, organizations should rethink their research strategies. By establishing in-house research teams with dual roles, companies can ensure that they stay aligned with their customers’ needs.

Internally, these researchers can serve as connectors across departments, ensuring that design, development, and marketing efforts are all driven by a deep understanding of the customer. This role allows researchers to bring an objective perspective, constantly refocusing the organisation on the user and bridging the gap between products and users.

Externally, these teams can be positioned as a resource for clients to better understand their end customers. This approach not only benefits the clients but also allows the organisation to gather valuable insights that can be fed back into product development, leading to solutions that genuinely meet customer needs.

Share your thoughts in the comments!