A market research KPI or metric is a performance measurement that is used to monitor, analyze and present survey results in an efficient way. These measurable values cover market research studies concerning product innovation, brand analysis and customer satisfaction etc.
Here is the complete list of the most important market research KPIs and metrics, that we will discuss in this article:
To evaluate the degree of brand awareness of your company, you can perform surveys over a sample large enough. On our example, we have n=1333 people answering the question “what brands come to your mind when thinking about outdoor products?”. That is a direct, non-aided brand awareness survey that requires active thinking from the people interviewed, who will tell all the names that come to their minds without help. The advantage of open questions is that you don’t get biased answers by presenting specific names straight away. It gives an idea of where each brand stands in the mind of people and how visible they are to the average consumer, passionate about the product category the brands stand in or not.Performance Indicators
The most people naming your brand by themselves, the greater the awareness.Relevant Showcase Dashboard
After asking an open question to measure the number of people expressing knowledge of a brand by themselves, comes the aided brand recognition. It is important to ask this question afterwards so as to have the least biased answer on the first one. The aided brand recognition asks the surveyed sample if they have heard about well-known brands within a product category (bottled water, cleaning aids, outdoor accessorizes, etc). In this type of survey, the percentages of people knowing a certain brand will always be higher than for the previous KPI, as it does not require active thinking from them but recognizing brands among others.Performance Indicators
If people can recognize some brands more than others, it means that they have paid attention to their campaigns.Relevant Showcase Dashboard
The brand image is the consumer’s perception of a brand, reflected by the adjectives and ideas he or she associates it with. It can be measured using Aaker’s brand dimensions framework. It describes the traits and profile of a brand using five core dimensions that each have several facets. This model is easy to understand and makes an analogy with humans’ personality traits. The five core dimensions that each have several facets are: sincerity, excitement, competence, sophistication and ruggedness. To measure these traits, you can use a five-point likert scale, from 'totally agree' to 'totally disagree'. On our example aside, we see that the biggest traits of the brand is ‘outdoorsy’, ‘comfortable’, and ‘down-to-earth’, that are related to the facets ruggedness and sincerity.Performance Indicators
Analyze and compare your brand image with your competitors and evaluate if consumers see your brand like you try to present it with your marketing campaigns.Relevant Showcase Dashboard
A pretty easy and straightforward market research KPI is the celebrity analysis. On the same sample of consumers, you only need to ask who, among a list of celebrities you have picked, do they associate with a brand’s name and image. You can also leave it as an open question so as to see who comes first to their mind. It provides you with valuable insights on what type of public figure and personality people affiliate with a company's work. You might have surprising answers, and that can also give food for thoughts on whether their campaigns were rightly made and had the results expected. As a brand, you may then consider partnering with one of the figures that got the higher percentage, if you believe they are in line with your brand image and ethics strategy.Performance Indicators
Celebrity endorsement is one of the most popular and efficient tools for advertising when done correctly: it is a good opportunity to use these insights.Relevant Showcase Dashboard
The usage intention is a market research KPI that focuses on a specific type of product and the relationship consumers have with it. It is a metric asking about their intention to use it in place of another similar product but with a different characteristic. On our example aside, the specific characteristic is the novelty of the product: 41% of the target group would rather use a new-generation item than an older one, or than a competitor’s one. Marketers use this metric to estimate potential future purchasing from consumers, but also to get a feedback on a new product or service and the enthusiasm it triggers. If people are eager to use a new product instead of an old or a competitor’s one, it means that it has an added value.Performance Indicators
The more people willing to use it, the better. However, don’t base a whole product development solely on these results.Relevant Showcase Dashboard
This market research metric takes the consumer’s intent a step further, by positioning them in an active state of potentially acquiring a product. It is often used by marketers as an input to make decisions on already-existing and new products or services. They are used to predict future sales, but should not be relied on so much - it remains an intention and does not always translate into future sales. Sales rely on many other external factors you cannot control on the moment of purchase: time, money available, tiredness, product or advisers available in store, long queue at the cashier, etc. On our example aside, 47% of the target group are interested in buying the newest product; and the top new products are then ranked by purchase intention.Performance Indicators
The higher the percentage, the better, as it means that the market responds positively to it. However, don’t take it at face value as many other factors are involved on the purchasing moment.Relevant Showcase Dashboard
The willingness to pay (WTP) represents the higher and lower price limits a consumer would pay for a product. It gives you a range on which you can fix the price of a product, and more specifically, the costs that should not be exceeded if you want to make profit on it. It is important when it comes to pricing decisions or a new product development. The scale used for this KPI is inspired by Stoetzel, who would ask customers directly their maximum and minimum price for a product taking into account other aspects like the quality of the product. If it is too low, there might be distrust towards the quality and long-lasting potential of the product.Performance Indicators
Push the analysis further by providing a price and evaluating the reaction towards it: is too high, too low, and in which proportions?Relevant Showcase Dashboard
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This is a trans-disciplinary metric that is used in many different departments – and especially important for the customer service. It measures the likelihood of customers to recommend a product or services to their friends and relatives. The question simply asks to grade, from 0 to 10, how likely they would recommend the brand. Their answers should then be classified as follows: 0-6 are detractors, 7-8 are passives, and 9-10 are promoters. You can then evaluate your score by subtracting the percentage of detractors to the percentage of promoters. Set yourself a target you want to reach and measures your NPS on a regular basis to be sure you are not falling back.Performance Indicators
NPS highly depends on the industry. Find a benchmark of your competitors' scores and try to exceed them.Relevant Showcase Dashboard
Studies show that over 90% of unhappy customers won’t do business with you again: that’s a figure you certainly don’t want to be applied to you. This is why surveying and asking regularly how your customers feel about your products and service is essential to get direct insights and not lose touch with reality. There are many ways to perform such survey, whether by email, live on the phone or at the store, within your company’s app, on your website, etc. Simply asking how satisfied they are, providing a 1-to-5 scale, will already give you a good idea of where you stand. Customers also feel their opinion is valued and taken into account, which plays in your favor.Performance Indicators
The more satisfied, the better of course! This is a score you can show on your website, along customer testimonies, as today everyone searches online reviews before engaging with a business.Relevant Showcase Dashboard
The customer effort score (CES) is measuring how fast and simple customers find their interaction with your business. It is very useful to spot any bottlenecks and frictions in the customer experience, and can predict future purchase behaviour. You can measure the CES after a specific customer support interaction, after purchases, in meetings, live chats, etc. There are several ways to measure it: as a simple average of the grades given after answering “on a scale from 1 to 10, how much effort did you put to get the help you needed?”, or with a NPS-style approach like on our example aside.Performance Indicators
The lower your score, the better. Reducing frictions and enhancing the customer experience is a must to see them coming back.Relevant Showcase Dashboard
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