From Big Data to Smart Data

Big Data is like a flood. Market research must provide orientation in this flood. MK Is Big Data a blessing or a curse for market research?NORBERT WIRTH Today, "Big Data" is understood to cover a wide range of different topics - from customer data from a company's CRM system, to product ratings on shopping sites and Facebook likes, to information about smartphone usage or movement data.This information offers great potential for us market researchers to capture consumer behavior without having to actively survey people. In view of declining survey rates, this is of course a clear advantage and offers great opportunities that we can incorporate in the study design.MK So a definite win?WIRTH Big Data alone does not provide any insight for our customers. Only the combination of different data from different sources and the correct analysis of this data turn Big Data into action-relevant Smart Data. Under this condition, Big Data is a valuable addition to market research. The most important thing, of course, is that the data is only passed on to customers in an anonymized and aggregated form. As a market researcher, we are the guarantor of data protection with Big Data and can also clearly differentiate ourselves from other data suppliers here.MK What new challenges does the flood of data pose for market research?WIRTH The same scientific rules apply to insights gained through Big Data as to data we obtain through surveys. If these rules are not taken into account, incorrect conclusions can be drawn and we cannot provide customers with serious advice. Better data availability and larger data volumes therefore make analysis much more complex. After all, research is once again called upon to identify systematics and patterns in the large data streams from a wide variety of sources. Only the combination of market research expertise and precise knowledge of the markets enables valid, fact-based advice.MK What does Big Data bring to the customer?WIRTH For our customers, the increasing use of the mobile Internet in particular is giving rise to a large number of questions and problems to which we need to find answers quickly. How are smartphones changing shopping behavior? What advertising formats are having an impact here and what new opportunities are emerging? We want to help understand how communication, media consumption and shopping behavior are changing. Through partnerships with mobile communications companies, for example, we will in future be able to evaluate what different types of consumers do on the Internet on their smartphones while on the move - with the users' consent, of course. We can combine this data with data from different panels to offer customers valuable insights that they can use to adapt their strategy.MK What other topics are relevant?WIRTH In fact, mobile data is by far the most exciting field at the moment - across all industries. Of course, the main focus is on the brand experience and the "customer journey", i.e. the path to purchasing a product. Since this path is nowadays very individual, rarely linear, and above all increasingly digital and mobile, interesting questions arise that we explore for our customers.MK Is Big Data already part of market researchers' daily business?WIRTH For us, Big Data has long been part of everyday life: We systematically and passively measure digital behavior in the necessary depth, analyze and interpret the data to generate valuable insights and findings, and derive recommendations for action. So we turn Big Data into Smart Data.MK Does this mean that the modern market researcher is changing from questioner to observer?WIRTH It's the combination of both. But as consumers give us less and less time to participate in studies, we are developing new methods so that we only have to ask when it is really necessary.MK Are traditional market research tools now obsolete?WIRTH We will not do without surveys of any kind, whether online or offline, quantitative or qualitative. The choice of suitable instruments always depends on many factors: the customer's question, the time available, and so on. A major advantage of Big Data is that the information can be collected automatically and, as a rule, without any further effort on the part of the consumer. So in the future, we will be dealing with a mix of methods. There will be a shift away from pure surveys, but these will not be completely replaced. Especially questions about the motivation of specific behavior can often only be answered by surveys and qualitative techniques.MK What are the dangers of Big Data?WIRTH Nowadays, large amounts of data are increasingly available. Therefore, it is enormously important to check whether the data extraction and application complies with data protection, how the data was obtained with regard to scientific quality criteria for accurate and resilient analyses, and whether the data provides a differentiated insight into consumer worlds or only a small section of digital behavior is taken into account. In addition, attention should always be paid to offline behavior. Unfortunately, this is often neglected due to the "digital hype".MK How is market research gearing up for the future?WIRTH The digitization of consumption and communication is bringing us a veritable flood of new sources of information. As market researchers, we have to keep pace with the digital world. Innovative strength and a willingness to embrace new technologies are therefore key prerequisites for continued success in the future. This is especially true for our industry, as we support and advise our clients in their own innovations. For example, we also need to tap into the sources of these new, huge streams of data and constantly adapt to changes in consumers' lives. Only in this way can we provide our customers with the right information. This is an exciting challenge from both the methodological and technical sides. Moreover, "lots of data" does not automatically mean "good or representative data. So we're taking on the big challenge of turning the flood of data into valid and valuable information, fusing it with our proven data sources, and drawing real insights from it.Interview: Denise Weisflog

*Norbert Wirth is Global Head of Data and Sciences GfK.