Research ROI. How to prove it adds value
Artem Tinchurin
Visionary CTO, Fastuna
The likelihood that in the process of research you will find "insight in a million" and open a new market is small. In a competitive market ("red ocean"), research is an optimization tool. And it’s an important tool. Let me illustrate with an aviation example.
Cumulative efficiency
The aircraft is a product built on a hard compromise between commercial performance, physics and safety requirements. Without breakthroughs in the fundamental sciences, it cannot be radically improved.
But imagine that you have learned to make every third part 5% lighter, engines 5% more efficient, wings 5% more efficient, and aerodynamic drag 5% lower. In addition, you have pushed 5% more seats into the cabin :).
A five per cent improvement isn’t much, is it? But the result is a radically more efficient and competitive aircraft. 105% * 105% * 105% * 105% * 105% = 128%.
Each research project increases the product efficiency
You conduct research, understand people’s needs a little better, make minor improvements to the product, and fine-tune the communication platform. You research consumption habits, build CJM and optimise channels and touchpoints.
Market share = awareness * availability * the likelihood of choice
With the help of research, each time you choose a slightly better creative option, name, feature, promo, price… Of course, none of these choices in isolation is decisive. But in the end, you get a radically more efficient and competitive product.
Research must be a systematic process
Establishing such a process is the researcher’s main goal on the client side. This process is a product that takes off only with vision and will. These are the qualities you need to look for in the person responsible for research in your company.
Moreover, research is relatively affordable. It's only a fraction of any mass product sales.
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