Association Convention on Unmasking the African Consumer. The paper highlighted the untapped potential of underserved markets and sparked interest across industries. Among the intrigued was Safaricom, Kenya ' s leading telecommunications company. Recognizing the relevance of this concept to their flagship mobile money platform, M-Pesa, Safaricom engaged SBO Research to transform the idea into a tailored primary research project.
The objective of the research was clear: to gain actionable insights into the needs, behaviors, and preferences of consumers at the bottom of the pyramid. This required gathering realtime, on-the-ground data from the target audience- information that couldn’ t be gleaned from secondary sources alone. By directly engaging with customers, the research team was able to uncover nuanced insights into how these underserved markets interacted with financial services, their pain points, and the innovative solutions they desired.
The results of this primary research empowered Safaricom to craft datadriven strategies tailored specifically to the unique challenges and opportunities of this market segment. It paved the way for M-Pesa to implement innovations that resonated deeply with its audience, driving adoption and financial inclusion across previously neglected demographics. This case exemplifies the critical role primary research plays in shaping impactful, customer-focused strategies and highlights how data-driven decisions can unlock innovation and business growth.
Enhancing Competitive Intelligence
In a dynamic business landscape, understanding competitors is as crucial as knowing your customers. Primary research provides detailed insights into competitors’ strengths, weaknesses, and customer perception, allowing companies to differentiate themselves effectively. Tools such as mystery shopping, direct customer interviews, and observational research offer a firsthand look at how competitors operate.
For example, Apple is known for conducting regular focus groups and observational studies to understand not only its customers but also its competitors. These insights guide product development and marketing strategies, ensuring Apple’ s products consistently outpace competitors in design, functionality, and user experience. This competitive intelligence has cemented Apple’ s position as a market leader across multiple categories.
Validating New Product Ideas and Minimizing Risks
Launching a new product or service always carries inherent risks, but primary research mitigates these risks by providing direct feedback from potential customers. Testing concepts, features, and pricing models with a target audience ensures that offerings are aligned with market demand.
Coca-Cola leveraged primary research during the launch of its Coca-Cola Zero product. Focus groups and taste tests revealed that consumers wanted a sugar-free cola that tasted identical to the original Coca-Cola. This feedback shaped the product formulation and marketing strategy, resulting in a highly successful launch and rapid adoption across global markets.
Similarly, Tesla uses primary research extensively before rolling out updates to its electric vehicles. By surveying existing customers and prospective buyers, Tesla refines its technology and ensures that every feature, from autopilot capabilities to charging solutions, addresses realworld needs.
Improving Customer Experience
The quality of customer experience( CX) can make or break a brand in today’ s competitive market. Primary research helps organizations measure customer satisfaction and identify pain points, enabling them to make targeted improvements. Satisfaction surveys, indepth interviews, and real-time feedback are critical tools for understanding how customers perceive a company’ s products or services.
A compelling example is Hilton Hotels, which uses primary research data collected through post-stay surveys to fine-tune its customer experience. Feedback on everything from checkin processes to room cleanliness and amenities is analyzed to implement actionable improvements. This customercentric approach has consistently positioned Hilton as one of the most trusted hotel chains globally.
Customer experience surveys have become a key tool for businesses seeking to refine their engagement strategies. At SBO Research, we have been involved in numerous customer experience studies across Africa, spanning diverse sectors such as insurance, banking, energy, telecommunications, FMCG, and state corporations. One notable example is a national customer satisfaction survey conducted for Kenya Power. This study identified critical gaps in customer service delivery, providing actionable insights that informed the company’ s strategy to enhance its customer experience.
Segmenting and Targeting Customers More Precisely
Market segmentation is a critical aspect of modern marketing, allowing businesses to divide their audience into specific groups based on shared characteristics. Primary research offers the granular data necessary to create accurate customer profiles, ensuring that marketing efforts are targeted and effective.
Consider the case of Amazon, which continuously gathers primary data on customer preferences and purchase behaviors. Using this data, Amazon segments its customers into detailed profiles, enabling personalized recommendations that drive repeat purchases and strengthen customer loyalty. This precision targeting has made Amazon a global leader in e-commerce.
Refining Marketing Campaigns for Greater ROI
Primary research also plays a vital role in testing and refining marketing strategies. By collecting data on customer responses to different marketing messages, visuals, and channels, businesses can determine what resonates most with their audience. This insight ensures that campaigns deliver maximum impact and return on investment.
For example, Nike conducts extensive primary research with athletes and everyday consumers before launching its marketing campaigns. By understanding the aspirations and motivations of its target audience, Nike creates emotionally resonant ads that reinforce its brand message, " Just Do It." This data-driven approach has consistently resulted in award-winning campaigns that drive engagement and sales.
Refining Packaging Decisions for Greater ROI
The example highlighted below shows how packaging decisions in the FMCG sector are often driven by thorough consumer research. At SBO Research, we were privileged to participate in Cadbury’ s Drinking Chocolate package color change survey in East Africa. This research explored consumer perceptions