Reliability of market research data

Reliable market research data is consistent, accurate and trustworthy enough to base business decisions on. If you asked the same customers the same question next week and got completely different answers, the data would not be reliable.

Improving reliability

Reliability improves when you use the most appropriate research method for the type of data required. If you want numbers, such as how many customers would pay £4 for a product, a structured questionnaire with closed questions works better than a few casual conversations. The sample — the group of people researched — must be large enough and representative of the market. That means it includes a fair mix of the customers you hope to attract, not just friends or one age group.

Collecting sufficient data lets you spot anomalies — unusual answers that do not fit the pattern — so one odd response does not distort your conclusion. Analysis must also be thorough and accurate: adding up totals correctly, checking percentages and comparing answers across groups. A spreadsheet with one mistyped figure can make accurate survey data look unreliable.

When data is unreliable

Unreliable data can lead a business to launch a product or service that does not match customer needs. For example, a café owner surveys only fitness fans and concludes that customers want low-sugar cakes, then finds ordinary families wanted larger slices at a lower price. Unreliable data can also mean a business misses a gap or opportunity in the market, so a competitor serves an unmet need first. Worse, it can lead to poor decisions — ordering too much stock, choosing the wrong location or setting an unprofitable price — with potentially damaging consequences such as wasted money and lost sales.

Market research is a powerful business tool, but only when its data is reliable. A large, representative sample and careful analysis turn opinions into evidence you can act on.