INSIGHT on INSIGHT: Getting to the Why (or the root cause)

One of the biggest reasons to invest in primary shopper insight work is to get beyond behavioral understanding. 

POS data can contain a treasure chest of detailed item-level behaviors.  It can reveal important associations or patterns.  And it can even be applied to predict some future behaviors (making assumptions about certain factors remaining constant and other factors changing in predictable ways). 

But POS cannot reveal motivation.  It cannot answer why certain patterns or behaviors exist.

Diapers and beer are often purchased together, but that doesn’t mean a lot of mommies (or daddies) have a drinking problem.

An item might be selling quickly in certain university towns, but that doesn’t mean the same item will sell well in all university towns.

It is reasonable to make some decisions after understanding and extrapolating strong patterns in POS data.  However, it is extremely dangerous to ignore getting at the underlying reasons those patterns exist in the first place.

Focusing solely on purchase behavior through POS data is like trading stocks based only on watching pricing patterns in the market while doing nothing to understand the fundamentals of the company like how the implementation of corporate strategies will impact future revenue or profitability.

It is like a meteorologist attempting to create a weather forecast based solely on historic data from the Farmer’s Almanac with considering how present-day conditions are impacting environmental and atmospheric conditions.

 

GO DEEPER

Well-designed quantitative internet surveys can combine detailed behavioral data with attitudes and perceptions that explain those behaviors initially noticed through POS.  These techniques can also reveal where multiple behaviors exists, each driven by different factors.

In-depth interviews or ethnographic immersions can also go extremely deep into what factors are hiding behind certain observed phenomenon.  These techniques allow participants to explain the behaviors and react to ideas the client might be considering.  And they allow interviewers to observe and interpret apparent subconscious or unarticulated elements.

Some call this root cause analysis

Billionaire investors have learned to hire futurists or study how cultures and societies evolve to realize where new business opportunities exist (like the growth in natural foods or connected devices).  Along this line, E*trade is currently featuring advertising with a similar message:  Smart investors observe data in the market and then do a little more research to discover the hidden investment opportunity.

Meteorologists have learned to merge the data from numerous ground-, air- and space-based sensors to build models that are both begin far more accurate and remain accurate over a longer time horizon.

Understanding aspects like the desires, motivations, and psychology of shoppers can completely change how behaviors observed in POS data are understood and interpreted.  This added perspective can completely change what future behaviors are predicted and what responses are planned.