INSIGHT on INSIGHT: Secondary Research
Research that has been previously conducted by a third party and packaged to be resold or syndicated as packets of raw data or pre-formatted reports is considered secondary research.
Buying secondary research is similar to buying a spec home. There are significant constraints that limit how many details you can customize (some are sold as-is, others allow varying degrees of customization). It is appealing an appealing option because it is possible to find a product that meets your immediate needs and requires far less time and effort to acquire compared to building a custom home.
There are literally hundreds of secondary research providers (becoming fewer as the topic narrows to particular industries or category). Some of the better know ones include Dow Jones Interactive, Lexis/Nexis, Spectra, FISonline, S&P's Industry Surveys, ACNeilsen scanner and panel, IRI, Mintel, PRN, Kantar Retail, D&B reports, trade associations, trade publications, and academic publications.
The value of secondary research is also extremely dependent on whether any providers offer information that is specific and complete enough to answer the questions you have (or deep enough to reveal new insight to questions you weren’t even asking).
THE PROS OF SECONDARY RESEARCH:
It can be a very easy way to gather basic industry or category information or expert perspective.
Many reports are available immediately or shortly after making payment.
It can provide detailed information about competitive products not available anywhere else.
Some retailers expect companies to be aware of and track information only available through secondary research (i.e. brand or retailer market share, etc.).
It can provide a breadth or depth of data that would be impractical or cost-prohibitive to acquire as primary research.
It can provide historic data (over past quarters or years) that would be impossible to acquire any other way.
THE CONS OF SECONDARY RESEARCH:
The cost of information varies significantly (from $300 whitepapers to $300,000 databases).
The cost of category-specific secondary research reports often requires time and effort to submit a formal request to a get a customized quote.
Several third-party providers are very opaque with their pricing structure, allowing for predatory pricing and a big disadvantage to small one-time buyers.
The value of information can’t always be determined until after it has been paid for.
Variables in the data may not be categorized consistent with how a client wants or needs to see it.
Many third-party reports end up being too generalized or aggregated to be really insightful.
Any competitor can buy the exact same information to gain the exact same insight.
Many providers of secondary research have intentionally sliced their data up into reports that require buying multiple products to piece together a complete picture.
Data that allows manipulation requires training on how the data is structured or proprietary analytic tools to make sure interpretation is correct.
Some secondary data requires the purchase of subscriptions or a repetitive annual investment.
Information can become stale or dated, like buying reports based on data collected over 12 months ago.
Secondary research is some time used in a bait-and-switch scheme to convince customers to pay larger and larger fees as the initial insight they purchase proves to be less than useful.
THE PROCESS
There is a certain amount of searching and homework (including tapping into one’s professional network) necessary to identify providers of secondary research that could meet your needs.
The process for getting a cost and acquiring the data or report (including what format it comes in) also varies significantly. Clients need to be very clear about what information at what level of detail is needed. This should include explaining how the research is going to be used and asking the provider to confirm that their product can deliver on those expectations.
It is typically best to find other companies or clients that have purchased the secondary research and can vouch for its usefulness before making any significant investment.