by Angela Guess
Carolyn Galvin recently wrote in iCrunchData News, “Much has been written about Big Data, including the insights that can be gleaned from thousands or millions of data points, especially in the data-rich B2C market. But what about Little Data? What can we learn from just a few data points? And when is Little Data appropriate in market, competitive and buyer research? As a B2B researcher evaluating buyers, markets and competitors for nearly 20 years, I’ve often been asked how many data points are ‘good enough.’ Clients who have worked in consumer marketing expect answers with phrases such as ‘confidence level’ and ‘margin of error’.”
Galvin goes on, “In B2B research, where researchers typically capture detailed buyer feedback through several methods of triangulation, getting as few as 10 data points per program can provide significant insights into: (1) Buyer reluctance to purchase from vendors. (2) Areas of strength that should be replicated as best practices throughout the organization. (3) Competitor strategies and tactics that could impact success over the long term.”
She continues, “ ‘How can 10 data points be enough?’ many clients ask, often with incredulity building in their voices.” Galvin gives a few reasons: “(1) B2B markets tend to be highly specialized, with buyers and firms dictating specific requirements from their vendors. Buyers know with great certainty what they want and expect in terms of product functionality, pricing and service and support. (2) Pricing in B2B industries is generally uniform within markets and segments, with few variations in pricing models or pricing levels. Firms have figured out how to make acceptable margins while still remaining competitive.”
Photo credit: Flickr/ raniel diaz