Amy Lee THUMB

Amy Lee

Lily Ahrens THUMB

Lily Ahrens

Rahul Kamath THUMB

Rahul Kamath

Insights & Strategy

Design Insights

Design Strategy

<p>What value does product research add?&nbsp;</p>
<p>There’s a quote commonly attributed to Abraham Lincoln that goes, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” At Delve, research is like sharpening the axe.<br></p>

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<p><sup>Continue this conversation on LinkedIn! Follow Amy's <a href="https://www.linkedin.com/in/amy-lee-2733586/" target="_blank">LinkedIn page</a> and share your thoughts about this blog post <a href="https://www.linkedin.com/posts/amy-lee-2733586_the-roi-of-research-and-strategy-part-1-activity-7048708059438731264-kzdl?utm_source=share&utm_medium=member_desktop" target="_blank">here.</a></sup></p>

<p>Research can add value to any business function, from product development to marketing to operations, in three main ways:</p>
<ul><li>User research provides clarity into the unknown.</li><li>Research articulates a 360-degree view of the realities on the ground.</li><li>Things you think you know may not be true. Research dispels or confirms existing beliefs and “inherited wisdom.”</li></ul>

User & Industry Landscape – May not know what to do about what you know or how to act on it. – Help get the team on-board and give the executive team confidence – Research gives a clear view of customers – their activities, environments, interactions, and

<h2><strong>R</strong>esearch is critical, especially during a recession </h2>
<p>Product research is a business essential, not a luxury, especially during economic downturns. We read an article recently that&nbsp;<a href="https://dovetail.com/outlier/user-research-recession/" target="_blank" rel="noreferrer noopener">explained</a> it this way: "Research allows a company to problem solve in a way that increases the likelihood its product team will not just be shipping fast but that they’ll be shipping purposefully.” </p>
<p>We couldn’t agree more. </p>
<p>During good economic times, companies have the luxury of time to go to market, fail, analyze data, then iterate as often as needed&nbsp;until they meet their goals. A few failed iterations may mean nothing worse than having to raise one or two additional rounds of funding.  </p>
<p>During a recession, however, businesses have very little room for mistakes, product iterations, or pivoting. With no margin for error, business leaders need to make product decisions based on real research data about their target market,&nbsp;instead of simply relying on best guesses or gut feel. <br></p>

<p>Running a business based on assumptions is tremendously risky and expensive.&nbsp;</p>
<p>With product research, you have real information and&nbsp;insight into the <em>why</em> of things, so you&nbsp;can make better decisions faster:</p>
<ul><li>When a product fails, you understand why, and can use that insight to inform your next iteration.</li><li>You understand your target market’s needs and pain points and can address them before your competitors do.</li><li>Your innovation initiatives are driven by the reality of your users’ needs and wants, allowing you to invest time and money in targeted ways.</li></ul>

Complexity of project – Product research is but one step – Difficulty assigning value – Short-term focus – The unknown

<h2><strong>How </strong><em>Not </em><strong>to Measure the ROI of Research</strong> </h2>
<p>The value of product research is critical, but notoriously difficult to measure. Traditional ROI calculations do not fully capture the value it provides.  <br> <br>When we explain this to clients, we usually list five reasons:  </p>
<ul><li><strong>Complexity of the project. </strong>For complex projects, like taking a new product to market, it is difficult to isolate the impacts of each factor on ROI. </li><li><strong>Research is but one step.</strong> Output of research is not the product or service to be sold; many steps (e.g. product development, marketing strategy) impact the success of a project. </li><li><strong>Difficulty assigning value. </strong>Estimating the value of certain factors can be tricky and subjective. </li><li><strong>Short-term focus. </strong>ROI is typically measured over the long term, so it can be difficult to accurately measure in short-term returns. </li><li><strong>The unknown.</strong> We can’t compare numbers for conducting research against not conducting research. We can only take one path. </li></ul>
<p>But just because the value of research is tough to measure doesn’t mean it isn’t real, tangible, and demonstrable. In the research we do for clients, we see the value four ways. </p>

Shows Standing on a Smiley Face on a Road – Delve Research & Strategy ROI

<h2>1. Product r<strong>esearch ensures</strong> that target markets receive what they truly want.</h2>
<p>Recognizing and catering to voice of customer is key to developing a relationship of trust. We uncover and frame user context and turn it into clear design directions and priorities.</p>
<ul></ul>
<h3><strong>The value clients receive:</strong><br> </h3>
<ul><li>Improved product usability.</li><li>Enhanced user experience.</li><li>Efficiencies associate with streamlining a product or process.</li><li>Increased customer satisfaction leading to positive word-of-mouth within user communities.</li><li>High customer satisfaction and loyalty.</li></ul>

Railroad Tracks Surrounded by Trees – Delve Research & Strategy ROI

<h2>2. Product research delivers greater efficiencies and decision-making insights.</h2>
<p>Decision-making can be a struggle for any organization, especially lacking nuanced, context-sensitive information. User research eliminates much of the “noise,” “lore,” and unsubstantiated debate around key business and product development decisions. Research also&nbsp;helps you determine what is important and what is not; and guide you on how to think about those decisions.</p>
<ul></ul>
<h3><strong>The value clients receive:</strong></h3>
<ul><li>Time is money. Product research helps you make better decisions faster. </li><li>Avoid the expense and inefficiency of inaction, delays, and uncertainty. </li></ul>

Broken Glass on the Ground – Delve Research & Strategy ROI

Product Market Research Team

<p>Every innovation challenge is different. At Delve, we use a client-specific mixture of research methods to build a solid foundation for design with an eye to the future. <br /></p>

<h2>3. Product research prevents expensive and erroneous decisions.</h2>
<p>Bad decisions are expensive, hard to undo, and have a long tail. A clear understanding of the market offers direction on how to move forward confidently and how to avoid missteps.&nbsp;We make sure that our clients'&nbsp;business decisions are prioritized and grounded in user needs, usage insights, and industry context. We also help clients prioritize key decisions during development, while greatly reducing the risk of bad decisions. </p>
<ul></ul>
<h3><strong>The value clients receive:</strong></h3>
<ul><li>Avoiding costly mistakes. </li><li>Avoiding rework. </li><li>Avoiding brand damage caused by poor decisions and a lack of insight into users and the market.</li></ul>

Car Lights Flashing By on a Road – Delve Research & Strategy ROI

<h2>4. Product research supercharges other investments.</h2>
<p>The value of all other business expenses hinge on making a product or service that possesses and communicates clear values to target users. We get a comprehensive picture of the landscape and provide you with the insights needed to be on top of your game.</p>
<ul></ul>
<h3>The value clients receive:</h3>
<ul><li>User research ensures that your company’s resources can be laser-focused on what matters to your customers and the industries they represent. </li><li>User research allows you to streamlining processes, products, and services, leading to cost savings, increased productivity, and greater return on investment.  </li><li>User research provides leverage for increased innovation.</li></ul>

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<p><strong>Next:</strong> In <a href="https://www.delve.com/insights/the-roi-of-research-and-strategy-part-2" target="_blank">The ROI of Research and Strategy, Part 2</a>, we explore what research deliverables and business results look like in the real world.</p>

Metal Being Grinded Down – ROI Research and Strategy

<p><strong>“Give me six hours to chop down a tree and I will spend the first four sharpening the axe,” Abraham Lincoln is supposed to have said. At Delve, research is like sharpening the axe.</strong></p>

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The ROI of Research and Strategy, Part 1

The ROI of Research and Strategy, Part 1

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