Time series analysis is a powerful tool for analysing data collected throughout an extended period. Here is how you can use it to understand changes in consumer and market trends, and make data-driven decisions.
Time series analysis provides businesses with valuable insights into their data by breaking it down into specific time periods or “waves”. Here are four market and pricing research areas in which time series analysis can help businesses of all sizes and industries identify trends, such as seasonality, cyclic behaviour, and hidden patterns in consumer and market trends, for better decision-making.
Discovering consumption patterns and market trends over time
In today’s fast-paced business environment, understanding how consumer and market trends shift is crucial for businesses to identify and capitalise on growth and innovation opportunities.
By conducting market research regularly and analysing the data using time series analysis, businesses can identify patterns, trends, and anomalies in consumer behaviours and market dynamics that might not be immediately obvious. This information can help businesses adjust their strategies and positioning in response to changes in the market, such as launching new products to address an unmet need or targeting specific groups of customers at different times of the year.
Monitoring changes in customers’ acceptable price ranges
Continuously measuring customers’ acceptable price ranges provides businesses with valuable insights into setting competitive prices for products and services in the rapidly changing market.
By conducting Van Westendorp Price Sensitivity Meter over an extended period and analysing the data with time series analysis, businesses can uncover customers’ acceptable price ranges at different times. This information can inform pricing and sales strategies, such as the price levels during peak periods and the best time and frequency for sales promotions or discounts, ensuring prices remain competitive while still maximising revenue.
Deep diving into consumer preferences and attitudes toward products and services over time
By analysing consumer preferences and attitudes over time, businesses can gain insight into which products or features are favoured by their customers. This helps businesses adjust their offerings to meet their customers’ needs better.
Additionally, businesses can make proactive changes, such as adjusting marketing strategies and implementing new customer service initiatives to improve customer satisfaction and increase sales by understanding which factors are most important to their customers.
Evaluating the effectiveness of claims and ad messages over time
In today’s competitive business landscape, tracking how consumers perceive product claims and advertising messages over time is crucial for a business to maintain the reliability, uniqueness, and relevance of claims and ad messages.
By conducting claim tests with their target audiences monthly or quarterly, businesses can stay aware of changes in consumer perceptions and adjust their products and marketing strategies to remain appealing to their customers.