Written by: Erin Eatough, PhD & Shonna Waters, PhD
In the rapidly evolving business landscape, companies are constantly seeking ways to gain a competitive edge. Two critical factors have emerged as key differentiators: leveraging data as a strategic asset and incorporating high-quality expert research into decision-making and marketing efforts.
Companies can harness the power of data and expert research to build trust with customers, drive growth, and establish themselves as industry leaders. However, not many companies are doing this - or doing it well. In the age of AI, the noise from content marketing has become democratized and ubiquitous. To stand out in crowded market spaces, companies need unique, differentiated, high caliber content, data, and insights to generate credibility that their customers can’t get from competitors.
The Data Imperative
Data has become the new gold rush, with companies recognizing its potential to create significant competitive advantages. A recent report by McKinsey found that data-driven organizations are 23 times more likely to acquire customers, six times more likely to retain them, and 19 times more likely to be profitable1. By measuring and analyzing the outcomes of initiatives, companies can demonstrate the tangible value and ROI they deliver to customers. Moreover, data-driven insights can help companies position themselves as thought leaders and unlock new business models that can be built from their data assets alone, such as paid access to unmatched insights via exclusive briefings, roundtables, or communities.
However, merely having data is not enough. The quality and credibility of that data are paramount. A 2022 report by Accenture revealed that while 81% of executives believe data will be a key source of competitive differentiation in the future, only 39% trust that their data is accurate and complete2. This trust gap underscores the importance of not just collecting data, but ensuring its integrity, consistency, and transparency. Data alone is not valuable. It’s the expert design, handling, and harvesting of that data that turns research into revenue.
The Power of Expert Research
Alongside the growing importance of internal data collection and harvesting is the rising value and strategy of leveraging expert research. In a content-saturated world, B2B buyers are placing a premium on credible information from trusted sources. A 2021 study by Forrester found that 74% of B2B buyers find external research more trustworthy than vendor-created content3.
Several factors drive this preference for expert research:
1. Credibility and objectivity: expert research is perceived as unbiased and hence more reliable.
2. Specialized expertise: Research firms bring deep domain knowledge and cutting-edge methodologies.
3. Bandwidth and focus: Outsourcing research allows companies to benefit from insights without diverting internal resources.
4. Fresh perspectives: External researchers can challenge internal assumptions and bring "outside-in" thinking.
5. Benchmarking and best practices: Research firms offer cross-industry visibility and benchmarking data.
6. Proven ROI: Studies show that companies leveraging expert research in their content see significantly higher conversion rates.
A Multi-Pronged Approach to Earning Market Trust
While the value of external expert research is evident, it does not diminish the importance of leveraging internal data sources because it is the internal data that is going to be truly unmatched in any market. Internal data - especially when designed and leveraged well - can offer insights your company has that no other company can copy, repeat, and match.
Furthermore, scientific advisory boards can play a crucial role in building credibility and trust in the market. By assembling a group of respected experts in relevant fields, companies can tap into a wealth of knowledge and experience. These advisors can provide valuable guidance on research and development, validate internal findings, and lend their credibility to the company's efforts. A well-curated and leveraged scientific advisory board can be a powerful tool for establishing thought leadership and differentiating a company from its competitors.
The most effective strategies for earning respect as a coveted “trusted advisor” in any industry often involves a mix of all of these: external expert research, internal research, and scientific advisory.
External research brings immense credibility, specialized expertise, and fresh perspectives that can educate and compel action in your market.
Internal research provides deep, unique insights that can help you tell your product or service’s ROI story and quantify impact, in addition to spotting trends or themes no one else has access to.
Scientific advisory allows you to tap into deep subject matter expertise in behavioral, social, or technical sciences for advisory and support in product innovation, marketing, sales, as well as building brand credibility and recognition.
Research Type | Benefits |
External Research | - Brings immense credibility - Provides specialized expertise - Offers fresh perspectives that can educate and compel action in your market |
Internal Research | - Provides deep, unique insights - Helps tell your product or service's ROI story - Quantifies impact - Spots trends or themes no one else has access to |
Scientific Advisory | - Allows you to tap into deep subject matter expertise in behavioral, social, or technical sciences - Provides advisory and support in product innovation, marketing, and sales - Helps build brand credibility and recognition |
The key is finding the right balance across these strategies and securing the right expert partners based on your unique needs and objectives.
Exemplars
Several companies have successfully leveraged data to gain a competitive advantage. For example, Salesforce, the global CRM leader, regularly publishes its "State of Sales" report, which draws on data from thousands of sales professionals to provide insights into sales trends and best practices4. This has helped Salesforce establish itself as a thought leader and trusted advisor in the sales industry.
Another example is HubSpot, a leading inbound marketing and sales platform. HubSpot's annual "State of Marketing" report, which combines internal data with expert partner insights, has become a go-to resource for marketers seeking to understand the latest trends and benchmarks5. By leveraging their own data with external research, HubSpot has strengthened its position as an industry authority.
BetterUp, a leading technology provider of personal development tools and services, has invested heavily in data and research, building an internal Lab as well as partnering with top external researchers to study the impact of coaching on individual and organizational performance. BetterUp also has a high caliber scientific advisory board. The company's industry reports often combine internal data with expert research and have become a trusted resource for HR professionals and business leaders6. By grounding its offerings in rigorous research, BetterUp has established itself as a highly credible and innovative player in the industry.
In today's data-driven business landscape, companies that successfully leverage data and expert research stand to gain a significant competitive advantage. By ensuring data quality, partnering with trusted research firms, and finding the right balance between internal and external insights, organizations can build trust with customers, drive growth, and establish themselves as industry leaders. The power of data and expert research is not just a competitive advantage - it's a business imperative in order to earn market attention and trust in today’s noisy landscape.
References:
[1] McKinsey & Company. (2019). Five facts: How customer analytics boosts corporate performance. https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/five-facts-how-customer-analytics-boosts-corporate-performance
[2] Accenture. (2022). Data-driven companies outperform peers but only 39% of execs trust their data, Accenture Report finds. https://newsroom.accenture.com/news/data-driven-companies-outperform-peers-but-only-39-of-execs-trust-their-data-accenture-report-finds.htm
[3] Forrester. (2021). B2B buyers rely on expert content to make purchase decisions. https://www.forrester.com/report/b2b-buyers-rely-on-expert-content-to-make-purchase-decisions
[4] Salesforce. State of Sales. https://www.salesforce.com/resources/research-reports/state-of-sales/
[5] HubSpot. State of Marketing. https://www.hubspot.com/state-of-marketing
[6] BetterUp. https://www.betterup.com/resources
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