Why Don’t B2B Companies Use Qualitative Research?

Qualitative Studies Lead to Insights, and Innovative Results

Open-ended Questions Are Powerful

Qualitative research is an effective way to understand your market better. Consumer product companies spend a great deal of time and money doing qualitative, essentially, talking to consumers. They often use the focus group method, but also do one-on-one interviews, and observational research or ethnographic studies. It’s an integral part of their innovation process.

The findings, the derived insights, can be profound. It’s the perfect start to an innovation process.

B2B companies do qualitative much less frequently. They’re missing the boat — qualitative is arguably more effective in B2B markets.

Qualitative research is often misunderstood, that might explain why B2B hasn’t embraced it widely. Weirdly, in spite of repeated successes over many years, even at those very sophisticated consumer product companies, you often get push back on doing qualitative research. People ask “how can you infer what just a few people said to the broader market?” Or as Henry Ford once said “customers will tell you they want a faster horse.”

The short answer is you discover big things, fundamental things, like bedrock beliefs and underlying feelings. Or whole new market opportunities that have been overlooked. These insights can make a big difference. You’ll never get those insights from a closed-ended survey.

That touchy-feely emotional stuff can be made more real by following up qualitative with quantitative (survey) research that is statistically valid. Yes, you can do both.

As someone who spent a big part of my career selling and marketing services to manufacturers and other B2B (Business to Business) companies, I have a lot of empathy for their business challenges. In my work today in innovation consulting and training, I see them struggle to grow — either beyond their niches, or to gain market share within their niches. They hold back on taking risks. Then I see them fail, or get eclipsed by more innovative competitors. It’s heart breaking.

Why they don’t do more qualitative research?

They should, because they would learn things from their customers — insights — that would translate to bottom line dollars. In some cases, very quickly, and with predictable risk. One reason manufacturers don’t do much qualitative is simply because they’ve never been exposed to it, or, because they don’t understand it.

Here’s some exposure, let me tell you a true story.

ACME Manufacturing Does Qualitative

I did a qualitative study for a specialty manufacturer last year (2018). I can’t get into detail due to confidentiality, but I assure you, this is not a made up story. “ACME” didn’t have a ton of money to spend, but, I conducted six phone interviews, using an interview guide we built together, with their customers. When it was done I analyzed the data and wrote up my findings.

By the way, this ACME study would be considered a small potato’s project in the consumer product world. This is one reason why qualitative consultants shy away from B2B work. It’s too small for the firms that specialize in this. The other reason they avoid B2B projects they don’t know much about manufacturing or technical B2B products and services. It’s pretty easy to learn about a new brand of potato chips, less so a new hydraulic system. Finally, doing an in-person focus group of 6 to 10 people is nearly impossible to recruit in B2B.

The report GFi (Gregg Fraley Innovation) provided to ACME contained insights that were helpful to their branding and marketing, which was the original goal. Much of it confirmed things they suspected. They also learned helpful nuances that will improve their sales efforts. Good stuff.

However, they learned something completely unexpected: that their technology could be used, and would be nearly perfect for, a large market they’d never even thought about. They were simply unaware that there was a need for their products in this other market space.

This big insight was discovered by asking open ended questions in a partly structured, partly free-ranging interview. Because the interview was done by an outsider, I could ask the dumb questions, listen without emotion to critique, and record the answers. The big insight occurred when I asked, “What else might ACME do?” The respondent had just left a job in this other market area and he said, “you know, their products would work well in the QRST industry.” I put that remark in the report, and, was delighted to learn it was a finding that could make a big difference for ACME.

Talk about low hanging fruit!

Since the study, ACME has been learning about, and selling into, that new market area. A side benefit: as they sell and grow in that new space they’ll insulate themselves from having customers primarily in one industry. So, not only are they growing, they are going to be less subject to industry-specific cyclical downturns.

Is this the kind of innovation you could get used to?

This kind of result is harder to achieve in consumer products because the competition is so stiff . They have to spend a great deal of money and time to discover something fundamental. That’s why I say that qualitative research is, arguably, more effective in B2B markets.

So, B2B folks, consider using qualitative research. You might learn something that could lead to breakthrough results.

If your B2B company is feeling stuck in a rut, maybe it’s time you questioned the market assumptions and have a qualitative researcher ask your customers a few dumb questions.

Call GFi.