Cutting Edge Information finds that more than 40% of market research teams turn to softer metrics, such as accuracy of predictions, to demonstrate ROI.
Top-Performing Market Research Teams Evaluate the Accuracy of Their Previous Predictions to Showcase Their Value
<0> Cutting Edge InformationElio Evangelista, 919-403-6583 </0>
To justify the costs of expensive market research studies, pharmaceutical market research teams must show their worth to overcome their often small budgets. While 50% of pharmaceutical companies’ market research teams do not track return-on-investment (ROI), a significant percentage leverages this measurement to justify expenses and win resources, according to a new study by Cutting Edge Information.
Some market research teams use their percentage of accurate forecasts to demonstrate ROI. Because demonstrating in financial terms can be difficult, 42% of surveyed companies use softer metrics, including evaluations of previous work, to account for their successes. Small and large pharma companies use softer metrics to show ROI at 44% and 43% of surveyed companies, respectively. Only one-third of surveyed large affiliate organizations used soft ROI metrics.
Cutting Edge Information’s recent study, “Pharmaceutical Market Research Groups: Creating Knowledge for Better Brand Decisions,” found successful market research teams allocate time to review their previous findings and predictions. Market research teams use this information to improve their future work by making adjustments based on their performance.
“By verifying that the forecasts and predictions made by market research represent a fairly accurate picture of the future, teams can justify research costs,” said Jeremy Spivey, senior research analyst at Cutting Edge Information. “If a company is confident in the market research team’s findings, it is more likely to approve the studies’ cost. The costs of bad decisions, especially during a critical time, such as a , are very high.”
“Pharmaceutical Market Research Groups: Creating Knowledge for Better Brand Decisions,” can be found at . The report explores market research teams’ positions and roles in today’s pharmaceutical and medical device companies. This study is designed to help market research teams:
For more information about market research teams and , contact Elio Evangelista at 919-403-6583.