This post is going to be a bit more technical than usual, we are going to talk about the data research collection methods and more about the difference between primary and secondary source data.
The difference between Primary And Secondary Data
If you have ever seen really poor stats and think “this can’t be right” its likely to have been secondary data. This is data that can be produced from comparing one set of “irrelevant data” across into a modern concept. For example if I believed the earth was flat, I could use today’s technology to help my hypothesis. Anyway, the video below can describe it a lot better than I can for you! Let me know what you think of the video, I really like these guys on Youtube too, so go and subscribe and like this video as well!
Using A Business Example
If we take a business I am heavily involved in (the blue chip car hire company) we can see how they use primary and secondary data. I really love how they implement this into their marketing and pricing too.
At first they didn’t do any data collection or research at all, which is part of the reason why they brought me in, so this is what we implemented. And its pretty much split between secondary and primary data.
We wanted to get an idea of what people THOUGHT it would cost to hire a supercar for a day and a weekend. This is for anyone. So for example people who couldn’t afford it, people who didn’t ever have the need to do it, as well as individuals who might purchase on in the future. This was purely research and it cost us about £500 to get £500 responses, which is pretty cheap when it comes to market research and data collection. We found that people thought it was in fact cheaper than the prices we had, which is pretty much what we expected would happen.
We asked customers who had already seen prices what they thought it had been worth. This is people that already paid for thc car. And suprising they said they would have paid more for the ease of service. Now this is stone cold awesome primary data because these are customers giving a.) Reviews – Positive most of the time and b.) Feedback about the business, which allows us to integrate different pricing models during busy periods of time.