Today’s foodservice industry is more dynamic than ever, with new technology, rising competition and ever-changing consumer preferences drastically altering the market. While traditional research methods have some limited usefulness, the need for more sophisticated insights and analytics is manifesting itself across all levels of the foodservice industry.
To help gain a better understanding of foodservice data trends, companies are turning to utilize food consumer insights data. But just what do the spokes of the data wheel offer? What’s the benefit in terms of democratizing market access? To answer these questions and more, let’s review the pros and cons of using food consumer insights data for your business.
Pros of Food Consumer Insights Data
The benefits of utilizing food consumer insights data are plentiful. For starters, data allows companies to better target potential customers in tandem with geotargeting campaigns, tailoring marketing messages to these audiences. It also gives businesses a better understanding of customers, so they can craft menus or adjust pricing as needed.
Food consumer insights data can also aid in complying with government regulations and staying in compliance. With the right data, businesses can be more equipped to apply for grants or conduct market research with government agencies.
Finally, food consumer insights data can also be used to gain a better understanding of the competitive landscape. Businesses can monitor their competitors’ pricing and offerings, leading to cost savings and identifying unattended market opportunities that could have long-term benefits.
Cons of Food Consumer Insights Data
While food consumer insights data certainly has its advantages, there are a few drawbacks that should not be overlooked. One of the major drawbacks of this data is the cost to acquire it. This data is not just a one-time purchase; it requires a constant investment and needs to be regularly updated for currency sake.
In addition, food consumer insights data is highly subject to human error, as the accuracy of the data is dependent on the sources of the data and the quality of the surveys being conducted. It also requires a certain level of expertise to be able to interpret the data correctly and to recognize false patterns.
Finally, using food consumer insights data for one-off projects such as analyzing the profitability of specific menu items might not be worth the cost, as this kind of data is best used for long-term projects such as achieving market growth.
Food consumer insights data is a valuable tool that can be used to gain a more thorough understanding of the market. With the right data, businesses can better craft targeted campaigns, comply with local regulations and gain an advantage over their competitors. However, there are also drawbacks to this data, so it’s important to weigh the pros and cons before making the decision for your business.