Facebook, Google, Amazon…why are these among the most powerful companies in the world? One important, and undeniable, reason is because they understand consumer behavior. These top companies understand what drives their customers' decision-making, and they capitalize on that knowledge. What’s more is that they’ve done this by applying simple metrics and marketing frameworks such as segmentation, targeting, and positioning. Information that companies are already collecting - such as demographics, usage patterns, and monitoring what their customers like, what they search for, and what they purchase - can be put to even more work sooner rather than later.
Smallholders are our customers. Whether we are agrodealers selling inputs to smallholder farmers, buyers/processors sourcing products from smallholder farmers, financial service providers lending to smallholder farmers, or development practitioners, smallholders are crucial to our business models as valued clients. Understanding their behavior and what drives their decision-making has enormous potential in improving our businesses. Quality farmer-level data generate important insight that supports marketing and our overall businesses.
However, getting the right data at the right time, while fostering trust among value chain actors, can be complicated and the costs and considerations associated with data collection and analysis can be daunting. We need to recognize the need to invest in quality data rather than let its layers of complexity stop us from collecting it, analyzing it, and using it. Data doesn’t have to be complex. Basic metrics can be extremely valuable despite the numerous variables that need to be thought through for collecting it. The work needs to be put in, though - there is no silver bullet, no one metric, that will solve all marketing issues. There is no one data collection strategy that will work for every scenario. The practical challenges are the ones to focus on and solve.
Importantly- all the data collection, and later analysis, must all be done within our often razor-thin profit margins. Therefore, data must be robust yet low-cost. Check out the two webinars below, if you haven't already, to get tips about the value of data, what types of data to collect to support marketing, how to collect quality data, and how to use all of this data using the concepts of segmentation, targeting, and positioning.
Have more questions, thoughts, or ideas? Simply ask and post them below!
* Farmer-level data can also be used for social impact reporting, an integral part of working with any development donor working with private companies in smallholder markets. Check out this article for more on that!