Research is essential to collect facts and statistics about a company’s customers, employees and competitors. On the basis of these numbers, companies are able to make better managerial decisions. The collected statistics are organized into reports and the management team uses them to take action. A good research mechanism is essential, irrespective of the size of the company and its client base. Research is imperative for staying competitive in the market.
As a marketing manager, by conducting business research, the organization ascertains what its customers want and then takes steps to prepare a product meeting those desires. Research also help me to determine whether a product is accepted in the market. Research aids expansion into new markets. The primary benefit to business research is that the organization is able to learn more about consumer choices and preferences. For examples, digital banking has become incredibly important channels for banks, as an increasing number of customers prefer using digital devices for conduct banking activities due to the simplicity and convenience. . In most developed markets, internet banking has reached near saturation levels and banks have been focusing more on mobile banking in recent years. Currently consumers more prefer online banking compare to queue up at branch for assistance. But certain group of customer still prefer virtual banking due to security concerns, many consumers do not prefer to engage in digital banking.
In this scenario, research provides information on the product features that lure customers and flaws in the product or services that contribute enhance customer’s banking experience. Research also contributes to banking sector clearly identify the customer demographics and target demographic, including age, gender, and educational levels. By conducting this researches, banks able to invest substantially in digital capabilities and aggressively improve the adoption and usage of lower-cost digital channels to deepen customer relationships. Research mitigates business risks and can help increase demand and organisational growth.
Besides that, as a manager I able to make knowledgeable decisions because of research. Research also helps to discover new things by gathering and looking out for what others around have done as it helps to learn from others and allows developing learning process. For example, many banks are paring down branches and reducing headcount in response to the increase in the digital banking transactions. Below the research conducted in 2017 to identify the adaption of internet banking and mobile banking in Malaysia. The findings as per below, Banking transactions were predominantly done through internet banking channel in Malaysia. During the past three years, the number of mobile banking users has risen 27% per year, and the number of internet banking users have increased at a stable rate of 13% (Figure 3). Apart from faster growth in the number of users, mobile banking has overtaken internet banking in 2016 in terms of transaction volume, as consumers increasingly prefer mobile devices. Mobile banking transaction volume expanded at a CAGR of 74% between 2013 and 2016, compared to 30% for internet banking. The value of internet banking went up by merely 3% per year during the same period of time, much slower than 38% for mobile banking.
Digital banking transactions accounted for 94% of CIMB’s total banking transactions in 2016. As CIMB product manager proudly can said that we are at the first stage in their five-year journey to enhance customer experience. The detailed researches key point to our successes. By conducting researches we able to understand current customer trends and preferences, our competitors and identify opportunities in the marketplace. Recently, our bank is planning to add functionalities to its chat-based mobile banking application, called CIMB EVA (enhanced virtual assistant). This two-way messaging application between customers and the bank was launched for customers to manage their daily banking transactions. In addition, the bank will make further investment in research data and processes to provide contextual banking services to fulfil the customers’ diverse needs. Research helps to test a hypothesis or theory by looking up on what others may say and statistic that are given can strengthen and weaken our hypothesis by the information that we have gathered.