Recently, I had a discussion with my colleague Andrew McInnes about the role market insights (MI) can play for customer experience departments, and why so many customer experience (CX) teams are doing research themselves instead of collaborating with their MI counterparts. In this talk we came up with the term “shadow MI.”
Shadow MI: research commissioned or executed OUTSIDE of the MI department. It applies to all research done by a person or group inside the company without the approval or involvement of market insights.
Shadow MI is not good for the company or MI stakeholders. Key risks in shadow MI include:
Fragmented knowledge. Distributed research and insights can undermine the organization’s knowledgebase and understanding of customers, competitors, and markets.
Bad business decisions. Improper research techniques (sampling, surveys, fielding, analysis) can lead to the wrong conclusions and the wrong decisions.
Subpar solutions. Lack of robust data cross-analysis and comparison can result in blind spots and missing aspects of an optimal solution.
Higher costs. Individually negotiated purchases can undermine scale-related discounts.