Data Collection Methods and Primary Data Sources
Data Collection Methods and Primary Data Sources
Data is a collection of facts, figures, objects, symbols, and events gathered from
different sources. Organizations collect data to make better decisions. Without
data, it would be difficult for organizations to make appropriate decisions, and so
data is collected at various points in time from different audiences.
For instance, before launching a new product, an organization needs to collect data
on product demand, customer preferences, competitors, etc. In case data is not
collected beforehand, the organization’s newly launched product may lead to
failure for many reasons, such as less demand and inability to meet customer
needs.
Although data is a valuable asset for every organization, it does not serve any
purpose until analyzed or processed to get the desired results.
You can categorize data collection methods into primary methods of data
collection and secondary methods of data collection.
Primary Data Collection Methods
Primary data is collected from the first-hand experience and is not used in the past.
The data gathered by primary data collection methods are specific to the research’s
motive and highly accurate.
Primary data collection methods can be divided into two categories: quantitative
methods and qualitative methods.
Quantitative Methods:
Quantitative techniques for market research and demand forecasting usually make
use of statistical tools. In these techniques, demand is forecast based on historical
data. These methods of primary data collection are generally used to make long-
term forecasts. Statistical methods are highly reliable as the element of subjectivity
is minimum in these methods.
Time Series Analysis
The term time series refers to a sequential order of values of a variable, known as a
trend, at equal time intervals. Using patterns, an organization can predict the
demand for its products and services for the projected time.
Smoothing Techniques
In cases where the time series lacks significant trends, smoothing techniques can
be used. They eliminate a random variation from the historical demand. It helps in
identifying patterns and demand levels to estimate future demand. The most
common methods used in smoothing demand forecasting techniques are the simple
moving average method and the weighted moving average method.
Barometric Method
Also known as the leading indicators approach, researchers use this method to
speculate future trends based on current developments. When the past events are
considered to predict future events, they act as leading indicators.
Qualitative Methods:
Qualitative methods are especially useful in situations when historical data is not
available. Or there is no need of numbers or mathematical calculations. Qualitative
research is closely associated with words, sounds, feeling, emotions, colors, and
other elements that are non-quantifiable. These techniques are based on
experience, judgment, intuition, conjecture, emotion, etc.
Quantitative methods do not provide the motive behind participants’ responses,
often don’t reach underrepresented populations, and span long periods to collect
the data. Hence, it is best to combine quantitative methods with qualitative
methods.
Surveys
Surveys are used to collect data from the target audience and gather insights into
their preferences, opinions, choices, and feedback related to their products and
services. Most survey software often a wide range of question types to select.
You can also use a ready-made survey template to save on time and effort. Online
surveys can be customized as per the business’s brand by changing the theme,
logo, etc. They can be distributed through several distribution channels such as
email, website, offline app, QR code, social media, etc. Depending on the type and
source of your audience, you can select the channel.
Once the data is collected, survey software can generate various reports and run
analytics algorithms to discover hidden insights. A survey dashboard can give you
the statistics related to response rate, completion rate, filters based on
demographics, export and sharing options, etc. You can maximize the effort spent
on online data collection by integrating survey builder with third-party apps.
Polls
Polls comprise of one single or multiple choice question. When it is required to
have a quick pulse of the audience’s sentiments, you can go for polls. Because they
are short in length, it is easier to get responses from the people.
Similar to surveys, online polls, too, can be embedded into various platforms. Once
the respondents answer the question, they can also be shown how they stand
compared to others’ responses.
Interviews
In this method, the interviewer asks questions either face-to-face or through
telephone to the respondents. In face-to-face interviews, the interviewer asks a
series of questions to the interviewee in person and notes down responses. In case
it is not feasible to meet the person, the interviewer can go for a telephonic
interview. This form of data collection is suitable when there are only a few
respondents. It is too time-consuming and tedious to repeat the same process if
there are many participants.
Delphi Technique
In this method, market experts are provided with the estimates and assumptions of
forecasts made by other experts in the industry. Experts may reconsider and revise
their estimates and assumptions based on the information provided by other
experts. The consensus of all experts on demand forecasts constitutes the final
demand forecast.
Focus Groups
In a focus group, a small group of people, around 8-10 members, discuss the
common areas of the problem. Each individual provides his insights on the issue
concerned. A moderator regulates the discussion among the group members. At the
end of the discussion, the group reaches a consensus.
Questionnaire
A questionnaire is a printed set of questions, either open-ended or closed-ended.
The respondents are required to answer based on their knowledge and experience
with the issue concerned. The questionnaire is a part of the survey, whereas the
questionnaire’s end-goal may or may not be a survey.
Secondary Data Collection Methods
Secondary data is the data that has been used in the past. The researcher can
obtain data from the sources, both internal and external, to the organization.
Internal sources of secondary data:
Organization’s health and safety records
Mission and vision statements
Financial Statements
Magazines
Sales Report
CRM Software
Executive summaries
External sources of secondary data:
Government reports
Press releases
Business journals
Libraries
Internet
The secondary data collection methods, too, can involve both quantitative and
qualitative techniques. Secondary data is easily available and hence, less time-
consuming and expensive as compared to the primary data. However, with the
secondary data collection methods, the authenticity of the data gathered cannot be
verified.
Primary Data Sources