Transform Research into Revenue
Facing growing pressure to innovate better, more and more C-level executives are scrutinizing their consumer research investments and asking some really tough questions:
- “Do consumer insights play any direct role in driving innovation revenue?”
- “Do some consumer research tools impact revenue more than others?”
- “Should we be increasing – or decreasing – investment in consumer insights?”
To help answer these questions, Nielsen recently conducted a series of studies to examine the impact of research spend on innovation revenue. The results of those studies showed that, on average, the use of evolutionary optimization identified concepts that yielded $13 million more in forecasted revenue than concepts selected using other methods.
In other words, brands that do not use evolutionary algorithms to optimize their concepts sacrifice roughly one-third of their potential revenue.
ROI by Launch Size
Even for smaller to medium sized launches, the expected revenue improvement and return on investment payback for optimization can be huge.