What is a strategic insights project and when does it make sense to commission one? (with real examples)
This article details what a strategic insights project is, gives real examples of cases when such projects help businesses to make better decisions, and looks at other factors such as what you should expect to pay.
- What is strategic insights and what are the benefits?
- Real examples of cases where a strategic insights program will drive value
- What does good practice look like?
- Pricing
- Conclusion
What is strategic insights and what are the benefits?
Strategic insights are one-off programs of deep research which provide a clearer picture of market trends, customer or competitor behaviour, or internal capabilities (usually product or service). Such projects help a business make more informed decisions, ultimately to drive revenue.
Often, these projects are in response to a specific problem or issue, or in order to scope a move or pivot in a new direction. For some real examples, see below.
When we say ‘deep research’ this means gathering data from sources which are not immediately ‘out there’ in the public domain, rather than just Googling around or doing secondary research alone. This is why strategic insights projects usually involve interviews with knowledge-holders, whether that’s potential customers, market experts or other sources. This proprietary data is gathered, analysed for patterns, then synthesised into agreed deliverables.
A good provider should conduct high quality and original research, then make some clear and actionable recommendations to their clients, backed by the data they’ve gathered.
Such projects should always be entirely bespoke to a client and their specific needs.
Real examples of cases where a strategic insights project will drive value
Ultimately, a strategic insights project is intended to arm businesses with the information they need to make better decisions and increase revenue. Here are some common, real-life examples of where such programs of work can deliver huge value:
- “I’m not sure how competitive our offering really is. I want to benchmark our product or service against real customer needs. “
- “The business is looking to move into a new segment (e.g. Mid-market to enterprise), vertical (e.g. from retail into manufacturing) or territory. I want to better understand these new buyers’ needs, as well as potential routes to market.”
- “I’m targeting a new type of buyer, OR I have a low win-rate with a specific persona. Why is this, and what would these buyers need to see in order for me to win more or be successful in this market?”
- “I’m unsure of current market trends in X area, and have heard a lot about Y offerings. Is this really the direction the market is moving in? What are customer expectations? What is the uptake of Y offerings and why?”
- “I have a competitor that is costing us deals. I need to understand more about their GTM strategy, product and intentions.”
- “I don’t think our pricing and packaging is helping win-rates or giving us many opportunities for cross/ upselling. How can I optimize this to drive revenue?”
- “I’m looking for areas of whitespace to expand into, which are not currently well-served by competitors (this could be in terms of product features than serve unmet buyer needs, or types of buyer that have not yet been considered).”
- “What is the TAM for my product? There’s not much data publicly available on this.”
What does good practice look like?
Discovery
Potential providers should first and foremost seek to understand their client’s needs, blindspots or problems, and desired outcomes in detail. It’s therefore a good sign if a provider offer internal discovery sessions, which can sometimes be used to scope the program of work.
Definition
After such discovery work, it’s usually beneficial to come up with a clearly defined set of questions which the research will seek to answer. This is so both the client and consultant know what the program is going to deliver.
Proposals & Pricing
Proposals should be delivered promptly and professionally. These should state the background to the project (so the client can see the consultant has listened and understood), questions to be answered and expected deliverables. Turnaround times with milestones and dates for interim and final deliverables should also be included for transparency.
The proposal should also contain a detailed breakdown of pricing – days or hours required to complete each component of the work, additional costs such as for incentives or third party time such as panel providers if relevant. It should be very clear to the client exactly what they’ll pay in total, and what they’re paying for.
Regular check-ins
Regular progress check-ins are essential during programs of more than a couple of weeks’ length. This is so the client can be assured that all is going well and the work is heading in the right direction, as well as to have the opportunity to ask further clarification questions or ask for slight pivots and refinements where needed.
Pricing
Pricing for this kind of work varies massively. Of course, if you’re a consulting giant like Deloitte or BCG prices will be on the higher end. Smaller, more niche or mid-size consulting houses will price differently.
Clearsighted does regularly benchmark its prices against similar, comparable firms. While it’s tricky to give definitive market rates, our understanding is that currently, if you want to commission a smaller but experienced, tried-and-tested provider, it will cost you somewhere between £900 – £1,700 a day. Many providers (and Clearsighted is one) offer different rates for startups and scale-ups versus established billion-dollar firms.
A good provider will always make it crystal clear what you’re paying for, as well as the turnaround times you should expect.
Conclusion
Most medium-sized businesses will probably have a need for a strategic insights project at some point. Indeed, the need for such projects often arises at times of opportunity or untapped potential, or where the business is experiencing challenges such as increased competition or difficulty differentiating.
The cost of a well-defined, one-off project of work can be minimal compared to the benefits delivered to long term growth.
