Trends are everywhere. They are central to how businesses craft their product development, marketing, and social media strategies, and how consumers go about purchasing decisions.
Trends are sometimes driven by external factors (like a shortage of a certain product that creates a trend for something new), and other times trends are driven by internal consumer wants/needs (like plant-based dairy alternatives). Businesses that pay attention to and understand current/evolving trends (through trend analysis research) are able to use informed decision-making in their operations.
This article looks at different types of trend analysis, how to conduct it, and how to act on emerging trends to stay ahead of the competition.
Table of contents
- What is trend analysis?
- Importance of trend analysis in market research
- Types of trend analysis in research
- Advanced methods for trend analysis
- How to do trend analysis
- How to identify existing trends from your analysis
- How to use trends analysis for virtually any type of research
- Example of trend analysis in market research
- Advantages of trend analysis
- Use quantilope for automated trend analysis
What is trend analysis?
Trend analysis is the process of using historical data as well as current data sets to determine how consumers behave and how businesses react; the same is true of the inverse: how businesses behave and how consumers react. Trend analysis focuses on market trends over a period of time and can be used as an ongoing resource to keep ahead of market changes.
Whether it’s used in the short term or the long term, trend analysis can reveal changes in consumer needs as well as changes in industry activity. These aren’t always going to be huge, industry-wide trends; they can be smaller ones too - such as small fluctuations in consumer loyalty or satisfaction with a particular product, or downtrends and uptrends in certain product usage. Trends can also be temporary - around for a while and then gone in a flash, as is often the case with fashion or some hairstyles (unless they make a comeback...like flare jeans and bucket hats). Some trends might gain momentum slowly and grow steadily over time, like tech usage or certain diets.
Businesses use trend analysis findings to act on emerging trends as well as to predict future trends and plan new products or marketing activity accordingly.
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Importance of trend analysis in market research
Trend analysis research empowers businesses to unlock valuable insights across various facets of their operations and market landscape. By examining historical and current data patterns, companies can gain a deeper understanding of their own performance over time - be it financial metrics like revenue and profit margins, operational efficiency, or customer satisfaction trends.
Beyond internal usage, trend analysis research helps grasp the competitive landscape. By tracking rivals' performance and strategies, companies can identify opportunities to differentiate themselves and gain a competitive edge in their category. For instance, analyzing trends around competitive product launches or marketing strategies can point out what captures consumers' interest and what ends up being a 'miss' so that businesses can emulate or avoid those elements in their own initiatives.
Trend analysis is key to understanding consumers. By examining patterns in purchasing decisions, preferences, and engagement with various brands, businesses can tailor their offerings to meet evolving customer needs and desires. This could involve developing new products or services, refining marketing messages, or optimizing customer experience. Trend analysis might even point out technological advancements that could disrupt entire markets or industries. By staying ahead of these trends, businesses can proactively adapt their strategies and capitalize on new opportunities for growth and innovation.
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Types of trend analysis in research
There are various types of trend analysis available through market research. Below we’ll touch on a few of the most popular types that can guide businesses’ decision making for different needs.
Consumer trend analysis
This type of trend analysis relates to how consumers behave, think, and purchase within a certain sphere or market landscape. It could uncover consideration and usage of a product or service, consumer behavior in a specific product category, consumers’ social media usage, or how consumers feel about political, social, or environmental issues.
Information gathered from consumer trend analysis helps businesses leverage those consumer preferences in their current business operations and identify new growth opportunities.
Competitor trend analysis
Knowing where competitors are winning and losing is crucial information to feed into business decisions. Analyzing how competitors have performed at certain points in time, such as the launch of new products or advertising campaigns, reveals how positively the target market reacts to those types of business activities.
This type of trend analysis helps identify strategies that will encourage consumers to choose your business over competitors, as well as to find new opportunities where competitors are weak.
Historical trend analysis
Looking at past data points and tracking how consumer attitudes, consumer behaviors, or industry activities have changed in relation can provide valuable context for future events. Say for example you sell beauty products and you’ve seen the popularity of vitamins in body cream grow over the past two years; this is a good indication that the trend will continue, which will help shape new product development and future marketing messages.
Temporal trend analysis
Temporal trend analysis looks at a specific period of time to see how consumer trends have changed in that time frame alone. You could take one or more periods of time and compare them, or even analyze based on seasonality (e.g. summer, the holiday season).
This type of trend analysis helps identify trends at a set time which can be helpful when planning inventory stock, pricing strategies, or product promotions for similar time periods in the future.
Geographic trend analysis
Geographic trend analysis looks at changes within geographical locations and compares them with each other. For example, how have skincare preferences evolved in Asia, and how does this compare with preferences in North America? Trends in one region could give clues as to how trends will develop in another - especially today with global social media platforms like Instagram and TikTok that can spread geographical trends in record speed.
This type of trend analysis is useful for international businesses looking to shape their offer in each location they operate in.
Demographic trend analysis
Knowing your target market is essential to running a successful business. You need to keep tabs on what your consumers want and need, and how those differ based on factors like age, gender, region, etc. Older consumers may have different dietary needs than younger ones; the same goes for cosmetics, footwear, haircare, technology, and so on.
This type of trend analysis is great for understanding how a particular demographic group has changed over time so brands can appeal to that audience with the right communication and product portfolios.
Economic trend analysis
Inflation and the general cost of living are examples of economic trends that give businesses a good idea of current consumer buying power and their likely willingness to spend. Economic trended data sets are typically available publicly, along with a company’s own internal financial statements.
This type of data is helpful to reference when setting new price points or making upcoming production decisions.
Technological trend analysis
Technology is continuously evolving, and there’s no doubt it will continue to do so. In recent years alone it seems to be evolving faster than ever with things like self-driving cars, virtual reality, and the rise of AI.
Technological trend analysis empowers organizations to make informed decisions and gain a competitive advantage. Businesses can use technology trends to operate more efficiently, foster new innovations, and to understand consumer expectations better.
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Advanced methods for trend analysis
Trends are constantly shifting which can be a challenge for businesses to stay ahead. Those that want to act on (rather than react to) consumer or marketplace trends use advanced methodologies to go beyond standard usage and attitude metrics. Advanced methods provide deeper insights around why trends emerge, which are likely to endure, and how businesses can act on them for future success.
Below are a few examples of advanced methods used for trend analysis - all of which are available on quantilope's Consumer Intelligence Platform:
MaxDiff (Maximum Difference Scaling):
Pinpoint the most impactful features or aspects driving a specific trend with MaxDiff. Is it sustainability, convenience, or design that's impacting the way consumers feel currently (and over time)?
TURF (Total Unduplicated Reach and Frequency):
When multiple trends emerge (say a change in feature preferences, marketing message relevancy, etc.) it can be hard to pinpoint which trends to focus the most attention on. TURF analysis helps businesses determine the optimal combination of elements to maximize your reach. Which trends, when paired together, create the most compelling offering for your target audience?
Choice-Based Conjoint analysis:
Quantify the value consumers place on emerging trends relative to existing product attributes. Is the trend worth investing in? How much are consumers willing to pay for products or services that align with that trend (e.g. sustainability, minimalism, personalization, etc.)
Price Sensitivity Meter (PSM):
Understand how much consumers are willing to pay for products or services related to a new or existing trend. Does the trend come with a premium price, or is it rather price-sensitive?
Implicit Association Tests (SIAT and MIAT):
Uncover subconscious connections between consumers and emerging trends. Are there hidden emotional drivers influencing the trend's popularity? What intrinsic associations arise related to the trend in question?
The above advanced methods just touch the surface of what businesses have at their disposal when it comes to leveraging these tools to explore trends. For more on this, check out quantilope's guide on the Importance of Advanced Methodologies in Consumer Research.
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How to do trend analysis
Below are a few simple steps to getting started with your trend analysis research study:
1. Define your goals
Market trend analysis requires a clear starting point and a clear end point. In other words, what do you know already and what do you hope to find out? The latter will determine your end goal(s).
Your goals will guide your trend analysis throughout each stage - from initial survey setup to final analysis. When you start looking through your data set, your end research goal will help you focus on the trends that actually impact your business.
2. Invest in regular trends analysis
Identifying trends doesn’t happen overnight. Trends appear over continuous timeframes - known as ‘waves’ in trend research. You need to collect data on an ongoing basis to find those trends, and the best way of doing so is setting up a consistent research tracker.
Monthly, quarterly, twice-yearly, or annual tracking surveys are some of the most commonly-used cadences to identify trends over time. The frequency of your tracker will depend on how dynamic your industry is; CPG product preferences can change all the time whereas something like home/car insurance may be less wavering.
3. Find an easy-to-use survey tool
An intuitive survey tool - like an online research platform, can speed up your data analysis process to act on insights faster. Easy-to-use survey tools offer things like research expert consultation, drag & drop modules, automated advanced methods, real-time reporting, and easily designed dashboard reports that can be shared around without the risk of version control.
4. Identify your sample
For quality data, you need to find the right people and ask the right questions. This means launching a survey among respondents who accurately reflect your target audience and asking questions that relate to your previously-defined goals; the right survey tool will make sure you can achieve both of these by offering things like survey templates and panel agnostic capabilities.
5. Field and analyze your data
Data analysis will highlight trends that arise from consumer behavior, competitive behavior, or general industry behavior. A good data analysis platform will allow you to review results in real-time, as respondents complete your survey - rather than having to wait until the end of fieldwork for a data processing team to send over a final cross-tab file.
As you review your data, you can cut metrics by different parameters and demographics to understand various trend perspectives. Your final data will go into a dashboard or report to share with stakeholders for next steps.
6. Act on your findings
Once you’ve analyzed and reported on your trended data findings, it’s time to take action. This might mean immediate action, like putting a new product into market, or waiting for another wave of data to confirm a suspected trend. Regardless, the insights you’ve gained from your trend analysis can feed into future business decision-making to stay ‘on trend’ and ahead of competitors.
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How to identify existing trends from your analysis
Uncovering trends in your data is a critical step to understand the dynamics of your market, category, or brand. Whether you're starting a new trend analysis study or tracking the evolution of established patterns from an existing tracker, trended insights are invaluable in shaping your strategic decision-making.
The first few waves of your trended insights study are exciting; with these results, focus on identifying emerging trends (i.e. shifts in your data) that hint at changing consumer behavior, preferences, or market forces. Recognizing these early signals can give you a competitive advantage, allowing you to adapt and innovate ahead of the curve. Once you have several waves of trended insights available, your goal might be to delve deeper into the trends you've earlier identified.
Regardless of where you are in your trend analysis, below are a few key considerations to keep in mind:
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Look for patterns: Scrutinize your captured data for recurring patterns. These could be increases or decreases in anything from sales figures, customer demographics, or customer preferences - just to name a few examples. Identifying these general patterns will serve as a starting point for deeper analysis.
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Isolate anomalies: Don't dismiss data points that seem unusual or unexpected. These anomalies could be early indicators of emerging trends. Keep an eye on these data points to investigate further once you have new data available to see if it might become a long-term trend.
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Compare with benchmarks: Compare any new data with industry benchmarks or historical data. This will help you determine whether any observed patterns are unique to your business or part of a wider industry trend.
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Visualize your data: Sometimes the easiest way to identify patterns and shifts is through chart visualizations rather than staring solely at the numbers. Create graphs, charts, or other visual representations of your data to see trends more clearly and even make them easier to communicate/share with others.
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Consult with others: Seek input from other team members or research consultants (if applicable). Other viewpoints may be able to identify trends you didn't see or add new context to see things from a different angle.
By keeping the above steps in mind, you can effectively identify new and existing trends from your analysis and use this information to make informed business decisions.
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How to use trends analysis for virtually any type of research
Trend analysis can be used to uncover almost any trends. Above we’ve already mentioned the benefits in exploring trends amongst consumers, competitors, and demographics, along with using trend analysis to uncover geographic, economic, and technological changes.
Other use cases of trend analysis include:
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Customer satisfaction. Understanding satisfaction levels with regards to a product or service, and how this relates to a brand’s activity or competitor performance. Part of this measurement might be tracking a brand’s NPS score over time.
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Employee satisfaction. Identifying how employee turnover or loyalty relates to the company ethos or other factors.
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Customer spend. Tracking how different customer types allocate budget to a product over time reveals trends in disposable cash levels as well as their willingness to spend. This feeds into determining new product price points and planning new product offers.
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Financial fluctuations and forecasts. Pinpointing where sales have peaked or dipped, and whether there has been an upward trend or downward trend since then, provides crucial information on when businesses should explore new opportunities. It also helps predict how business activity will shape future growth.
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The customer experience. Part of understanding your target audience means appreciating how their experience of your brand correlates to prevailing trends. This is separate from overall satisfaction; a customer might be satisfied with the end product or service but not the process in finding or purchasing it.
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Examples of trend analysis in market research
Companies can use trend analysis to inform their spend, product development, advertising, and just about all other areas of business operations.
Below are three examples of trend analysis findings from various quantilope syndicated studies.
DTC Mattress Trends
quantilope runs an annual direct-to-consumer mattress tracker that identifies trends around in-store vs. online mattress purchasing, direct-to-consumer mattress buying, the popularity of certain mattress brands, and so on. Over the past few years, consumers’ shopping experiences (in general) have shifted heavily online - and this tracker showed that mattresses were no exception.
Between 2019 and 2020 onward, the study showed a significant upward trend in online mattress purchasing.
The study also shows trends in mattress brand advertising, consideration, usage, and brand preference as benchmarks for brands to maintain or act on. For more on this trend analysis research, check out the study's blog post here.
Soda Trends
quantilope's quarterly Better Brand Health Tracking (BBHT) study in the soda category tracks metrics around 10 major soda brands. Aside from standard brand funnel metrics like awareness and usage, the BBHT model leverages Category Entry Points (CEPs), Mental Availability Metrics, and Mental Advantage analysis to provide modernized, actionable insights at both the category and brand level.
Recently, the study has pointed to seasonal trends around soda - particularly diet varieties. In the warmer months of the year, trends for diet sodas like Diet Coke and Diet Pepsi significantly rise. As of wave 5 (April '24), Diet Coke's Mental Market Share (MMS - one of four major Mental Availability metrics) was the highest it's been since the start of tracking a year ago (9%).
With the simultaneous, statistically-significant rise in Diet Pepsi's MMS (7%), this is trend that soda brands should watch over time to plan for future seasonal campaigns, inventory needs, and more.
To explore more of this study's data, check out the BBHT soda blog post here.
Consumer Trends
quantilope's Consumer NOW Index study ran for two years - from July 2020 to June 2022. Over that time, the study tracked trends around overall consumer well-being, shopping behaviors, social media platforms, consumers' finances, travel insights, food trends, and work environments.
The study's chart visualizations clearly show where there were changes in trends over time - providing an understanding of the general market and consumer sentiment. As one example, the below chart shows that TikTok usage significantly increased between July '21 and the most recent wave of the study about a year later. The same can't be said for any other platform.
As another example from this study, we can see the change in consumer trends over time on where they choose to stay when booking travel:
Although the CNI study is no longer running additional waves, get in touch using the form below to learn more about trend studies such as this.
Advantages of trend analysis
Trend analysis empowers businesses to make informed decisions, stay ahead of the curve, and thrive in a competitive landscape. Below are just a few key advantages of running this type of research.
Proactive decision making:
Trend analysis helps you spot emerging trends before they become mainstream, giving you a head start in adapting your strategies. By understanding the underlying drivers of trends, you can make better decisions about new product development, marketing, and resource allocation.
Competitive advantage:
Staying ahead of trends allows you to offer innovative products and services that set you apart from competitors. By anticipating shifts in consumer preferences, you can position yourself as a trendsetter (rather than a follower) and gain a competitive edge in your market.
Risk mitigation:
Trend analysis helps you identify potential risks, such as declining demand for certain products or shifting consumer attitudes. By understanding changing trends, you can proactively adapt your business strategies to mitigate risks and avoid obsolescence.
Improved resource allocation:
Trend analysis guides you in allocating resources effectively, ensuring that your investments align with emerging opportunities. By focusing on trends with the highest potential, you can avoid wasting resources on products or services that are losing relevance.
Enhanced marketing and sales:
Understanding trends enables you to create highly targeted marketing campaigns that resonate with your target audience. By aligning your products and services with emerging trends, you can attract new customers and drive sales growth.
Innovation and growth:
Trend analysis can inspire new product ideas and innovations that cater to evolving consumer needs. Identifying emerging markets or opportunities for growth can help your business expand into new areas.
Customer satisfaction and loyalty:
By understanding and responding to trends, you demonstrate your commitment to meeting customer needs and staying relevant. Providing products and services that align with current trends fosters customer satisfaction and loyalty over time.Use quantilope for automated trend analysis
quantilope offers intuitive and affordable trend analysis through its tracking solutions.
Choose between a category tracker or quantilope’s new Better brand Health Tracking approach that uses industry-praised concepts such as Category Entry Points and Mental Availability. Either way, quantilope users will start with the option to customize a pre-built survey template or build their own tracking study from scratch. Building your tracker is made easy through a library of pre-programmed questions and advanced methodologies that you simply drag & drop into your survey builder. The platform even offers an AI co-pilot, quinn, to assist you in your survey creation, analysis, and reporting processes.
Findings are available in real-time, with the option to start building report charts long before fieldwork wraps up. Once it does, all charts are automatically updated with final data and statistical testing. Cut the data any way you like, by any other variable within your trend analysis survey. Store all final charts in the reporting tab of the platform to use in a final dashboard deliverable, which is shareable with stakeholders through a single link.
Subsequent waves of your trend data research can be set live on the platform with a few clicks of a button, as often as you choose. Trended data is automatically added to existing charts in real-time, so you never have to go back to square one.
For more on how quantilope can help your business ahead of trends (and the competition), get in touch below!
