Consumer behavior continues to change, and traditional market research (which usually relies on broad insights and outdated extrapolations) struggles to keep up. Joseph Rutakangwa, co-founder and CEO of Rwazi, a cutting-edge data intelligence platform, asserts that hyper-localized data—granular, real-time insights gathered from individual consumers—emerges as the solution to respond to the shifts in the global economy.
Rutakangwa encourages companies to utilize hyper-localized data because he has witnessed how it transformed businesses' access and use of consumer insights through Rwazi. Since its foundation, the firm has connected brands to real-time, zero-party data from millions of local consumers across more than 150 countries. With Rwazi's offerings, enterprises have understood and responded to shifts in consumer behavior accurately.
Firsthand experiences opened Rutakangwa's eyes to the shortcomings of traditional market research, prompting him to establish Rwazi with co-founder Eric Sewankambo. He observed that businesses have relied on conventional market research techniques (e.g., surveys, focus groups, panel interviews, etc.) to understand the preferences of consumers.
These methods typically involve acquiring second-party data through structured questionnaires and interviews that are usually conducted with a small sample size meant to represent an entire market. This approach has been undeniably useful in the past. However, as Rutakangwa stresses, it presents multiple flaws in the global economic landscape.
Conventional market research methods rely on extrapolation. "A company can interview 50 or 100 people through the phone and use that data to predict the behavior of millions. But that means assuming consumer preferences are stable over time, which is no longer the case," Rutakangwa states. He adds that, in reality, buying habits are changing at an unimaginable pace due to factors such as inflation, economic instability, and increased access to competing products.
"Brand loyalty defined consumer decision-making in the past. If a family used a particular toothpaste brand, they were likely to continue buying that for years, if not decades. That loyalty has weakened today," Rutakangwa supplies. Many consumers reevaluate their options every time they make a purchase, comparing prices, ingredients, and customer reviews before deciding. Because traditional research typically entails gathering data only once or twice a year, it misses shifts like these entirely. The market might've already changed by the time companies analyze their findings.
With hyper-localized data, the tables are turned. Firstly, it offers real-time, granular insights that reflect consumer behavior as it happens. Businesses can now track how specific demographics in certain locations are responding to products and services. Brands can, therefore, adjust their strategies precisely as they gain a better understanding of market dynamics.
Rutakangwa highlights that hyper-localized data also reveals hidden pockets of demand. He shares an example: "An insurance company can discover that although overall policy sales are declining, a specific segment, such as young professionals earning six-figure salaries, is still willing to invest in premium coverage."
Besides monitoring real-time consumer behavior and identifying niche market opportunities, businesses can adapt to market changes faster with hyper-localized data. What does this mean? They can identify shifts in buying patterns before their competitors. This provides them an advantage, as it allows them to refine their product offerings and marketing strategies based on consumers' actual preferences.
Rwazi stands out for helping companies access hyper-localized data to discern trends, assess demand, and improve their offerings in real time. One of the firm's clients, a multinational brand, attests to Rwazi's capabilities, saying: "Rwazi enabled us to activate customer insights in 27 cities within a week, providing a seamless experience, real-time dashboards, and top-quality outcomes."
The need for hyper-localized data will only grow as the global business landscape becomes more complex and competitive. Those that embrace it can anticipate trends, discover new opportunities, and initiate growth. Companies like Rwazi specializing in hyper-localized intelligence play a pivotal role in this space.
