What is Trend Analysis?

Trend analysis allows you to predict what's going to

happen, based on what’s already happened.

It provides businesses with information

regarding marketing and sales performance, product
development, spending, and more. Enabling businesses
to make data-driven decisions with regard to future
events.

For example… retailers can use consumer trend

analysis to find patterns in revenue and drops in
sales of particular products for specific demographics
and locations.

If your business is only monitoring current trends,

there’s a danger that decisions will be based on what’s
popular now. This is not sustainable. Consumer
behavior and perceptions can change in the blink of an
eye.

In marketing, for instance, analyzing emerging trends

ensures that your content strategy will evolve and
continue to attract your target audience. With regard to
product development, you’ll be able to predict what
consumers want, and be ready to launch.

Trends can be slow burners, meaning that constant

monitoring is essential, so your business can evolve.
Ignore these trends and your business will have to
battle to catch up, or disappear.
Remember Polaroid cameras? The brand failed to
appreciate the oncoming storm of digital cameras, so
didn’t explore new products.

Your consumer trend analysis strategy will also show

you when a trend is losing its sparkle. This means you
can realign your efforts without losing traction.

Monitoring both traditional media and social media will

give you the full picture. What consumers are talking
about and how much engagement those conversations
are getting. Increases in traffic or shifts in
demographics are crucial to your competitive
advantage.

But, trends aren’t always positive things you can steer

your business towards. Your trend analysis will also
reveal potential threats or a looming crisis. The earlier
you spot these, the quicker you can prepare and
protect your brand.

Trend forecasting will help you to…

 Monitor emerging market trends

 Find new market opportunities
 Create data-driven business strategies
 Identify which products will be in high demand
 Developa consumer insights strategy based on
business goals
 Analyze the impact of trends in your brand and
industry
 Understandthe social values that matter to
consumers
  Turn research findings into actionable insights
 Benchmark against your competitors

Types of trend analysis

Here I’ll explain the different types of trend analysis
that you can conduct, if you’re looking for a clear
understanding of consumer behavior and how it
impacts your market…

Consumer trend analysis

Consumer or customer trend analysis looks into
the factors that drive product consumption.
Understanding the needs and behavior of customers
and what influences their buying decision.

Collect preferences, opinions, customer satisfaction,

dislikes, etc., and use these insights when you’re set to
launch a new product, to see how it impacts the market
and your target audience.

Historical trend analysis

It’s important to have visibility of emerging and future
trends, along with past trends. Historical data can be
yesterday, last week, or several years back.

Looking at historical trends will show you how a trend

evolved. How it impacts your current market, and how
it could affect the future. This will help with future
planning.

Seasonal trend analysis

Seasonal or temporal trend analysis looks at shifts in
market trends that are related to external factors -
holidays, climate.

For instance, leading up to Christmas, consumers

purchasing behavior shifts dramatically. The retail and
CPG sectors are hit with a boost in demand. Studying
this buying behavior will enable brands to create a plan
of action in advance.

Events such as Black Friday and Cyber Monday happen

every year. They’re trends you know are coming, so you
can create campaigns and ads to entice consumers in
the build up.

Having an understanding of seasonal trends means you

can update your marketing campaigns and offer
promotions or special deals at relevant times during the
year.

Geographical trend analysis

Geographical trends analysis studies variations in
trends in particular locations. You’d compare trends
across regions, states, countries, and continents, to
learn how they develop in each area.
For instance, if you’re looking to expand your business
into France, it’d be foolish to move forward without
knowledge of the country, consumer behavior, market
trends, etc. You’d be doomed to failure.

Example… TikTok kicked off in Asia at the end of 2019,

and younger generations loved it. During lockdown in
2020/21, it’s popularity soared, and now it’s a global
phenomenon.

Social media trend analysis

The very nature of social media means that consumer
trends hit social channels before they impact the
market. A consumer intelligence platform such as
Talkwalker will enable you to do technical trend
analysis, so you can understand how this data could
impact the market’s future.

Social media is a popular platform for consumers when

researching products they want to buy. Reviews left
by peers and influencers are highly trusted by
consumers. More so than brand posts.

The consumer insights gleaned from consumer

conversations will benefit several teams. Marketing can
create messaging that talks the same language as
consumers, joining conversations and getting a feel for
the sentiment. Product development will learn what
people really want, rather than guessing. Customer
service can find out the pain points, so they can
address them before they escalate.
Consumer intelligence platforms, like Talkwalker,
provide a way of listening to conversations on social
media and understanding the consumer sentiment .