Technical analysis methodology known as trend analysis makes an effort to forecast future stock price movements using trend data that has recently been observed. The long-term direction of market sentiment can be predicted using trend analysis, which makes use of previous data such as price changes and transaction volume.
Analyzing new trends in marketing, for instance, makes sure that your content strategy will develop and continue to draw in your target audience. You'll be able to anticipate consumer demand in terms of product development and be prepared to launch.
Since trends might take time to develop, continual monitoring is necessary so that your company can advance. If you ignore these trends, your business will either have to struggle to keep up or end up extinct.
Additionally, your consumer trend analysis method will let you know when a trend is starting to lose its luster. As a result, you can redirect your efforts without losing ground. You'll get the entire picture if you keep an eye on both traditional and social media. What topics consumers are debating and how much interest there is in those discussions. Your competitive advantage depends on demographic changes or traffic growth.
However, you can't always direct your business toward positive trends. Your trend analysis will also show whether there are any impending dangers or crises. The sooner you recognise them, the sooner you can take action and safeguard your brand.
How trend analysis is applied in business
Every company should have a plan in place and be ready for a crisis. a pandemic, an unanticipated incident in its sector, a failed product launch, or a crisis of its own making. If you keep an eye on the conversational ebb and flow, you'll be informed when a crisis is approaching and have time to put your strategy into action. We were all put to the test in 2020. While many companies permanently shut their doors, brands that studied the trends were able to adapt and endure.
Calculating Solvency and Liquidity
With the aid of associated financial trend measures, trend analysis enables analysts and management to comprehend a company's long-term solvency situation as well as its short-term liquidity position over time.
Determining Position's Profitability
With the use of some associated financial trend ratios, trend analysis also aids in measuring the profitability positions of an organisation or a corporation through time (e.g. Operating Ratio, Net Profit Ratio, Gross Profit Ratio etc.).
The consumer is in control. They will switch brands if they don't get what they want from one. Brand loyalty isn't a given anymore. Consumers won't think twice to leave a brand if it fails to read the room, publishes offensive material, doesn't support a deserving cause, or lacks a personal touch. Following trends will keep your business culturally relevant, which is essential for survival in the modern world. Trend analysis is ongoing, so beware. The trend from this month will soon be forgotten.
Exploiting trends will keep your brand modern, but recognising when to budge from a trend is just as crucial. When mentions begin to decline, you'll know it's time to leave the group. On social media, users spend a lot of time browsing through their feeds in search of amusing or fascinating content to read. If they keep noticing businesses capitalising on a passing fad. In order to determine when to abandon a trend, keep an eye on the debates surrounding it. If you don't, the health of your business will be jeopardised.
Types of Trend Analysis
Consumer trend analysis
Analyzing consumer or customer trends focuses on the variables that influence product consumption. Recognizing consumer demands, behaviour, and the factors that affect purchasing decisions. When you're ready to launch a new product, gather preferences, opinions, customer satisfaction, dislikes, etc. and use these insights to analyse how it affects the market and your target audience.
Historical trend analysis
It's crucial to be aware of current trends as well as new and upcoming ones. Data from the past can be from today, last week, or many years ago. You can see how a trend changed by examining previous trends. How it affects your market today and how it might in the future. This will support planning for the future.
Geographical trend analysis
Geographical trends analysis investigates changes in trends in specific regions. To understand how trends emerge in each area, you would compare trends across areas, states, countries, and continents.
Social media trend analysis
Consumer trends often reach social media platforms before they reach the market because of the very nature of social media. With the use of a consumer intelligence platform like CheckBrand, you can do technical trend analysis to learn more about how the market may be impacted by this data in the future.
CheckBrand is the only platform to track your digital ranking, digital presence, and social media presence along with detailed analytics reports by which you can measure all the parameters of a digital domain.