Inductive coding is a foundational qualitative research method in which codes and thematic categories are derived from the raw data itself, rather than applied from an existing theoretical framework. Researchers immerse themselves in interview transcripts, observation notes, or open-ended responses, identifying recurring patterns and grouping them into meaningful categories that reflect participant language and experience. This approach is particularly valuable in exploratory qualitative research, where the goal is to surface unexpected insights rather than confirm prior assumptions. Because inductive coding follows the data, it tends to produce findings that are grounded in genuine consumer or user experience, making outputs more credible and actionable for enterprise insights and CMI teams.