Every business model can be distilled down to two key questions: what product or service do customers want and what are they willing to pay for it? With those parameters, a business can design and price products to maximize sales and profit. There is no simpler way to achieve this than through market research.
What Data does Market Research Generate?
Market research works as both a map and a compass. Not only can it show you what works in the real world, but it often also tells you how to create the most sell-able products and services. Market research can help you answer the following:
- Why customers choose your products or a competitor’s – factors like quality, affordability, aftersales service, prestige
- Why you may have lost old customers and what would entice them back
- The factors that have allowed you to poach competitors’ customers
- The customer journey from lead to conversion – which publications and social media platforms influence their purchases
- Your brand value in the eyes of the public, and how to improve it
For a new business or one launching a new product or service, an accurate idea of what the market wants is not enough. Without an established base to target, the first step must be to identify potential customers. Market research can help you craft your business for:
- Age group – this affects both the product and the marketing because different generations consume information very differently
- Gender – There is an entire science behind the difference between marketing to males and to females
- Location – Because of varying demographics, two areas that are geographically near may have vastly different consumption habits
This is a veritable treasure trove of essential information. With so much to gain from market research, it seems odd that the vast majority of businesses do not use it to craft their strategy. One of the chief inhibitors is the perceived high cost.
Primary and Secondary Market Research
The top players in any field fund massive primary (direct) research campaigns that can cost millions of dollars. However, a more focused foray into the mind of the customer is within the reach of almost every small or medium enterprise. Among the most effective techniques here are pop-up surveys on your website and one-on-one questionnaires.
Secondary market research, the use of previously published data can also be helpful. Some of the best sources are government websites, company reports and news articles. While it is free to access, the chief drawback of secondary research data is that it is not custom-fit for your product, target market and location. The age of the information can also render it irrelevant or obsolete.
Questions? Contact me today to schedule an introductory meeting to discuss how we can work together to achieve business success for you and your organization.
