Successful businesses around the world utilise market research so that they can stay up-to-date on their customers and new trends in order to retain a competitive advantage. All businesses can benefit greatly from market research, no matter how small. In fact, some would argue that small businesses benefit the most because of their opportunity for growth.
Whatever the case might be, market research is vital to boosting sales, profit, and the overall success of a business. Without research, businesses will slam face-first into a glass ceiling, unable to grow beyond that point.
Would you rather remain stuck at your current level or break through to the next?
Market Research Should Answer These Questions
All businesses need to answer the following questions as they are vital to growth.
How do trends in my market affect my business?
What leads our target market to make a purchase?
How do our customers feel about our products/services in relation to our competition?
How will our current customers respond to a new product?
How can we attract a new customer segment?
What marketing strategies work best for our target market?
Market Research Makes It All About the Customer
That’s exactly how it should be! The most obvious benefit of research is that it provides insight into our customers. It will show us who they are, why they are willing to buy, and what they expect. I see a lot of businesses using the trial and error approach but today, bad customer experience can damage a new business quickly.
Rather than trial and error, businesses should research the market before they ever even develop a product. Then they use customer feedback to learn what even more.
Know Thy Enemy
Make no mistake; competition is the enemy. They might be friendly. They might not be out to destroy other businesses, but they are after the same consumers. Therefore, they are an enemy in business.
Knowing the competition is extremely powerful. I don’t just mean pricing either. Research lets your go beyond just price. In fact, companies that offer a feature that’s in-demand that their competitors do not offer, then they can charge more for the product.
A market is always in a state of flux. The only true constant is change, so in order for businesses to be successful, they have to anticipate and be proactive towards that change. Market research allows a business to anticipate changes so that they are not simply reacting to changes. They are being proactive to change.
Being proactive to change is the only way that a business can stay relevant. Relevancy and longevity go hand-in-hand. Market research will eventually lead a company into the role of innovator.
Enables Full Testing
Market research allows a business to test for success. Companies that are at their current limits need some way to break through to the next level. In most cases, this means a new, innovative product. So there are one of two choices when developing a new product or service – either develop and hope for the best, or research the market to find what consumers want. Innovators always do the latter.
Business must be able to determine what ideas resonate the best with target customers. In Layman’s terms, researching for a new product or service before developing it saves time and money.
Before wrapping up this article, I feel compelled to mention that a business should not drop money on surveys until they have exhausted the web of information from existing surveys and studies.
Is your business using market research to grow? Do you want to share any of the strategies that you’re using? If so, include it in the comments below.