You may be wondering what market research actually is. In simple terms, it’s the act of collecting, analyzing and understanding crucial information to help your business solve various marketing challenges.
You may also be wondering why it’s important. What makes market research important is that it can bring new insights and opportunities that may have been missed before.
Here at FUEL Marketing, we believe that there are five significant benefits to market research:
1. Make Better Informed Business Decisions
Making difficult business decisions is inevitable, but having data to back up your decisions can make things easier. Instead of using random criteria for those decisions, you can return back to your market research data. Based on that information, you can decide whether or not this decision will drive more customers, reach more people and meet more needs.
Some important decisions that can be made by reviewing your market research are:
- How to price your goods or services
- Whether there’s a demand for a new product or service offering
- Which products or services to remove and which ones to improve upon
- Whether or not to open a new storefront location
2. Know Who You’re Talking To
Knowing who your customers truly are can be your golden ticket! There’s no point in marketing a product or service if you don’t have the right insights. Getting to know your customers on a personal level is key. Some things to consider are: How do your customers differ in their likes and dislikes based on their demographics? What are their concerns when they communicate with you? What attracts them, scares them or motivates them?
An easy way to learn more about your target audience is to conduct surveys or crowd source on social media. You may also employ a research agency or marketing firm that specializes in research, if you want to conduct an in-depth study.
Also, pay close attention to what kinds of content your customers are engaging with. This will give you insights into what topics, visuals and messages appeal most to them. You can gauge these metrics over time and begin to recognize key behavioral patterns in your audience.
3. Find Opportunities for Growth
Running market research initiatives regularly within your business can help you uncover new opportunities for growth and improvement. You may find that there are untapped customer bases that could greatly benefit from your products or services. You may also find that your products or services are in need of some improvements. Maybe there are collections, add-ons, or other upsell items that would increase your profits.
Through market research, you might find potential business partnership opportunities. These types of opportunities usually lie within a business that already has a valuable and time-honored relationship with your target audience. By combining the power of both brands, your reach and success will be mutually beneficial.
4. Stay Up to Date on the Latest Trends
Market research is a great way to stay on top of the hottest trends. As times and consumer behaviors change, so must a business. Trend research can often be done by analyzing your top competitors and what they are doing right. This can also show you what new products or services are trending with your customer base.
Some things to consider when trying to stay up to date are:
- Consumer purchasing behaviors
- Popular advertising platforms
- Product features and improvements
- Preferences in packaging
- Overall messaging
- New technology
5. Know Where to Advertise
While some businesses may be successful selling on social media, others may not. This is where your market research report will come in handy. If your research confirms that your target audience spends a lot of their time on Instagram and hardly any on Facebook, you’ll then know to direct your social media ad budget to Instagram.
Online ads like pay-per-click and social media can often narrow down audiences with exactitude. With these ads, you can target beyond demographics. You are able to target based on interests and life events, among other measures. Once you know your true customers, your business will be able to amplify its potential targeting.
We should not forget the power of traditional marketing mediums like billboards, posters, mailers and flyers. Even though these results can be more challenging to track doesn’t mean that they can’t be effective. If you have many customers who are often stuck in traffic or commuting, college students frequenting campus, or other in person scenarios, consider engaging in traditional marketing for further reach.
In conclusion, market research is effective and valuable if you are willing to put in the time and effort that it takes. Of course, this alone won’t guarantee that your business will succeed, but it will give you the data you need to make thoughtful and strategic decisions. To learn more about how market research can benefit your business and maximize your marketing strategies contact us at [email protected].