Do you need oxygen to live? Okay, I’ll spare the dramatics – but, yes! Every organization needs market research, whether you are a small startup, testing a new concept, or rebranding your business. Marketing research is an integral step in reaching out to your target audience, gaining a competitive edge, and exceeding sales goals.
Think of it this way, there are more than 28 million businesses existing in the United States today. All with similar product or service offerings to a number of competitors. How does your business stack up against the rest? What can your company provide that a competitor doesn’t already? Is this message widely featured among all marketing and sales collateral? If your employees and customers answered these questions, would their response be similar to yours?
Market research can provide your business with these answers and MORE! So why don’t more businesses conduct market research? Likely because some business leaders fall for a few of the myths around marketing research.
“Market research is too expensive.” Debunked.
“It will be easier to conduct my own research in-house.” Debunked.
“I know the needs of my customers better than anyone else.” Debunked.
Simply put, neglecting market research for any reason is bad for business. A market research company would be happy to discuss the specific pain points of your organization and their recommendations for what research methodology would be a best first for your objectives, needs, and budget.
In the meantime, this blog post will discuss how skipping out on market research will hurt your organization in the long run.
Market research is a critical component for all aspects of business. Why? Evidence-based feedback beats gut instincts, every time.
Not meeting customer expectations
Time and time again, businesses make sales and marketing decisions based on the assumption of what their customers expect and need. You know what they say about assuming…
When it comes to forecasting sales or planning for any aspect of your business, an evidence-based understanding beats gut instincts every time. Any kind of data, especially specific to your organization, is better than none at all. With Voice of Customer (VoC) research, your business will gain a more accurate profile of your ideal customer.
Market research helps outline key customer behaviors such as:
• How often will they buy?
• What are the top sources of awareness?
• What do they need? What do they expect?
• How likely are they to choose a competitor? Why or why not?
• What are the main brand differentiators of your organization vs. a competitor?
These answers alongside gaining insight into customer demographics like age, location, gender, income, and more will effectively tailor all marketing and pricing campaigns to best attract new and existing customers.
Missing insight on key competitors
Wouldn’t you love to be a fly on the wall during a competitor’s sales forecast meetings? While marketing research can’t physically make this happen, businesses conducting competitive assessments is the next best thing.
It is no secret competitors are actively marketing and campaigning to your exact audience and current customers. That’s what makes it a competition. The winning business is the one who’s done their research ahead of their competitors.
Why? Market research will help assess your sector to identify main players and underdogs on the rise.
How? A market research company specializing in competitive assessments like Drive Research, will use a variety of data sources and information to create in-depth profiles for each of your competitors. This service can also include mystery shopping visits, emails, and calls to gain an inside-look at what it is like conducing business with a competitor.
Doing so, a market research company can help identify weak areas in your competitor’s approach. This information constitutes as gaps in the market area. Businesses can use this information to their advantage by filling in these gaps and gaining new customers by meeting their specific needs.
On the other side of the spectrum, a competitive analysis will also highlight what your competition is doing right. This allows an organization to think more strategically about how they too can align their business efforts to offer a similar service.
Increased risk of business sales plateauing or plummeting
One thing is for sure, the market (for any business or sector) is constantly changing. This is because the expectations of customers are always evolving. In today’s age, customers expect quality service, and fast. It is no longer the question of quality or value? If your business can’t provide both, there are plenty of those who can.
Market research helps detect more business opportunities and minimizes losses to assure your business is constantly growing in a positive direction. It allows organizations to solve critical issues before they happen or grow to an unmanageable size, ultimately saving businesses hundreds of thousands of dollars.
With the detailed data collected through all types of market research methodologies, businesses are able to identify real opportunities for growth and avoid unproductive areas. While your organization may already be aware of the high-level business opportunities, market research acknowledges the “low hanging fruit” aspects your business is missing.
Contact Drive Research
Drive Research is a market research company located in Syracuse, NY. Our team has the knowledge and tools to design a robust market research study, should it be the right fit for your business.
Interested in learning more about our market research services? Reach out through any of the four ways below.