Market research can help a business in a number of ways. It works as a true investment for an organization. Conducting market research ensures a higher chance of business success, reduces risk in your strategy, and helps your product and services match the needs of your customers or potential customers.
However, there are still a number of businesses and organizations who decide not to use it. They feel as though they know the answers, their perspective is the only one that matters, or they fear the results.
Some businesses have tried to use market research but did not use the right market research supplier to extract insights and action items from the results. Whatever the case may be, market research can help a business in a lot of ways.
Although market research benefits are endless, we decided to put together 4 of the most common ways it can help a business. These include: (1) understanding your customers, (2) testing a new product or service, (3) guiding your marketing messaging, and (4) benchmarking performance.
Each of these 4 is discussed in more detail below.
Using market research is a bit like having a crystal ball.
Benefit 1: Understanding Your Customers
At its core, market research is about understanding customers since the entire process is built around asking questions and listening to responses. This is the single most important benefit of using Voice of Customer (VoC) market research and surveys. Through these projects you better understand who your customers are, where they are located, and why they buy.
Market research helps your business profile and segment your customers based on age, gender, ZIP Code, household income, household make-up, ethnicity, and many other demographics. Arguably more important than the what is the why.
Understanding your customers is about understanding motivations behind behaviors. Why do they buy your product or service? Why aren't they likely to recommend your company? Why do they prefer to buy in-store versus online? All of these questions about your customers can be answered through market research.
You may here the extremes from customers anecdotally: why they are very happy or very unhappy, but market research weeds out everyone in between to give you a representative view of your customer base.
Benefit 2: Testing a New Product or Service
As you grow your company, you'll likely have to offer new products and services. But you might be unsure about which products or services would carry the most appeal and be most successful. Or which markets to launch into. Market research can guide you down the right path.
Product testing, concept testing, and new product development are common types of market research. Organizations come to market research suppliers to help them. This may involve a concept test online survey or an in-home usage test (IHUT) of some actual test products. An outside consultant can offer expertise and an objective point of view on the outcomes.
Benefit 3: Guiding Your Marketing Messaging
When it comes to your product or service, what differentiates your company from other organizations? What are the largest benefits of your product and ultimately what is the number one reason customers buy from you? Most companies would love to quantify this information but cannot without market research or customer surveys. Knowing this information is vital for your marketing campaign.
If you know the top 3 reasons customers buy it becomes easy to integrate this messaging into your SEM, SEO, blogs, banner ads, email campaigns, television commercials, radio ads, and even newspaper ads. The market research results can be reflected in your marketing strategy so the campaigns resonate with your audiences. Why? It's a bit like having that crystal ball.
Benefit 4: Benchmarking Performance
Lastly, market research should never be considered a one-and-done project. It should never be a one-off project. The largest benefit of market research is the ability to benchmark performance year-over-year. It needs to be a continual effort.
When it comes to market research and surveys, it will answer a lot of questions for your business but also raise many others. Our market research supplier recommends setting up key performance indicators (KPIs) to track with market research year-over-year.
These metrics should include:
④ Likelihood to switch (LTS)
⑥ Perception score
Contact Drive Research
Drive Research is a market research supplier in Upstate New York. Our U.S. market research company works with a variety of clients across industries such as manufacturing, financial services, retail, and many more.
You can contact our team in 1 of 4 ways: