What are the benefits of market research? There's plenty but they center around 3 areas: strategic benefits, marketing benefits, and operational benefits. Market research is typically used to address at least one of and sometimes all 3 of these outcomes.
What types of businesses or organizations use market research? Here are some common profiles of users of market research:
- Start-ups or companies looking to launch a new product or service
- Organizations looking to expand into a new or unknown market
- Businesses who don't understand their customer and non-customer profiles
- Companies who want to learn more about why their customers buy or don't buy
- Firms that want to learn more about how they compare to the competition
- Organizations who want to understand more about employee morale and engagement
Although this is only 6 profiles of common users there are many, many more. Usage of market research circles back to the 3 core benefits of the service. Let's take a closer look.
Choose to complete market research and you should expect this standing ovation from all of your colleagues. It's that good of a decision. Here are 3 reasons why.
Benefit 1: Strategic
The first benefit of using market research is the strategic benefits. Market research is the foundation of sound strategy. Why base major decisions like the direction of a company on gut feelings when you can base them on facts and evidence? This is all part of the growing data-driven regimes in organizations.
Market research can tell an organization which strategy will perform best in the market. Which market offers the greatest chance of success. Which product to move forward with. The strategic benefits focus on recommendations and action items at the 30,000 foot level whereas the next 2 benefits are far more tactical.
Benefit 2: Marketing
This is likely the most common use of market research and the most widely accepted benefit. Market research can fuel your marketing approach. It hones messaging, tells you what audiences to market to through segmentation, and can teach you about where customers and non-customers spend their time on media to help guide budgeting. As a market research company in NY we spend the majority of our time working with marketing personnel.
Furthermore market research (like focus groups) can test messaging and ad creative. User experience (UX) research can improve websites to promote more conversions. Voice of Customer (VoC) can tell an organization about what customers love and hate about your brand and help define competitive differentiators.
Market research can be a goldmine for a marketing team.
Benefit 3: Operational
The final core benefit is operational improvements. This may include tactical changes to an organizational structure. It may also include reworking or retraining departments to focus on different approaches with customers. For example, if you learn from market research that shipping time and customer support is the most important part of the customer experience, your organization may train sales teams to highlight these 2 factors as part of its sales pitches to future prospects.
Market research may also change your process. If you learn customers felt left out after they placed a customer service call, you may use the data for the market research to institute a follow-up text or email post-contact. These are types of operational improvements that can be driven through data and customer feedback.
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