Market research is integral to the success and longevity of any business. In fact, for your company’s long-term success, whether you’re looking to drive profitable growth, enter a new market or sustain your competitive advantage over time, you need to make use of market research and you need to do it consistently.
However, the truth is that many businesses shrug it off because they believe that it’s too difficult. They feel that it’s too time-consuming or they don’t believe that there’s a great enough return-on-investment to warrant carrying it out. Here are a few reasons why market research isn’t something you should take lightly:
The essence of market research
Basically, there are two main types of market research that companies may carry out. The first type is primary market research and the second type is secondary market research. Each type has its place in business and should be used in combination for optimum results.
Primary market research involves gathering first-hand data on your markets and customers. You’re able to gather this data through focus groups, online surveys and telephonic interviews. Secondary market research involves using all the data and information you have at your disposal to draw conclusions about the needs and wants of your customers. Either way, the importance of market research can never be overstated.
Why it’s so important
There are a few elements of market research that make it impossible to ignore. A solid understanding of these elements will help you better make use of market research in your own business. Let’s take a closer look at the importance of market research.
1. Helps you get closer to your customers
Firstly, market research helps to bridge the wide communication gap between the producer of the product or service and the consumer—a gap which often forms over time and as the company grows. It’s essential that your business is catering to the specific needs or pain points of the people who are spending their money on your products and services.
2. Identify risks and opportunities
Market research helps a company identify and manage environmental and market changes. Keeping in touch with the evolving industry and world that surrounds the goods that your business offers means that you can stay on top of the risks and opportunities. Attempting to navigate through the marketplace without visibility into this is just bad for business.
3. Empowers you to adjust your products or services
By swiftly identifying these risks and opportunities, market research helps management in the business to bring about prompt adjustments and innovations to products and services if necessary. These could be as a result of customer needs or environmental challenges.
4. Builds on strategy
Market research also helps to ensure maximum consumer satisfaction as well as repeat purchases. Through this, you’re able to plan better and lay down appropriate marketing strategies to meet and beat the competition depending on your own customer’s level of satisfaction.
5. It’s constantly evolving
Just like any aspect of business, the key to successfully carrying out market research is to not get complacent. Branch out with the same market research approach into new markets or untapped demographics. This is the best way to continuously evolve and grow your business—therefor increasing profits.
Market research can easily be defined as the action or activity of gathering information about the needs and preferences of consumers. However, we’ve learned that it can mean so much more to a business looking to expand its reach or grow more successfully. Consumers are always seeking new products or services to solve a problem or challenge they’re facing, and their preferences are continually evolving. Keeping in touch with the preferences of your customers and potential customers is the key to making massive sales and turning a profit—and that’s what market research helps you do.