In order to market your products, you need market research. But why is market research important? Here are 10 reasons your global business should know.
Why is market research important? Simple, it gives you access to the information you need to make better business decisions.
Identify and analyze the market needs of your customers. Your business will be in a better position to deliver customer satisfaction. Besides, research shows that 55% of consumers are willing to pay more for a guaranteed good experience.
Are you launching a new product, or trying to improve your existing services, or making strides to ensure you are ahead of your competitor? Then you should leverage market research as the data will help you accurately accomplish these goals.
1. Why is Market research important for understanding the customers
There is a shift from product-based to customer-based campaigns. Customer experience is the new brand. Hence understanding customers has become an essential component of marketing research.
Some of the questions answered by market research about your customers include:
- Who will buy your products?
- What do they expect from your business?
- How often will they buy your products?
- What do they need?
Answers to these questions will give you a better understanding of your audience. You can use this opportunity to win over new customers.
Map out the full profile of your ideal customers. Use this information to figure out what triggers each customer to buy.
Get valuable information about customers like their income, age and gender. Then position your business as an authority in the industry. Do this through tailored marketing and pricing campaigns.
2. Understand the competitor
Aside from understanding the customers, you also need to understand your competitors. In today’s current competitive scenario, knowing your rival’s weaknesses can help you win over more customer.
Identify strategies that worked for your competitor. Then, incorporate them into your marketing strategy.
Knowing the key players in the market gives you an idea of how best you should approach the market. Ensure you do research ahead of your competitors to stay relevant to customers.
Marketing research allows you to think creatively. It also helps model your new strategies and create a path to success. Hence, knowing as much as you can about competitors is a vital strategy.
3. Launch tested products
Whether you are launching a new product or service, you need to ensure you are certain of its success rate. Marketing research helps businesses know which launching strategy will work best.
Besides, every decision about your business should be tested before its implemented. This saves you the expenses of rectifying decisions made without keen interrogation.
Ideally, marketing research sheds light on the best approach to use when marketing a new product or service. You can never be 100% sure customers will instantly connect with the product or service.
4. Stay relevant
Aside from increasing revenue streams and gaining new customers, you also need to build a future proof business. The only way of surviving in a competitive marketplace is being flexible.
Getting your market predictions wrong can easily render your business irrelevant. So, getting back in the game once customers forget about your brand can be quite a struggle.
Why is market research important in this regard? You may ask. Well, anticipating change based on accurate research data ensures that you don’t wait till it’s too late.
5. Grow your Business
Every business person regardless of their industry wants to grow their business. This can be achieved when you comprehend the demands of your customers.
Once you know what customers need, you can then leverage this opportunity to plan a perfect marketing campaign.
Market research helps you identify problems before it too late, thus this boosts the growth of the business. Furthermore, when you avoid pitfalls, you get to save money, and the time you’d need to recover from the same.
6. Significantly reduce risk and loss
Every business person needs to embrace the contingency approach because embracing risk helps your business grow. Marketing research offers you momentous back up to ensure you not only reduce risk but revenue loss as well.
Ensure your market research is done using multiple sources, so you get a full point of view. Looking at questions from many different angles ensures you don’t settle for the wrong interpretation.
Relying on the wrong information increases risk rather than reducing it and with risk comes loss.
7. Detailed segmentation-targeting-positioning (STP)
This is a common strategic approach that allows you to develop marketing strategies. This model helps you prioritize propositions, and this can only be possible with in-depth market research.
You get to engage different audiences through customized marketing. The optimal marketing mix ensures you select the most valuable segments for your business.
Remember customer experience is king. Hence, this should be a customer-focused process rather than a product-focused one.
8. Foster better decision making
Market research arms you with accurate data so that you make informed decisions.
It helps in propelling fast conclusions with the generated results. It allows you to identify gaping holes in customer satisfaction in good time and leverage this for the benefit of your business.
Rigorous market research drives better decision making. It also opens your eyes to trends beyond your company. You’ll become familiar with terms like new technology, new regulations, rising competitors and so on.
9. Know better what you are going to do
Even though you might get lucky and hit the bull’s eye when you shoot in the dark, you’re unlikely to get lucky every time.
Conducting market research is essential as it allows you to see into the future.
Market research is an integral part of all business decisions as it helps you know better what you are going to do. You can easily analyze business threats, weakness, opportunities, and strengths. You can then move forward with your business without worrying about risks.
10. Understanding customer behavior patterns
You need advanced research to understand customer behavior patterns. This is usually achieved by reviewing customers’ buying history. Hence you use advanced software tools like Google Analytics.
The data is then used to offer each customer refined and customized products.
Why is market research important? What’s next for your business?
Market research allows you to identify and analyze customers’ needs. Hence, once you identify them, refine your offering to fulfill consumer needs. Hence, it helps you get a better understanding of your business. Therefore, contact us today and take up our B2B market intelligence solutions.