Updated: Dec 15, 2020
It’s easy to dismiss the importance of market research (or marketing research) at first when you start your business. Most business owners would like their business to be up and running and for sales to start arriving at their doors. Spending hours on market research is the last thing on their mind.
However, whatever you do, there’s a real need for market research. This is especially the case for small businesses when everything proves to be a bit iffy. Small business owners want to make sure that sales and customers are coming as fast as possible? Secure that with market research so those sales and customers won’t stop coming.
In this blog, I’ll explain what is market research, why your business needs market research and why market research is important.
What is market research?
Simply put, market research is what businesses call their attempt at gathering and analyze their target customers to learn more about them.
From this attempt, businesses can design better products, improve customers’ experience, and craft a marketing message that attract users and change them to customers.
Why your business needs market research
Sure, you can start selling out your products when you have enough connections so people start knowing more about you. But it doesn’t take long before your business becomes stagnant: there’re not many visitors, sales start going down, customers are not happy.
What market research do will help your business in the long run. Doing this will help you win your customers’ loyalty.
Why is market research important?
“Obsessing” over your customers is the only way to win.
Whoever gets closer to the customer wins.
Bernadette Jiwa - Founder, The Right Company
If you don’t care enough about your customers, you can’t improve user experience, which can easily turn your potential customers to someone who does.
“What” and “Why” – important components delivered by Analytics and Research.
Analytics can tell you what people do at scale, but research gives you the reasons why people do what they do. For example, analytics can tell you that users reach your products site then leave, but only research can explain why they leave.
Research beats trends, assumptions and so-called best practices.
I’m pretty sure there’s nothing wrong in those “method”. However, they bring short-term, and sometimes terrible, results, which is not exactly what you want for your business. By listening to your users and focus on their experience, you have a higher chance at winning your customers’ loyalty.
Planning without testing? Your research keeps you out of doing just that
No matter how talented you and your team are and how amazing your products/ services can be, but your customers may not think so. Your product functions can be obvious to you as a producer, but your customers may have been confused so many times already after using it. Customers may also use it a way that surprises you. Don’t live under the rock by refusing to test the products by researching your customers. It’s a waste of money, time, and resources because you’ll likely need to make changes once your untested products get put into the market.