Market research is vital to informed decision-making for businesses. It helps you develop strategies that resonate with your audience and identify opportunities and risks.
Conducting market research can feel like a scavenger hunt or a jigsaw puzzle. Finding the right information can be challenging, but knowing where to look makes it easier.
What is market research?
Market research is a critical tool that companies use to identify consumer needs, develop products that meet those needs, and stay competitive in the marketplace. The process of gathering and analyzing data for market research can be time-consuming and expensive, but the information gained is invaluable to businesses trying to make informed decisions about their product offerings.
Depending on the type of market research conducted, the data may be gathered in a variety of ways. The most common method is via surveys, but interviews, focus groups, product testing and other methods can also be used. The information gathered through these research methods can be either primary or secondary data. Research that is generated by a company itself is called primary research, while research that is available from third-party sources is considered secondary. Most companies utilize a combination of both types of research.
Regardless of the specific method(s) chosen to gather market research, it is important to clearly define the business questions driving the study before beginning. Defining the question(s) will help ensure that the research is focused and that all interested parties are on the same page about what data will be gathered. This will help to reduce the risk of “stray” findings that may have little bearing on a company’s decision-making process. For example, many companies will give their sales and customer service teams a list of questions to ask customers during calls or in face-to-face meetings. These questions can include topics like overall satisfaction, suggestions for improvement, and competitor awareness.
How to do market research?
Market research is an important part of any company’s business strategy. It helps identify customer preferences and anticipate shifts in industry trends to drive informed decision-making and success.
The best market research is actionable and provides a clear path forward. Ensure your teams understand the purpose of each survey or question, and make sure to provide context for results. This will help your team members use the information they uncover to make concrete changes to their work.
To get started with market research, you can start by collecting data on your existing customers and the industry landscape. This can be as simple as analyzing sales reports or examining customer feedback. Some businesses conduct more involved research, such as surveys, focus groups or even “mystery shopping” (sending agents into stores to evaluate the customer experience).
For a deeper dive, you can also do primary market research, which involves gathering new data to answer specific questions. This can be a time-consuming process, but it’s essential to understanding your customers and industry. During a market research interview, be sure to ask open-ended questions that encourage detailed responses. For example, instead of asking “How satisfied are you with your current employer?” try asking “What makes you most happy at your job?”
Primary research
The first-hand data provided by primary research can offer a plethora of opportunities for businesses. From a content perspective, these insights can be used to create trend reports, answer the most pertinent prospect and customer questions, highlight key issues and so much more.
Unlike secondary research, which can be difficult to interpret, primary market research is highly specific and targeted to your business’s unique needs. It is typically done through interviews, surveys, focus groups or observations. These methods allow for a more tailored approach to your marketing research and therefore deliver more relevant results.
Additionally, because the data is collected directly from your audience, it offers you ownership over the results of your research and can be a valuable resource for your future marketing efforts. This data can also be the basis for additional reports and can help you confirm your hypotheses with greater confidence.
One of the most popular ways to collect primary market research data is through in-person interviews. These can be conducted over the phone or in person and are a great way to get to know your audience and their thoughts, opinions and concerns. By conducting these in-depth conversations, you can also get a sense of their demeanor and body language which can help you understand the full context behind their responses. As a result, you can ask more pointed questions to elicit the answers you need.
Secondary research
Rather than collecting original data directly, market research often involves studying existing information that other people have collected. This is called secondary research, and it can be a useful way to gather insights without spending time or money conducting firsthand studies.
In the case of a supermarket that wanted to know why customers were not shopping there, secondary research might include surveys of shoppers and interviews with employees. This would help pinpoint areas that might require more in-depth study through primary methods.
Quantitative market research focuses on numerical data, such as product ratings and customer satisfaction statistics. Qualitative research delves into the motivations behind customer behavior by analyzing non-numerical data, such as one-on-one interviews, social media reviews and comments, or subtext conveyed in visual and other non-verbal cues during an interview or focus group study.
Conducting market research on a limited budget can be done by defining clear objectives and using cost-effective online tools. It’s also possible to leverage competitor research to provide a snapshot of the competitive landscape and identify potential opportunities for differentiation. It’s important to evaluate all sources of market research for accuracy, relevance and timeliness, as the quality of data can vary significantly. This is why it’s critical to choose the right methods for a particular project or business need. Choosing the most appropriate approach can make all the difference in the quality of the final research report.
