Market research is not progressing, it's downright thriving.
And therefore, given its outlandish success, in the last decade, it has become reasonable to say that market research is not advisable — it's necessary.
Last year, the market research industry earned a mammoth $76 billion in revenue — more than twice since 2008.
Market research is not progressing, it's downright thriving.
And therefore, given its outlandish success, in the last decade, it has become reasonable to say that market research is not advisable — it's necessary.
Still, most businesses don't invest in it either due to inertia or data illiteracy, or simply, a lack of awareness.
In this blog, we will look at 5 simple ways you can get started with market research before going full pro.
Though first, let's understand the basics. (If you already know them, you can skip to the 5 techniques below.)
What is market research?
Market research is a vastly broad practice of collecting and analyzing market-shaping data to make more cost-effective, accurate, and impactful decisions.
The practice is vastly broad because market-shaping data is vastly broad and diverse. And hence, the practice is divided into smaller sub-practices — opportunity assessment, competitive intelligence, benchmarking, and consumer insights.
Whatever the kind of research, the data collected is either qualitative or quantitative.
As the names suggest, qualitative data is data that cannot be expressed numerically, while quantitative data can be expressed numerically.
Qualitative data provides insights into deeper, non-reducible implications such as the motivations of a customer. On the other hand, quantitative data provides insights into more general or abstract implications such as how high a product is rated.
Ideally, qualitative and quantitative data are most effective when combined.
Why is market research so important?
The logic behind market research is extremely simple and applicable pretty much everywhere: the more you know, the better, more accurate decisions you make. And since you make more accurate decisions in lesser attempts, your strategy is highly cost-effective.
It, therefore, stretches the revenue from both sides: cost-effectiveness saves money; accurate strategic decisions make for more sales.
Here are the 5 biggest benefits of market research.
Identify opportunities: Competitor and consumer insights yield broad patterns that enable businesses to identify novel growth opportunities. The patterns, for example, can anticipate future pain points.
Minimize risks: The greater the data, the more accurate the decisions. Which means, the lesser the risks. Hence, the cost-effectiveness.
Benchmarking: By collecting data across myriad sources, businesses can determine their standing across diverse areas — product development, sustainability, brand awareness, to name a few.
Improved planning: Once opportunities and risks are verifiably identified, businesses can plan better, for the near or far future, readjusting their targets, reallocating their resources.
Stay current: The more updated the data, the more current or in trend your business, as it continually adapts to changes in the market.
5 simple techniques to ace market research
Market research might seem complex and overwhelming: data is seemingly infinite, where do I even begin?
But it doesn't have to be that way.
Here we have outlined 5 that are simple yet effective.
1. Focus groups/interviews
Focus groups, interviews, or any in-person conversation will produce qualitative data of the highest quality.
But there's a catch.
Qualitative data is only as good as the questions you ask.
Therefore, while businesses ought to ensure they focus on focus groups or interviews, they must also ensure that they are thoroughly prepared for them.
2. Surveys
Besides interviews, surveys are awesome ways to collect both quantitative and qualitative data.
More so, because they are also incredibly easy to conduct, especially today when forms can be sent online, to hundreds and thousands of people, simultaneously.
Surveys can be conducted via email, direct messaging on social media, Google Forms, and the plethora of survey tools out there.
The internet is an extraordinary tool — make full use of it.
3. Keep a close ear to social media
Who isn't on social media?
Your customers, certainly, are.
And they certainly subscribe to and follow your content closely, given that the identity of your brand resonates with theirs.
Though do you follow the content they create closely?
Social media doesn't just yield quantitative data such as engagement numbers.
It is brimming with qualitative data in posts, comments, hashtags, and a ton of clues left behind by your customers that speak volumes about their needs, desires, experiences, and pain points.
Follow them.
4. Sales data
Often the most revealing insights can be gained by simply looking at the sales data.
Sales analytics offers trends or patterns that may reveal something about the spending behavior of your customers.
Often the insights may be obvious, such as people who buy notebooks also buy pens. However, sales data could also be a source of profound, game-changing insights, such as people are willing to pay more for a better experience.
The key, again, is to pay attention.
5. Observe
The most cost-effective way to ace market research is to simply observe.
Observe your customers. Observe your competitors. Observe anything and everything that may impact your business.
You are more likely to be wrong, but like any data-driven framework, you get better with more guesses.
