Well, we all know that business starts with a product or service idea. But even a great product is worthless if it doesn’t have a consumer or user. To find out whether your idea or new product is feasible, made practical, and can be launched into the market, you need to understand what is inside of the mind of your target customer base. The best thing to do when starting a business is to approve your idea, product, concepts beforehand by the public. This can be achieved by conducting Market Research.
What is Market Research?
You have heard Market Research before, it is systematic gathering data from your potential customer to know prior to their need, and whether your product or services fulfil their needs in the market. Then analyze it and understand what are their requirements, and their behaviour & sentiment towards your product or service.
Market research can help businesses run more efficiently and market products more effectively.
Understanding industry shift, competition, changing consumer needs, and preferences, legislative trends can help businesses use their resources wisely and focus on important things first.
Importance of Market Research
Let us understand it by an example, you have got this idea, creating a single tool which has a pen, pencil, eraser, scale, and compass on it, you call it the X-Pen. The idea is great, looks good, feels good, seems that this is going to be huge. Then you worked for 3-5 months to create an X-pen demo product,
It’s kind of got larger than expected, but still, it has all the things mentioned. Now that the product is ready, you put a price tag on it and sold it to the consumer.
The First Day, No one Bought!
A Month pass by, No one!
Even after a year, Still only a few from your friends.
Why this has happened?
I hope you understand, what I am trying to say. If you initially have asked about your product viability to your potential customer. You could have got valuable information on how you can make the product launched in the market, or should you trash the idea, or work on the other aspect of the product and improve it.
Key benefits of Market Research
- Easily Spot Business Opportunities
- Check Feasibility of the product
- Find out why customers don’t come back
- Create Relevant Promotional Materials
- Get insights on problem areas
- Know Where to Advertise
- Outsell your Competitors
- Set Better Goals for Your Business
- Decision-Making Becomes Simple
Most effective Methods:
There are many different ways you can ask your potential consumer and gather inside data. But it is advisable that you try to use as many methods to get actionable data from your audiences.
Common Methods Used
Surveys: Most preferable method and easily implementable
Using a survey, you can ask a series of short questions like “How would you recommend our product or services to your friends”, or “What should we have done to improve your experience”, “What is your biggest concern about buying our product” etc.
You can scale some questions 0-10 and you can also put open-ended questions and understand in a deeper level.
Start researching your market now, Start Here,
The Focus group is gathering data from a set of carefully selected people who fit the buyer’s persona. You can start conversating with them asking about the product, the experience, marketing insights, channels to gain deeper insight.
But sometimes this can get biased results, most negative responses are not seen in Focus group data, as people tend to be nicer in front of other people.
However, if you find the best group of people then it is an avenue, and you can get deeper information on any topic, any concern, and any risks surrounding your product.
Unlike a survey where it is a unidirectional conversation in interviews, you can talk with your prospect and ask their views on specific topics.
One-on-one interviews are a great way to get to know about your customer’s behaviour in certain situations, and you can find something that you completely forgot in the initial stage.
But this method can also backfire and can give misleading information if the client you chose for the interview is biased, so finding key people that resonate with your target market is essential.
If you are willing to interview more people then you can get more accurate data, rather than getting information from a smaller number of perspectives.
However, if you conduct interviews then it will be beneficial in understanding your target market and customers.
This is a Market Research type where we observe customers’ reactions to a product or service, their views on it, their effort, and their experience. All the above things are noted by observant and then can be used as data points. This makes businesses understand how an ideal customer engages with their product, and what they can do to improve their Experience Journey.
The data gathered by these methods come together and help you make a better future decision.
If you want to launch a new product or run a little on budget, then Market Research using Surveys is your option to go for. It is more reliable as data is generated by a large number of your target market and customers.
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