Every successful product or service that we use today started with extensive research about customers and competitors. Accurate and specific information about customers and competitors is the critical first step in the development of a marketing plan.
Brands and small businesses have finally realised that they need to know a lot more about their potential clients, their market and their main rivals. Let’s help by sharing reasons why market research is crucial for your business.
A better understanding of your customers
Who will buy your product? Who are your ideal customer personas? How often will they buy? What do they need? What do they want, expect? The more answers you have, the more understanding you’ll get, which will result in meeting the customer’s needs better than your competitors. Market research will help you map out the full profile of your ideal customer. Knowledge of your customers will help you determine the market size and what triggers them to buy.
How competitors approach the market
Who is your competition? Someone that you know of or you don’t, is taking away your customers and wins the market. That’s because they’ve done their research ahead of you, and now you need to do the same if you want to stay in the game. Market research will help you find out who is providing the service that you plan to offer. It will help you find out if any new competitors want to enter the market.
Testing your product before launch
So your product is at its final stage, and all you have to do is start marketing and sales, right? This is actually wrong! You can still improve your product/service function and appearance based on customers user experience and testing. The truth is you can never be 100% sure that your product will instantly connect with your potential customer. With market research, you’ll find out what approach you should take when marketing the product and find the key message that resonates with clients.
Your business will stand the test of time
Market research is essential if you want to remain in business and stay relevant, you should not only anticipate change, but you need to be able to predict change too. That’s how good your market research needs to be!
Business growth
It takes time to build stable revenue, but as entrepreneurs at some point, you’ll need to take your business to the next level. Suddenly, you’ll face more competition and lower sales, while on the other hand some of your competitors will have fewer problems. Market research is the basis that has to be included in your growth strategy so you can capitalize on the market opportunities that you’ll discover. It will help you develop a new product, a better pricing plan.
