people are starting a business, one thing people avoid is market research. It’s a perception that market research is something only professionals can do. Research indeed is a systematic approach but it can be made easy. It greatly helps a company/business to oversee its weaknesses and to grow a business.
Successful businesses are fully aware of their customers and competitors. As a business owner, you are conducting research all the time. Whenever you are talking to your customer, reading an article about market trends, reading people’s conversations on social media, you are a part of the research. It’s just that you have to formalize the process, gather/store the data, analyze it, and use it for your business’s benefit.
Before we see step by step process, it is important to know about the research sources. Traditionally, there are two methods: Primary research and Secondary research. Primary research involves direct contact with the people i.e. interviews, surveys, questionnaires. The latter includes extensive analysis of the data which is already present. Below you will find the crux of how to conduct strong and budget-friendly market research:
STEP#1
KNOW YOUR AUDIENCE
A business owner must know about his customers. There is a delusion that we already know our customers, which is wrong! We should be constantly in touch with them. Through feedbacks and surveys, collect data to identify your audience. Try to know their age group, gender, occupation, interests, and location
FEEDBACK
• Whenever a customer visits you or uses a product, take feedback from them. There is a high chance that you will get honest reviews about your service or product.
• Ask your employees. The people working and directly dealing with the customers are the ones who exactly know your customers. They will inform you what people are appreciating about your product and what is lacking.
• If you own a restaurant, training center, or any other services, provide your customers with comment cards. They will fill it for you and give you the most honest reviews.
• Place a complaint box in the premises of your facility center. Automatically you will get to know the issues your customers are facing and the improvements you could do to facilitate them according to their needs.
SURVEYS & QUESTIONNAIRES
Surveying is an excellent form of data generation. In today’s world, you can easily access your customers through email. Send them the survey form but know that nobody spends their precious time on filling a survey form. Here’s a tip: Send coupon of discount with the survey form or the questionnaire. It’s a great way to get feedback and attract a customer
STEP#2
EXAMINE YOUR COMPETITORS
It’s very rare to be one and only YOU in the market. Undoubtedly, several other people are providing the same services/products as you are. You can see what and how they are offering, their prices and all. Understand their unique selling points, their marketing strategies, and their work environment.
• Location of the company plays an important role. Check how other business owners are generating revenues at different locations.
• Match up prices of the products/services you are providing.
• Compare the quality and see the branding.
• Keep a check on the offers and discounts the competitors are providing.
STEP#3
READ AND KEEP AN EYE ON MARKET TRENDS
Market trend analysis is the analysis of the current and past market behaviors. There are several resources available to get the latest updates about the financial markets, the market trends, consumer preferences, and business insights.
• To gather detailed and extensive knowledge, take out the copies of these magazines, and read about consumer behavior and their needs, shifts in consumer perception of value, and the standards of an economy. These articles often cover the huge business success stories which can motivate and encourage you to take risks!
• Use search engines effectively. Take out the research articles already present from a reliable source. Read and analyze current and past market behavior and dominant trends. Learn about the evolution of the market.
• Most simple thing to do is to examine the present data you already have i.e. sale receipts, reports on the outcome of advertising, customer reviews.
STEP#4
USE INTERNET/SOCIAL MEDIA EFFECTIVELY
Wise people use available tools wisely!
• Speaking about social media, Facebook is the first thing that crosses our minds. Facebook is a business-friendly site. Search your industry, find the relevant groups/pages, be their member, and start data collection. People willingly share their problems, thoughts on the issues they are facing. Simply read through the already present conversations, comments, and observe things. Once you are comfortable, post questions, and get the replies, they help a lot!
• Develop an internet site for your business. Update the site regularly and engage your audience through it.
• Give special attention to the recommendation/suggestion page and strictly keep an eye on the site insights.
STEP#5
COMPILE THE DATA, ASAP
Once you have the data, begin the compilation. It’s better to organize and sort the data simultaneously. Use the reliable and the latest software available.
If you want to take your business in the right direction, it’s necessary to conduct researches before starting a business. Make a feasibility report, discuss with the learned people to get the best results.
