Most business leaders understand the importance of market research, particularly during the startup phase. Those interested in starting a business should research their potential customer base and determine how successful their product or idea will likely be within that particular market long before building their first prototype or contacting their first client.
Yes, we all know how vital market research is for startups, but it’s equally important for well-established businesses — even highly successful ones. Unfortunately, it’s easy to let research fall by the wayside once your company has begun seeing success. Don’t. The need for market research doesn’t go away once sales start coming in. Instead, it offers valuable insight you can use throughout your marketing campaigns to successfully grow your business.
What marketing campaigns can tell you
Marketing campaigns offer unique insights into what your customers are actually thinking. All too often, we as business owners think we understand our customers, only to realize our own assumptions have colored our perceptions. Perhaps you thought your customers valued low prices, only to discover when you shrunk your customer service staff in an effort to lower prices even more that what they had really valued was your outstanding customer service. Market research and surveys of current and potential customers will let you know exactly what your customers appreciate about your products and services and what needs to be improved.
Understanding the virtual customer is a bit more difficult, because people will stumble upon your website for a wide variety of reasons. Knowing customer wants can lead to higher conversion rates, a better social media experience, and a better reputation that spreads significantly faster than ever before. Customers who have good experiences on your website are more likely to spread the word about their experience on social media, which can be very valuable for growing customers. To get an accurate picture, monitor a variety of sources, including social media and web traffic.
Where can this help?
When you know exactly what it is your customers already like about your products, you’ll have a better idea about what to emphasize to new customers. The traits that already appeal to existing customers are likely going to be the ones that appeal to new customers, too. This will help you build more targeted campaigns and reach your audience more efficiently.
In making business changes
When you’re looking for ways to improve, say, your customers service procedures, market research can tell you which steps in the process matter the most to customers. Customers will have opinions about each step, whether in the buying process, the return process, or the customer service process. It’s often too difficult to completely revise everything, but knowing which parts matter the most to customers can help you optimize your revision process and make customers happier faster and with fewer resources spent.
Knowing when and how to expand
If you follow the first two steps well, chances are there will come a time when you want to expand. Maybe you’ll be looking to add more products or expand into new markets or both. Regardless of your goals, market research and having an intimate knowledge of your customers will give you the insight you need to complete this important business step wisely.