It’s hardly surprising that better information yields better results. If you measure your foot, you get shoes that fit. If you read your science textbook, you get better grades. If you make a list, you remember what to buy at the grocery store. Why, then, do so many companies believe that market research is a negotiable component in their overall business strategies? On the contrary, the importance of market research should be sacrosanct, a given expense and task for companies wanting to succeed in any competitive market.
So, What IS Market Research?
Market research is the accumulation and interpretation of facts relating to a company’s consumers and its place in a market. It is the foundation, not only for your business’s launch, but its growth, as well. It informs decisions and helps create lasting meaning for you and your consumers. Take a look at four reasons every company should believe in the importance of customized market research:
Market Research Provides Context
It’s not enough to have a great product. You must also understand the market in which it will be placed. You must identify competitors and evaluate how well they are (or are not) meeting market demand. In short, you must have the necessary facts to determine whether there is an opportunity worth pursuing and if there is, how best to do it. Market research can provide the necessary numbers to either support or change your objectives by laying bare the competition, predicting upcoming market trends and anticipating societal or political changes.
Market Research Identifies Customers
Using various research techniques, you can pinpoint the type of consumer(s) most likely to benefit from, purchase and/or remain loyal to your brand. There’s a big difference between a college-aged woman and a middle-aged man, and trying to reach both isn’t always in a company’s best interests. Establishing ideal customer personas based on variables such as gender, location, age, education and income level better enables you to design, market and sell your products and services to them.
Market Research Uncovers What You Don’t Know You Don’t Know
The chances are fairly high that no matter how much you think you know, you don’t know everything. And you certainly don’t know everything about your customers. In this way, it makes sense to ask customers about their experiences with and their perceptions of your brand. This can lead to surprising information that you can use to either enhance, add or change practices and better secure future success. This proactive approach can save critical time and resources, allowing you to grow when others are just trying to catch up.
Market Research Offers Insurance
Wouldn’t you rather try something out before committing to it? Market research is important because it acts as a type of insurance, providing you with facts and figures that best protect you against failure. While nothing is guaranteed, solid market research helps determine whether your practices are on the right track. It can help you create packaging and promotions that grab and hold attention, identify problems with and improve product performance and evaluate user experience for potential obstacles, making it much more likely that you succeed when you make your final pitch.
Want More Info?
If you’re still struggling to understand the importance of market research, contact our team at Communications for Research (CFR). We can work with you to highlight how robust market information not only strengthens your products and services, but also saves you money in the long run. We have over 20 years experience designing market research projects that get actionable results and increase ROI, making us uniquely equipped to help you, too!