Successful entrepreneurs understand the importance of market research. Research is used as part of an overall effort to improve business decisions by predicting trends and helping maintain a competitive edge over the competition. Knowledge is power in business. Regardless of whether your brand new or looking to expand to the next level, market research is your gateway to establishing yourself as a legitimate player. It’s the line that separates huge success stories from mediocre businesses.
Here are some ways for how to establish your new business using market research.
Improve Your Branding
One of the biggest problems that up and coming businesses face is trying to get a handle on their branding. Two questions that every business must be able to answer are:
- How do our customers perceive us?
- How does that image stack up against our competitors?
Market research is the only way that you can answer those questions with accuracy. There are three main categories when it comes to branding – awareness, comparison, and personification.
Brand Awareness: Whether or not customers are aware of your brand.
Competitive Comparison: The way in which your customers view your brand in comparison to your competition.
Personification: Traits that customers associate with your brand.
The best way to learn these important brand distinctions is through customer surveys. Next time you make a purchase from your favourite brand, pay attention to the follow up that you receive. You’ll likely get an invitation to take part in a brief survey. The reason is because top brands understand the importance of market research.
Gain a Better Understanding of Your Customers
An entrepreneur needs access to better information about their customers. They need to know the size of their current market, exactly who their target customers are, and the best ways to reach them. This is where market research plays a pivotal role in establishing a business. Without this knowledge, you’re marketing blind – throwing money out and hoping to get a response. Build a customer profile to detail your target audience.
- What is their age?
- Are they male or female?
- Where do they work?
- Where do they live?
- What level of education have they received?
- What are their favourite forms of social media?
There are a lot more questions that could be added to this list but I feel you get the point. Market research is how you answer these questions.
Create Measurable Marketing Campaigns
Market research will shed some light onto the effectiveness of your current marketing campaigns, but the real secret is to create measurable campaigns right from the start. Use link tracking software to track clicks so you know which ads are delivering and which ones are just wasting money.
We can take it a step further by gathering feedback directly from customers. For example, you might browse some of your competitor’s products and read customer reviews to gauge what this market might want that they are not getting. This is a great step to take when developing a new product or service.
But it always comes back to developing marketing campaigns that are easy to measure. This one step alone will help you get the most of your marketing budget because you’re able to tweak it to be more efficient.
New Opportunities are Plentiful if you Know Where to Look
That’s the greatest lesson that you can learn as an entrepreneur. Market research is the tool to finding these opportunities. Without it, you’re just wishing for success. Those who find success are those who get out there and look for it – not those who simply wish for it.
What type of research works best for your business? Leave a comment to let us know!