Why Market Research is Vital for Business Success
Market Research is the process of collecting, analysing and interpreting valuable information about a market, its consumers, competitors, and business environment in general, with the aim of making effective marketing decisions. It is the research that extracts the data about “what” consumers or markets do, in order for a business to formulate insights into “why” consumers behave the way they do toward a brand.
As a business, using quantitative market research methods such as telephone surveys and questionnaires can prove to be vital to its success. In today’s competitive fast paced world where market trends are constantly changing, staying on top of these is essential to gain and retain a competitive advantage. In addition, market research helps a business gain information around the following:
- Market Information: Research can provide insightful information regarding market size (in terms of number of customers) and market segmentation (in terms of demographic, geographic, psychographic and behavioural factors). These can help redefine your target audience.
- Insights Into Existing Customers: Research can provide insights into customer decision making triggers such as;
- Why do customers choose your products/services as appose to competitors?
- What value do customers get from your products/services?
- What factors influence your customers buying decisions?
- Is there a key decision factor i.e. quality of product/service, price, social status?
- Identifying Potential Customers: Market research insights (extracted from the above two points) can help a business identify potential customers they had not previously been targeting.
- Customer Needs: Market research can help you better understand your customers actual needs and wants, not what you think they need and want. This can help you develop your products/services accordingly and make any necessary modifications.
- Competitor Analysis: Research can provide you with information about your competitors from asking questions such as if the consumer used a competitors product/service before you and if so why did they switch.
- Identify Business Opportunities: Market research can help identify market changes or any gaps in the market to open opportunities for business development and growth.
- Resolve Business Problems: Research can help uncover the root of a business problem, i.e. decreased sales could be due to a new competitor or new substitute product/service.
Market research can ultimately help a company by uncovering valuable insights which can aid the development of business strategies. It can assist with decision making in relation to product/service pricing, distribution and logistics, marketing, and new product development. It leads to enhanced customer satisfaction and loyalty through improved customer communications. Furthermore, it minimises risk through precise analysis of understanding and meeting customer demands. Here at Call Pageboy, our research team and telephone survey unit has extensive experience in conducting telephone market research. We design the questionnaires suited to the sector in which a business operates, and our highly trained staff collate the feedback. If you are looking for deep and meaningful customer insights though market research, contact us today for more information.