4 Important Steps to Do Market Research
When you launch a new business, some risks or probabilities are associated with it. You spend weeks or months in order to build your business by providing good products and unique experiences to users. However, you need to do adequate market research to achieve the desired result.
The failure of a business is based on several factors. But, the main reason is not to understand the market demand. This happens when you don’t do market research. That’s why you should do proper market research before launching a business. This is necessary to understand the customers’ demands, their preferences, and other similar things. In this way, you make continuous improvements or development to improve your business.
It is very easy to do market research and can be conducted at any step. In this post, we will explain to you how to do adequate market research without getting the help of professionals. This approach is called lean market research.
Market research uses different techniques to get data about the market, such as the current market condition and target customers. The primary purpose of doing market research is to find your target consumers and their demands. It is a great way to boost your business by targeting the needs and demands of your target audience. Businesses and companies use market data to improve customer experience, redesign their marketing strategy, and design new products. With these factors, a company can improve its conversion rate and can give tough competition to its competitors.
Why is Market Research Necessary?
Without market research, a business or brand cannot understand its customers. You need to understand their requirements to earn loyalty and build a solid customer base. Below, we have mentioned some important factors that explain why you should conduct market research.
When you do market research, you understand your customers. As a result, your customers will feel special when you specifically target them. This will help you to earn their loyalty. If you don’t focus on them, you will start losing your loyal customers and will be unable to find potential users.
Analyzing the market is also important just like researching the market. It is important to remember that both terms have different meanings. With research, you can find out “why,” but with analysis, you get “what”. With analytics, you can find out that your loyal customers are leaving you but with market research, you can find out why they are leaving you.
You can clear all the doubts about your business by doing effective market research. Bad decisions are one of the biggest reasons for not conducting market research. By conducting market research, you can focus on your target customers and can find out new ways to improve their experience.
No matter how amazing you are, you and your team cannot effectively determine the customer’s needs. You have to do market research because it has the ability to give you the right data or information about your target audience. In this way, you can save your time on speculations. You can make substantial changes to satisfy your customers and can save your time, money, and effort. In a nutshell, market research is precious for businesses and companies.
Benefits of Market Research
Lean customer experience is basically a model to efficiently and quickly understand the demands of your customers. It allows you the chance for continuous improvement and tests several new features. There are so many advantages of lean market research. Below, we have listed some important ones:
1- It allows you to focus on your customers quickly and efficiently.
2- It is very affordable as there is no need to get the services of a professional.
3- It helps you to gain a competitive advantage over others because it provides powerful insights and useful market data.
4 Effective Market Research Techniques
There are so many methods and techniques to do effective market research. Collecting market and customer data is the main purpose. In this post, we will learn four important market research techniques or methods: customer observation, interviews, surveys, and focus groups. We recommend doing market research using different techniques. Don’t stick to one or a particular market research method.
You can choose any method according to your business type or target customers. Online businesses are quite different from SaaS businesses. So, it is vital to follow the right method to do market research.
Surveys generally contain open and closed-ended questions. It is qualitative research in which a business asks respondents to answer a particular question. They can be sent via email or can appear on screen in the form of a questionnaire. Without any doubt, surveys are the most effective techniques to do market research.
Why are online surveys so popular? There are so many reasons behind the popularity of surveys. They are affordable, easy to conduct, and very effective. They help to collect data quickly and efficiently. The data obtained from surveys is authentic. As a result, a company or business can revamp its market strategy based on collected data.
A company can take so many advantages by arranging one-on-one meetings or interviews. One-on-one conversations are very effective when it comes to getting market data or customers’ data. You can interview your target market’s members for deep and insightful data. With interviews, you can notice their non-verbal as well as verbal cues. These days, Zoom meetings or discussions are very popular if personal sessions are impossible. No matter how you conduct an interview, it provides you the complete data on the members of your target market.
Why are interviews so compelling? When you interact with a person directly, it gives you a complete idea of your target customers. You get their experience and useful data. You can produce so many great results by conducting interviews.
Focus groups are crucial for a company because they can help bring qualified and deserving people to help the company in the achievement of its business goals. They conduct product research along with customer research in order to gain deep data or insights.
Why are focus groups so dangerous? Focus groups are not the best method to conduct market research if you are a new business or company. Moreover, it is expensive and requires so many resources, which takes time and money. The chance of error is also huge in this type of market research method.
A company and its particular employees monitor the users’ engagement with their company’s products or services.
They can also observe customers’ engagement with the competitors’ products. It is called customer observation and is a helpful market research technique.
Why is customer observation so practical? Customer observation requires some resources and tools to analyze customer engagement with the products and services. In this method, you analyze how people react to their products. In this way, they get useful data that helps a company to redesign its market strategy. This method of market research goes well with surveys and interviews. That’s why it is a very clever and powerful technique.
How to Do Market Research in A Lean Way?
When it comes to conducting market research with a lean approach, the following four steps would help. They would help you identify your target audience and their requirements.
Create User Personas
The demographic and psychographic data of the people who use similar products that you offer are called user personas. It is basically semi-fictional data that is based on people’s interests. To create user personas, you can conduct surveys and interviews to observe and understand your target audience. A company should contain the following questions in its surveys and interviews:
Who are their main customers?
What are their goals?
What is the key hurdle to obtaining this goal?
Things to Avoid:
Don’t ask irrelevant questions (five or less than five are okay).
Feel free to ask demographic-based questions.
Do Observational Research
Observational research involves the data of your customers and how they interact with your products. There are two types of observations:
In this type of observation, you tell your customers that you are watching them and how you interact with the products.
In this type, you secretly observe your customers without letting them know.
Things to Avoid:
Don’t record audio or video whether you are doing overt or covert observation.
Don’t fear to tell them that you are observing them to improve the company’s services and offerings.
Conduct Individual Interviews
Conducting interviews is one of the most effective steps in the whole process of market research. You can have one-on-one meetings with individuals from your target customer segment. In this way, you can get insightful and robust data. In order to conduct interviews in the right way, the following tips can help.
Conduct interviews professionally.
Ask questions that start from why.
Record the interviews.
Things to Avoid:
Don’t ask irrelevant and leading questions.
Don’t ask future-based questions.
Analyze the Data
After conducting the three steps mentioned above, now is the time to analyze the available data so that you can make a conclusion. Remember that your main motive was to collect useful and actionable insights. You can make a flow model to make things easier. You can easily understand your customers’ needs by creating a simple flow model.
5 Important Market Research Questions
If you want to understand your customers on a deeper level, the following question can help. They are simple but very effective questions.
Who are you?
You should know your customers by asking who they are. This is the most relevant question to understand your target audience. In this way, you can easily understand their ages, genders, races, education, and professions. After this question, you can ask some relevant questions as well. You can change this question depending on the type of your business.
What does your day be like?
In order to understand your customers’ day to day life, this is the most relevant question to ask. You can get some relevant information by asking this question.
Do you purchase our products?
This question should consist of yes or no.
What is your goal?
By asking this question, you can understand your customers’ ultimate goal or what they are trying to achieve.
How Do You Achieve Your Goal?
This is another most relevant question. This question will certainly give you an idea of how your customers solve their problems by buying your products or services. It will help you to understand your customers closely. You can understand their perspective and requirements as well.
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