Introduction
Say a new gadget hits the market. The company thinks it’s great, though it crashes. Why? They didn’t do their homework. That’s where market research enters the scene. Market research helps you identify what your customers need before you actually roll out that product. It’s super important!
Less risk means fewer failures. It also means better offerings and more innovative marketing. Read on for how to do it.
Step 1: Define Your Research Purpose
What do you want to learn? That is your research goal.
What is the Problem or Opportunity?
The first step is to identify the challenge. Are sales dropping? Does nobody know your brand? Identifying these issues is the first step.
Let’s look at examples. “Our sales this quarter are down 15%.” Or, “Not enough people know about our really cool new app.” These are well-formed problem statements.
Defining Your Research Questions
Have specific questions that will help you solve the problem. Instead of saying, “Let’s learn about customers,” be specific. Ask: “Who is the perfect customer for us?” or “What do they want that we don’t provide?”
How to Identify KPIs
KPIs measure your success. What numbers will tell you if your research succeeded? Perhaps you’d like to capture X more market share? Or set a goal of 90% customer satisfaction. Choose KPIs you can realistically measure.
Step 2: Identify Your Target Audience
Who are you trying to reach? Know your audience!
Creating Buyer Personas
Create fictitious, yet believable, customer profiles. Give them names, jobs, hobbies. What do they like? What makes them tick? This helps you know who you’re selling to.
Segmentation Strategies
Segment your market into groups. Perhaps by location, age or interests. This helps you focus your efforts. For example, you might have one target group of young, tech-savvy customers and another of older, more traditional customers.
Determining Sample Size
How many people should you ask? Too few, and your results become unreliable. Too many, and you’re wasting time. Use a sample size calculator. Consider how confident you want to be and how much error you can tolerate.
Step 3: Select Your Research Methods
How will you gather information? There are lots of ways!
Primary Research Methods
This means doing your own data collection. Includes surveys, interviews, and focus groups. Surveys get lots of responses. Interviews provide depth. Focus groups offer collective perspectives. However, primary research requires more time and cost.
Secondary Research Methods
Use existing data! Search for reports, studies and databases online. The Pew Research Center is a great source. Secondary research is generally less expensive and quicker. However, the data may not be precisely what you need.
Qualitative vs Quantitative Research
Qualitative research explores ideas through interviews and focus groups. Quantitative research deals in numbers through surveys and statistics. Qualitative helps you understand why. Quantitative gives you measurable data.
Step 4: Gather and Evaluate Data
Time to get to work!
Designing Surveys and Questionnaires
Keep surveys short and sweet. Use clear language. Mix up question types. Avoid leading questions.
Conducting Interviews and Focus Groups
Prepare questions in advance. Be a good listener. Take notes. Guide the discussion.
Data Analysis Techniques
SWOT analysis examines strengths, weaknesses, opportunities and threats. Regression analysis finds relationships between variables. Sentiment analysis detects feelings in text.
Step 5: Report Findings and Take Action
What does it all mean?
Identifying Key Insights
Discover the key points. What surprised you? What patterns emerged? Turn data into action!
Creating Market Research Reports
Begin with an executive summary. Explain your methods. Share your findings. Draw conclusions. Make recommendations.
Visualizing Data
Use graphs and charts to show your results. Make data easy to understand. Visuals are excellent at driving your point home.
Step 6: Execute and Measure Results
Put your research to work!
Developing Marketing Strategies
Apply what you learned to market your product. How should you position it? What price should you charge? Where should you advertise?
Tracking Performance and ROI
Did your marketing work? Monitor sales, web traffic, and customer response. Calculate the ROI on your market research investment.
Refining Strategies
The market always changes. Keep an eye on trends. Be ready to adjust your approach as needed.
Conclusion
Market research might seem like extra work. However, it helps businesses make smart decisions. It’s useful for businesses of all sizes! So follow these steps and research your market today!
