As noted by Dun & Bradstreet: “No matter what size or type of business you run, performing market research is critical to your overall success, as it serves as the foundation of your entire business strategy, from sales and marketing to product development.”
This is accurate advice and wise counsel. However, for some businesses -- particularly new and smaller firms that are focusing relentlessly on maximizing cash flow and generating revenues -- the idea of market research may still be on the “want list” instead of the “need list.” Knowing when an optional investment becomes an essential requirement can be challenging and difficult to define.
With this in mind, below we highlight three scenarios that signify for businesses that they truly need market research:
1. You need to have a clearer picture of your target audience.
There can be -- and often is -- a categorical difference between a business’s customers, and its target audience. Customers are individuals or other businesses that purchase a product/service. However, a target audience is comprised of the most valuable, sustainable and profitable customers that a business could be selling to; but may not necessarily be doing so.
As a result, many businesses fail to exploit their revenue and profit potential -- and in some cases, go out of business altogether – because they incorrectly assume that their known customers are also their full target audience. Yet in fact, there are other customers in different sectors, fields, industries and roles that could directly or indirectly facilitate more sales.
Ultimately, this means unless a business has done a rigorous analysis of its marketplace (i.e. if it has done true market research in the recent past), then it almost certainly does NOT know what its real target audience looks like -- and is leaving revenues and profits on the table as prospective customers head to the competition.
2. You need to accurately assess the viability of launching a new product or service.
If there is a central theme that runs through business history, it’s that having a great idea is obviously a critical part of the success puzzle, but it’s not enough! There has to be a marketplace demand, or if necessary, an awareness campaign that primes a marketplace to get interested and excited about something new.
Market research captures, analyzes and reveals scientifically-based, bias-free data that help you objectively decide whether, how and when to launch a new product or service. It is the map that connects you with your target audience and ensures that your great idea is the basis of a success story -- not a cautionary tale.
3. Inferior competition is eating your lunch.
Many businesses have a clearly superior solution than some (or perhaps all) of its competitors, and yet instead of creating a healthy sales pipeline, they discover that the competition is, proverbially speaking, eating their lunch.
Market research is the ideal – and frankly, the only – way to dig below the surface, and identify where and why prospective customers are “going dark” in the sale funnel, and why potential new customers are seeking inferior solutions elsewhere. This actionable intelligence can be applied to product/service messaging, sales processes, customer support policies and more to generate more sales and growth.
Learn More
If your business is facing any or all of the above scenarios, then contact the Communication For Research team today. Our co-CEO Colson Steber will help you decide if market research is the right tool for you to reach your business goals. Plus he will also help you determine how you may wish to proceed based on your specific goals, variables, timeline and budget.
For more information on the value of market research and how to communicate this to your clients, download our FREE eBook:
