Why Market Research Is So Important To Your Company
Why Effective Market Research Is So Important For Your Company
Market research is simply the systematic collection and analysis of data about the target market, competition, and environment in which your company operates. The end goal of market research should be to improve and increase your understanding of each of these factors.
Where is it used?
Everywhere! Let’s talk about just one somewhat hard-to-measure factor that affects business profitability: customer satisfaction. Although it is extremely hard to measure, customer satisfaction is something measured by hospitality companies using market research to determine the level of satisfaction and the overall experience of their guests. Healthcare companies use everything from patient records and insurance information to health plans and patient histories to develop smarter health solutions at lower cost and to be better positioned to provide critical treatment options and to make important medical decisions literally on the fly.
Market research is of great benefit to many other types of organizations as well. For example, a never-ending challenge faced by governments is lowering costs without compromising quality or productivity, something they tackle using questionnaires and interviews. Law enforcement agencies constantly struggle to fight crime with often limited resources, and this is something they try to overcome using experimental tactics designed on the basis of real-life police data. And retail companies strive to provide shoppers with what they need, when they need it, and they are only able to do so using market data collected from loyalty programs, buying habits, and similar sources.
In all three examples, each organization relies on market research to develop a better understanding of all their relevant stakeholders, as well as to predict trends, promote products or strategies, and improve their bottom line by way of the big-picture view that market research gives them to make the right move at the right time.
What kind of information are we looking at here?
Some of the questions that market research can help you answer are:
- Where are my customers?
- How many are there?
- What do they want from my product or service?
- How does my product or service benefit them?
- How can I reach them?
Ok, I know what to look for. Now what?
Answering the questions above requires digging through data collected during market research, analyzing that data, and then trying to draw conclusions and gain insights from the information you’ve collected. Once you’ve collected reliable data on which you can base strategic decisions, the role of chance falls considerably, and you no longer have to leave anything to guesswork. The reason is simple: the right data analyzed the right way gives you the means to calculate with a measurable level of certainty what each of your actions will result in. This is something that gives companies, individuals, and decision-makers an incredible amount of power, but only if it is done in the right way.
What’s the right way to use market research?
The first step is collecting and analyzing data, but data also needs to be cleaned, sorted, and interpreted to be of use.
This is where we come in.
Our team of market researchers will help you:
- Break large-scale problems or case-scenarios into smaller and more manageable micro ones
- Acquire insights about what you’re doing right versus what you may be doing wrong
- Make critical strategic decisions based on historical facts and observable data, not on guesswork
- Rule out potential human biases in decision-making by relying solely on thorough statistical analysis
What are its benefits?
Here are some tangible ways market research can help you. It will:
- Help you better understand how your company’s marketing function works versus how it should work so that you can implement preventive measures when something isn’t working, or put more resources behind something that is working
- Help you identify trends, competitor strategies, and new opportunities by measuring the effectiveness of strategic decisions made in the past against the observed market response
- Help organizations minimize risk by only allowing decision-making based on statistical facts
You can use market research to monitor public sentiment, gauge the perception and reputation of your brand in the marketplace, and actively monitor and strengthen your social presence, launch effective, targeted campaigns, and improve your customer engagement.
If you aren’t investing in market research, you will lose out in more ways than you may ever be able to quantify. The better you understand your data, the higher your chances are of beating the competition. We help companies gather relevant data, assist with analysis, identify trends, gather insights, and improve their product offerings one step at a time. Our belief is that you can only make decisions that are as good as your intel, so investing in marketing research – and having professionals on hand who can help you understand and use that data – is the new field of strategic advantage.
Call us at 817-539-0727 for a private consultation today.