Market research is the starting point for any business strategy. With market research, you can launch a new product, break into a new market, or understand your customers better.
Doing thorough market research to support your business decisions means that you are basing your decisions on data and keeping your customers at the forefront of your business decision.
Below, we outline how to conduct market research for your business, step-by-step.
1. Determine your objective
Before you get started, you should state the problem, or opportunity, that you want your market research to address. For example, are you trying to test out a new product, explore a new market, or measure customer satisfaction? Stating your objective will guide the rest of your research and keep your focus on your goal.
2. Create Your Research Plan
Determine what type of information you are looking for, and which methods of research will provide that information. Some common methods include:
- Surveys: quantitative, broad, type of information using forms online, phone calls, and in person questionnaires for individuals or groups.
- Focus Groups: qualitative, feedback from small groups of individuals who represent your target market.
- Interviews: qualitative, one-on-one discussions to get deeper, but still open-ended insights.
- Social Media Listening: listening to customers’ conversations about your brand and competitors online.
- Observations: getting an understanding of customers in a real-world setting to discover behaviors, patterns, and preferences.
3. Define your audience
When developing your research, you will want to create in-depth buyer personas or fictional representations of your target population including demographic information, behaviors, challenges, etc. This element will help you recruit appropriate participants and will ensure your information is consistent with your business objectives.
4. Collect and Analyze the Data
Begin by collecting data from your research methods. You’ll want to collect both quantitative (numbers, statistics) and qualitative (opinions, motivations) data to give you a broad basis for reliable findings.
After collecting your data, it is time to analyze your data looking for patterns, trends, and insights that can be actioned. You can use a number of tools including spreadsheets and analytics platforms, or AI based analysis to help you with your discovery of key themes and customer needs.
5. Analyze the Competition
You should also conduct a competitive analysis to find out where your competitors are strong, weak, and how they fit within the market. This may indicate where there are gaps in the market, possible opportunities, and how they operate to engage your mutual audience.
6. Summarize and Report Findings.
Compile your findings in an organized, actionable report. Summarize key findings, market trends, customer pain points, and recommendations. Consider using visuals like charts and graphs to convey your findings to the stakeholders.
7. Execute
Put your research into action to inform your business decisions, whether that’s improving your product, refocusing your marketing, or looking for new avenues for growth. You can only add value to your business through market research if you take action.
Market research can mean defining the goals of your business, the methods that will resonate with your potential buyers, knowing your audience, and acting on what you find. By establishing a process that you can follow for market research, you can prepare your business to meet customer needs, diagnose future business opportunities, and into make more knowledgeable business decisions.
