Businesses that thrive are those that conduct important research and preparation, including making a solid business plan, incorporating marketing methods, and utilizing market research. Successful market research can improve your company’s sales through familiarizing yourself with your potential customers, understanding what consumers are looking for, and being aware of your competition. However, when you make any of the following six market research mistakes, you can do the opposite and negatively affect the success and future of your business.
Take note of these six market research mistakes, so that you can avoid them:
1) Not Researching Market Research Firms – It may seem redundant, but as a business owner, you should research the market research firms you are thinking about doing business with. Rather than choosing the first market research company you come across because of promises they claim, look elsewhere and gather a collection of firms to consider. Research each one including their reputation and success rate, and don’t spend your entire market researching budget on the first flashy firm you come across.
2) Not Researching Competitors – Whether you like it or not, you are in competition with every business selling similar products or services to your own. By not researching your competitors, you are missing out on the opportunity to find out more about the businesses you are competing against, such as their products, pricing, customer service, reputation, and marketing strategies. This information is beneficial when deciding how to stand out from your competitors.
3) Not Using a Solid Research Tool – Choose your research tools and materials wisely. Avoid market research tools that will take too much time and money, and focus on the more efficient methods. For example, surveys lend a unique perspective on market research as you get unbiased and honest responses in regard to your queries. You can also start a focus group with your expected customer demographic in order to get their opinions and suggestions. Research tools using Internet provide a quick and efficient way of conducting market research that is doesn’t cost a lot of money or time.
4) Not Being Aggressive Enough – Be aggressive in your market research efforts that involve consumer participation such as questionnaires, comment cards, or surveys. If you notice you are not getting as many responses as you like, try a different method in order to encourage participation and therefore increase the success of your market research.
5) Not Using Multiple Sources – While you may have found a reputable and informative source for your market research, limiting yourself to this one source can actually harm your researching efforts, and is another common market research mistake. Incorporate more than one source of conducting research for your business. If you have found the Internet to be a great resource, expand this by having online surveys as well as well as online focus groups.
6) Not Using Market Research Results – Take advantage of the market research results you have compiled, rather than putting it on the back burner and not making the most of it. The purpose of researching the consumers and your competition is to gather pertinent information that will help your business succeed and thrive; if you choose not to use the results, you are hurting your business rather than helping it.
Market research is an important step in growing a successful business with a large client base and honorable reputation. The information you receive through your researching efforts will offer information and insight into your potential customers and clients, as well as learning how to beat the competition.