If you took the time to read memoirs or advice columns written by leading entrepreneurs and business moguls, it’s almost certain that you’d come across numerous references to giving the customer what they want. To succeed in business, you have to get customers on side and keep them there. If you’re setting up a new business or you’re trying to grow your company, it’s so important to get to know your clients and to have an in-depth understanding of the market. Here are just some of the reasons why market research is a must for every aspiring businessperson.
Is there a demand?
The last thing you want to do when you start a new business is invest blood, sweat and tears in something that isn’t going to succeed. To hit the big time, there has to be a demand for whatever you’re selling or offering. If you’ve got a product ready to hit the shelves, but you’ve received negative feedback from consumers, or there is already a raft of similar products on sale, this doesn’t bode well. Before you take any further steps along the road to launching a startup, make sure that there is a market there for you to tap into. Is your product new? Or does it offer something different to similar items that are already out there? Is there a USP? Are competitors doing well?
How can you reach your target market?
It’s all very well knowing who your target customer is, but do you know how to reach them? You may be aware that your audience is aged between 18 and 30, they have full-time jobs in industries like finance, education, healthcare and PR and they earn around $20,000-$50,000 per year, but do you know which marketing methods to use to make an impact? Use research techniques and analytics to see how people respond to marketing material, find out more about how consumers shop and see how potential clients prefer to be contacted. You may find that people are much more likely to share a Facebook post than they are to open an email, for example. Once you have useful information, you can use it shape your marketing campaign. Investigate printing and mailing services if you want to post flyers or newsletters through doors or look into working with an SEO agency if you’re keen to drive sales online. Bear in mind that results you obtain from market research before you launch may not be relevant a year or two years later. Continual research is always beneficial.
How much are your customers willing to pay?
You don’t want to entice buyers and then put them off with a price tag that they either can’t afford or doesn’t compare favorably with competitors. You need to get your pricing strategy right, so ask questions about how much people would be willing to spend and see what rival firms are charging. You need to make a profit, but you don’t want to miss the mark and drive customers towards the competition.
Whether you’re new to business or you’re overseeing a growing empire, it’s essential to understand your customer and to ensure that your business gives clients what they want.