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Making your Business Profitable Through Market Research

Business market research

Having a successful and profitable business has a strong root in knowing your business as a whole from your customers to your competitors and also your market environment.

Hi everyone my name is Timileyin and in this post, I will be sharing with you ways to make your business profitable through engaging in market research.

I won’t assume that everyone here knows what a market research is, therefore a market research is an activity that involves getting tangible information about your customers’ need and taste, your competitors’ strength, weaknesses, opportunities and threats (SWOT analysis).

Market research is one of the first things to do especially when you are just starting off your business, it is also useful to already established business to solidify their grounds in their market space.

Let’s understand why a market research is necessary.

A market research is necessary for the following reasons which are as follows:

  • To examine the preference of customers on certain new products or services

  • Helps to find out if the business is liable to succeed after a period of time given the presence of some conditions

  • Assist to keep an eye out for new developments and trends in the industry so as to tell the kind of strategy that will be adopted.

  • Helps to enhance customer relationship

  • To ensure they out smart their competitors in terms of prices, discount, quality and quantity

  • To help carve out new ideas that can lead to new businesses and ultimately generate extra cash inflow

  • To help come up with the best approaches to promote your business brand through different marketing strategies.

Now that we have understood why a market research is necessary, let’s understand how a market research is conducted. Below are some of the ways to carry it out.

 Customer Reports

Reports are gotten from customers through surveys or questionnaires either via online or personal platforms.

Traditional methods such as phone calls, or going personal has gone out of date and aren’t as effective as before but instead approaches like creating a google document where your customers can fill a customers’ feedback form and answer some of your questions are the best approaches to use to get maximum results.

Web Prominent Businesses

These type of business use their resources which is the internet to get customers view about your business and the services you render.

This type of market research doesn’t cost much or anything because it can be done via social media platforms and this is something anyone can have without paying for it.

Social media such as Facebook, Twitter, Instagram and so on.

This approach can sometimes prove to be ineffective because people who aren’t even active customers can place derogatory comments or remarks which then can affect the business in a negative way.

Focus Groups

A focus group according to Wikipedia is

“a small, but demographically diverse group of people and whose reactions are studied especially in market research or political analysis in guided or open discussions about a new product or something else to determine the reactions that can be expected from a larger population.”

They receive information that are valid and are mostly done online since the world is now in an advanced stage. This market research strategy is also a very inexpensive approach.

Direct Observation

This approach is very simple and natural seeing that it has to do with just taking note of how customers physically respond to different products and services.

There are quite some things to take note of when conducting this survey and one of them is to protect the privacy of your customer(s).

When trying to protect your customers’ privacy, you need to make them understand that when you’re performing a video observation on an individual, that individual will be aware of that but if it’s a crowd, then there’s really no need for them knowing.

As much as direct observation seems like the right and best approach, it is time consuming.

It seems to be the best approach in my perspective because it enables the business owner to see the customers react in their natural forms and not when they are actually being told to fill any form.

Most businesses especially large ones give their market research out to professionals but as a small business, you can’t afford to but following the how’s can actually help you get your head around it.

Good luck in your business and marketing research.

Read, practice and share

Regards.

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