You’ve probably heard about market research a million times now. That’s because every business needs to conduct successful market research to get a proper understanding of their customers, prospects, suppliers, competitors, and many other factors.
Several essential elements like competitors, potential customers, and other market players, when combined, make up a market. You need to effectively research this market to spot customer perspectives, buying patterns, and market trends to stay ahead of the curve.
According to Uplers, 90% of the agencies that saw an increase in leads were actively spending on market research via multiple channels. Out of those, 29% were small-scale businesses.
Successful businesses conduct market research for various purposes, including:
- Identifying potential customers
- Learning more about existing customers
- Uncovering new markets
- Analyzing the level of competition.
- Make informed decisions with their products and services.
At this point, you probably find market research a bit overwhelming and obscure.
But the benefits of market Roulette research lie in making sense of this obscurity. We will take this opportunity to separate fact from fiction and give you a crystal clear picture of how successful market research drives business growth.
You can’t base research on just hypotheses and assumptions. That’s a recipe for disaster right there. Instead, learning from customers is the best way to go about it to respond to their needs and wants. After reading this blog, you’ll understand how this works and how you can have a kickass market research program to make your business grow.
What do you mean by Market Research?
Market research can be defined as a process that aims to determine the viability of a product or service in a specific market with the help of research conducted directly with potential customers. The market research also allows the organization to better understand its target market by uncovering opinions and insights from customers about their preferences and interests.
Market research can either be conducted by organizations in-house or outsourced to other organizations specializing in market research.
Importance of Market Research
We earlier mentioned that market research questions provide important data for different operations like product development, marketing campaigns, sales pipeline, and more.
But to what extent?
Let’s break it down to individual processes and understand the impact customer insights from your market analysis survey can have on them:
To Know Your Target Market
Understanding your target audience is the fundamental aspect of market research, be it a new target market or existing customers. If you know what marketing research survey questions to ask your target market, you can identify different customer types’ unique traits and preferences.
The data can help you segment the users based on demographic, psychographic, geographic, and other attributes. These include their behavior, purchase preferences, age, location, habits, delights, frustrations, and more.
You can then create various customer personas and fuel your sales strategies to maximize ROI.
Case study – How Avis increased its revenue per customer
Avis, a leading car rental company, was looking to enhance customer experience by offering useful car add-ons like navigation systems, child seats, insurance, etc., to customers with their booking. So, it reached out to AWA Digital to find a way to promote these products and increase its sales.
AWA digital implemented customer research campaigns using targeted surveys to determine which add-ons were popular among the customers and why.
Using these insights, the team added an interstitial pop-up just before the booking page to show relevant add-ons to the customers.
This simple update dramatically increased the sales of add-on items and helped Avis generate more revenue per customer.
Read the entire case study here.
2. To Plan the Product Roadmap
A product roadmap is a visual representation of the current status of your product and planned updates over time. It shows a high-level summary of planned activities and priorities for different teams to take the product to the next level.
Steve Jobs famously said – “You’ve got to start with the customer experience and work backward to the technology. You can’t start with the technology then try to figure out where to sell it.”
And market research helps to align your product strategies with customer demand. Using targeted marketing survey questions, you can gauge what new features or functionality customers want to see in your products.
It helps to plan product development strategies based on customers’ consensus to prioritize the ideas that can have the most impact on customers and replace intuition-based approaches with data-backed decisions.
Customers’ demands change with market trends and technological advancements. That’s why your product map also needs to evolve constantly with time to reflect these changes in your product development cycle.
By designing targeted market research questions to ask the customers, you can uncover their expectations to deliver optimal product solutions.
That’s what our next case study demonstrates.
Case study – How customer research drives Twilio’s operations
Twilio, a cloud communications platform places customer discovery and research at the core of their product development strategies. It helps its teams to anticipate customer needs in a constantly changing market.
Lack of time and budget are the two biggest challenges that the company faces in its product development cycle. So, the team uses a targeted market research questionnaire for a product to understand the challenges the customers face today and the ones they will face tomorrow.
With an abundance of ideas and no time to test them all, the feedback data from surveys is used to prioritize the hypotheses to run the tests. It makes the process more efficient and effective in producing positive results.
This data-backed approach is used across 18 different teams at Twilio to release new functionality every week and deliver optimal solutions to the clients.
Read the complete case study here.
3. To Reduce Acquisition Costs
Your customer base consists of multiple customer segments with different preferences and purchase potential. That’s why you cannot sell to everyone and need to find the right audience for your products.
If an acquired customer doesn’t bring in more revenue than it costs to acquire them, it will increase your acquisition costs over time.
We don’t want that, do we?
For example, let’s say you are targeting the entire market population using the same campaign. If your acquisition cost per customer is $300 and you acquire 20 customers from one campaign, you need to make more than $6000 to register profits.
The difficulty is you don’t know about these customers’ purchase behavior and capacity, so you cannot be sure if you will reach your goals. It adds unnecessary risks to your marketing ventures.
But, if you were targeting a specific segment with high income, regular shopping habits, or proven history of brand loyalty, You can obtain better results.
Now, the question is –
How will you separate these potential long-term customers from one-time buyers and high-value targets from other segments?
One way to do this is by building customer personas using the data from the market research survey questions. A buyer persona defines different attributes of a particular customer segment so you can hone in on the right audience to funnel your marketing efforts.
Here’s what a typical persona includes:
- Target regions
- Target demographic (age, marital status, gender)
- Ideal psychographics (hobbies, social channels, activities they indulge in, goals)
- Preferred interaction channels
- Favorite brands and products
- Total revenue till date
- Estimated lifetime value
Once you have a clearer picture of different customers, you can find high-value prospects with the potential to be long-term customers looking for product solutions that your business offers.
You can then design the correct pitch using the market research data to bring in these customers and control the overall acquisition costs.
- Plugin the demographic and psychographic data into CRM software like BIGContacts or Salesforce to convert high-value targets.
- Use your CRM to create segmented lists of prospects based on estimated value, location, current status, and more. Then target these groups individually with personalized value propositions to increase conversion rates.
- Identify their preferred mode of communication and technographic inclinations to find the right opportunities to pitch your product offering at the precise moment.
Even if acquiring and retaining such customers costs more, their overall revenue can balance the acquisition costs to deliver higher profits.
4. To Design Targeted Marketing Campaigns
By knowing how your target audience behaves and interacts with your business, you can find the exact opportunities to target them with personalized campaigns.
- You can use mail campaigns to target website users with app-exclusive offers to encourage them to download your app and improve app adoption.
- Add in-app broadcast messages about upcoming offers, exclusive membership benefits, and other incentives for new users to push them towards the end of the funnel.
- Create multiple landing pages to target different customer types.
- Design location-based ad campaigns with personalized value propositions based on audience preferences and problems at each location.
Case Study – How Canon’s campaigns generated 700% ROI
AWA digital was tasked by Canon, one of the biggest electronics companies worldwide, to assess and increase the demand for their products in different geographies. So, the AWA team conducted customer research using target market survey questions and discovered the following attributes about customers’ purchase behavior and reservations:
- In some regions, people were reluctant to spend money on a Canon camera as they weren’t sure if Canon was an authoritative brand.
- In other regions, authority was not as important to the users.
Using these insights, AWA optimized the ads campaigns’ messaging for different locations to include what consumers deemed important purchase factors.
With in-depth customer feedback, Canon generated an overall ROI of 700% in all regions using personalized campaigns to target the audience.
5. To Improve Brand Awareness
Whether you are into soft drinks or not, You probably would have heard of Coca-Cola’s 2011 Share-A-Coke ad. This single campaign put the Coke brand back on the map and reversed the 10-year steady decline in sales in the US.
Coke understood what motivates their customers and delivered a product offering that appealed to the masses to increase its brand equity- the excitement to get a Coca-Cola bottle with their name on it.