It is a well-known fact that the most successful business is a dynamic one. Adapting to changing times, integrating latest technologies, and analysis and improvement of the product are key to ensuring that the business is always moving forward.
There is one aspect of business, however, that trumps everything else – a hand on the pulse of the customer. Unless a business constantly evaluates its customer’s feedback, it will not be able to tailor its product or service to suit the market’s need.
Enter, market research
This is where market research’s pivotal role shines through. Through various avenues, market research companies (or in-house market research) can bring back a treasure trove of data. With the right analysis, this can lead a business to greater heights – both by understanding customer requirements better and by help creating a better product.
Communication channel
By contacting customers for research, businesses establish a communication channel with them. This gives the customers a sense of comfort that their grievances, if any, will reach the desired ears; the company too is made aware of ways in which their product or service affects its customers.
Opportunity identification
Of course, any type of communication leads to a deeper understanding of any relationship – especially of what is missing. This creates a perfect opportunity for businesses to identify areas where new products or improved versions of existing products and services can be researched.
Market research, helps in not only identifying the above but also in helping to shed light on new geographies and demographics where the company might consider expanding.
Competitor positions
Some research, especially those that are generic, helps bring to the attention of companies the positions of their competitors in the market. Say, a company manufactures nail polish targeted at teenage girls. But, through a generic market research they find that though their product has better staying power, customers preferred a competitor’s brand, because it smelled better.
This is the kind of information that will give any business an edge over its competitor.
Future planning and risk minimization
Armed with the knowledge of the pulse of the customer, their likes and dislikes and any gaping hole in the market or even a potential niche market, companies can work on diversifying their portfolio, or their products and services or even choose to stay where they are.
The future is never guaranteed, but market research can help businesses to have more meaningful and intelligent future planning, thereby reducing risks considerably.