A lack of informed decisions can cause entrepreneurs to make silly mistakes or huge blunders that can destroy their business operations, reputation, or finances. However, many company owners ignore market research to save money and make quicker choices. Yet, you might wonder if your new or established business is making the right decision by ignoring various demographics’ opinions and industry insights. Keep reading to find out if market research guarantees success.
A Target Demographics’ Wants and Needs
According to a Fortune survey of failed startups, 42% of founders believed the biggest reason for their failure was “a lack of market need for their product.” If no one wants your brand’s product, you can trust you will struggle to build a loyal social media audience, generate clicks to your website, and secure product sales. You might believe your company is filling a gap in the market, but your product might miss the mark, be overpriced, or lack the quality or features your target demographic demand.
Market research will provide insight into your target audience’s wants and needs, which can prevent wasting your time, money, and energy on a product no one wants. Also, you can learn more about your demographic at a much quicker pace by reaching out to the right market research company. For instance, you can analyze revenue trends, customer reviews, social media activity, and much more to make more informed business decisions.
Market research will not only provide a deep insight into your desired customer base, but it will allow you to learn more about your industry rivals. It is crucial to gain a firm understanding of your competitors’ goods and services, as it can help your business make more informed sales, marketing, customer service, and product development decisions. Conducting market research will help your brand accurately benchmark itself against its rivals for price, branding, and strategy to gain a competitive advantage.
Minimize Financial Risks
Every penny matters in business. Entrepreneurs will want to eliminate as many financial risks as possible to boost their company’s revenue and net profit. Generating more accurate data can help a business take more calculated financial risks, as professional market researchers can collect extensive data on media coverage, social media activity, key product features, product offerings, and much more. As a result, a brand can instantly find an answer to a financial question or a solution to a problem. After all, the information isn’t only based on fact, but it can provide insight into social and behavioral science to create more informed customer journeys and develop products and services that better match a demographic’s needs and finances. Rather than viewing market research as an unnecessary expense, you must see it as an investment in your company’s finances and future.
Nokia is a prime example of a major brand that could have benefited from more in-depth market research. Despite being the bestselling mobile phone brand in the world in 1998, the company failed to identify and react to sudden market changes, resulting in them being overtaken by more forward-thinking technology companies, such as Apple and Samsung. Nokia was too late in its research and execution, paving the way for more innovative businesses to dominate the sector.
Market research will provide a clear vision for your brand’s future, helping it to adapt to shifting consumer behavior, industry changes, and market trends. After gaining insight into your sector, it is your company’s responsibility to adapt quickly to remain relevant to your target demographic and enjoy industry longevity. If you don’t, your business could suffer a similar fate to Nokia and many other small and large brands.