Market research – seek more…not less. Every small business owner/manager needs to embrace this recommendation. That’s because too often small business owners believe market research costs too much money and it’s only helpful to large businesses. There’s no denying the fact that large companies do benefit from market research. However, market research is just as critical and helpful to small businesses as well.
So, how does a small business owner tackle this “must-do” priority?
Embrace the Process
The attractiveness of market research is what happens after its completed. Small business owners who undertake market research certainly notice the results.
Market research can address the following questions for a prospective business owner looking to open a new business:
- Is there a market for this new business’ products or services?
- How large is the potential target market size?
- Is it an expanding or declining target market?
- Who are the competitors?
Now, for an already established business, market research can address the following:
- Is there an opportunity to provide additional products or services?
- How is the business perceived in the marketplace? Is it positive or negative?
- Are customers’ demands and needs being addressed by the business?
Attack the Expense
At first glance, small businesses shy away from market research. Small business owners assume market research will mean “lots of time and money.” The truth of the matter is that small businesses cannot afford NOT to oversee some form of market research. Needless to say, there are many market research possibilities which cost little to no money. Here are a few suggestions to consider:
- Speaking with current customers to find out from them directly what they need and want.
- Seeking ideas from existing and potential customers.
- Seeing what advertising works and doesn’t work by spending some money in your target market area.
- Emailing a short survey to your current customer base.
- Implementing in-business, inside your building questionnaires, comment cards, or digital response tablets.
- Studying the monthly sales and activity tendencies for the business.
- Establishing and evaluating the scope of the target market and its customer base.
- Learning as much as possible about the competition.
- Studying pricing of your product/service value compared to the competition’s pricing.
These ideas are only a few no-cost or low-cost market research options. Any market research pertaining to the business, customers, competitors, products, and services is a tremendous return on investment for the small business.
Review the Outcomes
Market research is the ticket for small business owners looking to have a firm grasp on what their current and prospective customer base wants or needs. With this information, business owners know what they must do with their products/services in order to keep their existing customers as well as entice potential prospects into becoming existing customers.
The results from these no-cost/low-cost market research opportunities must be reviewed by small business owners in order to generate future positive outcomes.
Know the Customer
Market research provides the necessary information for a small business to target its precise customer base. A small business which doesn’t do market research will waste its time and money on initiatives that “hopefully” will work. “Hoping” something will work is not a viable plan for success. Sensible marketing decisions lead to more customers and higher income. However, sensible marketing decisions don’t happen by accident. Market research results play a vital role with those sensible marketing decisions.
As pointed out throughout this article, market research does not require a huge amount of money or multiple time-consuming activities. What is important is that market research needs to happen, even if it occurs occasionally. Every business, small or large, needs to identify and understand its customer base. Market research is how a small business can accomplish this.
Therefore, some form of market research must be a top priority for EVERY business today. Market research – seek more…not less. Delaying research until tomorrow is not an option.
