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5 Reasons Why Market Research Is Important for Your Business

Outsource2Us share how market research can transform your business

 

Market research is the process of understanding what your customers want in your chosen market. It helps identify if there are gaps but can also solidify your thinking on a new product or service.

Armed with important information about your market, you will be able to create better products and design new services that meet the needs of your audience – doing your research is at the core of building a successful business in an already competitive landscape.

In case that isn’t enough, here are a few more reasons why you need to conduct market research.

1. It can validate market demand

More than 90% of businesses fail in the first 5 years. One of the reasons for this is that they fail to read the market correctly. According to Fortune, 42% of startups fail due to a lack of demand for their product or service.

No matter how good you think your solutions are, you can’t sell them if nobody wants to buy. Enter market research. Before launching a business, it is essential to do 2 things. One, validate the demand for your product or service. If no one wants what you have to offer, then it may be time to go back to the drawing board.

And two, start to create a baseline for future decision-making. Once you have a decent idea of where your business stands in terms of demand, you can use that information to guide future decisions about what to build and when.

2. It can identify target customers and create buyer personas

Market research is vital for every business because it helps you understand your customers and their needs, which is exactly the kind of information you require to create products or services that will meet those needs.

You need to know who your customers are and what they want from your business. You also need to know how much money they are willing to spend on what you have to offer. If you don’t know these things, it will be impossible to build a profitable business. Completing market research using your existing database allows businesses to gain these insights, but it will also provide insight into overall customer satisfaction. How happy they are with your brand, and their willingness to repeat purchase.

This research will then help you to create marketing materials that resonate with them as well as design winning content for your website and social media channels.

 

Give Your Business an Edge with Targeted Market Research – We Can Help!

 

3. It helps find your unique value proposition

Market research is the step-by-step process of figuring out what’s missing in the market so that you can demonstrate your uniqueness to your target consumer.

The first step is to identify what you can do better than anyone else. This can be done by looking at your competitors, the products/services, or even thinking about what you would like to see change in your industry.

Once you have identified what makes you different from other companies, you can create a list of problems that need solving. You can use this list as a basis for further research and analysis on how you can solve these problems.

For instance, your market research could tell you that brands in your industry eventually experience a lack of funding or technological issues, which makes it difficult for them to remain profitable and keep going. Based on this information, your team could develop a plan to overcome these obstacles before you set foot in the market and save yourself from potential losses.

4. Learn more about the competition

Understanding the competition is particularly crucial for industries where there’s often only room for a handful of competitors. By conducting competitive market research, you can learn about your competitors’ strengths and weaknesses and use that information to your advantage.

A very basic benefit of this is that if you are starting a new business, checking out what others are doing in your industry can help you decide if it is worth the time or money to move forward with your own idea.

5. Stay abreast of the market trends

This style of market research is often completed every day. This is the time you spend on social media channels and checking up on your competitors. The more you are aware of what is happening in your industry, the better you can plan and execute a strategy that will help you grow and prosper.

Market research can ensure that you don’t miss out on opportunities that could help grow your business while helping you position yourself to succeed in the future. It is really that simple!

The bottom line

Market research is a valuable tool for businesses that want to understand their customers. Still, many businesses end up ignoring it because it is so time-consuming.

That’s where we come in. Outsource2Us has been conducting market research in Brisbane across various industries for over 11 years. We have seen companies like yours use our research reports to gain insights and inform profitable decisions.

So, if you are looking to get experts on your case who will ensure you get your money’s worth from your market research, reach out to Outsource2Us and we will take care of the rest.

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Emily Spence
Emily Spence
Emily is one of our Marketing Managers and specialises in social media planning and implementation, integrated marketing strategies, digital marketing, and content marketing.Meet Emily

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