Many businesses that dismissed the importance of market research are now on the brink of collapse. And those who did their research and planned accordingly are now leading the market.
One such example is the acquisition of WhatsApp by Facebook. When Mark Zuckerberg saw the popularity of the messaging App worldwide, he realised that WhatsApp would be a competitor. Facebook had also bought Instagram when it faced competition from it. Zuckerberg has bought many other social media platforms for various reasons, and how did he understand and plan these big steps. The answer is market research.
There is no wonder if you see a big corporate seek services from a research agency. In the age of information technology, the money is in the information or raw data. Who has the data, controls the market, and even if you are a small player in the market, you can better your business multifold with the power of information.
Now, why is research necessary, and how good is an agency that researches you?
The agency’s task is to do market research for your business and provide valuable information that will benefit you in the future. Before discussing the benefits of the researching agency, you must understand what market research is.
What is market research?
It is an activity or action of collecting information about customers’ needs and preferences. This way, the business can plan for the marketing and production ideas. The research does help every company to analyse their opportunity and avoid risky investments.
Now, the benefits of market research can be given as follows:
1. Easily Spot Opportunities
Now that you have the research results with you, you can reach out to your target customers when there is a demand for your product/service.
You will get this information from the research.
- To form a partnership with other businesses or not
- To add or change the quality of your product/service
- Analyse competitor’s product/service
- New location and customers to target
2. Lowers Risk
The research helps in recognising high risky investment sectors and avoiding bad decision making. The managers can rely on the information from the research to make significant decisions.
The managers can:
- Test new products/designs before the official launch
- Find what customers don’t like about the product/service
- Understand where the actual problem lies
3. Make Relevant Promotional Content
Through research, you can identify your customers and do the promotions accordingly. The statistics gathered by the research agency will benefit you in understanding the customers’ age, sex, preferences, buying habits, location, and the likelihood of the next purchase.
This information is more than enough for companies to prepare, plan and execute their projects successfully.
4. Outsell Competitors
The businesses that understand their customers tend to do well in the market. If you can beat your rivals at finding out your customers’ needs and aim to fulfil those needs, you already won the competition.
The research will let you:
- Target dissatisfied customers of competitors (your potential customers)
- Find a neglected customer segment and target those niche
- Identify unaddressed customer needs
- Recognise the new niche market and prepare to capture it
Now you see how significant the research of the market is for your business. Having a research agency is indeed an asset to your company, and you must utilise the agency to prepare, plan and lead the market with all the knowledge you can get.