The definition of market research is the process of collecting and analysing information about a target market, including its consumer preferences, needs, buying habits, and behaviour. But what are the benefits of market research?

The goal of market research is to obtain insights that can help businesses make better decisions regarding product development, pricing, branding, sales, advertising, and overall marketing strategy.

This information can be gathered through surveys, focus groups, online analytics, and other research methods, not one size fits all.

We spoke about this in more detail in our The Importance of Evaluating Market Research blog, as there are different approaches to market research.

Market research is much more than reviewing your competitors, which is a common perception in the world of business.

Back in the 1940’s market research was carried out by hand, but now there are more innovative ways to capture data and evaluate it.

The benefits of market research depend on what you want to improve in the business.

Which market research method you use will depend on the problem you wish to address.  You then need to consider who you need to speak to and how you need to approach them to maximum the opportunity for data capture.

The best way you can encourage this to happen is to ensure your audience understands the benefits of the research – how the results will benefit them and the business or company requesting the data.

The benefits of market research – Top 7

Here are our seven top key benefits market research provides for a business, followed by key benefits to your customer or consumer.

Helps to identify customer needs and preferences.

Market research helps businesses to understand the needs, preferences, and wants of their customer or buyer.

By knowing what customers are looking for, businesses can create products and services that meet their needs, resulting in increased sales and customer satisfaction.

Provides insights into the competition.

Market research allows businesses to understand their competitors in more detail whether this is their products, services, or strategies.

Research can help businesses identify their unique selling proposition (USP) and differentiate themselves from the competition.

Define target markets.

Understanding the target market is critical to the success of any business.

Market research helps businesses to identify their target audiences, such as age group, gender, location, and interests, and tailor their marketing efforts to reach them more efficiently and effectively.

Assists in product development and strengthens customer relationships.

Market research provides valuable feedback and insights into product development.

It helps to identify gaps in the market, new trends, and customer preferences that can shape product development.

Plus, it can identify how your customer wishes to buy and this can help strengthen the customer journey as the more we understand about who is purchasing our products and services the more we can strengthen the relationship through communication and providing what the customer wants.

Helps to evaluate marketing and advertising campaigns.

Market research helps businesses to understand the effectiveness of their marketing and advertising campaigns.

It allows businesses to analyse consumer behaviour and responses to their marketing activities, helping them to refine their messaging and improve their marketing and advertising strategies.

Helps improve the decision-making processes.

Market research provides data, facts, and insights that businesses can use to make informed decisions.

Information on consumer preferences, market trends, and competitor behaviour can help businesses make strategic decisions that lead to growth and profitability.

Creates synergy between marketing and sales.

(business presence v customer/buyer journey)

The synergy between sales and marketing is an important benefit of market research.

Market research can improve both areas of the business by positioning your marketing more successfully. The research can tell you what products and services you need to be offering, as these are the ones your customers wish to buy.

In reference to sales, market research can result in a structure and pricing review and identify where your customers sit demographically.

The more we understand the synergy between the benefits of market research for the business and the customer, the better experience can be created through your buyer journey.

The benefits of market research for your customer

Here are five key benefits your customer will receive through market research.

Improved products and services:

Market research can help companies identify customer needs and preferences, leading to the creation of better products and services.

Prices and value:

Through market research, companies can determine the appropriate price for their products based on customer needs and perceptions of value.

Communication:

Market research can help companies understand how to communicate with customers effectively, ensuring that they receive relevant and timely information about products and services.

Customer satisfaction and loyalty:

By understanding customer needs and preferences, companies can create products and services that are more likely to satisfy customers and build brand loyalty.

Innovation:

Market research can provide insights into new product ideas and opportunities, helping companies stay ahead of competitors in the marketplace.

The benefits of market research – Summary

Overall, market research enables companies to better meet customer needs, resulting in improved products and services, stronger relationships, and increased customer loyalty.

As perfectly stated by Elliot Ghali, Founder of Example Marketing:

‘Market research tells the business owner what our potential customers/clients are looking for to satisfy or solve something and market research helps provide more direction to targets/goals we set ourselves when promoting/directing the business’.

If you wish to explore more about the benefits of market research for your business, then please just get in touch.

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