Here's how startups can do market research
Market research is a crucial practice for aspiring startups to get in-depth insights into their target audience. Here are some ways in which startups can conduct effective market research for their businesses.
Many startups fail within their first few years, and one of the primary reasons for this lack of knowledge of consumers. A successful startup is one that is founded on a strong product, and this depends on knowing the customers well.
This is where market research comes into play, as it helps startups gain in-depth insights into their target market and develop an effective product or service accordingly.
Market research helps businesses understand consumers’ needs, their behaviour, and preferences. It also helps businesses understand their clients and competitors, identify market trends and opportunities, and assess the market value of products.
Armed with such knowledge, startups can make better decisions, improve marketing strategies, and gain competitive advantage. Ultimately, they can avoid launching a service or product that does not live up to the expectations of the consumers.
If you are an aspiring startup, here's how you can engage in market research, before launching a product/service.
Identify the purpose and set goals
The first step is to clearly understand the purpose of the market research and set goals accordingly. Determine the questions you are looking answers for and how they will be utilised, and form hypotheses. By doing so, your team will be aligned with the intent of the research and the overall goal. This will also assist you in planning and executing the research.
Analyse your target audience and competitors
Once the purpose of the research is clear, it is time to study your target market. This is a crucial component of your research; so thoroughly analyse your target audience and competitors. Get as much information as possible about your consumer market to decide the approach of your research.
Pick a research method
There are two main methods of market research. Choose the method that aligns with your objectives.
Primary research: Primary research deals with collecting data directly from the consumers/audience. You can conduct surveys, focus groups, and interviews to understand the target market, size and preferences.
Secondary research: Secondary research examines existing data and information from sources such as reports, articles in journals, books and news.
Apart from this, these days, with the advent of artificial intelligence and machine learning, marketers can also turn to automation in market research.
Have the right set of questions
Having the right set of questions will bring valuable insights into your target audience. It helps you build an actionable strategy, whereas wrong questions can have the opposite effect. So, start brainstorming with your team to formulate an appropriate set of questions.
Check and analyse results
Once your research is done, it’s time to evaluate the findings and analyse the trends. Detect the patterns in the data. Highlight the key information and feedback you have received from potential customers. Note the data that focuses on crucial problems. All this will help you derive actionable insights, make informed decisions, and improve product/service.
Devise and implement actionable strategies
Once you have a complete report or data analysis, you must create an effective plan to meet the expectations of your customers. This plan involves deciding the channels to use (online/offline/omni) for maximum impact and advertising and PR strategies to drive interest.
Market research is an ongoing process
While it is essential to conduct market research before the launch of a product or service, it is also equally important to revisit your goals and hypotheses from time to time, as you build your venture. This means doing market research periodically, with each iteration of your product or service, and ensuring your offering continues to cater to customer needs.
Edited by Swetha Kannan