Many entrepreneurs come up with innovative products to the market. They invest a huge amount of funds in their product development. Still the result is not up to the mark. Either the business is not able to generate the expected sales, or it is not able to capture the market.
The reason is that innovation alone or the product development is not enough to guarantee the success of your startup. The majority of the budding entrepreneurs ignore the market trends and customers’ preferences which can be found out by conducting a detailed market research.
Market research is conducted to have access to understanding the behavior of the customers, the latest trends in the market, industry fluctuations, and also about your competitors. Market research is an on-going activity of the business, but it is the most important task at the start of your startup. The data collected through this process is used to develop your niche in the market and the business strategies.
Here are the four basic steps to a successful market research.
Collect Firsthand Data From The Potential Customers
There are many ways to collect primary data from the users in the market. You can carry out face-to-face conversation with them or call them for a focus group discussion. If meeting face-to-face is difficult for you, then you can simply make a standard questionnaire and send it via email or distribute it personally or through the social media.
Usually, many interviewers face a very low response rate when it comes to filling out a questionnaire. For that purpose, run a contest or offer some giveaway to those who participate and respond to your research.
Once you get all your required data, then analyze it to develop the right business strategies.
Monitor Your Competitors
There are many direct and indirect competitors for a startup. You need to observe the strengths and weaknesses of your competitors carefully and always monitor their moves in the market. By examining the strategic moves of your competitors, you will be able to cover your weaknesses and can take advantage of the new opportunities.
Find Out Different Customer Personas
You need to find out different aspects of your customers and gain insight into their tastes, concerns, preferences, attitudes, likes, and dislikes. For that purpose, you have to work on an empathy map through which you can explore various areas related to the customer behavior.
These different aspects of users can be their fears, frustrations, ambitions, the company they keep, their surrounding environment, and many factors causing a change in their behavior.
The data extracted from an empathy map is shared with the team. These findings are used to develop the right product for the right target market.
Before you are ready to launch your product or service in the market, you must carry out a test launch by sharing it with a small segment of the market. If you get positive feedback, then continue forward. But if the users are not satisfied, then you need to go back and do some more market research and amendments before you finally step in the market.
Execute And Monitor Your Progress
The effort of carrying out market research and continuous monitoring does not end once you execute your business. A successful entrepreneur always monitors his progress and gets feedback by different research methods to survive the competition.
Customers’ changing needs and preferences are observed from time to time during the product’s lifecycle and developments are made accordingly.
Saman Fawad is a professional content and creative writer. She is an MBA, who loves to write about technology, startups, and different business articles. She can be reached at firstname.lastname@example.org