Nowadays, market research is of vital importance for both old and new companies that operate online. The main reason is that it’s very difficult to navigate a highly competitive environment without any information that will help you make more strategic decisions. Despite that fact, a lot of companies neglect market research altogether or they don’t know how to do it the right way.
As you may already know, making a mistake in the online business world can cost you more than you’ve bargained for and recovering from such mistakes can be more difficult than it seems. Market research helps you avoid those mistakes and allows you to develop and grow your business more efficiently. That being said, here are a few reasons why market research is crucial for your business.
As the name suggests, market research is a practice of researching the online market in an effort to learn as much as you can about it so that the information you’ve obtained can help you drive your business forward.
As mentioned before, the online market is a highly competitive landscape and you need information and data that can help you navigate this environment.
Market research is usually conducted by startups that are trying to discover where their business fits in a grand scheme of things. However, market research is equally important for developed businesses as well. The main reason is that you can’t make more strategic business decisions without solid information to back those decisions.
Market research is very valuable to any business that operates in the online market. The main reason is that research can help you discover things you otherwise wouldn’t know. For example, market research helps startups determine their product/market fit. If you just go with it and no one is interested in what you have to offer, your business is more likely to fail.
That said, 42% of startups fail because of the lack of market need for their products or services. This statistic shows just how many businesses ignore market research that would help them prevent such an outcome, to begin with. That said, market research can also help you determine a wide variety of things besides product/market fit. Here are a few examples.
• Helps you discover your target audience.
• Helps you understand your audience’s needs, expectations, demands and preferences.
• Helps you create consumer personas.
• Helps you decide on the best way to communicate with consumers.
• Allows you to pick the right marketing channels.
• Helps you develop a brand.
Without market research, you’re basically stumbling around in the dark while following your gut feeling to help you get through. This is very risky, especially in a market that’s crowded and as competitive as today’s online market. Business mistakes can cost you more than you can imagine and market research can help you avoid those mistakes, in the first place.