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Picture this: you’ve got the great idea of opening an artisanal dessert shop in your area. You’ve invested so much into the shop and on the raw materials for your products, only to find that on your opening day no one seemed to spare a second glance. As it turns out, the artisanal dessert shop idea just didn’t have much of a market in your area and the people there preferred savory takeout meals. This may happen if you don’t do your research.
Behind every great business are mountains of research. In a highly competitive field, the best way for your business to stand above the rest is by being updated with the current market trends, knowing your consumers, and understanding competitors as well as your industry. The best way for you to accomplish this is with research.
There are two types of business research: quantitative and qualitative.
Quantitative research
Quantitative research focuses on numbers. It’s good for big sample groups because you can ask them a series of close-ended questions with easily quantifiable answers, such as “yes or no” type surveys or multiple-choice questionnaires. This is often used for gauging a target market’s interest in something. With statistics, you can use that data to make probabilistic predictions for your business’s trajectory.
Qualitative research
Qualitative research focuses on people. Hence, this is good for getting to know your consumers because it uses open-ended questions that ask them “how” and “why” they like the things that they like or don’t like. This usually calls for small sample groups and is often used to gain insight before creating products or services. By knowing how you’re perceived by your customers – and by extent, how they would compare you to your competitors – you can tailor your marketing strategies to better reach and impact your customers.
So, now you know the two types of business research. But why research? Well, here are 5 key reasons for why research is important for your business.
1. It helps you create effective marketing strategies
Research can help your business by being specific. It’s difficult to be everything to everyone, especially if you’re a new business. Certain strategies that work in one industry might not work in another. Research can help you create marketing strategies which are the game plan for your business. Once you’ve narrowed down your goals, what type of business you are, and who your target market is, you can have a clearer and more concrete plan of action.
2. It can give you a competitive edge
Research can help your business by giving you information on competitive gaps that could work to your benefit. Through research, you can identify the strengths and weaknesses of your competitors and draw comparisons among their strategies. By understanding how and why certain factors lead to success, it heightens your understanding of your industry and helps you fine tune your own strategy and campaigns to stay on top of the competition.
3. It helps you build trust and establish good rapport
Research can help your business by establishing trust with your target audience. We tend to seek advice from those we believe have expertise in a certain subject. The same can be said for your business as customers and clients want to know what they’re getting into before making a commitment to buying your product or employing your services. When your business operates from a place of facts and information, it tells customers and clients that you’re legitimate and not just selling them promises you don’t intend to keep.
4. It leads to better adaptability and growth planning
Research can help your business by identifying potential risks and rewards in the marketplace. It means you don’t have to run your business in the dark! Through research, you can focus your efforts on creating strategies and systems that lead to those rewards, as well as identify opportunities for growth and expansion. Research also minimizes risks because it lets you know when and where to invest your capital and resources. Even when the industry’s landscape is in flux, you can make cost-effective calculated risks that align with what you know.
5. It helps you identify and address areas that need improvement
Research can help your business by identifying areas that need improvement and allow you to craft solutions to improve those weak spots. By being open to feedback, it shows potential customers and clients that not only are you quality-oriented, but that you’re in the industry to play the long game. Businesses come and go and a key to business longevity is continuous improvement and adaptability. Where do you begin? Again, with research.
Final thoughts
The thing about creating a business is that it’s a journey. Preparations are made before traveling to your dream destination, and one of the most important things you can prepare for a journey is your map. Business research, much like a map, acts as a guide for where you want your business to go and can save you from getting lost within your own industry.
Related Reads:
“Are Bazaars Still A Thing?” How To Create A Direct To Consumer Brand Experience For Your Business
Heads Up, Start-Ups! Marketing Tips for Start-Up Businesses in 2021
Phoebe Aurellado Kwek
Phoebe Joy Kwek is a Communication and Media Studies student from San Beda College Alabang. Being a creative, she likes many things and has many interest including writing, illustrating, sewing, and baking.