Posted on: 13/04/2023 by: in: SMEs, Startups
Business owners tend to try and cover all the key business disciplines themselves as opposed to seeking external help when needed. This is understandable, especially for startups, when finances are tight and there is a refreshing self-belief where outsourcing doesn’t even come into the strategy. This may be for various reasons such as, a perception that the small but dedicated team can handle everything or the personal attachment to the business means owners don’t trust anybody else to do the work to their exacting standards. Now this may be OK in certain areas of the business but not when it comes to something as important as customer research. Customers after all are the most important stakeholders for a business and are at the heart of all that they do, so failing to understand who they are and what their needs are can prove disastrous.
This is the practice of identifying and analysing customers through focussing on their preferences, motivations, needs, attitudes and buying behaviour. A range of quantitative and qualitative methods can be used and include focus groups, interviews and surveys to name just a few. Research also includes online reviews, forums and social media to discover what customers think about a particular product or service.
These research methods will identify common traits among targeted groups and enable business owners to categorise them into customer segments and buyer personas. Customer research can focus on various aspects such as basic demographics of current customers or prospects such as age, gender or social status. This data then forms an integral part of any marketing campaign and the valuable insights can enable a business to refine and improve its offering to its target market.
When customer research is carried out correctly the results can lead to legions of loyal customers who will develop long term relationships with businesses, which can be highly lucrative. Happy customers are also the best and most cost effective form of marketing because they will gladly praise their experience with a business and share it with friends, colleagues and relatives.
Customer research can save a business money. Many businesses plough money into who they perceive is their ideal customer when their target audience is something very different. So why waste money on the wrong market when investing in customer research will reap rewards, and this is where an expert in this specialist field can be priceless.
Following on from the point above, the valuable insights gained by a business places them in a powerful position to make accurate, informed decisions where risk is minimised. When a business has little knowledge about their target audience, mistakes, often expensive ones, are often made.
Improves conversion rates
Equipped with key information about a prospective audience means a business already know that their offering meets their needs along with the best communication channels to target them through. This results in higher conversion rates, which has the added bonus of a highly motivated sales team.
In-depth research enables businesses to find out what their customers expect and want from them and adapt appropriately. A customer focussed business is at an obvious advantage compared to competitors that don’t invest as much time or money on this key area.
When a business knows who its prospective customers are, what they need and how to target them, it is an excellent position to be in. The competitive edge mentioned above also means that prospects would rather spend their money with a company that understands their wishes and fulfils their needs. This then leads to business growth and endless opportunities.
These are just some of the benefits of customer research, and the cost spent on securing the services of an expert will be outweighed by the reasons mentioned above. Startups and established businesses can reap the rewards from outsourcing their customer research to a specialist in this key discipline. If you want help with customer research then you can contact one of our experts by clicking here.
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