4 Quick Reasons You Need Market Research For your Business
If you want to run a successful business, you must create a business model, a functioning product and funnel it to the right audience. Unfortunately, many startup owners tend to skip the research process.
They assume they have an idea that’s too good to fail. Next, they raise money for their startup, create a product but end up failing. According to fortune.com, 90% of startups fail. Below are some of the reasons:
- Lack of Market Research—42%
- Cash Problems—29%
- Unqualified Team—23%
- Poor Product—17%
- Poor Marketing—14%
To sum it up, most businesses fail because they produce products or services no one wants to buy. Or, they fail because they have the wrong team, insufficient funds, and fail at marketing.
Interestingly, you can increase the odds of your startup’s success through market research.
What is Market Research?
Market Research is the process of discovering whether your product, service, or app has a chance at succeeding. It involves finding the right product for the right audience by observing the target market’s behavior and expectations regarding your product.
Why is Market Research Important?
The most successful businesses provide solutions to existing problems. Think of Facebook, Google, Uber, Airbnb, and Dropbox. They’re not successful because they had plenty of investors from the word go. They’re successful because they had solutions to existing problems.
That said, below are the 4 most common reasons you need market research for your business?
- Discover Whether your Product Will Sell or Fail
Considering 42% of businesses fail because they create products no one wants to buy, it’s essential to conduct market research before you launch any new product. Find out whether there’s a demand for what you want to buy.
Learn whether there’s already an existing solution to your presumed market problem and if it’s successful or not.
- Learn More about your Customers and critics
Do you know who buys your products and service? Market research can reveal the nature of your customers, why they buy your products, and what they would want you to improve. Likewise, you can use market research to discover why people dislike your services. In turn, you can act on this feedback to improve service delivery.
- Identify New Potential Customers
Because market research helps you determine who your customers are, it can help you know how to find new buyers. Let’s say you have an app popular with soccer fans in Brazil. You can re-target your app to acquire new customers in Mexico, Germany, England, and Italy—all soccer-loving nations.
- Discover Expansion Strategies
Every business yearns to grow big. You can only grow if you keep up with market changes. Conducting market research is the best way to learn how your niche is changing. In turn, this can help you figure out what you must do to thrive.
Let’s Do Market Research for You
Do you want your business to succeed? You need effective market research. We have the team, the skills, and tools needed to find the right data for your company. Talk to us to learn how we can help with your business market research needs.