In this blog I have talked about how market research can be used to improve customer satisfaction, or find out if there is any market for your new product or service idea. However, there are a number of other ways that market research can help your business.
In this article I want to talk about some of the other ways you can use DIY research to inform your business decisions, and with the number of online survey tools available you can do these surveys quickly yourself.
Three ways a market research survey can help you that you may not have previously considered.
1. To help you understand consumer jargon
When you have been working in a particular industry for a long time you know all the technical jargon, and you use it without a second thought. However that does not mean your customers will automatically understand what you are talking about if you use this jargon in your communications.
Several years ago I worked for an insurance company and we needed to find out what language we needed to use in an advertising campaign. We where trying to create an advertising campaign to inform customers that our company automatically insured all the added extras on your car. The extras we were talking about were items such as the sunroof alloy wheels air conditioning and tinted windows etc. We needed one word to describe all these features that customers could understand so it could be used in the campaign,
So we asked a simple question, here is a list of items you may find on your car, how would you describe these items in one word?
We got one word from customers that described the items which meant customers understood what we were talking about in our campaigns.
2. Increasing your media return on investment
Market research can tell you exactly how to target your advertising to ensure you reach the right people with the right advertising message, leading to a high return on investment for your advertising dollar.
Insights into which media your target market consumes and finding out what messages appeal to them you are in a position to create a strong advertising strategy using the most appropriate channels.
3. Crisis management
If your business faces an issue that could potentially damage its public opinion market research can be used to quickly gauge public opinion and suggest an appropriate response.
Many years ago I worked for a company that provided superannuation funds. Due to a miscalculation they were not going to have the funds to provide all fund holders with the pension fund promised. As they thought about various ways they could pay out people’s retirement funds they tested each idea on their customers until they found one that most fund holders could agree upon.
In another job I was working with an airline. They had a panel of respondents that they would test all their communications on first before sending it out to the media to ensure that any press releases and communications would not have a negative impact on them.
With the number of DIY tools available on-line it is easy to monitor results as they come in to ensure you are up to date with the latest consumer opinion.
There are many ways in which market research can be used to effectively understand your customers and potential customers.