Market research is a very common term in business. You may have heard about it but you might not sure what does it actually refer to. Market research is defined as being the objective gathering and evaluation of data from customers. It incorporates valuable information collected straight from a respondent who is familiar with the product or service.

 

There are many reasons why business owners hire a market research company to do this. First and foremost it allows the owner to understand the existing customers and their motivations. After the study, he'll know the reasons why they choose the product over competitors, their values, beliefs, needs and preferences. It can also identify the potential customers and a few features such as age, gender, marital status or geographical location.

 

The information collected through a specific market research method can be used to set new targets, improve the business plan or create one from scratch to match the requirements. Each business should have certain objectives in mind before hiring a specialized team to learn about the opinion of customers. Whether it actually encounters obstacles and sales problems or it simply want to increase sales, it has to know exactly the purpose of the research. Examining the weak points will contribute to a better understanding of the goods from the customer's point of view.

 

Market research is also an effective tool to get new ideas and to identify opportunities. It may be tough to think outside the box, but customer's perception may help you discover fresh points of view that will be the starting point for new features or products. 

 

Last but not least, market research is a way to interact with the customers and to kindly ask for their opinion. This changes the impersonal relationship and gets the brand closer to the people. Many people tend to buy things from "customer-friendly" brands just because they think that the brand puts more time and effort into creating high quality products and it delivers a friendlier message. Knowing that a business "cares" for the customers is more important than you think. Everyone is aware of the fact that the main goal of a business is to make profit. But people like brands that address their needs and wishes. When people feel that the company tries to cheat them in any way (lowering the quality, raising the prices way too much) they switch to another provider.

 

Therefore, market research is also a way of letting customers know that you care about their opinion. Asking for their feedback implies that you are committed to improve the existing offer and any flaw that your product/service might have.