Market research, described as the systematic, impartial collection and analysis of intelligence about your prospects, customers, competition, and or marketplace is crucial to ensure business success. From large scale omnibus research to informally asking a few satisfied customers why they buy – all research provides practical knowledge for the reason that however it is gathered it will guide your opinions and business decisions.
But in today’s cutthroat marketplace the acquisition of data is has little real worth in and of itself, it is the actions that are influenced by it and implemented to provide greater efficiency or profit that give it value. The value or efficacy of market research can only be determined when the decisions that it spawns provide a return on investment that is greater than the cost of the research itself. For example, in a marketing context the return on investment or ROI is the relationship between the cost of the research and the extra profit generated. So if you spend $500 on market research that leads to actions that produce a revenue increase of $1,250, the research returned a ROI of 1:1.5. Think of it as for every research dollar spent made an additional $1.50 in profit.
There are plenty of different types of market research so this article will focus on one that is specifically used to increase bottom line profitability – Research for Marketing. Outstanding businesses do the same things, they are better at attracting more customers and to keeping them loyal for longer. Often the quality of the product is secondary to the quality of the marketing. Good marketing makes and breaks companies and that marketing is directed by research.
Research for Marketing could increase customer acquisition.
This type of research has been specially created to aid you learn why people might buy from you. More importantly it will provide specific advice to direct your advertising efforts. This allows you to formulate more effective and targeted advertising campaigns that better connect with people that are more likely to buy and in a way that interests them. This style of research is also used to predict the likely response from advertising before it is ever used – saving both the time and money of expensive testing.
Use Research for Marketing to boost customer loyalty
It’s true that happy customers are profitable customers for the reason that they are more likely to repeat purchase or become advocates of your brand, product or service. That’s why research for marketing is used for this important aspect of business profitability. For the reason that it elicits the buying motivations of customers you know exactly why people stay loyal and why they might not. By using motivational maps to govern communication content this type of research ensures that all interactions with customers reinforce their original buying decision. But is this method effective? Head to head tests show that customer retention rates can be increased by over 22% using this method.
To find out more just Google ‘research for marketing’ and you’ll find a number of companies offering the kind of research that will improve your customer gathering and retention rates.