Benefits of customer research in marketing
Customer research comes along with several benefits, many of them absolutely crucial to your digital marketing or any other type of marketing effort. This is especially true for a new business, product, or service.
- Identifying target audience. You will come to know precisely who your brand should target as customer research will help you learn the demographics, interests, pain points, and behaviors of those people who your brand can benefit most.
- Understanding customer behavior. You will learn the habits and patterns of your ideal customer. What they do, where they hang out online, and what kind of activity they engage in.
- Creating relevant content. Knowing more about your customer will allow you to create marketing materials and content that speaks directly to them.
- Improving customer experience. Customer research allows for greater personalization, which increases the customer experience.
- Increasing conversion rates. Of course, all the benefits of target market research create more qualified leads and better conversions.
Every benefit of customer research creates and builds another benefit of customer research. You may not even know who your customers might be at the start, which is what makes this type of research an excellent place to start.
No matter the size of the business, initiative, or group, there are always benefits associated with customer research and continuing target market research.
Why is quantitative research key to building a business strategy?
Customer research forms a cornerstone of all business, marketing, and sales strategies. If you don’t know who to target, then your campaigns won’t work as intended, or won’t work at all.
Each of the previously mentioned benefits of customer research point to exactly why you should look at this research as key to building a business strategy.
Helps businesses understand customer needs
What does your ideal customer need? And, can your brand provide them with that need? These important questions can help you form the blueprint of your entire business or brand strategy. Understanding the needs of your ideal customer will help you deliver to them precisely what they’re looking for.
Knowing customer needs will also help you craft highly effective campaigns that do far more for your brand or business in both the short and long term.
Delivers insights for improving products and services
As you form your business strategy around the insights gained through your own market research, you can improve your products and services to cater to your ideal customer. This also applies to new products or services as well.
For example, you may find you have an underperforming content marketing strategy. Your customer research insights might inform you that the reason the strategy underperforms is that you’re using generic content, or it’s not speaking to anyone specifically.
Now that you know who your customers are, what they want, and how they consume content, you transform that underperforming content into content that actively engages and converts the potential leads your business needs the most.
Assists businesses to make informed decisions
Business strategy forms based on a series of decisions. If your decisions aren’t backed by data and analysis, then it might not work quite as well as you would like. Primary research insights can help to inform business decisions at every level.
Yes, you can use customer research data to create excellent marketing funnels, but you can also use that data to create full business plans, goals, and growth strategies for the entirety of your organization. This is the type of thing that large corporations do routinely.
A small business or even a single person with a marketable skill can use primary market research data to figure out in which direction they should point the overall efforts of their business.
Increases customer satisfaction and loyalty
People love to feel catered to. Consumer research helps you to facilitate that feeling in people by providing them with solutions to problems and giving them content that speaks directly to them. This process will give your brand satisfied and loyal customers.
Keep in mind that customer satisfaction and loyalty also lead to:
- Repeat business and increased lifetime value
- Cheerleading and positive word of mouth
- Increased reputation
Loyal customers become repeat customers, as they tend to return to brands they trust when it’s time to purchase again. They may stick around for a long time, which can lead to more customers with higher customer lifetime values (CLV).
That satisfaction and loyalty will also prompt customers, especially modern-day customers, to write reviews, cheerlead, and spread the good word about your brand or its offerings. Word-of-mouth is actually a viable form of marketing, a powerful one, and one you can passively receive benefits from.
Provides a competitive advantage
Customer research that informs business decisions will help you stay ahead of your competition. You can use consumer research to find more potential leads, but you can also use it to find new opportunities.
For example, your data may point to gaps in the market or underserved segments of people. While your competitors focus on what’s right in front of them, you can start making efforts to capture segments that can often go overlooked. Compare your potential results from these ventures against your competitors and you might see how you can outdistance them in one or more ways.
Enables businesses to establish long-term relationships with customers
As a brand or business, you want customers who will stay with you for the long term. Customer retention starts with a brand understanding their customer. Under most circumstances, people will not stick with a brand they feel doesn’t get them. Identifying needs and offering solutions to problems isn’t something that stays static.
Customer research will help you stay in step with your audience and they, in turn, will stay loyal to your brand. You can only achieve that kind of synergistic relationship through ongoing consumer research.
How to conduct target market research
You can perform customer market research in many ways. At a basic level, practically any effort you take that leads to greater customer insight counts as quantitative research. However, you’ll want to use methods that offer you more quantifiable data that you can use to make actionable decisions.
1. Define the research objectives and target audience
Start with a clear objective and define a target audience. Make a statement that defines why you’re conducting this customer research. What do you hope to accomplish with your research?