How to make the most from market research

Whatever your budget, market research can help you create an effective business plan. Small businesses and start-ups in particular can benefit enormously from insightful market research that helps them plan a strategy for growth – but they need to make sure they get the most for their money.

Use your head

When starting out, it’s tempting to let your heart rule your head and base business decisions on your own individual preferences. But selling products or brands that cater exclusively to your tastes can be a recipe for disaster and it’s crucial to ensure there is a wide, receptive market.

Market research may seem like an unnecessary expense to the passionate entrepreneur who is convinced they have a killer business idea. However, investing in market research could actually save you money if it uncovers any problems with the design, branding or pricing of a product.

Know your goals

Before embarking on any market research, it’s important to clarify exactly what you need to find out. For example, you may wish to establish if there is a strong market for your product and, if so, its profile. Or, you may need to test your pricing strategy, or find out where your target consumers shop for products or services similar to yours.

Online research companies

An online research company can help you find the answers you need quickly and cost-effectively. These companies maintain databases of panellists who have supplied detailed information about themselves and who are available to provide their invaluable opinion about your product and sector.

The largest market research companies offer the widest choice of consumer panels. Clients can choose from various profiles that include specialist consumer panellists, such as educators, decision makers, mobile phone users, and small business owners.

The largest online consumer panel has 6.5 million active members from 38 countries. More members means more targeted research and - as respondents are able to complete surveys in the comfort of their own home, usually for a financial incentive – the researchers can be sure of a rapid response.

The cost of online research depends upon the number of people being surveyed and their profile. Small businesses and start-ups may not be able to afford to survey large numbers of people so should ensure they think carefully about who to target.

Choosing a company

Before paying out for market research, you will want to ensure the company you choose will do a good job. Choose a member of the Market Research Society (MRS) to ensure they adhere to the association’s standards. Accredited market research companies can be found in The Research Buyer’s Guide.

Ask your own questions

Take your time planning your market research before signing up and make full use of the company’s expertise. If they’re not happy to answer all your questions, they’re probably not the right company for you.

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