You have an idea for a business, and you want to jump right into making or selling products. However, it’s crucial for you to slow down and do some research first. Why does it matter?
There are many reasons market research is critical for small business owners. Let’s talk about why small business owners must research what their customers want.
You Need a Niche to Succeed
The biggest reason to do market research before starting your business is that it can help you find a niche. Why is that important?
The broader the category of products you sell, the more competition you will have. Big companies can afford to pay experts to optimize their entire website for SEO. If you use the same keywords as too many big companies, nobody will ever see your site on Google.
If you focus your business around a less-common keyword, you will have less competition. Less competition for keywords and business should equal better sales.
But how do you know what niche to target? That’s where market research comes in. Find out exactly what your potential customers are looking for and target that niche.
You Can Better Meet Your Customers’ Needs
How can you be certain you’re giving your customers just what they want? The best way to do that is with market research. Find out what will attract customers to your business and keep them coming back.
You may think you know what your customers want and need. However, you may be surprised. Don’t just guess what products, services, and experiences your customers want. Do the research to find out exactly what they’re looking for.
Marketing Will Be More Effective
Once you’ve identified a target market and what niche they’re looking for, marketing will be more effective.
Why would you want to risk marketing to the wrong audience? That could be an expensive mistake. Use market research to fine-tune your marketing efforts, so they reach the right customers.
The better you know potential customers, what they want, and how they’re influenced, the more effective your marketing will be. Don’t let your marketing efforts be a random shot in the dark if you don’t have to.
It Can Help with Brand Recognition
71% of consumers want to be familiar with a brand before they make a purchase. That makes it tough on new small businesses. How can market research help?
Market research can help you understand what customers want from a brand in your niche. The clearer and more specific you can make your brand, the sooner you can gain brand recognition.
Without doing market research first, your brand may appear vague, uninteresting, or confusing. Use market research to home in on a brand that people will remember.
Customers Will Be Satisfied and More Likely to Return
The number two reason people choose a small business over a large company is for better personal service. (The number one reason is that they like to support the local economy.)
You should always strive for good customer service. However, market research can help you figure out what your customers really want. If you can give more personalized service to your customers based on research, they’re more likely to return.
Choosing a niche based on market research can also help your customers feel like they’re getting better service. They know exactly what they’re looking for, and you came up in their search results.
If you’re knowledgeable about your niche, you should be able to provide customers with valuable information. That’s regardless of whether you carry exactly what they’re looking for. Customers will remember your knowledge and passion and reward you with repeat business.
You Can Sell Products that Meet Pain Points
The best way to build a successful business is to address a pain point for potential customers. How could you know what pain points they struggle with before you do market research?
What’s an example of a pain point?
Everybody needs shoes. That’s a giant market. Let’s say you want to sell women’s shoes. That’s a somewhat smaller market than all shoes. It’s still too big for a good niche.
Did you know that women with large feet have a hard time finding shoes in their size? Transgender individuals and drag queens tend to have especially large feet. That’s an example of a pain point that you could address.
Your niche could be wide, large, and plus-sized women’s shoes. Now, your market research has helped you find a niche that solves a pain point. You will have less competition and thrilled customers.
It’s Easier to Personalize Service
If you really know what your customers want, you can give them the best possible service. The best way to find out what your customers want is through market research.
As you can see, market research can help you find a niche that addresses a pain point and pleases customers. Why wouldn’t you spend a little time and money on market research before starting your business?
Need Help Funding Your Market Research?
Now that you see how crucial market research is, do you need some help funding it? The information you learn from market research can help you save money down the road. However, you still need to have money available now to perform market research.
At First Union Lending, we want to help your smallbusiness. We specialize in assisting small business owners, as shown by our 9 different business loan types. One of our business loans will be the most cost-effective way to do market research that will pay off.
As a small business owner, you worry about hurting your credit. Luckily, applying for a business loan with First Union won’t do that. Additionally, you could get money as soon as the same day.
To talk to our lending specialist, click here or call 863-825-5626. They’ll help you find and apply for the perfect loan.
Don’t hesitate. Start your business right by doing market research first.