Four Reasons Why Market Research is Important
Market research is an extremely important aspect to a business, although often neglected. If you invest heavily into an idea without understanding where the market is headed, or what your customers want, your efforts will go waste. It’s always best to keep track of the market pulse; and that’s exactly what market research is.
- Walking in the customer’s shoes: Understanding the customer’s psyche is what a lot of companies pay heavily for, but are sometimes eluded by. Market research is the only method by which you can understand what your customers like, what improvements they want, and what other features might excite them. Customer feedback is a technique which might not yield desired results. This possibility is negated when market research is done. If you can understand your existing customers, then will you be able to attract new customers.
- Understanding future trends: Market research firms help companies understand the upcoming trends, which helps align themselves with the changes that may take place. For example, most leading smartphone manufacturers had turned down Android as a User Interface before Samsung made it a disruptive technology. Market research reports had suggested the same. In predicting such trends, market research always plays an important part.
- Helping track growth: Research reports help companies track the growth of the company and the industry. Companies may also conduct reports aimed at finding out the specific reasons for their growth (or the lack of it).
- Boosts profitability: Probably the most important reason why market research is needed (to boost profitability) is difficult, yet achievable. Market research reports help companies identify risks and avoid them. Understanding the existing business and developing strategies for the future of the business is imperative. If the risk levels are low, the investment into developing business can be maintained without the risk of losing money. This makes market research incredibly useful for companies and business reporting.
Do you agree?