Market research, defined as the orderly, uncolored collection and analysis of intelligence about your prospects, customers, competitors, and or marketplace is vital to ensure business success. From multi-national omnibus research to informally asking a few satisfied customers why they buy – all research provides valuable data for the reason that however it is gathered it will direct your opinions and business decisions.
However in today’s profit driven marketplace the acquisition of information 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 worth. The value or effectiveness of market research can only be determined when the actions that it spawns provide a return on investment that is more 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 additional profit created. So if you spend $500 on market research that leads to actions that generate a revenue increase of $1,250, the research returned a ROI of 1:1.5. Or put another way every research dollar spent made an additional $1.50 in profit.
There are plenty of different types of market research so this piece will focus on one that is expressly used to intensify bottom line profitability – Research for Marketing. Profitable businesses do the same things, they are good 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. Great marketing makes and breaks companies and that marketing is determined by research.
Research for Marketing may intensify customer acquisition.
This class of research has been specially created to help you discover why people might purchase from you. More importantly it will provide specific guidance to direct your advertising efforts. This allows you to develop more effective and targeted advertising campaigns that better connect with people that are most 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.
Consider Research for Marketing to intensify customer loyalty
It’s true that happy customers are profitable customers because they are more likely to repeat purchase or become advocates of your brand, product or service. Which is why research for marketing is used for this important aspect of business profitability. As it elicits the buying motivations of customers you know exactly why they stay loyal and why they might not. By using motivational maps to direct communication content this type of research safeguards that all interactions with customers reinforce their original buying decision. But does this approach work? Head to head tests show that customer retention rates can be increased by over 22% using this method.
To learn more just Google ‘research for marketing’ and you’ll discover a few companies offering the kind of research that will elevate your customer gathering and retention rates.
A free booklet on market research is available to all marketing professionals who wish to improve their response rates from espconsultancy.com the research for marketing specialists.