Why Market Research is Essential for Small Businesses
When you’re on a tight budget, commissioning market research for your business may seem intimidating or even unnecessary. However, small and medium-sized enterprises (SMEs) can benefit greatly from gaining insight into their customers, even with restricted resources.
Customer insight enables informed decisions, leading to better product design and improved communications, ultimately resulting in increased profits. With SMEs accounting for 99.9% of UK businesses, it is vital for these economic powerhouses to understand how to leverage customer insights to their advantage.
Maximizing Limited Resources
Before investing in additional market research, it’s important to examine the data you already have. By analyzing this existing data, you can identify gaps and provide a more focused brief to your research provider. However, it’s crucial to handle customer data with GDPR regulations in mind.
Instead of focusing on collecting a large amount of data, prioritize the quality and usefulness of each piece of research. This approach can provide actionable insights that will benefit your business.
Utilizing Free Resources
Accessing free resources, such as the Census and social media, can provide valuable insights into your target market. However, it’s important to approach social media data with caution, as it may not represent the entire customer base.
Adopting a Flexible Approach
Qualitative insights, such as talking and listening to smaller groups and individuals, can complement numerical data and provide valuable observations. Additionally, staying curious about your customers and their preferences can help you stay ahead in the market.
By thinking flexibly and realizing that useful research is not beyond their reach financially, SMEs have everything to gain. Partnering with the right researcher and investing time in the process can lead to valuable customer insights that drive business growth.
For further resources on market research, consider the following: