5 Paths to Cost-Effective Market Research

We know professional market research isn’t always in the budget, so we wanted to give small business owenrs some cost-effective market research methods that you can use as a starting point. Whether you’re trying to assess market demand before releasing a new product or service, choosing the best location in which to sell, or looking to gain a deeper understanding of your target audience, market research is indispensable, and where there’s a will, there’s a way. So, here are five cost-effective techniques you to help you get on the right path.

1. Start with Secondary Research

Secondary Research is the most cost-effective market research of all. This means digging up existing data and reports that may be useful to you – in other words, desk-based market research. This can tell you a lot about a market you’re looking to enter, or are perhaps already established in. Things to look for might include the size of your market, historical trends, the traditional “path to purchase”, and how market share is currently distributed between competitors. If you are on a tight budget, getting this information on your market can help you avoid dangerous pitfalls. Some great places to look are economic development groups, industry associations, and government census data – either federal, municipal or at the provincial/state level.

One tool we really like is Google Trends. You can easily search for trends on various topics, and there’s no charge to use.

2. Pick up the Phone

The best way to find out what your customers or prospects want? Ask them! You can’t beat the nuances and insights you will get from speaking directly to your target audience. Start with your employees, then take the opportunity to ask your customers for their feedback too. Use your personal and professional connections to identify prospects and gather opinions, both about the market and your products and services. Make sure you select your sample carefully to get unbiased opinions.

A previous post from Tenato has some actionable tips on how to maximize those conversations.

3. Get Social (Media)

Using Social Media also facilitates very cost-effective market research. A social media audience can serve as a readily-available, real-time market testing tool. You can track keyword mentions around your products or services (try “opinions about (keyword) on Reddit” as a search phrase), uncover industry influences, and participate in and follow relevant hashtags and chats. Some platforms allow you to create surveys or polls. We once assisted a startup daycare with some quick-and-dirty research by posting in a Facebook Group for a certain neighbourhood, asking if they need a new daycare in the area. The response was immediate and overwhelmingly positive. It can even work for posting creative ideas an getting quick reactions.

You can also start a discussion in a LinkedIn group or join a forum to uncover what questions your customers are asking about products or services in your industry. Be aware, if you are joining groups like this, you are there to HELP, not to SELL. Lastly, you can explore tools within social media platforms like Facebook Ads that allow you to A/B Test your advertisements to optimize your results with traditional media.

With the right social media tools, you can gain meaningful, real-time insights far more cost-effectively than ever before.

4. Observe and Record

Observing and recording is also a very cost-effective way to do market research. It is critical to pay close attention to your target market and how they interact with your products and services. This can be done in the complaint area, or at customer service. Track and investigate the errors that customers experience when using your products or services. Are they using the products as intended? Is there room for improvement? By merely observing customers issues, you can gain a lot of insight into how they make purchasing decisions, and where expectations not be met.

If you sell through dealers, ask your retailer or wholesale partner if you can observe the aisles in which your product is sold, and see how their salespeople pitch and sell things to see if they are overselling or mis-representing your features.

5. Online Surveys

Survey Monkey and Zoho Survey are cost-effective market research survey tools that allow you to connect and gain data from customers or prospects. Once you’ve designed your survey, you can send out an email (CASL compliant) encouraging customers, suppliers, and employees to take part. Typically, an incentive to complete the survey is helpful – a voucher, discount or the chance to win a prize. Such tools can also allow you to access audiences that are not existing customers, and can be tailored to your target markets.

One final thought as you undertake quest for cost-effective market research: begin any research initiative with an open mind. It is very easy to see only what you wish to see. Market research is most impactful if you can embrace findings that surprise you, enlighten you, or perhaps make you a bit uncomfortable. The best way to capitalize on the insights uncovered by your research is to make decisions based on real research findings, not to make your research fit a pre-made decision.

If you require further assistance with your market research needs, take a look at our research process or contact us here!