It is imperative to do validation of market research with primary researched data
In the previous discussion on leveraging data to define business objectives, we explored how insights can fuel precise, actionable goals. But where does this data come from? Market research—the backbone of any data-driven strategy—is the answer. By analyzing and interpreting market data, businesses can uncover trends, understand competitors, and identify customer needs. Here’s how to master market research using data effectively.
1. Start with Secondary Research
We already saw how secondary research involves analyzing existing data from credible sources. There are various sources available for you to do the research or just go through different sources your company leveraged to define their business objectives. This step is cost-effective and provides a wealth of information to kickstart your market understanding.
- Tools and Resources: Leverage platforms like Statista, IBISWorld, and government databases for reliable market data.
- Example: A company entering the plant-based food market could use reports from Statista to identify that the industry is projected to grow by 12% annually.
By synthesizing this information, you’ll identify trends and gaps to explore further in your primary research.
2. Conduct Primary Research
Now that you looked at various sources, it is time to validate secondary research with some live facts. Secondary research is done by others and give a good direction, however they are not the full and final data. You would need further exploration into the numbers. This would include knowing the key reason behind the trend. The reason will help you target and connect with right users.
Primary research involves gathering fresh data directly from your target audience. Surveys, interviews, and focus groups are common methods that provide first-hand insights.
- Tools and Platforms: Use SurveyMonkey or Typeform for surveys and tools like Zoom for interviews.
- Example: A fitness startup could survey gym-goers to understand their preferences for hybrid workout models, uncovering insights about demand for virtual classes.
Primary research ensures your findings are specific to your business needs.
3. Tap into Social Listening
Social media is a goldmine of unfiltered customer opinions and emerging trends. By monitoring platforms like Twitter, Instagram, and Reddit, you can gain real-time insights into your audience’s thoughts and preferences.
- Tools: Utilize Brandwatch or Hootsuite for effective social listening.
- Example: A clothing brand might discover a spike in mentions of “sustainable fashion” on social media, signaling a shift in consumer values.
4. Analyze Competitors’ Data
Understanding your competitors’ strategies can highlight market gaps and help you refine your approach. By analyzing their strengths and weaknesses, you can position your offering more effectively.
- Tools: Platforms like SimilarWeb and SEMrush provide insights into competitors’ web traffic, audience demographics, and marketing strategies.
- Example: A fintech startup might use SimilarWeb to identify that competitors are focusing heavily on urban markets, leaving rural regions underserved.
5. Leverage Predictive Analytics
Predictive analytics turns historical data into actionable insights about future trends. By identifying patterns, you can anticipate customer behavior and market shifts.
- Tools: Tools like Tableau and Google Analytics are excellent for predictive modeling.
- Example: A travel agency could predict a surge in eco-tourism interest by analyzing booking data and social sentiment.
6. Map Data to Personas
Create detailed customer personas by combining demographic, psychographic, and behavioral data. This ensures your market research is focused on real, actionable segments.
- Tools: Platforms like HubSpot or Marketo simplify persona creation.
- Example: A subscription box service might identify that their key persona is millennials seeking convenience and sustainability.
7. Validate with Trend Data
Confirm your findings by validating them against broader industry trends. Platforms like Google Trends and TrendWatching offer excellent resources.
- Example: If your research shows interest in virtual reality (VR), Google Trends can confirm whether searches for “VR headsets” are increasing.
Conclusion
Market research is the cornerstone of defining business objectives and crafting data-driven strategies. By using secondary research, social listening, competitor analysis, and predictive analytics, businesses can uncover opportunities and anticipate challenges with confidence. When combined with the insights from your business objectives, as discussed in the previous article, your market research efforts will form a holistic strategy for success.