1. Know and keep up with your audience

Identifying and understanding your target audience is the foundation of any successful business. As a rule of thumb, during the introduction phase, wisdom suggests you should focus on whatever manageable proportion of your target audience your budget allows. However, the focus should change during the growth phase, as growth will come from reaching more people (rather than loyalty). This will mean broadening your target audience and appealing to as many customers as possible. Market research helps you gather demographic information, preferences, and behaviours, enabling you to tailor your products and services to meet their needs.

2. Assess market demand

Before launching or relaunching a product, it’s vital to determine if there’s a demand for it. Conduct surveys, focus groups, and analyse industry reports to gauge interest and identify potential gaps in the market. Our research shows that growing brands often considered “worth paying more for” and “worth investing in” when considering social proof of concept. These elements are shown to increase demand, potentially influencing consumers to pay premiums, buy company shares, or even generate interest in working for the company – massive rewards beyond the traditional scope of a ‘launch’.

3. Competitive analysis

Understanding your competitors is key to positioning your brand effectively. Market research allows you to analyse competitors' strengths and weaknesses, uncovering opportunities to differentiate your business and identify potential threats. Essentially, the advantage of more regular competitor tracking research is that you can monitor movements more closely, identify early changes, and take action when required (sooner rather than later). Imagine a new competitor launching a product with a disruptive advertising campaign. Consistent brand tracking could alert you to drops in your consumer awareness or shifts in consumer sentiment towards your brand or even a competitor. This allows you to analyse the situation and adjust your strategy, minimising any long-term impact.

4. Trend identification

New trends are emerging all the time and offer a simple way to keep your brand topical and moving forward. Staying ahead of market trends is crucial for long-term success. Regularly conducting market research helps you identify emerging trends and adjust your strategies accordingly, ensuring your business remains relevant and competitive. Some tech companies, for example, have struggled because they misplaced their trust in the wrong trends, such as Xerox believing the future was in copying machines, or Kodak and Polaroid believing it was in film (rather than digital!). Finding ways to adapt and improve is vital for all businesses. However, by and large, these problems can be averted by understanding consumer needs and seeking out that which is new and different at the start, but might be tomorrow’s new normal.

5. Informed decision-making

Market research provides the data needed to make informed choices about product development, marketing strategies, and business expansion. Many of us are data-driven and rely on evidence to make decisions. Metrics are objective and reliable data for decision-making. And, data-driven decisions are more likely to lead to success. Instead of relying on personal opinions, your choices can be based on concrete, measurable data, leading to more informed and effective choices. This can help you make decisions easier as it allows for a more rational approach to decision-making. In business, numbers often trump emotions. Spotify provides the music-tech industry with a wealth of insights by capturing data about a song’s playtime, what kind of device is streaming, and when it sis played. Their ‘fans first’ initiative allows artists to identify and give their most dedicated fans access to special offers on concert tickets, merch and more.

6. Risk mitigation

Launching a new product or entering a new market involves risks. Market research can identify potential challenges and allow you to develop strategies to mitigate them, reducing the likelihood of costly mistakes. People avoid risks generally, especially when it comes to spending money, and growing a company and launching new products and services, are no exceptions to this rule. Let’s face it, innovation is costly and often risky. Most new products fail, with estimates ranging from a high of 80% to a more moderate 50%. Stagnation, remember, is the antithesis of innovation.

7. Customer insights

Understanding customer behaviour and preferences can enhance your marketing efforts. Market research can reveal why customers choose your product over others and what influences their purchasing decisions, helping you refine your marketing messages. Momentum-based marketing needs to focus on customer acquisition and winning customers. Brand building is all about more people buying into what you’re doing. Therefore, the most essential step in building a brand is to put the customer at the heart of your business. Focus on understanding their wants and how you’ll deliver solutions. Your core objective should be making customers care about you. This will undeniably require allocating a significant chunk of your budget towards building awareness and telling your brand story.

8. Product development

Customer feedback gathered through market research can guide your product development process. By understanding what features or improvements customers want, you can create products that better meet their needs and stand out in the market. It’s essential to emphasise brand distinctiveness, and be clear about why people rationally or emotionally need your new product, rather than solely attempting to raise awareness about the new product/service.

9. Brand positioning

Brands compete for the mind. Ultimately, how customers perceive your brand will determine the longevity of your company. Effective brand positioning requires a deep understanding of the market landscape. Market research helps you identify your brand’s unique value proposition and communicate it effectively to your target audience, enhancing brand recognition and loyalty.

10. Monitor brand momentum

Continuous market research is essential for tracking your brand’s performance and brand momentum (for more on this please check out my latest book – Brand Momentum). Regularly collecting and analysing data on brand awareness, customer satisfaction, and market share allows you to monitor progress and make necessary adjustments to maintain growth.

Conclusion

Market research is not a one-time task but an ongoing process that plays a pivotal role in business growth and brand momentum. For startups and entrepreneurs, leveraging market research can provide the insights needed to make informed decisions, stay ahead of the competition, and meet customer needs effectively. By incorporating these ten tips into your startup strategy, you can harness the power of market research to drive your business toward long-term and sustainable brand growth and success.

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