When you’re starting or running a small business in today’s always-online world, it’s very easy to become distracted. While there are many demands on your time, the primary goal behind every small or medium sized business always comes back to sales revenue.
Sales are the backbone of your business, regardless of sector, product or service. And if this aspect of your business is struggling, then all other parts will inevitably follow. As with most factors of success in business, the answer lies in proper preparation and time spent on market research.
Market research shapes the future of small business success
One of the most important and powerful tools you always have access to lies in small business market research. Every business must have a plan for its future, and a clear roadmap for success. The best roadmap is one that generates the maximum number of sales possible.
Networking, talking to contacts, surveys and other forms of online and offline market research will give you insight into how to improve sales. Here’s why putting time into research can shape the future of your business:
- You will reach new customers and clients
You need to pull in new clients and customers. Whether this is physically through the door, to an ecommerce site, or any other platform, this is your number one priority. By conducting efficient market research, you will be able to monitor not only your own success in achieving this, but also that of your competitors.
By properly understanding how your direct competitors are faring, you will be able to adjust your strategy accordingly. Research is not something that should be carried out once for your initial business strategy, but constantly and often throughout the business year.
Making decisions regarding where to advertise, which online channels to use, and properly utilising the huge opportunities of social media, you can attract customers who are unhappy with your competitors. Adjust your offering to meet their needs, and you will gain new customers.
Tracking consumer responses to competitors will also show you where opportunities lie for partnerships with companies that could help you grow your business.
- You will increase customer spend and customer loyalty
A common mistake made by start-ups and SMEs is to only concentrate on winning new customers. Far more important in the long-term is cultivating and increasing a loyal, long-standing customer base. This is why thorough and consistent market research is key.
A key metric to include in research is Customer Lifetime Value (CLV). This concept hinges on understanding that your customers are assets that should be managed. Their value, therefore, should be measured and monitored. Proper assessment of CLVs are particularly important for small businesses creating services that are directly customer orientated. However, it’s also an important metric for other businesses that are offering secondary services.
CLV relates to the amount customers spend across every transaction. Research in this area allows small businesses to understand what consumers want and to adjust offerings accordingly. Market researchers can also ascertain why past customers have decided not to come back, and further adjust the direction of customer offerings to accommodate this.
- You will be able to set accurate and achievable goals
The most successful SMEs understand where they stand in their chosen market. They also have clear, realistic aspirations and goals. Market research that correctly combines qualitative and quantitative data helps business owners produce accurate long-term forecasts that they can realistically work towards.
If it is discovered that realistic predictions fail to match aspirations, then that’s the time to work out ways to improve. Research is a motivator, as well as an instigator of judicious change.
If the predictions fall short of your aspirations, this will be the perfect time to plan how to improve the situation.
James Turner, Managing Director of Turner Little Limited, says: “Starting a new business, and running an SME is an incredibly challenging job. There are many aspects that need to be in harmony for a company to fulfil its potential. In the UK, we rely on small and medium sized businesses to bolster the economy, and while innovative ideas are one part of launching a successful company, the ability to manage long-term success is just as important.”
“A market research strategy that goes beyond initial customer expectations of your product or service is a vital part of success. Organisation and thorough, in-depth analysis of the response to your business, and to that of your competitors, will push you past your competition. Market research will allow you to accurately predict future success and adjust your product or service accordingly. It should be part of your long-term business strategy from the start.”
About Turner Little
Founded in 1998 in Yorkshire, UK, Turner Little is a specialist UK and offshore company formation, banking and corporate services provider. Our services include company formation, UK and offshore banking, asset protection, credit correction, trademarking and trusts. Other services include Internet services, mail forwarding, wills and probate. Turner Little’s vision is to offer the best possible service, together with market leading products.