Market research surveys are an affordable and reliable way to gather intelligence from your target markets regarding various topics. They are used to acquire demographic details, information on your audience’s buying habits, service preferences, and how they approach your brand. Also, these surveys can help determine what type of products/services your audience wants to have. Market research surveys are equally effective for startups, small businesses, and large enterprises.
Why Are Market Research Surveys Important?
Continuous market research is one of the top priorities of any modern business. You need to keep yourself in the loop to have the necessary data to make the right decisions regarding products, services, marketing, advertising, customer communication, etc. Market research surveys are one of the numerous tools for conducting market research, and thanks to their accuracy and affordability, they make an excellent investment.
It’s important to not confuse market research and marketing research. Market research helps you collect and analyze quantitative data regarding a specific market. There are two types of market research – primary and secondary. Primary market research is the process of gathering intelligence that you haven’t collected before. This is one of the primary use cases of market research surveys. Secondary market research is the accumulation of data that has already been gathered by somebody else.
For example, if you’re planning to expand your business overseas, you’ll most likely need to know a few things:
- Which people would be interested in trying out your product/service?
- What kind of alternatives do they currently use?
- What is the price of those alternatives?
- Does the alternative product offer the same benefits as yours?
For this, you’ll need to conduct primary market research. Based on the data, you’ll be able to determine the market segment that’s best suited for your offers and quantify it by age, gender, income, location, status, etc. depending on what works for you.
In contrast, marketing research gathers information that can be used to identify opportunities, attract more customers, and propose solutions to customers’ problems. Getting back to our example, for marketing research purposes you’ll more likely ask customers to test a packaging design, give feedback on the price, a marketing message, or an online/offline ad. In other words, marketing research helps you find key touchpoints that will resonate with your target audience, and even help you to win some customers over from competitors.
What Can Market Research Surveys Do for Your Company?
Now that we know the importance of market research, let’s take a detailed look at what it can accomplish for your business.
1. Reach Your Target Audience
Surveys are an excellent means of extracting valuable data from customers, especially those that are important to your business. If you have a large sample of respondents (a large group of social media followers, for instance), then it’s a great place to start.
2. Research and Analyze a Market
To spend your marketing budget as precisely as possible, you need to have reliable data to work with. A good market research survey can help you understand everything you need to make data-driven decisions. Make sure to include questions regarding the aspects you’re most uncertain about (those can be anything – price, features, quality, market size, etc.).
3. Research and Test for Your Product Launch
Market research surveys allow you to get detailed information regarding your products right from your target customers’ minds. You can ask them all sorts of questions including:
- How well is our product performing compared to your expectations?
- How reliable is our product?
- Do you like the marketing messages?
- What’s your experience with our customer support?
- Do you think you need a new product for your XYZ needs?
- What feature would you like to see added next?
- How does the quality of our product compare to XYZ competitor’s product?
4. Understand Your Competitiveness
Market research surveys allow you to understand where you stand concerning competition. There is no better way to do this than to directly ask your target market. With the right questions, you can find out whether your marketing messages make sense to them and if they are more inclined to buy your products.
5. Market Segmentation
Market segments are small groups of customers that share common attributes like demographic information, geographical location, product usage, buying habits, brand affinity, lifestyle preferences, etc. Market research surveys can help you group your customers into segments to make unique offers, personalize communication, and improve marketing efforts.
6. Test Everything
Do you know what makes people spend thousands of dollars on a new iPhone, even though they can get two or even three times cheaper alternatives that will, for an overwhelmingly large part, offer the same functionality? Because brands like Apple, Nike, and BMW constantly analyze their target markets. Based on the data, they fine-tune their products, services, and marketing messages to fit their customers, who in turn refuse to spend less on alternative products. Market research surveys allow you to test just about anything – marketing messages, branding, positioning, pricing, communication – whatever you need to make your offers irresistible for customers.
Market Research Survey Questions Overview
To understand what types of questions you need to be asking, first, you need to determine a couple of things. Since you don’t want to spend too much of your audience’s time, you need to be specific with your questions. Also, you don’t want to be sending out surveys just for the sake of it – they need to have a specific purpose.
1. The Goal
First, define the goal of the survey. What are you trying to achieve with the data? How will your solution benefit the customer or your company? For example, your goal could be expanding into a new market.
2. Research Objectives
The research objectives are essentially the pillars of your goal. They work well when formulated in the form of a question. For instance, if your goal is to expand into a new market, a research objective could be “What type of similar products do people currently use in XYZ market?”
3. Define the Sample Size
To define a sample size that will be statistically correct, you’ll need to determine two things: the number of people in your audience and the error margin of your surveys. The first one is self-explanatory and the second one is directly linked to expenses. The higher the error margin, the fewer people you will need to survey. Likewise, the lower the error margin, the more accurate your data becomes. Below is a table with populations with relation to the number of required respondents based on error margins:
Population
|
3% error margin
|
5% error margin
|
10% error margin
|
500
|
345
|
220
|
80
|
1000
|
525
|
285
|
90
|
3000
|
810
|
350
|
100
|
5000
|
910
|
370
|
100
|
10,000
|
1,000
|
385
|
100
|
100,000
|
1,100
|
400
|
100
|
1,000,000
|
1,100
|
400
|
100
|
So for instance, if your target audience is ~1000 people, you will need 100, 350, or 810 respondents to constitute 10%, 5%, and 3% error margins, respectively.
4. Audience Targeting
It’s important to target the right audience with your surveys. You need to find a good mix between sample size and audience criteria. If the specifics of your audience are too narrow, it will get hard and expensive to find enough respondents. It’s often a good idea to take a large sample of respondents and use screening questions at the beginning to either qualify or disqualify the respondents.
Here is a screening question example: “How often do you use the XYZ product/service?”
Answers can be “Very rarely”, “Once every few days”, “Everyday”, “A couple of times a day”, “More than 3 hours a day”.
People who have answered “Very rarely” and “Once every few days” can be disqualified.
5. Decide on the Timeline
Just like with email marketing or any other communication channel, certain times are most convenient to reach out to your audience. In general, the best times are around 9-10 AM, 2-3 PM, and 9-11 PM. Of course, each audience may have its specifics, which you will need to implement.
6. Decide on the Survey Format
With the increase in mobile usage over the past several years, it would be unwise not to consider your respondents’ device preferences. In general, respondents tend to answer from a computer during the morning and afternoon, while using their mobile device in the late afternoon and evening. Again, you will need to apply the specifics of your target audience here, too.
One last, and crucial, thing to note is that you need to actually listen to your respondents. If you send out a survey and disregard the data you receive, customers may simply choose to never respond to your surveys again, or worst case, turn to a competitor. After all, why bother with a brand that asks your opinion and doesn’t do anything to address your challenges, needs, and wants?