Successful businesses make profits by understanding their customers and identifying their needs. Good customer research helps you choose products, tailor your marketing, and develop sales tactics for the people in your market based on reliable, accurate information.
Customer research should be part of your overall market research and should be conducted regularly. While your market research looks broadly at your customers, competition and industry to identify who you will market to, customer research provides more in-depth information on the needs, wants, expectations and behaviours of your customers.
By identifying information about your consumers such as where they work, what they read and where they look at advertising, you can improve the strategies you use to attract them. It is also important to understand their purchasing behaviour and attitudes with regards to brands and products.Testing new product or marketing concepts with potential customers is also a good way to prepare for a launch to see if your work has potential to translate to success.
Identifying your customers' needs and preferences allows you to tailor the strategies and tactics you use in your marketing plan. This will help you to:
- attract more customers
- set the best price for your products
- create the right marketing message
- increase how much your customers spend
- increase how often your customers spend
- increase your sales
- decrease your costs
- refine your approach to customer service.
This guide explains how you can grow your business by identifying customer needs and preferences.