Marketing without data is like driving with your eyes closed.
— Marketing scientist and author Dan Zarrella
Dan Zarrella is spot-on. You need data to make informed decisions about marketing. Otherwise, you’ll blindly develop and execute your startup’s marketing strategy.
And how do you obtain this all-important data? Through market research.
“Market research lays out roadmaps for businesses,” says market research firm Drive Research. “Simple directional research can tell you whether to turn left or turn right, which can save your business time and money.”
But market research isn’t so simple. You’ve got a number of market research techniques to pick from. So, open your eyes and pay attention as we lay out market research techniques that you can apply to your startup — techniques that can drive growth.
Key Takeaways
- Market research helps analyze information to create a better customer experience
- Quantitative and qualitative research helps make smarter decisions
- Statistics collected through market research help zero in on audience preferences and avoid psychological bias
What Is Market Research?
Market research employs different techniques to gather information and get a better understanding of your target audience. Your startup can use market research to design in-demand products, improve services, enhance the customer experience, and develop on-target marketing campaigns.
You can engage in two types of market research:
- Qualitative research involves collecting and analyzing non-numerical data (text, video, or audio, for example) to understand concepts, opinions, or experiences, according to Scribbr, an online editing and proofreading service. This research might be done by conducting focus groups with potential customers or interviewing decision-makers at target clients.
- Quantitative research involves gathering and analyzing numerical data. This data might include web traffic statistics, sales numbers, or customer churn rates.
Why Does Market Research Matter?
Market research helps target the right audience, at the right time, on the right platform. Performing market research not only breeds data-driven confidence in audience-related decisions but also enables you, depending on the circumstances, to either raise or reduce business expenses.
Market research also helps avoid psychological bias in your decision-making. Instead of following a gut instinct or a handful of individual opinions, you can rely on broader research to, for instance, to make progress with metrics like KPIs (key performance indicators) or ROI (return on investment).
5 Quantitative Market Research Techniques
Embracing an array of market research techniques can help analyze different patterns and fine-tune your marketing campaigns. To get started, here are five quantitative B2B marketing research techniques.
1. Regression Analysis
Regression analysis demonstrates how several variables affect a dependent variable. This type of analysis helps you understand which factors have the greatest influence on customers. For example, regression analysis can help determine the likelihood that a customer will recommend your product or service based on variables such as prices and incentives.
2. T-Test
A t-test is one of the simplest techniques to evaluate whether there’s a statistical difference between the mean (average value) of a variable from one or two samples, according to scientific software company GraphPad. This test is particularly useful in drawing conclusions about a larger population based on a small sample size (such as observations from fewer than 30 people).
So, let’s say you conduct a survey of two customer groups in separate parts of the country about a new feature of your productivity software. Group A awards an 8/10 rating to this software feature, while Group B assigns a lower rating of 4/10. A t-test would help determine how valuable this software feature would be to a broad collection of customers.
3. Cluster Analysis
One of the most popular market research techniques, cluster analysis is a statistical method for processing data, according to business software provider Qualtrics. “It works by organizing items into groups — or clusters — based on how closely associated they are,” says Qualtrics.
In the context of market research, cluster analysis can help pin down categories like age groups, earnings brackets, and urban, suburban, or rural location, Qualtrics says. “In marketing, cluster analysis can be used for audience segmentation, so that different customer groups can be targeted with the most relevant messages,” the company says.
4. Conjoint Analysis
Conjoint analysis seeks to understand how people make decisions, says HubSpot, a provider of customer relationship management (CRM) software. This analysis combines realistic hypothetical scenarios to measure buying decisions and customer preferences. For example, conjoint analysis can help nail down your target audience’s ideal price points or preferred communication methods.
5. Text Analytics and Sentiment Analysis
Text analytics and sentiment analysis are separate but related concepts in market research.
Qualtrics describes text analytics as “the process of analyzing unstructured text, extracting relevant information, and transforming it into useful business intelligence.”
Meanwhile, sentiment analysis determines whether an expression is positive, negative, or neutral, and to what degree, Qualtrics explains.
“In other words, text analytics studies the face value of the words, including the grammar and the relationships among the words,” says Qualtrics. “Simply put, text analytics gives you the meaning. Sentiment analysis gives you insight into the emotion behind the words.”
Conduct Market Research to Boost Your Startup’s Growth
You can choose from a number of qualitative and quantitative market research techniques. But it’s critical to put your resources toward market research that aligns with your business goals. Whether you’re looking to build brand awareness or convert more leads, market research should contribute to increased sales and revenue.
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