19 Simple Market Research Tips for Small Business Owners

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For most small business owners, market research appear to fall into two categories:

A. Expensive marketing consulting services, or…

B. Just “trusting their gut”.

While scenario B might, depending on your personal years of industry experience, actually be useful in a few cases, pursuing scenario A is not essential.

There are, in fact, a number of ways in which you can do your own market research. But let’s start at the beginning:

1. Understand why market research matters:

a. It helps you to understand not only what your customers or clients want, but also what matters to them. What influences their choices? If it is a ground-breaking product or service, do they even know that a solution to their situation exists? Do they even know they need a solution?

The internet is littered with stories about founders who built businesses and created products based on their own perceptions, only to find out too late that nobody cares.

b. Understand what you are up against: When offering a product or service that competes in a crowded market, understanding who your competitors are, and what they offer – and for which market segments – is crucial.

Knowing how your competition has branded themselves will allow you to position yourself in such a way that you appear to be in a space where – in the public’s perception – there are no other options.

c. Understanding the above will help you to avoid costly mistakes, and allow you do make future business decisions with more confidence.

2. Researching existing customers:

a. Talking to existing customers, in person, can help you ascertain what you are doing right, what could be better, and whether any specific new product or service would hold enough value for them to make it worth your while.

b. Use free tools like Google forms or free online survey tools to collect information.

c. Pay attention to not only feedback, but complaints. Fair enough, some people are impossible to please. But if the same complaint comes up repeatedly, you may want to find a way to improve, or to create an offer or product that addresses the complaint.

d. Observe the buying habits of your existing clientele. Which products or services are the most popular?

Side note: If you are just starting out, with no customers, feedback or analytics to work with, look at reviews and complaints made about products and services similar to what you want to offer. You will quickly see what matters to your potential buyers, and you can plan accordingly.

If you would like to launch a completely new product or services, talk to people first. Not just family and friends, but people who are likely to be a typical buyer. If you want to – for instance – sell a new tool to plumbers, it doesn’t make sense to ask advice from an accountant.

3. Research your competition:

a. Look at your competitors’ websites or stores to see what they are doing well – or what can be done better.

b. Look at their social media, and see what works for them. Keep in mind that posts with personal content (child’s birthday pics, for instance) which get high engagement, are unlikely to drive buyer traffic to their websites. Look at posts designed to drive traffic back to their websites. See what works, and what doesn’t.

Researching these will show you what you will be up against.

If none of your competitors are doing well, you can also look at similar businesses in larger cities, and research profiles that do well. This will offer some insights about what you can offer your own social media audiences to stand out above the competition.

c. Look at the reviews about your competitors, especially negative reviews. Look for patterns in complaints. Patterns are often opportunities to position yourself as someone who specifically addresses an overlooked need.

d. For all of the above, identify things you can do better. In some cases, it might be something as simple as posting more consistently. In other cases, it might be about creating more useful content.

4. Make use of free online tools for your market research:

a. Google trends will allow you to see how public interest has changed for any specific search term, over any given period. If you are offering something new, make a point of researching trends around potential search terms for people facing an issue you want to help resolve.

b. Look at the insights on your Google Business profile, if you have one. Aside from reviews, and depending on how many visitors it receives, you may have quite a bit of data to explore.

c. Research your social media analytics. Decide which performance metrics you value the most, and monitor them. Keep in mind that you will need – in the case of several social networks – a business account in order to have access to analytics.

d. In order to find people to talk to directly, identify industry forums and local Facebook groups to engage with potential buyers directly. If your business markets to other businesses, you could also explore Linkedin groups.

5. Real-life testing or new products and services:

a. In order to determine interest, run a small scale promotion before your full scale launch.

b. Collect feedback as quickly as possible, and adjust your offer (and your marketing plan) accordingly.

6. Don’t stop researching:

a. Market research is not a one-off thing. It’s part of running your business. As technology evolves, buyer expectations shift, and what is good enough today might not be good enough in a year from now. Keep your finger on the proverbial pulse. When things change, be ready to adapt instantly. A small change in the right direction could place you ahead of competitors.

b. Simply make a habit of checking useful information sources regularly. Look at industry trends, Google trends, feedback from your existing customers, and reviews and complaints from your competitors customers.

In conclusion:

Doing market research on a tight budget doesn’t need to be complicated.

It all comes down to a few basic things:

a. Listen to your customers – in person, in online reviews and even in support emails.

b. Watch your competitors. What are they doing? What are they doing well, and what can you improve upon? What can you package in such a way that people think you are the only one offering it?

c. When testing the market with a new product or service, start small. Minimize the risk. If the test goes well, decide whether you need to do a larger test, or whether you can simply go ahead and implement it at full scale.

Your choice will depend on the offer, and the market you operate in. If in doubt, approach it like a good tradesman: Measure twice, cut once.

If you are unsure about the results of any real-life market test, reconsider the test, and run it again before you make your choice.