Business research is a process of obtaining a detailed study of all the business areas including the market and the customers and using that information to maximize the sales & profit of the business.
When you run a business, there are several things you can research on. You research everything from market shares to sales. Business research helps you make intelligent and informed decisions and identify the key areas to invest your money in.
For example, an automobile company plans to unveil the latest car model in the market. For that, they need to develop strategies to explore and monitor customer demand. So, the company will conduct research to collect information and analyze market trends. This will help them draw better conclusions and come up with a fine quality car at the right price resulting in a larger market share.
Types of Business Research
Researchers use various research methods to collect relevant data so that business enterprises can make wiser decisions. There are two main types of methods to carry out business research.
- Quantitative Business Research
It is a method of analyzing the largest group that meets your target goals. It uses mathematical techniques and data to explain the important stats about your business and market. Usually, this data uses multiple-choice questionnaires that can help you be profitable with your sales. For instance, quantitative research can answer questions such as; - Are your customers aware of the services or products you offer?
- How many people are interested in buying your products or services?
- Who are your best customers and what are their buying habits?
- How long the visitor stays on your website, and which is their exit page?
The result of quantitative business research is in the numerical form, such as;
- 40% of customers rate the new product as “attractive”
- 70% of prospective customers use the Internet to book their hotel room
- 6 out of 10 customers will buy a new food product after trying the free in-store sample
The quantitative research methods include various surveys such as postal, telephone, online, and face-to-face.
- Qualitative Business Research
This business research focuses on attitudes, intentions, and beliefs. Qualitative research includes questions such as “Why”? or “How?”.
The aim of this research is to gain insights into customers’ distinct behaviors and response to a new product. This research is beneficial for your new products and marketing initiatives to test reactions and rectify your approach.
You can collect qualitative data using common methods such as case studies, focus groups, and interviews. This data is often valuable but can be time-consuming and expensive to collect, especially for a small business or a startup.
Benefits of Business Research
- Business Research helps you communicate with current and potential customers in a better way.
- It helps you identify opportunities and threats in the marketplace.
- It helps you minimize risks.
- Business research is used to plan investments and financial outcomes effectively.
- It helps you build a better market position.
- It can keep you updated with current trends and innovations in the market.
Why is Business Research Important?
Business research helps businesses understand their customers’ buying patterns, preferences and pain points, gain deeper insights into the contenders, current market trends, and demographics. Using effective strategies to understand the demand and supply of the market, businesses can always stay ahead of the competition. Using business research, they can reduce costs and design solutions that aim at the market demand and their target audience.
Chances of failures are less with business research as it gives an idea of the target customers and the perfect time to launch a product. In addition, with a deep understanding of brand value, businesses can constantly innovate to meet customer requirements. This is essential to grow market share and revenue. The SWOT analysis in business research is crucial to make an informed decision and making the business a huge success.
Research is the building block of any business. It acts as a catalyst to thrive in the market. So, never underestimate the value of market research and leverage its benefits to give an extra edge to your business.
Authors Bio: Ritesh Patil is the co-founder of Mobisoft Infotech that helps startups and enterprises in mobile technology. He loves technology, especially mobile technology. He’s an avid blogger and writes on the mobile application. He works in a leading mobile app development company with skilled iOS and Android app developers.