Performing product market research on a regular basis can help you determine what kinds of new products can bring a profit. It can also let you know if the current products you’re selling are meeting your customers’ needs and expectations.
Perhaps you’ll discover, for instance, that simply changing a product’s design or tweaking your delivery methods can help increase sales.
Primary Research (get to know your target audience)
Primary product market research is a fundamental way to connect directly with and learn about your target audience.
It can include things like online surveys and questionnaires, getting feedback from focus groups of potential customers, and Interviews by telephone or in person.
According to entrepreneur.com, some questions you should ask are:
- What factors do you consider when purchasing this or a similar product?
- Can you explain what you like or dislike about current products currently on the market?
- Are there any areas you would suggest for improvement?
- What do you think would be an appropriate price for this product(s)?
Secondary Research (learn about what’s trending)
Meaningful information for ecommerce sellers can come in many different forms. And that’s where secondary research comes in because it can reveal important clues about what your target market is currently buying.
In other words, when you find out what’s trending you can then incorporate this information into your business planning.
Google trends is a good place to start. It provides a variety of data related to any search query you enter. In short, it displays useful visuals such as graphs showing peaks and declines and much more.
You can also join like-minded Reddit community groups that are focused on your industry. Here you can get a good idea of what people are purchasing and why you might be losing visitors to the competition.
These are just a couple of examples. But there are many more ways to approach secondary research.
Suffice it to say that it’s crucial to develop an understanding of your industry as well as your key demographics. In fact, these are the basis of your overall business strategy.
In the long run, proper product market research is an ever-evolving, ongoing process. But neglecting it is like driving a car from New York to Colorado without a map . . . you’re likely to get lost and frustrated along the way.
And that’s neither good for journeying nor for operating a successful business.
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