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Why Market Research Is Important

By: Toby Finden-Crofts


Why Market Research Is Important


Whilst many people may have heard of the term financial market research, there will be a large number who will be unfamiliar with what it relates to and why it is important.

Understanding what market research entails, how it can be carried out and the ways in which companies and businesses can benefit from it could be incredibly useful to you and your team.


The Importance Of Market Research


Using market research services to gather accurate and up to date information about current and potential customers helps to enable financial services companies to maximise their success in a number of ways.

It’s essential to invest time, money and resource into carrying out market research to fully understand the market, the customer and the overall business landscape.

Some of the key benefits of carrying out market research include:


1.     Solving Business Challenges


Market research can help to solve business challenges within a wide range of financial markets and services. These challenges can vary dramatically depending on a few factors and circumstances – all of which must be taken into consideration to find the best solution.

Using a range of qualitative and quantitative methodologies, research can be carried out to obtain information and offer insight into potential solutions for key business challenges.

Often financial services companies will benefit from learning about different perspectives or viewpoints, or proposed solutions that customers may suggest.

Market research can help to clearly define where the business challenges are arising and gain insight into the exact root of the issue. This can be a vital step in the process of overcoming the challenge and could result in:

  • Higher levels of customer satisfaction
  • Greater levels of productivity
  • More efficient day to day operations


2.     Outsell Competitors


Staying ahead of the competition is essential when it comes to building a successful and sustainable company.

By taking the time to find out exactly what your target market wants and where your customers want to see improvement or change, you can maintain your competitive edge in an increasingly challenging market. Market research can offer insights such as the best places to advertise or an emerging trend.

Using market research to deliver better products, direct your business strategy and provide your customers with the services they really want will help you to outsell competitors and stay ahead.


3.     Allows For Informed Decisions


Carrying out market research is an important step to take if you want to make better informed business decisions backed up by reliable data.

By getting real life feedback (both positive and negative) and listening to the viewpoints and frustrations of existing or potential customers, you will be able to direct your decision making accordingly.

Market research can also help you to assess how well an existing product has been received, or to explore the viability of a future product concept.


4.     Discovery Of New Marketing Trends


Carrying out market research on a regular basis enables companies to identify new marketing trends as and when they arise.

Gaining insight and knowledge into emerging trends will enable your company to understand the market you’re communicating with as well as identifying key opportunities for growth.

It’s important to ensure that you carry out market research consistently to avoid complacency and to keep up with the latest developments across the board.


What Is The Main Purpose Of Market Research?


The main purpose of market research is to ensure that you are doing as much as possible to satisfy customers and are providing the best products and services.

Market research provides businesses and individuals with the insight and information that they require to make the right decisions. Both positive and negative feedback can be used in a productive way to make effective choices and key changes with a business.

Customers will feel valued when their viewpoints are listened to, and their requests actioned – leading to increased customer loyalty, retention, and the likelihood that they will recommend your services to others.

For real life examples of the important role market research can play, take a look at some of these fascinating and diverse financial case studies.


Explore Research In Finance’s Market Insights


If you want to learn more about how market research can help to guide your business decisions and enable you achieve your business goals, register with us today.