how to make a market research step by step

How to Do Market Research: The Complete Guide

Learn how to do market research with this step-by-step guide, complete with templates, tools and real-world examples.

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What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.

Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.

In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.

What is market research?

Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry. The purpose of market research is to offer valuable insight into the preferences and behaviors of your target audience, and anticipate shifts in market trends and the competitive landscape. This information helps you make data-driven decisions, develop effective strategies for your business, and maximize your chances of long-term growth.

Why is market research important? 

By understanding the significance of market research, you can make sure you’re asking the right questions and using the process to your advantage. Some of the benefits of market research include:

• Informed decision-making: Market research provides you with the data and insights you need to make smart decisions for your business. It helps you identify opportunities, assess risks and tailor your strategies to meet the demands of the market. Without market research, decisions are often based on assumptions or guesswork, leading to costly mistakes.
• Customer-centric approach: A cornerstone of market research involves developing a deep understanding of customer needs and preferences. This gives you valuable insights into your target audience, helping you develop products, services and marketing campaigns that resonate with your customers.
• Competitive advantage: By conducting market research, you’ll gain a competitive edge. You’ll be able to identify gaps in the market, analyze competitor strengths and weaknesses, and position your business strategically. This enables you to create unique value propositions, differentiate yourself from competitors, and seize opportunities that others may overlook.
• Risk mitigation: Market research helps you anticipate market shifts and potential challenges. By identifying threats early, you can proactively adjust their strategies to mitigate risks and respond effectively to changing circumstances. This proactive approach is particularly valuable in volatile industries.
• Resource optimization: Conducting market research allows organizations to allocate their time, money and resources more efficiently. It ensures that investments are made in areas with the highest potential return on investment, reducing wasted resources and improving overall business performance.
• Adaptation to market trends: Markets evolve rapidly, driven by technological advancements, cultural shifts and changing consumer attitudes. Market research ensures that you stay ahead of these trends and adapt your offerings accordingly so you can avoid becoming obsolete. 

As you can see, market research empowers businesses to make data-driven decisions, cater to customer needs, outperform competitors, mitigate risks, optimize resources and stay agile in a dynamic marketplace. These benefits make it a huge industry; the global market research services market is expected to grow from $76.37 billion in 2021 to $108.57 billion in 2026 . Now, let’s dig into the different types of market research that can help you achieve these benefits.

Types of market research 

• Qualitative research
• Quantitative research
• Exploratory research
• Descriptive research
• Causal research
• Cross-sectional research
• Longitudinal research

Despite its advantages, 23% of organizations don’t have a clear market research strategy. Part of developing a strategy involves choosing the right type of market research for your business goals. The most commonly used approaches include:

1. Qualitative research

Qualitative research focuses on understanding the underlying motivations, attitudes and perceptions of individuals or groups. It is typically conducted through techniques like in-depth interviews, focus groups and content analysis — methods we’ll discuss further in the sections below. Qualitative research provides rich, nuanced insights that can inform product development, marketing strategies and brand positioning.

2. Quantitative research

Quantitative research, in contrast to qualitative research, involves the collection and analysis of numerical data, often through surveys, experiments and structured questionnaires. This approach allows for statistical analysis and the measurement of trends, making it suitable for large-scale market studies and hypothesis testing. While it’s worthwhile using a mix of qualitative and quantitative research, most businesses prioritize the latter because it is scientific, measurable and easily replicated across different experiments.

3. Exploratory research

Whether you’re conducting qualitative or quantitative research or a mix of both, exploratory research is often the first step. Its primary goal is to help you understand a market or problem so you can gain insights and identify potential issues or opportunities. This type of market research is less structured and is typically conducted through open-ended interviews, focus groups or secondary data analysis. Exploratory research is valuable when entering new markets or exploring new product ideas.

4. Descriptive research

As its name implies, descriptive research seeks to describe a market, population or phenomenon in detail. It involves collecting and summarizing data to answer questions about audience demographics and behaviors, market size, and current trends. Surveys, observational studies and content analysis are common methods used in descriptive research. 

5. Causal research

Causal research aims to establish cause-and-effect relationships between variables. It investigates whether changes in one variable result in changes in another. Experimental designs, A/B testing and regression analysis are common causal research methods. This sheds light on how specific marketing strategies or product changes impact consumer behavior.

6. Cross-sectional research

Cross-sectional market research involves collecting data from a sample of the population at a single point in time. It is used to analyze differences, relationships or trends among various groups within a population. Cross-sectional studies are helpful for market segmentation, identifying target audiences and assessing market trends at a specific moment.

7. Longitudinal research

Longitudinal research, in contrast to cross-sectional research, collects data from the same subjects over an extended period. This allows for the analysis of trends, changes and developments over time. Longitudinal studies are useful for tracking long-term developments in consumer preferences, brand loyalty and market dynamics.

Each type of market research has its strengths and weaknesses, and the method you choose depends on your specific research goals and the depth of understanding you’re aiming to achieve. In the following sections, we’ll delve into primary and secondary research approaches and specific research methods.

Primary vs. secondary market research

Market research of all types can be broadly categorized into two main approaches: primary research and secondary research. By understanding the differences between these approaches, you can better determine the most appropriate research method for your specific goals.

Primary market research 

Primary research involves the collection of original data straight from the source. Typically, this involves communicating directly with your target audience — through surveys, interviews, focus groups and more — to gather information. Here are some key attributes of primary market research:

• Customized data: Primary research provides data that is tailored to your research needs. You design a custom research study and gather information specific to your goals.
• Up-to-date insights: Because primary research involves communicating with customers, the data you collect reflects the most current market conditions and consumer behaviors.
• Time-consuming and resource-intensive: Despite its advantages, primary research can be labor-intensive and costly, especially when dealing with large sample sizes or complex study designs. Whether you hire a market research consultant, agency or use an in-house team, primary research studies consume a large amount of resources and time.

Secondary market research 

Secondary research, on the other hand, involves analyzing data that has already been compiled by third-party sources, such as online research tools, databases, news sites, industry reports and academic studies.

Here are the main characteristics of secondary market research:

• Cost-effective: Secondary research is generally more cost-effective than primary research since it doesn’t require building a research plan from scratch. You and your team can look at databases, websites and publications on an ongoing basis, without needing to design a custom experiment or hire a consultant. 
• Leverages multiple sources: Data tools and software extract data from multiple places across the web, and then consolidate that information within a single platform. This means you’ll get a greater amount of data and a wider scope from secondary research.
• Quick to access: You can access a wide range of information rapidly — often in seconds — if you’re using online research tools and databases. Because of this, you can act on insights sooner, rather than taking the time to develop an experiment. 

So, when should you use primary vs. secondary research? In practice, many market research projects incorporate both primary and secondary research to take advantage of the strengths of each approach.

One rule of thumb is to focus on secondary research to obtain background information, market trends or industry benchmarks. It is especially valuable for conducting preliminary research, competitor analysis, or when time and budget constraints are tight. Then, if you still have knowledge gaps or need to answer specific questions unique to your business model, use primary research to create a custom experiment. 

Market research methods

• Surveys and questionnaires
• Focus groups
• Observational research
• Online research tools
• Experiments
• Content analysis
• Ethnographic research

How do primary and secondary research approaches translate into specific research methods? Let’s take a look at the different ways you can gather data: 

1. Surveys and questionnaires

Surveys and questionnaires are popular methods for collecting structured data from a large number of respondents. They involve a set of predetermined questions that participants answer. Surveys can be conducted through various channels, including online tools, telephone interviews and in-person or online questionnaires. They are useful for gathering quantitative data and assessing customer demographics, opinions, preferences and needs. On average, customer surveys have a 33% response rate , so keep that in mind as you consider your sample size.

2. Interviews

Interviews are in-depth conversations with individuals or groups to gather qualitative insights. They can be structured (with predefined questions) or unstructured (with open-ended discussions). Interviews are valuable for exploring complex topics, uncovering motivations and obtaining detailed feedback. 

3. Focus groups

The most common primary research methods are in-depth webcam interviews and focus groups. Focus groups are a small gathering of participants who discuss a specific topic or product under the guidance of a moderator. These discussions are valuable for primary market research because they reveal insights into consumer attitudes, perceptions and emotions. Focus groups are especially useful for idea generation, concept testing and understanding group dynamics within your target audience.

4. Observational research

Observational research involves observing and recording participant behavior in a natural setting. This method is particularly valuable when studying consumer behavior in physical spaces, such as retail stores or public places. In some types of observational research, participants are aware you’re watching them; in other cases, you discreetly watch consumers without their knowledge, as they use your product. Either way, observational research provides firsthand insights into how people interact with products or environments.

5. Online research tools

You and your team can do your own secondary market research using online tools. These tools include data prospecting platforms and databases, as well as online surveys, social media listening, web analytics and sentiment analysis platforms. They help you gather data from online sources, monitor industry trends, track competitors, understand consumer preferences and keep tabs on online behavior. We’ll talk more about choosing the right market research tools in the sections that follow.

6. Experiments

Market research experiments are controlled tests of variables to determine causal relationships. While experiments are often associated with scientific research, they are also used in market research to assess the impact of specific marketing strategies, product features, or pricing and packaging changes.

7. Content analysis

Content analysis involves the systematic examination of textual, visual or audio content to identify patterns, themes and trends. It’s commonly applied to customer reviews, social media posts and other forms of online content to analyze consumer opinions and sentiments.

8. Ethnographic research

Ethnographic research immerses researchers into the daily lives of consumers to understand their behavior and culture. This method is particularly valuable when studying niche markets or exploring the cultural context of consumer choices.

How to do market research

• Set clear objectives
• Identify your target audience
• Choose your research methods
• Use the right market research tools
• Collect data
• Analyze data 
• Interpret your findings
• Identify opportunities and challenges
• Make informed business decisions
• Monitor and adapt

Now that you have gained insights into the various market research methods at your disposal, let’s delve into the practical aspects of how to conduct market research effectively. Here’s a quick step-by-step overview, from defining objectives to monitoring market shifts.

1. Set clear objectives

When you set clear and specific goals, you’re essentially creating a compass to guide your research questions and methodology. Start by precisely defining what you want to achieve. Are you launching a new product and want to understand its viability in the market? Are you evaluating customer satisfaction with a product redesign? 

Start by creating SMART goals — objectives that are specific, measurable, achievable, relevant and time-bound. Not only will this clarify your research focus from the outset, but it will also help you track progress and benchmark your success throughout the process. 

You should also consult with key stakeholders and team members to ensure alignment on your research objectives before diving into data collecting. This will help you gain diverse perspectives and insights that will shape your research approach.

2. Identify your target audience

Next, you’ll need to pinpoint your target audience to determine who should be included in your research. Begin by creating detailed buyer personas or stakeholder profiles. Consider demographic factors like age, gender, income and location, but also delve into psychographics, such as interests, values and pain points.

The more specific your target audience, the more accurate and actionable your research will be. Additionally, segment your audience if your research objectives involve studying different groups, such as current customers and potential leads.

If you already have existing customers, you can also hold conversations with them to better understand your target market. From there, you can refine your buyer personas and tailor your research methods accordingly.

3. Choose your research methods

Selecting the right research methods is crucial for gathering high-quality data. Start by considering the nature of your research objectives. If you’re exploring consumer preferences, surveys and interviews can provide valuable insights. For in-depth understanding, focus groups or observational research might be suitable. Consider using a mix of quantitative and qualitative methods to gain a well-rounded perspective. 

You’ll also need to consider your budget. Think about what you can realistically achieve using the time and resources available to you. If you have a fairly generous budget, you may want to try a mix of primary and secondary research approaches. If you’re doing market research for a startup , on the other hand, chances are your budget is somewhat limited. If that’s the case, try addressing your goals with secondary research tools before investing time and effort in a primary research study. 

4. Use the right market research tools

Whether you’re conducting primary or secondary research, you’ll need to choose the right tools. These can help you do anything from sending surveys to customers to monitoring trends and analyzing data. Here are some examples of popular market research tools:

• Market research software: Crunchbase is a platform that provides best-in-class company data, making it valuable for market research on growing companies and industries. You can use Crunchbase to access trusted, first-party funding data, revenue data, news and firmographics, enabling you to monitor industry trends and understand customer needs.

• Survey and questionnaire tools: SurveyMonkey is a widely used online survey platform that allows you to create, distribute and analyze surveys. Google Forms is a free tool that lets you create surveys and collect responses through Google Drive.
• Data analysis software: Microsoft Excel and Google Sheets are useful for conducting statistical analyses. SPSS is a powerful statistical analysis software used for data processing, analysis and reporting.
• Social listening tools: Brandwatch is a social listening and analytics platform that helps you monitor social media conversations, track sentiment and analyze trends. Mention is a media monitoring tool that allows you to track mentions of your brand, competitors and keywords across various online sources.
• Data visualization platforms: Tableau is a data visualization tool that helps you create interactive and shareable dashboards and reports. Power BI by Microsoft is a business analytics tool for creating interactive visualizations and reports.

5. Collect data

There’s an infinite amount of data you could be collecting using these tools, so you’ll need to be intentional about going after the data that aligns with your research goals. Implement your chosen research methods, whether it’s distributing surveys, conducting interviews or pulling from secondary research platforms. Pay close attention to data quality and accuracy, and stick to a standardized process to streamline data capture and reduce errors. 

6. Analyze data

Once data is collected, you’ll need to analyze it systematically. Use statistical software or analysis tools to identify patterns, trends and correlations. For qualitative data, employ thematic analysis to extract common themes and insights. Visualize your findings with charts, graphs and tables to make complex data more understandable.

If you’re not proficient in data analysis, consider outsourcing or collaborating with a data analyst who can assist in processing and interpreting your data accurately.

7. Interpret your findings

Interpreting your market research findings involves understanding what the data means in the context of your objectives. Are there significant trends that uncover the answers to your initial research questions? Consider the implications of your findings on your business strategy. It’s essential to move beyond raw data and extract actionable insights that inform decision-making.

Hold a cross-functional meeting or workshop with relevant team members to collectively interpret the findings. Different perspectives can lead to more comprehensive insights and innovative solutions.

8. Identify opportunities and challenges

Use your research findings to identify potential growth opportunities and challenges within your market. What segments of your audience are underserved or overlooked? Are there emerging trends you can capitalize on? Conversely, what obstacles or competitors could hinder your progress?

Lay out this information in a clear and organized way by conducting a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. Jot down notes for each of these areas to provide a structured overview of gaps and hurdles in the market.

9. Make informed business decisions

Market research is only valuable if it leads to informed decisions for your company. Based on your insights, devise actionable strategies and initiatives that align with your research objectives. Whether it’s refining your product, targeting new customer segments or adjusting pricing, ensure your decisions are rooted in the data.

At this point, it’s also crucial to keep your team aligned and accountable. Create an action plan that outlines specific steps, responsibilities and timelines for implementing the recommendations derived from your research. 

10. Monitor and adapt

Market research isn’t a one-time activity; it’s an ongoing process. Continuously monitor market conditions, customer behaviors and industry trends. Set up mechanisms to collect real-time data and feedback. As you gather new information, be prepared to adapt your strategies and tactics accordingly. Regularly revisiting your research ensures your business remains agile and reflects changing market dynamics and consumer preferences.

Online market research sources

As you go through the steps above, you’ll want to turn to trusted, reputable sources to gather your data. Here’s a list to get you started:

• Crunchbase: As mentioned above, Crunchbase is an online platform with an extensive dataset, allowing you to access in-depth insights on market trends, consumer behavior and competitive analysis. You can also customize your search options to tailor your research to specific industries, geographic regions or customer personas.

• Academic databases: Academic databases, such as ProQuest and JSTOR , are treasure troves of scholarly research papers, studies and academic journals. They offer in-depth analyses of various subjects, including market trends, consumer preferences and industry-specific insights. Researchers can access a wealth of peer-reviewed publications to gain a deeper understanding of their research topics.
• Government and NGO databases: Government agencies, nongovernmental organizations and other institutions frequently maintain databases containing valuable economic, demographic and industry-related data. These sources offer credible statistics and reports on a wide range of topics, making them essential for market researchers. Examples include the U.S. Census Bureau , the Bureau of Labor Statistics and the Pew Research Center .
• Industry reports: Industry reports and market studies are comprehensive documents prepared by research firms, industry associations and consulting companies. They provide in-depth insights into specific markets, including market size, trends, competitive analysis and consumer behavior. You can find this information by looking at relevant industry association databases; examples include the American Marketing Association and the National Retail Federation .
• Social media and online communities: Social media platforms like LinkedIn or Twitter (X) , forums such as Reddit and Quora , and review platforms such as G2 can provide real-time insights into consumer sentiment, opinions and trends. 

Market research examples

At this point, you have market research tools and data sources — but how do you act on the data you gather? Let’s go over some real-world examples that illustrate the practical application of market research across various industries. These examples showcase how market research can lead to smart decision-making and successful business decisions.

Example 1: Apple’s iPhone launch

Apple ’s iconic iPhone launch in 2007 serves as a prime example of market research driving product innovation in tech. Before the iPhone’s release, Apple conducted extensive market research to understand consumer preferences, pain points and unmet needs in the mobile phone industry. This research led to the development of a touchscreen smartphone with a user-friendly interface, addressing consumer demands for a more intuitive and versatile device. The result was a revolutionary product that disrupted the market and redefined the smartphone industry.

Example 2: McDonald’s global expansion

McDonald’s successful global expansion strategy demonstrates the importance of market research when expanding into new territories. Before entering a new market, McDonald’s conducts thorough research to understand local tastes, preferences and cultural nuances. This research informs menu customization, marketing strategies and store design. For instance, in India, McDonald’s offers a menu tailored to local preferences, including vegetarian options. This market-specific approach has enabled McDonald’s to adapt and thrive in diverse global markets.

Example 3: Organic and sustainable farming

The shift toward organic and sustainable farming practices in the food industry is driven by market research that indicates increased consumer demand for healthier and environmentally friendly food options. As a result, food producers and retailers invest in sustainable sourcing and organic product lines — such as with these sustainable seafood startups — to align with this shift in consumer values. 

The bottom line? Market research has multiple use cases and is a critical practice for any industry. Whether it’s launching groundbreaking products, entering new markets or responding to changing consumer preferences, you can use market research to shape successful strategies and outcomes.

Market research templates

You finally have a strong understanding of how to do market research and apply it in the real world. Before we wrap up, here are some market research templates that you can use as a starting point for your projects:

• Smartsheet competitive analysis templates : These spreadsheets can serve as a framework for gathering information about the competitive landscape and obtaining valuable lessons to apply to your business strategy.
• SurveyMonkey product survey template : Customize the questions on this survey based on what you want to learn from your target customers.
• HubSpot templates : HubSpot offers a wide range of free templates you can use for market research, business planning and more.
• SCORE templates : SCORE is a nonprofit organization that provides templates for business plans, market analysis and financial projections.
• SBA.gov : The U.S. Small Business Administration offers templates for every aspect of your business, including market research, and is particularly valuable for new startups. 

Strengthen your business with market research

When conducted effectively, market research is like a guiding star. Equipped with the right tools and techniques, you can uncover valuable insights, stay competitive, foster innovation and navigate the complexities of your industry.

Throughout this guide, we’ve discussed the definition of market research, different research methods, and how to conduct it effectively. We’ve also explored various types of market research and shared practical insights and templates for getting started. 

Now, it’s time to start the research process. Trust in data, listen to the market and make informed decisions that guide your company toward lasting success.

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How to Conduct Market Research: A Step-By-Step Guide

Figuring out how to do market research for the first time can be intimidating and confusing. There are so many categories and different methods to choose from. It often seems like an endless list of organizational tasks and preparations.

However cumbersome as it might seem, research has an irreplaceable value for every company, be it a startup or a big corporation. It’s an instrument that leaders must use to keep themselves informed and up-to-date with market changes and make smart choices.

By observing your customers, you gain valuable insights into their personalities, motivations, challenges, and consumer behavior.

Furthermore, the data you gather gives you a glimpse of the processes that control the marketplace. You can gain a strategic edge over seemingly random or meaningless situations by learning more about them.

To sum up, doing your research helps you make better data-based business choices. This leads to better products, satisfied customers, and crushed competition. Sounds good, right?

If you follow through with your research with precision and discipline, you will soon be able to scale your company’s success rate significantly.

Before you read this guide and start your efforts, we advise you to brush up on the basics first and go through our other articles on market research:

• Market Research 101: From Beginner to Advanced
• Conducting Market Research: 6 Methods to Explore
• 15 Essential Market Research Tips for Businesses

Digging deeper into the process will give you the necessary background and confidence to go forth without any concerns.

So, without further ado, let’s roll our sleeves and get started on how to conduct market research. Read on and take notes!

1. Define the Research Goal

The first step of the process is defining your goal. It is important to start with a clear idea of why you are doing the research and what you want to accomplish. If your motivation is vague, you risk straying from your objectives and becoming distracted by irrelevant information.

During your study, you may find other important topics that are not closely related to the problem you are addressing. You should record them and save them for later research in different projects.

Mixing questions regarding too many problems in one survey can confuse the respondents and affect the accuracy of their answers. It can also make the research results too inconsistent. And it’s hard to conclude a bunch of random facts.

By stating the purpose and the problems of your research, you can establish a clear goal guiding everyone throughout the process.

This way, you’ll concentrate your efforts, and, in the end, you’ll be able to make informed decisions based on data.

For example, if you are choosing the pricing model for a new SaaS product, you should perform market research to make sure you’ll pick out the best one for your business. In this case, it should be something like “ Find out the best pricing strategy for the product ”. Some of the objectives can be:

• Identify the target audience.
• Find out what products they are currently using.
• Learn how much they are paying for them.
• Understand how much they are willing to pay.
• Research how they are using similar products.
• Discover what features they’d pay more for.
• Compare your product to the competition, etc.

Ultimately, your goal should be what you want to see accomplished in the future. That’s why it’s best to focus on your plans and targets, rather than on your current problems. Otherwise, you risk being stuck with unsolvable issues rather than with creative solutions.

2. Create Client Personas

When doing market research, you need a group of people who’ll answer your questions and whose opinions are important to your business. To identify these people, you should first create profiles that fit your target audience.

Client personas, or buyer personas , are collective profiles representing your ideal customers’ common qualities. They can be based on your top buyers in an attempt to attract more people like them to your business, or if you are just starting, they can be the product of separate market research.

Every business should have market personas. If you have already created yours – way to go, you are one step ahead! If you have not yet done it, now is a good time.

When building the buyer persona’s profile, you should include the following basic information, and add other specific factors, if there are any:

• Demographic – Age, gender, location, etc.
• Personal Information – Family status, income, interests, etc.
• Work-related details – Company, position, decision-making level, etc.
• Pain Points – Work and personal life struggles, barriers to achieving goals, etc.

For further reference on how to build buyer persona profiles, you can read DevriX’s article:

An Advanced Guide to Creating and Using Buyer Personas to Convert Leads

3. Identify the Sample

A market research sample is a representative group of people who match your client persona profiles. Depending on the scope of the study, you might include in it people who fit one or multiple personas.

Ideally, if you want the results to be representative, you should focus on a single profile. However, if you feel that you will get more information from different types of customers, you can define separate samples for every participating persona and compare the results at the end.

Defining and identifying a representative sample is the foundation of accumulating accurate results. If your participants don’t match the profile you need, their answers will not be relevant to your goals.

Participants for samples can be identified in:

• Your customer database . Clients should be divided into groups matching your buyer persona profiles. If you haven’t already implemented the segmentation , doing it will help you sift through who to invite to participate in the research.
• Competitors’ clients. People who use products similar to yours and fit the profile, but are not currently your customers, are a great addition to your research. By learning about their opinions and preferences, you can attract them as clients in the future.
• Your lead database . Every lead you have in your email list or CRM tool can be a potential candidate for the survey sample. As with existing customers, leads should be segmented not only for research but also for better marketing.
• Social media profiles . Your network of followers on different social media platforms can be a valuable resource in every survey. By announcing the desired profiles participants should fit and encouraging people to share with acquaintances, you can reach many more potential participants.

Your sample must be large enough and also representative of the population you are targeting. Choosing an audience too small or an ill-targeted group of people can make the results of the research biased.

Although there is not a universal minimal number of people to include in your study, it is generally accepted amongst scientists that less than 100 people is insufficient to make up a statistically relevant conclusion. Therefore, to ensure you’ll reach this number, you’ll have to distribute your questions to at least 150 people.

However, if you want to research only your existing customers and they are less than 100 in total, you can still carry out your study but you’ll have to accept a larger error margin .

4. Perform Your Chosen Research Methods

Once your sample is clear, you can move forward to conducting market research. Depending on your goals, you can explore different methods, but we will be using a strategy combining a few of them for this article. This is usually the safest way to guarantee that your results will be comprehensible and on point.

Prep Your Questions

The goals and objectives you set in the initial stages of your research should be organized and formulated into questions you can ask your participants.

Although the phrasing and scope of these will probably change and be refined throughout the different stages of the research, you should consider testing them at the beginning on a small sample. This will allow you to eliminate rookie mistakes and save you some trouble further on in the research.

Do Secondary Research

Before you start studying your audience, you should consider doing secondary research to build a general idea of the market.

You can find paid and free data available in government databases, private research companies, educational institutions, and public libraries.

There is a chance that the information you go through has nothing to do with the goals of your particular research. But it can still help you identify market patterns at scale and configure your following moves.

Try Various Exploratory Methods

The next step is to dive into your specific target audience and see how things are. This can be done via different exploratory research methods.

1. Observation. At this stage, consider starting with observation. This will give you an idea of how your customers act in real-life situations in their natural environment.

2. Focus Group Meetings. You can continue by consolidating your initial impressions in focus group meetings. The moderator can ask the participants about the subjects that got their attention and the discussion that follows can give you additional insights.

3. Personal Interviews. Interviewing individual representatives of your sample will allow you to ask even more follow-up questions and have a chance to learn about your customers’ preferences, goals, and pain points.

Distribute Customer Surveys

You can leverage all the information you’ve gathered in the previous steps to design customer surveys . They will help you acquire the answers to your questions at scale and prove or disprove the hypothesis built in the exploratory stage.

The questions in the surveys should be as simple and easy to understand as possible. Avoid answers that lead the customer in the direction you’d like. This might influence their responses and compromise the results.

5. Analyze the Data and Organize It Into a Report

The data you obtain should be analyzed and organized at the end of every stage of your market research. These preliminary reports will serve you in the process of the study and will make building the final report easier.

Results from the research will be both qualitative and quantitative and should be properly visualized to make sense to everyone to whom they would be presented.

Cold statistics can be overwhelming, but presenting the data in an engaging format can make it more appealing and clear.

Some forms of reporting are customer journey maps and affinity diagrams . Even users who are not technically advanced can take advantage of modern data visualization tools and make research data interesting to the audience of their presentation.

Step-by-Step Market Research

Conducting market research is complicated. It takes a lot of preparation and can seem intimidating at first. But once you become familiar with the basics, you will be able to do it yourself and reap its success.

By using this guide, you can study different aspects of your target market, and get to know your audience on a different level. Leveraging the data and insights you gather will give you a strategic advantage and empower you to make more informed data-based decisions for your business.

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How to do Market Research: a Step-by-Step Guide

14 min read

Looking for the best way to do market research? From framing your initial question to extracting valuable customer insights, we’ll walk you through the lean market research process step-by-step. You will learn effective techniques for collecting and analyzing data , with practical tips on applying your findings to benefit your SaaS. Get ready to empower your decisions with real-world market intelligence.

• Market research is vital for making informed business decisions, enabling companies to understand the market, target audience, and competitors, reducing risks, and optimizing marketing communications and product strategies .
• Effective market research requires clear and measurable objectives, guiding decision-making and ensuring relevance to the project’s needs, and should be accompanied by appropriate methods , including both primary and secondary research .
• Applying insights from market research to product development and marketing strategies can significantly enhance business growth. This allows businesses to tailor their offerings and engage more effectively with their target market.

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What is market research

Essentially, market research is the process of understanding one’s target audience’s needs and wants to validate a new product, feature, or service idea. It involves probing and extracting answers based on empirical evidence instead of relying on hunches or speculative judgment.

Why should you do market research?

Understanding your consumers’ behavior and needs well through methodical market research is vital for informed decision-making when it comes to your product roadmap. These choices can make or break your SaaS company. Without thorough market research, you’re navigating blindly, basing crucial judgments on antiquated notions of customer habits, imprecise economic gauges, or untested assumptions rather than solid competitive analysis.

The outcome? Sharper marketing messages, savvy product development strategies, and an intimate grasp of both prospective buyers and existing customers’ preferences and needs.

Identifying your market research goals

Before you do anything – you need to determine specific and actionable goals of your market research project. Setting SMART (specific, measurable, achievable, relevant and time-bound) goals will help you stay on track, come up with better market research questions and achieve more reliable results faster.

For effective market research outcomes, your goals must be:

• Quantifiable .
• Attainable.
• Directly aligned with project requirements.

Having established unambiguous goals prior to delving into data analysis sets up a solid foundation ensuring pivotal questions, hypotheses, and indicators are systematically tackled during effective market research.

Market research methods

Now that you understand the role of well-defined research objectives, let’s examine the different types of market research and research techniques for realizing these goals. These methods are essentially your toolkit for extracting valuable insights and they fall into two broad categories: primary research and secondary research . Choosing between them depends on many factors such as your budget, time availability, and whether you’re looking for more exploratory research data or concrete answers.

Engaging in primary research is comparable to unearthing precious metals—it requires gathering new information straight from sources through several approaches including:

• Focus groups.

This approach gives you first-hand insight into your target audience.

Conversely, secondary research uses already established datasets of primary data – which can add depth and reinforcement to your firsthand findings. For a 360 view of your market trends, combine both techniques – exploratory primary research and secondary channels of inquiry.

Let’s look a bit deeper into them now.

What is primary market research?

Market research uses primary market research as an essential tool. This involves collecting new data directly from your target audience using various methods, such as surveys , focus groups, and interviews.

Each method has its benefits. For example, observational studies allow you to see how consumers interact with your product.

There are many ways to conduct primary research.

Focus Groups : Hold discussions with small groups of 5 to 10 people from your target audience. These discussions can provide valuable feedback on products, perceptions of your company’s brand name, or opinions on competitors.

Interviews : Have one-on-one conversations to gather detailed information from individuals in your target audience.

Surveys : These are a common tool in primary market research and can be used instead of focus groups to understand consumer attitudes. Surveys use structured questions and can reach a broad audience efficiently.

Navigating secondary market research

While market research using primary methods is like discovering precious metals, secondary market research technique is like using a treasure map. This approach uses data collected by others from various sources, providing a broad industry view. These sources include market analyses from agencies like Statista, historical data such as census records, and academic studies.

Secondary research provides the basic knowledge necessary for conducting primary market research goals but may lack detail on specific business questions and could also be accessible to competitors.

To make the most of secondary market research, it’s important to analyze summarized data to identify trends, rely on reputable sources for accurate data, and remain unbiased in data collection methods.

The effectiveness of secondary research depends significantly on how well the data is interpreted, ensuring that this information complements the insights from primary research.

The role of qualitative and quantitative data in market research

In market research, there are two main types of data: qualitative and quantitative. Qualitative data explores the reasons behind consumer actions, collecting non-numeric information to understand consumer behaviors and motivations. For more on gathering and analyzing qualitative data, see How to Analyse Qualitative Data . On the other hand, quantitative data uses numeric data to measure consumer preferences, behaviors, and market sizes. To learn more about handling this type of data, check out User Analytics .

A thorough market analysis usually combines both qualitative and quantitative data. This approach provides a full view of the market by merging detailed qualitative insights with concrete quantitative statistics. For more on combining these approaches, refer to Generative vs. Evaluative Research .

Gathering qualitative insights

Qualitative research involves direct engagement with customers, like having detailed discussions. It includes observational studies that capture genuine consumer reactions. This type of research provides deep insights into consumer perceptions, brand comparisons, consumer behavior, and feedback on specific product features.

Studies on customer satisfaction and loyalty reveal effective strategies for keeping customers and what keeps them loyal, such as loyalty programs and quality customer service. The strength of qualitative research lies in its ability to dig deeper than just numbers, reaching insights that quantitative data might miss. By using qualitative data to customize experiences, businesses can increase customer satisfaction, interaction , and loyalty, leading to greater business growth.

Analyzing quantitative data

Quantitative research provides precision and the ability to measure findings using structured data collection methods like polls and surveys. Product analytics tools such as Userpilot , Amplitude , Heap , and Mixpanel are highly effective for collecting and organizing quantifiable data. This type of data is crucial for identifying trends and insights, which can help businesses track important performance indicators such as conversion rates or customer lifetime value , supporting their growth strategies.

Quantitative research data is divided into two types: discrete data, which includes countable numbers, and continuous data, which consists of numbers that can have fractions or decimals. These are vital for revealing important demographic information.

Segmenting your target market

Market research plays a key role in segmenting your target audience into manageable segments.

These market segments are typically grouped by similar needs or attributes, and display similar responses in marketing research surveys and initiatives. The full market segmentation process is vital for comprehensively grasping and satisfying the requirements of your targeted consumer base.

Accumulating demographic information forms the basis for executing effective market segmentation strategies. Businesses prioritize obtaining user data such as:

• Job functions.
• Organizational scale.
• Customer demographics profiles.
• Lifestyle choices.
• Values systems.
• Product usage patterns.

This information can be collected in the initial sign-up flow (through a signup flow survey; see the Asana example below) or by conducting comprehensive market research surveys .

At its core, successful market segmentation enables businesses to communicate effectively in their target customers’ dialects while catering explicitly to their distinct demands.

Userpilot allows you to easily segment your users not only by demographic information, company size, plan, or role – but also by their in-app engagement ( behavioral segmentation ):

In summary, the techniques used to create detailed analyses, like conducting specialized surveys and carefully collecting relevant participant information, are crucial for identifying groups within a larger target population. These groups are defined by usage patterns and broad demographic and economic indicators, enabling companies to not only reach but also deeply connect with each niche market they aim to capture.

Creating buyer personas based on your market research

Creating buyer personas is a strategic process that helps businesses better understand and cater to their target customers. Here’s how you can systematically approach creating effective buyer personas:

• Gather Initial Data : Start by collecting basic demographic information such as age, gender, location, and education level. This can come from existing customer databases, market research, or industry reports.

• Segment the Audience : Based on the collected data, segment your audience into distinct groups. Each segment should represent a type of customer with similar characteristics and behaviors. This segmentation helps in personalizing marketing and sales strategies effectively.
• Build Detailed Personas : For each segment, create a detailed persona that includes not only demographic and behavioral traits but also psychographics like interests, values, and lifestyle. Each persona should tell the story of an ideal customer, making them relatable for your marketing team.
• Refine Over Time : Buyer personas are not static. As you gather more data and the market evolves, revisit and refine your personas to keep them relevant and accurate.
• Utilize Tools Like Userpilot : Tools such as Userpilot can enhance this process by providing analytics that reveal how users interact with your product. This can confirm hypotheses or uncover new insights about user preferences and behaviors, which can be integrated into existing personas to make them even more accurate.

By carefully crafting and continually updating buyer personas, businesses can achieve a deeper understanding of their customers. This enables them to tailor their offerings and communications effectively, thereby enhancing customer engagement and satisfaction.

Recruiting participants for primary research

Choosing the right participants for primary research is a crucial step in market research. It’s important to find individuals who can provide relevant and meaningful consumer feedback, on your product or service, as this feedback is key to developing accurate user personas.

Userpilot can be instrumental in this process. It collects data on how users interact with and use your products, helping you identify who might be the best candidates for more detailed studies, such as interviews.

To efficiently recruit participants for interviews, Userpilot’s in-app features, such as in-app modals with embedded surveys can be extremely useful. You can use these tools to engage directly with users who meet your specific criteria, right within your app.

This method not only simplifies the recruitment process but also ensures that you’re interacting with the most relevant users. By leveraging these features, you can gather deep insights that significantly enhance the development of your user personas, ensuring your research is both timely and informed.

Competitive analysis for strategic advantage

Competitive analysis helps businesses understand their rivals’ strategies. It involves identifying which industries or markets to target and listing key competitors to gain a clear view of the competitive environment. This includes evaluating competitors’ market share, strengths, weaknesses, and potential entry barriers, often using tools like SWOT analysis.

By understanding competitors’ operations and past marketing efforts, businesses can craft new strategies, pinpoint opportunities, and learn from competitors’ mistakes. Employing market research, brand perception surveys, and market statistics, alongside analytical frameworks like Porter’s Five Forces Model, helps businesses uncover new opportunities and maintain a competitive advantage.

Ultimately, competitive analysis uses the understanding of competition to fuel business growth.

Conducting effective market research surveys

Primary market research often uses surveys as a cost-effective way to gather data. These surveys reach wide audiences and provide quick feedback. It’s crucial to carefully plan the creation and distribution of these surveys to ensure they are effective. Given the high amount of web traffic from mobile devices, it’s particularly important to make surveys mobile-friendly.

To get the most comprehensive data, include both quantitative (closed-ended) and qualitative (open-ended) questions in your survey . Offering incentives like financial compensation or vouchers can encourage participation, but it’s important to manage these carefully to avoid biasing the responses.

Well-designed surveys are like direct interviews with your target audience and are key to obtaining valuable insights about their views and experiences.

Userpilot offers over 50 in-app survey templates along with a bespoke builder, which are important tools for collecting the right responses. These features allow you to tailor surveys precisely to your needs, ensuring you gather accurate and relevant data directly from your users. By leveraging these templates and customizing them with the bespoke builder, you can effectively engage your audience and enhance the quality of insights you receive. This setup is crucial for conducting efficient and effective market research.

Analyzing and interpreting market research data

Once you have collected data through surveys, market research data analysis is the next critical step. It involves identifying patterns, establishing connections, and extracting insights that inform business decisions.

Userpilot’s analytics suite offers deep and easily accessible insights into your market research data:

This process starts with preparing the data by cleaning and organizing it to ensure accuracy and ease of analysis. Depending on the study’s goals, various analytical methods can be used, from simple descriptive statistics to complex multivariate analyses, all chosen to provide meaningful insights.

The core of this analysis aims to uncover market trends and understand industry specifics, which can highlight key factors such as impactful customer experiences, profitable products or services, and effective marketing strategies. Communicating these findings effectively involves presenting them in clear reports and using visual aids while making practical recommendations and addressing any limitations in the research scope or methods. Ultimately, data analysis transforms raw data into compelling narratives that offer actionable business intelligence.

Applying market research to product or service development

Market research is much more than just collecting data and uncovering insights; it’s a vital tool for driving business growth and guiding product development at every stage. Here’s how market research supports business throughout the product lifecycle:

• Concept Creation : Helps identify market needs and opportunities to inform the initial product idea.
• Building a Business Case : Provides evidence and data to justify investment in the new product.
• Product Development : Offers insights into customer preferences and feedback for refining product features.
• Market Introduction : Aids in strategizing the launch, targeting the right audience, and setting the right price.
• Lifecycle Management : Continuously gathers data on customer usage and satisfaction to enhance the product over time.

Consider a B2B SaaS company that develops project management software. By engaging in targeted market research activities like surveys and doing focus group call groups among its business clients, the company can:

• Understand Business Needs : Gain insights into the specific project management challenges and needs of different industries.
• Refine Product Features : Discover which software features are most valued by businesses, such as integration capabilities, user-friendliness, or specific tools for collaboration.
• Tailor Marketing Strategies : Identify the most effective communication channels and messaging that resonate with business clients, such as emphasizing efficiency gains or return on investment.

Market research guides businesses from the initial idea through to launch and beyond, acting as a strategic tool that ensures all actions are aligned with market demands and customer needs , ultimately aiming for successful business outcomes.

Utilizing tools for efficient market research

Using tools like Userpilot, SurveyMonkey, Google Forms, and Typeform, market researchers can reach a wide audience and get fast responses. These platforms help to design, distribute, and analyze surveys efficiently.

Userpilot stands out by allowing businesses to create targeted in-app experiences that engage users directly where they are most active—within the app itself. This direct engagement method improves the quality of the feedback collected as it relates to specific features or user experiences.

Userpilot also offers features such as demographic filtering and behavioral-based segmentation, which speeds up the process of finding and recruiting the right participants for market research.

These tools are essential for performing detailed and effective market research. They break down geographic and cultural barriers, offer access to diverse user groups, and enable businesses to conduct deep, actionable analyses across different market segments.

Translating research findings into business growth

Market research does more than just gather and analyze data; it aims to transform these insights into tangible business improvements. This process is crucial in guiding product development and helping increase a company’s market share by informing targeted strategies. For instance, a B2B SaaS company could use market research to:

• Tailor marketing strategies specifically for key user personas.
• Identify the most valued features for your users.
• Develop pricing strategies that appeal to companies of different sizes.
• Gain insight into the specific needs and expectations of their customers.

By implementing effective market research techniques, companies can customize their products or services to better serve their target audience’s needs, fundamental for stimulating company growth . Conducting personalized market research adds value, while collaborating with specialized firms may yield additional profound insights.

Market research is not just about collecting data; it’s about deeply understanding your customers, spotting opportunities, and making informed decisions that drive your business forward. It provides essential insights into the market and business environment, influencing how potential clients perceive your company.

By conducting competitor analysis and market research, organizations can:

• Connect with their target audience.
• Understand their competitive position.
• Plan strategically for future initiatives.
• Gain insights into customer perceptions of their brand, uncovering new perspectives or opportunities for improvement.

Since competitors also use market research to their advantage, engaging in these analytical processes is crucial for a comprehensive marketing strategy, aimed at business growth.

Start your own market research and journey today to pave the way to success.

Frequently asked questions

What is market research and why is it important.

Understanding their target market through collected information and insights, businesses can make informed decisions, diminish risks, and enhance marketing strategies with the aid of market research. This ensures that choices are based on reliable data, which is crucial for business success.

What is the difference between primary and secondary research?

To summarize, primary research entails the gathering of original data directly from the source, whereas secondary research utilizes previously compiled data sources to add perspective and reinforce conclusions derived from primary research.

How does market research guide product development?

By offering critical data on consumer habits and preferences, market research steers the enhancement of product features, thereby influencing decisions across all stages of a product’s life cycle and aiding in the evolution of product development.

What tools can be used for efficient market research?

Platforms such as Userpilot, SurveyMonkey, Google Forms, and Typeform can be leveraged alongside technologies that are driven by data to simplify the process of crafting, disseminating, and examining online surveys which play a crucial role in conducting market research effectively.

How can market research translate into business growth?

By informing product development, marketing strategies, and identifying opportunities for growth through enlightened decision-making, market research results can propel business expansion.

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Market Research: A How-To Guide and Template

Discover the different types of market research, how to conduct your own market research, and use a free template to help you along the way.

MARKET RESEARCH KIT

5 Research and Planning Templates + a Free Guide on How to Use Them in Your Market Research

Updated: 02/21/24

Published: 02/21/24

Today's consumers have a lot of power. As a business, you must have a deep understanding of who your buyers are and what influences their purchase decisions.

Enter: Market Research.

Whether you're new to market research or not, I created this guide to help you conduct a thorough study of your market, target audience, competition, and more. Let’s dive in.

Table of Contents

What is market research?

Primary vs. secondary research, types of market research, how to do market research, market research report template, market research examples.

Market research is the process of gathering information about your target market and customers to verify the success of a new product, help your team iterate on an existing product, or understand brand perception to ensure your team is effectively communicating your company's value effectively.

Market research can answer various questions about the state of an industry. But if you ask me, it's hardly a crystal ball that marketers can rely on for insights on their customers.

Market researchers investigate several areas of the market, and it can take weeks or even months to paint an accurate picture of the business landscape.

However, researching just one of those areas can make you more intuitive to who your buyers are and how to deliver value that no other business is offering them right now.

How? Consider these two things:

• Your competitors also have experienced individuals in the industry and a customer base. It‘s very possible that your immediate resources are, in many ways, equal to those of your competition’s immediate resources. Seeking a larger sample size for answers can provide a better edge.
• Your customers don't represent the attitudes of an entire market. They represent the attitudes of the part of the market that is already drawn to your brand.

The market research services market is growing rapidly, which signifies a strong interest in market research as we enter 2024. The market is expected to grow from roughly $75 billion in 2021 to $90.79 billion in 2025 .

Free Market Research Kit

• SWOT Analysis Template
• Survey Template
• Focus Group Template

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

Why do market research?

Market research allows you to meet your buyer where they are.

As our world becomes louder and demands more of our attention, this proves invaluable.

By understanding your buyer's problems, pain points, and desired solutions, you can aptly craft your product or service to naturally appeal to them.

Market research also provides insight into the following:

• Where your target audience and current customers conduct their product or service research
• Which of your competitors your target audience looks to for information, options, or purchases
• What's trending in your industry and in the eyes of your buyer
• Who makes up your market and what their challenges are
• What influences purchases and conversions among your target audience
• Consumer attitudes about a particular topic, pain, product, or brand
• Whether there‘s demand for the business initiatives you’re investing in
• Unaddressed or underserved customer needs that can be flipped into selling opportunity
• Attitudes about pricing for a particular product or service

Ultimately, market research allows you to get information from a larger sample size of your target audience, eliminating bias and assumptions so that you can get to the heart of consumer attitudes.

As a result, you can make better business decisions.

To give you an idea of how extensive market research can get , consider that it can either be qualitative or quantitative in nature — depending on the studies you conduct and what you're trying to learn about your industry.

Qualitative research is concerned with public opinion, and explores how the market feels about the products currently available in that market.

Quantitative research is concerned with data, and looks for relevant trends in the information that's gathered from public records.

That said, there are two main types of market research that your business can conduct to collect actionable information on your products: primary research and secondary research.

Primary Research

Primary research is the pursuit of first-hand information about your market and the customers within your market.

It's useful when segmenting your market and establishing your buyer personas.

Primary market research tends to fall into one of two buckets:

• Exploratory Primary Research: This kind of primary market research normally takes place as a first step — before any specific research has been performed — and may involve open-ended interviews or surveys with small numbers of people.
• Specific Primary Research: This type of research often follows exploratory research. In specific research, you take a smaller or more precise segment of your audience and ask questions aimed at solving a suspected problem.

Secondary Research

Secondary research is all the data and public records you have at your disposal to draw conclusions from (e.g. trend reports, market statistics, industry content, and sales data you already have on your business).

Secondary research is particularly useful for analyzing your competitors . The main buckets your secondary market research will fall into include:

• Public Sources: These sources are your first and most-accessible layer of material when conducting secondary market research. They're often free to find and review — like government statistics (e.g., from the U.S. Census Bureau ).
• Commercial Sources: These sources often come in the form of pay-to-access market reports, consisting of industry insight compiled by a research agency like Pew , Gartner , or Forrester .
• Internal Sources: This is the market data your organization already has like average revenue per sale, customer retention rates, and other historical data that can help you draw conclusions on buyer needs.
• Focus Groups
• Product/ Service Use Research
• Observation-Based Research
• Buyer Persona Research
• Market Segmentation Research
• Pricing Research
• Competitive Analysis Research
• Customer Satisfaction and Loyalty Research
• Brand Awareness Research
• Campaign Research

1. Interviews

Interviews allow for face-to-face discussions so you can allow for a natural flow of conversation. Your interviewees can answer questions about themselves to help you design your buyer personas and shape your entire marketing strategy.

2. Focus Groups

Focus groups provide you with a handful of carefully-selected people that can test out your product and provide feedback. This type of market research can give you ideas for product differentiation.

3. Product/Service Use Research

Product or service use research offers insight into how and why your audience uses your product or service. This type of market research also gives you an idea of the product or service's usability for your target audience.

4. Observation-Based Research

Observation-based research allows you to sit back and watch the ways in which your target audience members go about using your product or service, what works well in terms of UX , and which aspects of it could be improved.

5. Buyer Persona Research

Buyer persona research gives you a realistic look at who makes up your target audience, what their challenges are, why they want your product or service, and what they need from your business or brand.

6. Market Segmentation Research

Market segmentation research allows you to categorize your target audience into different groups (or segments) based on specific and defining characteristics. This way, you can determine effective ways to meet their needs.

7. Pricing Research

Pricing research helps you define your pricing strategy . It gives you an idea of what similar products or services in your market sell for and what your target audience is willing to pay.

8. Competitive Analysis

Competitive analyses give you a deep understanding of the competition in your market and industry. You can learn about what's doing well in your industry and how you can separate yourself from the competition .

9. Customer Satisfaction and Loyalty Research

Customer satisfaction and loyalty research gives you a look into how you can get current customers to return for more business and what will motivate them to do so (e.g., loyalty programs , rewards, remarkable customer service).

10. Brand Awareness Research

Brand awareness research tells you what your target audience knows about and recognizes from your brand. It tells you about the associations people make when they think about your business.

11. Campaign Research

Campaign research entails looking into your past campaigns and analyzing their success among your target audience and current customers. The goal is to use these learnings to inform future campaigns.

• Define your buyer persona.
• Identify a persona group to engage.
• Prepare research questions for your market research participants.
• List your primary competitors.
• Summarize your findings.

1. Define your buyer persona.

You have to understand who your customers are and how customers in your industry make buying decisions.

This is where your buyer personas come in handy. Buyer personas — sometimes referred to as marketing personas — are fictional, generalized representations of your ideal customers.

Use a free tool to create a buyer persona that your entire company can use to market, sell, and serve better.

Don't forget to share this post!

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How to do market research: The complete guide for your brand

Written by by Jacqueline Zote

Published on  April 13, 2023

Reading time  10 minutes

Blindly putting out content or products and hoping for the best is a thing of the past. Not only is it a waste of time and energy, but you’re wasting valuable marketing dollars in the process. Now you have a wealth of tools and data at your disposal, allowing you to develop data-driven marketing strategies . That’s where market research comes in, allowing you to uncover valuable insights to inform your business decisions.

Conducting market research not only helps you better understand how to sell to customers but also stand out from your competition. In this guide, we break down everything you need to know about market research and how doing your homework can help you grow your business.

Table of contents:

What is market research?

Why is market research important, types of market research, where to conduct market research.

• Steps for conducting market research
• Tools to use for market research

Market research is the process of gathering information surrounding your business opportunities. It identifies key information to better understand your audience. This includes insights related to customer personas and even trends shaping your industry.

Taking time out of your schedule to conduct research is crucial for your brand health. Here are some of the key benefits of market research:

Understand your customers’ motivations and pain points

Most marketers are out of touch with what their customers want. Moreover, these marketers are missing key information on what products their audience wants to buy.

Simply put, you can’t run a business if you don’t know what motivates your customers.

And spoiler alert: Your customers’ wants and needs change. Your customers’ behaviors today might be night and day from what they were a few years ago.

Market research holds the key to understanding your customers better. It helps you uncover their key pain points and motivations and understand how they shape their interests and behavior.

Figure out how to position your brand

Positioning is becoming increasingly important as more and more brands enter the marketplace. Market research enables you to spot opportunities to define yourself against your competitors.

Maybe you’re able to emphasize a lower price point. Perhaps your product has a feature that’s one of a kind. Finding those opportunities goes hand in hand with researching your market.

Maintain a strong pulse on your industry at large

Today’s marketing world evolves at a rate that’s difficult to keep up with.

Fresh products. Up-and-coming brands. New marketing tools. Consumers get bombarded with sales messages from all angles. This can be confusing and overwhelming.

By monitoring market trends, you can figure out the best tactics for reaching your target audience.

Not everyone conducts market research for the same reason. While some may want to understand their audience better, others may want to see how their competitors are doing. As such, there are different types of market research you can conduct depending on your goal.

Interview-based market research allows for one-on-one interactions. This helps the conversation to flow naturally, making it easier to add context. Whether this takes place in person or virtually, it enables you to gather more in-depth qualitative data.

Buyer persona research

Buyer persona research lets you take a closer look at the people who make up your target audience. You can discover the needs, challenges and pain points of each buyer persona to understand what they need from your business. This will then allow you to craft products or campaigns to resonate better with each persona.

Pricing research

In this type of research, brands compare similar products or services with a particular focus on pricing. They look at how much those products or services typically sell for so they can get more competitive with their pricing strategy.

Competitive analysis research

Competitor analysis gives you a realistic understanding of where you stand in the market and how your competitors are doing. You can use this analysis to find out what’s working in your industry and which competitors to watch out for. It even gives you an idea of how well those competitors are meeting consumer needs.

Depending on the competitor analysis tool you use, you can get as granular as you need with your research. For instance, Sprout Social lets you analyze your competitors’ social strategies. You can see what types of content they’re posting and even benchmark your growth against theirs.

Brand awareness research

Conducting brand awareness research allows you to assess your brand’s standing in the market. It tells you how well-known your brand is among your target audience and what they associate with it. This can help you gauge people’s sentiments toward your brand and whether you need to rebrand or reposition.

If you don’t know where to start with your research, you’re in the right place.

There’s no shortage of market research methods out there. In this section, we’ve highlighted research channels for small and big businesses alike.

Considering that Google sees a staggering 8.5 billion searches each day, there’s perhaps no better place to start.

A quick Google search is a potential goldmine for all sorts of questions to kick off your market research. Who’s ranking for keywords related to your industry? Which products and pieces of content are the hottest right now? Who’s running ads related to your business?

For example, Google Product Listing Ads can help highlight all of the above for B2C brands.

The same applies to B2B brands looking to keep tabs on who’s running industry-related ads and ranking for keyword terms too.

There’s no denying that email represents both an aggressive and effective marketing channel for marketers today. Case in point, 44% of online shoppers consider email as the most influential channel in their buying decisions.

Looking through industry and competitor emails is a brilliant way to learn more about your market. For example, what types of offers and deals are your competitors running? How often are they sending emails?

Email is also invaluable for gathering information directly from your customers. This survey message from Asana is a great example of how to pick your customers’ brains to figure out how you can improve your quality of service.

Industry journals, reports and blogs

Don’t neglect the importance of big-picture market research when it comes to tactics and marketing channels to explore. Look to marketing resources such as reports and blogs as well as industry journals

Keeping your ear to the ground on new trends and technologies is a smart move for any business. Sites such as Statista, Marketing Charts, AdWeek and Emarketer are treasure troves of up-to-date data and news for marketers.

And of course, there’s the  Sprout Insights blog . And invaluable resources like The Sprout Social Index™  can keep you updated on the latest social trends.

Social media

If you want to learn more about your target market, look no further than social media. Social offers a place to discover what your customers want to see in future products or which brands are killin’ it. In fact, social media is become more important for businesses than ever with the level of data available.

It represents a massive repository of real-time data and insights that are instantly accessible. Brand monitoring and social listening are effective ways to conduct social media research . You can even be more direct with your approach. Ask questions directly or even poll your audience to understand their needs and preferences.

The 5 steps for how to do market research

Now that we’ve covered the why and where, it’s time to get into the practical aspects of market research. Here are five essential steps on how to do market research effectively.

Step 1: Identify your research topic

First off, what are you researching about? What do you want to find out? Narrow down on a specific research topic so you can start with a clear idea of what to look for.

For example, you may want to learn more about how well your product features are satisfying the needs of existing users. This might potentially lead to feature updates and improvements. Or it might even result in new feature introductions.

Similarly, your research topic may be related to your product or service launch or customer experience. Or you may want to conduct research for an upcoming marketing campaign.

Step 2: Choose a buyer persona to engage

If you’re planning to focus your research on a specific type of audience, decide which buyer persona you want to engage. This persona group will serve as a representative sample of your target audience.

Engaging a specific group of audience lets you streamline your research efforts. As such, it can be a much more effective and organized approach than researching thousands (if not millions) of individuals.

You may be directing your research toward existing users of your product. To get even more granular, you may want to focus on users who have been familiar with the product for at least a year, for example.

Step 3: Start collecting data

The next step is one of the most critical as it involves collecting the data you need for your research. Before you begin, make sure you’ve chosen the right research methods that will uncover the type of data you need. This largely depends on your research topic and goals.

Remember that you don’t necessarily have to stick to one research method. You may use a combination of qualitative and quantitative approaches. So for example, you could use interviews to supplement the data from your surveys. Or you may stick to insights from your social listening efforts.

To keep things consistent, let’s look at this in the context of the example from earlier. Perhaps you can send out a survey to your existing users asking them a bunch of questions. This might include questions like which features they use the most and how often they use them. You can get them to choose an answer from one to five and collect quantitative data.

Plus, for qualitative insights, you could even include a few open-ended questions with the option to write their answers. For instance, you might ask them if there’s any improvement they wish to see in your product.

Step 4: Analyze results

Once you have all the data you need, it’s time to analyze it keeping your research topic in mind. This involves trying to interpret the data to look for a wider meaning, particularly in relation to your research goal.

So let’s say a large percentage of responses were four or five in the satisfaction rating. This means your existing users are mostly satisfied with your current product features. On the other hand, if the responses were mostly ones and twos, you may look for opportunities to improve. The responses to your open-ended questions can give you further context as to why people are disappointed.

Step 5: Make decisions for your business

Now it’s time to take your findings and turn them into actionable insights for your business. In this final step, you need to decide how you want to move forward with your new market insight.

What did you find in your research that would require action? How can you put those findings to good use?

The market research tools you should be using

To wrap things up, let’s talk about the various tools available to conduct speedy, in-depth market research. These tools are essential for conducting market research faster and more efficiently.

Social listening and analytics

Social analytics tools like Sprout can help you keep track of engagement across social media. This goes beyond your own engagement data but also includes that of your competitors. Considering how quickly social media moves, using a third-party analytics tool is ideal. It allows you to make sense of your social data at a glance and ensure that you’re never missing out on important trends.

Email marketing research tools

Keeping track of brand emails is a good idea for any brand looking to stand out in its audience’s inbox.

Tools such as MailCharts ,  Really Good Emails  and  Milled  can show you how different brands run their email campaigns.

Meanwhile, tools like  Owletter  allow you to monitor metrics such as frequency and send-timing. These metrics can help you understand email marketing strategies among competing brands.

Content marketing research

If you’re looking to conduct research on content marketing, tools such as  BuzzSumo  can be of great help. This tool shows you the top-performing industry content based on keywords. Here you can see relevant industry sites and influencers as well as which brands in your industry are scoring the most buzz. It shows you exactly which pieces of content are ranking well in terms of engagements and shares and on which social networks.

SEO and keyword tracking

Monitoring industry keywords is a great way to uncover competitors. It can also help you discover opportunities to advertise your products via organic search. Tools such as  Ahrefs  provide a comprehensive keyword report to help you see how your search efforts stack up against the competition.

Competitor comparison template

For the sake of organizing your market research, consider creating a competitive matrix. The idea is to highlight how you stack up side-by-side against others in your market. Use a  social media competitive analysis template  to track your competitors’ social presence. That way, you can easily compare tactics, messaging and performance. Once you understand your strengths and weaknesses next to your competitors, you’ll find opportunities as well.

Customer persona creator

Finally, customer personas represent a place where all of your market research comes together. You’d need to create a profile of your ideal customer that you can easily refer to. Tools like  Xtensio  can help in outlining your customer motivations and demographics as you zero in on your target market.

Build a solid market research strategy

Having a deeper understanding of the market gives you leverage in a sea of competitors. Use the steps and market research tools we shared above to build an effective market research strategy.

But keep in mind that the accuracy of your research findings depends on the quality of data collected. Turn to Sprout’s social media analytics tools to uncover heaps of high-quality data across social networks.

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• Step by Step Guide to the Market Research Process

Summary: The market research process requires decisions related to budget, target sample, development of data collection tools, fielding, analysis, and reporting. Here is a check list to make the process easier.

5 minutes to read. By author Michaela Mora on March 15, 2022 Topics: Business Strategy , Market Research

The market research process requires making decisions at many steps that can be overwhelming for non-researchers put in charge of research projects.

Consider these practical tips to conduct the following 6 steps during the implementation of a market research project.

Step 1. Define the Problem and Translate It into Research Objectives

• This is the most important step. It sets the direction of the whole market research process. Ask clients how they will use the research results, and what business decisions they will make based on the data. They should be specific. Get a consensus among key stakeholders on the main research objectives. Get them involved from the start.
• Avoid objective creep. Don’t try to research everything under the sky in a project. Focus on what’s needed for decision-making. Trying to cram many things into a project because of budget constraints is often a waste of money as data quality suffers.
• Discuss limitations early in the process. Set clear expectations of what the research will cover and what data it will provide.
• Do secondary research , and check if previous research has been conducted on the same issue to avoid effort duplication and waste of money. Interview key stakeholders to put the research objectives into a greater context.
• Exploratory primary research may be needed with your target market (customers /users, non-customers) to better define the information needs.
• DO NOT select a data collection method before establishing clear objectives and identifying the target population. Think objectives firsts, methods second. Not the other way around.
• How much are the key stakeholders willing to invest in the requested research? Get a number! If there is no commitment to a budget, you will be wasting your time (RFP) and your research vendor’s time (proposal). There is always a trade-off between research quality, deadline, and cost. Make your internal clients aware of that. There is a limit to “ better, faster, and cheaper ” in market research. Push it too hard and you will get fast cheap, crappy research.

Step 2. Formulate the Approach

• Based on the research objective think, which research methodology would be the best fit. Start with the broader categories: Secondary? Primary? Qualitative? Quantitative?
• Based on the decisions that will be made, determine what type of data is needed and expected.
• Example: Need to know how to price a new product before it goes to market? Conjoint Analysis may be a good fit. Check: Conjoint Analysis And Realism In Price Research
• Example: Need to pick the product name that elicits the highest purchase intent from a list of 30? Consider MaxDiff. Check: Making the Case for MaxDiff
• Example: Need to find new growth opportunities? Segmentation research can help to find segments with the highest potential. Check: Segmentation is Key to Success
• The analysis techniques selected will also influence the decision on sample size.
• Ideally, if budget permits do qualitative research before or after quantitative research
• Consider qualitative research for exploration before quantitative and deep-diving after quantitative research.
• Consider quantitative research if a go/no go decision will be made. DO NOT make these types of decisions based only on qualitative research

Step 3. Define The Research Design

Define the target population for the research.

• Who do you want to gather data from? Customers? Non-Customers? Category users? Be realistic. Given your budget, you may or may not be able to reach your target population.
• Sample definition helps decide on what data collection method we use. More than one method may be needed. To read more about mixed-mode  data collection check: Mixed Data Collection Modes – Round-Up
• Create clear screening criteria. Discuss them with key stakeholders. Make sure they align with the research objectives.
• Discuss the caveats and limitations of the sample definition and how they will affect the results and decision-making.
• Determine the sample size based on your tolerance for risk.  Check Sample Size Matter
• A large sample doesn’t guarantee representativeness. Check: Does A Large Sample Size Guarantee A Representative Sample?
• If you have access to a customer database with emails, use it for studies related to customer retention goals and new product development.
• For customer acquisition, efforts use samples of non-customers in the category.
• If the study is online get bids from multiple online panels.
• Don’t buy third-party email lists and blast them with survey invites. It is illegal (SPAM-CAN Act).
• If you are conducting qualitative research , small samples are expected given the exploration nature of this methodology category. Consider issues of sample size saturation . Depending on the overall research objectives, results from qualitative research may need validation via quantitative research.

 Select Data Collection Method (s)

• Objectives, sample plan, analytical plan, and cost have the highest influence on which methods we use. Be open to using hybrid approaches combining qualitative and quantitative data collection methods
• Discuss which methods are the best fit to research the target pop. Some target groups may be difficult to reach with the same method
• If you decide on mixed-mode surveys, be aware of potential measurement errors each mode introduces. Check: Understanding the Pros and Cons of Mixed-Mode Research
• Once the data collection methods are selected, determine if you can do it with internal resources or need a research vendor.
• If time, staff, or lack of tools are limitations, consider outsourcing the project to an external research vendor. For more on this check: When Do You Need A Market Research Vendor ?
• If you are doing surveys, put time into its design. To create surveys that gather quality data check: 10 Things to Consider in Survey Design
• Considering focus groups? Check if it makes sense here: When Using Focus Groups Makes Sense
• If you are doing focus groups, avoid common mistakes. To know which they are, check: Common Mistakes When Doing Focus Groups
• Consider online qualitative research techniques. Check: Online Qualitative Research Techniques Review

Step 4. Collect Data

• Do a soft launch if you are doing online surveys to catch any potential problems.
• Get involved, monitor. early to catch any potential issues that can affect data quality (e.g., bad respondents, programming errors, etc.).

Step 5. Data Processing

• Clean your data. It doesn’t matter if it is quantitative or qualitative data, quality controls are needed.
• Fraudulent research participants are always trying to game the system to get their incentives. Try to catch them on the fly with the help of fraud prevention software and smart programming in recruitment screeners and question design and programming.
• Code open-ended questions to find patterns in the data.
• Create cross-tabulated tables to help organize the data if you do surveys.
• Transcribe interviews and focus group discussions to use tools to organize qualitative data to facilitate thematic analysis.

Step 6. Analyze & Report

• Keep the key objectives in mind to connect market research to business impact. Check: How To Connect Market Research To Business Impact
• Share preliminary results with key stakeholders, discuss, and check if they make sense from a practical standpoint.
• Focus on the story behind the numbers and how it supports your recommendations. Don’t do a data dump. Focus on insights.

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How to do market research in 4 steps: a lean approach to marketing research

From pinpointing your target audience and assessing your competitive advantage, to ongoing product development and customer satisfaction efforts, market research is a practice your business can only benefit from.

Learn how to conduct quick and effective market research using a lean approach in this article full of strategies and practical examples. 

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A comprehensive (and successful) business strategy is not complete without some form of market research—you can’t make informed and profitable business decisions without truly understanding your customer base and the current market trends that drive your business.

In this article, you’ll learn how to conduct quick, effective market research  using an approach called 'lean market research'. It’s easier than you might think, and it can be done at any stage in a product’s lifecycle.

How to conduct lean market research in 4 steps

What is market research, why is market research so valuable, advantages of lean market research, 4 common market research methods, 5 common market research questions, market research faqs.

We’ll jump right into our 4-step approach to lean market research. To show you how it’s done in the real world, each step includes a practical example from Smallpdf , a Swiss company that used lean market research to reduce their tool’s error rate by 75% and boost their Net Promoter Score® (NPS) by 1%.

Research your market the lean way...

From on-page surveys to user interviews, Hotjar has the tools to help you scope out your market and get to know your customers—without breaking the bank.

The following four steps and practical examples will give you a solid market research plan for understanding who your users are and what they want from a company like yours.

1. Create simple user personas

A user persona is a semi-fictional character based on psychographic and demographic data from people who use websites and products similar to your own. Start by defining broad user categories, then elaborate on them later to further segment your customer base and determine your ideal customer profile .

How to get the data: use on-page or emailed surveys and interviews to understand your users and what drives them to your business.

How to do it right: whatever survey or interview questions you ask, they should answer the following questions about the customer:

Who are they?

What is their main goal?

What is their main barrier to achieving this goal?

Pitfalls to avoid:

Don’t ask too many questions! Keep it to five or less, otherwise you’ll inundate them and they’ll stop answering thoughtfully.

Don’t worry too much about typical demographic questions like age or background. Instead, focus on the role these people play (as it relates to your product) and their goals.

How Smallpdf did it: Smallpdf ran an on-page survey for a couple of weeks and received 1,000 replies. They learned that many of their users were administrative assistants, students, and teachers.

Next, they used the survey results to create simple user personas like this one for admins:

Who are they? Administrative Assistants.

What is their main goal? Creating Word documents from a scanned, hard-copy document or a PDF where the source file was lost.

What is their main barrier to achieving it? Converting a scanned PDF doc to a Word file.

💡Pro tip: Smallpdf used Hotjar Surveys to run their user persona survey. Our survey tool helped them avoid the pitfalls of guesswork and find out who their users really are, in their own words. 

You can design a survey and start running it in minutes with our easy-to-use drag and drop builder. Customize your survey to fit your needs, from a sleek one-question pop-up survey to a fully branded questionnaire sent via email. 

We've also created 40+ free survey templates that you can start collecting data with, including a user persona survey like the one Smallpdf used.

2. Conduct observational research

Observational research involves taking notes while watching someone use your product (or a similar product).

Overt vs. covert observation

Overt observation involves asking customers if they’ll let you watch them use your product. This method is often used for user testing and it provides a great opportunity for collecting live product or customer feedback .

Covert observation means studying users ‘in the wild’ without them knowing. This method works well if you sell a type of product that people use regularly, and it offers the purest observational data because people often behave differently when they know they’re being watched. 

Tips to do it right:

Record an entry in your field notes, along with a timestamp, each time an action or event occurs.

Make note of the users' workflow, capturing the ‘what,’ ‘why,’ and ‘for whom’ of each action.

Don’t record identifiable video or audio data without consent. If recording people using your product is helpful for achieving your research goal, make sure all participants are informed and agree to the terms.

Don’t forget to explain why you’d like to observe them (for overt observation). People are more likely to cooperate if you tell them you want to improve the product.

💡Pro tip: while conducting field research out in the wild can wield rewarding results, you can also conduct observational research remotely. Hotjar Recordings is a tool that lets you capture anonymized user sessions of real people interacting with your website. 

Observe how customers navigate your pages and products to gain an inside look into their user behavior . This method is great for conducting exploratory research with the purpose of identifying more specific issues to investigate further, like pain points along the customer journey and opportunities for optimizing conversion .

With Hotjar Recordings you can observe real people using your site without capturing their sensitive information

How Smallpdf did it: here’s how Smallpdf observed two different user personas both covertly and overtly.

Observing students (covert): Kristina Wagner, Principle Product Manager at Smallpdf, went to cafes and libraries at two local universities and waited until she saw students doing PDF-related activities. Then she watched and took notes from a distance. One thing that struck her was the difference between how students self-reported their activities vs. how they behaved (i.e, the self-reporting bias). Students, she found, spent hours talking, listening to music, or simply staring at a blank screen rather than working. When she did find students who were working, she recorded the task they were performing and the software they were using (if she recognized it).

Observing administrative assistants (overt): Kristina sent emails to admins explaining that she’d like to observe them at work, and she asked those who agreed to try to batch their PDF work for her observation day. While watching admins work, she learned that they frequently needed to scan documents into PDF-format and then convert those PDFs into Word docs. By observing the challenges admins faced, Smallpdf knew which products to target for improvement.

“Data is really good for discovery and validation, but there is a bit in the middle where you have to go and find the human.”

3. Conduct individual interviews

Interviews are one-on-one conversations with members of your target market. They allow you to dig deep and explore their concerns, which can lead to all sorts of revelations.

Listen more, talk less. Be curious.

Act like a journalist, not a salesperson. Rather than trying to talk your company up, ask people about their lives, their needs, their frustrations, and how a product like yours could help.

Ask "why?" so you can dig deeper. Get into the specifics and learn about their past behavior.

Record the conversation. Focus on the conversation and avoid relying solely on notes by recording the interview. There are plenty of services that will transcribe recorded conversations for a good price (including Hotjar!).

Avoid asking leading questions , which reveal bias on your part and pushes respondents to answer in a certain direction (e.g. “Have you taken advantage of the amazing new features we just released?).

Don't ask loaded questions , which sneak in an assumption which, if untrue, would make it impossible to answer honestly. For example, we can’t ask you, “What did you find most useful about this article?” without asking whether you found the article useful in the first place.

Be cautious when asking opinions about the future (or predictions of future behavior). Studies suggest that people aren’t very good at predicting their future behavior. This is due to several cognitive biases, from the misguided exceptionalism bias (we’re good at guessing what others will do, but we somehow think we’re different), to the optimism bias (which makes us see things with rose-colored glasses), to the ‘illusion of control’ (which makes us forget the role of randomness in future events).

How Smallpdf did it: Kristina explored her teacher user persona by speaking with university professors at a local graduate school. She learned that the school was mostly paperless and rarely used PDFs, so for the sake of time, she moved on to the admins.

A bit of a letdown? Sure. But this story highlights an important lesson: sometimes you follow a lead and come up short, so you have to make adjustments on the fly. Lean market research is about getting solid, actionable insights quickly so you can tweak things and see what works.

💡Pro tip: to save even more time, conduct remote interviews using an online user research service like Hotjar Engage , which automates the entire interview process, from recruitment and scheduling to hosting and recording.

You can interview your own customers or connect with people from our diverse pool of 200,000+ participants from 130+ countries and 25 industries. And no need to fret about taking meticulous notes—Engage will automatically transcribe the interview for you.

4. Analyze the data (without drowning in it)

The following techniques will help you wrap your head around the market data you collect without losing yourself in it. Remember, the point of lean market research is to find quick, actionable insights.

A flow model is a diagram that tracks the flow of information within a system. By creating a simple visual representation of how users interact with your product and each other, you can better assess their needs.

You’ll notice that admins are at the center of Smallpdf’s flow model, which represents the flow of PDF-related documents throughout a school. This flow model shows the challenges that admins face as they work to satisfy their own internal and external customers.

Affinity diagram

An affinity diagram is a way of sorting large amounts of data into groups to better understand the big picture. For example, if you ask your users about their profession, you’ll notice some general themes start to form, even though the individual responses differ. Depending on your needs, you could group them by profession, or more generally by industry.

We wrote a guide about how to analyze open-ended questions to help you sort through and categorize large volumes of response data. You can also do this by hand by clipping up survey responses or interview notes and grouping them (which is what Kristina does).

“For an interview, you will have somewhere between 30 and 60 notes, and those notes are usually direct phrases. And when you literally cut them up into separate pieces of paper and group them, they should make sense by themselves.”

Pro tip: if you’re conducting an online survey with Hotjar, keep your team in the loop by sharing survey responses automatically via our Slack and Microsoft Team integrations. Reading answers as they come in lets you digest the data in pieces and can help prepare you for identifying common themes when it comes time for analysis.

Hotjar lets you easily share survey responses with your team

Customer journey map

A customer journey map is a diagram that shows the way a typical prospect becomes a paying customer. It outlines their first interaction with your brand and every step in the sales cycle, from awareness to repurchase (and hopefully advocacy).

The above  customer journey map , created by our team at Hotjar, shows many ways a customer might engage with our tool. Your map will be based on your own data and business model.

📚 Read more: if you’re new to customer journey maps, we wrote this step-by-step guide to creating your first customer journey map in 2 and 1/2 days with free templates you can download and start using immediately.

Next steps: from research to results

So, how do you turn market research insights into tangible business results? Let’s look at the actions Smallpdf took after conducting their lean market research: first they implemented changes, then measured the impact.

Implement changes

Based on what Smallpdf learned about the challenges that one key user segment (admins) face when trying to convert PDFs into Word files, they improved their ‘PDF to Word’ conversion tool.

We won’t go into the details here because it involves a lot of technical jargon, but they made the entire process simpler and more straightforward for users. Plus, they made it so that their system recognized when you drop a PDF file into their ‘Word to PDF’ converter instead of the ‘PDF to Word’ converter, so users wouldn’t have to redo the task when they made that mistake. 

In other words: simple market segmentation for admins showed a business need that had to be accounted for, and customers are happier overall after Smallpdf implemented an informed change to their product.

Measure results

According to the Lean UX model, product and UX changes aren’t retained unless they achieve results.

Smallpdf’s changes produced:

A 75% reduction in error rate for the ‘PDF to Word’ converter

A 1% increase in NPS

Greater confidence in the team’s marketing efforts

"With all the changes said and done, we've cut our original error rate in four, which is huge. We increased our NPS by +1%, which isn't huge, but it means that of the users who received a file, they were still slightly happier than before, even if they didn't notice that anything special happened at all.”

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Market research (or marketing research) is any set of techniques used to gather information and better understand a company’s target market. This might include primary research on brand awareness and customer satisfaction or secondary market research on market size and competitive analysis. Businesses use this information to design better products, improve user experience, and craft a marketing strategy that attracts quality leads and improves conversion rates.

David Darmanin, one of Hotjar’s founders, launched two startups before Hotjar took off—but both companies crashed and burned. Each time, he and his team spent months trying to design an amazing new product and user experience, but they failed because they didn’t have a clear understanding of what the market demanded.

With Hotjar, they did things differently . Long story short, they conducted market research in the early stages to figure out what consumers really wanted, and the team made (and continues to make) constant improvements based on market and user research.

Without market research, it’s impossible to understand your users. Sure, you might have a general idea of who they are and what they need, but you have to dig deep if you want to win their loyalty.

Here’s why research matters:

Obsessing over your users is the only way to win. If you don’t care deeply about them, you’ll lose potential customers to someone who does.

Analytics gives you the ‘what’, while research gives you the ‘why’. Big data, user analytics , and dashboards can tell you what people do at scale, but only research can tell you what they’re thinking and why they do what they do. For example, analytics can tell you that customers leave when they reach your pricing page, but only research can explain why.

Research beats assumptions, trends, and so-called best practices. Have you ever watched your colleagues rally behind a terrible decision? Bad ideas are often the result of guesswork, emotional reasoning, death by best practices , and defaulting to the Highest Paid Person’s Opinion (HiPPO). By listening to your users and focusing on their customer experience , you’re less likely to get pulled in the wrong direction.

Research keeps you from planning in a vacuum. Your team might be amazing, but you and your colleagues simply can’t experience your product the way your customers do. Customers might use your product in a way that surprises you, and product features that seem obvious to you might confuse them. Over-planning and refusing to test your assumptions is a waste of time, money, and effort because you’ll likely need to make changes once your untested business plan gets put into practice.

Lean User Experience (UX) design is a model for continuous improvement that relies on quick, efficient research to understand customer needs and test new product features.

Lean market research can help you become more...

Efficient: it gets you closer to your customers, faster.

Cost-effective: no need to hire an expensive marketing firm to get things started.

Competitive: quick, powerful insights can place your products on the cutting edge.

As a small business or sole proprietor, conducting lean market research is an attractive option when investing in a full-blown research project might seem out of scope or budget.

There are lots of different ways you could conduct market research and collect customer data, but you don’t have to limit yourself to just one research method. Four common types of market research techniques include surveys, interviews, focus groups, and customer observation.

Which method you use may vary based on your business type: ecommerce business owners have different goals from SaaS businesses, so it’s typically prudent to mix and match these methods based on your particular goals and what you need to know.

1. Surveys: the most commonly used

Surveys are a form of qualitative research that ask respondents a short series of open- or closed-ended questions, which can be delivered as an on-screen questionnaire or via email. When we asked 2,000 Customer Experience (CX) professionals about their company’s approach to research , surveys proved to be the most commonly used market research technique.

What makes online surveys so popular?  

They’re easy and inexpensive to conduct, and you can do a lot of data collection quickly. Plus, the data is pretty straightforward to analyze, even when you have to analyze open-ended questions whose answers might initially appear difficult to categorize.

We've built a number of survey templates ready and waiting for you. Grab a template and share with your customers in just a few clicks.

💡 Pro tip: you can also get started with Hotjar AI for Surveys to create a survey in mere seconds . Just enter your market research goal and watch as the AI generates a survey and populates it with relevant questions. 

Once you’re ready for data analysis, the AI will prepare an automated research report that succinctly summarizes key findings, quotes, and suggested next steps.

An example research report generated by Hotjar AI for Surveys

2. Interviews: the most insightful

Interviews are one-on-one conversations with members of your target market. Nothing beats a face-to-face interview for diving deep (and reading non-verbal cues), but if an in-person meeting isn’t possible, video conferencing is a solid second choice.

Regardless of how you conduct it, any type of in-depth interview will produce big benefits in understanding your target customers.

What makes interviews so insightful?

By speaking directly with an ideal customer, you’ll gain greater empathy for their experience , and you can follow insightful threads that can produce plenty of 'Aha!' moments.

3. Focus groups: the most unreliable

Focus groups bring together a carefully selected group of people who fit a company’s target market. A trained moderator leads a conversation surrounding the product, user experience, or marketing message to gain deeper insights.

What makes focus groups so unreliable?

If you’re new to market research, we wouldn’t recommend starting with focus groups. Doing it right is expensive , and if you cut corners, your research could fall victim to all kinds of errors. Dominance bias (when a forceful participant influences the group) and moderator style bias (when different moderator personalities bring about different results in the same study) are two of the many ways your focus group data could get skewed.

4. Observation: the most powerful

During a customer observation session, someone from the company takes notes while they watch an ideal user engage with their product (or a similar product from a competitor).

What makes observation so clever and powerful?

‘Fly-on-the-wall’ observation is a great alternative to focus groups. It’s not only less expensive, but you’ll see people interact with your product in a natural setting without influencing each other. The only downside is that you can’t get inside their heads, so observation still isn't a recommended replacement for customer surveys and interviews.

The following questions will help you get to know your users on a deeper level when you interview them. They’re general questions, of course, so don’t be afraid to make them your own.

1. Who are you and what do you do?

How you ask this question, and what you want to know, will vary depending on your business model (e.g. business-to-business marketing is usually more focused on someone’s profession than business-to-consumer marketing).

It’s a great question to start with, and it’ll help you understand what’s relevant about your user demographics (age, race, gender, profession, education, etc.), but it’s not the be-all-end-all of market research. The more specific questions come later.

2. What does your day look like?

This question helps you understand your users’ day-to-day life and the challenges they face. It will help you gain empathy for them, and you may stumble across something relevant to their buying habits.

3. Do you ever purchase [product/service type]?

This is a ‘yes or no’ question. A ‘yes’ will lead you to the next question.

4. What problem were you trying to solve or what goal were you trying to achieve?

This question strikes to the core of what someone’s trying to accomplish and why they might be willing to pay for your solution.

5. Take me back to the day when you first decided you needed to solve this kind of problem or achieve this goal.

This is the golden question, and it comes from Adele Revella, Founder and CEO of Buyer Persona Institute . It helps you get in the heads of your users and figure out what they were thinking the day they decided to spend money to solve a problem.

If you take your time with this question, digging deeper where it makes sense, you should be able to answer all the relevant information you need to understand their perspective.

“The only scripted question I want you to ask them is this one: take me back to the day when you first decided that you needed to solve this kind of problem or achieve this kind of a goal. Not to buy my product, that’s not the day. We want to go back to the day that when you thought it was urgent and compelling to go spend money to solve a particular problem or achieve a goal. Just tell me what happened.”

— Adele Revella , Founder/CEO at Buyer Persona Institute

Bonus question: is there anything else you’d like to tell me?

This question isn’t just a nice way to wrap it up—it might just give participants the opportunity they need to tell you something you really need to know.

That’s why Sarah Doody, author of UX Notebook , adds it to the end of her written surveys.

“I always have a last question, which is just open-ended: “Is there anything else you would like to tell me?” And sometimes, that’s where you get four paragraphs of amazing content that you would never have gotten if it was just a Net Promoter Score [survey] or something like that.”

What is the difference between qualitative and quantitative research?

Qualitative research asks questions that can’t be reduced to a number, such as, “What is your job title?” or “What did you like most about your customer service experience?” 

Quantitative research asks questions that can be answered with a numeric value, such as, “What is your annual salary?” or “How was your customer service experience on a scale of 1-5?”

 → Read more about the differences between qualitative and quantitative user research .

How do I do my own market research?

You can do your own quick and effective market research by 

Surveying your customers

Building user personas

Studying your users through interviews and observation

Wrapping your head around your data with tools like flow models, affinity diagrams, and customer journey maps

What is the difference between market research and user research?

Market research takes a broad look at potential customers—what problems they’re trying to solve, their buying experience, and overall demand. User research, on the other hand, is more narrowly focused on the use (and usability ) of specific products.

What are the main criticisms of market research?

Many marketing professionals are critical of market research because it can be expensive and time-consuming. It’s often easier to convince your CEO or CMO to let you do lean market research rather than something more extensive because you can do it yourself. It also gives you quick answers so you can stay ahead of the competition.

Do I need a market research firm to get reliable data?

Absolutely not! In fact, we recommend that you start small and do it yourself in the beginning. By following a lean market research strategy, you can uncover some solid insights about your clients. Then you can make changes, test them out, and see whether the results are positive. This is an excellent strategy for making quick changes and remaining competitive.

Net Promoter, Net Promoter System, Net Promoter Score, NPS, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.

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A Step-by-Step Guide to Conducting Effective Market Research

Market research is the backbone of informed business decisions. Whether you’re a seasoned entrepreneur or just starting, understanding your market is essential for success. 

In this guide, we’ll take you through a step-by-step process for conducting effective market research. We’ll also explore the role of the “Best Business Market Research Company” and the significance of professional “Business Market Research Services.”

Simple Guidance

Define your objectives.

Before diving into research, clearly define your objectives. Ask yourself what you want to achieve through this research. Are you looking to understand your target audience better, evaluate market trends, or assess your competition? Knowing your goals will guide your research efforts.

Identify Your Target Audience

Your target audience is the foundation of your research. Define who your ideal customers are. Consider variuos demographics of data like age, gender, income, and location. Dive deeper into psychographics, including lifestyle, preferences, and behaviors. Understanding your audience helps tailor your research.

Choose Your Research Methods

There are various research methods at your disposal:

• Surveys: Collect data through questionnaires or online surveys.
• Interviews: Conduct one-on-one interviews with industry experts or potential customers.
• Observation: Observe consumer behavior in a natural setting.
• Secondary Research: Utilize existing data, reports, and studies.
• Focus Groups: Gather a small group to discuss their opinions and experiences.

Select methods that align with your objectives and budget.

Gather Data

Execute your chosen research methods. Create surveys, conduct interviews, or observe market trends. Ensure that your data collection process is unbiased and representative of your target audience.

Analyze Data

Once you’ve gathered data thoroughly, it’s time to analyze it deeply. Look for patterns, trends, and insights. Consider using software tools or hiring professionals for complex data analysis.

Evaluate Competitors

To stay competitive, you must know your rivals. Identify variuos key competitors and analyze their strengths or potential and weaknesses. Determine what sets your business apart and how you can capitalize on it.

Professional Market Research Services

Consider enlisting the expertise of a Best Business Market Research Company . These firms specialize in comprehensive market analysis. They have access to vast data resources and employ skilled analysts to provide in-depth insights. Hiring professionals can save you time and ensure the accuracy of your research.

Customer Feedback

Listen to your customers. Their feedback can be a goldmine of information. Conduct customer surveys, read reviews, and engage with them on social media. Their opinions can guide product development and marketing strategies.

Monitor Trends

Market research isn’t a one-time task. Keep an eye on industry trends, consumer behavior, and emerging technologies. Staying up-to-date ensures your business remains relevant.

Make Informed Decisions

The ultimate goal of market research is to make informed decisions. Based on your findings, adjust your business strategies, marketing campaigns, and product offerings. Your research should guide every aspect of your business.

Testing and Refinement

After implementing changes, continuously monitor their impact. Conduct follow-up research to assess their effectiveness. Be prepared to adapt and refine your strategies as needed.

Cost-Benefit Analysis

Evaluate the cost of your market research against the benefits it brings. A well-executed research strategy should generate a significant return on investment.

Ethical Considerations

Respect ethical standards when conducting market research. Ensure data privacy, obtain informed consent from participants, and avoid deceptive practices.

Conclusion And Final Words

Effective market research is the cornerstone of a successful business. It empowers you to make informed decisions, understand your audience, and stay competitive. While you can conduct research independently, leveraging the expertise of a “Best Business Market Research Company” can provide invaluable insights.

In summary, market research is a dynamic and ongoing process. By following these steps and considering the assistance of professional “Business Market Research Services,” you can gain a competitive edge in your industry and steer your business towards growth and success.

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How to Do Market Research

Noah Parsons

18 min. read

Updated May 10, 2024

One of the biggest and most expensive mistakes I’ve made in my business career could have been avoided by doing a little homework.

In the late 2000s, my team and I came up with what we thought was a great idea for a product . Tons of businesses would need it, and it was almost guaranteed to be a huge hit!

But, we neglected to do our market research. 

We ended up with a product searching for a market instead of figuring out who our ideal customer was and building a product specifically for them.

You can avoid making this same mistake. 

Let’s learn from my experience and go over the basics of how to conduct market research. 

• What is market research?

Market research is the process of gathering information about your potential customers. 

It helps you define your target market, craft customer personas , and understand the viability of your business, by answering questions like: 

• Who are your customers?
• What are their buying and shopping habits?
• How many of them are there? 

By exploring your ideal customers’ problems, desires, and current solutions, you can build your product, service, and overall business strategy to better serve them.

• Why is market research important?

When starting a business , conducting market research to get to know your customers is one of the most important things you can do. 

If you don’t understand your customer, you don’t know:

• How you can solve their problems . 
• What kind of marketing messages and advertising work. 
• If your product or service is actually something your customers will spend money on.

Beyond that, market research can help you:

• Reduce risk: Inform critical decisions with real-world data.
• Understand your competitors: Know how competitors and alternatives to your business represent themselves in pricing, quality, and placement.
• Identify market trends: Stay ahead by spotting emerging trends and shifts in the market.
• Enhance customer experience: Improve customer satisfaction by addressing their pain points.

Gathering data on your customers should become a regular practice for your business. 

The more in tune you are with your customers, the better you can serve them and the more likely you are to grow your business. You should never just let assumptions about your customers drive business decisions.

Developing primary and secondary data through market research is how you get an accurate reflection of your customers’ needs.

Further Reading: 6 things to consider before entering a market

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Things to consider before conducting market research

Market research can be incredibly time-consuming (and even a waste of time) when done without the right preparation.

Here are a few questions to answer to help ensure you make the most of your efforts.

What are your objectives?

A research objective is a stated purpose that explains why you’re doing market research. It should include a specific result you intend to achieve, using available resources within a certain time frame. 

Without an objective, you’ll pour over a sea of data without knowing what you’re looking for. And if you speak to customers without a goal, you’ll struggle to ask useful questions and dig deeper.

Don’t overthink it.

Your objective should be easy to understand and connected to your business needs. 

For example, if you’re just starting, your objective may be to verify before investing in production if your chosen customer base is interested and willing to purchase your product or service.

What research methods will you use?

You don’t need to have every question prepped or a list of people to interview at the start—but you should know what research methods you intend to use.

The research options you choose will impact the data you collect, and the time it will take to complete it. By doing this ahead of time, you’ll be better prepared to create a timeline of when to take specific actions and what milestones to hit to stay on track.

What tools and resources do you need?

You likely won’t know every resource you’ll need until you start doing research. However, that doesn’t mean you can’t be proactive. 

If you know the methods you’ll be using, research what tools you’ll need to:

• Conduct interviews
• Create surveys
• Observe customer behavior

If you use third-party data, identify reputable sources to provide the information you want.

• How to conduct market research

Every business will do market research differently. The sources, the methods of data collection, and how you’ll use that data are entirely up to you. 

However, the core steps you should take remain the same. Here’s my recommendation for how to structure your research efforts:

1. Start by identifying your target market

Imagine that someone walks into your business, reaches out online, or picks up the phone and calls you. 

It’s your perfect customer: someone who has the problem that you solve and is willing to spend money on your solution. 

Now imagine the details about this person. Who are they? Can you describe them?

Ideal customers and common traits

This “ideal customer” is your target market . Your business might have several target markets, but it will usually serve you best to keep your list of target customers to two or three.

Each of your target markets should share common traits . These might be demographic traits such as: 

• Income levels
• Locations 

They might be psychographic traits—groups of people that like the same things or have similar interests. Or, your target market might be a certain type of employee at another company, such as a Chief Technology Officer or head of marketing.

Most often, target markets are blends of demographic and psychographic groups. For example, you might develop a new type of shoe targeted at female triathletes. Or you might be opening a hair salon targeting urban, hipster men.

Further Reading: Why niche audiences are important and how to find yours

Market segmentation

Creating multiple target markets for your company is doing what’s called “ market segmentation .” 

This sounds complex, but all you’re doing is dividing your target markets into different groups you hope to sell to. Each market segment might have different characteristics and buy your product or service for different reasons.

You might create different marketing campaigns or customize your product or service for each segment.

Further Reading:

Target marketing explained

Your target market is your ideal customer who needs your solution. They share common traits like age, gender, income, interests, or job roles. To start, focus your efforts on one target customer.

Consider focusing on a younger audience

Younger consumers are often overlooked in favor of older customers who currently make purchasing decisions. However, if you can crack the interests of a younger audience, it may lead to long-term loyalty.

2. Find out if your market is big enough

Are there enough potential customers to sustain you and your competitors? If the answer is no, then you need to consider changing your product or service offering.

Use the attributes you defined in the target market step and determine how many people meet your demographic, psychographic, or location criteria. I’ve got some links to resources to help you figure this out at the end of this article.

For example: If your target market only has a few thousand potential customers, you must either sell to them frequently or at a fairly high price to create a sustainable, profitable business.

Further Reading: How to use TAM, SAM, SOM to determine market size

If you are targeting an existing market with established competitors, you do what’s called industry research . 

For example, perhaps you are building a new company in the market for sports drinks or the market for cell phones. In cases like this, understanding how much people buy of existing offerings will give you the best sense of your potential market size. 

In this case, you want to look for industry reports and read trade publications for your industry. These publications often summarize the market size.

Further Reading: Differences between industry and market research explained

3. Talk to your potential customers

Once you have identified your target market, or at least made a good guess at who your target market is, you need to take the most important step in this entire market research process. 

You need to get up from your desk, leave behind your computer, and go outside. That’s right, you need to go and talk to people in your potential target markets. 

Yes, you can do online surveys and other research, but that’s no substitute for actually talking to potential customers. 

You’ll gain more insight into your customers through first-hand accounts than any survey will ever tell you.

Do this one thing, and you’ll be miles ahead of your competition. Why? Because most people skip this step. It’s intimidating to talk to strangers. What if they don’t want to buy what you plan on making?

So, don’t be like most entrepreneurs (including me!) and skip this critical step. 

It can mean the difference between success and failure. Getting this step done early will help you refine your business model and make a clear impact on your future success.

Further Reading: How to Create a Market Penetration Strategy  

4. Identify and analyze your competitors

Part of understanding your customers is knowing what solutions they already use. 

These are your competitors, and they may directly compete with you or provide a reasonable substitution customers settle for. 

You’ll understand how to position your business to take advantage of potential opportunities and mitigate risks by analyzing who they are, what they do, and how customers respond.  

Document your known competitors

To keep things simple, start by listing your known competitors . Account for businesses that offer a similar product/service, and those that indirectly compete with their solution or industry expertise. 

Example:   You operate an outdoor goods retail store. Your mission is to provide hands-on direction for customers to find camping, hiking, and survival gear that they will love. You offer a wide selection of well-known brands, local options, and in-house creations.

Your direct competitors are the large brands themselves, less niche retail stores, and online sellers. You must also account for other businesses that provide expert-level information on outdoor activities. 

They likely don’t sell the products, but may provide guided tours, reviews, or other insights that overlap with your business. 

Analyze your competitors

Once you have your list, it’s time to get to know the competition. Check out their websites, social media, customer reviews, and news stories from the last year. 

Sign up for their email lists, visit their stores (if they have them), and track down any industry reports that give you an idea of their size, performance, and strategic direction.

You don’t have to do everything I just listed. But you must go deep enough to clearly understand your competitors and why potential customers may choose them over you. 

It may even be useful to use the SWOT analysis framework to provide additional structure for your research. 

Further Reading: 10 ways to determine what your competitors are doing

5. Document your findings

The final (and easiest) step is to document your findings. How formal your documentation is will depend on how you plan on using it.

If you only need to share your findings with business partners and others in your business, then you can probably communicate fairly informally. 

However, if you’re looking for investors for your business, you may need to write a more formal market analysis and do a market forecast.

Presenting your market research

The single piece of documentation that every business should create is a buyer persona . 

A persona is a description of a person that hits on all of the key aspects of your target market. And, just like you might have several target markets for your business, you might have several different buyer personas.

Creating a buyer persona converts your target marketing information from dry research into a living, breathing person. 

For LivePlan , we’ve created a persona named Garrett, who drives much of our product development. Garrett embodies the attributes of our ideal customer.

When we think about creating a new marketing campaign or developing a new feature for our products, we ask, “Would Garrett like this?” You can read about the process we used to create Garrett in this article.

How to create a detailed user or buyer persona

Visualizing your customers when reviewing a sea of data can be tricky. So, create a customer persona and turn that data into the living, breathing person you imagine your customer to be.

LivePlan customer persona example

Check out this real-world customer persona used by the business planning and management software LivePlan.

When should you conduct market research?

Market research is vital when starting a business. It will improve your product or service and help you avoid starting a business without customers.

However, market research shouldn’t be exclusive to new businesses. Conditions are bound to change, and you must stay up-to-date on your industry , competitors, and emerging trends. 

Here are a few other business events where market research can make a difference:

• Launching a new product/service or updating current features.
• Expanding into a new market.
• Consistent dips in financial performance. 
• Widespread market changes.
• New competitors enter the market.

Primary vs secondary market research explained

No matter how you decide to gather information, the methods can be boiled down to primary and secondary research. As a business owner, it’s worth understanding the basics of each type of research and how they work together.

What is primary research?

Primary research is the first-hand information collected (by you or someone you’ve hired) from customers within your market. Primary research cuts out the middleman and ensures that the results you are gathering are straight from the source. 

That’s why you should conduct primary research when validating your business idea. 

Furthermore, it can be broken down into two result categories — exploratory and specific.

Exploratory primary research

Exploratory primary research involves non-quantifiable customer feedback. This means you’re not trying to measure results but to record interest or an emotional response. You’ll accomplish this by asking open-ended questions in formats like focus groups or 1:1 interviews.

Asking for open-ended feedback ensures that the results are unfiltered and honest. You aren’t unintentionally leading or hindering their responses. 

Specific primary research

Specific research allows you to dig deeper into issues or opportunities you identified through your exploratory research. 

You may target a smaller segment of customers from the larger group you’ve spoken to, conduct additional interviews, or shift to more quantifiable research such as beta-testing or surveys.

What is secondary research?

Secondary research covers every other piece of data you have available. This includes resources such as:

• Public sources: Typically free and highly accessible information gathered through government-sponsored research projects. 
• Commercial sources: Research studies conducted by private organizations regarding the state of specific markets, industries, or innovations. 
• Internal sources: Data you have collected through everyday business operations. Everything from financial statements to Analytics reports can qualify.

Which is better: primary or secondary research?

Neither primary nor secondary research is better than the other. They simply have different use cases. So, aim for a healthy mix.

When starting, focus on conducting primary research to ensure you get the necessary information to validate your business. 

Compare those findings to secondary resources such as industry benchmarks , market reports, and internal data you’ve collected. 

You’ll likely leverage secondary research more consistently as you grow—but it’s wise to run primary research initiatives occasionally, especially when approaching a strategic decision. Only with both types of research will you fully understand the story of your place in the market. 

Further Reading: Types of market research explained and how to use them

Types of market research to try

1. face-to-face, remote, or phone interviews.

I mentioned this before, but the best thing you can do is get out and talk to your potential or current customers, virtually or in person. 

Be sure you have a refined set of closed and open-ended questions ready, and consider the interviewee’s tone, body language, and interest alongside their answers.

2. Focus groups

Similar to interviews, focus groups can provide direct feedback from your customer mix. Rather than receiving answers or reactions in a bubble, you get to see how customers may act when influenced by others in the market. You can simply ask questions, run product tests, or have them watch a demo.

3. Observational research

Observational research is about watching how potential customers engage with your product or service. You’re attempting to understand what roadblocks or frustrations they may be hitting, what functionality seems to resonate, what they want from your business, etc.

To conduct observational research, you can set up an official testing environment that you control. Or you can just go out and observe your potential customers and see how they shop, make purchases, and what factors encourage or deter them from purchasing.

4. Pricing research

You may include questions about pricing when conducting interviews or focus groups, but you can also specifically develop research around pricing. 

This can be anything from testing different pricing options on your website ( A/B testing ), offering discounts to exclusive segments, or running ad campaigns with different pricing positions. The goal is to understand what your customers are willing to pay and what they consider a fair price .

5. Brand awareness research

This type of research is about understanding if your target market knows about your brand and how much they happen to know. What do they associate with your brand? What competitors come to mind first?

It’s a great way to understand your current market penetration and who your competitors are. You can integrate this type of questioning within your other tests or conduct surveys to get this data.

6. Customer interest

As part of your initial validation process, you should try to understand current customer interest. At its most basic, you’re asking: Are customers willing to buy your product or service? 

You can simply ask questions and look for yes or no answers, but it may be wise to run a limited-time sale or pre-sale to actually line up initial revenue for your business. 

You can offer the chance to purchase during your interviews or focus groups, as well as run pre-orders through a simple landing page or by measuring engagement with a paid ad campaign.

7. Customer satisfaction

This research will help you understand current customer loyalty and what it will take to get customers to come back. Again, you can do this research within focus groups or interviews. 

Still, you can also test loyalty programs, limited-time promotions, customer service initiatives, and other ways to improve customer loyalty. 

Market research tools and resources

Finding market research data depends on the market you are targeting and the industry you are in. 

Here are a few of my go-to sources for market research:

• U.S. Census : If you’re opening a business in the U.S., the U.S. Census site is a goldmine of information. Check out the Census Business Builder to get population data and data on how much people spend in a given area on your type of business.
• Bureau of Labor Statistics : Another U.S.-centric resource, but a fantastic site for information on specific industries: hiring and expense trends as well as industry sizes. If your target market is other businesses, this is a good place to look for data.
• Consumer Expenditure Survey : If you want to know what people spend their money on, this is your source.
• SBDCNet Business Snapshots : You’ll find a great collection of industry profiles that describe how industries are growing and changing, who their customers are, and what typical startup costs are. You should also check out their list of market research resources, sorted by industry .
• ChatGPT : All data generated from AI models like ChatGPT must be verified. But it can still be an excellent market research assistant. With the right prompting, you can generate customer segments, understand their nuances, and prioritize them based on your needs.

Further Reading: 21 best market research resources for small businesses

Market research informs your startup decisions

Effective market research can help you avoid costly mistakes early on in the life of your business. 

However, it should remain a core practice that you regularly implement when approaching crucial business decisions, growth opportunities, or just to reaffirm your understanding of the market. 

Revisit this framework whenever you’re approaching a key strategic decision . Confirm that you still understand your customers, competitors, and where the market is headed.

Then use this information to inform your planning and adjust your strategy if necessary.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Before conducting market research
• When to conduct market research
• Primary vs secondary research
• Types of market research
• Tools and resources
• Market research informs your decisions

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Your step-by-step guide to market research

This post was a collaboration between

Lawrence Chapman , Amelia Wilson

Lawrence Chapman

Lawrence is our Copywriter here at PMA who loves crafting content to keep readers informed, entertained, and enthralled. He's always open to feedback and would be thrilled to hear from you!

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Staying ahead of the competition demands a deep understanding of your market landscape. Yet, far too often, businesses find themselves operating in the dark, unable to grasp the nuances of their target audience.

If this sounds familiar, you're not alone. Luckily there’s a solution: market research. In this comprehensive guide, we'll explore what it entails and why it's an indispensable tool for any competitive intelligence expert.

From identifying customer needs and avoiding costly missteps to benchmarking against rivals and optimizing your marketing tactics, market research holds the power to elevate your competitive strategy. 

We'll dive into the different types of market research, including primary and secondary sources, as well as quantitative and qualitative data, equipping you with the knowledge to harness each approach effectively.

Let’s get into it. 🤿

What is market research?

Market research is the systematic process of gathering data on target markets or industries as a whole. Its goal is to identify market trends, sizes, growth potential, pricing models, competition levels, and customer demographics.

It typically involves quantitative research methods like surveys, polls, and data analysis. It serves to answer questions like:

• Who makes up the target market?
• How big is the total market size?
• What macro-level trends are shaping the market?
• How are competitors positioned?
• What are average prices and price sensitivity?

This high-level information allows companies to:

• Validate market opportunities.
• Develop new products or features.
• Set competitive pricing.
• Position brands effectively.
• Allocate resources to the most lucrative segments.
• Maximize marketing ROI.

Market research refers to understanding the competitive environment and overall market that your company operates within. This allows you to position your product more effectively in the market.

Why is market research important?

Do Hershey’s launch a new candy bar without taste tests? Do ad campaigns get signed off without test screenings? Or do fast-food chains launch new burgers without checking out what the punters’ taste buds are craving?

Answer: A resounding no. 

Rather than acting on a whim, companies complete meticulous market research to improve their chances of a hit, and reduce the likelihood of an expensive pink elephant.

In a nutshell, market research spills the beans on what prompts customers to put their hands in their pockets, buy products and services, and part with their hard-earned cash.

The process is critical to ensure that the best decisions are made by a company. But how does it help, and why should every company sit up and take notice? All shall be revealed…

The benefits of conducting market research

It helps you identify your customer base.

It’s impossible to build a successful product unless you communicate with prospective customers. Market research provides a set of definitive answers to key questions, including:

• Who is your product aimed at?
• Who are your customer personas?
• What features do they want from your product?
• How much are they willing to spend?

The market research process allows you to clearly paint an image of:

• your ideal customer – gender, age, location, income, etc.
• the product you’re going to create, as dictated by the needs of the customer.

When you’ve identified who and what you’re creating, you’re able to successfully tailor your marketing strategy and pricing plans, accordingly. 

It can prevent sloppy mistakes

Before launching a product , it’s important to conduct rigorous research and testing , to avoid silly (and expensive) errors.

Let prospective buyers test it out beforehand, so you can iron out any imperfections by conducting market research.

While your gut may tell you your product will resonate with consumers, making decisions based on gut instinct alone isn’t a great idea; if things go wrong, you’ll be left ruing your choice not to do some simple testing.

Focus groups are a great source of customer and market feedback . If things go swimmingly, you’ve got the peace of mind you need, and you can push on with the launch. If there are areas for improvement, just go back to the drawing board and make your service even better.

It can protect your business

Market research not only indicates what the market is like now, it allows you to forecast how your industry could shape up in the future.

Proactivity helps you exploit potential gaps in the market other companies may not have spotted, so always stay on your toes and keep your eyes peeled for market opportunities.

Take UK record store HMV, for example. While they continued to channel their efforts into the sales of CDs and DVDs, Spotify and Netflix researched the market and developed mobile platforms offering music and film on demand, in line with emerging trends. 

In 2019, Netflix’s assets were $34.9bn, and Spotify was being heralded as ‘the savior of the music industry’, while HMV called in administrators for the second time in six years.

Winner: Market research, by knockout.

It allows you to size up opportunities

How big could your market be? Are there adjacent segments ripe for expansion? Market research surfaces crucial data on market size, growth rates, and demographic factors that make new ventures viable.

It also maps out expansion opportunities beyond early adopters by revealing underserved consumer needs in a category.

It helps you benchmark against competitors

Monitoring competitors goes hand-in-hand with understanding customers. Market research tracks factors like competitor market share, brand awareness, consumer sentiment, pricing, promotional strategies, and perceived product strengths/weaknesses.

These benchmarks help position your business competitively. They also highlight tactical advantages to better meet customer needs in an evolving marketplace.

It informs business strategy

Understanding the market is crucial for any business to make informed decisions. It helps you identify trends that’ll impact corporate strategy and planning. Plus, it provides valuable insights to guide decisions around selecting target markets, developing products or services, creating marketing and sales strategies, and staying ahead of the competition.

It helps you optimize marketing spend

No marketing budget is infinite. Market research identifies high-potential customer segments so you can allocate marketing spend for maximum ROI.

It also surfaces media consumption habits and influencers to refine messaging and choose cost-efficient channels. The end goal is better conversion rates and lower customer acquisition costs.

8 ways market research supports customer research

While market and customer research are two distinct practices, they ultimately work towards the same goal: to help you make the right strategic decisions by deeply understanding your audience.

Here are eight ways market research complements customer research:

1. Validating market segments: Market data indicates segments with distinct needs. Customer research explores those needs with real people.

2. Sizing target markets: Macro-level market research gauges potential sales volume for new products or services. Customer research assesses actual interest and buying criteria.

3. Identifying customer archetypes: Market data reveals demographic clusters. In-depth interviews turn those statistics into living buyer personas.

4. Comparing against competitors: Market share metrics show key rivals. Customer studies reveal why people prefer them over you.

5. Selecting new markets: High-level market scans uncover blue ocean opportunities. Customer studies determine product-market fit.

6. Forecasting industry trends: Market forecasts predict future shifts. Customer input guides strategies to leverage them.

7. Choosing marketing channels: Market research identifies major media outlets and influencers. Customer interviews reveal which touchpoints matter most.

8. Pricing products or services: Industry benchmarking provides pricing ranges. Conjoint analysis finds optimal price points.

Primary vs. secondary market research

There are two types of data sources you can use when carrying out market research: Primary and secondary. Let’s take a look at what they each involve and how you can get your hands on them. 

Primary research

Primary research is research you conduct for yourself or hire a specialist to collect on your behalf.

For example, at Competitive Intelligence Alliance, we used data we collected ourselves for the Competitive Intelligence Trends report , and we’re continuing to survey members of our community for upcoming editions. 

Primary research is based on two types of information: exploratory and specific.

Exploratory research is open-ended, with respondents usually providing their views in an unstructured interview scenario.

On the other hand, specific research tends to be more structured, to solve a particular problem highlighted during the exploratory phase.

How to conduct primary research

When arranging primary research, it’s important to identify your research subjects’ preferred method of communication, whether this is direct mail, phone, or interviews.

These should be considered carefully, given the response rate for each method varies. For example, people tend to prefer a quick chat on the phone over penning lengthy responses to questions sent by email.

Social media is also widely used for conducting market research. Features like LinkedIn polls allow companies to quickly gather opinions from thousands of followers.

Secondary research

Secondary research is research conducted by some other party. You can get it from sources like:

• Government websites

Secondary research intel is often available to the public and can be found online or in libraries. Media outlets such as newspaper publishers and TV stations also host a range of information that can be useful for secondary research. 

Quantitative vs. qualitative data

There are not only two types of research to be aware of, but also two types of data: quantitative and qualitative. Let’s take a look.

What is quantitative data?

Quantitative data consists of cold, hard facts that can be easily converted into graphs and charts. The research is usually carried out using surveys and questionnaires with closed-ended questions, yes or no questions, checkbox or multiple-choice questions, and questions with intervals or ratios. It’s structured, statistical, and numbers-based.

What are the benefits of quantitative data?

Quantitative data is useful for conclusive answers, it’s easy to analyze and can help prove or disprove hypotheses. The questions are also quicker and easier to answer, so you’re likely to get more responses.

What is qualitative data?

Qualitative data is non-statistical and consists largely of impressions and opinions. It’s generally used to answer ‘why’ questions. It’s investigative in nature and asks open-ended questions. Qualitative data can be generated through:

• Audio and video recordings
• Images and symbols
• Interview transcripts and focus groups
• Observations and notes

What are the benefits of qualitative data?

Qualitative research gives you a deeper insight into the motivations behind the statistics. It’s used to theorize and interpret. Instead of asking how many people buy your product, it asks why they buy it (or not!).

Which data is better for research?

Whether you decide to use qualitative or quantitative data will depend on the results you’re looking for.

If, for example, your product was an app that maps bike routes, using qualitative questions like “What do you think of our app?” will lead to many, many different answers. They might focus on speed, responsiveness, and price, which could be invaluable information for you to look at.

However, if you want a specific question answered, like: “How responsive is this app?”

• Super responsive
• Sometimes responsive
• Not at all responsive

Then, quantitative data is your best bet.

The two approaches aren’t mutually exclusive though. You can gather both quantitative and qualitative data for a more holistic view of your target market.  

Market research is invaluable for any CI pro. By tapping into its power, you gain a profound understanding of your target market, empowering you to make informed decisions that help you outmaneuver your competitors and drive sustainable growth. So, don't be afraid to embrace market research and use it to your advantage!

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• Market Research

Effective Market Research: A Step-by-Step Guide

Key Takeaways

• Informed Decision-Making: Master the art of Effective Market Research for strategic decision-making that aligns with market dynamics and consumer behaviors.
• Targeted Strategies: Define your audience, analyze competitors, and choose the right methods to tailor strategies that resonate, ensuring relevance and engagement.
• Continuous Excellence: Elevate your market research journey with ongoing learning. Leverage additional resources, monitor, adapt, and refine strategies for sustained success.

In the ever-evolving landscape of business, one indispensable compass guides decision-makers through the dynamic currents of industry trends, consumer behaviors, and competitive landscapes—Effective Market Research.

As the lifeblood of strategic planning, market research serves as the cornerstone upon which successful enterprises build their foundations.

In this comprehensive Effective Market Research: A Step-by-Step Guide, we embark on a journey of discovery, demystifying the intricacies of market research and equipping you with the tools to navigate the complex realms of your industry.

Why is Market Research Crucial?

In a world where change is the only constant, successful businesses are those that embrace adaptability, innovation, and a profound understanding of their market.

Market research isn’t just a buzzword. It’s the linchpin that connects businesses to the pulse of their target audience, enabling them to foresee shifts in demand, identify unmet needs, and tailor their strategies with surgical precision.

The Significance of Strategic Planning

Effective market research transcends the realm of data collection; it is the catalyst for strategic planning that empowers businesses to make informed decisions.

In a landscape where the competition is fierce and consumer preferences are as dynamic as ever, a strategic approach to market research becomes the differentiator between market leaders and followers.

Navigating Our Step-by-Step Guide

Embarking on the journey of effective market research necessitates a structured approach.

Our step-by-step guide is designed to be your compass, steering you through the nuanced process of gaining actionable insights.

From laying the groundwork with a fundamental understanding of market research principles to implementing strategic changes based on findings, each section of this guide is a building block for comprehensive market intelligence.

But Why a Step-by-Step Guide?

Navigating the vast ocean of market research can be overwhelming, especially for those new to the concept or seeking to enhance their existing practices.

This step-by-step guide is crafted to demystify the process, breaking down complex concepts into digestible segments.

Whether you’re a seasoned entrepreneur, a startup enthusiast, or a marketing maven, this guide provides actionable insights that transcend industry boundaries.

Prepare to embark on a transformative journey—one where the compass is market research, and the destination is unparalleled business insight.

Together, let’s navigate the intricate waters of the business landscape and unveil the power of Effective Market Research—a guide designed not only to inform but to empower, ensuring that your business not only survives but thrives in the ever-evolving marketplace.

Before we venture further, we like to share who we are and our digital experiences.

About AppLabx

From developing a solid marketing plan to creating compelling content, optimizing for search engines, leveraging social media, and utilizing paid advertising,  AppLabx  offers a comprehensive suite of digital marketing services designed to drive growth and profitability for your business.

AppLabx is well known for helping companies and startups use market research techniques and tools to drive web traffic to their websites and web apps and optimize their customer experience.

At AppLabx, we understand that no two businesses are alike. That’s why we take a personalized approach to every project, working closely with our clients to understand their unique needs and goals, and developing customized strategies to help them achieve success.

If you need a digital consultation, then send in an inquiry  here .

• Understanding the Basics of Market Research
• Defining Your Target Audience
• Conducting Competitor Analysis
• Choosing the Right Research Methods
• Collecting and Analyzing Data
• Interpreting Research Findings
• Implementing Changes Based on Research
• Monitoring and Adapting
• Tips for Effective Market Research
• Additional Resources

1. Understanding the Basics of Market Research

In the pulsating realm of business strategy, market research stands as the bedrock upon which successful ventures are built.

Before delving into the intricate steps of effective market research, let’s establish a solid foundation by comprehending the basics.

Definition and Purpose

Market research, at its core, is the systematic gathering, analysis, and interpretation of information to gain insights into a market, enabling informed decision-making.

Its purpose extends beyond mere data collection; it serves as a strategic tool to identify opportunities, mitigate risks, and optimize business performance.

According to the Business Research Company, the global market research industry is projected to reach $95.49 billion in 2027 , underlining its critical role in the business landscape.

Types of Market Research

To navigate the market research landscape effectively, it’s essential to discern between two primary types: primary and secondary research.

Primary Research

This involves the direct collection of data from original sources, such as surveys, interviews, and focus groups.

For instance, a leading smartphone manufacturer conducts primary research by engaging with potential customers through beta testing and gathering firsthand feedback on features, usability, and preferences.

Secondary Research

Secondary research involves the analysis of existing data and sources, including industry reports, competitor publications, and government databases.

According to the Business Research Company, the secondary research market is predicted to grow at a CAGR of 5.3% between 2021 and 2026 , showcasing its increasing importance in the business landscape.

Identifying Research Objectives

Before embarking on a market research endeavour, it’s crucial to clearly define research objectives. These objectives serve as the guiding lights, steering the research process toward valuable outcomes.

For instance, a startup in the health and wellness industry may set research objectives to understand consumer preferences for organic products, identify market gaps, and assess the competitive landscape.

By establishing these fundamental principles, businesses can lay the groundwork for a targeted and purposeful market research strategy, setting the stage for actionable insights and strategic decision-making.

2. Defining Your Target Audience

In the labyrinth of market dynamics, pinpointing and understanding your target audience is akin to discovering the treasure map to business success.

This section delves into the intricacies of defining your target audience, exploring why it’s a paramount step in effective market research.

Importance of Target Audience Definition

The most important part of successful marketing lies in resonance—establishing a profound connection with your audience.

To achieve this, businesses must first define their target audience with meticulous precision.

Creating Buyer Personas

Buyer personas are archetypal representations of your ideal customers, crafted through in-depth research and analysis.

These personas encapsulate demographic, psychographic, and behavioral traits, offering a comprehensive snapshot of your target audience.

Demographic and Psychographic Data Integration

Demographic data (age, gender, income) and psychographic data (lifestyle, values, interests) are indispensable building blocks for creating robust buyer personas.

For instance, a fitness apparel brand defines its target audience not just by age and gender but also by psychographic data, such as an interest in sustainable living and an active lifestyle. This nuanced approach aids in tailoring products and messaging to resonate with the audience on a deeper level.

Utilizing Data Analytics for Precision

In the era of big data, leveraging advanced analytics tools becomes crucial for refining and validating target audience definitions.

Data analytics not only validates assumptions but also unveils nuanced patterns and preferences.

By combining demographic and psychographic insights and harnessing the power of data analytics, businesses can finely sculpt buyer personas that serve as the cornerstone for targeted marketing campaigns and product development.

3. Conducting Competitor Analysis

In the ever-evolving landscape of business, understanding your competitors is not just a tactical advantage but a strategic imperative.

This section delves into the intricacies of conducting competitor analysis, providing a roadmap for businesses to glean actionable insights and fortify their market position.

Identifying Competitors: The Starting Line

Before delving into analysis, businesses must first identify their competitors—both direct and indirect.

Direct competitors offer similar products or services, while indirect competitors may serve the same need but through different means.

Analyzing Competitor Strengths and Weaknesses

Understanding the strengths and weaknesses of competitors provides a nuanced view of the competitive landscape. SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a powerful tool in this regard.

Example: SWOT Analysis in Action

Let’s consider a scenario in the e-commerce sector. A new entrant conducts a SWOT analysis of a major competitor:

• Strengths: Established brand, and wide product range.
• Weaknesses: Slow website loading times, and limited customer engagement.
• Opportunities: Emerging markets, and untapped customer segments.
• Threats: Increasing competition, and changing consumer preferences.

Leveraging Technology for Competitive Insights

Technology has become an indispensable ally in the quest for competitive intelligence. AI-driven tools, web scraping, and social media monitoring offer real-time insights into competitor activities and consumer sentiments.

According to a report by Markets and Markets, the business intelligence market is projected to grow from USD 23.1 billion in 2020 to USD 33.3 billion by 2025 .

Benchmarking Strategies for Success

Benchmarking involves comparing your products, services, or processes against the best performers in your industry. This process not only highlights areas for improvement but also unveils opportunities for innovation.

4. Choosing the Right Research Methods

In the multifaceted realm of market research, selecting the appropriate research methods is akin to choosing the right tools for a craftsman.

This section is dedicated to unravelling the intricacies of choosing the right research methods and exploring a spectrum of approaches that cater to diverse business needs.

Surveys and Questionnaires: Tapping into Mass Perspectives

Surveys and questionnaires stand as stalwarts in gathering quantitative data from a large audience.

Whether distributed through traditional means or online platforms, they offer scalable insights.

Interviews and Focus Groups: Unveiling Nuanced Perspectives

When depth and context are paramount, interviews and focus groups step into the spotlight.

These qualitative methods provide nuanced insights, capturing the intricacies of individual experiences and group dynamics.

Example: Focus Groups in Product Development

A technology company considering a new product may conduct focus groups to understand user expectations, pain points, and feature preferences. This qualitative approach offers invaluable insights into the user experience.

Observational Research: Understanding Behavior in the Wild

Observational research involves studying subjects in their natural environment without direct interaction. This method is particularly useful for understanding consumer behaviour in real-world scenarios.

Data Mining and Analytics: Unearthing Patterns in Big Data

In the age of big data, data mining and analytics emerge as transformative tools for market researchers. By sifting through vast datasets, businesses can identify patterns, correlations, and trends.

In a report, businesses leveraging big data analytics witness 15% more sales than companies that fail to do so, as cited by SCORE.

Choosing the Right Mix for Comprehensive Insights

The effectiveness of market research often lies in a judicious mix of research methods.

Combining quantitative approaches like surveys with qualitative methods like interviews ensures a comprehensive understanding of the market landscape.

5. Collecting and Analyzing Data

In the data-driven landscape of market research, the twin pillars of success rest upon the meticulous collection and insightful analysis of data.

This section navigates through the nuances of these critical processes, showcasing how businesses can harness the power of data for informed decision-making.

Data Collection Tools and Techniques: Precision in Practice

Choosing the right tools for data collection is paramount to the accuracy and reliability of research outcomes. Various methods and technologies cater to diverse research needs.

Example: Online Surveys with Google Forms

A global fast-food chain seeking customer feedback may deploy Google Forms for online surveys.

This user-friendly tool not only facilitates large-scale data collection but also offers seamless integration with analytics platforms.

Quantitative vs. Qualitative Data: A Balancing Act

The choice between quantitative and qualitative data depends on the research objectives.

Quantitative data provides numerical insights, while qualitative data delves into the context and depth of responses.

Both quantitative and qualitative methods to ensure a comprehensive understanding of public opinion.

Data Analysis Tools and Software: Unleashing the Power of Technology

The rise of big data has catalyzed the development of advanced data analysis tools and software.

From Microsoft Excel to sophisticated AI-driven platforms, businesses have an array of options to extract meaningful insights.

Example: Tableau in Visual Analytics

A multinational retailer may utilize Tableau for visual analytics, transforming raw data into interactive visualizations.

This not only aids in pattern recognition but also enhances data-driven decision-making.

The global data analytics market is expected to reach $132.9 billion by 2026 , as cited by GlobeNewswire.

Ensuring Data Accuracy and Reliability: The Bedrock of Insights

The integrity of market research hinges on the accuracy and reliability of the collected data.

Rigorous validation processes, random sampling techniques, and data cleansing practices contribute to the trustworthiness of findings.

Ethical Considerations in Data Collection: Upholding Integrity

As technology advances, ethical considerations in data collection become increasingly vital.

Businesses must prioritize user privacy, consent, and transparency to build trust with their audience.

A survey reveals that 93% of consumers believe it’s important for companies to ensure their data is used ethically , as cited by Deloitte Digital, Australia.

6. Interpreting Research Findings

Interpreting research findings is the transformative stage where raw data metamorphoses into actionable intelligence.

This section illuminates the intricacies of this crucial phase, offering insights into how businesses can unlock the true potential of their market research endeavours.

Drawing Conclusions: Connecting the Dots

Interpreting research findings involves synthesizing data points to draw meaningful conclusions. It’s the bridge between data collection and strategic decision-making, requiring a keen eye for patterns and trends.

Example: Consumer Behavior Analysis

A global e-commerce giant, armed with data on customer preferences, may conclude that a specific demographic prefers mobile shopping apps over desktop websites. This insight informs targeted marketing strategies and app optimization.

Making Informed Decisions: Guiding the Way Forward

Informed decision-making is the ultimate goal of market research.

Interpreted findings provide the roadmap, guiding businesses toward strategies that align with market dynamics and consumer expectations.

Addressing Limitations and Biases: Navigating Imperfections

No research is immune to limitations and biases.

Acknowledging and addressing these imperfections is crucial for maintaining the credibility and reliability of research findings.

Leveraging Visualization Tools: Bringing Data to Life

Visualization tools play a pivotal role in simplifying complex data sets, making it easier for stakeholders to grasp insights.

From charts and graphs to interactive dashboards, these tools enhance the communicative power of research findings.

A study shows that 49% of businesses consider visualization critical in effective decision-making .

7. Implementing Changes Based on Research

In the dynamic landscape of business, the true power of market research is unleashed when findings are translated into actionable strategies.

This section explores the intricacies of implementing changes based on research, illustrating how businesses can transform insights into tangible results.

Strategic Planning: Blueprint for Success

Strategic planning is the linchpin between research findings and successful implementation.

It involves crafting a roadmap that aligns business goals with the insights garnered from market research.

Example: E-commerce Expansion Strategy

A retail giant, armed with insights about emerging markets and changing consumer preferences, may decide to implement a strategic plan to expand its e-commerce presence. This decision is rooted in the research-backed understanding of market dynamics.

Product or Service Adjustments: Aligning with Market Needs

Market research often reveals opportunities for product or service adjustments. Whether it’s introducing new features, optimizing existing offerings, or addressing unmet needs, these adjustments are vital for staying relevant.

Example: Tech Product Iterations

A technology company, after conducting user feedback surveys and analyzing market trends, might release software updates to address user pain points and enhance overall user experience.

Marketing and Communication Strategies: Targeted Outreach

Market research shapes marketing and communication strategies by providing insights into consumer preferences, effective channels, and messaging that resonates. This ensures that promotional efforts are finely tuned for maximum impact.

Example: Strategic Marketing Campaigns

A beverage company, having identified through market research that its target audience values sustainability, may launch a marketing campaign emphasizing eco-friendly packaging.

This not only aligns with consumer values but also differentiates the brand in a crowded market.

Measuring and Adapting: The Continuous Cycle

Implementing changes based on research is an iterative process that requires continuous measurement and adaptation. Key Performance Indicators (KPIs) and metrics are essential for gauging the success of implemented strategies.

Example: E-commerce Conversion Rates as a KPI

An online retailer, after implementing changes informed by market research, might track e-commerce conversion rates to measure the effectiveness of the adjustments. This data guides further adaptations for optimal performance.

8. Monitoring and Adapting

In the ever-evolving landscape of business, the journey doesn’t end with implementing changes based on research; it extends into the realm of continuous monitoring and adaptation.

This section explores the significance of this iterative process, shedding light on how businesses can stay agile and responsive to dynamic market forces.

Continuous Monitoring: Staying Ahead of the Curve

Continuous monitoring involves the real-time tracking of key performance indicators (KPIs), market trends, and consumer behaviours. It is the compass that guides businesses through the ever-shifting currents of the market.

Example: Real-Time Analytics in E-commerce

An e-commerce platform employing real-time analytics can monitor website traffic, conversion rates, and customer interactions. This allows for the swift identification of emerging trends and the timely adjustment of strategies.

Key Performance Indicators (KPIs): Metrics for Success

KPIs serve as benchmarks for evaluating the success of implemented strategies. From sales figures to customer satisfaction scores, businesses must define and track KPIs that align with their goals.

Example: Customer Retention Rate

A subscription-based service may monitor its customer retention rate as a KPI.

If the rate declines, it signals potential issues, prompting a closer examination of the service and possible adjustments.

A study showed that increasing customer retention rates by just 5% can boost profits by 25-95% , as cited by Help Scout.

Adapting to Market Changes: Agility in Action

Market dynamics are in constant flux, necessitating an agile approach to business strategies.

Adapting to changes requires a proactive mindset, informed by ongoing research and a willingness to adjust course.

Example: Responsive Social Media Engagement

A company, monitoring social media sentiment through listening tools, may detect a shift in consumer perceptions.

Swift adaptation, such as altering marketing messaging or addressing concerns, showcases responsiveness.

Benchmarking Against Competitors: Staying Competitive

Benchmarking involves comparing key metrics against industry peers to gauge performance. Regular assessments against competitors provide insights into relative strengths and areas for improvement.

Example: Competitive Pricing Benchmarking

A retail brand may routinely benchmark its pricing against competitors to ensure competitiveness. Adjustments based on this benchmarking can be crucial for maintaining market share.

Customer Feedback Loops: A Continuous Dialogue

Establishing customer feedback loops ensures an ongoing dialogue with the audience. Listening to customer insights provides valuable information for refinement and adaptation.

Example: Feedback Integration in Software Development

A software company incorporating customer feedback loops during beta testing can identify bugs, usability issues, and feature requests. This iterative feedback process leads to a refined, customer-centric product.

In a study, 86% of customers are willing to pay more for a better customer experience .

9. Tips for Effective Market Research

Embarking on a journey of effective market research requires more than just the right tools—it demands a strategic mindset and a nuanced approach.

This section unveils a compendium of tips to enhance the effectiveness of your market research endeavours, drawing insights from industry best practices and real-world examples.

Stay Updated on Industry Trends: The Pulse of Innovation

Staying abreast of industry trends is not merely a suggestion but a strategic imperative. In a landscape where change is constant, businesses that anticipate and adapt to trends position themselves as industry leaders.

Example: Tech Companies Anticipating Trends

Leading technology companies routinely invest in research and development to anticipate emerging trends. For instance, the integration of artificial intelligence into consumer electronics aligns with the trend towards smart, interconnected devices.

Incorporate Customer Feedback: A Goldmine of Insights

Customers are the heartbeat of any business, and their feedback serves as a treasure trove of insights. Actively seeking and incorporating customer feedback fosters a customer-centric approach and helps in refining products and services.

Example: Iterative Product Development

Companies like Apple regularly solicit customer feedback through surveys and user forums . This iterative feedback loop contributes to the refinement of software updates and the development of new features in their products.

Collaborate with Cross-Functional Teams: Holistic Insights

Effective market research isn’t confined to a single department—it’s a collaborative effort that benefits from the diverse perspectives of cross-functional teams. Collaboration ensures a comprehensive understanding of market dynamics.

Research by McKinsey highlights that companies with diverse executive teams are more likely to outperform their peers in profitability .

Example: Product Launch Strategy

When launching a new product, cross-functional collaboration is vital. Marketing teams bring consumer insights, R&D teams provide technical perspectives, and sales teams contribute market feedback. This synergy ensures a well-rounded product launch strategy.

Utilize Advanced Analytics: From Data to Actionable Insights

In the era of big data, leveraging advanced analytics tools is non-negotiable. These tools transform raw data into actionable insights, unveiling patterns and correlations that might otherwise remain hidden.

Example: Predictive Analytics in Retail

Retailers leverage predictive analytics to forecast demand, optimize inventory, and personalize marketing strategies. For instance, Amazon’s recommendation engine utilizes predictive analytics to suggest products based on customer browsing and purchase history.

Regularly Revisit and Refine Research Objectives: Agile Adaptation

Market dynamics are fluid, and research objectives must evolve in tandem. Regularly revisiting and refining research objectives ensures that the research remains aligned with shifting business priorities and market trends.

Example: Quarterly Objectives Review

A consumer goods company may conduct quarterly reviews of research objectives, considering changes in consumer behaviour, market trends, and competitive landscapes. This iterative approach ensures research remains relevant and impactful.

10. Additional Resources

Navigating the vast landscape of market research requires a diverse toolkit and a wealth of knowledge.

This section unveils a curated selection of additional resources—ranging from industry reports to online courses—designed to empower businesses and individuals in their pursuit of comprehensive market insights.

Industry Reports and Publications: In-Depth Insights at Your Fingertips

• Statista : Statista provides comprehensive industry reports, infographics, and statistical insights. From global market trends to consumer behaviour, this platform offers a wealth of information. Statista boasts over 1.9 million statistics covering more than 80,000 topics .
• MarketResearch.com : A comprehensive repository of market research reports spanning various industries. Whether seeking insights on emerging technologies or global market trends, MarketResearch.com provides a rich collection of reports.

Online Courses and Training Programs: Sharpening Research Skills

• Coursera – Market Research and Consumer Behavior : This online course, offered by the Wharton School of the University of Pennsylvania, delves into the fundamentals of market research and consumer behaviour. With video lectures and interactive assignments, it provides a structured learning experience. Coursera, as of 2022, boasts over 100 million learners worldwide .
• LinkedIn Learning – Market Research Foundations : This course, available on the LinkedIn Learning platform, provides a practical guide to market research essentials. From defining research objectives to analyzing data, it equips learners with actionable skills. LinkedIn, the parent company of LinkedIn Learning, has over 774 million members as of 2022 .

Professional Organizations: Networking and Insights Exchange

• American Marketing Association (AMA) : The AMA serves as a hub for marketers and researchers. Membership provides access to research publications, industry events, and a network of professionals, fostering continuous learning. The AMA has over 30,000 marketing professionals and academics globally .
• Insights Association : The Insights Association offers resources, events, and a community for professionals in the insights and data analytics space.

Blogs and Online Communities: Real-World Insights Sharing

• GreenBook Blog : GreenBook is a leading market research blog covering industry trends, innovations, and thought leadership. It’s a go-to resource for staying updated on the dynamic landscape of market research. The GreenBook Blog features articles, interviews, and insights from industry experts, creating a repository of valuable content.
• Quirks.com : Quirks is an online platform offering articles, case studies, and insights on market research and consumer behavior. It provides a space for professionals to share their experiences and learn from one another. Quirks.com hosts webinars, conferences, and forums, fostering engagement and knowledge exchange within the market research community.

Government and Nonprofit Resources: Reliable Data Repositories

• U.S. Census Bureau – Economic Census : The U.S. Census Bureau provides a wealth of economic data through the Economic Census. It offers insights into industries, businesses, and the overall economic landscape. The Economic Census collects data on the U.S. economy from over 7 million businesses in order to cover nearly all of the nation’s business sector establishments and provides detailed industry-level data.
• World Bank – Data : The World Bank’s data repository offers a global perspective, providing access to a wide range of economic, social, and environmental data. It’s a valuable resource for understanding global market trends. The World Bank serves 189 member countries , providing a comprehensive view of global economic indicators.

As we conclude this expedition into the realm of effective market research, it’s essential to reflect on the transformative power that meticulous research holds for businesses.

The journey we’ve undertaken, step by step, through the intricate process of market research, unveils a roadmap to informed decision-making, strategic planning, and sustained success.

The Tapestry of Insights Woven

Effective market research is not a mere checklist; it’s a dynamic tapestry woven from diverse threads of data, insights, and strategic acumen.

From understanding the basics of market research to implementing adaptive strategies, each phase is a brushstroke contributing to the masterpiece of market intelligence.

Realizing the Potential of Understanding

The foundational step, understanding the basics of market research, lays the groundwork for all subsequent endeavours. It’s the compass that ensures businesses traverse the right paths, avoiding pitfalls and navigating toward success.

By discerning market trends, consumer behaviour, and competitive landscapes, organizations position themselves to make informed decisions.

Identifying the Audience: Precision in Targeting

Defining the target audience isn’t just a box to check; it’s the key to unlocking resonance.

Through demographic insights, psychographic nuances, and a profound understanding of consumer personas, businesses tailor their offerings and messages. The result? An audience that feels seen, heard, and inclined to engage.

Data-Driven Narratives: The Power of Stories

Conducting competitor analysis adds layers to the narrative, transforming it from a solo performance to a dynamic dialogue.

By deciphering competitor strengths, weaknesses, and strategies, businesses craft their own storylines, positioning themselves as protagonists in the market saga.

Choosing Wisely: The Art of Method Selection

The selection of research methods is akin to choosing the right colours for a painting.

Surveys and questionnaires capture broad strokes, while interviews and focus groups delve into intricate details. Like an artist with a palette, businesses choose their methods judiciously, ensuring a harmonious blend that brings their market picture to life.

Data, the Artist’s Palette: Vibrant and Varied

Collecting and analyzing data is the act of infusing life into the canvas.

Whether through surveys, observational research, or advanced analytics, data is the palette from which businesses draw the hues of insights. It’s the key to uncovering patterns, trends, and the ever-elusive “why” behind consumer behaviours.

Interpreting Insights: The Conductor’s Baton

As the conductor interprets the music, businesses interpret their research findings.

This phase is where raw data transforms into actionable intelligence. Drawing conclusions, making informed decisions, and addressing biases—these are the nuances that define the symphony of success.

Visualizing the Symphony: Tools for Clarity

Visualization tools are the conductor’s baton, transforming complex data into a harmonious performance. Whether through charts, graphs, or interactive dashboards, these tools enhance the clarity and communicative power of research findings.

Strategic Implementation: The Grand Performance

Implementing changes based on research is the grand performance—the culmination of meticulous preparation.

Strategic planning, product adjustments, and targeted marketing campaigns are the acts that resonate with the audience. The stage is set for businesses to shine in the spotlight of success.

Continuous Refinement: The Encore

Yet, the journey doesn’t end with applause; it continues with monitoring and adaptation. Continuous refinement ensures that businesses don’t rest on past laurels but evolve with the changing cadence of the market.

Key performance indicators, customer feedback, and benchmarking become the instruments for an encore performance.

Resources for Ongoing Excellence: The Library of Wisdom

As businesses navigate this dynamic landscape, additional resources emerge as companions in the journey.

Industry reports, online courses, professional organizations, blogs, and government repositories form a library of wisdom. Accessible and diverse, these resources empower businesses to stay informed, agile, and ever-ready for the next chapter.

The Culmination: A Symphony of Success

In conclusion, effective market research is not a one-time event—it’s a continuous symphony.

It requires a conductor’s finesse, an artist’s creativity, and a scholar’s curiosity. From understanding the basics to embracing ongoing learning, businesses that immerse themselves in this journey unlock the gates to sustained success.

In this grand symphony of effective market research, businesses find not just notes but the harmonies that lead to enduring success. As the journey continues, may businesses navigate the dynamic score with finesse, creativity, and an unwavering commitment to excellence.

If you are looking for a top-class digital marketer, then book a free consultation slot  here .

If you find this article useful, why not share it with your friends and business partners, and also leave a nice comment below?

We, at the AppLabx Research Team, strive to bring the latest and most meaningful data, guides, and statistics to your doorstep.

To get access to top-quality guides, click over to the  AppLabx Blog.

People also ask

What are the 4 types of market research.

The four types of market research are:

• Exploratory Research: Uncover initial insights.
• Descriptive Research: Analyze and quantify data.
• Causal Research: Explore cause-and-effect relationships.
• Predictive Research: Forecast future trends based on data patterns.

What are the 4 pillars of market research?

The 4 pillars of market research are:

• Defining the Problem: Clearly outline research objectives.
• Designing the Research: Plan methods and strategies.
• Data Collection: Gather relevant information.
• Data Analysis and Interpretation: Transform data into actionable insights for informed decision-making.

What software is used for market research?

Various software tools enhance market research processes, including:

• SurveyMonkey: For creating and conducting surveys.
• Google Analytics: Analyzing website traffic.
• SPSS: Statistical analysis of data.
• Tableau: Data visualization for insights.
• HubSpot: Customer relationship management and marketing analytics.

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What Is Market Analysis and How To Do One For Your...

Conducting Market Research 101: A Step by Step Guide

What is market research? Market research is the process of […]

Published on

What is market research?

What is the importance of market research, who needs to conduct market research, types of market research: primary vs secondary, how to conduct a simple market research, market research tools available to businesses.

Market research is the process of gathering, analyzing, and interpreting information about a market, product, service, or industry. It’s an essential tool for businesses of all sizes, as it helps them to understand their target market, identify opportunities, and make informed decisions.

A typical market research report could cover the targeted business’ market size, potential growth, latest market trends, consumer analysis, TAM, SWOT analysis , and competitors’ analysis.

If you’re interested in gaining deeper insights into the dynamics of the restaurant world, explore our SWOT Analysis for Restaurant 2023 guide

There are several reasons why market research is important for businesses:

• Identifying target market : Market research helps businesses to understand who their target market is, what their needs and preferences are, and how to best reach them.
• Identifying opportunities : Market research can help businesses to identify new opportunities, such as untapped markets or emerging trends.
• Competitive analysis : Market research can help businesses to understand their competition and identify areas where they can differentiate themselves.
• Product development : Market research can help businesses to develop and improve their products and services by understanding customer needs and preferences.
• Marketing strategy : Market research can help businesses to develop effective marketing strategies by understanding what messages resonate with their target market and how to best reach them.
• Measuring effectiveness : Market research can help businesses to measure the effectiveness of their marketing and sales efforts and make adjustments as needed.

In short, market research is an essential tool for businesses of all sizes, as it helps them to make data-driven decisions and stay competitive in their industry.

A market analysis is essential for businesses of all sizes and industries, as it helps them make data-driven decisions and stay competitive in their market. Some examples of organizations that need to conduct market research include:

• Small businesses : Small businesses often conduct market research to identify new opportunities and understand their target market.
• Large corporations: Large corporations conduct market research to understand consumer trends, identify new markets, and develop new products and services.
• Non-profit organizations: Non-profit organizations conduct market research to understand their target audience, develop effective fundraising campaigns, and measure the impact of their programs.
• Government agencies: Government agencies conduct market research to understand public opinion, identify social issues, and evaluate the effectiveness of public policies.
• Start-ups : Start-ups conduct market research to validate their business idea, and identify potential customers and competition.
• Entrepreneurs: Entrepreneurs conduct market research to identify new business opportunities, understand the target market, and develop a marketing strategy.
• Researchers : Researchers conduct market research to explore new ideas, test hypotheses, and validate their findings.
• Consultants : Consultants conduct market research to provide valuable insights for their clients, identify new opportunities, and recommend strategies.

In short, market research is essential for anyone who wants to make data-driven decisions, stay competitive in their market, or validate an idea or a hypothesis.

Primary research is a research method that involves collecting original data directly from the source. This type of research is often used to gather the information that is specific to a particular research question or target audience. Examples of primary research methods include:

• Surveys : Surveys are a popular method of primary research that involves asking a large number of people a set of standardized questions. For example, a clothing retailer might conduct a survey to understand consumer preferences for different types of clothing.
• Interviews : Interviews are another popular method of primary research that involve one-on-one conversations between a researcher and a participant. For example, a car manufacturer might conduct interviews with potential customers to understand their preferences for different features in a car.
• Focus groups : Focus groups are a method of primary research that involve a small group of people discussing a particular topic or product. For example, a food manufacturer might conduct focus groups to understand consumer preferences for different types of packaging.
• Experiments : Experiments are a method of primary research that allows you to test a hypothesis by manipulating an independent variable and observing the effect on a dependent variable. For example, an e-commerce website might conduct an A/B test to compare the conversion rate of two different website layouts.

Secondary research is a research method that uses existing data that has already been collected by someone else. This type of research is often used to gather information that is more general or broad in scope. Examples of secondary research methods include:

• Literature review : A literature review is a method of secondary research that involves reading and summarizing existing studies on a particular topic. For example, a researcher might conduct a literature review to understand the current state of knowledge on a particular subject.
• Government statistics : Government statistics are a common source of secondary data, and can be used to gather information on a wide range of topics, such as population demographics, economic indicators, and crime rates.
• Industry reports : Industry reports are another common source of secondary data, and can be used to gather information on specific industries or market segments. For example, a market research firm might use industry reports to understand the size and growth of a particular market.
• Press releases : Press releases are a method of secondary research that can be used to gather information on company news and announcements. For example, a researcher might use press releases to understand the product launch plans of a particular company.

In general, primary research is more specific but may be more expensive and time-consuming. Secondary research is more general and often less expensive, but may not be as specific to a particular research question or target audience.

Step 1: Define your research objectives

Before you begin conducting market research, it’s important to define your research objectives. These objectives should be specific, measurable, and time-bound, and should align with your overall business goals. For example, your research objectives may include understanding consumer behavior, identifying market trends, or evaluating the effectiveness of your current marketing strategy.

Step 2: Determine your research method

Once you have defined your research objectives, you’ll need to determine the best research method to use. There are two main types of market research: primary research and secondary research.

Primary research is conducted by collecting data directly from the source, such as through surveys, focus groups, or interviews. This method allows you to gather information that is specific to your research objectives and to get a deeper understanding of your target market.

Secondary research, on the other hand, involves collecting data that has already been collected by others, such as industry reports, government statistics, and online data. This method is useful for gathering general information about your industry and market and can be a more cost-effective option.

Step 3: Design your research plan

Once you have determined your research method, you’ll need to design a research plan that outlines the steps you’ll take to conduct your research. Your research plan should include the following:

• A description of your research method and why it’s the best option for your research objectives
• A list of the specific research questions you’ll be answering
• A list of the data sources you’ll be using
• A timeline for the research
• A budget for the research

Step 4: Collect your data

With your research plan in place, you’re ready to begin collecting data. Depending on your research method, this may involve conducting surveys, focus groups, interviews, or collecting data from industry reports and other sources.

It’s important to ensure that the data you collect is accurate and reliable and to use a variety of methods to collect data, if possible. For example, if you’re conducting a survey, it’s a good idea to use both online and offline methods to reach a wider audience.

Step 5: Analyze your data

Once you have collected your data, you’ll need to analyze it to extract meaningful insights. This can be a complex process, but there are several tools and techniques you can use to make it easier.

Some of the most common methods of data analysis include statistical analysis, content analysis, and thematic analysis. It’s important to choose the right method for your research objectives and the type of data you’ve collected.

Step 6: Communicate your findings

Finally, it’s important to communicate your findings to the relevant stakeholders in your business. Your findings should be presented in a clear and concise manner and should include both quantitative and qualitative data.

In addition to providing a written report, it’s also a good idea to present your findings in a visual format, such as a graph or chart, to make it easier for stakeholders to understand.

There are many market research tools available to businesses, but some of the most popular and widely used include:

• Online analytics tools : Many businesses use online analytics tools to track website traffic, user behavior, and other data. Some popular tools include Google Analytics, Adobe Analytics, and Piwik.
• Social media listening tools : Social media listening tools allow businesses to track and analyze conversations on social media platforms. Some popular tools include Hootsuite, Brand24 , and Buzzsumo .
• A/B testing : A/B testing is a method of comparing two versions of a product or marketing campaign to see which one performs better. It can be used to test website layouts, headlines, and other elements.

These are just a few examples of the many market research tools available. The best tool will depend on the specific research objectives and target audience.

In conclusion, conducting market research is an essential step in understanding your target market and making informed decisions for your business. By following a step-by-step guide, you can ensure that you gather the information you need to make data-driven decisions.

About the Author: Loaloa Riad

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BUSINESS STRATEGIES

How to do market research in 5 simple steps

• Jennifer Kaplan
• Dec 23, 2019

Whether you’re looking to start a business or already went as far as creating your website and other promotional assets, marketing is a priority for you. That is, if you want to gain new and keep existing customers.

You may need to create a fresh marketing plan or adapt yours to meet the needs of today’s shoppers, since these are constantly changing. In order to do this, your first step will be to conduct market research.

In this article, we’ll explain what this term means, the difference between primary and secondary research, and how to do market research of your own in five simple steps.

What is market research?

Market research is the process of gathering information about your target market to determine the key to your business’s success amongst this crowd. It involves understanding the behavior of consumers, such as knowing where and how they are shopping, what factors influence their choices, and why they do or don’t buy your products and services. This data will allow you to best serve your specific audience.

Through market research you’ll also be able to learn about your industry, such as spotting top trends, examining the market size, and getting to know your competition.

By the end of this research process, you’ll be able to draw conclusions about your market and get super clear on your business’s value.

Primary vs. secondary market research

There are two main types of research that all of the different methods fall into. Understanding a bit about them will allow you to decide which one, if not parts of both, best suits your market research needs.

Primary research

In simple terms, primary research is the direct study of customers. It’s the firsthand information on your market. Methods of research include things like focus groups, interviews, and surveys.

This strategy is mostly useful for establishing your buyer personas and defining your target market , which we’ll dive into more below.

When conducting this kind of market research, you can do either exploratory open-ended conversations, or come prepared with specific questions you want to discuss. You can decide which approach best suits you based on your needs.

Secondary research

Secondary research is mainly comprised of information that outside sources have gathered, but it’s not limited to just this. It includes all the data and records available, such as trend reports, market stats, and industry-related content.

To access this outside information, you can turn to public sources and commercial research agencies, including places like the U.S. Census Bureau, Bureau of Labor & Statistics, trade and professional magazines, and even libraries.

Internal sources are also reliable and useful. Look into sales reports to spot trends from the past. Also turn to digital marketing statistics, such as your website and social media account’s stats.

How to do market research

Following these five steps on how to do market research will allow your business to grow to new heights by being able to reach your customers more strategically:

Define your buyer personas and target market

Engage with your audience

Determine the best methods to meet their needs

Research your primary competitors

Draw conclusions from your findings

01. Define your buyer personas and target market

The very first thing you should ask yourself is ‘who are my customers?’ If you can’t answer this question, you can’t even begin to interpret their behaviors. This is where buyer personas come into play. Defining your own starts with creating a fictional representation of your ideal customers. Answer questions such as, ‘how old are they? ‘ ‘where are they located?’ ‘What kinds of jobs and hobbies do they have?’ You get the point, the more specific, the better the results will be. Likewise, it’s okay to have multiple buyer personas too - just make sure to specifically define each of them.

Through your buyer personas, you’ll be able to discover your target audience. Your target audience is the real market you’re reaching. There is a specific audience size and available data you can find through both primary and secondary research on these people. As we’ll discuss more below, you can directly reach out to these people to engage with them and understand their buying preferences.

02. Engage with your audience

Now that you’ve defined your target market, it’s time to pull a sample and pick their brain. Through primary research methods like focus groups, online surveys, user interviews and personal interviews, you’ll be able to get common opinions about your products and services. If you’re still in the process of starting your business, reach out to people that fit the common buyer personas you want to have as future customers.

In order to find your sample, there are many different paths you can take. Ideally you’ll want to choose customers who purchased from you recently, as they’ll have a good memory of their experience. Also, people that almost purchased from you but didn’t in the end, such as abandoned cart shoppers. Other methods include turning to your social media accounts and asking coworkers and their friends. In all, you want to get a large variety of people. The more, the merrier.

While conducting your research, have your goals in mind. Getting to that goal involves having planned questions or conversation topics. For example, you can ask your participants ‘how much are you willing to pay for our products/services?’ ‘do you prefer to purchase online or in person?’ and ‘how will you respond to the new product or service we are launching?’ At the end of your survey, make sure to reward your participants for giving you their valuable time. Offer compensation in the form of money, gifts, food, or something else.

03. Determine the best methods to meet their needs

This step is pretty straightforward. Now that you have an understanding of your audience and have asked their opinions on your offerings, turn inward to yourself or your marketing geniuses at your company to determine the best methods to meet their needs. The practice of shaping your marketing efforts to fit your audience's needs is powerful for drawing customers toward your brand, and it lies at the core of an important practice called inbound marketing.

An important thing to consider is your product branding, as the look and personality surrounding your brand will certainly determine your success. Likewise, promotional efforts including social media marketing and email campaigns have big impacts on your selling rate. Although there are tons of advertisement spaces online and offline, you’ll learn based off of your audience, as well as trial and error, which ones work best for your business.

04. Research your primary competitors

This begins by classifying your business into one or multiple identifiable industries. Having your industry(s) in mind will allow you to determine who your competitors are. This is because you can download marketing reports for specific industries that list out this key information. Besides market reports, you can also turn to search engines like Google and social media channels like LinkedIn to search for industries and related companies. Note that the more specific you are about your niche market in the industry (step number one above), the more fluid it will be for you to spot your competition.

Once you have your competitors in mind, the next step is to perform a SWOT analysis on them. A SWOT analysis is where you’ll write out the strengths, weaknesses, opportunities, and threats of each of these businesses. Make sure to address the prices of their offerings, the display of their products and services, and other specific information about their marketing efforts.

After reviewing your customers in depth, you will be able to address how your business can compete with other companies in the field, what advantages you have in the industry, and what trends you should hop onboard with.

05. Draw conclusions from your findings

So you have tons of data at this point regarding your target market, their buying and decision-making processes, how you plan to reach them, and who your top competitors in your relevant industry are. The last thing you need to do is pull all of these findings together into a formal report.

Most of the time, this marketing report is part of a company’s business plan . That’s the case if you’re just starting out though. If you’ve been established for awhile or are using this information for one particular experiment, you can create an individual marketing research report. For both cases, you should lay out your background information, the purpose behind creating the report, and a summary of your findings for the four previous parts. Finally, end your report with strategic action items to meet your goals.

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Table of Contents

A market analysis is a thorough assessment of a market within a specific industry. These analyses have many benefits, such as reducing risk for your business and better informing your business decisions. A market analysis can be a time-intensive process, but it is straightforward and easy to do on your own in seven steps.

To perform a market analysis for your business, follow the steps outlined in this guide.

What does a market analysis include?

In a market analysis, you will study the dynamics of your market, such as volume and value, potential customer segments , buying patterns, competition, and other important factors. A thorough marketing analysis should answer the following questions:

• Who are my potential customers?
• What are my customers’ buying habits?
• How large is my target market ?
• How much are customers willing to pay for my product?
• Who are my main competitors?
• What are my competitors’ strengths and weaknesses ?

What are the benefits of running a marketing analysis?

A marketing analysis can reduce risk, identify emerging trends, and help project revenue. You can use a marketing analysis at several stages of your business, and it can even be beneficial to conduct one every year to keep up to date with any major changes in the market.

A detailed market analysis will usually be part of your business plan , since it gives you a greater understanding of your audience and competition. This will help you build a more targeted marketing strategy.

These are some other major benefits of conducting a market analysis:

• Risk reduction: Knowing your market can reduce risks in your business, since you’ll have an understanding of major market trends, the main players in your industry, and what it takes to be successful, all of which will inform your business decisions. To help you further protect your business, you can also conduct a SWOT analysis , which identifies the strengths, weaknesses, opportunities and threats for your business.
• Targeted products or services: You are in a much better position to serve your customers when you have a firm grasp on what they are looking for from you. When you know who your customers are, you can use that information to tailor your business’s offerings to your customers’ needs.
• Emerging trends: Staying ahead in business is often about being the first to spot a new opportunity or trend, and using a marketing analysis to stay on top of industry trends is a great way to position yourself to take advantage of this information.
• Revenue projections: A market forecast is a key component of most marketing analyses, as it projects the future numbers, characteristics and trends in your target market. This gives you an idea of the profits you can expect, allowing you to adjust your business plan and budget accordingly.
• Evaluation benchmarks: It can be difficult to gauge your business’s success outside of pure numbers. A market analysis provides benchmarks or key performance indicators (KPIs) against which you can judge your company and how well you are doing compared to others in your industry.
• Context for past mistakes: Marketing analytics can explain your business’s past mistakes or industry anomalies. For example, in-depth analytics can explain what impacted the sale of a specific product, or why a certain metric performed the way it did. This can help you avoid making those mistakes again or experiencing similar anomalies, because you’ll be able to analyze and describe what went wrong and why.
• Marketing optimization: This is where an annual marketing analysis comes in handy – regular analysis can inform your ongoing marketing efforts and show you which aspects of your marketing need work, and which are performing well in comparison to the other companies in your industry.

What are the drawbacks of running a marketing analysis?

The below drawbacks of running a market analysis pertain less to the method itself than the resources it requires.

• Market analysis can be expensive. If you’re not as familiar with marketing concepts such as market volume and customer segmentation, you might want to outsource your market analysis. Doing so can be great for your analysis’s quality, but it can also leave a big dent in your budget. Narrow your market analysis to a certain group – perhaps current customers – to lower your costs.
• Market analysis can be time-consuming. Market analysis can take precious time away from more directly business-related tasks. You can analyze one area at a time – say, buying patterns or competition – to free up your day-to-day schedule.
• Market analysis can require extra staff. Some larger companies retain in-house market analysis staff, and you can follow their lead. Doing so, though, comes with all the usual costs of hiring a new employee . The question then becomes: Do you conduct your market analysis yourself, outsource it, or hire in-house? The more expensive options can often yield more meaningful insights.
• Market analysis can be narrow. The most successful market analyses use actual customer feedback, which analysts often get through customer surveys. These surveys may reach only a portion of your entire customer base, leading to an inaccurate sample size. The result is that market analysis may not fully detail your customers and what you should know about them.

Market analysis vs. conjoint analysis vs. sentiment analysis

Where market analysis is broad and comprehensive, conjoint analysis focuses on how customers value what you offer. Surveys are often the backbone of conjoint analysis – they’re a great way for customers to share what drives their purchases. Product testing is an especially common application of conjoint analysis. This method can yield insights into pricing and product features and configurations.

Sentiment analysis goes beyond number-driven market and conjoint analysis to identify how customers qualitatively feel about your offerings. It can show you what customers are happy and unhappy about with your offerings or buying process. You can also wade into deeper emotional territory such as anger, urgency and intention, or you can dig up descriptive feedback. It’s a great tool to use alongside market analysis, whereas conjoint analysis is all but included in market analysis.

How to conduct a market analysis

While conducting a marketing analysis is not a complicated process, it does take a lot of dedicated research, so be prepared to devote significant time to the process.

These are the seven steps of conducting a market analysis:

1. Determine your purpose.

There are many reasons you may be conducting a market analysis, such as to gauge your competition or to understand a new market. Whatever your reason, it’s important to define it right away to keep you on track throughout the process. Start by deciding whether your purpose is internal – like improving your cash flow or business operations – or external, like seeking a business loan. Your purpose will dictate the type and amount of research you will do.

2. Research the state of the industry.

Map a detailed outline of the current state of your industry. Include where the industry seems to be heading, using metrics such as size, trends and projected growth, with plenty of data to support your findings. You can also conduct a comparative market analysis to help you find your competitive advantage within your specific market.

3. Identify your target customer.

Not everyone in the world will be your customer , and it would be a waste of your time to try to get everyone interested in your product. Instead, use a target market analysis to decide who is most likely to want your product and focus your efforts there. You want to understand your market size, who your customers are, where they come from, and what might influence their buying decisions. To do so, look at demographic factors like these:

During your research, you might consider creating a customer profile or persona that reflects your ideal customer to serve as a model for your marketing efforts.

4. Understand your competition.

To be successful, you need a good understanding of your competitors, including their market saturation, what they do differently than you, and their strengths, weaknesses and advantages in the market. Start by listing all your main competitors, then go through that list and conduct a SWOT analysis of each competitor. What does that business have that you don’t? What would lead a customer to choose that business over yours? Put yourself in the customer’s shoes.

Then, rank your list of competitors from most to least threatening, and decide on a timeline to conduct regular SWOT analyses on your most threatening competitors.

5. Gather additional data.

When conducting marketing analyses, information is your friend – you can never have too much data. It is important that the data you use is credible and factual, so be cautious of where you get your numbers. These are some reputable business data resources:

• U.S. Bureau of Labor Statistics
• U.S. Census Bureau
• State and local commerce sites
• Trade journals
• Your own SWOT analyses
• Market surveys or questionnaires

6. Analyze your data.

After you collect all the information you can and verify that it is accurate, you need to analyze the data to make it useful to you. Organize your research into sections that make sense to you, but try to include ones for your purpose, target market and competition.

These are the main elements your research should include:

• An overview of your industry’s size and growth rate
• Your business’s projected market share percentage
• An industry outlook
• Customer buying trends
• Your forecasted growth
• How much customers are willing to pay for your product or service

7. Put your analysis to work.

Once you’ve created a market analysis, it’s time to actually make it work for you. Internally, look for where you can use your research and findings to improve your business. Have you seen other businesses doing things that you’d like to implement in your own organization? Are there ways to make your marketing strategies more effective?

If you conducted your analysis for external purposes, organize your research and data into an easily readable and digestible document to make it easier to share with lenders.

Retain all of your information and research for your next analysis, and consider making a calendar reminder each year so that you stay on top of your market.

Making market analysis easy

If you have the time to conduct a market analysis yourself, go for it – this guide will help. If you don’t have the time, hiring an in-house expert or outsourcing your analysis is often worth the cost. Your analysis will help you figure out who to target and how – and that’s a huge part of business success.

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How to Create a Social Media Marketing Strategy in 9 Easy Steps [Free Template]

Creating your social media marketing strategy doesn’t need to be painful. Create an effective plan for your business in 9 simple steps.

A social media marketing strategy is a summary of everything you plan to do and hope to achieve on social media. It guides your actions and lets you know whether you’re succeeding or failing.

The more specific your plan is, the more effective it will be. Keep it concise. Don’t make it so lofty and broad that it’s unattainable or impossible to measure.

In this post, we’ll walk you through a nine-step plan to create a winning social media strategy of your own. We’ve even got expert insights from Amanda Wood, Hootsuite’s Senior Manager of Social Marketing.

How to create a social media strategy:

Bonus: Get a free social media strategy template   to quickly and easily plan your own strategy. Also use it to track results and present the plan to your boss, teammates, and clients.

What is a social media marketing strategy?

A social media strategy is a document outlining your social media goals, the tactics you will use to achieve them and the metrics you will track to measure your progress.

Your social media marketing strategy should also list all of your existing and planned social media accounts along with goals specific to each platform you’re active on. These goals should align with your business’s larger digital marketing strategy.

Finally, a good social media plan should define the roles and responsibilities within your team and outline your reporting cadence.

Create. Schedule. Publish. Engage. Measure. Win.

Creating your own social media marketing strategy (video guide)

No time to read the whole article? Let Amanda, Hootsuite’s own Senior Manager of Social Media Marketing, guide you through our free social media marketing strategy template in less than 10 minutes:

How to create a social media marketing strategy in 9 steps

Step 1. choose goals that align to business objectives, set s.m.a.r.t. goals.

The first step to creating a winning social media strategy is to establish clear objectives and goals. Without goals, you have no way to measure success and return on investment (ROI) .

Each of your social media marketing goals should be SMART : s pecific, m easurable, a ttainable, r elevant and t ime-bound.

Psst: Need help getting started? We’ve got social strategy guides for small businesses , financial services , government , higher education , healthcare , real estate , law firms , and non-profits .

Oh, and if you need examples of smart social media goals , we’ve got you covered there too.

Once you’ve decided on your goals, track them in a social media strategy doc — grab our free template if you don’t have one already.

Track meaningful metrics

Vanity metrics like number of followers and likes are easy to track, but it’s hard to prove their real value. Instead, focus on things like engagement, click-through, and conversion rates.

For inspiration, take a look at these 19 essential social media metrics .

You may want to track different goals for different social media networks, or even different uses for each network.

For example, if you use LinkedIn to drive traffic to your website, you would measure click-throughs. If Instagram is for brand awareness, you might track the number of Instagram Story views. And if you advertise on Facebook, cost-per-click (CPC) is a common success metric.

Social media goals should align with your overall marketing objectives. This makes it easier to show the value of your work and secure buy-in from your boss.

Start developing a successful social media marketing plan by writing down at least three goals for social media.

“ It’s easy to get overwhelmed by deciding what to post and which metrics to track, but you need to focus on what you want to get out of social media to begin with,” says Amanda Wood, Hootsuite’s Senior Manager of Social Marketing. “Don’t just start posting and tracking everything: match your goals to your business, and your metrics to your goals.”

Step 2. Learn everything you can about your audience

Get to know your fans, followers, and customers as real people with real wants and needs, and you will know how to target and engage them on social media.

When it comes to your ideal customer, you should know things like:

• Average income
• Typical job title or industry

Here’s a simple guide and template for creating audience/buyer personas .

Don’t forget to document this information in your strategy doc!

Social media analytics can also provide a ton of valuable information about who your followers are, where they live, and how they interact with your brand on social media. These insights allow you to refine your strategy and better target your audience.

Jugnoo, an Uber-like service for auto-rickshaws in India, used Facebook Analytics to learn that 90% of their users who referred other customers were between 18- and 34-years-old, and 65% of that group was using Android. They used that information to target their ads, resulting in a 40% lower cost per referral.

Check out our guide to using social media analytics and the tools you need to track them .

Step 3. Get to know your competition

Odds are your competitors are already using social media, and that means you can learn from what they’re doing.

Conduct a competitive analysis

A competitive analysis allows you to understand who the competition is and what they’re doing well (and not so well). You’ll get a good sense of what’s expected in your industry, which will help you set social media targets of your own.

It will also help you spot opportunities and weaknesses you can document in your social strategy doc.

Maybe one of your competitors is dominant on Facebook, for example, but has put little effort into X (Twitter) or Instagram. You might want to focus on the social media platforms where your audience is underserved, rather than trying to win fans away from a dominant player.

Use social media listening

Social listening is another way to keep an eye on your competitors.

Do searches of the competition’s company name, account handles, and other relevant keywords on social media. Find out what they’re sharing and what other people are saying about them. If they’re using influencer marketing, how much engagement do those campaigns earn them?

Pro tip : Use Hootsuite Streams to monitor relevant keywords, hashtags and accounts in real-time.

Try Hootsuite for free. You can cancel anytime.

As you track, you may notice shifts in how your competitors and industry leaders are using social media. You may come across new, exciting trends. You might even spot specific social content or a campaign that really hits the mark—or totally bombs.

Use this kind of intel to optimize and inform your own social media marketing strategy.

Just don’t go overboard on the spy tactics, Amanda advises. “ Make sure you aren’t ALWAYS comparing yourself to the competition — it can be a distraction. I’d say checking in on a monthly basis is healthy. Otherwise, focus on your own strategy and results.”

Step 4. Do a social media audit

If you’re already using social media, take stock of your efforts so far. Ask yourself the following questions:

• What’s working, and what’s not?
• Who is engaging with you?
• What are your most valuable partnerships?
• Which networks does your target audience use?
• How does your social media presence compare to the competition?

Once you collect that information, you’ll be ready to start thinking about ways to improve.

We’ve created an easy-to-follow social media audit guide and template to walk you through each step of this process.

Your audit should give you a clear picture of what purpose each of your social accounts serves. If the purpose of an account isn’t clear, think about whether it’s worth keeping.

To help you decide, ask yourself the following questions:

• Is my audience here?
• If so, how are they using this platform?
• Can I use this account to help achieve my goals?

Asking these tough questions will keep your social media strategy focused.

Look for impostor accounts

During the audit, you may discover fake accounts using your business name or the names of your products.

These imposters can be harmful to your brand—never mind that they’re capturing followers that should be yours.

You may want to get your accounts verified too to ensure your fans know they are dealing with the real you.

Here’s how to get verified on:

• X (Twitter)

Step 5. Set up accounts and improve profiles

Decide which networks to use.

As you decide which social networks to use, you will also need to define your strategy for each.

Benefit Cosmetics’ social media manager, Angela Purcaro, told eMarketer : “For our makeup tutorials … we’re all about Snapchat and Instagram Stories. [X], on the other hand, is designated for customer service.”

Hootsuite’s own social team even designates different purposes for formats within networks. On Instagram, for example, they use the feed to post high-quality educational infographics and product announcements and Stories to cover live events or quick social media updates.

View this post on Instagram A post shared by Hootsuite 🦉 (@hootsuite)

Pro tip : Write out a mission statement for each network. A one-sentence declaration to keep you focused on a specific goal.

Example: “We will use X for customer support to keep email and call volumes down.”

Or: “We will use LinkedIn for promoting and sharing our company culture to help with recruitment and employee advocacy.”

One more: “We will use Instagram to highlight new products and repost quality content from influencers.”

If you can’t create a solid mission statement for a particular social media channel, you may want to ask yourself if it’s worth it.

Note : While larger businesses can and do tackle every platform, small businesses may not be able to — and that’s ok! Prioritize social platforms that will have the most impact on your business and make sure your marketing team has the resources to handle content for those networks. If you need help focusing your efforts, check out our 18-minute social media plan .

Set up your profiles

Once you’ve decided which networks to focus on, it’s time to create your profiles. Or improve existing ones so they align with your strategy.

• Make sure you fill out all profile fields
• Include keywords people would use to search for your business
• Use consistent branding (logos, images, etc.) across networks so your profiles are easily recognizable

Pro tip : Use high-quality images that follow the recommended dimensions for each network. Check out our always-up-to-date social media image size cheat sheet for quick reference.

We’ve also got step-by-step guides for each network to walk you through the process:

• Create a Facebook business page
• Create an Instagram business account
• Create a TikTok account
• Create a X (Twitter) business account
• Create a Snapchat account
• Create a LinkedIn Company Page
• Create a Pinterest business account
• Create a YouTube channel

Don’t let this list overwhelm you. Remember, it’s better to use fewer channels well than to stretch yourself thin trying to maintain a presence on every network.

Optimize your profiles (and content) for search

Never heard of social SEO ? It’s time to learn.

44% of Gen Z consumers use social platforms to research their purchase decisions, which means it’s extra critical that your channels are optimized for social search.

That means making sure your profile names are clear and descriptive, you’re including relevant hashtags and keywords in your bio and on every post, and you’re using features like alt text and captions to include your target keywords as naturally as possible.

Step 6. Find inspiration

While it’s important that your brand be unique, you can still draw inspiration from other businesses that are great on social.

“ I consider it my job to stay active on social: to know what’s trending, which campaigns are winning, what’s new with the platforms, who’s going above and beyond,” says Amanda. “This might be the most fun step for you, or the hardest one, but it’s just as crucial as the rest of them.”

Social media success stories

You can usually find these on the business section of the social network’s website. ( Here’s Facebook’s , for example.)

Case studies can offer valuable insights that you can apply to your own social media plan.

Award-winning accounts and campaigns

You could also check out the winners of The Facebook Awards or The Shorty Awards for examples of brands that are at the top of their social media game.

For learning and a laugh, check out Fridge-Worthy, Hootsuite’s bi-weekly awards show highlighting brands doing smart and clever things on social media.

Your favorite brands on social media

Who do you enjoy following on social media? What do they do that compels people to engage and share their content?

National Geographic, for example, is one of the best on Instagram, combining stunning visuals with compelling captions.

View this post on Instagram A post shared by National Geographic (@natgeo)

Then there’s Shopify. The ecommerce brand uses Facebook to sell themselves by showcasing customer stories and case studies.

And Lush Cosmetics is a great example of superior customer service on X. They use their 280 characters to answer questions and solve problems in an extremely charming and on-brand way.

Source: lushcosmetics on X

Notice that each of these accounts has a consistent voice, tone, and style. That’s key to letting people know what to expect from your feed. That is, why should they follow you? What’s in it for them?

Consistency also helps keep your content on-brand even if you have multiple people on your social media team.

For more on this, read our guide on establishing a compelling brand voice on social media .

Ask your followers

Consumers can also offer social media inspiration.

What are your target customers talking about online? What can you learn about their wants and needs?

If you have existing social channels, you could also ask your followers what they want from you. Just make sure that you follow through and deliver what they ask for.

Step 7. Create a social media content calendar

Sharing great content is essential, of course, but it’s equally important to have a plan in place for when you’ll share content to get the maximum impact.

Your social media content calendar also needs to account for the time you spend interacting with the audience (although you need to allow for some spontaneous engagement as well).

Set your posting schedule

Your social media content calendar lists the dates and times at which you will publish types of content on each channel. It’s the perfect place to plan all of your social media activities—from images, link sharing, and re-shares of user-generated content to blog posts and videos. It includes both your day-to-day posting and content for social media campaigns.

Your calendar also ensures your posts are spaced out appropriately and published at the best times to post .

Pro tip: You can plan your whole content calendar and get recommended best times to post on every network based on your past engagement rate, impressions, or link click data in Hootsuite.

Hootsuite’s Best Time to Publish feature

Determine the right content mix

Make sure your content strategy and calendar reflect the mission statement you’ve assigned to each social profile, so that everything you post is working to support your business goals.

(We know, it’s tempting to jump on every meme, but there should always be a strategy behind your social media marketing efforts!)

You might decide that:

• 50% of content will drive traffic back to your website
• 25% of content will be curated from other sources
• 20% of content will support lead-generation goals (newsletter sign-ups, ebook downloads, etc.)
• 5% of content will be about your company culture

Placing these different post types in your content calendar will ensure you maintain the right mix.

If you’re starting from scratch and you’re not sure what types of content to post, try the 80-20 rule :

• 80% of your posts should inform, educate, or entertain your audience
• 20% can directly promote your brand.

You could also try the social media content marketing rule of thirds :

• One-third of your content promotes your business, converts readers, and generates profit.
• One-third of your content shares ideas and stories from thought leaders in your industry or like-minded businesses.
• One-third of your content is personal interactions with your audience

Whatever you decide on, be sure to document it in your strategy doc.

Don’t post too much or too little

If you’re starting a social media marketing strategy from scratch, you may not have figured out how often to post to each network for maximum engagement yet.

Post too frequently and you risk annoying your audience. But, if you post too little, you risk looking like you’re not worth following.

Start with these posting frequency recommendations:

• Instagram (feed): 3-7 times per week
• TikTok: 3-5 times per week
• Facebook: 1-2 times per day
• X (Twitter): 1-5 times per day
• LinkedIn: 1-5 times per day

Pro tip : Once you have your social media content calendar planned out, use a scheduling tool to prepare messages in advance rather than updating constantly throughout the day.

We might be biased, but we think Hootsuite is the best social media management tool. You can schedule social media posts to every network and the intuitive calendar view gives you a full picture of all your social activity each week.

Try It Free

Step 8. Create compelling content

Remember those mission statements you created for each channel in Step 5? Well, it’s time to go a bit deeper, a.k.a. provide some examples of the type of content you’ll post to fulfill your mission on each network.

If you’re not sure what to post, here’s a long list of social media content ideas to get you started. Or (to make it even easier) you can use an AI tool like OwlyWriter to generate on-brand content in a flash.

The idea here is to:

• Keep your content aligned with the purpose of each network;
• Show other stakeholders (if applicable) what kind of content they can expect to see on each network.

This last point especially will help you avoid any tension when your colleagues want to know why you haven’t posted their case study/whitepaper/blog post to TikTok yet. It’s not in the strategy, Linda!

Ideally, you will generate content types that are both suited to the network and the purpose you’ve set out for that network.

For example, you wouldn’t want to waste time posting brand awareness tweets if you’ve designated X/Twitter for primarily customer support. And you wouldn’t want to post super polished corporate video ads to TikTok, as users expect to see short, unpolished videos on that platform.

It might take some testing over time to figure out which type of content works best on which type of network, so prepare to update this section frequently.

We won’t lie: content creation isn’t as easy as everyone not on the social team seems to think. But if you’re struggling, Amanda suggests going back to basics.

The first question to ask is: is there cohesion between your content types? Is your content providing value? Do you have a good mix of entertaining, or educational content? What does it offer that makes a person stop and spend time? Creating a few different content pillars or categories that encompass different aspects of storytelling for your brand, and what you can offer your audience is a good start.

This brings us to Step 9.

Step 9. Track performance and make adjustments

Your social media marketing strategy is a hugely important document for your business, and you can’t assume you’ll get it exactly right on the first try.

As you start to implement your plan and track your results, you may find that some strategies don’t work as well as you’d anticipated, while others are working even better than expected.

That’s why it’s important to document your progress along the way.

Look at performance metrics

In addition to the analytics within each social network (see Step 2), you can use UTM parameters to track social visitors as they move through your website, so you can see exactly which social posts drive the most traffic to your website.

Benchmark your results

You’ve got your numbers, but how do they stack up to the competition in your industry? Industry benchmarks are a great way to evaluate your performance against other businesses in your category.

If you’ve got Hootsuite Analytics , you can use our built-in social media benchmarking tool to compare the performance of your social accounts against the average of brands in your industry with just a couple of clicks.

You can set up custom timeframes, switch between networks — Instagram, Facebook, X (Twitter), LinkedIn, and TikTok — and look up benchmarks for metrics like followers, audience growth rate, engagement rate, clicks, shares, and much more.

You’ll also find resources to improve your performance  right in the summary section:

Re-evaluate, test, and do it all again

Once this data starts coming in, use it to re-evaluate your strategy regularly. You can also use this information to test different posts, social marketing campaigns, and strategies against one another. Constant testing allows you to understand what works and what doesn’t, so you can refine your social media marketing strategy in real time.

You’ll want to check the performance of all your channels at least once a week and get to know the basics of social media reporting so you can track your growth over time.

Pro tip: If you use Hootsuite, you can review the performance of all your posts on every network in one place. Once you get the hang of checking your analytics, you may even want to customize different reports to show specific metrics over a variety of different time periods.

Surveys can also be a great way to find out how well your social media strategy is working. Ask your followers, email list, and website visitors whether you’re meeting their needs and expectations, and what they’d like to see more of. Then make sure to deliver on what they tell you.

Finalizing your social media strategy

Spoiler alert: nothing is final.

Social media moves fast. New networks emerge, others go through demographic shifts.

Your business will go through periods of change as well.

All of this means that your social media marketing strategy should be a living document that you review and adjust as needed. Refer to it often to stay on track, but don’t be afraid to make changes so that it better reflects new goals, tools, or plans.

When you update your social strategy, make sure to watch our 5-step video on how to updating your social media strategy for 2024:

Social media strategy template

Ready to start documenting? Grab your free social media strategy template below!

What’s next? When you’re ready to put your plan into action, we’re here to help…

Save time managing your social media marketing strategy with Hootsuite. From a single dashboard you can easily:

• Plan, create, and schedule posts to every network
• Track relevant keywords, topics, and accounts
• Stay on top of engagement with a universal inbox
• Get easy-to-understand performance reports and improve your strategy as needed

Try Hootsuite for Free

With files from Shannon Tien .

Do it better with Hootsuite , the all-in-one social media tool. Stay on top of things, grow, and beat the competition.

Become a better social marketer.

Get expert social media advice delivered straight to your inbox.

Christina Newberry is an award-winning writer and editor whose greatest passions include food, travel, urban gardening, and the Oxford comma—not necessarily in that order.

Amanda Wood is a senior social marketing professional who combines analytical and creative thinking to build brands.

As head of social at Hootsuite, Amanda oversees the global social strategy encompassing organic and paid social on Instagram, Facebook, Twitter, TikTok, and LinkedIn, a social engagement and listening strategy, and an employee advocacy program.

As the leader of a high-performing social team, she has extensive experience collaborating with creatives to bring campaigns to life on social and drive business results.

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Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner.

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Key takeaways

• Ways to prepare for getting a mortgage include knowing what you can realistically afford, saving for a down payment and improving your credit score.
• Comparing offers from multiple lenders — at least three — could save you a significant amount of money.
• Along with your down payment, you'll need to pay closing costs, which typically cost 2 to 5 percent of the loan principal, but vary by state.

For most Americans, taking out a mortgage makes buying a home possible. But how do you get a mortgage? This guide breaks down the mortgage process so you’ll know what to expect when you apply for a mortgage loan.

How to get a mortgage step-by-step

Step 1: strengthen your credit.

The best loan offers go to borrowers with credit scores in the 700s. That’s because a strong score demonstrates you can responsibly manage your debt.

“Having a strong credit history and credit score is important because it means you can qualify for favorable rates and terms when applying for a loan,” says Rod Griffin, senior director of Public Education and Advocacy for Experian, one of the three major credit reporting agencies.

If your credit score is on the lower side, you could still get a loan, but you’ll likely pay a higher interest rate .

To improve your credit before applying for your mortgage, Griffin recommends these tips:

• Make all payments on time and reduce your credit card balances: Your payment history on your report goes back two years or longer, so start now if you can.
• Bring any past-due accounts current: Past-due accounts will sink your score. Bringing all of these accounts current and continuing to pay them on time can limit some of the damage.
• Review your credit reports: You can check your credit reports weekly for free at AnnualCreditReport.com . Check for errors on your credit reports, and contact the reporting bureau immediately if you spot any. For example, an error might be a paid-off loan that hasn’t been recorded as such, or an incorrect address.
• Check your credit score: Check your reports and score well before applying for a mortgage. When you review your score, you’ll see a list of the top factors impacting it, which can tell you what changes to make to get your credit in shape, if needed.

Step 2: Know what you can afford

One way to determine how much house you can afford is to figure out your debt-to-income (DTI) ratio . The DTI ratio is calculated by summing up all of your monthly debt payments and dividing that figure by your gross monthly income.

The lower your DTI ratio, the more room you’ll have in your budget for expenses not related to your home. That’s why Andrea Woroch, a Bakersfield, California-based personal finance and budgeting authority, says it’s essential to take into account all your monthly expenses and your set-asides for far-off plans.

“The last thing you want to do is get locked into a mortgage payment that limits your lifestyle flexibility and keeps you from accomplishing your goals,” says Woroch— a condition known as “house poor.”

You can determine how much house you can afford by using Bankrate’s calculator , which factors in your income, monthly obligations, estimated down payment and other details of your mortgage.

Step 3: Build your savings

Your first savings goal should be enough for a sufficient down payment. “Saving for a down payment is crucial so that you can put the most money down — preferably 20 percent to reduce your mortgage loan, qualify for a better interest rate and avoid having to pay private mortgage insurance,” says Woroch.

However, know that you can still get a house with a low down payment. For example, conventional mortgages require a minimum of 3 percent down, FHA loans require 3.5 percent down and VA and USDA loans have no down payment requirements.

It’s equally important to build up your cash reserves. One rule of thumb is to have the equivalent of roughly six months’ worth of mortgage payments in a savings account, even after you fork over the down payment. This cushion can help safeguard you if you lose your job or something else unexpected happens.

Also, don’t forget closing costs , which are the fees you’ll pay to finalize the mortgage. They typically run between 2 to 5 percent of the loan’s principal. They don’t include escrow payments, either, which are a separate expense. Generally, you’ll also need around 1 to 4 percent of the home’s price for annual maintenance and repair costs.

Step 4: Compare mortgage rates and loan types

Once your credit score and savings are in an adequate place, start searching for the right kind of mortgage for your situation. You’ll also want to have an idea of how mortgages work before moving forward. The main types of mortgages include:

• Conventional loans: Conventional loans are loans that aren’t guaranteed or insured by the government. You’ll need at least a 620 credit score and a down payment of 3 to 5 percent to qualify.
• FHA loans: FHA loans , insured by the Federal Housing Agency (FHA), have more flexible financial requirements than conventional loans. They require a 3.5 percent down payment, a credit score of at least 580 and a DTI ratio not exceeding 43 percent.
• VA loans: VA loans are guaranteed by the U.S. Department of Veterans Affairs (VA), and are available for qualifying military members. They have no down payment requirement, and credit score requirements vary by lender.
• USDA loans: USDA loans , guaranteed by the U.S. Department of Agriculture (USDA), are available for properties in designated rural areas. They have no down payment requirement, and credit score requirements vary by lender.
• Jumbo loans: Jumbo loans are conventional loans for properties whose price tags exceed the federal threshold set for conforming loans ($766,550 in most parts of the country or $1,149,825 in more expensive areas). These loans often come with higher minimum credit score and down payment requirements.

Look at the interest rates and fees for each loan, which collectively amount to its annual percentage rate (APR). Even a small difference in interest rates can result in big savings over the long run. Also, consider things like whether you’ll have to pay for mortgage insurance , and for how long.

Mortgages are also differentiated by their rates and term lengths:

• Term length: Most home loans have 15- or 30-year terms, although there are 10-year, 20-year, 25-year and even 40-year mortgages available.
• Fixed-rate mortgage: A fixed-rate mortgage has the same interest rate throughout the length of the loan, so every payment will be the same. This predictability makes fixed-rate mortgages the most popular option, with the 30-year fixed-rate mortgage being the standard in the United States.
• Adjustable-rate mortgage: Adjustable-rate mortgages (ARMs) are 30-year mortgages that start with a lower, introductory interest rate. After their intro period, the rate adjusts based on a specified market index. You may see these loans referred to as 5/6 ARMs, 7/6 ARMs, 10/1 ARMs or another mix of numbers. The first number refers to the amount of years you’ll be locked in at an introductory rate. The second number is how frequently the rate adjusts once the intro period is over — “6” meaning every six months and “1” meaning yearly. Many people who get ARMs do so with the plan to sell or refinance to a lower fixed rate before the intro period ends.

Step 5: Find a mortgage lender

Once you’ve decided on the type of mortgage, it’s time to find a mortgage lender.

“Speak with friends, family members and your agent and ask for referrals,” says Guy Silas, branch manager for the Rockville, Maryland office of Embrace Home Loans. “Also, look on rating sites, perform internet research and invest the time to truly read consumer reviews on lenders.”

“[Your] decision should be based on more than simply price and interest rate,” says Silas. “You will rely heavily on your lender for accurate preapproval information, assistance with your agent in contract negotiations and trusted advice.”

If you’re not sure exactly what to look for, you might want help. A mortgage broker can help you navigate the different loan options available to you and possibly help you get more favorable terms than you’d be able to secure by applying on your own. Remember that interest rates, fees and terms can vary greatly from lender to lender. Bankrate can help you compare rates from different lenders.

Step 6: Get preapproved for a loan

Once you’ve settled on a lender, get preapproved for a mortgage . With a preapproval, the lender will review your finances to determine if you’re eligible for funding and an amount they’re willing to lend you.

“Many sellers won’t entertain offers from someone who hasn’t already secured a preapproval,” says Griffin. “Getting preapproved is also important because you’ll know exactly how much money you’re approved to borrow.”

Be mindful that mortgage preapproval differs from prequalification . A preapproval involves much more documentation and a hard credit check. Mortgage prequalification is less formal and is essentially a way for a lender to tell you that you’d be a good applicant.

Still, preapproval doesn’t guarantee you’ll get the mortgage. That has to wait until you’ve made an offer on a house and successfully gone through mortgage underwriting.

Step 7: Begin house-hunting

With a preapproval in hand, you can begin seriously searching for a property that meets your needs. When you find a home with the perfect blend of affordability and livability, be ready to pounce.

“It’s essential to know what you’re looking for and what is feasible in your price range,” says Katsiaryna Bardos, finance department chair at Fairfield University in Fairfield, Connecticut. “Spend time examining the housing inventory, and be prepared to move quickly once the house that meets your criteria goes on the market.”

Step 8: Submit your loan application

If you’ve found a home you’re interested in purchasing, you’re ready to complete a mortgage application . These days, you can complete most applications online, but it can sometimes be more efficient to apply with a loan officer in person or over the phone. When you apply, your lender will perform a credit check and request documents from you, such as:

• Proof of identification: Including your driver’s license, Social Security card and/or other forms of government-issued ID
• Proof of income: Including paystubs, W-2s, 1099s, receipts of alimony and/or child support and rental income
• Proof of assets: Bank statements, investment and/or retirement account statements, bonds, stocks, etc.
• Gift letters: If a friend or relative gives you money for a down payment, you’ll need to submit a gift letter

Step 9: Wait out the underwriting process

Even though you’ve been preapproved for a loan, that doesn’t mean you’ll ultimately get financing from the lender. The final decision will come from the lender’s underwriting department, which evaluates the risk of each prospective borrower and the nature of the property, and determines the loan amount, interest rate and other terms.

Here are some steps involved in the underwriting process:

• A loan officer will confirm the information you provided during the application process.
• After you make an accepted offer on a home, the lender will order an appraisal of the property to determine whether the amount in your offer is appropriate. The appraised value depends on many factors, including the home’s condition and comparable properties, or “comps,” in the neighborhood.
• A title company will conduct a title search to ensure the property can be transferred, and a title insurer will issue an insurance policy that guarantees the accuracy of this research.

“After all your financial information is gathered, this information is submitted to an underwriter — a person or committee that makes credit determinations,” says Bruce Ailion, an Atlanta-based real estate attorney and Realtor. “That determination will either be yes, no or a request for more information from you.”

Step 10: Close on your new home

Once you’ve been officially approved for a mortgage, you’re nearing the finish line. All that’s needed at that point is to complete the closing.

“The closing process differs a bit from state to state,” says Ailion. “Mainly, it involves confirming the seller has ownership and is authorized to transfer title, determining if there are other claims against the property that must be paid off, collecting the money from the buyer, and distributing it to the seller after deducting and paying other charges and fees.”

There are a variety of expenses that accompany the closing. These typically include:

• Appraisal fee: Fee you pay to a professional appraiser to determine the value of the property you’re purchasing
• Credit check fee: Fee for running your credit report, usually less than $30.
• Origination or underwriting fee: Fee that covers the cost of creating and processing your loan, usually 0.5 percent to 1 percent of the amount you’re borrowing
• Title insurance fees: Fees that cover title and settlement services, including for a lender’s insurance policy equal to 0.5 percent to 1 percent of the purchase price
• Prepaids: Expenses you’ll cover upfront, such as property taxes and homeowners insurance premiums
• Attorney fee : Usually a flat fee, though you may not be required to hire an attorney, as only 22 states require an attorney to be present at closing
• Recording fees: Flat fee to record the transaction with the proper local authority

Along with paying closing costs, you will review and sign lots of documentation at the closing, including details on how funds are disbursed. The closing or settlement agent will also enter the transaction into the public record.

What are mortgage lenders looking for?

Mortgage lenders are looking for creditworthy applicants with sufficient income, consistent repayment histories and manageable levels of debt. Ultimately, they want reassurance you’ll pay back the money you borrow.

The factors that go into a lender’s decision on whether or not to approve your mortgage application include:

• Credit score: Credit scores are based primarily on your credit history, pattern of repayment, credit utilization and credit mix. Depending on the type of mortgage, you might qualify even with a lower credit score. A higher score, though, gets you a better interest rate.
• Income and employment: To qualify for a mortgage, you’ll need to show evidence of a steady employment history and income high enough to afford the monthly payments.
• Low DTI ratio: Your DTI ratio is a measure of your monthly debt payments compared to your earnings. The lower your DTI ratio, the better. In general, a DTI ratio of 36 percent or less is ideal, though you might be able to qualify for a mortgage with a DTI ratio of up to 50 percent.
• Assets: Your lender will want to look at your bank accounts and the value of any other assets you hold. Though it’s not the norm, your lender might require you to have up to six months of mortgage payments in cash reserves, depending on the type of loan and your financial situation.

Mortgage process FAQ

What income is required to get a mortgage, how much is a down payment, how do i qualify for a mortgage, where can i get a mortgage.

Article sources

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.

“ Average Closing Costs for Purchase Mortgages Increased 13.4% in 2021, CoreLogic’s ClosingCorp Reports ” [Press Release] CoreLogic. April 21, 2022.

“ Eligibility Matrix ” Fannie Mae. Accessed on March 25, 2024.

“ Let FHA Loans Help You ” U.S. Department of Housing and Urban Development. Accessed on March 25, 2024.

“ Determine Your Down Payment ” Consumer Financial Protection Bureau. Accessed on March 25, 2024.

“ Purchase loan ” U.S. Department of Veterans Affairs. Accessed on March 25, 2024.

“ Single Family Housing Guaranteed Loan Program ” U.S. Department of Agriculture. Accessed on March 25, 2024.

“ Loan Limits ” Fannie Mae. Accessed on March 25, 2024

“ Days to close ” ICE Mortgage Technology. Accessed on March 25, 2024.

“ What States Require an Attorney to Complete a Real Estate Closing (Attorney Only States)? ” Superior Notary Services. Accessed on March 25, 2024.

5 types of mortgage loans for homebuyers

How to get the best mortgage rate: A guide to finding the lowest rate

Compare current mortgage rates for today

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How To Build a Brand in 7 Steps: Get Started in 2024

Learn how to build your own brand from scratch and create a compelling and memorable brand identity that resonates with your target audience.

Brand building is a critical part of starting a business . A great business idea or innovative product means nothing if you can’t communicate it to the world—specifically in a way that your  target audience can relate to.

Your brand image in the minds of your customers, competition, and the market all comes down to brand positioning and the aesthetic choices you make. But your brand identity is more than a logo. It encompasses everything from your unique brand personality to your mission statement to the consistent color palette you use across every channel.

In this guide, learn how to build your own brand from scratch and create a compelling and memorable brand identity that resonates with your target audience. Plus, explore what it takes to create a brand logo or catchy slogan, with real examples from successful brands and branding design tips from experts.

What is a brand?

A brand defines a business, product, service, person, or concept in the market. It differentiates your business from others in the same industry and has a set of rules (called brand guidelines) that dictate how that business will be marketed and presented. Branding is the process of establishing a brand—how it looks, what it sounds like, and the defined target audience it hopes to reach. 

What are the building blocks of a brand?

Brand is more than a logo. It’s more than a slogan or color palette. To build a successful brand, there’s plenty of ground work that needs to be done before you can start designing a website or creating marketing materials. 

Here are the building blocks that will be included in your overall brand guidelines document:

Target audience

Defining your target audience is one of the most important stages of creating a brand from scratch. Everything stems from this. Defining your audience in detail helps you build a brand that speaks directly to it. Later in this article, you’ll learn tactics for understanding this audience.

Brand identity

Your brand identity encompasses your business name and the visual elements that define your brand, from your logo and colors to the aesthetic of your photography and your social media handles. Brand identity also includes your brand’s story and competitive advantage.

Brand voice

Brand voice is how your brand sounds. Defining this ensures brand consistency across every customer touchpoint. If your customers expect a cheeky, frank tone from you on social media, carry that through into your website copy and other communications.

Mission and values

Your brand’s mission is the North Star for your business. It establishes both a goal for yourself and a promise to your customers. Your values are what your brand stands for. Both are important as you build your brand because they keep your decisions in check. Whatever you do as a brand should always stay true to your mission and values.

Style guide

Your brand style guide is one part of your larger brand guidelines. It spells out exactly how your brand will surface on every platform or channel. It covers acceptable use of your logo, fonts you use, brand voice and tone, and overall aesthetic of your brand. It’s a useful guide as you scale, hire, and use agencies to create work on your behalf. 

The importance of brand guidelines

Brand guidelines are the bible for your brand. This document or set of documents will take a position on every aspect of your brand and how it shows up in various places. Every decision you make during the brand building process will be captured here. 

A well-executed set of brand guidelines will achieve the following:

• Keep staff, freelancers, retail partners, and agencies on the same page
• Aid in staff hiring and training (what are the qualities your brand looks for in an employee?)
• Ensure your branding is consistent across all touchpoints
• Be a go-to resource for crisis communications
• Be a flexible document that grows with your brand

How to build a brand in 7 steps

• Research your target market
• Determine your brand’s voice and personality
• Choose your business name
• Write your brand story
• Create a brand style guide
• Design your logo and brand assets
• Apply your branding across your business

As a small business owner, taking the time to establish your brand image is critical, especially if you’re entering a crowded market. And creating a solid foundation for your brand identity can help you build brand awareness over time. 

While you might revisit some steps as you pivot or create your brand, it’s important you consider each aspect as you shape your brand identity. Bookmark this guide as a handy resource to access throughout your brand building journey.

1. Research your target market

The first step to building a successful brand is understanding the current market: Who are your potential customers and competitors? Every solid brand strategy and business plan is based on this very question. 

You can’t create a brand logo unless you know the preferences of your audience. And developing a unique brand personality that stands out from the crowd can only happen once you know the competitive landscape. 

There are many ways to conduct market research before you start the brand building process:

• Google your product or service category and analyze the direct and indirect competitors that appear in search results.
• Talk to people who are part of your target market and ask them what brands they buy from in your industry.
• Look at the relevant social media accounts or pages your target audience follows.
• Shop online or in retail stores and get a feel for how your customers would browse and buy products.
• Investigate trends in your industry by reading publications, browning social media, and using Google Trends.

During your research, take note of the biggest brands in the market. What are they doing right? What do you offer that they don’t? This is called your unique selling proposition (USP). 

You should also pay attention to the habits common to your target audience, like the platforms they use most, the language and slang they use, and how they engage with other brands. These insights will help you understand where and how best to reach them. 

Lingerie brand Lemonade was built to create a size-inclusive and body-positive line of products for “every person.” While this may sound like a broad audience, Lemonade understands that its target customer is someone who doesn’t feel represented by typical lingerie brands.

Beyond saying it, Lemonade shows it’s a brand for all kinds of bodies by using diverse images that include plus models and offering a gender-affirming line.

2. Determine your brand’s voice and personality

Branding isn’t about trying to be everything to everyone. A strong POV will speak to the audience you care about most. It will tell this group that yours is a brand for them. To develop this POV and a distinct brand voice, there are several exercises you can complete. 

Create a positioning statement

A positioning statement is one or two lines that stake your brand’s claim in the market. It won’t necessarily be a public-facing statement, but will help steer the direction of your brand story and other parts of your brand guidelines. 

A positioning statement should outline what you sell, who it’s for, and what makes you unique. Your value proposition is what’s going to give you an edge—even in a crowded market. 

Use this template to create yours: 

“We offer [PRODUCT/SERVICE] for [TARGET MARKET] to [VALUE PROPOSITION].  Unlike [THE COMPETITION], we [KEY DIFFERENTIATOR].”

An example positioning statement might look something like this:

“We offer lightweight and waterproof daypacks for travelers, which fold into a wallet-sized pouch when not in use. Unlike other accessory brands, we guarantee our packs for life—no questions asked.”

💡 Tip: You can use this exercise as the basis for your mission statement —expand on your positioning statement to include your brand promise and what you stand for.

Brainstorm using word association

Imagine your brand as a person. What are they like? Do they have the kind of personality your customers would be attracted to? Describe this person. How can your description translate from a person to a brand?

Fashion branding expert Joey Ng suggests narrowing your list of adjectives down to just three of the best words. “Find your niche and define in very few words what makes your brand distinctive,” she says. “If something doesn’t fit those original three words—even though you might like it—scrap it. Establish the core message, nail it, then expand.”

Hone your brand voice and tone

Your brand voice and tone will help you hone in on how you want to sound to customers and what you want them to feel when they interact with you. Is your voice cheeky or serious? Does it aim to be a reliable friend, a muse, or a trusted expert? 

Establish a list of dos and don’ts that govern the language you will and won’t use in your communications. You may even want to drill down on specific communications channels like social media or customer service: How does your tone change depending on the situation?

3. Choose your business name

Your company’s name is probably one of the first big commitments you’ll make as a business owner. Ideally, you want a brand name that isn’t being used by another company (especially in your industry), has available social media handles, and is a fit based on your brand or products. It should be easy to remember and hard to imitate.

A few approaches to choosing a brand name include the following:

• Make up a brand new word (e.g., Pepsi).
• Reframe a word unrelated to your industry or product (e.g., Apple for computers or Maple for health care).
• Use a suggestive word or metaphor (e.g., Buffer).
• Describe it literally (e.g., The Shoe Company or Home Depot).
• Alter a word by changing its spelling, removing letters, adding letters, or using Latin endings (e.g., Tumblr or Activia).
• Create an acronym from a longer name (e.g., HBO for Home Box Office).
• Use a portmanteau: Pinterest (pin + interest) or Snapple (snappy + apple).
• Use your own name (e.g., Donna Karan or DKNY)

If your first choice domain name isn’t available for your brand (e.g., yourbrandname.com), consider other ways to snag a domain name that works. For example, lingerie company Pepper ’s domain name is wearpepper.com. You can also play with the top-level domain. Try a localized version like .co.uk or .ca. 

⚒️ Free tools: Try Shopify’s free business name generator and domain name generator to help you nail the perfect name for your brand.

4. Write your brand story

Your brand story is the autobiography of your business and sometimes your own story as a founder. It’s a useful tool for branding because it humanizes your business to create meaningful connections with customers. Buyer trends point to an appetite for meaningful relationships with brands. The best way to do this is through a compelling, transparent, and authentic story. 

What elements of your own story will resonate with your target audience? What do they need to know to connect with you as a person? How do you wrap your brand values and mission into your story to tell customers, “This is a brand for you”?

Creating a catchy slogan

Once you’ve established your positioning and your brand story, you can use this work to create a snappy slogan for your business. A good slogan is short, catchy, and makes a strong impression to boost brand awareness. 

A clever slogan can increase brand awareness as customers start to recognize it—even when it’s divorced from your brand.

Here are some ways to approach writing your slogan:

• Stake your claim, like this example from Death Wish Coffee: “The World’s Strongest Coffee.”
• Make it a metaphor, just like Red Bull did: “Red Bull gives you wings.” 
• Adopt your customers’ attitude, like this unforgettable slogan from Nike: “Just do it.”
• Speak to your target audience, like this example from Cards Against Humanity: “A party game for horrible people.”
• Try a catchy rhyme, like this Folgers coffee slogan: “The best part of waking up is Folgers in your cup.”
• Establish an aesthetic or taste level, like this example from Aritzia: “Everyday luxury to elevate your world.”

⚒️ Free tools: Try Shopify’s slogan maker to to generate potential one-liners to describe your business. 

5. Create a brand style guide

Now comes the fun part. Your style guide will include all the visual decisions you make for your brand. This guide will come in handy when you build your website, design your social media profile pages, and create product packaging.

Choosing your colors

Colors are important because, alongside copywriting, they tell potential customers how to feel about your brand. While color psychology is a contested science, there are some general associations you can make between color and mood. Moody darker cool colors may complement an edgy brand or a sleep brand while warm pastels tell a soothing story for baby or wellness brands.

Tips for choosing colors for your visual identity:

• Consider how legibly white and black text will appear over your color palette.
• Don’t use too many colors in your logo—it should be identifiable as a single color in a black and white format.
• Research your target market, use focus groups, and understand the specific cultural or demographic differences that might affect a user’s perception of color.
• Limit your palette to one to two main colors, with a set of accent colors that rotate in and out, depending on application.

💡 Learn more: Psychological Design: 8 Tactics To Turn Leads Into Customers

Selecting a suite of fonts

Fonts work alongside colors to establish a recognizable look for your brand across social, your website, packaging, and other marketing materials. 

As a general rule, choose two fonts: one for headings and one for body text (this might not include the font you use in your brand’s wordmark). Home brand Floof uses one sans serif font for navigation and headers and another serif font for the rest of the text. Note that its logo—a simple wordmark of its brand name—is a unique font not used anywhere else:

Save decorative fonts for your logo or in very limited applications while using a simple, accessible font for your website and product information on packaging. Forét ’s fonts are simple and clean, making them legible at any size:

Determining aesthetic elements and effects

If you use a lot of lifestyle photography for your brand, you may want to establish a set of rules to set the tone, no matter who’s producing photos. Maybe that includes guidelines for mood, photo filters, colors, or other effects.

You can also design a set of graphic elements that you use across your branded properties. These may be characters, squiggles, or texture effects. Rotten candy brand uses consistent graphic elements like electrified stripes and grainy textures across its branding:

While OffLimits cereal uses a wordmark for its logo, consistent graphic elements like a family of brand mascots show up across all surfaces:

6. Design your logo and brand assets

While a logo design is one of the first things you might think of when building a brand, it should happen later in the process. That’s because it’s a critical identifier for your brand in the wild—and it’s hard to change once you’ve locked it in.

Your logo should be unique, identifiable, and scalable so it works at all sizes. It should also encompass all the work you’ve done on your brand so far. Does it invoke the feeling you hope to inspire in your customers? Does it tell a story that aligns with your brand values? Does it work in your brand colors?

Consider all the places where your brand’s logo will show up: 

• Website 
• Social media avatar 
• Product packaging
• YouTube channel banner 
• Browser favicon (the tiny icon that identifies your open browser tabs)
• Email marketing
• Press mentions and partnerships

You may need to create a few versions of your logo to make it work across applications. If you have a text logo, for example, it’ll be almost impossible to read as a favicon or social avatar. Create a simplified visual version of your logo that works as a square or circle. 

Types of logos

Wordmarks, lettermarks, and other type-based logos are the most common type of logo for modern brands. But other styles may work better for you, depending on your goals and aesthetic. Some logo types include the following:

• Abstract logos are a combination of shapes and colors that don’t easily tie back to anything in the real world. These are best used as a secondary logo, paired with a wordmark, while you build brand recognition. 
• Mascot logos are represented by the face of a character or real person you use as an ambassador for your brand. They can humanize your business by creating a relatable personality. This works best for kids’ brands or those looking for a retro feel (e.g., Wendy’s, Colonel Sanders for KFC).
• Emblem logos are often circular and combine text with an emblem for a luxurious brand design. Avoid making them too fussy or they won’t scale (e.g., Polo Ralph Lauren).
• Icon logos represent your brand as a visual metaphor. Unlike an abstract logo, an icon logo suggests something about the product (e.g., YouTube’s Play button logo).
• Wordmarks or lettermarks are type-based logos that are either your full business name, a combination of letters, or an initial.

Brand identity logo examples

Because of the limitations that exist for each logo type, you can play with a combination of styles as well as have a few secondary logo options. Beauty brand Glossier has a simple wordmark logo used across its website and packaging:

For applications with less space, Glossier’s secondary logo—a stylized letter “G”—is used for legibility, like this example on its YouTube channel:

Mushroom-based supplement brand Eons uses a combination of a wordmark and an icons logo (a simplified mushroom shape). These are used together or separate, as you can see here in different applications:

Lazypants also uses this approach, with a combination wordmark and icon that can be used independently, such as in this example where the icon only is stitched into its garments:

Designing your own logo

New brands are often working with a small budget. If this is the case for you, consider designing a logo yourself. You can use a free tool like Canva or try a logo maker . These work by generating sample logos based on basic information about your business. 

If you have no design skills or don’t feel confident handling this important task yourself, consider hiring a pro. You can outsource the design through gig sites like Fiverr or Upwork or run a logo contest on 99Designs. If you’re running a business on Shopify, there are many Shopify Experts you can hire to design your brand identity—and even your website.

7. Apply your branding across your business

Applying your branding across your business gives it a cohesive brand story. No matter where customers encounter your brand—through a TikTok ad , in a retail store, or in their inbox—the experience should feel familiar and recognizable.

As you build your website, set up your social accounts, and create your marketing plan , refer back to your brand guidelines, mission statement, and values to ensure every decision keeps target customers top of mind.

Your website is the palace where you’ll have the most control over your brand identity. Use this space to its fullest potential. Ecommerce website templates are a great jumping off point. Most of these, like the themes in Shopify’s Themes Store , are fully customizable, meaning you can apply your brand colors, fonts, and assets to a flexible layout.

Brand building is an evolution

Building a brand doesn’t stop after you design a logo. It is a continuous process of cementing your brand identity in the minds of your customers. Building a successful brand involves being consistent in your messaging and deliberate with your brand marketing.

Now that you understand how to build a brand from scratch, you’ll continue brand building for the entire life of your business. You may need to evolve your brand as your values shift or as consumer trends dictate. Remember that if you rebrand, loyal customers should still be able to recognize your brand and receive the same experience. Looping in their feedback will help you grow your brand alongside the people who matter most.

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How to build a brand FAQ

How do you develop a brand.

Brand building involves identifying your business type and products, knowing your target audience and their needs, researching your competition , and defining your brand positioning and brand personality. After you set this foundation, you can build a brand identity including a log, tagline, brand story, and other assets.

How do you define brand identity?

Brand identity represents how your brand is viewed by customers, competition, and the general public. Brand identity includes your values, brand personality (including brand voice and tone), and visual aesthetic. Your brand identity is communicated through every single part of your company—from your logo to your brand marketing to your copy to your in-store experience.

What is in a brand kit?

A brand kit is a document or guide that contains all the information someone would need to represent your brand in a specific application. Almost every brand kit includes the company name and logo, color palette, and other approved imagery. Some brand kits also include information about the company’s founders and team, goals, and products. A brand kit is helpful for press and PR teams, brand ambassadors, affiliates , and influencers . It ensures that anyone talking about your brand captures your brand personality and brand voice accurately.

How do you build a brand with no money?

To build a brand with no money, use the information in this guide to brainstorm ideas and capture your vision on paper—everything from your target audience to your unique brand voice. Once you’ve established a set of guidelines for your brand identity, you’re ready to build a recognizable brand. If you can’t hire a pro during the brand building process, use free tools online to help you find a company name, create a logo, develop templates for social media posts, and generate compelling copywriting .

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How to Register a Domain Name in 2024 (Step by Step)

Having a strong online presence is one of the most important aspects of running a successful business. Whether you’re starting a new blog, setting up an ecommerce website, or creating a portfolio to showcase your work, securing a good domain name is an absolute must. Understanding how to register a domain name serves as an important first step toward establishing your online presence. In this post, we will guide you through the entire process, explain what a domain name is, and offer insight into the ways you can register your new domain.

Let’s dive in.

• 1 What is a Domain Name?
• 2 How to Choose a Domain Name
• 3 Choosing a Registrar
• 4 Check Domain Availability
• 5.1 How to Register a Domain Name Through SiteGround
• 5.2 How to Register a Domain Name With a Domain Registrar
• 6 Final Thoughts on Registering a Domain
• 7 Frequently Asked Questions (FAQs)

What is a Domain Name?

Also known as a uniform resource locator, or URL, a domain name is essentially your website’s address. Without domain names, people would have to access your website through an IP address with a string of numbers, such as 12.364.23.354 . Can you imagine how tedious it would be to navigate websites using that method? Thankfully, there’s a better way: domain names. A domain name provides an easier way to navigate websites directly or through a search engine. A domain name helps your business be more memorable and easier to find and helps with search engine optimization (SEO) .

How to Choose a Domain Name

When starting the process of choosing a domain name , there are a few things to consider. First, your domain should be related to your brand, website, or business name. Typing it should be easy, so avoiding overly long domain names is key. After all, you want your visitors to be able to easily type your domain into the browser directly, so keeping it short, catchy, and memorable is important.

Another consideration is to always opt for a top-level domain (TLD), such as .com . They are the most common, so most people consider them safe and reliable. Although there aren’t any technical differences in TLDs, it’s widely considered that .com will likely be more effective than a .net , .biz , or .org . In fact, according to w3Techs, .com domains make up nearly 48% of all domain names on the internet.

However, not having a .com TLD doesn’t have to be a deal breaker. The most important thing is to find the right domain name for you . That means choosing a lesser-known TLD is okay if your desired domain isn’t available as .com, and you’re set on your choice.

Choosing a Registrar

Before registering your new domain, it’s important to consider the best registrar for your business. Thankfully, several domain name registrars will fit the bill. But first, let’s explain what a registrar is. Domain registrars are like an online store for domain names. You can buy, register, and point your domain to your hosting provider, where your website’s files are located. That said, there are some hosting providers, such as SiteGround , where you can purchase your domain and hosting together. Generally speaking, we don’t recommend doing this, as moving your domain could be difficult if you fall out of love with your hosting provider.

Check Domain Availability

When brainstorming domain name ideas, checking for their availability is essential. All reputable domain registrars offer this capability, so it’s typically easy to determine what is available. For example, Namecheap allows you to check for potential domain names without having to purchase anything upfront.

One thing to keep in mind is not to get frustrated if your first pick isn’t available. With thousands of domain names being registered daily, it’s not out of the realm of possibility to miss out on your favorite. That said, you can easily find variations of your initial pick, with most registrars offering similar options based on your initial search.

How to Register a Domain Name

There are nearly unlimited registrars, each capable of helping you find the perfect domain name. As previously mentioned, there are hosting providers that offer the same service. For this tutorial, we’re going to cover an example of each. First, we’ll walk you through securing a domain through one of the most popular hosting providers, SiteGround . Additionally, we’ll show you how to register a new domain through a popular domain registrar, Namecheap.

How to Register a Domain Name Through SiteGround

SiteGround is one of the best managed hosting providers on the market. They are known for their excellent features, customer service, and value for the money. If you’re in the market for a new provider to go along with your new domain name, SiteGround is the way to go. Setting up a new domain through SiteGround is fast, easy, and affordable. Let’s walk you through the steps to purchase a new hosting plan and add a domain.

Step 1: Choose Your Hosting Plan

SiteGround offers three plans to get you started: StartUp, GrowBig, and GoGeek. If you’re starting out, the StartUp plan is the most affordable option at $14.99 monthly, although SG typically offers up to 80% discounts. Start by selecting the StartUp plan.

Step 2: Choose a Domain

When the screen refreshes, you’ll be forwarded to the domain registration screen, where you can register a new domain or add an existing one. Select Register a new domain . Ensure the Domain Registration checkbox is selected.

Step 3: Search for Domains

Type in your first choice for a new domain, then click proceed .

If your choice is available, you’ll proceed to the next step in the process. If it’s already taken, SiteGround will offer several alternative selections based on the original.

From that point, you can choose one of the suggested domain names or search for an alternate.

Step 4: Register Your Domain

The final step is to complete the registration process. You must complete the account and client information and input your payment method to secure your domain and hosting plan. Once the registration process is complete, your domain is secured, and you’re ready to start building the website of your dreams.

How to Register a Domain Name With a Domain Registrar

Namecheap is among the best domain registrars you can get. With affordable pricing, multiple options for TLDs, and a user-friendly interface, beginners and professional web gurus alike can register a new domain in minutes.

Step 1: Conduct a Domain Search

The first step to registering your new domain using Namecheap is to search for what’s available. Fill in your choice on the Namecheap homepage and click search .

Step 2: Choose Associated Domains

Once you search for the domain of your choice, the registration page will appear, letting you know whether the domain is available. Additionally, you’ll have the option to purchase similar ones should you want to map multiple domains .

Once you’ve selected the domains you wish to purchase, add them to your cart.

Step 3: Purchase Add-ons

Namecheap will offer add-ons such as WordPress hosting , an SSL , and premium DNS, which provides DDoS attack protection and 100% uptime.

Step 4: Create A Namecheap Account

Next, you’ll need to create an account to manage your domain and any add-ons you purchase.

Step 5: Register Your New Domain

On the next screen, you’ll take steps to register your new domain with Internet Corporation for Assigned Name and Numbers (ICANN). When a new domain is registered, it goes into a public directory. Your name and contact information will be recorded and available to anyone searching the ICANN directory.

Finally, you’ll set up your ICANN directory listing using the Whois database. This allows anyone with your domain name to learn who the owner is and their contact information. If you want that to remain private, you’ll need to opt into the domain privacy service by checking the Associate to this domain and enable it at the time of purchase checkbox.

From there, the only thing left to do is purchase your domain.

As you can see, registering a new domain with a hosting provider or domain registrar is a straightforward process, making it simple for people with any skill level to achieve.

Final Thoughts on Registering a Domain

Registering a domain name is an exciting milestone in building your online identity. By following our comprehensive guide, you’ll gain the knowledge and confidence needed to navigate the domain registration process effortlessly, ultimately securing the best domain for your business.

If you need both a domain and hosting, you should try SiteGround . However, if you only need to purchase and register your domain, Namecheap is the perfect choice to kickstart your new business.

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Frequently Asked Questions (FAQs)

Before we wrap up, let’s answer some of your most common questions regarding how to register a domain name. Did we miss one? Leave a question below, and we will respond!

How can I register a domain name?

Can i get a domain for free, how much does it cost to set up a domain, what is the best domain registrar, do domains incur a monthly fee, how long does it take to register a domain name, is paying for a domain name worth it, what are the risks of not registering a domain name, what is a domain extension, which domain extension should i pick for my domain.

Featured Image via Heena Rajput / Shutterstock.com

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Explore plans, pricing and features. Click here to get started. 👇

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By deanna mclean.

Deanna McLean is a blog author, and web developer. She studied graphic design at the University of Mississippi and loves all things, Hotty Toddy. (If you know, you know.) As an adventurous creative, there is nothing Deanna loves more than taking her son and two dogs on excursions in her Jeep.

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How to Create an Ebook In 8 Steps (2024 Beginner’s Guide)

Written by: Orana Velarde

Whether you're trying to create an ebook or learn how to design an ebook on your own, this article provides an easy-to-follow guide with expert tips and examples to get it done right.

To help get you started, here’s a short selection of 8 easy-to-edit ebook templates you can edit, share and download with Visme.

8 Steps to Creating an Ebook

Step #1: write your ebook content, step #2: organize your content.

• Step #3: Use A Style Guide

Step #4: Choose Images and Create Visuals

Step #5: design your ebook, step #6: publish and share, step #7: promote your ebook, step #8: choose the right ebook software, frequently asked questions (faqs).

• You can create an ebook in eight simple steps: write your content, organize your content, use a style guide or brand kit, choose images and visuals, design your ebook (with a template), publish, share and promote it.
• The best way to create an ebook is by choosing the right ebook software, so choose wisely based on your ebook goals.
• With Visme’s ebook maker , you can create ebooks from start to finish. Access a wide range of beautifully designed ebook templates and intuitive editing features all in one place.

An ebook wouldn’t exist without content.

There are two ways to create the content for your ebook. You can either repurpose published content or write something completely new. 

Whichever method you decide, keep in mind that it has to resonate with your clients or potential customers. After all, the most successful ebook offer readers value or a solution to their problems. Not to mention, the subscribers or followers on social media you gain along the way are also great, of course.

Once that’s established, you should use the following tips to get a good understanding of who your target audience is and how to present your information. This will make the ebook creation process much easier.

Here are some fundamental tips when you're creating your own ebook content:

• Know your target audience: By having a clear understanding of who your ideal customer persona is, you’ll be able to navigate the reader with the right tone of voice and language they use on a regular basis so they can grasp the information quickly.
• Be concise and avoid full: Try to master the phrase “less is more.” You want to give your readers a good balance of content so you don’t feel under or overwhelmed with unnecessary information. This is essential in learning how to write an ebook that keeps readers engaged and doesn't bog them down with too much info.
• Conduct thorough research: Be sure to fact-check your information statistics and any dated events to ensure that your book maintains a high level of credibility. If the data or information changes quickly or annually in your industry, then create a revised version of your ebook when it happens.
• Use storytelling to your advantage: When making an ebook, use visual or data storytelling to captivate your audience and keep them engaged with your content. This is significant if your ebook is focused on an academic topic.
• Create an attention-grabbing title: Your title is one of the first things people view, so try to give your ebook an informative and eye-catching title. Avoid using obscure metaphors or contrived wording. Readers must know what they can get from your ebook before they read, purchase or download it.

Writing an ebook content from scratch can be daunting. You can generate content ideas and drafts with the help of Visme’s AI text generator . It’s also effective for proofreading, shortening, expanding or adjusting the tone of your text.

To learn more, read our comprehensive guide to writing an ebook . It includes an easy, step-by-step guide to help anyone write an engaging ebook.

Before designing your ebook, it’s best to organize your content into sections. A great ebook example will have a table of contents with descriptive titles for each section for an easy-to-follow ebook layout. These should use just a few words—the right amount for each topic to be clear.

Select parts of the text which can be turned into bullet points or charts. Find informative paragraphs that can be turned into infographic visuals. 

Take notes on sections that could be well suited to use as captions or quotes. These can break up long blocks of text in a visual way, helping the reader skim the content before reading.

Edit and proofread all your text. Grammar mistakes and typos will make content seem unprofessional even if well written. Use online editors like Grammarly, Hemingway or Prowritingaid for help.

Make sure that you’ve really thought out your page layout before you hop into a designer, especially when considering the mobile devices your ebook will be read on, whether Android or Apple smartphones, e-readers, an iPad or something else.

Step #3: Use a Style Guide

As you begin to develop ideas on how you’d like to design your ebook, you should have a style guide or brand kit on hand. Using a style guide applies to you whether you're creating ebooks for yourself or for a client.

A style guide will help you settle on a specific design, style or color palette that should be applied throughout your entire ebook so your ebook can avoid looking incoherent and unprofessional.

If you don’t have the time to create a style guide, a brand kit is your next best bet. Use Visme’s AI-powered Brand Kit to create one for you instantly.

Visme’s Brand Kit automatically adds your branding elements to your editor dashboard so you can access them as you design your ebook or future projects.

It also suggests ebook templates for you that match your branding so you can avoid creating it from scratch or spending hours searching for the right one, helping you to save time and maintain brand integrity in one go.

If you prefer to create a style guide rather than using a brand kit, use this style guide article , equipped with best practices and templates, to get it done. It’ll walk you through how to:

• Select a color scheme .
• Create a font pairing .
• Brainstorm a general idea of textures and shapes .

Have all the styling information on hand, along with the content. There’s no greater timesaver than good organization. You don’t have to be a graphic designer to create a stunning, on-brand ebook.

The visuals you select for your ebook are just as important as their content. Not only do they make your content more visually appealing but memorable as well. Around 65% of the population are visual learners and remember 65% of what they see when compared to audio or text.

Of course, when we talk about choosing images and creating visuals, we first have to focus on the cover of your ebook.

Paper Raven Books Publishing found that studies have shown that up to 80% of people are initially interested in a book solely because of its cover, and up to 60% will choose to buy a book (even after reading the back cover) based on the visual design of the cover itself.

So yes, people do judge a book by its cover, whether you like it or not. But that puts a lot of pressure on you.

How do you know if you’re selecting the right or best image possible for your cover?

You have a few options! First, you can check out Visme’s image library. It offers a wide library of royalty-free images or videos you can use for your cover or in your ebook.

Option two: If you’re not too excited about searching for the perfect image, use Visme’s AI Image Generator instead. The tool can help you create the image you want rather than settling on an image as a last resort.

With Visme's AI Image Generator , you can bring your imagination into reality. Our advanced artificial intelligence technology lets you generate unique ebook graphics in seconds.

Simply describe the image you have in mind, and choose your image styles: photos, paintings, pencil drawings, 3D graphics, and more. Then, watch as our algorithm produces your idea with multiple options. Bring your fictional characters to life or present the best example of what your ebook has to offer.

For images or visuals you’d like to place in your ebook instead, be sure to consider the following first:

• What sections of your ebook would benefit the most from visuals?
• What type of visuals would help to fully illustrate your points, strategy or data?
• How many images should you include?

For example, let’s say that your ebook is on a study about how companies can generate sales, and you have a chapter on the sale of top companies over a ten-year time span. To help the reader visualize this information, add a line chart similar to the template below to demonstrate various company sales projections over the years.

As you go deeper into the context, you can add images or photos that demonstrate the elements or events that had an impact on each company based on the data you're sharing.

In Visme, you can also upload your own images, especially if they’re gathered from the research you needed to write your ebook. If you have low-quality, pixelated or blurry visuals, you can fix them up with Visme’s AI edit tools . With a few clicks, you can unblur and upscale images, erase and replace objects and remove unwanted backgrounds.

When it comes to adding charts, graphs, or even maps, Visme offers thousands of data visualization widgets and tools. You can also easily import data from Google Sheets if needed to help streamline your design process.

Lastly, don’t overdo it with the visuals—try to find the right balance to grab and keep your reader’s attention.

It’s time to put it all together and design your ebook. Here's a quick video tutorial to walk you through designing an ebook in Visme if you’re short on time:

Ebook Templates

Here’s a short selection of ebook templates you can use to create your own ebook. Each ebook template is professionally designed by an expert designer so all you need to do is customize them to your liking or brand.

Graphic Design Ebook

Remote Team Management Ebook

Documents Case Studies Guide

Baking Recipe Interactive Ebook

The Future of Event Marketing Ebook

Investment Fundamentals Ebook

Create your ebook View more templates

Alternatively, if you want more ebook design examples and templates to browse you can view our ebook template library . You’ll find tons of ebook design ideas to spark your creative juices.

Or you can log into your Visme account , click the “Create New” button in your Visme dashboard, then click on the option “Projects” then “Documents” and choose the ebook icon to browse our free ebook templates. Select a template and enter the editor.

If you change your mind later about the template, it’s easy to change. All templates are available on the left-hand panel inside the editor.

Some people like to follow the template as is and insert their content into the allocated sections. Others prefer to use the templates as inspiration and then create from scratch. 

The Visme editor will let you do it either way. With the help of pre-designed content blocks under the Basics tab, you can customize the template or blank page as you wish.

Start designing page by page, entering the text and visuals until you've customized it completely. Check all the pages to ensure you have a balance of text and visuals. 

If you need to create more visuals, you can do so with the content blocks. There are charts, graphs, icons, illustrations, stock photos and more available in the left-hand panel as well.

Follow your style guide to choose the fonts and change the colors. To change the colors on all the pages at once, click on Theme Colors in the left-hand panel. The pop-up will show you the default color palettes. Use one of these or create a new one. 

To create a new palette, click on any color in the design. Find the right color in the color box and click “replace all” in the little box below. Use hex numbers if you have them. Change all the colors in the e-book to your color palette and save it for future reference.

Here are some quick tips for achieving balance:

• Use the same font, size and color for all subtitles.
• Use the same font, size and color for all the text body.
• Don’t place images behind the main text body. It’s always best to use a white or light background for easy reading.
• Break up long text with memorable quotes. Either inside the text or as a colored visual.
• Keep similar styles for all the paragraphs. Justified is usually the preferred style for e-books. Avoid short words like “and” at the end of lines.
• Leave spaces between text and visuals.
• Use a similar formatting style for all the visuals. Avoid unnatural drop shadows and excessive borders.
• Don’t forget the page numbers. Have them in the same position on all pages except the title page. Use the same font, size and color for all of them.
• If your e-book is longer than 15 pages, include a table of contents on the page after the title. Make it easy to read by keeping page numbers aligned vertically.
• Add contact details and an author bio at the end of the e-book. Include a professional photo of yourself or the author.
• Proofread the entire thing. Even if your initial text was perfect, copying and pasting can lead to mistakes such as missing letters and double words.

Another easy and quick option to create your ebook is using Visme's AI designer . This tool will work as an AI ebook generator and help you generate a complete ebook by simply providing text prompts.

All you need to do is explain what you want the tool to do, and it will produce the entire ebook, including images, text, and everything else. You can then edit and customize the ebook in the Visme editor to give it the finishing touches.

Once your ebook is ready, it's time to offer it to your audience. You'll need to decide how you'll distribute your ebook.

Will you be giving it away in exchange for email sign-ups, selling it on your website , or using ebook selling platforms like Amazon?

Visme provides a wide range of sharing and download options, so you can pick the option that works best for you.

If you're using your ebook for lead generation , providing it in exchange for growing your email list for future marketing, then follow these steps:

• Create a sign-up page with the email marketing tool of your choice or use Visme’s Lead Generation Form Builder .
• If you’re already using Hubspot or MailChimp, you can integrate it with Visme for more intuitive interactions and to save you from jumping from tool to tool.
• Download your ebook as a PDF, a shareable link so it's easily shared online with Visme or embed it on your confirmation landing page.
• Then share your sign-up form via the landing page or shareable link. Be sure to send a thank you note with each email confirmation.

If you plan to sell your ebook, research which platform you'd like to sell it on and learn about their publication requirements. If you're using your website, you can keep it as a PDF or convert it to EPUB format for accessibility to Kindle readers. For more on this take a look at our guide on How to Make Money Selling Ebooks .

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Once your book is done, it’s time to promote it.

Mastering how to make an ebook is only half the battle won; the other half is about promoting it so that it reaches your target audience.

There are many different platforms and ways to market your ebook .

Apart from the signup or buy now button on your site, don’t forget to do plenty of social media marketing and email follow-ups.

Start by using the same style guide or brand kit you used to design your ebook to create newsletters , social media graphics and various online ads to get the word out. You can even use a mock-ups of your ebook to get your target audience's attention and show them how your e-book will solve their problem.

Share them where your readers hang out. Get their attention, show them how your e-book will solve their problem. Send an email to your subscribers with a link to download the e-book. Ask them to share it with interested friends.

Do Facebook Live videos and share Instagram Stories where you talk about your new ebook. Tell your followers a little about what’s in it and show them the table of contents. Create an animated video for extra attention.

Write an article on your blog about your ebook. Promote your ebook on your homepage. Ask some of your readers for testimonials about the book and include them in the article. 

You can also create a landing page where you show the ebook cover, a little description and a sign-up form. An exit pop-up for your website might also be a good idea. Read this guide on how to make great exit pop-ups.

Just be sure to keep SEO in mind when optimizing your landing page to ensure that Google properly indexes and ranks your ebook.

Read this article to learn 15 proven ebook marketing strategies to promote your book successfully.

Out of all of the steps in this quickstart guide, this is by far the most important. You won’t be able to create and promote your ebook unless you have both quality content and quality design.

This is why it’s essential to take advantage of the right ebook software so that you can easily put together an eye-catching ebook that your audience can’t wait to dig their teeth into.

Visme is a great ebook software choice so that you can write your content, pop it into a professionally designed template, drag and drop your own visuals and data visualizations and download and share with your audience.

So, if you are searching for the best ebook creator, Visme stands out as a top contender, blending ease of use with powerful design tools.

If you’re running on a tight schedule and you need to create an ebook quickly, you can use Visme’s AI document generator. Just input your prompt , provide more context, and choose your preferred template design and the tool will generate an ebook in just a few seconds.

Even after you’ve shared your ebook, Visme offers analytics so you can view how many people interacted with your audience, if they completed your ebook and so much more.

Looking for an Ebook Software?

Look no further than Visme. Sign up for your free account or learn more about all of the benefits Visme has to offer your team beyond just ebooks. Create high-quality visual content that your audience will love.

Find a premade template, input your brand information and put together a professional ebook that will help you to generate leads and increase revenue.

Still a little anxious about getting started? Don’t worry, that’s always the hardest part. To help ease your fears, we’ve put together helpful tips for the most common questions around ebook preparation and creation.

Q1. How do I create my own ebook?

Simple—just follow the eight steps outlined within this article! Always start by writing your content first before choosing a template or design style and inputting your content. This ensures your ebook design perfectly encapsulates your content.

Q2. What is the best software to write an ebook?

Visme is the best software for creating not only an ebook but any other type of visual content your business might need, from marketing materials to invoices to presentations and more.

Start with a template, insert your brand information, place your content within the page design and download it to share with your audience.

Other software may include Canva, InDesign or Microsoft Word, but Visme will help you generate the best results for the best cost.

If you're looking to produce a professional-quality ebook, choosing the best ebook creator is a critical step.

Q3. Is selling ebooks profitable?

Creating and selling ebooks can be a great way to make passive income through your business. To learn more about how to make a digital book and sell it, check out our post here .

Q4. How do I create a PDF ebook?

You can easily create a PDF ebook with Visme if you have a premium account. Once you’ve finished your ebook design, simply click the Download button and select the PDF files option to download your ebook as a PDF.

Q5. What types of ebooks sell best?

While fiction ebooks do outsell nonfiction ebooks, business, money and self-help ebooks are still in the top 5 of bestselling nonfiction ebooks . 

Free ebooks can also be used as lead magnets for your business to get potential customers in the door and opt in to your email list.

Q6. Is publishing an ebook worth it?

Yes, ebook publishing can be completely worth it! You can always choose to publish your ebook for Amazon Kindle or Nook ereaders, which can be a great way to create passive income. In that case, you’ll have to convert your content to the EPUB or mobi ebook format. 

However, you can also make the process easier on yourself and simply host a PDF version on your website.

Q7. Is an ebook the same as a PDF?

An ebook is not the same thing as a PDF, however a PDF can certainly be an ebook. PDF is one of the many file formats available, and it stands for Portable Document Format, and is simply a file type for online documents, guides, ebooks and more.

Q8. How much does it cost to create an ebook?

You can create an ebook completely free by signing up for Visme’s ebook creator today. Many businesses and individuals consider Visme among the best ebook creators due to its user-friendly interface and advanced features.

Q9: Can I sell my ebook on Amazon?

Yes! You can absolutely sell your ebook on Amazon, the world’s biggest ebook store. Well-presented ebooks with great covers and great interior design will attract customers and make you money. There are some great resources out there teaching you how to get your ebook selling.

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About the Author

Orana is a multi-faceted creative. She is a content writer, artist, and designer. She travels the world with her family and is currently in Istanbul. Find out more about her work at oranavelarde.com