I love to conduct market research. It’s a great way to find out what your target audience is thinking and feeling about your brand, product, or service.
That being said, I’ve found that more often than not, people waste their time conducting market research because of some simple mistakes they’re making along the way. Here are my top reasons why people waste their time when it comes to doing market research
|1. Balancing Act: Market research can sometimes be a double-edged sword, requiring a balance between its potential benefits and the resources invested.|
|2. Precision Matters: Focusing on targeted research rather than excessive data collection can prevent wasted time and effort.|
|3. Relevance Check: Ensuring that research questions are aligned with business objectives helps avoid irrelevant findings.|
|4. Actionable Insights: Prioritizing actionable insights over extensive data accumulation leads to more effective decision-making.|
|5. Adaptation is Key: Adapting research strategies to evolving market dynamics ensures that efforts remain relevant and valuable.|
You Don’t Know How To Do It
This is a common problem, and it’s the result of a fundamental misunderstanding that many people have about market research. They think they are doing market research when in fact they are just asking questions and hoping for answers.
Without knowing how to ask the right questions and interpret the results, you can’t use market research to make decisions or improve your business.
So if you’re not sure how to do this type of work yourself, then find someone who knows what they’re doing a professional researcher who has experience collecting and analyzing data from surveys and focus groups and ask them to help guide you through the process.
When delving into the world of marketing research, don’t let uncertainty hold you back. Learn how to navigate the process confidently with our guide on market research without feeling dumb, and gain insights that empower your decision-making.
You’re Estimating Instead Of Measuring
Estimates are not accurate, precise, repeatable, consistent or useful. They can’t be scientific or objective and they’re not reliable either.
That’s because estimates are made by people who have their own opinions about things which means their answers may differ from other people’s answers, even if they’re asked the same question in a market research survey.
Estimates are also unreliable because everyone has different ideas about what constitutes a “typical” customer segment or customer experience.
For example, some people may think your customers have low incomes but others will think that most of them earn above-average salaries – so which one is right?
Is marketing research always necessary for boosting sales? Not necessarily. Discover strategies to increase your sales without extensive research in our article on selling more without marketing research, and find out how intuition and innovation can play a vital role.
The Numbers Are Meaningless
What does it mean when you’re told that 30% of your target audience is interested in product A and 25% are interested in product B?
How do you know if those numbers are accurate? How do you know where they came from? Was the survey conducted online or through phone interviews? Was it done in person or over email?
If it was online, did the respondents have to click on a link that led them to a survey form of some sort, or were they directed to a special page where they could fill out their responses without leaving the website (a technique called “exit intent”)?
And what kind of questions were asked during this survey: multiple-choice, open-ended response fields for text answers and/or illustrations, etc.?
What does this say about your company’s research methods that are, how useful are these results going forward if there’s no way to back up those numbers with any sort of confidence whatsoever due to so many variables involved with collecting data in this manner (which isn’t even remotely scientific)?
You’re Making Assumptions About The Data
You can’t assume anything about your data. You need to test your assumptions and check for bias, validity, reliability, and accuracy. This is where many marketers go wrong with their market research.
Do you want to know if customers are likely to buy a product or service from you? Well, that’s not enough information: who are these customers?
Where do they live? How old are they? What kind of car do they drive? Are they married or single? Do they have children at home or not? Do they vote Democrat or Republican (and why)?
As you can imagine, this gets complicated very quickly so much so that marketers often don’t bother asking questions like these when conducting market research because it takes too much time and money!
You’re Acting On Bad Data
It’s easy to see a well-designed chart or report and assume that it’s accurate. But data is only as good as the quality of the research, survey, analysis, and reporting behind it. A poorly designed survey will produce useless results.
An analysis that ignores outliers can skew results in an unpleasant direction for you. If you make faulty assumptions about your customer base (like assuming everyone uses smartphones), then even accurate findings might be off-target.
To ensure your market research is as effective and useful as possible:
- Consider hiring an objective third party to conduct or oversee your surveys if you’re not familiar with best practices or don’t have time to manage them yourself
- Choose reputable companies when outsourcing surveys so they can use their expertise to help guide you toward better results
Marketing research is both an art and a science, requiring a delicate balance between methodology and creativity. Dive into the intricacies of this field with insights from our exploration of the art and science of marketing research, and uncover how a holistic approach can yield impactful results.
You Ignore Your Gut Feelings
It’s important to listen to your instincts and use them as a guide for making decisions in your business.
When you see a problem that needs to be solved or an opportunity that needs to be taken advantage of, listen to that inner voice telling you that it could work because in many cases, it will.
If you have the chance to create something new and different in your industry without taking any risks, then do it! You’ll never know what might happen if you wait around hoping for someone else to take action first (or worse yet: not taking action at all).
You’ve Failed To Identify Your Core Goals
Before you can measure the success of your marketing efforts, you first have to be able to articulate what those efforts are supposed to achieve. If you don’t know where you want to end up, how can anyone else?
The most common mistake that many marketers make is not keeping their goals in mind while they work through their research process.
This is especially true when it comes time to measure which channels are performing best and why if a marketer doesn’t know the desired outcome of his or her campaign.
Before collecting data on its performance (or lack thereof), he or she will never really be able to understand what’s going on and make changes accordingly.
You’re Not Using The Right Metrics
The most important thing to understand about metrics is that they’re not just a tool to help you measure your business. Metrics are also an essential part of defining the future of your business.
For example, it’s easy to say that you want to grow the number of clients you work with by 20% in five years but what does it mean for your company?
What does that growth look like? How do we know if we’re on target? If we aren’t on target, how should we change course as quickly as possible?
This is where metrics come into play: they provide clarity around actions and goals so that everyone in an organization understands what success looks like and how they can contribute towards achieving it.
Revolutionize the way you approach marketing research by exploring innovative methodologies. Our article on revolutionary marketing research introduces you to cutting-edge techniques that challenge traditional norms, offering new perspectives for insightful decision-making.
You Ignore Your Existing Data
When you’re looking for data, it’s easy to get caught up in the idea that new is better. New data is more exciting and brings more opportunities for discovery. But when you’ve already got a ton of existing data at your fingertips, why would you need new market research?
It’s important to remember that not all kinds of market research are equal. Different types of analysis will give you different insights about your customers and their preferences and some may not be useful at all.
For example, if you already have customer reviews on Amazon, or if the information your team has collected over years of customer service calls contains information about what sort of customers call most often.
Or how frequently they call in with questions about specific products (which products they’re looking for), then there’s no reason to collect more reviews or set up a phone survey asking people who bought one product whether they’d like another similar product instead;
This falls into what I call “reinventing the wheel.” You don’t need market research; there’s plenty of existing data already lying around waiting to be analyzed!
You’re Collecting Too Much Data And Acting On Too Little
Collecting data is easy, but acting on it is hard. The more information you have to process, the more difficult it becomes to identify exactly which bits are useful and which ones aren’t.
When you’re overwhelmed by a flood of information, it’s tempting to just collect as much as possible because there’s always “more where that came from.”
But this strategy can lead to paralysis: once you’ve amassed enough data points that no single one seems important anymore, you may end up paralyzed by indecision about how to proceed with your efforts at improving your company or product.
Instead of getting stuck in this cycle of inaction and analysis paralysis, take steps toward identifying what kind of information will help guide future decisions most effectively:
Focus on the questions that matter most for making those decisions now and leave somewhere for breakthroughs later!
Not all marketing research sees the light of day, but the lessons from untold studies can be invaluable. Delve into the world of undisclosed insights with our piece on exposed marketing research, and uncover the hidden gems that could reshape your understanding of the market.
Your Survey Doesn’t Provide Any Context For The Responses
The problem with the survey is that it doesn’t provide any context for the responses.
The questions are relevant, clear, and unambiguous, but there is no way of knowing if they are appropriate for the situation.
It’s like asking someone how long it takes them to get dressed in the morning: there isn’t a right answer because everyone has different clothing preferences, physical challenges, and schedules.
The Questions Don’t Make Sense
You’ve probably heard that market research is a waste of time. The question is, why?
There are many reasons that market research can be wasteful, but the most common are:
The questions don’t make sense. People don’t always understand the questions they’re being asked, or they misunderstand the intent behind them. It’s important to have clear and concise questions so that you get accurate results from your survey data.
Open-ended questions are great because they give respondents flexibility in how they answer; however, this also means that there’s more room for error when collecting data from your surveys (and it could mean less accurate information overall).
The questions aren’t unbiased. If you ask someone what their favorite food is when asking about their preferences for restaurants in an area where there are only fast food chains available (or if you ask someone which type of food they’d like to eat while standing next to a buffet).
Then your results will most likely not reflect reality because those people would have already made up their minds before even starting the survey!
You want unbiased answers and part of achieving this means keeping yourself out of it by asking impartial questions about things like personal preferences rather than trying too hard at first glance at getting answers out quickly (which usually happens anyway).
The Questions Are Leading, Biased Or Prejudicial
A common mistake that organizations make is to ask leading questions. For example, a question like “Do you prefer the product with a blue label or a red label?” is trying to influence respondents’ answers.
This problem can be avoided by asking neutral questions and letting them choose their answers. One way to do this is by offering respondents multiple choice answers that are not leading in nature, such as “Which product would you most likely buy?”
You can also ask open-ended questions, which allow people to answer freely and give you more information about their preferences than closed-ended ones would.
For example: “Tell us how much money you spend on products like these each year?” vs “How much does it cost for every purchase?” Another option for getting unbiased responses is asking people about things they don’t care about (e.g., price).
The key here is creating scenarios where there isn’t any pressure on them to respond in any particular way;
If they feel pressured or forced into giving certain answers then your results will be skewed towards those who have chosen those options because they felt obliged rather than because those options were genuinely their preference or intention!
All Of Your Feedback Is Negative And Personal Criticism
If you’re getting a lot of negative feedback, it might be time to consider whether the market research is helping you. If the answer is no, then consider taking a step back.
If all your feedback is personal criticism from one person or small group, then it’s probably time to ask yourself why that person has such a big problem with what you’re doing. That can be an eye-opening experience for everyone involved!
Your Sample Size Is Too Small To Be Representative Of The Whole Population You’re Studying
Finally, no matter how hard you try, your sample size will always be too small to fully represent the whole population of people you’re studying. When it comes to market research, the more data points you have, the better.
You can never have too much information or so we thought! That’s because there’s an inverse relationship between sample size and margin of error (the maximum error possible for a given level of confidence).
As a result, even if you had unlimited resources and time at your disposal, it would be impossible to collect enough data points to eliminate sampling errors from your results.
For example: If I wanted to run a survey asking questions about my favorite flavors of ice cream (say chocolate mint chip or butterscotch ripple).
I could do one thing very easily ask everyone in my town who knew me well enough not just what their favorite flavor was but also whether they liked me back enough not only to tell me that information but also where I could find both ice cream stores nearby so that I could buy some for them!
However if instead, we were trying something less personal like collecting opinions about someone else’s marketing strategy.
Then suddenly finding even 10 people willing to participate might prove difficult unless they already happen live near each other or work together regularly (which would make our margin of error smaller).
And even then there’d still be some chance that our results wouldn’t reflect reality accurately because they weren’t representative enough
Your Sample Group Doesn’t Reflect Your Target Market At All
It happens more often than you would expect. You set out to do a study of the target market for your product or service, and end up with a sample group that does not reflect the demographic makeup of your actual audience at all.
This is particularly true if you’re doing an online survey or poll, where anyone can participate.
A quick Google search will show you an example after example of companies who thought they were talking to their target audience when they did research, only to learn later that they were wrong in their assumptions.
The reason this happens so often is that most people don’t know what their target market looks like until they’ve already started researching them.
But they’re still hoping against hope that what they’re finding out now will be accurate once they launch their product or service into the wild (or whatever).
This leads them down a path where every time someone answers “yes” about something important about being a member of this imaginary group… well then there’s another confirmation that yes indeed it must be true!
In conclusion, market research can be a useful tool for any business but is not always effective at predicting the future of your company. Just because something worked once does not mean that it will work again or that it will continue working indefinitely.
Consumers change their habits and preferences all the time so doing one set of market research may not be enough to keep up with what’s happening in today’s world.
Here are some additional resources that provide insights into the importance and challenges of market research:
Why Market Research Is Important: Discover the significance of market research in guiding business decisions and understanding consumer behavior.
7 Reasons Why Traditional Market Research Is a Waste Of Time: Explore why traditional methods of market research might not always yield the desired results in today’s dynamic business landscape.
Why Market Research Fails: Gain insights into common pitfalls and factors that can lead to the failure of market research initiatives.
What is the significance of market research?
Market research plays a crucial role in understanding customer preferences, industry trends, and competitive landscapes. It provides valuable insights that guide strategic decision-making.
How does traditional market research compare to modern approaches?
Traditional market research methods may fall short in capturing real-time insights and keeping up with rapidly changing consumer behaviors. Modern approaches, such as data analytics and online surveys, offer more dynamic and accurate results.
What are some challenges that market research can face?
Market research can encounter challenges such as biased sampling, inadequate data analysis, and difficulties in interpreting consumer sentiments accurately.
Can market research ever be considered a waste of time?
While market research is valuable, there are instances where it might not lead to actionable outcomes. Poorly designed research strategies or misinterpretation of results can make it seem like a waste of time.
How can businesses ensure the success of their market research efforts?
To ensure successful market research, businesses should define clear research objectives, use a combination of quantitative and qualitative methods, and continuously adapt their approaches based on changing market dynamics.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.