Custom Market Research: What it Is & How To Do It Like Experts

Whether you’re a new business looking to enter a new market or an existing company looking to grow, custom market research is an essential tool.

When deciding to offer new products or services, it is helpful to identify what your customers require and desire.

But what exactly is market research, and how can you conduct it effectively?

Read this article to discover more about custom market research, its various varieties, and how to perform it.

Also read – How Digital Marketing can Help with Business Growth in 2024

What is custom market research?
Why is it important to conduct custom market research?
Types of market research
- 1. Primary research
- 2. Secondary research
Most common methods of Market Research
How to conduct custom market research
FAQs
Final thoughts
References
Recommendations

What is custom market research?

Custom market research is the act of gathering and analyzing data on a certain target market to better understand existing or potential customers’ behavior, needs, and preferences.

A corporation can employ market research in a variety of situations:

Market research for a new product or service allows you to identify potential clients and determine their level of interest in the new launch ahead of time.

Market research is used to develop marketing personas for existing or new products and services.

Using research-based personas allows firms to reach customers more effectively and make their products more appealing.

Custom market research for competitive analysis is to identify rivals’ strengths, weaknesses, and market positioning with your own organization.

Custom market research for customer satisfaction and loyalty measures customers’ satisfaction with the items and services provided. The analysis also provides insight into the overall consumer experience.

Market research for brand recognition seeks to determine how aware people are of your brand.

Market research allows you to examine prior marketing strategies to improve future campaigns.

Custom market research can be conducted internally or outsourced to specialized businesses or market researchers.

It can use various tools and procedures, including surveys, interviews, focus groups, observations, and data analysis.

Why is it important to conduct custom market research?

There are various reasons why custom market research is vital to your business:

1. Understanding Customers

The success of your product (and, by implication, your business) is determined by how well you understand your target audience.

Custom market research is the only way for firms to understand customers’ needs, preferences, and behaviours.

The knowledge gathered during the research can then be used to adapt products and services better to satisfy those requirements.

Consider the example of Starbucks, a multinational coffee corporation noted for its customer-focused approach.

Starbucks uses custom market research to learn customers’ tastes and adjust its products and services accordingly.

It constantly improves its product assortment by reviewing industry reports, polling baristas for feedback, and allowing customers to express their ideas on a dedicated website.

One such example is the introduction of plant-based milk alternatives.

Custom market research assisted the company in identifying a consumer need for plant-based milk alternatives.

In response to research findings, Starbucks launched several plant-based milk substitutes, including almond and coconut milk.

This action helped the organization stay current with their clients’ tastes.

Also read – Here are the Top 6 Crypto Exchanges Nigerians Can Use for Buying/Selling Bitcoin in 2024

2. Identifying Opportunities

Custom market research can help you understand your target market and economic trends, allowing you to identify new opportunities.

For example, you could identify a customer demand that other businesses have yet to address and launch a new product.

Alternatively, you may discover a feature that will make it easier for users to utilize your service, increasing adoption.

This can generate new revenue streams and drive business growth.

It may also result in a significant shift in strategy, such as switching from a vertical to a horizontal marketing structure.

3. Assessing competition

Analyzing rivals’ strengths, weaknesses, and plans can help you enhance your product’s market position and discover areas where your company might obtain a competitive edge.

For example, you may survey your clients to learn what other brands they favor and what makes your product stand out.

4. Managing risks

Custom market research is your safety net for business strategy and fresh ideas.

It enables you to identify the risks and problems associated with entering new markets, releasing new goods, or executing new marketing tactics, thereby helping to reduce mistakes.

For example, pharmaceuticals (almost 17%) and media and entertainment (nearly 16%) are the industries that spend the most on market research.

And it’s no surprise that these businesses invest heavily on research.

The cost of hurried judgments for both businesses may be significantly more than they spend on market assessment.

5. Supporting decision-making

Custom market research can give significant information for strategic decision-making in all areas of your business, including product creation and pricing, distribution, and growth strategies.

Also read – Wema Bank Suspends 4 Fintech Partners, Permanently Removes 3 Others

Types of market research

Custom market research is classified into two groups based on the source of information.

1. Primary research

Primary market research is when you (or a company you hired) collect original data directly from your customers or competitors to achieve certain study objectives.

It provides information on consumer preferences and market trends, allowing you to make informed decisions regarding your product or service.

Primary research may be exploratory or specific. Exploratory research is commonly conducted at the early stages of market research.

The procedure consists of open-ended interviews or surveys. It aids in identifying a topic for future research or gaining a better knowledge of a problem or business opportunity.

Exploratory research addresses complicated challenges and determines the primary causes of specific customer preferences or behaviours.

Primary market research usually follows exploratory research and focuses on a specific issue uncovered during the previous stage.

It can also test an idea discovered earlier in the research process.

Unlike exploratory research, particular research seeks precise and conclusive facts to inform decision-making.

Nike is one of the companies that has successfully used primary research.

The organization analyzes user experience and preferences using app data.

After gathering feedback from Invincible model wearers, it released a new, more comfortable running shoe.

Nike recently polled one of its app users in Japan about collaborating on a special release.

2. Secondary research

Secondary market research is when you or a company you hired collects and analyzes existing information from others.

You can use data from government polls, industry publications, and past studies.

Assume your organization wants to determine market preferences for electric vehicles (EVs).

You might begin by studying industry reports from research businesses that provide information about EV market trends, customer adoption rates, and variables impacting buying decisions.

Furthermore, you can use statistics from social media platforms, automobile forums, and EV enthusiast websites to assess public opinion and interaction with EV-related content.

Tracking hashtags, monitoring discussions, and evaluating user reviews might help discover recurring themes and issues among potential EV purchasers.

You might be wondering which custom market research type is best for you.

Both primary and secondary market research are valuable and have their applications.

Primary research is substantially more expensive, yet it yields the most useful information.

Secondary research provides a broader grasp of the subject and is less expensive. In most circumstances, it’s best to utilize both.

Also read – Top 10 AI Innovations That will Change Our Lives in 2024-2025

Most common methods of Market Research

Let’s look at the most common approaches for conducting custom market research:

1. Surveys

Surveys are one of the most used custom market research methodologies.

It allows you to collect information directly from clients using structured questions.

Surveys can be done online, over the phone, through direct mail, or in person.

Surveys’ flexibility allows you to design questions to your specific research objectives, such as analyzing client wants or collecting demographic data.

You can collect quantitative data using multiple-choice and qualitative data using open-ended questions.

Surveys can also be sent via email to your consumers. This is an effective technique for learning how clients rate your items and services.

This method is also advantageous for respondents because they can provide leisurely comments.

2. Personal interviews

Personal interviews are one-on-one talks between the researcher and the participant.

Unlike surveys with fixed questions, interviews allow you to ask more questions and receive more detailed responses.

You can delve deeply into why someone feels or acts as they do.

Another significant advantage is that personal interviews promote trust.

When people speak directly to someone, they feel more at ease sharing their opinions and experiences.

This honesty provides insights that other approaches may not provide.

Also read – The 10 Best AI Voice Generators in 2024

3. Focus groups

Focus groups gather a small group of selected participants from the company’s target market to provide feedback on the products or services often conducted with research professionals’ assistance.

A qualified moderator facilitates a group conversation regarding the product and the user experience.

They allow people to actively participate in dynamic discussions, exchange ideas, and share insights that may not be found in traditional surveys or individual interviews.

At the same time, focus groups can pressure some participants to agree with the majority of the group or remain silent.

When conducting custom market research with focus groups, it is critical to consider human psychology.

4. Competitive analysis

Competitive analysis involves investigating your key competitors to understand more about their products, services, and marketing tactics.

The analysis entails acquiring information on competitors’ products, pricing methods, and client demographics.

Analyzing your competitors’ strengths and shortcomings allows you to estimate your company’s competition and uncover opportunities for growth and development.

For example, suppose you learn that a rival excels in customer service but falls short in product innovation.

In that case, you might seize this chance to develop innovative items while delivering excellent customer service to differentiate your company.

Also read – WeCare Raises $350000 to Accelerate Innovation in the Lab-grown Diamond Sector

5. Internal data analysis

This strategy entails examining data generated within the company to get insights into the performance and effectiveness of its business processes.

Analyzing internal data such as sales numbers, customer demographics, and website traffic can help you better understand your operations and find areas for improvement or optimization.

One technique to use internal data analysis is to assess the success of your email marketing.

You can compare your campaigns and devise new strategies using open rates, click-through rates, conversion rates, and unsubscribe rates.

6. Market segmentation

Market segmentation is a popular approach for dividing a target market into smaller segments based on similar qualities or habits.

Demographics, psychographics, geographic location, and behavioural attributes can all be used to segment audiences.

Market segmentation enables businesses to adjust their marketing strategy and provide solutions that address the demands of each category.

How to conduct custom market research

Conducting custom market research is easy if you follow the steps listed below:

1. Define the problem and goals

The first stage in custom market research outlines the study objectives and problems.

At this point, you should identify specific difficulties, barriers, or areas of concern that your company intends to address during the study phase.

Your difficulty may be with product positioning. Then, your objectives may include comprehending consumer preferences, identifying competitors, or assessing market trends.

2. Determine your target audience and research method

Next, establish who your ideal consumers are. Consider demographics like age, gender, income, education, occupation, geography, and household size.

Consider psychographic traits such as interests, values, lifestyle, attitudes, and purchasing behaviours.

Once you’ve determined who to contact, you may adjust your custom market research methods to collect the most relevant information.

Also read – FinTech in Africa: Top 10 Female Managers that are Changing the Narrative in Africa’s FinTech Industry

3. Gather data

Once the previous two procedures have been completed, it is time to collect data using the custom market research method you selected.

Secondary research can be used with primary research methods.

To ensure the quality and dependability of data gathering, the study must be carried out consistently and according to plan.

4. Analyze the data

The following stage is to examine the data acquired throughout the research.

This is where raw data is converted into actionable insights that support strategic decision-making.

Search for trends, behavioural patterns, and other tendencies in a large amount of data gathered.

5. Draw conclusions

Following the data analysis, you must summarize the primary findings—the most essential items you learned.

These findings contribute to a deeper understanding of the topic, assist decision-making, and generate ideas for future research.

FAQs

What exactly is custom market research?

Custom market research is tailored data collection and analysis to meet a specific company’s unique needs and objectives.

Why should businesses invest in custom market research?

It provides precise, relevant insights that inform product development, marketing strategies, and decision-making, offering a competitive advantage.

What steps should a business follow to conduct custom market research effectively?

Define objectives, design the research, collect and analyze data, report findings, implement insights, and review and refine the process.

Final thoughts

To summarize, custom market research is an effective instrument for increasing sales and attracting new customers by providing useful insights into their preferences and industry trends.