Do you really know your market? Do you have insight as to what their needs are or are you just basing all of your marketing on a guesstimate? Making assumptions is a really bad idea.
The truth is that you have a lot of different data coming in from a number of different sources but that doesn’t mean a whole lot if you aren’t utilizing it properly. Business research is essential for your e-commerce platform if you ever want to get ahead of your competition.
Information is extremely powerful because it helps you make the most important business decisions. Without the right information, you would just be making guesstimates and you know what I think of those.
Here are some of the business research benefits to your e-commerce business.
1. Better communication with customers
Market research will reveal the most efficient ways to communicate with your current and potential customers. You should learn as much about them as possible. With an e-commerce business, the best ways to do that are going to be through surveys, reviews, and social media. The more you’re able to communicate with customers, the more you will learn about them.
2. Identify marketplace opportunities
Business research will show you gaps in the marketplace that are waiting to be filled. You might find a need for a new product that you would have otherwise never known about. In e-commerce, it’s essential that you be able to spot trends the moment they start to take shape. It helps you set up products and services that are designed to suit your audience.
3. Minimize risk
Business research will help you make important decisions. The more information you have, the lower your risk is going to be.
For instance, you might decide that it’s a good idea for your e-commerce shop to specialize in a specific genre but when you do the research, you realize that the market is already saturated. That would save you valuable time and money. Instead, you can find a more appropriate genre.
4. Measures your reputation
I cannot overemphasize the importance of reputation in e-commerce. It means everything! Would you buy a product from a business with a one-star review on Amazon? Of course not!
Research will help you gauge exactly how your customers measure you against the competition before they start turning into negative reviews. This allows you to take action quick enough to mitigate the damage.
5. Identify potential problems
Another huge benefit of business research is that it identified potential problems that might come up in your e-commerce business. You can gauge the reaction of customers for a new product before actually putting it onto the market. E-commerce shops cannot afford to make mistakes. As we see on a daily basis, one tiny mistake can have disastrous consequences.
6. Helps you plan
Imagine being able to accurately estimate the return on investments (ROI) of a new marketing campaign or estimating the sales of a new product. You might be surprised to learn that large businesses are able to do just that – and they do it with a high level of accuracy!
By learning to properly use business research as part of your overall strategy, then you will be able to do the same thing.
7. Learn about new trends as they form
If you make research a standard part of your business, then you will be able to spot new trends as they form. That will allow you to jump on board before they explode, as opposed to trying to take advantage at the same time as everyone else. When you reach a certain level, you can even learn how to create trends.
Business research is a valuable tool that will help your e-commerce shop reach new heights. If you are not keeping a close eye on your market, then you’re not doing it right!
Adeyemi Adetilewa is the founder of Ideas Plus Business, online brand strategist, digital marketing consultant, and cryptocurrency enthusiast. He writes about business, marketing, and technology. Featured on the HuffPost, Evan Carmichael, Thrive Global, and several other publications.