Important decisions require reliable information. That is why market research is essential for any good manager.
Whether in marketing, sales, customer experience, or various other areas.
After all, today’s market demands that every manager have a holistic and strategic view of the business.
But what does it take to make good decisions?
In a word: knowledge.
Knowledge of the factors that impact the company’s performance. That is, regarding:
- your client;
- the competition;
- the company's own processes.
And market research provides valuable insights into these factors.
In this way, they broaden their business perspective and enhance their knowledge.
That is why they are a key tool in managing any business.
So, here's how to use market research
If you want to make informed decisions based on facts and real insights, you need to understand the benefits of conducting market research.
In this article, we present 5 examples of how it helps you make good decisions. 😉
5 decisions backed by market research
Please note: All examples shown are real cases, and their publication has been authorized by Mister O’s clients.
Check it out below. Enjoy the read!
1. Business Expansion (FIESC)
Some time ago, FIESC (the Federation of Industries of Santa Catarina) found itself at an impasse. Should it open a school in a certain region, or not?
To answer that question, the administrators commissioned a study to assess the potential for opening a school in the region.
But even after conducting market research, the administrators still had doubts about whether the school’s profile would meet the expectations of local residents.
So they commissioned a survey of residents to hear their opinions.
What is the purpose of this market research?
To determine whether local residents were interested in enrolling their children in a school like Escola S. To understand the hopes and wishes of parents in that community.
How was the study conducted?
In summary, the study involved interviewing local parents.
And what insights did the research provide to managers?
The result was unexpected. And the managers were really surprised!
In other words, parents in that region were very interested in having access to the facilities and benefits that a private school offers. They also highlighted the need for more private schools in the region. 👨👩👧
The moral of the story: the research was a key factor in FIESC’s decision to invest in an S-school in that area.
2. Product Development (Arkos Digital)
Arkos Digital is a company that specializes in developing customized digital products.
In this regard, as part of its portfolio of solutions, it also offers marketing consulting services.
That’s why, before creating a digital product, she seeks to validate her client’s hypothesis.
But how can you know that?
Arkos has hired Mister O.
And what were the objectives of this market research?
To test the hypothesis that there was demand for the app.
In addition, collect data on the target audience’s behavior and preferences.
How was the study conducted?
In total, 806 online surveys and telephone interviews were conducted.
And what insights did the research provide to managers?
In short, the surveys confirmed that there is a demand for a new app.
In addition, they provided data and insights that enabled Arkos to develop features and content better aligned with the preferences of its target audience, thereby optimizing the user experience.
3. Pricing of products and services
Note: Since the information provided below is sensitive to our partner companies’ business operations, we will not disclose any details that could identify them.
In any market segment, setting prices is always a major challenge.
After all, any change has a direct impact on the company's financial results. In fact, it can have a positive impact.
According to Endeavor, a 1% increase in price results in a 9% increase in operating profit.
Therefore, if you know what your competitors are charging, you can set prices more effectively. And, of course, increase your business’s profitability.
That is why some of our customers constantly monitor their competitors' prices.
Others commission a one-time survey. For example, once a year, or before expanding operations into a new region.
In retail, the biggest challenge is keeping track of the number of competitors.
When it comes to services, prices are less transparent. That’s why you often need to request a quote to find out the price.
In this case, mystery shopping is conducted by an anonymous evaluator who poses as a customer. This allows them to gather information on pricing, quotes, sales materials, and customer service processes—including through photos, audio, and video recordings. 🕵🏻♀️
4. Product testing (Face Unic case)
Consumers are the best source for gathering data on a product’s features and gaining insights to improve their shopping experience. 💡
In the facial aesthetics sector, the Face Unic clinic chain conducted research before launching certain products, thereby avoiding unnecessary risks.
And what were the objectives of this market research?
Gather consumer feedback on the product's physical appearance and tailor the launch communication accordingly.
How was the study conducted?
We send beauty products to consumers so they can evaluate their physical characteristics and the results after daily use for 30 days.
The respondents documented their experience with photos and described it in writing in great detail.
And what insights did the research provide to managers?
The survey provided a number of insights on how to meet consumer expectations and improve their experience.
For example, regarding:
- packaging
- fragrance
- viscosity
- application guidelines
- result of the application
Therefore, evaluating the product before its launch was essential to mitigate market acceptance risks and align marketing communications.
That’s the best strategy for making a good impression in the market. 🎯
5. Improve customer service provided by sales associates (Quero-Quero Stores)
Training a sales team isn't easy, is it? So imagine what it's like when you have a chain with over 430 stores.
Indeed, this was the challenge faced by the sales and operations team at Lojas Quero-Quero, Brazil’s largest retailer in the home and construction sector.
So, in 2019, she launched a pilot project to evaluate the sales staff’s customer service.
As the results came in, the number of searches increased.
As a result, more than 100 are currently held each month.
What is the purpose of this market research?
The purpose of the study is to evaluate the performance of store salespeople and improve customer service.
With that in mind, the strategy is to reward salespeople for their strong performance.
How is the survey conducted?
The survey is conducted by a mystery shopper.
And what are the results of the survey?
The results are displayed on a dynamic dashboard. This includes a ranking of store performance and mystery shopper scores by section.
For example, prompt service, the staff’s friendliness, and their ability to provide accurate information about the store’s products, among other things.
And the best proof of the effectiveness of these surveys is the number of award-winning salespeople. 🥇
In early 2020, out of 70 evaluations conducted, 37 salespeople (52%) received awards. A year later, the number of evaluations rose to 96, and the number of awards to 64 (66%).
Conclusion: Do your research to make informed decisions!
When it comes to business, a good decision is always well-considered and strategic.
However, in many companies, that’s not what happens. Not even in the big ones.
In other words, many managers make decisions based solely on intuition, or what is often called a "gut feeling." But this practice is not recommended.
First, because it could cause the company to miss out on profitable opportunities.
Second, because it can lead the company to take unnecessary risks.
That is why market research is essential for making informed decisions.
With access to reliable information, every team can deliver better results.
In large or small companies.
So, do you want to validate your business vision and make data-driven decisions? Request a consultation with one of our consultants. 🤝🏼
