Market research step by step: are your plans feasible?

Market research takes quite a bit of time, but it provides you with a wealth of information that you can use to draw up clear plans. You can use the results, for example, to refine your business strategy, find a new sales location, reach a new target audience or expand your product range. You can carry out market research yourself by following the steps below. If you don’t have time for this, you can also commission market research.

Step 1: Research your sector

An industry analysis gives you insight into developments in your industry.

• See how many businesses are active in your sector and area: use the KVK Company Counter.
• Gain insight into current economic data, such as the number of bankruptcies in your municipality or region: use the KVK Regiodata tool (in Dutch) 
• Review the turnover figures of comparable businesses: request financial statements and extracts from your competitors via the Business Register.
• Examine how your competitors deliver their products and services and how you can differentiate yourself from them
• Finally, follow legal developments in your industry. That way, you will know if there are any upcoming legislative changes that will require you to adjust your ideas.

Step 2: Look at your strengths and weaknesses

A SWOT analysis, also called strength-weakness analysis, shows at a glance where opportunities lie for your company and what needs extra attention. You can use these findings to determine your strategy.

Step 3: Define your target audience

You can identify your target audience by conducting customer research, or a target audience analysis. Consider who you want to reach; who are your products or services suitable for? The KVK location scan (in Dutch) gives you a picture of the number of potential customers in your region and information about the population.

Step 4: Ask your customers

Ask your current customers what they think of your product or service. That way, you can improve your offer. You can ask a large group of people questions, or you can ask your customer some questions during a conversation. For instance, you can ask which social media your customers use, and adjust your marketing accordingly. Or you can present your idea and see how they react to it.

Measurable goals

If you want to plot a larger research project, first formulate the purpose of your research in concrete terms. For example: I want to know why customers come back less often. Then you start setting measurable goals. Such as: I am going to send everyone who was a customer of mine in the last year an evaluation form about my services. In doing so, I am going to interview 5 clients this month. Within 2 months, I want the results of the evaluation to be clear.

Approach

Now that you know what your goals are, make a plan of approach: what is your budget, how do you approach your target group, are you going to do it yourself or outsource it, what is your main question, and what questions should you ask to answer your main question? Think about what customer information you already have or what information you can find in another way, so you do not have to ask those questions. Next, you implement your plan.

Step 5: Processing answers

With all the information you have gathered, you can make decisions. You can be sure to respond to developments in your industry, you know what you can improve, where your opportunities lie, you know what your customer wants and where to find your customer. By doing regular market research, you can compare data and notice changes.

Outsource market research

You can also pay someone else to carry out market research for you. The cheapest option is to hire a university student to conduct the research as part of an internship or final-year project. An internship can be cost-effective at an internship rate. Bear in mind, however, that it will take up your time, as you will need to provide proper supervision for the student or intern.

Would you prefer to have your research carried out by someone specialising in specific markets, or by someone with extensive experience? Then hire a research agency. The exact costs depend on the number of people you wish to survey, as well as the turnaround time and deadline for the research. It also matters whether you opt for an online survey or telephone research. In-depth interviews are the most expensive option.

GDPR and market research

If you work with personal data during your research, such as a name, address or telephone number, you must comply with the GDPR privacy legislation. Market research falls under ‘statistical purposes’. This means you may collect and process personal data for your research without consent, provided the data remains anonymous and cannot be traced back to an individual. If you have the market research carried out by a third party, you must set out in a data processing agreement that both parties will protect the personal data in accordance with the rules of the GDPR.