The Importance of Market Research

Most entrepreneurs are inexperienced and ignorant to the discourse of business when they first embark on the journey of managing a company.  It’s not a bad thing, but it is a fact worth acknowledging. That being said, a vast majority of starting a business is education and in many instances, that education is informal and self taught. One of the greatest challenges of an independent business education is the experimental learning of trial and error.  Some aspects of business will only make sense once you’ve tried it a few times and realize what is missing. Other aspects will come quickly and immediately and will pose no further threat to your business.

The pedagogical journey of entrepreneurship consists of a series of fundamental factors that should be considered and practiced for any serious contention for a successful business. One of these factors is market research; how well will your product or service perform in the market? Often overlooked due to costs, time, and significance, market research can make or break any business idea.  We want your business venture to start off in a way that will encourage growth. As such, we’ve outlined our top three reasons why market research should be on your priority list.

Market research reaffirms your business idea

When you have a concept or idea and you wish to convert it into a product or service, market research helps you understand who your target audience is, whether there is indeed a demand or interest in your product, and ultimately your business’ success potential. For example, if you anticipate your target audience to be young adults between the ages of 18 and 27, but upon reviewing the data from your surveys and focus groups you notice that middle-aged persons express a greater benefit from the product, you may need to redesign your business model taking into account middle-aged individuals.  On the other hand, you might also find that there is absolutely no interest whatsoever and your investment may not be worth it. Market research is simply a strong editing tool that can refine your business to properly meet the needs of your consumers.

Knowing your numbers

Numbers are vital to a business. How much will you pay? How much will your consumers pay?  Are you competitive enough? Market research assists in money management. If you understand who your ideal consumer is, you can further assess how much they are willing to pay for your product. Additionally, it will gauge how much money you need to invest to obtain a beneficial return. Research will highlight the monetary relationship between the business and the consumer. If your intended audience is women, but they are from low-income brackets, you must consider the likelihood that they will impact your business financially, particularly in a way that will encourage steady growth. 

Further, market research, in the form of business-to-business comparison, can help you determine whether your prices are too high or too low and how competitive you will be among your entrepreneurial peers. This research can often be obtained by simple web searches and do not require much time. It is an easy way to gain some perspective on your business.

 Business and Market Predictability

Market research can reveal how your business will perform in its initial stages as well as the future. Granted, there are a myriad of factors that can cause predictions to deviate, it is still a reliable tool for estimates on what to expect. The research can guide contingency plans and business projections.

Whether you decide to limit your research to the web or other minimal resources or you choose to spend thousands of dollars in quantitative and qualitative data collection, market research will have a positive effective on your entrepreneurial pursuits. 

Start-Up Mistakes to Lookout For!

Let's face it, every entrepreneur's first start-up is a fish-out-of-water- experience; new territories usually are. One of the best ways to tackle the unfamiliarity of business ownership however is to learn from those who have gone before you. Most entrepreneurs have a laundry list of things they've had to do, and redo multiple times before getting things right. Fortunately, we've got our laundry list of mistakes you should avoid to make your startup success attainable.

A Saturated Market

One of the more challenging tasks of being an entrepreneur is knowing how to reason with yourself and be honest in those responses. This is particularly true at the conception stage of your startup. You come up with an idea for your business, you believe in it, and you start investing time, energy, and resources to make your vision materialize. Finally, when you launch, you realize that the market is too saturated and your attempt to transcend your peers failed. Just like that, your business dissolves. Unfortunately, this is a common mistake.

When you have an idea for a startup, it is imperative to implement a market research component that facilitates your place in the designated industry. If you haven't invented something it is more than likely the case that your business idea already exists. Know who your competitors are, how the market is performing, and whether it makes sense to invest in a business idea that has seen one too many launches.

Launching too quickly or too slowly

 

Having a new business can be exciting and that excitement can persuade you to place your product or service in the hands of consumers as fast as possible. Prematurely launching your business can kill it. There is nothing quite like introducing an ill-prepared product to a consumer. On the other hand, it is equally detrimental if you have a successful product and you are unable to keep up with the demand for it. Take some time and nurture your idea to control for foreseeable outcomes like these.

It is also possible to launch too slowly. Some startups require a large amount of preparation time. Research, testing, and funding are among the primary factors that can delay a launch. However, if you are taking too long to make your business accessible, perhaps it has no place in the market. Otherwise, you're hurting your business if you withhold something that is on demand and is necessary to your consumers. They may stop waiting. If you are slow to launch, there should be substantial reason.

Poor Investment Strategy

Every business wants to grow, but that growth is heavily predicated on how money is managed. Your business should be your investment manager's priority. Monitor the monetary flow and forecast of your startup to effectively regulate where you can make more money and where you should pull back a bit. Further, investments should yield growth and this should not be interpreted as investing solely in the interest of shareholders. Investments should also be made in favour of consumers; they make the business. “If you invest in your users, your investors will benefit regardless”.

No Target Audience

It's unfortunate that some startups fail due to the lack of a clear and definitive consumer. Knowing who you are selling your product to is instrumental in startup success. A designated target audience helps drive marketing and promotion strategies, product development, and sale projection. When you have a target audience you are aware of exactly where to find your market and how to control it and be competitive. On the other hand, failure to determine a specific group to which to market your product can result in financial loss and over-investment.

A Divided Team

Lastly, if your team does not share your vision, you are doing a disservice to your business. Hire like-minded people who share your values, but differ in creativity and skill; this will diversify and enhance your business potential.

Starting a business can be intimidating, but minimizing your mistakes can make the ride a little less bumpy and a little more successful. 

Lessons Learned From Retargeting Customers

Just because a customer goes searching on a specific website doesn't mean they can't be "approached" again at a later date with the same product. This concept of online marketing is referred to as retargeting or remarketing.

You've probably experienced this as a casual internet surfer without even realizing that you've been retargeted. If you go to a site like Amazon and search for T-shirts a banner ad from Amazon for that product could pop up on another website you visit later in the day.

With the use of tracking cookies, advertisers can follow you around multiple websites and target specific advertisements.

And guess what? It works.

Retargeting customers has been known to drive conversion rates up by 70%. Here are the best ways to create a retargeting campaign.

Pick the right platform.

As you approach retargeting, you'll have two options with regard to the type of programming platform you can utilize. A managed platform will have you partnering up with a retargeting provider that will help you set up your campaign using specific metrics. The self-service platform gives you more control over the targeting of audience segmentation and customer tracking.  The provider can walk you through the process. A few examples of the kinds of online retargeting providers to look at are Google Adwords, ReTargeter, AdRoll and FetchBack.

Pick the right campaign settings.

Once you settled on which provider will be helping you launch your retargeting effort, you'll need to determine your targeting parameters. In other words, how will you find the customers you're looking for?
For instance, will you be selling your product overseas? Many retargeting vendors offer default settings to advertise to international consumers. If that's not a market you're ready for, make sure they "click off" that option. The same goes for setting up the specific time and day when you run your retargeting ads. If you're a site like Amazon then you're a 24/7 business.

However, if you have a sales forces that needs to deal with customers during specific hours than those are the hours when your retargeting should be running. There are other factors like cookie duration and offer rotation which need to be taken into account. Once again, your provider should be able to walk you through these factors.

Pick the right segmented audience profile.

Retargeting lets you get specific with your customer base. For instance, you might sell products to men and women but they aren't necessarily the same products. You want to be able to segment your audience profile so the right ads reach the right customer. It might help you divide your website into those specific areas of interest that will appeal to various demographics.

Pick the right tests.

The strength of a successful retargeting campaign will be based on which ads work. You need to test your campaigns for optimal results. You should test variables such as ad headline, ad copy, background colors, images and calls to action. Using analytic testing will help you find out which is the most effective approach to your retargeting. 

Why Building an Email List is Important for Your Business

It’s as simple as this: If you want to be a successful marketer these days, you need a solid email list. Having an email list helps ensure that your message will be in your customers’ inbox and will be welcomed there.

When you've signed up for email from a specific company you're opting in. In other words, you want those newsletters, special promotions or coupons. Every business that has an online presence should have an email list. Truth be told, building an email list is a gold mine for your business.

There are a few reasons as to why building your email list is a good idea:

Building customer loyalty.

If a customer has signed up for your company's email then they are a willing reader. With every email you send out you have the chance to build up that customer loyalty because you'll be treating them to an "insider's" perspective to your business. They want the info, so let them have it! A customer who has already made a purchase through your web portal will know how easy it is to get what they want. When you send that customer information about a new product or a special promotion they'll be inclined to shop again. Just make sure you've got strong call-to-actions in your email that will make them want to click to your site.

Affordable marketing.

In terms of marketing cost effectiveness, you simply can't beat emails. The cost of using autoresponders are much cheaper than they used to be a few years ago… and for less than $10/month you can create a marketing system that will reap dividends! With one click you could reach thousands of customers instantly. Remember these are customers who have asked for you to keep them informed. They want to learn more about your company and receive your promotions - can you say that about direct mail marketing? You can't! Even a small percentage of sales that would be generated by an email blast would pay for your marketing campaign many times over.

Personal touch.

It’s casual and friendly — a great way to build trust with people. As part of your overall online marketing strategy you should set up Facebook and Twitter accounts to build out your social media network. However, those sites require a kind of active participation from your audience without a guarantee of viewing your content. In other words, if a customer only checks their Facebook page once or twice a day they might miss your update in their newsfeed. On the other hand, they're going to open every email you send them because they are checking their "inbox" throughout the day. This includes checking on mobile devices. Additionally, there are no other distractions with reading your email. Facebook and Twitter can be great marketing tools but you'll be competing for attention. With an email you've got a one-on-one contact that is priceless.

Targeted offerings bring extra revenue from your list.

The majority of your customers will appreciate you keeping their private information private. That doesn't mean you can't share affiliate products with your customers. Suppose you're selling personalized coffee mugs. It would stand to reason that someone selling gourmet coffee would appeal to your email list. The key is to be smart with your affiliate offers. If you're selling mugs you shouldn't offer a great deal on tires. Don't give a customer an excuse to opt out of their opt in. Depending on the size of your email list, you could offer it for sale to other companies. Just make sure you haven't made the claim that you wouldn't do that!

Bottom line: Build your email list and it will pay for itself tenfold! 

5 Reasons Why Online Businesses Need Content Marketing

Imagine this scenario - you wander through a bookstore and find a novel with a very appealing cover and title. It looks like it’s going to be a great read. However, inside all the pages are blank. There is no story. This is not a lesson in “judging a book by its cover” but instead a reminder that without strong content, your online business will falter. In other words, you could have a great service or product but unless you engage and expand your customer base through strong content your business with wither on the vine. The following is a list of important reasons why online businesses need strong content marketing.

Customers Want the 411

You might have occasionally gotten lost in a “YouTube maze” clicking through random videos but when a potential customer goes in search of the specific product or service they are looking for valuable information. That information can be provided through well written content articles with catchy headlines. Be concise and give them the “bullet points” of what they are searching for. By providing valuable information to consumers, you can become considered an industry expert with the content you create and people will start seeking out your website for updates and tips.

Customers Want Quality

First impressions matter, whether you’re at a dinner party or developing an online business. If a customer stops by your website and is greeted with a poorly written article, then chances are they won’t be coming back. Don’t fall into the trap of sacrificing quality over quantity. There is no reason why you can’t have both; it just might take a bit more effort to find.

Customers Like To Be Targeted

Everything and anything can be Googled. No matter what the search, chances are there will be several websites that pop up in response to a user’s question. The goal for your website is to take advantage of these niche searches by providing targeted content. If you have a product for women, determine if it’s suitable for “busy moms,” “hard working professionals,” or “singles searching for love?” Maybe it’s for all three categories. That just means you’ll need specific content geared to all those groups.

Customers Like to Matter

Content should not only serve to provide information but also to engage the reader. Whenever possible you should leave room for comments. This is how you get online discussions going and pull in even more customers. Everyone likes to share their opinions online. Even if you receive negative comments, take the time to consider the comment and the way in which you can “fix” the problem. Perhaps the customer had a poor experience with your services – take the time to respond, apologize and offer a solution. Your customers will appreciate the open communication. Providing a personal touch gives customers a sense of security which will bring them back to purchase again.

Customers Are Always Searching

As mentioned above, potential customers are always on the prowl for those goods or services they need in that moment. Just as you need to create engaging content for them to read, you also have to create content that the search engines will pick up on. This will improve your search engine rankings which will place your website at the top page of any search. If you’re not familiar with how to achieve these goals then seek out experienced content management consultants to help build up your online presence.

How to Create a USP - Your Unique Selling Proposition

How does your business stand out in a competitive marketplace? Whether you’re selling cupcakes or carpet cleaning services the answer to that question becomes your company’s unique selling proposition or USP. A solid USP goes hand in hand with elevating your company’s brand. Do you know what is “the greatest show on earth?” Do you know which take-out pizza will “deliver to you in 30 minutes or less?” Do you know what soft drink is “the real thing?” Those are all the USP for Ringling Brothers Circus, Dominos Pizza and Coca-Cola respectively. They’re also perfect examples of the type of effective marketing strategy you should be striving to develop in terms of creating your own USP. Here are some ideas about how you can create a powerful USP:

·         Define Your Target Audience

The more specific you can be with your marketing campaign the stronger your return on investment will be. Simply put, there are some products or services that are going to appeal to just a specific segment of the population. Research who your audience is and find out what their needs are. That’s where you need to target your USP development.

·         See What Works

It’s hard to find a truly unique business or product. Consider how many dry cleaners, nail salons, garages etc. there are in your own community. No matter where you start your business you’re entering into a crowded arena. The first step you should take towards developing your USP is to check out the competition. Have they got an effective marketing campaign in operation? Perhaps you can become inspired by their efforts to develop your own plan. Better yet, you might find a way to improve on their USP by making it your own. Fast delivery and special discounts are two ways to accomplish that task.

·         Solve A Problem

The best USP is one that solves a problem even when a problem doesn’t necessarily exist. You might not need to send an overnight package out every day but when you do chances are you’ll think about FedEx because they promise to deliver when your package “absolutely has to be there overnight.” If you can translate your goods or services in a way that solves a problem, you’ll be creating a USP that can gain traction among your potential customer base.

·         Make a Promise

In practical terms your business USP is a promise to your customers. This goes hand in hand with solving a problem. To accomplish this, you need to make sure you can live up to keeping those promises. Domino’s Pizza was only successful when it first developed a way to cook pizzas very fast in order to deliver them within 30 minutes or less. In other words, don’t make a USP promise you can’t keep.

·         Less is More

When it comes to an effective USP, less is more in terms of words in a slogan. You might have to finesse, massage, cut and rewrite your USP to hone it down to the basics. It’s all part of the process and can yield positive results.