WROCŁ To conduct or not to conduct market research — that is the question. To answer it, let’s look at some figures, which, as we all know, never lie.
According to Hinge Research Institute, the companies conducting frequent research have higher profits – 24.4% of annual growth rate and 14.8% of annual profit. Companies conducting occasional research show an 11.8% annual growth rate and 13.5% annual profit, which is not so far from the companies ignoring the research – 11.9% and 13% respectively.
Market research is a powerful tool that helps determine the viability of a product and target market. This is an important aspect for growth. According to Deloitte, a customer-centric business is 60% more profitable.
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Let’s consider the case of Apple. The company launched one of their products without market research. Now they conduct in-depth research for all other products.
In August 1993, the company released its Apple Newton, one of the first PDAs with many useful features: notes, contacts, calendars, and even faxing. Despite its value, Apple Newton has opened up to popular ridicule. It happened due to neglecting the MVP stage, which is one of the important stages when launching a new product.
Despite such bitter experiences, Apple is one of the most successful technology companies today. This became possible due to frequent market and innovative products. It allows the company to understand customers’ needs. User surveys opened the way for Apple to develop new products and modify existing ones. For example, the company has expanded the screens on some devices to enhance the customers’ viewing experience.
Clearly, market research requires time and resources, but it allows businesses to understand their audience, get insights into the future product features, avoid costly mistakes, and make all the necessary adjustments to the development strategy before the process will be launched.