Customer Research

Consumer research includes primary as well as secondary research. Research helps to ensure that a retailer is offering what their customers need and not simply what is assumed that customers need.

Market segmentation

If a retailer answers ‘everyone’ to the question: “who is your target market?”, it’s likely that the retailer in question in not achieving the maximum profits. A company’s resources are limited by the available budget, so it’s rational to then focus that budget on a segment of customers that are likely to produce the greatest profits.

For example, a store that sells televisions will target people who watch television. However, they are aware that not every TV will be suitable for every person. There are multiple product variables such as internet connection, integral DVD players, ease of use, number of ports and so on. Different product features appeal to different groups of people i.e. different customer segments within the television market. The store needs to understand their customer’s needs to discover which particular TVs their customers want to buy. If the store makes assumptions on behalf of their customers, they may make mistakes in their decision-making processes.

Understanding Your Customers

Customer segmentation begins with research – for example, an analysis of current customers. This is where market research companies can help with your marketing process. A survey of visitors to each of your stores will find out necessary information including needs, buying behaviour, and demographics - all key to understanding customers; who your customer are, why they buy from you and not your competitors, and more importantly, why they don’t buy from you.

Your customers can be grouped into segments to meet their needs. Segments that are more probable to produce the greatest profit should be ranked first. There is little benefit in providing a budget for unprofitable segments. A suitable communications plan can then be established to target the most profitable segments.

If you are searching for a market research company, please contact CARD Group at Card-group.com