No Money to Conduct Primary Research? You May Have Done a Lot of it Already!

Last week, I wrote about an entrepreneur who was conducting secondary marketing research so he could develop his business plan. This week, I am writing to talk about primary research – data your company generates on its own. Often, we think of surveys and focus groups when we hear “primary research.” And those methods can indeed be costly. However, your business is probably generating volumes of primary data right under your nose. You’re out to hear the voice of your customers and prospects when you do primary research, and primary data is coming to you at nearly every touch point you have with them. Think of these sources:

Customer Service Calls

When customers call for customer service, or prospects call for information, what are the most common things they ask about? If your business sells handbags, which ones are frequently inquired about? Are the handbags most inquired about those that are higher or lower priced? Are they new handbags you’ve introduced? Are they mostly imported handbags? Also, who is making the inquiries? Are they long-term customers? Prospects? If long-term customers are inquiring about one line of handbags and prospects about another, you can tailor your marketing messages to their interests.

Customer Complaints

Nobody likes to be on the receiving end of a complaint. But complaints can be a great source of information. They can alert you to product defects, service breakdowns, and even give you ideas for enhancing your product or service. They can even help you save a long-term relationship and avoid bad word-of-mouth press. If women are complaining that the strap on one of the handbags you sell is uncomfortable to hang over their shoulders, that can prompt you to look for alternatives, or contact the supplier with that information. If a customer complains about the treatment an employee gave him/her, you might use that as an opportunity to either train your staff on improved customer service or discipline that employee.

It’s often said that 96% of a business’ dissatisfied customers will not complain; 91% will quietly go away; and those silent dissatisfied customers will likely communicate their dissatisfaction to at least nine other people. Encourage your customers to speak up when they’re not happy. Complaints can be a rich source of research.

Your Salespeople

Your salespeople are out in the field. They see everything at the frontlines. What successes are they having? What gripes do they have? Let’s say that a salesperson occasionally sells handbags to men, who are buying it for their wives, girlfriends, or mothers. You might have them inquire about the occasion. Perhaps it’s a birthday. When you know  the buyer’s spouse or significant other’s birthday, you might send a personal message to the gentleman around the same time next year, encouraging him to buy a new handbag. Salespeople can also tell you that they’re losing business to competitors because the sales cycle is too long, or too complicated, or there’s too much administrative work. They might also tell you that they’ve lost sales because your business doesn’t accept credit cards. All of these insights can be very helpful. You should encourage your salespeople to engage the customers and prospects, and also encourage them – without judgment – to share their successes, failures, and challenges with you.

Your Competition

Your competitors can be a great resource for your marketing research. Check out their Websites from time to time; follow them on Twitter; “Like” them on Facebook; read their blogs; subscribe to their newsletter; buy their products from time to time; drop in on them if they are a retailer, restaurant, etc. These techniques can alert you to their promotion schedule, the types of customers they are pursuing; the products and/or services they are emphasizing most heavily, what markets they’re in, and so forth. You might also be able to pick up the phone and talk to your competitors directly. It may be that they serve a different niche and that there’s plenty of business to go around. Plus, the fact that you are in the same business gives you an affinity that encourages both your competitors and you to help each other out.

Warranty Cards

Encouraging your customers to fill out a warranty card can also provide useful information: contact information, birthdate, age, type of product purchased, and other kinds of information. This will give you an idea of the type of customer that buys your product. Also, if customers invoke the warranty at some point, you can also get some idea for the products that are having the issue, the types of customers it has been happening with, and the most frequently occurring defects.

Previous Promotions

Look back at some of the ads you ran. How did they perform? Did you test two types of ads? Which one did better? Knowing which promotional tactics work well and which don’t can ensure that you’re directing your marketing dollars more effectively.

This list is far from comprehensive. You can also obtain primary research from trade and professional associations in your industry, as well as from chambers of commerce. You can also get information from your suppliers/vendors. And just plain old networking can give you information.

Primary research is generally expensive, but there’s so much of it that you’re likely already doing, that you may have a wealth of research right within your walls. Mining that information is like mining gold!

Do you have a lot of information you’re collecting that you’re not using to generate new or repeat business? Are you collecting mountains of information but can’t make any sense of it? Would this kind of primary research be of valuable to you, but you just don’t know where to start? Analysights can get you on the right track. Call us at (847) 895-2565 or visit our website at www.analysights.com.

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