It’s high time that brands need to understand the importance of market research. There are many instances of businesses failing due to a lack of proper market research. Market research is often not seen as an essential component of the eCommerce business. Brands often tend to neglect market research or invest time and money in market research. At times, business decisions are made without conducting market research or the extraction and interpretation of data. The outcome of it is a poor understanding of the consumers and the eCommerce market, and finally declined sales. At the same time, you can optimize your eCommerce sales with market research.
Market research can make you outshine other eCommerce brands. However, indulging ineffective market research practices is the key to stand out in the eCommerce market. It’s only with the right and the best market research practices that you can grow your eCommerce business. With this in mind, we have curated a list of some of the best market research practices.
Why Is Market Research for eCommerce Essential?
Various reasons make market research for eCommerce essential. Therefore, many AI tools and eCommerce market research platforms such as Revuze have made their appearance in the market.
Below are some of the key points that make market research significant for eCommerce.
- Understanding Your Customers: With the help of maket research, brands can know their customers better. The data extracted through market research is used for gaining actionable consumer insights through text analytics tools and learning consumer sentiments on your products. Consumer insights are interpretations of consumer behavior trends, their opinion, feedback, and sentiments on your brand. You can use these insights to grow and better your business.
- Knowing the Market Better: No business can succeed without knowledge of the market they are dealing with. Market research plays a crucial role in understanding the market you are into, the products in demand, and various other factors.
- Reaching Out to Target Audience: It’s essential to reach out to the target audience for sales optimization and lead generation. You can reach out to your desired option with market research.
- Strategizing: Market research also helps you to know your competitors, the business strategies, and models they are following, their strengths and weaknesses. You can use all this information to give a tough competition to your competitors.
Nike is a foolproof example of a brand that has seen an increase in its sales because of investing in market research. The brand has reported a massive 36% hike in its digital sales despite the Covid-19 pandemic. Nike can increase its revenue because of the right digital marketing strategy and market research to give its customers a better experience.
Four Best Market Research Strategies
- Use AI Tool and Ecommerce Platforms: In the digitally transforming world, it’s essential to shift to AI-driven market research. AI-driven market research is better than traditional research methods as it is fast-paced and cost-efficient. Moreover, AI tools help in real-time insights analysis to provide accurate and genuine customer opinions and sentiments. Hence, AI-driven market research is one of the best market research practices that every eCommerce brand should follow.
- Hire a Good Customer Support Team: Use market research to determine how big corporations handle their customer success team. You can implement the practices followed by popular eCommerce companies to build an experienced and reliable eCommerce customer support team. Customers are more likely to buy from a brand that offers good customer service than a brand that lacks one. Therefore, make sure to hire a dedicated customer care team for better customer satisfaction.
- Gather User-generated Content: User-generated content includes reviews, feedback, blogs, comments, opinions, images, and other content shared by consumers on various eCommerce platforms. User-generated data is an excellent source to generate real-time consumer insights. Therefore, many brands are targeting their market research to gather user-generated content. With user-generated content, brands can enhance their growth by incorporating accurate and genuine customer feedback.
- Product Research: Product research is significant in the case of a new product launch. Proper market research is required before introducing a new product in the market. You can run a keyword search and carry out product page research before launching your product. With product research, you can create awareness about your upcoming product, besides knowing your target audience and the estimated demand for your product in the market.
Conclusion
It’s impossible to grow your eCommerce business without market research. To optimize your sales and conversion funnels, it’s required that you understand your consumers. Market research helps you gain consumer insights to learn about consumer behavior trends, shopping habits, preferences, and feedback. Moreover, you also become aware of your market, target audience, products in demand, and much more. However, for useful market research, it’s advisable to follow the best market research practices. With this in mind, we have mentioned some of the most helpful market research strategies that will help you take your eCommerce business to the next level.
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