7 Reasons why you should invest in Market Research despite the slow economy

By Philippe Guinaudeau, CEO

This is not when it gets dark out, and people suddenly change directions, that you turn off the lights of the car.

Wow, changes in consumer behavior have undoubtedly accelerated over the last few years.

First, the time spent in lockdowns or under restrictions has permanently altered how families behave, spend their time individually and collectively, or where they live (urban or rural). They now have a new outlook on life, not to mention a fresh approach to consumption of products and services.

Second, supply networks have been disrupted by the Covid pandemic, the Ukrainian conflict, and maybe soon another potential public health issue with monkeypox. These events also increased inflation. And if prices keep rising for another while, this will have an significant impact on household spending.

It is only reasonable that companies fear for their business, the income streams and their bottom line. One may anticipate that they will naturally be very careful with how they spend their marketing resources in order to protect against potential disasters.

But is it not reasonable to think that one should endeavor to better understand the customers and the ways to communicate with them to deliver consumption when the situations change, the consumers change, and their priorities set in a different direction? Differently put: This is not when it gets dark out, and people suddenly change directions, that you turn off the lights of the car!

Consequently, you require a more acute eyesight than before. So, here are seven reasons why businesses should actually spend even more money on market research. I know, I preach for my parish. But I am truly sincere.

1. Make better decisions with sound research

First, and I hate to state the obvious, investing in market research will help you make smarter decisions, whatever the economic situation. And that will positively impact your bottom line. Market research will give you material on your target customers and their current behaviors.

Marketing and advertising are an important part of any business, but they don’t always pan out as expected. In the branding world for instance, that would be the distinction between the brand identity, or what you defined for your brand, and the brand equity, or what consumers understand about it.

With good, reliable data, you’ll be able to adjust your spending and make changes to your strategy when needed, without wasting money. This will help you spend your marketing budget more wisely and achieve better results.

Furthermore, you should always be experimenting with fresh marketing approaches and measuring their results. Market research can help you determine which marketing means are the most effective for your company. And on the other hand, it might also assist you in figuring out which ones are a waste of time and money.

2. Minimize your business risk

As was already indicated, things are changing quickly right now. Additionally, you have a risk of developing your company with a distorted perception of how it compares to competitors. You have no other choice than deepen your comprehension of current consumer demands and how they engage with your product or service.

By knowing what consumers now want and how they interact with your products or services, you will be able to adjust your action plans accordingly. This mitigates the risk of failing, in the competitive environment.

Thanks to market research, you can also pinpoint more ways to continue your activities. One of these is linking your products with growth-enhancing entertainment licensing, relying on the emotional connection of this safe haven license. Additionally, you will enhance the appeal of the products when doing that (remember the impact of a license on impulse buying).

3. Know where to direct your limited advertising resources

With the rise of streaming services, apps, the Internet, as well as videogames and esports, it is more crucial than ever for marketers to understand how, why, when, and with whom customers consume media content.

You must also consider the best ways for brands to interact with their customers, particularly if those customers change their behavior due to the economy. Basically, know of the best moments and strategies for drawing attention to your brands. Additionally, decide which message is most appropriate for the challenging time so that the ‘what’ and ‘how’ are in line.

In a nutshell, make sure your advertising efforts aren't a waste of time and money, but a striking effort to develop or maintain your sales.

4. Seize and capture opportunities and limit losses

The economic and sanitary context generate swift changes in consumer behavior. You must take advantage of the fluid situation to generate sales on new opportunities while reducing the losses on others. A perfect illustration of that would be the changes cosmetic companies had to make with eye makeup for the losses on lipstick during mask-wearing periods. This compensates the fall down in sales of lipsticks with more eye makeup.

Instant flash market research will help you reduce costs in cutting some productions while increase marketing efficiency.

5. Build on the customers loyalty to your brand

Consumers could be erratic. They might adore your products or service right now, but they might not be as devoted in the future. And this is very true in a slow economy.

The holy grail of any company is the loyal customer base. And you ought to nurture and expand it whenever you can, not only during lean economic times. However, the reality is that devoted customers could also promote your products and services.

Therefore, you must first understand these unique individuals, their loyalties, and the motivations behind their pleading for your products. Additionally, you must verify that you comprehend the brand image. Developing a ‘love brand’ during this period is crucial. Only a thorough and high-quality market research can provide an answer to these questions.

Besides, a positive side effect of fostering customer loyalty in challenging times is that it strengthens your brand's relationship with consumers in contrast to rivals. Therefore, you should accelerate the growth of your consumer base during these difficult times. Double the benefits!

Finally, loyal customers frequently pay a small premium for the brand they love. Triple the benefits!

6. Market Research is just the beginning

Data are merely one aspect of it. This data must also be analyzed, but even more crucially, the analysis must be applied. You assess and comprehend the issue, come to certain conclusions, choose the best course of action, prepare for it, and take action!

In order to assess the data and provide persuasive action recommendations, you basically need both the data and the brain. After that, develop your action plan to steer your activities in the appropriate direction at the time of your analysis based on your acceptance of the analysis and the recommendations. The latter calls for a strong level of conviction on your part. That is what makes the difference.

7. You can’t be proficient at everything

Another clear fact is that you cannot be an expert in every area of marketing, regardless of your abilities, qualifications, and talents. Therefore, you need to add some data research & science support to your team.

With talents to get you through the tough times, you make up for what you are no longer perceiving. This is comparable to a ship's captain having a pilot by his side to guide the vessel through the harbor and to a safe location.

In order to complete the picture, BrandTrends believes in providing recommendations that are clear and actionable right away.

Marketing and branding are important parts of any business, and they can be very expensive. Without completing market research, you run a significant risk when marketing your product or service, particularly if you have a limited budget. In other words, market research can assist you maximize your spending for the best return on your investment.

Now that you understand the importance of market research, it’s time to get to work. Keep these 7 reasons in mind to spur you on to collect the data required for the growth of your business to succeed.

I'll return to my parish here by saying that BrandTrends can be of assistance.

We continuously conduct research on consumer attitudes and behaviors, including those of children and families, in about 50 different countries. Therefore, be aware of the achievements and failures that may be useful to you in your own country. Furthermore, we can also carry out any exclusive bespoke study that you specify. So, to find the best answers to your questions, contact us today! And who knows, maybe we can help!