MONEY AS A MARKET RESEARCHER
Who Needs Market Research?
'Market research is only used by big companies' - that's the
first wrong impression people often get about this vital
service. In fact, businesses of all types and sizes use
market research - indeed find it vital - and many more want
to use it if the right sort of service is made available!
One of the most important things in any business is to know
what your customers want. You just can't offer suitable
products or services without this knowledge. Market research
fills that need by telling a business just what their
customers want. If the business then acts on that
information they must d better than if they just 'guess' what
customers want.
Large companies have long used market research - and
prospered by it. But, often the services of the large
research businesses are not tailored for small concerns. So,
what is needed is a small, efficient business to provide them
with the research they require. You can fill that need!
Setting up as a market researcher is an exciting and
prestigious event. Little outlay is required, but your
professional fees can be very high! All you really need is a
logical approach - and the ability to get on with people. In
many cases it's just a matter of making extra cash for a few
hours pleasant 'chat'!
Building a Market Research Consultancy
The principle behind a successful market research business
couldn't be simpler! All you need to do is find businesses
who want to know more about what their customers want. Then,
you simply conduct suitable surveys (of which there are many
types) and present the results in a form they can act on. As
a result of your market research your customers should be
able to make many useful improvements. It is not unrealistic
for a small business to increase profits by several thousand
dollars as a result of your work. So, your fees are always
justified.
If you are to gain customers it is vital your business looks
professional and competent. And, the better it looks the
more you can charge. It is quite possible to work part time
from home. But ensure you deal with all enquiries and
customers as if a long established business in a suite of
offices!
One image boosting tip is to spend as much as you can on some
professional business notepaper. Also buy and use a
typewriter for presenting company correspondence. Well worth
it!
It is not vital to know a great deal about market research to
succeed in the gathering of valuable information. However,
in order that you can present that do read some basic books
on statistics and the compiling of data into graphs, charts,
diagrams, etc. It gives a really professional touch!
Market research is not a difficult operation. But, your
success can so often depend on your image - not necessarily
your good work. Be sure to build up a good image in advance.
Getting Lucrative Custom
With a basic business set up you are ready to start
attracting customers. Do this with care since a satisfied
customer will usually become a regular one who supplies you
with work every few weeks and months - what more can you ask?
We have already established that almost any business needs
market research to help them do better business. However,
they rarely have the time or know-how to do this themselves.
Offer almost any business the chance to make more money by
acting on market research information and your service is
sold!
It is best to approach small, progressive local customers.
They will probably know of the benefits of market research,
but not be able to afford the large companies. Almost any
local business could be a customer - shops are some of the
best and easiest customers to serve.
The very best way to sell your service is to approach
potential customers in person. Second best way is to
telephone them - try and find out when they are not too busy
to do this. If you don't want to use either of these
methods, then you can write them a well presented letter
which can be quite successful. Don't try advertising in
newspapers etc. - it's not strong enough when you start up.
Most potential customers will need little persuasion to turn
them into definite customers. Just explain to them that you
can gather information they can use to make their business
better. Be sure to emphasise the point that their increased
profits will more than pay your fees! It should not be a
'hard sell' at all. And, although some businesses won't be
interested, you should be able to find sufficient customers
in most areas. You can do well on as few as 1 every 1-2
weeks.
At the outset, it is wise to agree a fee for your services.
This should be paid before you submit your final results.
The large market researchers charge thousands of dollars for
their services. However, a good way for you to charge might
be on an hourly basis. A figure in the region of $80 - $100
per hour might be a good starting point - but it is up to
you.
Always deal with each customer with the idea of getting
regular 'contract' work. For example, you might undertake
new research for them almost every month, thus allowing
improvement to surmount improvement. Many larger businesses
work on this 'change and check' basis and market research is
a vital part of it.
Planning a Market Research Survey
The most basic market research survey is easy to carry out,
but requires careful planning to make it easier - for you.
All you will be doing is finding out what customers think of
the businesses that has engaged you. From these answers you
can recommend improvements to your customer.
The most sensible way to get useful results is to devise a
series of short, unbiased and easy to answer questions.
Then, ask a random selection of your customers customers what
they think. For example, if undertaking market research for
a local grocery store you might visit a selection of homes in
the area to determine what they thought of the store.
Compile questions that are not too complex, yet not too long.
Yet, they should not prompt any sort of incorrect answer.
You might ask, in the case of a shop 'How many times do you
visit Jones Grocers per week' or 'What other grocers do you
use apart from Jones'. Multiple choice questions (with a set
choice of answers) cut down interviewing problems.
You might need to test your questions before you find
suitable ones. Then, the best thing to do is type the
questions up clearly and have them printed. Use one copy per
interview and it will then be much easier to process your
results.
Don't so much base your questions on what your customers
would like to know about his customers. Base them on what
you think will be useful. This way the questions will be
much fairer - and the subsequent results more accurate.
Undertaking Market Research
With questions compiled the next step is to get them answered
- get workable results. An easy way to do this is to post
your questions out to random addresses with a reply paid
envelope. This can work but you will need to allow for about
4-60% non-returns.
It is far better to go out and ask the questions in person.
If you don't want to do this, then employ some interviewers.
Part time housewives usually make good interviewers on a pay
rate of around $6 per hour.
It is important to pick those who are asked the questions
fairly. Try and select a balance of men/women, old/young,
etc - unless the business you are researching has a limited
clientele. An easy way is to interview in the street around
the business in question. Ask both those who are obviously
customers - and those who are not. Alternatively you can try
'door knocking' in the vicinity of the business concerned.
Always ask your questions clearly and fairly to the wording
you have set. Don't place any emphasis in your voice that
might push the interviewee into giving a different answer.
Be sure to record every response clearly, even if it is a
negative answer or a don't know.
You will invariably find people are pleased to help with
market research - as long as your questions are not too long
and boring. However, never use market research as an
opportunity to advertise or sell anything. This will both
give you a distorted results and give market research a bad
name!
In most cases it is a question of the more interviewees the
better! Several hundred will mean very accurate results. On
the other hand, 30 or 40 can give very interesting
information on your customers business.
Sorting Collecting and Presenting
With results gathered it is possible just to present them to
your customer. But, it looks much more professional if you
present them in a suitable form. This allows you to charge
much more for your market research services!
In processing results your aim should be to make them as
clear as possible - and make it easy for your customer to act
on them. The best way to do this is to show the results in
some sort of statistical form. This needs to skill and basic
school maths should be a great help.
In presenting results, make full use of tables, charts and
other listings that allow data to be compared. Without
doubt, you should use some sort of pictorial aids. Graphs -
either line or bar - or pie charts and similar sorts of
things are all good ideas. For example, if your customer was
a grocer you might compile a graph showing how many people
did most shopping on each day of the week. This would help
him decide on better opening hours - and the quietest day of
the week on which to take half day closing.
Let your pictorial data stand for itself without comment.
However, attached to this should be a short written report
you have compiled. This can both discuss the results - and
make comments and recommendations. This need not be
technical - just give your opinions which are always of use.
For example 'During our survey many people commented that a
wider choice of frozen foods would bring them to your shop
more often'.
Your report need not be highly complex. But, it must be very
presentable - to both impress and be easy to digest. Keep a
copy for yourself for future use. Past customer successes
can also be used to impress new or potential new customers!
An extra service is to visit the customer with your report
and discuss it with them in detail. This way much more
information can be given. Expect to charge quite a bit more
for this facility. Some market researchers even operate as
'business consultants' and actually plan and follow through
business improvements for their research customers. This is
something you could do with experience, though not
necessarily any special skill.
Satisfying the Customer and Getting Even More Business!
The great advantage of offering a market research service is
that there is no 'right' or 'wrong' about it. Whatever
information or opinions you give your customer they will
always be valid - you can't make a mistake! It is important
to note here that you shouldn't try to impress or please your
customers with good results. If the results are good then
great. However, if the results are poor it is still good for
you that they have been discovered! Show things as they
really are.
The successful market researcher will always show the truth -
whether it is desirable or undesirable. The fact you have
unearthed such information is sure to impress the customer,
because it is something they could never have done. As such,
you are in a good position to solicit more business and this
should be done at every opportunity.
A good way of working is to agree that, as a result of the
first survey, your customer will make 1 recommended
improvement to their business. A few weeks later you will
research to see if this has worked. If it has, go on to
agree, try and test another improvement. If not, cancel the
improvement and try another. This step by step process might
be tedious. But, it is the way all successful business can
be built. And, will ensure a lot of regular work for you.
Like any 'professional service' your aim should be to build
up a portfolio of customers - all bringing you income on a
regular basis. But, you can also expand your service very
quickly to serve bigger and bigger businesses. Commissions
worth several thousands of dollars are not unknown for even
small, part time businesses!
And, one final thing - don't forget to market research your
own market research business. If a few simple 'questions and
answers' can improve your customers business then just think
how progressive your service can be! There's at least a
chance to join some of the leading names in market research,
some of which are multi million dollar concerns. They have
certainly found market research is needed!
