22.02.2022

What Are The Goals Of Ecommerce Market Research?

Brave Agency
Content Team
analysing-data
analysing-data

Whether you’re just starting your eCommerce journey or your brand is launching a new line of products, conducting market research is essential. From product insights to helping create a strong and firm ground for your business, market research impacts every corner of your business.

When setting up a new eCommerce business, many entrepreneurs envision the process like this: Find a great product, create a funky brand, build a snazzy website and sell sell sell their way to a global takeover. Well, this may be a somewhat simplified version however there is often one crucial step that is overlooked, market research.

To gain a greater understanding of your target market and the demand for your product, it is important that organisations recognise the benefits that can come from conducting market research either themselves or by working with an eCommerce agency. Market research, while often revealing sophisticated data and insights, the goals that the research is aiming to acquire is simple: to gather insight into market conditions so that companies can hopefully make better business decisions.

However, countless eCommerce brands and new sellers have failed to follow through with this vital task, blindly launching themselves into the market without building knowledge or working with market agencies. For those who are not accustomed to conducting eCommerce market research, it is often the case that they are already engaged in research, but are simply unaware. For those who desperately need to conduct the research or have the data to hand but have no idea how to read it, our eCommerce experts have compiled this blog to help.

 

What Is The Purpose of Market Research?

Conducting eCommerce market research is one of the most important aspects of crafting a successful marketing and sales strategy. Through conducting eCommerce market research, sellers and marketers will gain a greater understanding of the cultural, economic, geographic and demographic makeup of their target audience and the market they are looking to venture into. Moreover, sellers will also be able to determine the demand for their product, as well as the competitive landscape.

There’s no denying that proper online market research requires time and money. But investing those resources, such as working alongside an eCommerce marketing agency, allows you to:

 

1. Gain a deeper understanding of your target audience

In essence, it is argued that resolving a customer’s pain point and gaining customer satisfaction is the ultimate goal of market research. Knowing your target audience is not only critical for coming up with new product ideas but it helps you develop a profitable marketing strategy and create copy that converts.

In addition to knowing who your target customers are, you should also understand what they think, feel and value. Satisfied customers are happy ones because their needs have been understood and met. If a business’s main goal is to maintain a profit without sacrificing its customers’ satisfaction, then a happy customer is a good indication that it is succeeding.

“Without a well-thought-out plan of attack, the chances of accomplishing your marketing goals will be slim to none. And without an understanding of the eCommerce marketing landscape, you’re at a severe disadvantage. – Justin Palmer, Big Commerce“

 

2. To Identify Your Competition

Competitive research is a critical component of eCommerce market research and essential to understanding your marketplace. If you are aware of your direct as well as indirect competitors and their business foundation, you can work upon issues that may threaten your business.

Competitive research involves identifying your competitors, evaluating their strengths and weaknesses and evaluating the strengths and weaknesses of their products and services. As a result, you will remain ahead in the competition race by being proactive in promoting your product with the shared audience. In today’s modern world, customer loyalty is always changing and hence without knowing your competition, you can find yourself feeling like a tiny fish in a pond.

 

3. Find new business opportunities

One of the overarching yet overlooked goals that market research can help organisations accomplish is how it can help you make important business decisions. These can be decisions like securing investments and funding, determining new business opportunities, and even avoiding business failures.

Lots of eCommerce business opportunities are out there that can make your company more successful. From new product development to subscription offerings, branching out and trailing different offerings is a great way to reach new customers. Doing online business research and looking at the market data can help you uncover those opportunities that lie hidden in plain sight.

Identifying opportunities through the information given can allow your organisation to find new revenue streams for your business. Market research can play a critical role in this process, which ultimately will determine entirely new business opportunities for the organisation.

 

Using An Ecommerce Agency For Market Research

Market research is essential for understanding the target demographics, market conditions and competition. But this data can be confusing and overwhelming for those who don’t know how to read it. By working with an eCommerce agency, you can gather the data and have a marketing expert on hand to translate it for you.

An eCommerce marketing agency will work with you to conduct keyword research to help you figure out whether there’s a demand for the product that you want to sell online, research current trends to establish best selling periods throughout the year and even help you to utilise social media to promote your brand and find new clients. Want to know more? Drop Brave a message today!

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