How often do startups come up with a business plan only to find themselves in a tough spot, thinking, “I should have researched more!”?

In today’s age, skipping on any kind of market intelligence can deal serious blows to brand perception. According to Deloitte, companies that embrace a customer-centric approach are 60% more profitable than those that don’t.

Investing in market research isn’t just a nice-to-have; it’s a must-have for startups aiming for sustainable growth. By dedicating time and resources to understanding their target market, validating business ideas, identifying and analysing competition, and spotting emerging trends, startups can make strategic decisions that foster growth and profitability.

Market research can help mitigate risks, optimise strategies, and increase the chances of success in a competitive landscape.

Market research is more than just identifying trends

In the past, it would take ages to painstakingly gather all insights from focus groups or do interviews on the streets to understand the market landscape. Startups often relied on limited data and anecdotal evidence to come up with a survey, risking costly misjudgments.

Gone are the days of fragmented processes and delayed insights. Things have changed now in 2024. Businesses can easily access always-on audience data that deliver a wealth of insights and conduct entire research projects on a single, unified platform — from survey design and scripting to distribution, fieldwork, and real-time analysis. This empowers organisations to monitor responses instantly across various quotas and distribution segments, enabling agile decision-making and strategic pivots based on real-time consumer sentiments.

As we navigate this new era of market intelligence, companies that leverage these advanced tools will undoubtedly gain a competitive edge, transforming raw data into actionable insights with unprecedented speed and precision. For example, if you’re a startup developing a new fitness app, data intelligence could reveal valuable insights.

You might discover a rising trend in at-home workouts, learn the times when users typically exercise, understand how much they’re willing to invest in their health, and analyse their behaviour patterns. This insight could influence the app’s features, marketing strategy, and even pricing model.

Market research goes beyond just identifying trends. It also helps in understanding market size, potential growth, and segmentation. Startups can pinpoint niche markets that are underserved or identify broader market opportunities that are ripe for disruption.

It’s all about blending audience intelligence with market trends

Knowing your audience is only the beginning. The next step is to combine this understanding with broader market research to validate and refine your business idea.

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With comprehensive real-time audience intelligence, startups can gather demographic and psychographic data to better understand their consumers’ interests, behaviours, and economic context. For example, demographic data on age, wealth, and lifestyle preferences can highlight key opportunities and limitations for reaching potential customers.

Beyond understanding who your audience is, it’s vital to answer important market questions:

Demand: Is there a desire for your product or service?
Market size: How many people would be interested in what you’re offering?
Economic indicators: What is the income range and employment rate in your target market?
Location: Where do your customers live, and how far can your business reach?
Market saturation: How many similar products or services already exist?

By blending audience intelligence with these broader economic insights, startups can make informed, data-driven decisions that reduce risks and improve their chances of success.

Risks of product failure are much lower

Innovation is the lifeblood of startups, and data intelligence plays a pivotal role in driving product development. With proper market research, you’re creating a feedback loop on understanding what consumers want, what they don’t like, and what they’re willing to pay for.

This information is golden for startups who need to constantly refine their products and developing features that address real customer pain points.

Market research helps leaps and bounds when testing product concepts and prototypes before a full-scale launch. You save time and most importantly upfront costs. Startups can gather feedback from focus groups or conduct surveys to gauge consumer reactions.

This iterative process minimises the risk of product failure and ensures that the final product aligns with market demands.

Pricing is a critical element for startups

Pricing is a critical element for startups, influencing both profitability and market positioning.

For instance, if you’re a fitness app startup, begin by analysing competitor pricing and conducting targeted customer surveys. This research will help determine how much your target audience is willing to pay (e.g., THB299 (US$8.25) per month) based on your unique selling points and the value your subscription offers.

Tools such as competitive analysis platforms and market research reports can provide real-time insights, helping startups adjust their pricing to stay competitive and appeal to their target audience.

This data-driven approach ensures that pricing decisions are informed and strategically aligned with market demands.

Finding up-to-date information

The biggest issue with most startups is finding relevant and up-to-date information which can be tough depending on the industry or target market.

Startups often face the challenge of accessing reliable data sources, especially when operating in niche or rapidly changing markets.

Traditional market research methods, such as surveys and focus groups, can be time-consuming and may not always capture the latest trends.

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To overcome this, startups can leverage digital tools like AI survey assistants and platforms that provide real-time insights. From social media analytics to industry reports, and AI-powered data platforms – a combination of this can provide valuable, up-to-date information, enabling startups to make informed decisions swiftly.

This proactive approach not only helps in staying ahead of the competition but also in anticipating market shifts and customer needs effectively.

A startup that’s data-driven

In today’s fast-paced and ever-changing business environment, startups cannot afford to fly blind. Data intelligence is super important if startups want to make informed and strategic decisions.

Traditional market research methods frequently struggle with scalability and speed, often failing to effectively connect with decision-makers.

If you are a thriving startup, you need to actively track your customer sentiments. This can be achieved by getting access to a centralised dashboard featuring market research tools, methodologies, and advanced processes designed to extract actionable insights from a unified, reliable source.

This is the only approach to excel in 2024 as it guarantees that you as a business can stay agile and responsive, capable of navigating rapid changes and seizing emerging opportunities effectively.

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