The Importance of Market Research in Software Industry
When starting a business, the term Market Research is often underestimated and ignored by the business enterprises. Some think that they have just started their business so there is no such need for a market research. While other thinks that their business is at good pace and there is nothing holding them back so, why a market research, why to invest in it. But, they do not know that by avoiding such research they are inviting a great trouble to their business. Without such researched information, a software company cannot predict its growth and development. I mean, they will never be able to gauge how well their business is performing.
A successful company is- one who render quality product meeting the requirements of customers, one who identifies the opportunities to launch new product and services, and the one who have something unique and out-of-box compared to its competitors. In addition, the companies who overlook the concept of market research can never be on this list. In fact, by ignoring this they are maximizing the risk of their business.
Market research for a software company is an intelligent process of gathering and analyzing the statistical data related to software services and products. This research aims at your targeted customer’s understanding, needs and wants. Also, reveals how effectively a company can meet their requirements. The market research collects data about the customers, marketing strategy, competitors and other forces in software market.
With such beneficial information, you can easily achieve your company’s goal and surpass the competition in the market.
Importance of Market Research
The market research starts with the ‘need’, and ends with ‘satisfactory’ results. The following certain key areas where a software company can take the leverage of such research.
Help You Reach New Customers with New Product and Services
Is your company active enough to reach out to new customers? Having a good and huge consumer database is not as easy as it seems to be. Infact, expanding the customer database can turn out to be complicated. This research helps Software Company to make right decision about the product and services.
There are times when you think that a particular application, software or service is useful for customers but the research may contradict your belief. It may show that your targeted customers do not need your product or your product is failing in meeting their requirements and so on. The research can reveal similar such good customer oriented information that will be advantageous for you to know. This will revitalize your market position and make the entry of new product less perilous.
Help You Understand the Competitors
In order to survive in this competitive market, this research helps you in understanding and determining your competitor. You can get to know what are the marketing networks, customer strategy, identity and level of operations. This will help you in knowing the points at which you are lacking. This also eradicates the condition of you leaving behind the competition and assists you in surviving the competition. In addition, this also covers the data regarding the segments for under-served customers and their needs that have not been met.
Enhancing Your Profit
Market research allows you to get different methods for maximizing your profit. It also allows you to get profit maximizing steps information like customer profitability analysis and price elasticity. For instance, market research on price elasticity will help you in determining the effect of increase in price on sales and profit. This point emphasis more on profitability, and swing company’s focus from increasing sales to increasing profits of a company. This helps the company to run long run and maximize its profits.
Polish Up Your Advertising
Company spends a lot of money to grab user’s attention. A perfect market research will help you in knowing the effectiveness of your advertisement among your competitors. Sometimes, market research includes a preliminary research to gauge the aspects of products and services. This also includes the factors that are influencing the customers while advertising, so that you can advertise the most required and relevant features by customers. According to a research you should always avoid the rule ‘spend million to save billion’ while advertising. Unknowingly do not spend million amount of money to save your billion amount of business.
You can increase the sales of your company by understanding customer’s wants, attitude towards your products and gauging whether your product fit the bill or not. The market research provides you with exactly this. You can examine what are your present client’s requirements and can get the idea for how to get it accomplished. In addition, when you proceed for this mission, you may have a chance to convert users into payable customers.
Apart from these, market research allows you to know overall industry needs, which if equipped with proper management can lead your company with better decisions. However, this is just a marketing tool that helps you to make a knowledgeable decision. Hence, use this tool as a guide and complement with intelligent decision-making.