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

pounds 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 pounds for

their services.  However, a good way for you to charge might

be on an hourly basis.  A figure in the region of œ40 - œ50

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 œ3 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 pounds 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 pound concerns.  They have

certainly found market research is needed!