Fuel Net

Get answers to your most pressing marketing questions in fuelNet Monthly, your one-stop resource for effective communications strategies that result in secure, long-lasting customer relationships.. Learn more...

Customer research is to a growing business what a power cord is to an electrical appliance — a necessity. Without a thorough understanding of your market segments and how your products or services differ from the competition’s, it’s next to impossible to run a business successfully, in any economic climate. “Many small business owners who regularly make a profit and have consistently high demand for their products or services spend a good deal of time listening to and observing their customers and learning how to provide what they want,” says Emerson Smith, Ph.D., president of Columbia, S.C.–based Metromark Market Research. Here are five surefire ways to collect valuable research:

1. Check customer purchase history. It seems simple enough, but many businesses overlook this data. “It tells them who buys, when they buy, how much they buy, and, depending on the extent of the information they gather, where they live,” says Linda Pophal, author of Marketing with the End in Mind. “The data is based on real buying behavior rather than speculation on what a prospect or customer might do.”
   
   
2. Watch and interact with customers. Gail Bower, president of Philadelphia-based Bower & Co. Consulting LLC, encourages retailers to watch customers as they move about the store to see what they’re doing, buying, and talking about. “If your business is service-oriented,” she suggests, “call your customers or go visit them. Find out what effect the economy is having on them and how your business can help.”
   
   
3. Look to the government. Government statistics are among the best available sources of information. For example, the publication Statistical and Metropolitan Area Data Book provides useful data on metropolitan areas, central cities, and counties. The Small Business Administration is another great resource.
   
   
4. Conduct an online poll or survey. Zoomerang.com and SurveyMonkey.com offer free services and low-cost options for quick customer feedback. The drawback with online polls, Pophal notes, is that they are subject to sampling error, depending on how they are conducted.
   
   
5. Join a trade association. Although a membership fee is often required, most trade associations make available comprehensive market research specific to their industry. Another good bet: research organizations such as the American Marketing Association and the Marketing Research Association.