Sydney primarily has a service economy, fueled by commerce, retailing, finance, transport, tourism, entertainment, and government services. About half of Sydney’s workforce works in manufacturing, and oil refining is one of the major industries in that region. The small business sector in NSW contributes more than $269.32 billion to annual sales and service income. To flourish amid this cut-throat competition, these small businesses need market research companies in Sydney.
Market research helps in working on pricing strategies, product branding, product differentiation, and marketing campaigns. If you conduct thorough market research, you can improve your sales, and if you are new in the business, you can learn whether your product is commercially viable or not.
Let’s study in detail why market research is pivotal in the development of small businesses.
Serve Existing Customers in a Better Way
The primary job of market research is to improve your sales figures and building strategies to retain customers. The NSW Small Business Commissioner also extends support to the small businesses in Sydney. It works as an ally, has an independent voice, and resolves small issues that impact their day-to-day operations.
Market research answers the following questions when building strategies to improve customer satisfaction and brand loyalty:
- Do your products/services offer excellent value for money?
- Why do customers like or dislike your products/services?
- Will they pay more for your products?
- Why do customers choose you over your competitors?
Target More Potential Customers
Conducting market research is not just complicated, but also a time-consuming task. It is better to hand over this job to someone having expertise in this field. Market research companies in Sydney help you gain more insights into your potential customers. There are approximately 73,000 small businesses spread across different areas in NSW, including Sydney, New Castle, Wollongong, Albury, Maitland, and Wagga Wagga. So, there are many options for customers.
Information on the customers’ age, gender, buying habits, consumer intent, etc. will help you fine-tune your products or service to meet their demands and cut through this competition.
Monitor the Competitors’ Performance
If you wish to be ahead in the race, you need to analyse how your competitor performs. It is a universal rule; you cannot succeed unless you step into the competitor’s shoes. Market research allows you to understand why your competitor is flourishing and why customers like their products.
Services like rental, hiring, and real estate sales are some of the leading small businesses in Sydney. If you are also in a similar segment, you need to learn your competitors’ marketing and promotional strategy. Based on that, you can also devise new business strategies.
To Identify Obstacles in the Business
For instance, you are in the rental service; you rent out flats or apartments in Sydney. And you have no idea that your competitor is offering the rental service at a much lower rate than yours. Then the customers will opt for their services over yours.
At present, Sydney’s rental charges for a two-bedroom apartment are (average) $750 a week. If you charge $800 and your competitor charges $725, you may lose many customers. You will need market research to learn how your competitor can charge less than the market price. If you couldn’t crack that, then you will never be able to increase your customer base.