How Market Research Can Help You Secure The Success Of Your Franchise Business Startup
If you’ve previously completed a business plan, you may already be familiar with the concept of market research. Specifically, market research is information gathered on competitors, industry movements and the socio-economic landscape, and compiled together in order to educate strategy and plans for growth.
In addition, this data gathering – performed either by you or an industry leader – should explore factors affecting businesses within that sector. Provided it’s up to date, it will inform marketing, sales and business development simply by highlighting the demand for your service and any operational challenges you may face in today’s climate.
As a startup business franchise, you’ll be expected to demonstrate industry knowledge in the form of market research before your application is approved. Following this, you’ll need to rely on the competitor and customer market research to keep developing your service and ultimately become a successful franchise business.
Sound complicated? Don’t worry. Here, we’ve outlined exactly how you can enhance your startup business franchise with market research.
Gain a better understanding of your customers
Customer market research concerns the identification of who your audience is and a rigorous breakdown of their wants, needs and expectations. The benefit of being a startup franchise business is that your franchisor will already have somewhat defined your ideal customer.
However, several factors can often play a role in the targeting of your audience – including location. For example, your franchisor may have identified that an ideal customer is an affluent middle-class family in need of domestic support, but your business’ location might be considered to be in a more working-class community, meaning you’ll have to vary your message.
So ask yourself, who will buy your product or service? Now tailor the benefit of your offering to appeal to that customer and start pinpointing their qualities in order to build your ideal buyer persona. Consider what motivates them. Make a note of what you think a customer of your franchise would want from your offering.
Maybe your franchise offers a convenience or a status symbol that they crave? Whatever it is, use current statistics to back up what you believe motivates purchases. Next, start determining their expectations and pain points. If they feel a product is a luxury purchase, ensure every aspect of your marketing conveys the value of the investment.
Provided you make the above considerations, your buyer persona will give you the knowledge you need to tailor campaigns to a target audience. Over time, you’ll fill in the gaps of age, location, gender and income, allowing you to create an effective marketing strategy.
Increase knowledge about competitors
Franchisees need to know how saturated their industry is. In fact, before venturing into any market, businesses should identify all the key players and any other potential threats from growing contenders.
Market research for startup businesses mustn’t solely concern the customer – and neither should the research of startup business franchises. That’s why you need to conduct competitor market research.
Knowing the strengths and weaknesses of competitors leads to market gap insights. These can reveal where rivals aren’t meeting the needs of your target audience. Use this information to gain more market share and tailor your marketing campaigns to make the most of the available business.
You can also differentiate your campaigns by discovering the channels and messages that competitors are (or are not) using. For example, you may notice that others in your trade aren’t using Facebook and Google Ads. This is the true benefit of conducting your own personal market research.
Competitor market research keeps your ear to the ground. Regardless of industry, customer demand can always change, and if another business capitalises on that opportunity before you, it could undo the hard work you’ve put into building a strong client base.
See your business continue to grow
It’s worth bearing in mind that performing market research for startup businesses shouldn’t stop once you’ve started to generate sales. You need to be proactive in your data gathering, persistently informing business decisions with evidence and competitor analysis.
You need to base your PR and promotional campaigns in public opinion and continue to answer their demand. Without staying tuned in to what it is they’re asking for, your message will only ever fall on deaf ears.
Additionally, the more aware you are to changing opinions, the more likely you are to embrace trends at the right moment. Knowing the time of day at which your audience stops using Facebook (for example) and begins to communicate with brands via Twitter, helps place your product in their immediate environment and saves you a fortune in social ads.
Speaking of saving money, the cost-benefit of planning marketing campaigns with customer insights is enormous. By staying plugged into industry and community changes, you’ll naturally avoid taking a risk with your marketing that’s unlikely to pay off, ensuring profitability and helping you become a successful franchise business.
Choosing a franchise that rewards market research
Market research should be seen as a necessity for business success. No franchise leader is born a font of knowledge; staying aware of the landscape in which you are operating allows you to seize opportunities that competitors are blind to.
Furthermore, by continuing this methodical approach to all business and marketing decisions, you’re likely to become more cost-effective as an organisation and secure your startup’s success. Who knows? Maybe running multiple franchises could be on the cards…
At Rainbow, not only do we provide our franchisees with the most up-to-date industry information, but we’ll also teach you how to effectively conduct your own market research. Interested? Get in touch to see how our expert team can train you to recognise and seize franchise opportunities today.