A new restaurant opened recently in my neighborhood and tried to use a unique concept to separate itself from competitors. It offered a variety of fish and meat along with a selection of preparation methods and sauces that diners could pair as they pleased.
The reaction was mixed. People who enjoy getting creative with food loved it. People without a lot of food knowledge weren’t so sure. Some people chose poorly and mismatched items. Visitors who just wanted to relax at dinnertime complained that menu matching was hard work. The restaurant soon changed course and took over the design of its dishes. So far the change is working, and business is up.
While the original concept was unique and creative, it wasn’t customer-focused.
The restaurant’s owners could have saved themselves some worry and hassle by conducting some inexpensive market research before opening their doors. They probably would have discovered that their idea, while appealing to a subset of diners, was not what the majority of the market wanted.
There is a lesson in this story for any business about the importance of conducting market research. Whether you are starting a business, adding a new product line or looking to improve customer service, market research can help you ensure that efforts to grow your company stay client-focused.
It’s not necessary to invest in an expensive campaign to reap the benefits of research. Here are some ways you can collect valuable information inexpensively.
– Hit the pavement. Last year a friend of mine was skating in a park when an entrepreneur approached her to discuss a new carrying case he’d designed for inline skates. He wanted her opinion on how he could improve the product.
This kind of informal market survey can be invaluable. The secret is to go where your customers can be found, which may require creative thinking. For instance, someone who sells organic baked goods might go to a farmer’s market or catch people as they leave an organic grocery.
– Call your best customers for opinions. When my company decided to launch a new service to complement our existing offerings, I called our best clients to get their feedback on our plans. This helped me pinpoint ways I could make the new line of business even more appealing to my target market. In addition, it gave me the chance to reinforce my commitment to great customer service during the calls.
– Analyze how competitors do it. You can conduct an inexpensive “best practices” survey by reviewing how your competitors currently do what you want to do. For instance, if you want to add one-hour delivery to your services, you can call competitors to find out how they handle these requests logistically.
– Test new ideas in-house. A little role-playing can help you figure out how to make your products and services as appealing as possible. Set up different scenarios in which you pretend to be potential customers with different sets of challenges.
For example, you might be a customer who needs your product or service in a hurry, one who can’t afford it, or one who doesn’t understand its value. Taking on these roles will help you gain some perspective on how your offerings are perceived.
– Use your Web site. If your business is online, reserve a portion of your site for customer feedback. Each month in this area, you can rotate questions that cover a wide range of topics, such as which products visitors wish you offered and why customers buy from you. Even if you only get a handful of responses, you’ll have more information than you would have if you’d done nothing at all.
Alice Bredin is author of the “Virtual Office Survival Handbook” (John Wiley & Sons) and a nationally syndicated columnist.
