Do-It-Yourself: Independent Market Research To Scale Business

In today’s competitive business landscape, understanding your customer is paramount. To succeed, companies must continuously adapt and align their products or services to meet customer expectations including self-conducted competitor analysis. While many organizations invest heavily in external agencies to conduct market research, there’s increasing recognition of the benefits that come with doing it yourself.

Enter the world of DIY market research, where businesses harness tools to get insights straight from the source. In this blog, we’ll delve deep into the realm of DIY market research, the tools that make it possible, and its undeniable importance in today’s market.

What do you mean by DIY Market Research?

DIY (Do-It-Yourself) Market Research represents a transformative shift in the way businesses gather and interpret data about their markets. Unlike traditional research methods that rely on external agencies or intermediaries, DIY Market Research empowers companies to take control of their own data collection and analysis.

This approach harnesses a range of sophisticated yet user-friendly tools, from online survey platforms to web analytics software, allowing businesses to tailor research initiatives to their specific needs. The result is a more immediate, cost-effective, and adaptive method of understanding market dynamics, customer preferences, and emerging trends.

In the era of agile business practices, DIY Market Research stands out as an indispensable tool for companies aiming to maintain a competitive edge.

To further underscore the importance and effectiveness of DIY market research.

• A 2020 report from Greenbook highlighted that 60% of businesses now employ DIY research tools.
• 82% of companies believe that real-time feedback is crucial for success, a feat easily achieved through DIY tools.
• 7 out of 10 startups prefer DIY tools due to their flexibility and cost-effectiveness.
• Businesses that employ DIY market research tools see a 54 percent financial growth.

Source

Let’s share a decent example-

• Over the past seven years, the international consumer products company P&G has reduced its agency partnerships by 60%, leading to substantial monetary savings of $750 million.

Businesses that prioritize in-house research view it as a method to maintain a focus on their customers and leverage emerging technologies to enhance their brand’s standing.

Fundamentally, companies seek clear insights, greater autonomy, and a more efficient approach to market research.

How Does DIY Market Research Help Businesses in the long term?

DIY (Do-It-Yourself) market research is becoming an indispensable tool for businesses in the modern era, providing them with the capability to independently gather and analyze data pertinent to their market, consumers, and competition. This hands-on approach has long-term benefits that can drive sustained growth and competitive advantage.

Let’s delve into these advantages in detail.

Sustained Cost Efficiency

• Immediate Savings- External market research firms often charge hefty fees for their services. By transitioning to a DIY model, businesses can bypass these costs.
• Future Investments- The initial investments in DIY market research tools or training can lead to reduced costs in the long run. As teams become proficient, there’s less dependency on external entities, resulting in cumulative savings over time.

In July 2020, the research platform Quantilope secured $28 million during its Series B investment round. Subsequently, they initiated a study with Forrester Consulting Total Economic Impact, which revealed that their market research platform delivers a 319% return on investment over three years, amounting to net benefits worth $2.7 million.

Enhanced Agility in Decision Making

• Real-time Data Access- DIY tools often offer real-time or near-real-time insights, allowing businesses to make decisions swiftly in response to market dynamics.

• Rapid Strategy Pivoting- With immediate insights, companies can adapt or pivot their strategies more effectively to address emerging challenges or seize new opportunities.

Deepening Customer Understanding

• Continuous Engagement- DIY tools allow businesses to have ongoing dialogues with their customers. This continuous engagement fosters a deeper understanding of evolving customer needs, preferences, and pain points.
• Tailored Research- DIY market research gives businesses the autonomy to design and execute studies specifically aligned with their unique questions, ensuring highly relevant and actionable insights.

Data Sovereignty and Integration

• Full Ownership- Having full control over data ensures its confidentiality and allows businesses to leverage this data as a strategic asset.
• Inter-departmental Synergy- In-house research can be integrated seamlessly with other business functions, like marketing and product development. Insights gleaned from research can thus be directly applied, ensuring cohesive and effective strategies across departments.

Capability Building and Skill Enhancement

• In-house Expertise- Engaging in DIY research fosters the development of in-house expertise in data collection, analysis, and interpretation. Over time, this nurtures a team of seasoned professionals who can provide insights on demand.
• Data-driven Culture- Regular engagement with research cultivates a data-driven organizational culture where decisions are made based on evidence and insights, rather than mere intuition.

Trust-building and Brand Loyalty

• Customer-Centricity- When consumers see that a business is making genuine efforts to understand and cater to their needs, it fosters trust. This trust translates to brand loyalty, crucial for long-term success.
• Feedback Loop- DIY research tools facilitate a continuous feedback loop. When customers witness their feedback being implemented, it enhances their affinity with the brand, ensuring they remain advocates for the long haul.

Future-proofing the Business

• Trend Anticipation- Regular DIY research enables businesses to spot emerging trends. This proactive approach allows them to position themselves advantageously, ensuring they’re always a step ahead of the competition.
• Innovation Catalyst- The insights derived from continuous research can serve as a foundation for innovation, be it in product development, marketing strategies, or customer service enhancements.

Best Practices of DIY Market Research

Conducting DIY (Do-It-Yourself) market research can be an empowering way to gain insights about your target audience, industry, and competitors, especially Conducting market research on a budget.

• Asking why?

Before diving in, ensure you’re well-prepared. Initiating a project on a strong footing often correlates with its eventual success. Conversely, projects that begin shakily often struggle to find their way. Preparation involves clearly outlining your goals and strategizing how to effectively achieve them.

Simply posing questions online won’t suffice. Instead, reflect on the core purpose behind your market research endeavor. With a clear understanding of this, you’ll be better positioned to craft a comprehensive survey, leading to more enlightened decision-making.

As said by Zontziry Johnson, market research educator– Insights specialists. ‘’Be super crisp on what the business question is. Make sure it’s a *single* question. That should remain your north star for deciding everything about the research: methodology, audience, questions, etc. It all goes back to that initial business question.’’

• Ask the right question

Crafting a survey isn’t as straightforward as it seems. The choice of words and sequence of questions is crucial. A subpar questionnaire not only wastes the time of the creator and their business but also of the participants. It’s essential to dedicate time initially to ensure its effectiveness.

Value the participant’s perspective. Rigorously assess your survey, trying to see it through their eyes. Invite colleagues to evaluate it as well. If you find it lengthy, verbose, or too formal, chances are, the participants will too. Show appreciation for their time and effort by designing an engaging and user-friendly survey.

• It’s best to Test

Before finalizing your questions, conduct a trial session with individuals from diverse backgrounds, encompassing varied ages, genders, and locations. This ensures the clarity and universality of your questions. Often, such preliminary tests unveil insights and perspectives you might not have initially considered, bridging the gap between ‘what you know’ and ‘what you might have overlooked’.

Things to Consider While Choosing the Right DIY Platform

Choosing the right DIY market research platform is essential for obtaining accurate, actionable insights. Here are some tips to consider when selecting a platform that best suits your needs.

• Ease of Use

Opt for platforms that have user-friendly interfaces, especially if you’re new to market research. You don’t want to spend most of your time grappling with complex tools.

• Versatility

Some platforms offer a range of tools, from surveys to analytics. Choosing a multifunctional platform can provide comprehensive insights and be cost-effective.

• Customization Options

The ability to tailor surveys or research methods to your specific needs can greatly enhance the quality of your insights.

• Sample Size and Audience Reach

Ensure the platform can access a sample size large enough for your needs and that it can reach your target demographic.

• Data Analysis Capabilities

The platform should offer robust analytical tools, making it easier to decipher patterns, trends, and key takeaways.

• Data Security

The platform must comply with data protection regulations and ensure that participant information is stored securely.

• Budget Constraints

Compare the cost of various platforms, keeping in mind your budget. Some platforms might offer free basic versions with the option to upgrade to advanced features.

• Integration Capabilities

If you’re using multiple tools, it’s beneficial if your chosen platform can integrate with other software or tools you might be using.

• Customer Support and Training

A responsive customer support team and comprehensive training resources can be invaluable, especially if you run into issues or uncertainties.

• Onboarding Process

Platforms that offer a thorough onboarding or training process can help you maximize the platform’s potential and get started more efficiently.

• Scalability

Consider whether the platform can handle larger projects as your research needs to grow or evolve.

• Real-time Data Access

Platforms that offer real-time data collection and analysis can help you make faster decisions, especially in fast-paced industries.

Challenges While Conducting DIY Market Research

While DIY (Do-It-Yourself) market research offers flexibility and cost savings, it also presents various challenges, especially for those not steeped in research methodologies. Here are some of the significant challenges faced in DIY market research.

• Limited Expertise

Professionals specializing in market research are trained to design studies, frame questions, and analyze results with a nuanced understanding. DIY researchers, especially if new to the field, might lack this depth of expertise, leading to potential inaccuracies.

• Bias and Objectivity

Without formal training, DIY researchers might inadvertently introduce biases into their study design, question framing, or data interpretation. These biases can skew results and lead to misleading conclusions.

• Quality of Data

Ensuring the data’s validity and reliability is a challenge. DIY researchers might face issues like low response rates, incomplete answers, or data from unrepresentative samples.

• Scalability Issues

While DIY methods might work for smaller projects, scaling them up for larger, more comprehensive studies can be challenging, especially in terms of data management and analysis.

• Resource Limitations

Professional research often comes with access to specialized software, databases, and tools. DIY researchers might lack these resources, potentially limiting the depth and breadth of their research.

• Analysis Complexity

Turning raw data into actionable insights requires a combination of analytical skills and tools. Interpreting data, especially if it’s complex or vast, can be overwhelming for those unfamiliar with advanced analysis techniques.

• Ethical Considerations

Without a solid grounding in research ethics, DIY researchers might unintentionally breach norms related to participant privacy, informed consent, or data handling.

• Staying Updated

The field of market research is dynamic, with evolving methodologies and tools. DIY researchers might find it challenging to stay updated on the latest best practices.

• Generalization Difficulties

Ensuring that the insights gained from a sample can be generalized to a broader population requires careful sampling techniques. Mistakes here can limit the wider applicability of the findings.

• Overlooking Nuances

Without a deep understanding of research methodologies, subtle nuances in data or participant feedback might be overlooked, leading to a less comprehensive understanding.

• Cost Misjudgment

While DIY research often starts as a cost-saving measure, unexpected expenses related to tools, software, or the need for sudden professional consultations can arise.

In essence, while DIY market research offers the advantage of direct control and potential cost savings, it comes with challenges that can impact the quality and reliability of the findings. DIY researchers need to be aware of these challenges and seek professional guidance or training where needed.

Make Market Research Easier with the OnGraph DIY Platform

The complexities of market research can often be daunting for businesses, but the OnGraph DIY platform provides a game-changing solution. A DIY market research platform, lets you create and manage your research projects cost-effectively without depending on third parties to manage it for you.

Due to this, many research companies are letting their clients use DIY platforms for their customized research.

Whether you’re a novice or an expert, the OnGraph DIY platform empowers you to gather, analyze, and interpret even Small business market insights with ease and precision, positioning your business for informed decisions and success. OnGraph is a testament to how technology can simplify and enhance the intricate realm of market research.