By Linda Rink, RINK Consulting

As a marketer, I know that research is as important as advertising or promotion – actually, it’s more important, because knowledge and understanding come before strategies and tactics. But if you’re not used to doing research, how do you know when you need to?

Here are 8 situations that call for market research.

1. Business plan for a new business. Even if you are not approaching lenders for financing, launching a new business absolutely requires a well thought-out business plan – to reduce your risk and increase your chances for success.
2. Apply for funding. Lenders expect to be paid back – with interest. It is up to you to demonstrate that their investment has a high probability of earning them money. Your assurances alone won’t do it – you will need to document it with solid research.
3. New product development. Before you launch, you should validate who will buy, why they will buy, what features and benefits they desire and at what price.
4. Customer feedback. Knowing what your customers are thinking is always smart.
5. Find out if your strategies have produced expected results. Do pre- and post-strategy tracking.
6. Troubleshoot problems. When your gut no longer gives you the solution to a problem, it’s time to dig a little deeper. And when the problems are big – losing market share or a key customer – you definitely want a full understanding of what could be a complex situation.
7. Documentation for sales pitches. Objective data – from either your own research with prospects, or from third-party experts – validates your sales message.
8. Keeping ahead of your competitors. It can be on-going surveillance of websites or a visit at a trade show – it’s still research.

How many of these apply to your business?

by Linda Rink, RINK Consulting

A retailer asking for customer-service feedback, a membership survey from an association – these days we seem to receive more and more requests to fill out online surveys. Not surprising, really. They are quick and inexpensive compared to mail or phone surveys, and they can provide valuable information when used correctly. Unfortunately, when used inappropriately, they can be a waste of time for both the respondent and the surveyor.

How do you know if an online survey is the right solution for you? Here are some tips to help you decide. Online surveys work best when:

• Your survey is not more than 20 to 25 questions.
• Most questions are multiple choice, not open-ended. (You want finite answers; you don’t need to probe for nuances).
• Respondents have a reason to respond. (Either they know you, or you give them a good “What’s in it for me [WIIFM])?”
• The questions are not difficult to answer.
• You have an accurate and up-to-date e-mail list.

Don’t get sloppy with your surveys just because online survey software programs make them relatively easy to implement. First, make sure that an online survey is appropriate. Second, take care in developing the questionnaire – or have a professional do it for you.

Remember: You don’t get a second chance with your respondents to “get it right.”

by Linda Rink, RINK Consulting

Growing your business can be done in several ways: by adding customers, new products or services; through acquisitions; or by expanding into new geographic regions. All of these activities can be risky and expensive.

How can you reduce your risk and your costs plus increase your chances of success? One important strategy is to leverage what you already have. Your business already has many assets. Here are 5 ways to leverage them:

• Leverage your current customers, who can be a great source of information and referrals.
o Survey your current customers and ask them what other products or services they would like to receive from you.
o Always ask for referrals.
• Leverage what your company has in house.
o What expertise do you already have in house that you can tap for new services?
o What new products or services can you implement quickly, easily and at low cost? (Hint: Think line extensions, product upgrades and add-ons.)
• Leverage your company’s image and position in the marketplace. This is where you can differentiate yourself from your competition. Conduct research with your target audience to identify product areas that tie into your positioning and brand image.
• Leverage with subcontractors. Subcontracting is one of the easiest ways to expand your services without investing in new staff or training.
• Leverage with a partner. Partnering with a complementary business is a big way for you to grow your business in many ways: expanded customer base, products, geography. But there has to be a good fit in terms of business practices, philosophies, image and products.

Do your homework first. Then see how you can leverage your existing assets to minimize risks and boost your success.

by Linda Rink, RINK Consulting

When was the last time you mystery shopped your business? In other words, pretend you are a prospect and contact your business for more information.

Make a habit of regularly checking on some important communication basics for your business:

• Is your website loading correctly (check both Internet Explorer and Mozilla Firefox)? Are the links working?
• Who answers “Contact Us” inquiries and how quickly? What’s the message?
• Pre-test all communications, especially of a promotional nature, that go out from your company. Ideally, have a third party read, test and react to them. And alert your staff that there may be calls coming in.
• Call your company’s main phone number and see what you get. A burdensome menu? An unprofessional receptionist? Infinite-loop voicemail? How about an automated company directory that asks you to spell out the person’s first and last name? Help!

Give up? So will your prospects. Make it easy and pleasant for your prospects and customers to reach you. Your business’s reputation and success depend on it.

by Linda Rink, RINK Consulting

The automatic reaction to tough times is to reduce expenses and “hunker down.” And one of the first budget items to be cut is often research.

This can be very shortsighted. When your business is growing, it’s easy to keep on doing what you’ve been doing because it “works.” The need for incisive research may not be so evident. But when times get tough, you need to be more competitive, more strategic. Now, more than ever, you should arm yourself with the information that will help you stay ahead.

Don’t think you can find the money? Here are 6 tips to help you stretch your research dollars:

• Prioritize your information needs. Rather than arbitrarily cutting the budget by 20 percent, rank the planned research and spend where it’s most important.
• Look to the future. When the economic picture is brighter, will you be ready? Do your homework now, so that you can have a jumpstart when customers start spending again.
• Revisit projects that you put on the back burner and never fully examined. Chances are, some preliminary research has already been done. Finishing the market analysis might not be that expensive.
• Brainstorm new growth opportunities. Opening the door to fresh ideas from your staff, ad agency, customers – even suppliers – can move your business in a positive direction. Follow up with market research to test and prioritize the opportunities.
• Talk with your existing customers. Think about conducting an informal survey or one-on-one discussion to see what their current priorities and issues are.
• Analyze the profitability of your customer base to focus your marketing efforts for maximum return. Can you segment your customers based on characteristics such as industry, size or other variables? Spend your prospecting time where it counts.

Be smart about how you spend your time and your research dollars. The results will help you weather tough economic times – and stay ahead when the economy improves.