Mastering Market Research UK Businesses

Understanding and researching your business’s target audience is essential from the inception of your business and throughout your entrepreneurial journey. Market research helps determine the feasibility of a new business, the introduction of new products or services, or entering new markets. Primary market research involves gathering data directly, while secondary research utilizes existing statistics from other organizations. To conduct primary market research on your target customers, consider the following:

1. In-person interviews and focus groups: For example, you can organize a focus group session with potential customers in London to gain insights into their preferences and needs.
2. Online surveys, polls, and questionnaires: Tools such as SurveyMonkey and Typeform can help you create engaging surveys that collect valuable information from your target audience in the UK.
3. Social media interactions: Engage with potential customers on popular platforms in the UK like Facebook, Twitter, Instagram, and LinkedIn to gain insights into their preferences and opinions.
4. Product trials and beta launches: Offer a limited trial or beta launch of your product to a select group of UK-based customers and gather feedback to refine your offering.

For secondary market research, consult surveys, reports, and studies by other companies and organizations. For example, the British Library Business & IP Centre offers free access to many market reports at libraries across the UK. Examples of sources for UK-based market research include the Office for National Statistics (ONS), UK Data Service, and Mintel.

If your budget allows, consider hiring a professional market research company, such as Kantar, Ipsos MORI, or Nielsen. Please provide them with a detailed brief specifying your research objectives and intended use of the data. In addition, the Market Research Society website offers a directory of professional researchers.

Understanding your competitors and differentiating yourself is crucial in researching your market. Identifying your market position, the gap you fill, and your unique selling proposition are vital to your business plan.

A solid business plan keeps you focused on your objectives and is crucial when seeking funding or attracting investors. Your accountant can assist in creating a business plan. In the UK, organizations such as the British Business Bank and Startup Loans offer funding options for new businesses.

To identify and analyze your competitors, consider the following:

1. Search engines and keywords: Identify direct competition through search results and targeted keywords using tools like Microsoft and Google Advertising Keyword Planner.
2. Social media, review websites, and directories: Monitor relevant conversations and advertisements on platforms popular in the UK, such as Trustpilot, Twitter, LinkedIn, and Instagram. Set up Google Alerts for specific topics.
3. Consult your customers: Ask existing or potential UK customers about their current or potential suppliers.
4. Media outlets: Read UK-based industry publications like The Guardian’s Business section, and observe advertisements to identify competitors.
5. Exhibitions and events: Participate in industry events in the UK, such as The Business Show, and review exhibitors, speakers, and delegate lists.
6. Business groups: Engage with UK trade associations like the Confederation of British Industry (CBI) and British Chambers of Commerce for competitor information.

Once established, segmenting your customers can help you better understand your market and improve sales. Use segmentation to identify profitable customers, tailor your products or services, and create targeted marketing campaigns. For example, Business-to-consumer (B2C) companies can segment customers based on location, demographics, interests, and buying habits. Likewise, business-to-business (B2B) companies can segment clients by sector, size, location, and purchasing behaviour.

Analyzing sales data from accounting software like Xero or customer relationship management (CRM) systems such as Salesforce or HubSpot can improve your understanding of your market. Use this information to enhance your products or services, improve customer service, and increase customer loyalty in the UK market. Consult our business advisors to discuss your business plan.