By using market analysis tools, you will be able to get a lot of information about customers, competitors, industries, and so on. It will put you in a position where you could act upon the information received to make business changes.
So, what exactly is market research? It is the process of collecting information in such a way that it will provide you with a deep understanding of your customer’s thinking, market trends, competitor analysis, customer buying patterns, etc.
Market research is imperative no matter the size of your business or where you operate from. Even if you were to start a business that has no competitor at all, you will still have to invest in market research. For doing market research, today, there are more tools than ever before, both free and paid.
Why should businesses invest in market research?
Any successful business knows that its very existence depends on customers. For that, businesses need to understand what their customers want and deliver them in a way that they prefer. Doing market research with the help of market analysis tools helps businesses understand what consumers think about them, starting from the packaging, customer service, pricing, product features, and so on.
Top 5 market analysis tools
Market Analysis Tool #1 SurveySparrow:
Wouldn’t you like to know if your customers are happy with your product or customer service? Do all of your existing customers plan to renew their subscription?
What more can you do to make your customers feel satisfied with you?
Answers to the above questions can throw a lot of light into how your organization is faring. By asking the right questions, you will be able to increase conversion rates, better your lead generation abilities, retain more customers, and increase your revenue.
SurveySparrow is one of the most popular online survey tools in the market, and it can make all the difference to your market research plans. As a market analysis tool, SurveySparrow leaves no stone unturned into making your market research process a smooth affair.
- Intuitive drag-and-drop interface
- Different types of question types
- Allows anonymous surveys
- Analytics rich dashboard
- White-label surveys
- Conversational forms
- Survey automation workflows
- Collect omnichannel feedback
They have different options for personal, business and 360-degree assessments. For Personal plans, they have a free option that you can use forever, although there is a limit on the number of responses and questions per survey that you can ask. The Basic plan starts at $19/month, and the Premium plan starts at $49/month.
Market Analysis Tool #2 Mixpanel:
It offers a powerful suite of analytics tools that gives you a detailed peek into the behaviour of your audience. Mixpanel tells you how your users interact with your mobile app or on your website. It will even go so far as to tell you how each button on your website/app is being used or how the features are used.
The best part about Mixpanel is that it requires zero coding, and anyone can access the functionalities.
- Provides reliable analytics in an easy-to-understand manner.
- Offers a simple interface to navigate through the results.
- Mixpanel can collate billions of insights and events, which helps to improve the product.
- Track complex cohorts with ease.
- It tracks the entire user journey
- Mixpanel uses data models to find anomalies in user behavior
While they do have a free version for 100,000 monthly tracked users, their first plan called ‘Growth’ starts at $25/month. You only pay for the number of tracked users, and there is an enterprise version for large organizations.
Market Analysis Tool #3 Crazy Egg:
One of the most important marketing analytics insights is the heat map data. It tells you where exactly the visitors on your website or app are spending their time. CrazyEgg tracks and analyses the elements in a page that users interact with and creates a heat map visualization of this which helps understand user behavior on websites.
The tool even tells you the scroll depth of the web pages, a metric that says when the visitor is losing interest in your page. Using your audience profile data, you will be able to get granular data and reports. By optimizing the time that your audience spends on the website or app, you will be able to increase your conversion rates.
- Its website optimization tools will help increase your sales, subscriptions, page views, etc.
- It records the entire user session to help you follow the buyer’s journey.
- CrazyEgg allows for A/B testing so that you can keep optimizing it to get better results.
- See how users are interacting with your product in real-time
- You would be able to identify glitches and areas where customers get frustrated.
You can use the free version of any plan for 30 days. There are four plans- Basic, Standard, Plus and Pro, each of these are priced at $24, $49, $99 and $249, respectively. The difference in prices for these plans is because of the additional features and benefits that they offer as you go for higher plans.
Market Analysis Tool #4 BuzzSumo:
One of the most popular social media analytics tools, BuzzSumo, is used to measure social media and content marketing efforts. Social media is a large pool from where you can gather a lot of information to understand your market, audience, consumption patterns and so on.
BuzzSumo provides you with information about trending topics on social media. It even lets you analyze the data from different time periods that can range from hours to months. All of this will give you an idea about what’s working in your niche and who are the players making a big impact.
- It analyses billions of data points to sharpen your marketing strategy
- You will be able to find the best performing content
- You will be able to monitor trends and comments so that you can find opportunities with ease
- Influencer identification
- Helps with sentimental analysis
- Allows you to measure brands and campaigns to find conversation volume
- You can generate tonnes of content ideas using the tool
- It will even show you the websites that are linking to key domains and competitor websites.
They have four plans- Pro, Plus, Large and Enterprise. Each of them is priced at $99, $179, $299 and $499 per month based on the differing levels of features that it comes with.
Market Analysis Tool #5 Facebook Audience Insights:
This free market research tool lets you learn about your target audience, discover new prospects, refine your target audience, and so on. The data for Facebook Audience Insights comes from self-reported data on Facebook and 3rd party data partners matched to Facebook user IDs. The information covers people connected to your Facebook page, all Facebook users, and people who are in the custom audience that you specify.
- You can be extremely specific when it comes to your targeting.
- Learn more about the people who visit your business page, including getting access to information such as age, gender, city, country and device.
- You will be able to identify the topics and trends that resonate with your Facebook audience
- Refine your buyer personas
- Segment the demographic data into separate audiences
Here are some of the reasons why market research is a must…
#1 Reduces the risk of product/business failure:
When you are launching a product, you never know the kind of response that you will be getting. But if you want to minimize the uncertainty to a huge extent, then you need to ensure that you assess all the risks involved. With market research, you will be able to make decisions that are based on logic.
#2 Forecasts trends:
When you do market research, not only will you be able to gauge the state of the current market, but you will also get an understanding of how the future will pan out for your industry. Accordingly, you will be able to take initiatives that will put you in a better position to face the future.
#3 Identify potential markets:
When you use market analysis tools for your market research, you will be able to understand your customers better. Through a deeper understanding of your customers, you will be in a position to make changes that will bring in more revenue. You will also be able to unearth new markets, which will work for your brand. If your customer targeting and messaging are on point, things will go smoothly for you.
#4 Set targets for your business:
When you understand the prevailing market situation with clinical accuracy, you can set targets for your brand that will be realistic. It will help you gradually improve the organization in a way that your foundation will be formidable.
#5 Solve business challenges:
All companies will go through a phase where there is a lot of chaos. One of the most effective solutions to tackle this situation is to understand what’s going on in the market with the help of market analysis tools and act accordingly.
If you have already identified some problems that you are facing, then the market analysis tools will show which are the areas that need more effort. The chaos could be because of a new competitor entering the market or a new product line started by a competitor which is better than the product that you are selling.
#6 Prepare you for business expansion:
Market research will tell you the ripe time to expand and the kind of arsenal that you need to carry to do it effectively. The market analysis tools will display the various data points in a visually presentable manner that will determine the various opportunities that your business currently has.
What are the types of market research a business can do?
Market research using the right market analysis tools can be a course-changing exercise for most businesses. It could be the step that optimizes your business operations or changes your business model. There are different types of market research that a business can do; let us look at some of them.
#1 Brand Research:
It helps the company with creating a narrative about themselves which includes its brand and unique identity. It can be used at any stage of the business lifecycle. In this, the market analysis tools will try to identify the strengths and weaknesses of you and your competitors. The emotions and associations that people have with your brand are analyzed. All of this is useful to determine the features and benefits that differentiate your brand from your competitors.
#2 Competitor Analysis:
It helps you analyze the strengths and weaknesses of your competitors so that you can see what you can incorporate and what not to. Using competitor analysis tools is an integral part of any business. The market analysis tools are used to analyze the competitor’s marketing strategy, revenue, sales volume, social media handles, communication, and so on.
#3 Customer Satisfaction Research:
The kind of expectations that customers have from your brand- are you able to meet them? In this time and age, when your customers have a million options, you cannot just be satisfied with meeting their expectations; you need to exceed them. The research should find about the likes, dislikes and preferences of your customers. Look at the service quality level and use various metrics like CES, NPS, CSAT, etc., to determine the same.
#4 Customer Segmentation Research:
Dividing the customers into similar groups is usually done to provide personalized experiences that will drive more sales. By dividing customers into similar segments, you will be able to understand their motivations, what specifically they are looking for, and so on. All of this will reflect in your marketing messages and the offers that you send to different segments of customers.
#5 Product Development:
Using the knowledge of the customer to make iterations or build the product is an important step in market research. You will be able to understand what your customers are going through when they are informed of the changes in your product or the ideas that you have for it. Keep bettering the product, even incrementally; that will do.
There are other types of market research, too, such as 1. Usability Testing- It helps understand how your customers use the product in real-time, 2. Consumer Insights- It tells why your customers behave in a certain manner and what motivates them to do so, 3. Campaign Effectiveness- In this, the objective is to evaluate whether your advertising messages reach the right target market and give you the results you want, and a few more.
How to conduct market research?
- Make sure that you have a clear idea of why you want to conduct market research. Even before beginning the research, you need to write down your end goals and what you aim to achieve with the market research.
- Identify the target market for whom you want to conduct market research.
- Ensure that the sample size of the audience you target is representative of your large audience.
- Narrow down on the market analysis tools that you want to employ for this exercise. Choose the methodologies that you want to use as a part of the market research.
- Write down the research questions that you want to use.
- Refine the questions that you have written down so that you take little time from your respondents.
- Choose an online survey tool like SurveySparrow to distribute the market research questions to the target audience.
- Add a mix of question types so that the market research survey doesn’t become monotonous.
- After you get the data, run them through the market analysis tools to understand them deeply.
- Validate the findings using the market analysis tools and get comprehensive answers as much as possible.
Do market research and market analysis tools really work?
There would be no valid reason for market research to not work. There are only companies that regret not doing enough market research before they set out to start a business or launch a new product line. At no point of time will market research become obsolete. With companies expanding and venturing into new territories, the need for market research will only expand.
When used effectively by using the right market analysis tools, market research is an all-important tool that can take your business to places.
Wrapping it up..
When you end up choosing the correct market analysis tools for your market, you will be able to glean a lot of information about your market, industry and the company itself. Market research isn’t something that only new businesses should invest in, but it applies to each company that is looking to cement their place.
From identifying issues to solving problems, market research can get a lot done for you. Hope the five market analysis tools that we have listed helps your business case.
If you are looking for a kick-ass market analysis tool that involves collecting information in the form of feedback or a survey from various people, then SurveySparrow is the tool that you could use to make the research a grand success. Let us know what you have in mind when it comes to conducting market research, and we will surely be able to provide you with the right options.