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7 Reasons Why Market Research is Important for B2B Lead Generation

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Market research plays a vital role in generating B2B leads as it helps businesses understand the market, analyze the changing needs of clients, nourish competitive advantages, make better decisions, uncover new opportunities, and empower the business to improve its offerings.

 

Further, the research helps businesses identify clients and explain why they purchase their products. It also allows you to figure out metrics such as the cost per client acquisition (CPA) and gives clarity on what the market wants in a product or service. In this article, we will explore market research and its importance for B2B lead generation.

What is Market Research?

Market research is defined as assessing the practicality of a new product or service through research conducted directly with prospective clients. It can be performed directly by the companies or outsourced to agencies with expertise. Market research helps design marketing campaigns to target your prospective clients’ interests and increase sales directly. It also assists businesses in gaining crucial information like economic shifts, competitors, and customer insights, as well as identifying new development opportunities and threats in an outstanding time.

 

B2B marketing research unveils insights into your marketplace by surveying an illustrative sample of its participants. It may include existing clients, past clients, prospective clients, lost clients, and influencers.

How to Conduct Market Research for B2B?

B2B business refers to all the business operations between one company and another. B2B sales are thus made between a supplying company and a buying company, the B2B market is dominated by the rules that govern compound decision-making processes, and generally involves suppliers from larger territories. The competitive facet will, therefore, be strongly affected. Therefore, it is not a question of being comprehensive but rather considering the most efficient and least costly methods to implement. You need to verify the feasibility and relevance of their project from factual data and realistic market analysis.

 

3 essential stages for B2B market research. Let’s understand in detail:

1. Competitor Analysis

B2B, commercial strategies can be better structured because larger companies prepare them, therefore there will be more resources available. Study in-depth about your 3 main competitors. The question arises, how to identify your main competitors? You need statistics on the national market where you will operate. Trade federations and other sectoral bodies are a valuable source of data. You can contact local trade federations of your target location and ask them for the information Some factors to evaluate your competitor are financial records, locations, customer reviews, and commercial records. Try brainstorming with someone who knows the market well. It will also be an opportunity to establish a relationship & trust.

2. Interviews

It is essential to understand what people want and expect. Begin by reaching out to the people in the market and interviewing them. It will bring more quality to your research. To do this efficiently, you must try to proceed as follows:

  • Interview Experts: Experts excel in knowledge and understanding of the market you are interested in. They may be specialized consultants, members of professional organizations, or even diplomatic staff. Their specialization represents a significant added value for people wishing to conduct market research. It will primarily identify them and help us understand which expert profiles are most likely to uplift added value. Reach out to these experts for help to establish the criteria for analyzing the competition and identifying the “pain points” of your customers.
  • Interview prospects: Interviewing prospects plays a pivotal role. It helps you understand what prospects are expecting you to say and what your products are saying. The marketing strategy should be personalized according to the prospective qualitative interview. Thus, they focus on unveiling different aspects highlighted in their interviews. Be sure to interview a representative panel of the decision-making chain within the structures that will be your clients in the future.

3. External Factors

These facts are called external because you, as a company, cannot influence them. These might include elements related to a country’s policy, the economic situation, tax policy, and national or transnational legal aspects. As a company from a foreign land, your competitors may not have expected them from you, leaving you with the possibility of a better value proposition to which customers would be sensitive.

 

This happened with the GDPR, which allowed new companies to take market share, as companies had to adapt to this latest legislation. The difficulty is, of course, to continue the resulting activity because, very often, using such a business opportunity is more of a short-term strategy.

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To systematically study the external factors that influence a market, use the PESTEL method.

Identify and Solve B2B Customer Pain Points

B2B market research usually is more complex to organize because of two aspects:

  1. The availability of respondents.
  2. The decision-making power does not lie in the hands of a single person.

The hierarchy of people who generally make the decisions in a B2B company is complicated, so you should remember that interviewing several people from the same company may be mandatory to understand the reality of the purchasing process. To reach and interview the right people, use your networks, talk about your projects, and research those around you. Maybe someone could help you reach the right person to interview.

5 Crucial Focus Areas for Marketers Today

Here are some of the main areas successful marketers focus on for a successful marketing strategy:

  1. Segmentation and Targeting: Demographics such as location, psychology, and behavioral information about your target market can help you offer values that fit their business requirements.
  2. Product Testing: This helps you understand how your product fits your client’s needs and what changes may be necessary to make it more desirable—popular approaches to this focus on utilizing user testing and UX testing.
  3. Marketing Communication: Consistently undertaking “advertising effectiveness research” can determine the benefits of advertising and marketing communications. This allows marketers to develop impactful strategies and understand when their target market is no longer paying attention. Ensure that suitable media is utilized to reach your targeted businesses.
  4. Market and Competitive Analysis: Market trends change every day, and you have to keep up with them. Market and Competitive Analysis will help you gain your competitors’ insights. This will help your business offer something your competitors don’t and create your own space in the market.
  5. Pricing and Forecasting: Pricing is an essential element in buying decisions, so a study about pricing can be used to determine the direction of future trends. You can analyze prices relative to other products and their features. Further, forecasting future sales can also help in budgeting, production, and staffing decisions.

Importance of Marketing Research for B2B Lead Generation

Easily spot business opportunities

Once you have completed your market research for your B2B lead generation company, you will know your target audience, the marketing channels where you can find them, and what interests them. This will help you find business opportunities quickly, for instance.

  1. Create profitable order upgrades: Knowing the other products and services your clients tend to buy can help you develop add-ons and upsells that increase the average value of each order.
  2. Find new locations to sell: Knowing the geographical areas where most of your target customers live will help you to create targeted campaigns that suit the needs and culture of that area.

Lower Business Risks

Around half of businesses with employees don’t survive past the fifth year, according to Bureau of Labor Statistics data. The best way to survive your company for a long time is to ensure you have a constant stream of sales and customers. To do that, you need market research.

 

Consistent market research will be a fantastic way to check in with your current and potential customers to ensure you’re still meeting their needs. For instance, a few ways to apply this are:

  1. Test new designs and products before launching.
  2. Find out why customers don’t come back.
  3. Get insights on problem areas.

Create relevant promotional materials

Market research helps you understand what text or images to put on your flyers, website, or social media platforms. Since you already know about your target customers’ wants, needs, and frustrations from the research, you’ll know precisely what and how to address them when creating your marketing materials.

Know where to advertise

Limited budgets are one of the biggest problems faced by most businesses, especially after COVID-19. Because of this, your marketing budget should be optimized to give you the best returns possible. Your market research can help ensure that you’re reaching your targeted audience in the channels where they’re most likely to notice you.

 

These are some of the budgetary tasks that your market research can help you with:

  1. Buying ads on social media: If your market research shows that your target audience spends most of their time on Facebook and rarely uses Instagram, you’ll know to allocate most of your social media ad budget to Facebook and ignore Instagram.
  2. Placing fliers and posters: Knowing the physical spaces where your target customer spends most of their time will help you determine where to best place your advertising.
  3. Targeting ads: Online ads, such as social media ads and pay-per-click ads, can often be targeted accurately. If you truly know your customers, you can maximize the potential for targeting.

Outsell competitors

The business that knows its target audience will always have an upper hand. If you can defeat your competitors in finding out your customers’ needs and you pursue to fulfill those needs, you’ve got a better chance of standing out from the competition.

Here are some ways you can use market research to outsell competitors:

  1. Target dissatisfied customers.
  2. Find an underserved customer segment
  3. Identify unaddressed customer needs

Set better goals for your business

When business owners set goals for their businesses, they usually relate to growth in sales or customers. However, without proper market research, you won’t know whether your goal is achievable and the path towards achieving that goal. For instance, you might aim to have double sales by the end of the next quarter.

 

How would you know if this goal is feasible if you don’t know whether your target market is more than twice the size of your current customer base? Without knowing the current size of your potential market, you’ll just be setting unachievable goals. Market research will help you direct the direction you want to take to grow your customer base.

Decision-Making becomes simple

Market research is essential primarily when making tough business decisions. Instead of having unpredictable decision criteria, you can always return to your market research report. Based on that report, the decisions will be more informed, accurate, and successful. Market research provides you with solid facts. While not all decisions should be solved by market research, many of them can be, like where to spend your advertising or marketing budget.

An initial investment in marketing research can save you losses in the long run. Data-backed marketing strategies are not only efficient but also cost-effective and can position your brand as one that cares about its customers’ needs and wants. FunnL – A result-driven B2B Lead Generation Company will do thorough market research before starting your campaign to keep it efficient and squeeze out the most.

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