Do you assume what your customers want? Well, your gamble of assumption may give positive results.
But, it may harm your e-commerce business in the long run. How? It’s because you should take planned steps when you want to or have established an e-commerce business. You can take calculative steps by researching the market effectively.
If you want success, it is crucial for your business that you stay updated on e-commerce marketing tools and techniques. Today, both new and established e-commerce companies rely on market research.
Besides, 81% of buyers conduct research before making a purchase online. So, if customers do research for their purchase decisions, you must invest in market research for your business’s growth too. Let’s help you conduct e-commerce market research like a pro.
7 Ways to Conduct E-commerce Market Research Like a Pro
Jason Goldberg, founder, and CEO of Fab.com said, “In the beginning, e-commerce was really about getting commodity products online as cheaply as possible.
Now, we’re moving into the more exciting phase of e-commerce, where it’s about emotional products – the things people really cherish.”
Today, you should know your consumer behavior and purchasing habits as they are constantly evolving.
Therefore, to ensure you stay at the forefront of your industry, you must perform continual research and modify your business strategy. Let’s help you get your research method a direction.
1. Define your target audience
Defining your target audience is a crucial step in any e-commerce business strategy.
To define your target audience, start by gathering demographic and psychographic information about your potential customers, such as age, gender, location, income, education level, interests, values, and lifestyle.
Thereafter, analyze this information to identify common characteristics and patterns. It will help you tailor your marketing efforts and product offerings to meet their specific needs and preferences.
Next, consider conducting surveys, focus groups, and social media monitoring to gather feedback directly from your target audience. This information will help you create a more targeted and effective e-commerce strategy that resonates with your ideal customers.
2. Conduct competitor analysis
Conducting competitor analysis is an important step in developing an effective e-commerce strategy. Here are some steps to follow when conducting competitor analysis:
- Identify your main competitors in the e-commerce space.
- Analyze their website design, layout, and user interface to understand their strengths and weaknesses.
- E-commerce product offering strategies to identify areas where you can differentiate yourself.
- Analyze their marketing and advertising strategies, including their social media presence, email marketing campaigns, and paid advertising efforts.
- Look for gaps in their offerings that you can fill or areas where you can offer a better user experience.
- Use tools like SEMrush or Ahrefs to analyze their search engine optimization (SEO) efforts and identify keywords that they are ranking for.
- Monitor their customer reviews and feedback to understand their strengths and weaknesses from the perspective of their customers.
3. Keyword Research
Conducting a keyword research for an e-commerce business involves identifying the most relevant and profitable keywords that potential customers use to search for products or services.
To conduct keyword research, use tools like Google AdWords Keyword Planner, SEMrush, or Ahrefs to identify popular search terms related to your products or services.
Look for keywords with high search volume and low competition, and consider long-tail keywords to target niche audiences.
Use these keywords to optimize your website and product descriptions, as well as for paid advertising campaigns. Continuously monitor and update your keyword strategy to stay ahead of changing search trends and algorithms.
4. Conduct surveys
When conducting surveys for an e-commerce business, you can consider the following steps:
- Define your research objectives and create a clear and concise survey questionnaire.
- Choose an appropriate survey tool such as SurveyMonkey, Google Forms, or Typeform.
- Determine your target audience and distribute the survey through email, social media, or website pop-ups.
- Offer an incentive or reward for survey completion to increase response rates.
- Analyze the data collected and draw insights to inform your e-commerce strategy.
- Use the survey results to make data-driven decisions, improve customer experience, and drive sales.
5. Monitor social media
Monitoring social media is an important part of any e-commerce business’s marketing strategy. Here are some steps to monitor social media:
- Identify the social media channels where your target audience is present.
- Use social media monitoring tools like Hootsuite or Sprout Social to track mentions of your brand and industry keywords.
- Engage with your followers and respond to any customer inquiries or complaints.
- Analyze your social media metrics like engagement, reach, and conversions to understand the effectiveness of your social media strategy.
- Use social listening tools like Brand24 or Mention to track sentiment and gather feedback from your customers.
- Adjust your social media strategy based on your findings to optimize your social media presence.
6. Attend trade shows and events
Trade shows and industry events are great ways to network with potential customers. You can get a sense of the latest trends and innovations in your industry.
So, attend events where your target audience is likely to be present and engage with them to gather feedback and insights.
7. Analyze website data
Analyzing a website is crucial for your e-commerce business to optimize its performance and improve user experience. Here are some steps to examine your website:
- Use website analytics tools like Google Analytics to track your user’s behavior and website performance.
- Analyze website traffic to understand the sources of traffic, user demographics, and user behavior on the website.
- Evaluate website design and user experience to ensure it is user-friendly and optimized for conversions.
- Review website content to ensure it is relevant, engaging, and optimized for search engines.
- Analyze sales and revenue data to understand sales trends, conversion rates, and customer behavior.
8. Use focus groups
Focus groups are a more in-depth way to gather feedback from potential customers. So, invite a group of people who fit your target audience to participate in a moderated discussion about your products or services.
It will provide you valuable insights into their needs and preferences and any pain points they may have.
9. Analyze customer reviews
Customer reviews are a great source of feedback and insights into your products or services. Therefore, monitor reviews on your website and third-party sites like Amazon or Yelp.
Further, look for patterns in the feedback to identify areas where you can improve or differentiate yourself from the competition.
10. Use data visualization tools
You can use Data visualization tools like Tableau or Google Data Studio to analyze and present your market research data visually. It makes it easier to identify patterns and trends and communicate your findings to stakeholders and team members.
In conclusion, conducting thorough market research is essential for the success of any e-commerce business. Today, e-commerce has become an increasingly popular way for businesses to sell their products and services online.
So, to succeed in this competitive market, you should essentially conduct thorough market research. It’ll help you understand the needs and preferences of potential customers.
Moreover, by using a variety of tools and techniques, you can gain valuable insights into your target audience, competitors, and industry trends.
It’s time you make informed decisions and optimize your online presence to take your e-commerce business a level up.
Hi there, myself Shrey Kajaria, a Blogger, Graphic Designer, YouTuber, and Filmmaker. I share different growth strategies, and also help other people to make money online with my tactics and strategies.