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How Market Research Increases the Return on Investment (ROI) of Marketing Campaigns

Updated: Sep 14, 2023

In today's world, where competition is fierce and consumer attention spans are limited, it is essential for businesses to run successful marketing campaigns to grab the attention of potential customers. However, to do this best, you need data. Solid, well-organized data can help inform your decisions to save you money and expand your market as you efficiently reach current and new customers. Here at KASI Insights, we were the first to provide quality market research on African markets our clients can count on. We give market research the speed, agility, and power so you can uncover growth opportunities before your competition.


What is Market Research?


Market research is the process of collecting and analyzing information about a target market or audience. The information collected through market research can be used to understand customer behavior, preferences, and needs. The goal of market research is to help businesses make informed decisions about product development, marketing strategies, and overall business operations.


Be aware not all market research can be trusted, and not all marketing campaigns are created equal, and some may not produce the desired results. This is why you need to be confident in the quality of your market research company’s process and therefore resulting data.


Market Research

How Market Research Can Increase ROI


Market research can play a significant role in increasing the ROI of marketing campaigns. Mainly, when your businesses can rely on this data, you can better understand your target audience and create effective marketing campaigns that can yield the highest returns on investment (ROI).


Here are some specific ways in which market research can help:


1) Identifying the target audience: One of the most critical aspects of a successful marketing campaign is identifying the best parameters for your target audience. Market research can help businesses understand their target audience's demographics, behavior, and preferences, which can help create targeted campaigns that resonate with the audience. This can lead to higher engagement and conversion rates, resulting in a higher ROI.


Parameters are the specific characteristics of your target audience that will help you create a more accurate profile of who they are and what they want. The more precisely you can define your parameters, the more effective your marketing campaign will be.


If your parameters are too wide, your message will be diluted and ineffective. Casting too wide of a net means you'll be marketing to people who are not interested in your product or service. This wastes valuable time and resources, and you may end up with little to no return on investment (ROI). For example, if you are a luxury car dealer and your parameters are set too wide, you may end up marketing to people who cannot afford your product, which would not be the most effective use of your marketing budget.


On the other hand, if your parameters are too narrow, you may miss out on potential customers who would be interested in your product or service. For example, if you are marketing a new vegan protein powder and you only target people who are already vegan, you may miss out on people who are interested in trying new vegan products, but are not yet fully committed to a vegan lifestyle. This means you'll be limiting your potential audience and missing out on opportunities for growth.


Therefore, it is important to strike the right balance when it comes to defining your target audience parameters. It requires careful analysis of your product or service, your industry, and your customer base. By working with a market research company like KASI Insights, you can gain valuable insights and data-driven recommendations on how to best define your parameters for your target audience.


Ultimately, the more you can narrow down your parameters to the specific group of people who are most likely to be interested in your product or service, the more effective your marketing campaign will be, and the higher your ROI will be.


2) Best channels for your targeted audience: Once you’ve identified your target audience, you’ll want to identify the most effective marketing channels for reaching their target audience. With so many marketing channels available, it can be difficult to determine which ones will be the most effective for a particular audience. Market research can help businesses identify the channels that their target audience uses most frequently, as well as the types of content and messaging that resonate best with that audience. This can help businesses optimize their marketing efforts and get the best possible ROI.

  • Once you have identified your target audience, it's crucial to determine the best channels to reach them. This involves understanding where your audience spends their time and how they prefer to receive information. There are a variety of channels available to marketers today, including social media, email marketing, search engine advertising, content marketing, influencer marketing, and more. Each channel has its own unique strengths and weaknesses, and selecting the right one for your campaign can greatly impact its success.


Selecting too many channels can lead to dilution of resources and effort. It is better to focus on a few channels where your target audience is most active rather than spreading yourself too thin across multiple channels. By focusing on the right channels, you can improve your return on investment (ROI) by reaching the most qualified prospects and improving the quality of your leads.


Additionally, it's important to note that not all channels are created equal. Some channels may generate more leads than others, but they may not necessarily be of high quality. For example, paid search ads may generate a high volume of leads, but they may not be as engaged or ready to convert as leads generated through content marketing or social media.


By focusing on the fit and quality of the channels rather than the quantity or volume of using multiple channels, you can ensure that your marketing efforts are targeted and effective. This involves understanding the unique strengths and weaknesses of each channel and tailoring your message accordingly. For instance, social media is a great channel for building brand awareness and engagement, while email marketing is more effective for nurturing leads and driving conversions.


Choosing the right channel for your campaign can also help you overcome the disadvantages associated with using the wrong channel. For example, using a channel that your target audience doesn't frequent can lead to wasted resources and low engagement rates. Similarly, using a channel that doesn't align with your campaign goals can result in low-quality leads or missed opportunities for engagement.


In summary, selecting the right channels for your campaign is critical for maximizing your ROI and reaching your target audience effectively. By focusing on the fit and quality of the channels rather than the quantity or volume of using multiple channels, you can ensure that your marketing efforts are targeted and effective. This involves understanding the unique strengths and weaknesses of each channel and tailoring your message accordingly, as well as avoiding the disadvantages associated with using the wrong channel or using too many channels.


3) Understanding customer needs: Market research can also help businesses understand their customers' needs and pain points. By addressing these needs through marketing campaigns, businesses can build trust with their customers and increase the chances of conversions. This can lead to higher customer satisfaction and loyalty, resulting in repeat business and a higher ROI.

  • Understanding customer needs is crucial to any marketing campaign's success because it helps you develop products or services that meet those needs, thereby increasing customer satisfaction, loyalty, and ultimately, revenue. Market research can uncover valuable information about customer needs, preferences, and behaviors.


For example, market research might reveal that customers are willing to pay more for a product with faster shipping or free returns. This information could help a company decide to offer premium shipping options or improve its returns policy to attract more customers. Similarly, research might indicate that customers in a particular market prefer products with specific features or that they have a preference for a certain type of packaging. Armed with this knowledge, a company can tailor its product offering to better meet customer needs and preferences.


Another example of customer needs that market research can uncover is related to international shipping. If a company is considering expanding its business overseas, it's essential to understand the unique challenges and expectations of customers in different countries. For instance, research might reveal that customers in certain countries expect fast and reliable shipping, while others are more concerned about customs fees and taxes. By understanding these needs, a company can develop a strategy for international expansion that addresses these concerns and meets the needs of customers in each market.


Preferences for free shipping is another example of what market research can uncover about customer needs. In recent years, free shipping has become an increasingly popular expectation among consumers, particularly in the e-commerce industry. Market research might reveal that customers are willing to pay more for a product if it comes with free shipping, or that they're more likely to abandon a purchase if they're charged for shipping. By understanding this preference, a company can adjust its pricing and shipping strategy to meet customer expectations and remain competitive.


Thus, understanding customer needs is a vital part of any successful marketing campaign, and market research can help uncover valuable information about those needs. By understanding what customers want, companies can develop products and services that meet those needs, improve customer satisfaction and loyalty, and ultimately increase revenue.


4) Analyzing competition: In today's rapidly changing market, companies that fail to keep up with the competition risk losing customers and ultimately, their business. Market research is a powerful tool for staying ahead of the competition by providing valuable insights into the competitive landscape. Market research can help businesses analyze their competition and identify areas where they can differentiate themselves. By creating unique selling points (USPs) based on customer needs and preferences, businesses can create marketing campaigns that stand out from the competition. This can lead to higher brand awareness and recognition, resulting in a higher ROI.


Market research can help companies understand their competitors' strengths and weaknesses, as well as their strategies for success. By identifying what their competitors are doing well and where they are falling short, businesses can develop a strategy that differentiates them from the competition.


Market research can also uncover new trends and emerging markets that competitors may not have tapped into yet. By staying ahead of the curve, businesses can position themselves as industry leaders and gain a competitive advantage.


Moreover, market research helps companies understand their customers' perceptions of their competitors. This information can be used to identify areas where the competition is falling short and where there may be opportunities to improve upon their own product or service offerings.


In addition, market research can reveal how competitors are pricing their products or services, giving businesses insight into what price points may be competitive and attractive to customers. It can also uncover new distribution channels or marketing tactics that the competition is using effectively.


By staying ahead of the competition through market research, businesses can remain agile and adapt to changes in the market before their competitors do. This allows them to anticipate and respond to changing customer needs, industry trends, and emerging technologies, keeping them relevant and successful in the long run.


5) Testing campaigns: Market research can also be used to test marketing campaigns before launch. This can help businesses identify potential flaws and make adjustments before investing significant resources. By testing campaigns, businesses can optimize their marketing efforts and increase the chances of success, resulting in a higher ROI.

  • Testing campaigns before launch is an essential aspect of any successful marketing strategy. It allows businesses to identify potential flaws in the campaign and make necessary adjustments before committing significant resources. This can save both time and money in the long run.


Market research is an effective tool for testing marketing campaigns. Through market research, businesses can get feedback on their campaign ideas and identify potential issues that may affect the success of their marketing efforts. By conducting surveys, focus groups, and other research methods, businesses can gather valuable data on consumer attitudes and preferences towards their campaign ideas.


One of the benefits of testing campaigns is that it allows businesses to optimize their marketing efforts. By identifying potential flaws and weaknesses in a campaign, businesses can make necessary adjustments to improve its chances of success. This can lead to a higher ROI as marketing efforts are more likely to resonate with their intended audience.


Another advantage of testing campaigns is that it can help businesses avoid costly mistakes. A campaign that fails to resonate with consumers can result in wasted resources and lost revenue. By testing campaigns before launch, businesses can reduce the risk of failure and avoid costly mistakes.


Overall, testing campaigns through market research is an effective way for businesses to optimize their marketing efforts and increase the chances of success, resulting in a higher ROI. By identifying potential flaws and making necessary adjustments before launch, businesses can save time, money, and resources while increasing the impact of their marketing campaigns.


The Impact of Market Research on ROI


As you can see, market research can have a significant impact on the ROI of marketing campaigns. By leveraging the insights gained from market research, businesses can create more targeted and relevant marketing campaigns that resonate better with their target audience.


This can result in higher engagement, better response rates, and more sales.

For example, a study by the Market Research Society found that businesses that use market research to inform their marketing strategies are more likely to achieve their business objectives and see a positive impact on their ROI. The study found that businesses that use market research are 73% more likely to achieve their business objectives and 68% more likely to see a positive impact on their ROI.


Another study by McKinsey & Company found that companies that use data and analytics to inform their marketing decisions are more likely to see a positive impact on their ROI. The study found that companies that use data-driven insights to inform their marketing decisions are 6 times more likely to see a 2% increase in ROI.


Using KASI Insights for Your Market Research to Improve ROI


Conducting market research in African markets can be challenging due to the lack of reliable data and information available that historically hasn’t been gathered or made easily available. This is where KASI Insights comes in as an excellent tool for conducting your market research in African markets and improving ROI.


We are Africa's leading provider of data, measures, and insights that help businesses understand the behavior of the average African consumer. With over four years of data, KASI Insights has surveyed thousands of average Africans from over 10 countries, analyzing over 10 million data points to unlock unparalleled insights and opportunities for market-creating companies.


One of the key benefits of using KASI Insights for market research in African markets is that their data and insights are readily available via their platform. This means that businesses can explore, unlock, and activate consumer insights instantly, enabling them to make data-driven decisions quickly.


KASI Insights tracks over 40 brands and has conducted over 150k survey interviews, making it an invaluable tool for businesses looking to understand consumer behavior and preferences in African markets. The insights provided by KASI Insights enable businesses to identify early signs of market shifts and unlock market-creating opportunities for their business.


Furthermore, KASI Insights is rooted in data and has a team of researchers, data scientists, statisticians, economists, and other technical experts with education ranging from psychology to engineering. This diverse team draws on research best practices to design the best survey and statistical techniques from a range of fields to turn survey data into normalized data ready for visualization. By providing not just data but a data analytics platform, KASI Insights empowers businesses to uncover their insights and opportunities.


Using KASI Insights for market research in African markets can improve the ROI of marketing campaigns by providing businesses with insights into consumer behavior and preferences. These insights enable businesses to tailor their marketing strategies to reach their target audience effectively, resulting in higher conversion rates and increased revenue.


For example, a company looking to market a new product in a specific African market can use KASI Insights to understand consumer behavior and preferences in that market. They can then tailor their marketing strategies to reach their target audience effectively, resulting in higher conversion rates and increased revenue.


Conclusion


As we have shown again and again in this article, market research is an essential tool for businesses looking to improve the ROI of their marketing campaigns. Conducting market research in African markets can be challenging due to the lack of reliable data and information available.


However, KASI Insights provides businesses with the data, measures, and insights they need to understand the behavior of the average African consumer and unlock market-creating opportunities. By using KASI Insights for market research in African markets, businesses can improve the ROI of their marketing campaigns by tailoring their marketing strategies to reach their target audience effectively.


Contact our team today to explore how our brand intelligence can empower your decision-making process. Win with confidence with Kasi insights https://www.kasiinsight.com/thehub

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