Small Firms Must Research to Understand Recession Needs

Small firms need to conduct market research if they are to keep up with customers’ changing attitudes and survive the recession, say marketing experts.

Consumer mindsets are changing and small firms need to find out exactly how if they are not to be left behind, says marketing guru Stephen Phillips, chief happiness officer of Spring Research and expert contributor to the new one-stop source of marketing information and resources for small businesses, Marketing Donut.

“All businesses need to get a richer feel for what people are thinking and doing now. There is a general feeling that people’s models of the world are changing at the moment,” says Phillips. “People are becoming more sceptical and are now more interested in community than consumption. Businesses need to adapt to that as their previous understanding of their customers may well be wrong.”

Phillips says the changes in people’s attitudes may prove very positive for many small businesses as experts believe they are moving against the big corporates and in favour of smaller, local businesses. However, to really understand in detail how economic changes are affecting customers in any one sector, market research is essential.

He stresses that small firms do not need to spend a fortune. Both qualitative (ideas and motivations) and quantitative (measurement) research can be cheap and accessible for business owners and managers.

“I’m a DIY fan,” he says. “You don’t need to be an expert in methodological issues. You just need to let people tell you what’s going on. If you sell to young women, go out and talk to young women. If you sell to older people, talk to older people.

“Look at surveys in the press and online. There are plenty of them about at the moment. Small firms don’t need to spend money themselves, but can take advantage of the money other people have spent. If they do want to do their own survey they can use something like Survey Monkey very easily and inexpensively.”

He adds: “Market research will enable businesses to understand customer changes better and consider how these changes impact upon their brand and category. It is time now for businesses to stop and use research to help rethink their core value-proposition.

“Get yourself out there do the market research.”