Before your eCommerce business idea goes live, you must do market research. This will allow you to determine if there is substantial demand around your ideas.
This article will help you learn several techniques and methods that are essential for market research success. These strategies may require special online tools, and a small financial commitment.
Let’s get started!
You may be asking the question How can I create a successful ecommerce business multiple times. The first step is profiling.
Profiling is the art and science of identifying the traits of your ideal customer. It’s also the key to understanding your audience.
This is essential if you want dropship products to be successful.
Continue scrolling for more information.
Determine the 5 Demographic Factors of Your Clients
Customer demographics, in marketing terms, are statistical data that show the unique characteristics and qualities of your target audience.
This information will make it easier to create a customized marketing experience similar to Amazon’s offers or Netflix’s custom queues.
Personalization is a great way to increase interaction in your marketing audience. Statistics show that personalized emails have 26% higher click-through rates. Segmented campaigns also provide marketers with a 7620% increase in revenue.
What five demographic factors should you know about your client? These could include:
- Required information: Education, Age, Gender, Marital Status, etc.
- Location: zip code, postal address, country, etc.
- Purchase intent: Furniture, electronics, clothing and books
- Buyer Type: online shopper, deal seeker, etc.
- Lifestyle: DIY-er, cord-cutters, etc.
With some online market research tools such as TowerData, Web forms and surveys, you can get to know your target audience.
Determine the 5 Psychographic Factors of Your Clients
Psychographics, on the other hand, provides valuable information about your target audience.
Psychographics can be described as an analysis of a customer’s life to create a detailed profile. This will give you insight into how to select dropshipping products that will appeal to your target audience. These dropshipping product ideas are listed below.
What five demographic factors should you know about your client? These could include:
There are many methods to determine the psychographics of your audience. These strategies include:
- Google Analytics
- Customer interviews
- Customer surveys
- Market research companies
- Analytics for social media
Combining demographics and psychographics can help you reach your audience more effectively and make your marketing costs worthwhile.
Identify the Core Problems of Your Audience
The key ingredient to answering the age-old question How can I dropship? is to identify your target audience’s core issues. Problems refer to issues your target audience may have with your products or your competitors.
This will attract customers to your store, increase revenue and create a buzz.
How can you pinpoint the core problems facing your audience? Here are some strategies:
- Send surveys regularly
- Save and organize the Feedback
- Try to understand their confusion
- Allow customers to leave feedback on your eCommerce website.
Most successful eCommerce shops make the mistake of expecting customers to complain if they aren’t satisfied. Studies show that only 1 in 26 customers who are unhappy will file a complaint, while the rest will go to the nearest competitor.
Also, make sure to spend time with customers and learn their problems.
Behaviors that might reveal your Audience’s Core Problems
Your customers may not be able to verbally express their frustrations but they will display certain traits that you can identify. These are some examples of these behaviors:
- Shopping Carts
It’s a sign of serious warning when customers abandon their orders before they complete the purchase.
They might not be satisfied with the images/videos of the product, or they may find your policies difficult to understand.
- Low user Engagement
Users will quickly leave a site that is too complicated or bulky to navigate. Easy-to-use platforms are more likely to get shoppers to place orders.
It will discourage prospects from purchasing from your store if your site is slow to load or clogged up with pop-ups.
Optimizing your website will increase user engagement. To improve the performance of your store, read ecommerce growth hacking techniques.
- Low Patronage
There are many factors that can cause a dropshipping company to experience low patronage. The most important is “overpriced products”.
Customers are rational thinkers and will walk out of a store if they feel the price is too high.
Before you start thinking about products, it is important to understand the demographics and psychographics.
Find Potential Solutions To Their Problems
Once you have done your research and identified the main problems facing your customers, you can start to brainstorm potential solutions.
An analysis is the first step in solving the problem. You will need to ask questions such as:
- What could be the root cause?
- What does the problem mean for the customer?
- How long have they been doing this?
You can come up with multiple solutions after analyzing the problem.
No matter how original your initial solution may be, you should always come up with other options. Consider their pros and cons before choosing the best.
*Note Solving the core problems of your audience will reveal How to find a niche in dropshipping
Identify the Primary Influencers of Your Audience
You can still learn how do you market research online by using influencers. Your audience will be enriched by their knowledge and support.
Understanding your audience’s mind is possible by looking at their top sites and following them on social media.
Pewdiepie and Shroud are the most popular social media influencers for gamers if your store has a large audience. Their most visited websites could also include TechRapt, Niche Gamer or Gematsu.
Consider the Top 3 Worst-case Scenarios that Might Come About When You Use Your Offerings
It is essential to be able to predict the worst case scenarios when running an eCommerce or brick-and-mortar business. This requires that you put yourself in the shoes of your customers to predict the worst.
Remember that you will need to use your experience and skills to predict adverse outcomes. You will be prepared for almost every negative outcome even though you may not anticipate them all.
Take precautions to avoid negative outcomes after predicting them. In the event of worst-case scenarios, you might consider changing your offer or creating a response.
The most important thing is what product you are going to offer. To find out what is hot in the market, you can use Product Research Tools.
Consider the Top 3 Best-case Scenarios that Might Come From Your Offerings
While worst-case scenarios prepare you against adverse outcomes, Best-case Scenarios encourages you to keep going.
Your customers are not the only thing that should be pursued in every venture. It is important to be sure that your efforts are worthwhile. Access your services to get the best outcome.
Keep going if you are certain that this is a worthwhile venture. If you are unable to see the value in your service, reconsider your offer.
The Benefits of Engaging with Your Business
The primary purpose of any business is to solve its customers’ problems. Before you go live with your online store, identify the benefits it offers.
An online skate shop helps enthusiastic skaters find reliable gears like shoes and helmets. Although a customer can choose to shop in a brick-and-mortar skate shop, the convenience of ordering online and having it delivered within a few hours beats driving long distances.
Remember that your customers expect your store to provide benefits. Your store will not matter if it only offers benefits that aren’t important to your customers.
Get Information from Your Audience’s Favorite Website and Social Media Figures
To understand your audience’s attention, visit their favorite website or follow them on social media. This strategy is important because the influencer has a deep understanding of the consumers.
To get an idea of the personality and motivations of your customers, you can read their content. Take this example:
You should follow Influencers such as Tony Hawk, Mike Mo and Mikey Taylor if you want to dropship skate boards and their gears.
These influencers can provide the information you need to understand your audience.
Marketing trends include influencer marketing. However, there are many fraudsters who use this strategy via bots. Marketers need to spend time finding the right influencer for their business. It is crucial to identify the right influencer. This requires you to be smart.
I talk to many influencers every day and get their demographical analysis. This allows me to see which countries have the largest audience. If the analytics show that the largest audience is from countries with less purchasing power, then I don’t pay attention to the influencer. Choose an influencer with a large audience in the top 5 countries. (USA, UK,Canada,Australia,New Zealand)That makes your ROI higher.
Find out What Media is Relevant to Your Audience
You must organize your online store in a way that makes it easy for customers to find you. This requires some research and not just guesswork. You can also visit popular media sites and note the keywords.
Keywords are important because they make it easier to find your store via Google. Here are some examples:
Your online store should sell virtual goods such as tutorials and assets. This will make it easy for your customers to consume coding tutorials. Sites like Brackeys and Github can do you great.
Identify 5-10 Figures that Influence Your Audience
Influencers are the key to your audience’s hearts and soul. Because customers trust them, they have the ability to direct people towards your product.
This is a great way to capitalize on the opportunity. You don’t have to pay for the shout-out.
Identity with the influencer
Your store will be most popular with visitors if they feel that it is appealing to them in some way. Here’s a list of influencers.
End Your Research
After your research is complete, make sure you summarize it. To attach clips and diagrams to your preferred presentation software, you can use it.
You can use the following method to help you create a summary.
- Describe the purpose of the research
- Provide details about the source of your research.
- Describe the lessons you have learned and the plans that you have for them.
- Describe the triggers for evaluation
- Provide the central theme you have discovered
- Briefly describe your findings based upon the research.
- The complete plan of action for your eCommerce store is detailed
- You can think up and finish things in a way that is easier to comprehend.
Market research can be a very eye-opening task. This reveals how little you really know about your customers. It also exposes flaws in marketing strategies, which can help you advertise more efficiently.
Before you go live with your dropshipping business, make sure that you have a good implementation of this process. This is the next step, after you have asked yourself ” How do I start a Dropshipping Business“.
I am grateful that you have read my article on How to conduct market research for dropshipping. I hope it helps you jump-start your dropshipping venture.