Last month, I watched a startup blow through $50,000 on a product nobody wanted. They skipped market research because they were “sure” they knew what customers needed. However, in the end, it turned out that they didn’t.
When someone mentions how to do market research, your eyes probably glaze over thinking about boring surveys and endless spreadsheets. But here’s the thing – good market research is about having real conversations with real people who might actually buy your stuff.
We’ve been helping businesses figure out their markets for many years, and we’ve seen every mistake in the book. Companies that spend months analyzing competitor websites while ignoring their actual customers. Others who create surveys are so complicated that even they don’t understand the results. And don’t get me started on the ones who think posting a poll on LinkedIn counts as “comprehensive market research.”
But we’ve also seen the wins. The small bakery discovered their customers actually wanted healthy options (not just more cupcakes). The tech startup pivoted its entire product based on three customer interviews. The consultant doubled her rates after learning what her clients really valued.
What Market Research Actually Is
Forget the textbook definition for a minute. Market research is basically organized curiosity about the people who might give you money. That’s it. You’re trying to figure out what they want, what they hate, what keeps them up at night, and what would make them choose you over everyone else.
Some people make it way more complicated than it needs to be. Yes, there are fancy statistical methods and research methodologies that can be helpful. But most businesses just need to understand their customers better, and you don’t need a PhD in statistics for that.
The biggest myth I hear is that “We don’t have time for market research.” Actually, you don’t have time NOT to do it. Every hour you spend understanding your market can save you weeks of building the wrong thing or marketing to the wrong people.
The Two Main Flavors of Research (And When to Use Each)
When you’re learning how to do market research, you’ll run into two main approaches, and honestly, most people explain them in the most boring way possible.
Primary market research is when you go straight to the source. You talk to actual people, run surveys, and watch customers use your product. It’s like being a detective, except instead of solving crimes, you’re solving business problems. It takes more effort, but you get exactly what you need.
Secondary market research is when you dig through existing information – industry reports, government data, and what your competitors are saying online. It’s faster and cheaper, kind of like using someone else’s homework, except it’s totally legal and encouraged.
Here’s what most guides won’t tell you: start with secondary research to get your bearings, then use primary research to fill in the gaps. Don’t overthink it.
How to Do Market Research (Step by Step)
Here’s a step-by-step guide to show you how to do market research.
Start With What You Actually Need to Know
Before you create a single survey question, sit down and write out what you’re really trying to figure out. Not what you think you should be researching, but what would actually change how you run your business.
Maybe you’re wondering if people would pay more for faster delivery. Or whether your product idea solves a real problem. Or why customers keep choosing your competitor. Whatever it is, get specific. “Understanding our customers better” isn’t a research goal.
Figure Out Who You Actually Need to Talk To
This sounds obvious, but you’d be amazed how many people get this wrong. Your target audience isn’t “everyone” or even “people who might be interested.” It’s the specific group of people most likely to buy from you.
If you’re selling premium skincare, you probably don’t need to survey college students eating ramen for dinner. If you’re creating software for accountants, talking to graphic designers won’t help much.
Create profiles of your ideal customers. Not just demographics like age and income, but actual characteristics.
- What are their daily frustrations?
- Where do they hang out online?
- What other products do they buy?
The more specific you get, the better your research will be.
Pick Your Research Methods (Without Overthinking It)
There are about a million different market research methods, but most businesses only need a few basic approaches. Here’s what actually works in real life:
Online surveys are great for getting quick answers from lots of people. Keep them short – people’s attention spans are basically nonexistent these days. If your survey takes more than 5 minutes, you’re doing it wrong.
One-on-one interviews give you the good stuff – the detailed insights you can’t get from multiple-choice questions. Schedule 30-45 minutes with 8-10 people from your target market. You’ll be surprised what you learn.
Focus groups can be useful, but they’re tricky. Group dynamics sometimes mean you hear from the loudest person, not necessarily the most representative opinions.
For small business, I usually recommend starting simple. A few customer interviews and a short online survey will tell you more than months of analysis paralysis.
Ask Questions That Actually Matter
Most market research questions are terrible. They’re either too vague (“How do you feel about our brand?”) or too misleading (“Wouldn’t you agree that our product is innovative?”).
Good market research questions get people talking about their real experiences. Instead of asking “Do you like our product?” try “Tell me about the last time you used something like this. What went well? What was frustrating?”
Here are some question types that actually work:
Behavior questions: “Walk me through how you typically handle [specific situation].”
Problem questions: “What’s the most annoying thing about [current solution they use]?”
Priority questions: “If you could only improve one thing about this process, what would it be?”
Story questions: “Tell me about a time when [relevant scenario] went really well for you.”
Actually Talk to People (This Is Where Most People Fail)
Here’s where the rubber meets the road. You’ve planned everything perfectly, but now you need to actually collect the data. This is where most people either give up or do something half-hearted that wastes everyone’s time.
For surveys, don’t just blast them out on social media and hope for the best. Be strategic about where and how you distribute them.
For interviews, treat them like real conversations, not interrogations. People can tell when you’re just checking boxes versus when you’re genuinely curious about their experience.
Record everything (with permission), take notes, and don’t try to multitask. You’re looking for patterns, surprises, and those “aha” moments that make you rethink your assumptions.
Market Research for Different Situations
Let’s take a look at market research for different situations.
When You’re Just Starting Out
How you do market research for a startup is different from established businesses. You’re not just understanding existing customers – you’re trying to figure out if customers even exist for what you want to build.
Focus on problem validation first. Before you spend months building something, make sure people actually have the problem you think they have. And more importantly, make sure it’s a problem they’d pay to solve.
I’ve seen too many startups fall in love with their solution before confirming the problem. They’ll spend months perfecting their app while their potential customers are perfectly happy with the current (imperfect) alternatives.
When You’re Already in Business
If you’ve been running for a while, your research questions are probably different. You might be wondering about expansion opportunities, customer satisfaction, or why people choose competitors.
The advantage here is that you already have customers to talk to. Use them. Your existing customers are often your best source of insights about market opportunities, product improvements, and positioning.
But don’t only talk to current customers. Also research the people who chose not to buy from you, or who bought once but didn’t come back. Those conversations can be uncomfortable but incredibly valuable.
What Most People Get Wrong
Mistake #1: Making it too complicated. You don’t need a 50-question survey. You don’t need to interview 100 people. Start small, learn something, then build on it.
Mistake #2: Only asking about what they want. People are terrible at predicting what they’ll actually buy. Focus more on understanding their current behavior and frustrations.
Mistake #3: Ignoring the data that doesn’t fit. It’s human nature to notice information that confirms what we already believe. Force yourself to pay attention to surprises and contradictions.
Mistake #4: Researching forever without taking action. At some point, you know enough to make decisions. Perfect information doesn’t exist, and waiting for it is just procrastination with spreadsheets.
The Questions That Actually Move the Needle
After years of doing this, here are the market research questions that consistently provide valuable insights:
“What were you doing before you found us?” This reveals the competitive landscape and customer journey better than asking directly about competitors.
“What almost stopped you from buying?” Uncovers real objections and barriers you can address.
“Who else was involved in this decision?” Helps you understand the buying process and all the people you need to convince.
“What would have to change for this to be a no-brainer for you?” Gets at pricing, features, and positioning in a non-threatening way.
Why This Stuff Actually Matters
The importance of market research isn’t about having impressive charts in your board presentation. It’s about making better decisions with less risk and more confidence.
The benefits of market research show up everywhere: products that actually sell, marketing messages that resonate, pricing that feels fair, and customer service that addresses real problems.
But here’s what most people miss – market research isn’t a one-time thing. Markets change, customers evolve, and new competitors show up. The businesses that stay ahead are the ones that stay curious about their customers.
Research Reality Check
| What People Think Research Is | What It Actually Is |
|---|---|
| Expensive and time-consuming | Can start with informal conversations |
| Requires statistical expertise | Mostly about listening and pattern recognition |
| Only for big decisions | Useful for small improvements too |
| Academic and theoretical | Practical and immediately actionable |
| Boring surveys and reports | Stories and insights about real people |
| Something you do once | Ongoing conversation with your market |
The truth about how to do market research is that it’s more art than science. Yes, there are methods and best practices, but the magic happens when you combine systematic thinking with genuine curiosity about people.
Most business owners already do informal market research – they talk to customers, notice patterns, and pay attention to complaints and compliments. The difference is being more intentional about it and making sure you’re not just hearing what you want to hear.
Whether you’re exploring niche opportunities or broad market trends, the fundamental approach remains the same: get curious, ask better questions, listen carefully, and act on what you learn.
Ready to Stop Guessing and Start Knowing?
Look, you can keep making business decisions based on hunches and hope, or you can actually understand what your customers want and need. Market research is just organized curiosity that pays off in better decisions and fewer expensive mistakes.
We’ve helped hundreds of businesses cut through the confusion and get real insights about their markets. We give you clear, actionable insights that help you make better decisions tomorrow.
Stop wondering and start knowing. Because in business, the companies that understand their customers best are the ones that win.
