3 Reasons Why Consumer Research is Important for Startups
For startups, understanding your target audience can be the difference between success and failure. Without consumer insights, your product might miss the mark, leaving your business struggling in a competitive market. A staggering 42% of startups fail because there is no market need for their product—a risk that effective consumer research can help mitigate.
Consumer research isn’t a luxury—it’s a necessity for startups looking to scale effectively.
Launching a business is exciting, but it comes with challenges. One of the biggest is ensuring your product resonates with the right audience. Consumer research helps startups refine their product, minimise risks, and create tailored marketing strategies to build a strong customer base.
Identifying Consumer Needs and Pain Points Helps Boost Engagement by 80%
Understanding what your audience wants and where market gaps exist is crucial. Tools like surveys, interviews, and social listening help businesses develop products that truly address customer needs. A recent study from The Growth Distillery and Verge in Australia showed that brands that use data-driven personalization boost engagement by 80%.
For example, in our work with Compendium, a local distillery, we discovered that while they had the most complete range of spirits among local distilleries, consumers were only familiar with their signature spirits. This limited awareness was restricting sales growth. By leveraging 4Sights Intel, we helped Compendium redesign their website and packaging, highlighting their full range and encouraging exploration of new products—leading to increased engagement and sales.
Understanding Your Consumers Minimises Risk and Uncertainty Threefold
Startups face numerous risks, from market unpredictability to customer apathy. Consumer research helps mitigate these risks by providing insights into customer preferences and market trends, allowing startups to refine their offerings before launching. A white paper by Heap revealed that businesses that conduct market research before launching are three times more likely to succeed, with 98.4% of such businesses having a good to excellent understanding of customer journey friction points because of their consumer research.
When working with American Standard, a global leader in bathroom and kitchen solutions, we found that designers play a crucial role in influencing purchasing decisions. Through 4Sights Intel, we uncovered key insights into how designers select products for their projects. By aligning American Standard’s marketing strategy with designers’ thought processes, we successfully helped the brand reduce their risks and uncertainty, providing a strategy that strengthened its presence in the design community.
Whether you’re a startup or an established MNC, consumer research is now more accessible than ever. With 4Sights Intel’s cost-effective approach, businesses of all sizes can make data-driven decisions to reduce risks and drive growth.
Knowing Your Audience Helps Tailor Effective Marketing Strategies
In a crowded market, startups need targeted marketing strategies to effectively communicate their value. Consumer research allows brands to craft messaging that speaks directly to their audience, increasing engagement and conversion rates.
In our work with Strepsils, a globally recognised healthcare brand, we leveraged consumer insights to develop the “Pick Your Peak” campaign. Using 4Sights Intel, we identified that Strepsils users have different needs depending on their voice usage, from singers to professionals who speak frequently. By tailoring messaging around these distinct consumer segments, we enhanced relevance, increased engagement, and strengthened brand loyalty.
SMEs and startups can also learn from best practices used by global brands. With consumer research, businesses of all sizes can apply proven insights to create impactful, data-driven marketing strategies.
How We Can Help
At Mashwire, we use 4Sights Intel to develop data-driven marketing strategies that drive engagement and business growth. From helping Compendium expand consumer awareness to aligning American Standard with designers’ thought processes and ensuring Strepsils tiles remained top-of-mind in material selection, our research-driven insights have consistently delivered results.
Looking to take your startup to the next level? Contact Mashwire today for a consultation on how consumer research can help you make smarter decisions, reduce risks, and craft strategies that truly resonate with your target audience.
At Mashwire, we use 4Sights Intel to help brands unlock growth opportunities with precise, data-driven strategies. If you want to understand your audience, reduce risks, and drive smarter business decisions, we’re here to help.
