The manufacturing industry is no stranger to variety and complexity. From offering hundreds of thousands of SKUs to balancing supply chains, the ability to adapt and innovate is crucial.
When it comes to manufacturing market research, the landscape is no different—numerous options exist, each designed to solve unique challenges with actionable insights.
Market research is the foundation for informed decision-making, enabling manufacturers to understand customer needs, optimize products, and identify new opportunities. But the right research approach can make all the difference.
In this blog, we’ll explore:
- What manufacturing market research entails
- Why manufacturing companies should prioritize it
- The best market research options for manufacturers
- A compelling case study showcasing the impact of research on manufacturing
What is Manufacturing Market Research?
Market research involves gathering data and insights about a target audience, service/product, or broader industry to guide business decisions. More specifically for manufacturers, market research can be essential for optimizing production lines, understanding customer demand for specific product features, evaluating supply chain efficiencies, and more.
Why Conduct Manufacturing Market Research?
Market research offers numerous benefits for manufacturers. Here are a few key reasons why it’s worth the investment:
1. Data-Driven Product Development
At a high level, market research helps manufacturers understand customer needs and preferences. With this insight, companies can produce products specifically designed to meet real consumer demand.
For example, conducting new product demand surveys can uncover things like must-have features and optimal price points for your target audience before investing too much time and resources into product development.
The small investment in market research in the early stages can avoid the risk of a failed launch.
2. Improve Customer Satisfaction
Our market research company always recommends manufacturers track customer satisfaction metrics like Net Promoter Score (NPS) and Customer Effort Score (CES). It is metrics like these that provide actionable insights to build customer loyalty.
For example, let’s say you are a manufacturer specializing in industrial machinery. When tracking NPS you discover customers consistently recommend your products for durability but often mention delays in technical support. Simultaneously, customer satisfaction surveys reveal that navigating your support portal is a significant pain point.
With these insights, your manufacturing company is confident in what it needs to prioritize: streamlining the support portal and hiring additional support staff. Within six months of making these changes, NPS increases by 15 points, and CES improves by 20%, directly correlating to a 10% increase in repeat purchases and an uptick in new client referrals.
3. Expand into New Markets
We find that feasibility research is crucial for manufacturers considering market expansion. This type of market research specifically analyzes potential markets, allowing manufacturers to identify the best opportunities, assess demand, and anticipate challenges.
For instance, entering a new geographic region requires understanding local regulations, competition, and customer preferences. Similarly, targeting a different industry involves evaluating its size, growth potential, and alignment with your products or services. Market research will help steer manufacturing companies toward the most profitable opportunities.
4. Optimize Internal Operations
Market research isn’t just for gathering customer and industry insights—it can also improve internal operations through methods like manufacturing employee surveys.
In fact, tracking employee satisfaction and engagement is critical, as studies show that manufacturers with highly engaged employees are 21% more productive (Gallup).
By identifying pain points through market research and then fixing employee concerns, manufacturers can reduce turnover, improve workplace morale, and enhance overall efficiency.
Best Market Research Options for Manufacturers
When it comes to choosing a market research project, manufacturers have a variety of methodologies to consider. Here are five popular options our market research company often recommends:
1. Voice of Customer (VoC) Survey
VoC surveys are a top choice for manufacturers. They provide actionable feedback on customer needs, satisfaction, and loyalty. These surveys typically include 20-25 questions and can be distributed via email, making them a quick and cost-effective option. Key insights include NPS ratings, word associations, and improvement areas.
2. Mobile Ethnography
This innovative method allows customers to document their experiences through videos and photos, providing rich insights into processes like product installation. For manufacturers, this can uncover issues that may not be evident through traditional surveys and offer clear visual evidence for product or process improvements.
3. New Product Development Interviews
Before launching a new product, manufacturers can use in-depth interviews to gather input from customers and stakeholders. This research helps fine-tune product features, pricing, and go-to-market strategies, ensuring the new offering aligns with market demands.
4. Feasibility Research
Manufacturers exploring market expansion or diversification can benefit from feasibility research. This approach evaluates potential opportunities using both primary and secondary data, guiding decisions on whether to target new markets, products, or customer segments.
5. Customer Online Focus Groups
For manufacturers with a geographically dispersed customer base, online focus groups provide a flexible way to gather feedback. Participants engage in virtual discussions over a few days, sharing insights and reacting to others’ responses. This method is particularly effective for exploring complex topics or testing new concepts.
Manufacturing Market Research Case Study
Objectives
A machine controls and solutions manufacturer partnered with Drive Research to conduct a VoC survey. The goal was to understand customer needs, satisfaction, and loyalty drivers. Insights from the survey were used to create strategies for a more customer-centric culture over the next 3-5 years.
Approach
The survey was distributed via email to a customer list provided by the client. A pre-awareness email from a C-level executive boosted response rates. The survey, consisting of 24 questions, took 7-8 minutes to complete. Two reminder emails and follow-up phone calls helped achieve a high response rate of nearly 600 participants. The entire project was completed in just five weeks.
Results
Key findings:
- Customer Perception: Customers associated the brand with professionalism and reliability, with perceptions influenced by website interactions and sales representatives.
- NPS Results: The manufacturer’s NPS score provided benchmarks for measuring loyalty and identifying areas for improvement.
- Customer Preferences: Insights into communication preferences and decision-making factors helped the client prioritize improvements.
- Employee Influence: Analysis revealed a strong correlation between employee interactions and customer loyalty.
- Awareness: Data on product and service awareness highlighted opportunities for cross-selling.
In addition to gathering customer feedback, the survey provided:
- Testimonials for marketing purposes.
- Insights for building an in-house customer panel.
- A process for responding to customer issues promptly, resulting in improved relationships and additional sales.
Drive Research recommended implementing a customer experience (CX) program, including:
- Transactional Surveys: Ongoing feedback on recent orders to identify and address issues.
- In-Depth Interviews: Detailed discussions with key customers to explore topics further.
The project’s findings empowered the manufacturer to make data-driven decisions and foster a stronger customer-focused approach.
Contact Our Manufacturing Market Research Company
Drive Research is a global manufacturing market research company located in New York. Our team works with manufacturing clients across the world to assist their organizations with market research projects including surveys, in-depth interviews, and new product development. Our data guides decisions and strategy. Interested in learning more? Contact our team today.