Conducting nonprofit market research is incredibly important for a variety of reasons.
Because nonprofits are so specific based on audience needs, market research helps shed more light on key demographics.
Since doing this will help organizations better understand the needs of their audience, they can better align programs based on those needs.
When nonprofits conduct market research, they're also able to optimize their outreach strategy due to the data. This will aid in everything from marketing campaigns to improving internal organizational features.
Let's explore more.
Step 1. Getting Started With Nonprofit Market Research
The first step for nonprofits to begin market research is to list out their main objectives for the project.
Often, these objectives include creating a set of main goals for the research to achieve and understanding which methods are best to use.
Figuring Out Your Goals
Having a solid set of objectives will make the market research process far easier.
Typically, this means identifying main questions and challenges that need to be addressed by the nonprofit.
Often, this includes topics like:
- Target audience preferences and details
- Organization challenges
- Discovering potential donors
After that, the nonprofit can begin prioritizing these goals based on their importance and overall timelines.
It's also important for nonprofits to ensure these goals are attainable and timely, so as not to waste money and time!
Always remember that establishing goals for market research should be done with the bigger picture in mind.
Meaning, understanding how they can help a nonprofit in the long run.
Reasons to Use Market Research
We've already covered that when nonprofits use market research, they'll receive new data on how to cater to their audience.
In turn, this will help nonprofits create more community-centered initiatives based on accurate data.
But what are some other key reasons nonprofits should invest in these tools?
One key reason is that market research will help nonprofits identify and engage with potential donors.
Since these relationships are essential to the continued growth of a nonprofit, it's a pretty big reason for them to consider.
Nonprofits, and any other type of business/organization, will see their marketing strategies become more successful by using market research data.
This is because instead of just assuming what may click with their audience, they now have direct audience feedback to help them make data-driven decisions when it comes to marketing strategies.
Another benefit here is that with this data, nonprofits can save time and money and channel that into campaigns that will be a success.
Lastly, market research will help nonprofits stay updated on main trends within the industry along with potential issues.
This will help them stay on top of the competition and maintain relevancy within the community.
Step 2. Deciding On Your Methodology
We've covered how important it is for nonprofits to identify the key objectives they want to focus on.
Related to this is the urgency of the project. What needs to be addressed immediately? What can wait? Asking these questions will ensure the nonprofit allocates resources accordingly.
Again, nonprofits will need to consider key stakeholders and audience members when it comes to their research.
They will need to take into out the following points related to these groups:
- Needs
- Challenges
- Opportunities
It will be helpful for these nonprofits to collaborate with staff, board members, and other relevant community figures to gather even more insights.
This can also help nonprofits weigh the impact of the market research project and how they choose to use their data.
Qualitative or Quantitative (Or Both!)
Qualitative research options like focus groups and in-depth interviews help nonprofits to take a deeper look into their target audience.
This type of research focuses on gathering detailed insights that will provide nonprofits with data on the perceptions and experiences of their target audience.
What's more, qualitative research will help nonprofits determine community needs and barriers. From there, they can move forward with clear action plans based on the data.
Whereas, quantitative market research like surveys provides nonprofits with large-scale data.
This is ideal for measuring trends and recurring patterns over a period of time. The goal here is that nonprofits would use this type of data to make informed decisions based on the findings.
It's a good idea to combine both qualitative and quantitative methods to get the maximum amount of usable data.
Surveys Are A Common Choice for Nonprofits
Conducting online surveys is a fast and cost-efficient way nonprofits can easily gather data, making it a popular methodology for nonprofit organizations.
When working with a research team, the nonprofit will be able to detail what questions they believe are critical to include in the survey.
From there, the survey will be delivered to relevant participants to take.
The data collected will then be carefully reviewed and placed in a full market research report.
The power of a good report should never be underestimated, as it includes detailed rundowns of survey findings and expert recommendations on how to use the data.
Recommended Reading: How to Complete a Community Survey As A Nonprofit
Step 3. Executing Your Project
A market research project, whether for a nonprofit or other business, will always have constants. The goal is to gather actionable data, which can only be done by following certain guidelines.
The process will range depending on the methodology you choose but often includes the following steps:
- Project kickoff meeting where we discuss the goals and objectives of the study
- Design survey questions, interview questions, or focus group moderator guide
- Fielding the survey or hosting the qualitative interviews
- Analyzing the feedback
- Creating a market research report, breaking down the data into actionable results
- Hosting a debrief meeting to discuss the results in details
Step 4. Organizing and Analyzing Your Data
Once the data has been gathered, a thorough review is essential. A survey may gather fantastic data but if it's not reviewed properly, none of it matters.
Cleaning survey data is when the research team pours over the feedback to make sure only the best is used in their final report.
Cleaning data includes:
- Looking for duplicate entries
- Straightlining (when respondents quickly answer questions, choosing the same option)
- Too-fast complete times
- Wrong answers to red-herring questions
These are just a few important elements that researchers keep an eye for while reviewing data. The goal is to discover these "faulty" responses and remove them so the nonprofit receives only the highest-quality feedback.
Step 5. Creating a Report
Researchers will gather all the data, once cleaned, and place it in a report for the nonprofit. This can range from a topline summary to a comprehensive report.
Additionally, a debrief meeting is especially helpful here, where the research team meets with the nonprofit to answer any lingering questions.
What To Expect Out of Your Market Research Results
When crafted by a solid research team, nonprofits can expect to receive relevant data on their community.
Again, the report will include all of this data along with an action plan for the nonprofit.
This leads back to why it's so important to have a clear set of objectives going into a market research project. By doing this, nonprofits will ensure they'll be pleased with the final data!
Frequently Asked Questions About Nonprofit Market Research
To wrap things up, we've included some common questions about conducting market research in the nonprofit space. Let's do a quick review…
How to Do Market Research For a Nonprofit Organization?
To conduct market research for a nonprofit organization, start by defining your target audience and their needs. Utilize surveys, interviews, and focus groups to gather data on their preferences, behaviors, and awareness of your organization's mission. Analyze this information to tailor your programs and outreach efforts effectively.
How Do Charities Use Marketing Research?
Charities use marketing research to understand their donors' motivations, preferences, and behaviors. By analyzing data on donor demographics, giving patterns, and communication channels, charities can tailor their fundraising campaigns and outreach strategies to maximize impact.
Additionally, market research helps charities identify emerging trends, assess the effectiveness of their programs, and adapt their messaging to resonate with their target audience.
How Do Nonprofits Conduct Research?
Drive Research is a market research company based in New York. Our team will partner with your nonprofit, working to find the best market research solutions for your organization. In doing so, your organization will receive actionable data relevant to your specific community needs.
To learn more about our market research services, get in touch with us today!
- Message us on our website
- Email us at [email protected]
- Call us at 888-725-DATA
- Text us at 315-303-2040
Lark Allen
As a Content Marketing Specialist, Lark has a strong background and passion for creative, professional, and journalistic writing. She is also a self-proclaimed music freak and 90s enthusiast.
Learn more about Lark, here.
