There's no doubt that the sports betting landscape continues to evolve.
In fact, betting on sports accounts for up to 40% of all legalized gambling revenue nationwide.
As it does, using market research will be crucial to help betting companies and platforms stay efficient, while also growing amongst the competition.
Below are sports betting market research options relevant companies should consider in 2024 and beyond.
Benefits of Market Research for Sports Betting Sites
No matter the topic, market research aims to gather key data points to optimize an outcome.
In the sports betting industry, this ideal is especially important. Betting companies have much to gain from investing in this research.
A few benefits of sports betting market research include...
- Increased knowledge of the target audience
- Better knowledge of market trends
- Competitor insights
- Product enhancement details
- Pricing information
- Risk Management
We'll expand on each of these benefits below!
1. Better Understand Your Target Audience
It's essential for sports betting websites to have a keen awareness of who interacts with them.
Gathering information on a target audience will tell these organizations how they can better cater to customer needs. For instance, a company may think they have their customer outreach strategies perfectly laid out--but instead, they're missing the mark completely.
Market research tools are used to gather data on these audiences so betting companies don't miss the mark.
The research will reveal:
- Audience preferences
- Audience behavior
- Demographic data
- Purchasing habits
This data allows betting companies to improve outreach strategies and gain a competitive edge over rivals.
2. Stay Up to Date on Market Trends
Conducting market research will help sports betting companies stay updated with trends.
In turn, this allows them to keep an eye on changing customer preferences. Additionally, trend data can alert companies to sports and preferred betting practices.
Having knowledge of this type of trend data can also open new opportunities in marketing and other outreach methods.
3. Assess Competitors
Competitive assessments are essential if you want your business to thrive.
This type of market research is used to measure these key aspects of rival betting companies:
- Strategy
- Pricing options/promotions
- Strengths/weaknesses
- Customer satisfaction
- User experience (UX)
Using competitor data, betting companies can make changes to their own strategies.
4. Enhance Product Development
Data-driven decision-making is huge for sports betting companies.
In such a competitive (and growing) industry, these organizations need to base each decision they make on relevant feedback.
Such feedback can be gathered through…
- Relevant customer feedback
- Conducting surveys
- Monitoring user behavior
When companies (sports betting or otherwise) use this data, they can advance faster than companies that don't have access to this info.
5. Better Optimized Pricing and Promotions
Conducting market research will allow betting sites to land on the correct service pricing.
The data obtained will reveal the best price points based on the needs of your customer base. This is one of the most important areas to measure with market research. After all, customers aren't going to pay for a service they deem out of their budget.
This move will also reveal competitor pricing strategies--an essential piece of data for sports betting companies to get ahead.
6. Risk Management
Lastly, betting companies will be able to evaluate potential risks by conducting market research.
Once a company understands these risks, they're able to avoid them--saving time, money, and customers.
But what are the best ways to measure risk? Consider the following...
- Analyzing key market data points
- Customer feedback
- Monitoring regulatory landscapes
💡 The Key Takeaway: The sports betting market is one that's constantly evolving. Conducting market research is a great way for betting sites to remain relevant.
Recommended Reading: What are the Benefits of Market Research?
Market Research Options for Sports Betting
Now that we've covered the benefits, we'll cover a few of the best market research options for betting companies.
Remember--each sports betting site is unique and will require a different strategy. What may work for one company may not be the best fit for another.
If you are unsure of what methodology is best for your unique goals and objectives, I recommend contacting a market research company like Drive Research. Our full-service research agency will provide a project plan that best fits your needs, timeline, and budget.
For a short synopsis, here is a brief video on the most popular types of market research.
Keep reading for an in-depth review of each of these market research options for sports betting sites.
1. Customer Satisfaction Studies
Customer satisfaction studies are an excellent way for sports betting companies to reach out to their customers, obtain feedback, and take action with the results.
Typically conducted through online surveys, these studies can measure product usage, uncover pain points, as well as other areas of opportunity for growth and improvement. This is also a great place to gather thoughts on pricing, and overall product viability.
2. Competitor Analysis Research
A good way to stay relevant amongst the competition is to conduct competitive market research.
While methods vary, the idea is to gather statistics, facts, or insights from competitors that a company can use to measure or evaluate its own business.
One tactic that can be deployed is mystery shopping, in which a third party is used to gather intelligence such as product offerings and pricing structures.
Using a third party, information collected will be provided in a non-biased manner that will allow a company to take an objective at the results, thus, can make a better-informed business decision.
3. Intercept Surveys
A popular form of “in-the-moment” research is known as a website intercept survey.
Typically, site intercept surveys are conducted on a website at the conclusion of a transaction.
In the case of sports betting, a user would be served a brief survey through a “pop-up” window after placing a wager or completing a transaction.
Questions are usually centered around overall website experience, but they can also gather information around the ease of their most recent transaction.
The key benefit is to capture feedback in real-time so that enhancements to the website experience can be made quickly.
4. Focus Groups
Focus groups are a great way to gather detailed insights into consumer opinion.
Much of what would be covered in sports betting focus groups would include…
- Evaluating user experience
- Messaging and promotional outreach
- Perception of competitor materials
Again, it all comes back to the target audience. Focus groups will narrow down what's working for a betting site and what just doesn't hit. What's more, focus groups foster conversation amongst participants--meaning you may discover small details that have a big impact.
5. Social Media Listening
This tool provides insight into a betting company's social media outreach. It's important to prioritize social media simply because so many consumers place importance on it.
In fact, 62% of Instagram users use the platform to research brands/products, and 90% of users follow at least one business. This just goes to show that to really make an impact, betting sites need to invest in these platforms.
Social media listening will reveal:
- Comments
- Mentions
- Other key engagement metrics
With this information, betting companies can better understand who's interacting with their content. As a result, they'll be able to cater to their base.
💡 The Key Takeaway: There are many tools a betting site can use to increase its success. Each tool mentioned above gathers important data about consumer usage and opinion.
What to Look for in a Market Research Company
Now that we've covered the benefits and tools related to using market research, let's cover what you look into when considering a firm to work with.
Partnering with a third-party market research company is essential. Trying to conduct market research internally is often a gamble with more cons than pros.
Below, we've compiled some of the top factors to consider before choosing a company to outsource your market research.
1. Industry Expertise
First off, it's key to partner with a team that already has experience within the sports betting industry or as conducted research with sports betters.
This is a very specific industry, and working with a company that doesn't understand the ins and outs can have a negative impact on the data.
The market research firm you partner with should know about the regulations and trends of the sports betting industry.
2. Research Methodologies and Capabilities
What kind of tools and techniques does the market research firm use?
Spend time looking into the different types of research methods your potential company can do. Do they specialize in both qualitative and quantitative research? Do they offer a variety of in-depth analysis techniques?
If the answer is "no," you may want to consider partnering with another firm. It's also a good idea to look into the team members (if possible) to see how experienced the researchers are.
3. Customized Research Approach
And while it's important that your research team in question is familiar with different methods, it's also key that they can tailor those methods to your needs.
What may have worked for one website or app, does not mean the same approach is going to work for your team. There should be no cookie-cutter approach to market research.
Additionally, a solid market research team will work with you closely and keep you updated throughout your project.
They'll also be able to grasp your main objectives, target audience, and overall business approach. Ensure your company can work with a variety of different businesses.
Pro tip! It's also not a bad idea to check out their online reviews to hear from their past clients and survey respondents.
4. Data Quality and Accuracy
Look into the different quality control processes the research firm has. We've said it before and we'll see it again: Data is useless if it's not high-quality or accurate. It only leads to poor decision-making, which defeats the purpose of conducting market research in the first place.
This is why it's essential to work with a firm that understands the importance of good data.
For example, Drive Research has strict quality control measures in place to ensure data accuracy. We are a company that cares about the level of data the client will receive because we know it directly impacts their bottom line.
5. Competitive Intelligence and Benchmarking
Does your company in question offer competitive assessments, as we touched on earlier?
No? It's best to start looking elsewhere.
In a field as competitive as sports betting, you'll want to ensure the company you partner with can give you direct insight into your rivals.
To reiterate, a company that conducts competitive analyses will offer the following:
- Competitor Net Promoter Scores
- Competitor marketing strategies
- Market positioning of competitor
6. Timeliness and Responsiveness
A reliable market research team will be just that.
Timeliness and responsiveness even during the proposal phase is an underrated, yet important quality to look for. If they are slow to respond when they are trying to win your business, how slow do you think they'll be after they've won it?
It's essential that your market research team is known for being supportive of clients. It's normal to have questions, and a good outsourced team will understand this.
In addition, a reliable team will ensure you understand each step of the process instead of diving right in. Again, if you notice a potential team doesn't want to bother answering your questions, keep looking!
💡 The Key Takeaway: Working with a third-party market research team is essential to the quality of the project. Spending time researching how research teams treat their data and clients will help narrow down the decisions.
Final Thoughts
With so many sports betting options out there, ensure your site stands out.
Market research offers a number of benefits to the betting industry.
Revealing key data around competing sites, consumer needs, and other relevant trends, a market research team will be able to help you get the feedback you need.
On top of that, it's worth it to spend time researching which team to partner with. After all, the quality of your team determines the quality of your data!
Contact Our Sports Betting Market Research Company
Drive Research is a full-service market research company located in New York. Our team has 80 years of combined experience in different research methods and will work with you to gather the best quality data for your betting company.
To learn more about our market research services, reach out to 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.
