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The usefulness of market data in business has resulted in a greater demand for data analysis, a field that is projected to grow by 19% by 2026. Data analysts, who are in charge of analyzing trends to guide business decisions, can effectively interpret market data to help businesses plan operations effectively.
Hospitality businesses that engage in thorough market research will have the information they need to create more satisfying experiences for their future clientele. In this article, we’ll discuss why it’s important for businesses in the hospitality industry to conduct thorough market research.
Businesses cannot expect to secure loyal customers without understanding what these customers want.
In 1992, a poor understanding of market needs led to the initial failure of Disneyland Paris, which was Disney’s European theme park project. After assuming that a theme park in Europe would be as successful as their American projects, Disney forgot to take into account the cultural differences between America and Europe. It also failed to understand create an accurate profile of its targeted customers.
Disney’s American theme parks were successful because their fantasy-inspired designs stood out from what architecture looked like in the rest of the country. However, because Europe was already home to many historic landmarks, Disney’s faux castles failed to impress. In addition, the recession in Europe during the 90s left many of its citizens unable to shell out disposable income for theme parks. Because Disney didn’t take its ideal target market’s needs into account, Disneyland Paris remained unprofitable for many years.
It’s the same with any other hospitality business.
Understanding your customers’ needs, preferences, and culture will help you better understand how well your business will do, or how you can adjust your rates to make a profit.
When you understand your target market, you’ll understand which marketing channels can best reach them. If your business is a cruise line for seniors, for instance, you wouldn’t have much luck trying to promote your brand on platforms with young userbases, such as Instagram and TikTok.
Through market research, you’ll also understand what kind of content your audiences will respond to. Poor market research led to the failure of Pepsi’s 2017 video advert starring Kendall Jenner. The mid-2010s saw the rise of activist movements like Black Lives Matter. In response, Pepsi created a commercial that featured supermodel Kendall Jenner emerging from a crowd of demonstrators to hand over a can of Pepsi to a police officer. Add because Pepsi simply appropriated the imagery of these movements without meaningfully addressing the real issues its target audience cared about, the commercial received widespread public backlash.
Situations like the Pepsi controversy can be avoided with proper market research. By studying customer data, your business will better understand what kind of marketing content they’re looking for.
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Established businesses can also use market research to determine how their customers perceive them.
By gathering data on customer satisfaction and reviews, businesses can determine which aspects of their establishment need changing, and what they can do to improve their customers’ experiences. Businesses can gather this data by conducting customer satisfaction surveys or compiling online reviews.
Market research on customer satisfaction can also help you manage your reputation online. If you’re starting to see negative reviews, you can act on complaints before public perception worsens.
Market research is about assessing who your customers are, what they need, and what they’re saying. Once you’ve gathered this information, consult with experienced hospitality professionals to create an effective performance improvement plan.
Giselle Quinn is a freelance business writer who enjoys jigsaw puzzles, painting, and learning new languages.
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