Question

Why is it important for you to conduct research on your prospective customer before making contact? (at least 400 words and 2 references)

Answer 1

Prospective customers are the customers who have interest in buying a particular product or service and have sufficient income or financial back ground to buy the product. Monitoring or conducting research on these prospective customers is very important for an organization. Some of the reason for which the organization or the marketing executive should conduct research on the prospective customers before contacting them has been mentioned below.

The initiatives, interests, expectations, demands etc of the prospective customers can change depending on the changes that happens in the business environment. Hence, conducting a continuous research on the prospective customers can help the organization to identify their changing demands and expectations and can highlight the products or service accordingly. The prospective customers are the customers who can yield profit and revenue for the organization. It is essential for the organization to retain such customers. Research like online surveys would help the organization to identify such changing demands and trends. Only if their changing needs are identified and met with relevant for ducts they will remain as their prospective customers.

Once the interest of the customer for the product is lost, it can impact the competitiveness of the organization. Hence, the next factor which highlights the relevance of the research is the competition or the competitive advantage. If the organization fails to understand the changing needs of the potential customers, then the customers can go for some other organizations. This can result in the loss of competitive advantage of the organization. Hence, through conducting research on the prospective customers can help the marketers to speak about the relevant product which are required by them. This can impress the customers and they can remain loyal towards the organization.

The prospective customer of an organization can also be the prospective customer of its competitor’s. The competitors also may have approached them for selling their products or services. The research could reveal the response of the customer for the competitor’s product. This cans help the marketer to rebuild and redesign his marketing approach and to persuade the customer to buy the product.

Conducting research on the prospective customers can help the marketers to identify the decision makers of the prospective customers. This can help the marketer to formulate strategy through which they can convince the decision makers also.