How to Perform Market Research as a Small Business

Kit Merkley
Oct 23
2 min read

Why Market Research Matters (Even for Small Businesses)

When most small business owners hear “market research,” they picture massive reports, expensive consultants, and corporate jargon. Something only big companies do.

But here’s the reality: Market research is just a fancy way of saying, “Get to know your customers and competitors better.”

And in a place like Phoenix (where small businesses are the heartbeat of every neighborhood) market research isn’t optional. It’s how you stay relevant, competitive, and profitable.

The good news? You don’t need a giant budget or a data science degree. You just need curiosity, structure, and a few tools you already have.

Step 1: Start With Your Customers

Your best insights come from the people already buying from you (or the ones who almost did).

Ask simple, open-ended questions:

Why did you choose us instead of someone else?
What problem were you really trying to solve?
What almost kept you from saying yes?
Who else did you consider?

These conversations can happen over coffee, quick surveys, or even casual check-ins. Don’t overcomplicate it. The point is to listen for patterns.

Step 2: Check the Reviews - Yours and Theirs

Google and Yelp reviews are free focus groups.

What do customers praise about your business?
What do they complain about with your competitors?
What phrases or words keep showing up?

For example: if multiple people complain that a competitor “never calls back,” guess what? You just found a gap you can own.

Step 3: Spy (Nicely) on Your Competitors

You don’t need to hire a private investigator. A simple search can reveal a lot:

Their website and social media - what are they highlighting?
Their pricing (if listed) - are they positioned as high-end, budget, or somewhere in between?
Their marketing tone - are they casual and friendly, or professional and formal?

In Phoenix, even checking flyers, local ads, or community sponsorships can give you insight into how competitors reach your shared audience.

Step 4: Use Free or Low-Cost Tools

You don’t need expensive subscriptions to get started.

Google Trends - Shows what people in your area are searching for.
Facebook Audience Insights - Gives a snapshot of your target demographic.
SurveyMonkey or Google Forms - Easy ways to gather customer feedback.
Nextdoor & Local FB Groups - Goldmine for neighborhood chatter about what people want (and don’t want).

Step 5: Put It All Together

The goal isn’t to collect data for the sake of it. The goal is to act on it.

Ask yourself:

What did we learn that we didn’t know before?
What strengths should we double down on?
What weaknesses or gaps can we fix?
What opportunities are out there that our competitors are missing?

Even one or two insights can reshape how you position yourself in the market.

Final Thought: Market Research Doesn’t Have to Be Complicated

Big companies have departments dedicated to this. You have conversations, reviews, and local insights.

That’s enough to start.

Small businesses that listen better often sell better. Market research just gives you a framework to listen smarter.

What’s one way you’ve learned something surprising about your customers?

For further reading: The U.S. Small Business Administration has a fantastic guide on simple market research methods for small businesses. https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis