Step-by-Step: How to Conduct Sales Research That Drives Results

Table Of Contents

1. KEY TAKEAWAYS
2. Why Sales Research is Important
3. Step 1: Define Your Sales Research Objectives.
4. Step 2: Choose Your Sales Research Methods.
5. Step 3: Gather and Analyze Data.
6. Step 4: Understand Your Market and Competitors.
7. Step 5: Identify and Segment Your Target Audience.
8. Step 6: Leverage Sales Research for Customer Insights.
9. Step 7: Develop Sales Strategy Based on Your Sales Research Findings.
10. Step 8: Implement and Iterate Sales Research Process.
11. Measuring and Evaluating Sales Research Success

Let me tell you a secret: I used to be a terrible sales rep. Seriously. My sales research skills? Non-existent. I was the guy throwing spaghetti at the wall, hoping something would stick.

Back in the day, my idea of sales research was a quick Google search, maybe occasional LinkedIn, and a prayer. Spoiler alert: it didn't work!

Effective sales research is the backbone of any sales strategy. It's what separates the high performing sales teams from the newbies. And boy, did I learn that the hard way.

Even today, with so many AI sales research tools available, most sales pros are doing it wrong. They're wasting time, missing opportunities, and leaving money on the table.

In this sales research guide, I'm going to share sales research tips and tactics that I personally use.

KEY TAKEAWAYS

• Neglecting customer pain points. If you're not solving real problems, you're just noise in the market.
• Ignoring data-driven insights. Gut feelings are for first dates, not sales strategies.
• Failing to update ideal customer profiles. Your perfect customer from last year might be irrelevant today.
• Overlooking the competition. Knowing your enemy is half the battle won.
• Misaligning research with sales goals. If your research isn't driving revenue, it's just expensive busywork.
• Relying solely on internal data. You need both inside and outside perspectives to get the full picture.
• Neglecting post-sale research. The most valuable insights often can be found in your existing customer base.
• Misinterpreting correlation as causation. Just because two things happen together doesn't mean one caused the other.
• Focusing only on positive feedback. Negative feedback is where the real growth happens.
• Not leveraging AI tools like LavaReach for real-time insights. In today's fast-paced market, being a step behind can cost you big time.

Why Sales Research is Important

First things first: there are two main types of sales research - primary and secondary. Primary research is all about collecting fresh data straight from the source. Think surveys, interviews, and focus groups. Secondary research, on the other hand, is like being a detective. You're sifting through existing data, reports, and studies to uncover valuable insights.

Now, why should you care about sales research? Simple. It's your ticket to making informed decisions that actually move the needle. Without it, you're basically throwing spaghetti at the wall to see what sticks. Not exactly a winning sales strategy, right?

Solid sales research method helps you:

1. Understand your market inside and out.
2. Identify your ideal customers.
3. Craft messaging that hits home every single time.
4. Stay one step ahead of your competitors.

But here's the thing, effective sales research isn't just good for your bottom line. It's a major boost for sales organizations. Top sales managers and sales leaders know that when sales reps are equipped with solid research they can close deals faster and more consistently.

And for organizations? The benefits can be huge. Increased revenue, customer lifetime value, and improved customer service and satisfaction. One of our clients at LavaReach saw a 37% increase in conversion rates after implementing our AI-powered research tools.

Step 1: Define Your Sales Research Objectives.

You want to start with identifying your sales goals and key questions. You need to know what you're aiming for before you get going. Are you looking to boost your conversion rates? Expand into a new market? Or maybe you're trying to figure out why your current sales strategy is stalling. Get crystal clear on your goals.

Next, set clear, measurable objectives and sales targets. Don't just say "increase sales." Not very useful. Instead, aim for something like "increase sales by 25% in Q3."

When it comes to determining your scope, you need to zero in on your target audience, market, and competitors. Who are you selling to? What does the market landscape look like? And who's trying to eat your lunch? For example, you can narrow down your target audience from "all SMBs" to "tech-savvy e-commerce businesses with 50-200 employees."

Finally, establish a timeline and budget. Time is money, and in sales research, both are precious commodities. Be realistic about what you can achieve with the resources you have. Remember, a well-planned, focused research project beats a sprawling, unfocused one every time.

Here's how you can define your sales research objectives and scope:

1. Define 3-5 specific sales goals.
2. Create SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) objectives for each goal.
3. Identify your ideal customer profile.
4. List your top 5 competitors.
5. Set a realistic timeline and budget.

Trust me, nailing this step will save you countless headaches down the road. Get the foundation right, and everything else falls into place. Mess it up, and you're in for a world of pain.

Step 2: Choose Your Sales Research Methods.

Let's start with primary research techniques. You got a few:

• Surveys: Design short, focused questionnaires. Ask specific questions about pain points and needs. Use tools like SurveyMonkey for easy distribution and analysis.
• Interviews: Schedule one-on-one calls with key decision-makers. Prepare a list of open-ended questions. Listen more than you talk. Record the calls for later analysis.
• Focus groups: Gather 6-8 prospects in a room. Present your product or idea. Encourage open discussion. Watch for non-verbal cues.
• Observations: Visit your customers' offices. Watch how they work. Look for inefficiencies your product could solve. Take detailed notes on their processes and pain points.

Secondary research sources is where you become a data detective, piecing together clues from existing information. Industry reports are a great start, they can point you towards untapped opportunities. Market surveys are like listening in on your entire industry at once. And government statistics are the cold hard facts you can build your strategy on.

But you have to remember that not all data is created equal. You need to evaluate the quality and relevancy of your sources. It's kinda like dating - you wouldn't trust everything you read on someone's Tinder profile, would you?

I remember talking to prospect who was basing their entire sales strategy on a five-year-old industry report. Talk about outdated!

Here's how you can evaluate your data sources:

1. Check the publication date. Anything older than 18 months is ancient history in most industries.
2. Verify the source's credibility. Who's behind the data?
3. Look for methodology details. How was the data collected?
4. Consider sample size. Bigger is usually better.
5. Assess relevance to your specific market and goals.

Remember, choosing the right research methods is like picking the right tools for a job. Use a hammer when you need a screwdriver, and you're gonna have a bad time.

The goal here isn't to use every research method under the sun. It's about picking the ones that'll give you the insights you need to crush your sales goals.

Step 3: Gather and Analyze Data.

When it comes to collecting relevant information, you've got to be ruthless. If it doesn't directly relate to your objectives, it's out. No exceptions.

Using AI-powered tools like LavaReach makes data gathering a lot more efficient. I'm not just saying this because it's my company - AI is insanely powerful in sales research. We've seen our clients cut their research time by 75% while doubling the quality of insights. How's that for efficiency? One of our clients used our AI to analyze 10,000 customer interactions. Manually, that would've taken weeks.

But gathering data is only half the battle. You've got to analyze and interpret it too. This is where you gotta separate the signal from the noise.

Here's how you can do effective data analysis:

1. Look for patterns and trends. What's happening consistently?
2. Identify outliers. What's unusual and why?
3. Compare results to your initial hypotheses. Were you right or way off?
4. Contextualize your findings. How do they relate to your broader business goals?
5. Prioritize actionable insights. What can you actually use?

Remember, the goal of quantitative research isn't just to have a bunch of fancy charts and graphs. It's to uncover insights that'll drive your sales strategy forward. I once worked with a company that discovered their ideal customer wasn't who they thought it was, all because they actually dug into their data. They pivoted their sales research strategy and saw a 52% increase in conversions within two quarters.

Data without analysis is just a bunch of numbers.

Step 4: Understand Your Market and Competitors.

Analyzing market trends and competitor activity isn't just about keeping an eye on what's happening. It's about predicting where things are headed.

Your goal is to identify market gaps and opportunities. This is where you need to look for what's missing. What are customers complaining about? What needs aren't being met?

Don't just look at what competitors are doing. Look at what they're not doing. That's where the real competitive advantage and opportunities lie.

Assessing competitor strengths and weaknesses is next. This isn't about trash-talking your rivals. It's about understanding the competitive landscape so you can position yourself effectively. Know thy enemy, and all that jazz.

Here's how you can better understand your market and competitors:

1. List your top 5 competitors.
2. Identify their unique selling propositions.
3. Analyze their marketing strategies.
4. Check out their customer reviews (the good, the bad, and the ugly).
5. Explore their sales tactics from a customer's perspective.

Remember, the goal here isn't to copy your competitors. It's to understand the playing field so you can change the game. Be the Netflix in a world of Blockbusters.

Step 5: Identify and Segment Your Target Audience.

When we talk segmentation, it's basically your demographic, geographic, psychographic, and behavioral. Kinda like a dating profile for your ideal customer. Age, location, interests, buying habits, etc. At LavaReach, we once helped a client slice and dice their audience so precisely, their conversion rates jumped by 47%.

Buyer personas is where you bring your segments to life. Think of buyer personas as movie characters, except these characters are going to buy your product.

Here's how to identify and segment your target audience:

1. Give them a name and job title.
2. Describe their demographics and background.
3. Outline their goals and challenges.
4. List their preferred communication channels.
5. Identify their role in the buying process.

Remember, the goal here isn't to cast a wide net and hope for the best. It's about precision targeting. It's about talking to the right people, with the right message, at the right time.

Don't just segment your audience. Understand them. Create personas that feel like real people.

Step 6: Leverage Sales Research for Customer Insights.

So the next step is gathering insights on customer needs, preferences, and pain points. This isn't just about asking what they want. It's about uncovering what keeps them up at night. I've seen companies discover pain points their customers didn't even know they had! When you solve those, you're not just selling - you're providing real value.

Integrating sales research with marketing research is kinda like peanut butter and jelly - great on their own, but magic when combined. Your sales team is hearing directly from potential customers. Your marketing team has the big picture view. Bring them together, and you've got a 360-degree view of your customer.

I highly recommend having your sales and marketing teams meet regularly to share insights. I've seen this simple practice lead to significant increases in qualified leads.

But here's where it gets really exciting: using tools like LavaReach to uncover unique insights through AI-driven market research. AI can dig deep, finding patterns and connections sales reps might miss.

Here's what I mean by that:

1. LavaReach AI can analyze millions of data points in seconds.
2. It can identify trends before they become mainstream.
3. It can predict customer behavior with impressive accuracy.
4. It can uncover hidden correlations in your data.
5. It can provide actionable insights, not just raw data.

I've seen companies discover whole new customer segments they'd been overlooking by leveraging AI in their research. When they tailored their approach to these newfound segments, their revenue skyrocketed.

Your goal isn't just to collect data. It's to turn that data into insights, and those insights into action. It's about understanding your customers so well that you can anticipate their needs before they even know they have them.

Don't just research your customers - obsess over them. Use every tool at your disposal. Because in today's market, the company that understands its customers best, wins. Period.

Step 7: Develop Sales Strategy Based on Your Sales Research Findings.

Forget about creating fancy reports that gather dust in your Google Drive. Applying research findings to your sales strategy is about turning insights into action.

So how do you identify an effective sales tactics? Remember, a lead is just a start. You need to convert and retain too.

Here's some tips for nailing sales tactics:

1. Define your lead scoring criteria based on research.
2. Develop personalized outreach strategies for each segment.
3. Create a follow-up system that doesn't annoy prospects.
4. Implement a customer success program to boost retention.
5. Use data to continuously refine your approach.

Lastly, developing a sales process aligned with target audience needs. This is crucial. Your sales process should be a well-oiled machine, not a squeaky old contraption.

Your sales process should feel natural to your customers. It should address their needs, answer their questions, and guide them smoothly towards a purchase decision. If it feels forced or disconnected, you're doing it wrong.

The goal here isn't to create a one-size-fits-all sales tactics and strategies. It's about crafting a flexible, data-driven approach that adapts to your target audience.

Step 8: Implement and Iterate Sales Research Process.

Ongoing sales research isn't a nice-to-have. It's do-or-die. Markets change incredibly fast. Your competitors aren't standing still. Neither should you.

Keep your research efforts consistent. Set up a regular schedule for data collection and analysis. This could be weekly, monthly, or quarterly, depending on your industry's pace.

Don't let your hard-earned insights gather dust. Use them. Implement your findings into your sales strategies. But don't stop there. Monitor the results closely.

Did that new sales tactic work as expected? Are your sales professionals seeing improved performance? If not, why? These questions drive continuous improvement.

Update your research as new data comes in. Your initial findings aren't set in stone. They evolve. So should your strategies.

Here's how you and your team can implement and iterate sales research process:

1. Set weekly research check-ins. No excuses.
2. Use AI to automate data collection. Time is money, people.
3. Act fast on new insights. Hesitation is for amateurs.
4. Test and measure everything. Gut feelings are for first dates, not sales strategies.
5. Be ready to kill your darlings. If the data says it's not working, it's not working.

Remember, implementing and iterating isn't about perfectionism. It's about staying ahead of the curve. In this game, the fast eat the slow.

Measuring and Evaluating Sales Research Success

Measuring success is crucial. Without it, you're flying blind. Start by defining clear metrics. These are your signposts.

Sales performance is an obvious one. Track your conversion rates. Monitor your sales cycle length. Look at your average deal size. These numbers tell a story.

Customer satisfaction matters too. Happy customers buy more. They stick around longer. Use surveys to gauge satisfaction. Track your Net Promoter Score (NPS).

ROI is the bottom line. Calculate the return on your research investment. Compare the costs of your research efforts against the revenue gains. It should be positive.

Data is your friend. Embrace it. Use analytics tools to dig deep into your sales data. Look for patterns. Spot trends.

Track how your research-driven strategies impact sales processes and outcomes. Are your sales professionals closing more deals? Is your sales process more efficient?

Refine research approach based on feedback and results. Sales research isn't static. It's a living, breathing process. Your approach should evolve based on what you learn.

Listen to your sales team. They're on the front lines. Their feedback is extremely valuable. Are the insights useful? Do they need different information?

Pay attention to your results. If something's not working, change it. If a particular research method is yielding great insights, double down on it.

Here's how you can measure and evaluate sales research success:

1. Set clear, quantifiable goals. "Increase sales" is too vague. "Increase B2B software sales by 25% in Q3" - now that's a target.
2. Track customer satisfaction scores. Happy customers = repeat business.
3. Calculate your research ROI. If you're spending more on research than you're making in sales, you're doing it wrong.

Remember, the goal here isn't just to do research. It's to do research that drives real, measurable results. If your research isn't making you money, it's just expensive busywork.

Best Practices for Effective Sales Research

Market trends can carry you to success or leave you stranded. Stay on top of them!

Use tools that track industry trends in real-time. LavaReach does this automatically. It scans news sources, social media, and industry reports. You get instant updates on what's happening in your market.

Don't just follow trends. Anticipate them. Look for patterns in your data. What's changing? What's staying the same? Use these insights to predict where your market is heading.

Sales research isn't just for the sales team. It's valuable across your entire organization. Share your insights widely.

Your marketing team can use sales research to refine their strategies. They can create more targeted campaigns. They can speak directly to customer pain points.

Product teams benefit too. They can use sales insights to guide product development. What features do customers really want? What problems need solving?

Remember, numbers tell part of the story. But they're not the whole story. You need both quantitative and qualitative research data.

Quantitative data gives you the 'what'. How many deals closed? What's the average sale value? Use LavaReach to track these metrics automatically.

Qualitative data gives you the 'why'. Why did a customer choose your product? What made them hesitate? This comes from customer interviews, feedback forms, and sales call notes.

Here's some best practices for effective sales research:

1. Set up Google Alerts for your industry. It's free and it works.
2. Have weekly cross-team meetings. No silos allowed.
3. For every data point, get a customer story. Context is king.
4. Use AI tools to crunch the numbers, but use human insight to interpret them.
5. Never stop asking 'why'. The most valuable insights often hide behind that question.

Balance both types of data in your research. Quantitative data shows you trends. Qualitative data helps you understand those trends.

Biggest Challenges When Conducting Sales Research

Time is money. Resources are often tight. I get it. But you need to prioritize your research efforts. Focus on what matters most to your bottom line. Don't try to boil the ocean.

Automate where you can. Use sales research tools like LavaReach AI. It does the heavy lifting for you. It gathers data, analyzes trends, and delivers insights.

Use your time wisely. Don't waste hours on manual data entry. Let AI handle that. Spend your time on high-value activities like strategy and relationship-building.

Ensure data accuracy and relevance. Bad data leads to bad decisions. Garbage in, garbage out. It's that simple.

Verify your data sources. Are they reliable? Up-to-date? Cross-check information when possible.

Uses multiple verified data vendors if you can. Cross-reference information.

But don't just collect data. Analyze it. Look for inconsistencies. Question outliers. Use your industry knowledge to spot red flags.

The B2B landscape moves fast. What's true today might be old news tomorrow. So you need to stay up to date and stay agile. Be ready to pivot your research focus as conditions change.

Don't get stuck in your ways. Be open to new research methods. Try new AI tools. Experiment with different data sources.

Remember, challenges are opportunities in disguise. They push you to innovate. To find better ways of doing things. That's how progress happens.

Alright, let's dive into the exciting future of B2B sales research. As the co-founder of LavaReach, I've got my finger on the pulse of what's coming next.

Top 10 Biggest Sales Research Mistakes

Sales research can be a minefield. I've stepped on a few of those mines myself over the years. But you don't have to make the same mistakes I did.

Knowing what not to do is just as important as knowing what to do. These are the top 10 biggest sales research mistakes you need to avoid. Trust me, your future self will thank you for this!

1. Neglecting to define clear objectives. Don't start without a plan. Know what you're looking for. Set clear, measurable goals for your research.
2. Relying solely on secondary research. Primary research matters. Don't just rely on existing data. Get out there and gather your own insights.
3. Ignoring qualitative data. Numbers aren't everything. Don't overlook the power of qualitative insights. They provide context and depth.
4. Failing to segment your target audience. One size doesn't fit all. Segment your audience. Tailor your research to specific groups.
5. Overlooking competitor analysis. Know your competition. Don't focus solely on your own business. Understand what others in your space are doing.
6. Neglecting to update research regularly. Markets change fast. Don't let your research get stale. Update it regularly to stay current.
7. Misinterpreting data. Context is key. Don't jump to conclusions. Ensure you understand what the data is really telling you.
8. Failing to act on insights. Research is useless if you don't use it. Don't let valuable insights gather dust. Act on what you learn.
9. Overlooking emerging trends. Don't get caught off guard. Keep an eye on emerging trends. They could reshape your market overnight.
10. Relying on manual processes. Automation is your friend. Don't waste time on tedious manual tasks. Use tools like LavaReach to streamline your research process.

Conclusion

Effective sales research is not just about gathering data. It's about gaining a competitive edge.

Remember to define your objectives. Choose the right methods. Analyze your data thoroughly. Understand your market and competitors. Know your target audience inside out.

Don't forget to leverage your research for customer insights. Develop a winning strategy based on what you learn. Then implement and iterate. Always be measuring and evaluating your success.

The future of sales research is exciting. AI and machine learning are revolutionizing the field; making advanced sales research strategies accessible to everyone.

At LavaReach, we're at the forefront of this AI revolution. Our AI-powered platform automates tedious research tasks. It uncovers insights you might miss. It helps you stay ahead of market trends.

Want to see how AI can transform your sales research? Give LavaReach a try. We're here to help you unlock the full potential of your B2B sales efforts!

About Daniel Zhao

Daniel Zhao is a multiple time founder with years of first-hand experience in B2B sales and revenue leadership. He has a consistent track record of helping companies experiment and implement outbound in SaaS and other industries. Throughout his career, Daniel has set up numerous outbound motions for the first time for companies that previously had not found success with sales led customer acquisition.