Before launching a brick and mortar small business, you need to gather insights on:

• Addressable Market: Who are your potential customers, and how many are there?
• Product Fit: Does your product or service actually solve a problem or fulfill a need?
• Market Demand: Is there enough interest to sustain your small business long-term?
• Competition: Who else is offering similar products, and how can you differentiate?

CliquePrize® developed Video Contests to answer these very questions. With the right market research at a low cost, you can learn the answers to these questions and more.

Video Contests: A Cost-Effective Way to Crowdsource Market Insights

Videos are one of the best and most cost-effective ways to crowdsource ideas and customer feedback. With CliquePrize®, small business owners can launch User-Generated Content (UGC) Video Contests or Hybrid Video Contests to gain insights into Contestant preferences, pricing, service expectations, and even location viability.

How Video Contests Provide Valuable Market Research

1. Marketing & Branding Ideas: Contestants create and upload videos to YouTube in order to showcase how they perceive your business or idea, providing real insights into messaging that resonates.
2. Pricing Strategies: Contestants can express what they’re willing to pay for your products or services; this can also be accomplished through Surveys
3. Service & Product Improvement: Learn what Contestants (i.e your customers) love and what they think needs improvement about your small business
4. Customer Reviews: If your small business is already operating, Video Contests can collect authentic customer testimonials that build trust with future prospects

Understanding Contest Formats: Most Popular vs. Highest Rated Videos

CliquePrize® offers two types of video contests, each yielding different types of learning:

• Most Popular Video Contest: Contestants vote for their favorite video, revealing which concept is most appealing to the largest number of people.
• Highest Rated Video Contest: Contestants rate videos on a scale of 1 to 5 stars, helping to rank ideas from best to worst based on quality and effectiveness; each video must have its own unique rating and the winner is determined by the highest average

The Highest Rated Video Contest provides the most structured learning since it results in an ordered list of ideas, allowing small businesses to see what resonates the most and what needs improvement.

During the Video Submission phase, up to 50 Contestants can upload a video to YouTube and submit the URL into CliquePrize® for evaluation during the Voting Phase. As the Sponsor, your job is then to dwindle the list down to no fewer than 2 and no more than 5 Video Finalists for the Voting Phase.

Cost Comparison: Traditional Market Research vs. Video Contests

Traditional market research methods, such as focus groups, can cost thousands of dollars. Here’s a breakdown of costs:

• Focus Groups: $5,000 - $10,000 per session
• Professional Market Research Reports: $10,000 - $50,000+
• Customer Surveys & Polls: $500 - $5,000

In contrast, a CliquePrize® Video Contest costs only $29 for first-time Sponsors, making it an affordable and scalable solution to obtain similar market insights at a fraction of the price.

The Value of Ranked Feedback from Video Contests

One of the most powerful insights from video contests is the ability to generate a ranked list of marketing concepts, small business ideas, or customer preferences. By analyzing the highest-rated videos, small businesses can determine:

• The most effective messaging and branding concepts
• The best pricing strategies according to customer willingness to pay
• Common themes in customer preferences or needs
• Which location or service models have the most demand

This ranking system helps small businesses make data-driven decisions, reducing the risk of costly mistakes.

How Upfront Market Research Saves Money and Builds Competitive Advantage

Conducting market research before launching a brick and mortar small business helps avoid unnecessary costs and gives entrepreneurs a strategic edge. Here’s how:

Cost Savings

• Avoiding Bad Locations: Market research ensures you select a high-traffic location with the right demographics, preventing financial losses from poor sales
• Preventing Overstock or Understock Issues: Understanding demand helps optimize inventory levels, minimizing waste and storage costs
• Minimizing Marketing Expenses: Researching customer preferences ensures advertising efforts are targeted and effective
• Right Pricing Strategy: Setting competitive yet profitable prices based on data prevents overpricing or underpricing
• Efficient Staffing: Analyzing peak business hours allows for better employee scheduling, reducing unnecessary labor costs

Advantages

• Better Product-Market Fit: Ensures your products or services align with customer needs, increasing the likelihood of success
• Stronger Competitive Positioning: Knowing your competitors’ strengths and weaknesses allows you to differentiate and create unique value
• Higher Customer Retention: Addressing customer pain points from the start leads to better service, satisfaction, and repeat business
• Investor & Loan Approval: A well-researched business plan with market data increases credibility and improves funding opportunities
• Faster Break-Even Point: Avoiding costly mistakes and targeting the right market allows for quicker profitability

Assumptions Year 1:

• Total Revenue: $250,000
• Total Expenses & Upfront Investment: $200,000
• Net Profit: $50,000

Breakdown of Expenses & Investment:

• Lease/Rent & Utilities: $50,000 (25%)
• Inventory & Supplies: $40,000 (20%)
• Marketing & Advertising: $20,000 (10%)
• Salaries & Wages: $60,000 (30%)
• Equipment & Furnishings: $30,000 (15%)

Market research is a small investment that can prevent expensive mistakes and significantly increase the chances of long-term success. CliquePrize® Video Contests offer an affordable, engaging, and data-driven way for small businesses to conduct research and gain insights that drive growth. With CliquePrize®, a brick and mortar small business owner can increase revenues, low customer acquisition costs and reduce marketing expense significantly.

🚀 Ready to take your marketing to the next level? Download the CliquePrize® app and create a FREE Sponsor Account today!

CliquePrize®*** is the iPhone Giveaways mobile app that helps Small Businesses grow by reaching, nurturing and converting local, high value prospects. If you have any questions or feedback, please let us know!***