Complete Guide to Conducting Healthcare Market Research

From rapid technological advancements to changing patient needs, the healthcare industry is in constant evolution. One of the ways healthcare providers manage to keep pace with new trends is by conducting thorough research of their target market, which helps them gain a deeper understanding of patients and their needs. 

However, the healthcare industry is heavily regulated, making research often a complex task. This guide aims to provide a structured framework to simplify this process, offering actionable steps for businesses of all sizes. 

Before Your Research Begins

Conducting successful market research relies on two factors that need to be set before you ever put pen to paper: setting a clear purpose and winning executive buy-in. If you want your research to be goal-oriented and actionable, you have to clearly define what you want to achieve; and doing so by involving key decision-makers will ensure that your hard work will lead to tangible improvements instead of ending up in a forgotten filing cabinet.

That said, if you are about to conduct a thorough healthcare market research, you will want to follow these general steps to help you along the process:

• Executive summary
• Research methodology
• Market overview
• Market segmentation
• Competitive analysis
• Consumer insights
• Technological trends
• Market opportunities
• Challenges and risks
• Forecast and future trends
• Conclusions 

Obviously, the steps above may vary depending on the specific topic of your research. For instance, a pharmaceutical company launching a new drug will go through a different research process than a healthcare provider seeking to improve patient satisfaction.

Step-by-step Healthcare Market Research Guide

1. Executive Summary

The executive summary is the cornerstone of your market research report. It provides a condensed overview of the entire document, highlighting key findings and recommendations. You want to keep it brief, as the name suggests, but you definitely want it to be comprehensive enough to give readers a clear understanding of the research’s purpose, scope, and implications.

Key components include:

• Objective: clearly state the purpose of the research. What problem are you trying to solve? What do you aim to achieve? For example: “To identify potential market gaps for a new telemedicine service targeting chronic disease management.” 
• Key Findings: summarize the most critical insights derived from the research, and quantify findings whenever possible to add credibility. For example, “Market research indicates a 25% increase in telehealth usage among patients aged 65 and older in the past year.”
• Recommendations: Make sure to provide clear and actionable suggestions based on your findings, and prioritize them based on their potential impact–but also ensure your recommendations align with the research objectives.

2. Research Methodology

The research methodology section outlines the specific approaches you used to gather and analyze data. A well-defined methodology serves to ultimately ensure the credibility and reliability of your research findings.

• Data Sources
  • Primary data is information collected directly from the source. This includes things like surveys, interviews, focus groups, observational studies, and experiments.
  • Secondary data is information gathered from existing sources. Things like industry reports, government statistics, databases, location intelligence solutions, and academic research.
• Research Methods
  • Qualitative research explores and understands underlying reasons, opinions, and motivations and is often conducted in the context of in-depth interviews, focus groups, case studies, and ethnography.
  • Quantitative research, on the other hand, involves collecting and analyzing numerical data that is usually gathered from surveys, experiments, observational studies with numerical data, and statistical analysis.
  • Mixed methods combine both qualitative and quantitative approaches to gain a comprehensive understanding.  Location intelligence software like Maptive can be helpful at this stage, depending on the subject and scope of your research.
• Sample Size and Demographics
  • Sample size is the number of participants or data points included in your research.
  • Demographics defines the characteristics of your target market (age, gender, location, income, etc.).
  • Selection criteria are the guidelines for choosing participants or data points–through this selection you can ensure the sample is representative of the target population.

3. Market Overview

The market overview section should provide a comprehensive understanding of the healthcare industry–or the specific sub-sector you want to highlight. It is meant to serve as the foundation for your insights and strategic decision-making.

• Industry Description
  • Define the healthcare industry and identify key sectors: delineate your segment of choice within the healthcare industry (e.g., pharmaceuticals, medical devices, healthcare IT, hospitals, clinics, etc.).
  • Analyze industry structure: describe competitors, including the number of players, market concentration, and distribution channels.
• Market Size
  • Estimate overall and segment market size: break down the healthcare market into smaller segments based on factors such as geography, product/service type, or customer demographics.
  • Utilize reliable data sources: use reputable industry reports, government statistics, and market research firms to obtain accurate data.
• Growth Trends
  • Analyze historical data: take a look at past market performance to identify growth patterns and trends.
  • Identify growth drivers: determine the factors contributing to market growth (e.g., population demographics, technological advancements, economic conditions).
  • Forecast future growth: at this point you’ll need to make some assumptions to make an educated guess and project market size and growth rates based on trends you’ve identified.
• Regulatory Environment
  • Summarize key regulations: outline the major laws and policies impacting the healthcare industry overall or your specific sector.
  • Assess regulatory impact: consider how regulations influence market dynamics, competition, and business operations.
  • Identify potential regulatory changes: monitor regulations for upcoming changes that may affect the market.

4. Market Segmentation

The market segmentation portion of your research involves dividing the broad market into smaller, distinct groups based on shared characteristics–a process that allows for a more targeted and effective marketing approach.

• Segmentation Criteria
  • Identify relevant variables: determine what factors differentiate your customer segments (e.g., demographics, geographic, psychographic, behavioral).
  • Create segmentation profiles: create detailed descriptions of each segment, including key characteristics and behaviors. 
• Segment Analysis
  • Evaluate segment size: determine the number of customers within each of the segments you’ve defined.
  • Assess segment growth potential: make an educated guess about the growth prospects of each segment based on market trends and industry forecasts.
  • Identify segment needs and preferences: why do the customers in each segment behave a certain way? What do they want or need?
  • Analyze segment profitability: estimate the potential profitability of each segment based on revenue and cost factors.

5. Competitive Analysis

Competitive analysis can be carried out using a number of well-established frameworks: a SWOT analysis will have you assessing the strengths, weaknesses, opportunities, and threats of your competitors; a PEST analysis considers the political, economic, social, and technological factors that may be affecting your industry; a Strategic Group Analysis lumps competitors into categories based on characteristics, market share, products, or services, and then plots those groups on a graph or chart.

Whichever framework you decide to use, a competitive analysis will help you understand your position in the market and identify potential areas for differentiation.

• Key Competitors
  • Identify primary competitors: who are the main players in your target market? Location intelligence tools like Maptive can be vital in uncovering competitor penetration in certain areas or their the geographic distribution nationwide.
  • Assess market share: estimate or research the market share of key competitors.
  • Profile competitor strengths: take an in-depth look at the core competencies and advantages of each competitor.
• Choose a Competitive Analysis Framework
  • Conduct an analysis for each competitor based on the system you’ve selected.
  • Identify competitive gaps: determine areas where competitors are lacking or where there are opportunities for differentiation.
  • Assess competitive intensity: evaluate the overall level of competition in the market.
• Competitive Strategies
  • Analyze competitor strategies: understand the strategic approaches of key competitors (e.g., cost leadership, differentiation, focus).
  • Identify competitive advantages: how are your competitors creating value for their customers?
  • Assess competitive response: how would your competitors react to changes in the market or your own strategies?

6. Consumer Insights

Understanding your target audience is key for developing effective marketing strategies. Consumer insights provide valuable information about patient needs, preferences, and behaviors.

• Patient Demographics
  • Identify key demographic segments: define the characteristics of your target population (age, gender, income, education, location, etc.). 
  • Analyze population trends: understand demographic shifts and their impact on the healthcare market.
  • Create patient profiles: create detailed profiles of different patient segments to tailor marketing efforts. Depending on the purposes of your research, this stage is when you might develop “personas.”
• Patient Behavior
  • Study patient journeys: map out the steps patients take when seeking healthcare services.
  • Analyze patient decision-making: understand the factors influencing your patients’ choices and preferences.
  • Identify patient touchpoints: determine the points of interaction between patients and your organization.
• Patient Needs and Preferences
  • Conduct needs assessments: are your patients getting everything they hoped for or do they have unmet needs?
  • Explore patient preferences: understand what patients value in healthcare services and products; often enough the quality of care and bedside manners of your providers play a huge role.
  • Analyze patient feedback: gather and analyze patient feedback to identify areas for improvement.

7. Technological Trends

Technology is changing healthcare at lightning speed, with new tools and discoveries popping up all the time. It’s important to keep an eye on these trends because they can uncover amazing opportunities or foretell challenges.

• Emerging Technologies
  • Identify key technologies: consider how new tech could disrupt the healthcare market (e.g., artificial intelligence, telemedicine, wearable devices, genomics).
  • Assess technology maturity: how far along are the development and adoption of each new tech?
  • Analyze technology impact: determine the potential impact of these technologies on healthcare delivery, patient care, and business models.
• Impact on Market
  • Evaluate technology adoption rates: how quickly are these new technologies being adopted by healthcare providers and consumers?
  • Identify market opportunities: explore new business models and revenue streams enabled by emerging technologies.
  • Assess the competition: how are competitors leveraging technology to gain a competitive advantage?
  • Anticipate challenges: identify potential obstacles to technology adoption and implementation.

8. Market Opportunities

Spotting opportunities is like finding gold in the healthcare market. Uncovering market opportunities is all about seeing what others might miss. 

• New Market Entrants: are there underserved populations or geographic areas that your business could tap into? Consider how you could be offering services or products that no one else is providing.
• Product/Service Innovations: can you improve existing offerings or create something completely new? Look for ways to solve unmet patient needs or enhance treatments.
• Partnerships and Collaborations: teaming up with other healthcare providers or technology companies can open doors to new markets and resources. Consider strategic alliances that complement your business.

9. Challenges and Risks

The healthcare industry is not without its hurdles. Understanding the challenges and risks can help you develop strategies to overcome them.

• Market Challenges: consider the obstacles that affect the entire industry. Think of things like rising costs, strict regulations, and intense competition.
• Risk Factors: what are the potential threats to your specific business? This could include anything from economic downturns, changes in consumer behavior, or cybersecurity breaches.

10. Forecast and Future Trends

Forecasting is not always an exact art, but it helps you anticipate what may lie ahead. By understanding future trends, you can position your business for growth.

• Market Projections: take into account everything you have researched so far to estimate future market size, growth rates, and market share.
• Identify key trends: analyze emerging trends that will shape the industry (e.g., value-based care, personalized medicine, digital health).
• Analyze potential disruptions: assess how disruptive technologies or market shifts could impact your business.
• Develop scenario planning: create different potential future scenarios to help you prepare for various outcomes.

11. Conclusions

The final step is to synthesize your findings and provide actionable recommendations. By doing so, you can effectively communicate the value of your market research and guide decision-making.

• Summarize key findings: condense the most important insights from your research.
• Highlight key implications: discuss the significance of the findings for the healthcare industry and your organization.
• Provide actionable recommendations: offer specific suggestions based on the research results.
• Identify next steps: outline potential areas for further research or analysis.

12. Appendices

Appendices usually provide supplementary information that supports the main body of the report. They contain the essential tools and resources that helped you build your conclusions, and they may be useful to others i your organization for reference or future research.

• Additional Data: include detailed data, calculations, or statistical analyses that are relevant but too extensive for the main text. This could include things like survey questionnaires, raw data tables, and detailed statistical outputs.
• Supporting Visuals: provide additional charts, graphs, or images that complement the information presented in the report. You can do that through detailed market share charts, geographic distribution maps, or product comparison tables.
• References: list all sources cited in the report, following a consistent citation style (e.g., APA, MLA, Chicago).

13. Leveraging Location Intelligence for Healthcare Market Research

Using location intelligence tools can greatly help your research by visualizing data that is otherwise tricky to understand and explain. Maptive in particular can be a powerful ally for analyzing geographic data in your healthcare market research as it can help you gain valuable insights into market trends, customer behavior, and competitive analysis.

You can use Maptive for many different aspects of your research:

• Gather Demographic Data: collect and map patient demographics to identify population trends and hotspots.
• Map Customer Locations: visualize customer distribution to understand market penetration and identify underserved areas.
• Overlay Demographic Data: combine demographic data with customer locations to identify correlations and opportunities.
• Analyze Demographic Patterns: use Maptive’s analysis tools to understand how demographics influence healthcare utilization.
• Identify Gaps in Healthcare Services: identify areas with limited access to healthcare services to optimize resource allocation.
• Conduct Spatial Analysis: analyze geographic patterns of disease prevalence, healthcare spending, and other relevant factors.
• Create Interactive Maps: develop visually appealing maps to communicate insights to stakeholders.

With Maptive you can enhance your market research capabilities and create impactful visualizations to make your findings stand out. Ready to unlock the power of geographic data? Start your free Maptive trial today and take your market research to the next level.

Brad Crisp

Brad Crisp is the CEO at Maptive.com, based in Denver, CO and born in San Francisco, CA. He has extensive experience in Business Mapping, GIS, Data Visualization, Mapping Data Analytics and all forms of software development. His career includes Software Development and Venture Capital dating back to 1998 at businesses like Maptive, GlobalMojo (now Giving Assistant), KPG Ventures, Loopnet, NextCard, and Banking.