In this episode we will be looking at Market Validation for Online Products and discussing the basic methods of doing market validation for a new product as a new digital entrepreneur.
Welcome to the seventh episode of the GrowthStart Insights podcast. In this episode we’ll be exploring how to test your product for a market to see if it’s actually viable. Let’s jump into it.
So the first thing that we’re going to do is we’re going to write down on a piece of paper why our product is great. Why it solves that specific problem for our ideal customer.
Where to start
Now you might want to start writing down all the features and benefits of that product, but keep in mind it has to be specifically features and benefits that are either better than the competitors or specifically solve that problem for the customer.
Focus on Solving a Problem
We have to focus on that problem that we solve. So writing down exactly what the problem is and then how this product solves it is the way to start. Next we are going to create a questionnaire for our ideal target market. Now you might not have access to that target market or know specifically who it is yet, but what we’re going to do is write down a couple of questions and then present that firstly to your friends and family and then to anybody else that you could find that is like-minded and could fall into that target market category.
Some of the questions that you’ll have to ask is whether these benefits would be better than the competitors product? Would this solve your problem? How much would you pay to solve that problem? And then I have one in the car, would you give me the money right now?
A lot of the time, that will really tell you whether that’s the right person that will buy your product. If it is indeed the person that really wants to take out the money and buy it, the next thing that you’ll have to do is get more detail about that person.
What specifically attracts them to the product? What specifically do they use the product for? And all the other demographics, age, location, all those things, as much as information as you can possibly gather about that specific person. Now the bigger your sample group is, the more data you will get and the more data you have that correlates, the better you’re going to be able to target that market.
Then we have that important question, will you actually buy it? Will you take out the money right now and if they say yes, the amount of people that say yes compared to the entire perspective in that target audience that you’ve interviewed, that’s going to tell you whether your product is actually viable. So once we’ve done all these questionnaires and we’ve actually established who our target market is and that our product is possibly viable, we will want to set up a minimal viable product to actually offer to some people.
When we get enough customers from that and there’s a potential amount of sales from that group of people that we’ve targeted, then we know that we’ve actually got a viable product in the market.
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