The mobile web means that there are many opportunities for start-ups, from bootstrapped home-based ventures right through to those with venture capital funding. But where do you start to get the ideas to build that first app? According to Steve Blank, you get out of the building. It’s only by meeting with and understanding potential customer’s needs that you can develop a product that people want to buy. Show
Steve Blank is a serial entrepreneur who arrived in Silicon Valley in the 1970s and has built two highly successful businesses, launched two movements in customer care and entrepreneurialism and written four books. He’s the go to guy when it comes to learning how to launch a new business and giving it the best foundations for future success. The mobile web has led to an exponential increase in start-up activity. Apps are, often, cheap to develop and easy to launch. You don’t need a huge team of programmers and designers. You don’t even need to be able to do the programming or design work yourself – it can be outsourced efficiently to other parts of the world. Entrepreneurialism has never been so simple to get started with. Steve Blank’s advice to “get out of the building”, however, is even more pertinent in this environment. When the barrier to entry is low; competition is very high. There are more than 700 apps released every single day of the year and if you want to rise above the pack – you need to develop a product that will sell. What is “Get out of the Building” About?Author/Copyright holder: steve blank. Copyright terms and licence:Fair Use. Steve says that too many start-ups focus their efforts in the wrong place. They look at selling products that they’ve thought of to a market that they believe exists. This isn’t a recipe for success it involves too much assumption. And if you assume – you make an ass out of U and me… which may be a touch trite but it’s not all that far off the mark either. A better approach is not to get involved in sales or design at the beginning but rather to get involved with customer research. That means “getting out of the building” (which can be either literal or metaphorical) and meeting potential customers and learning to understand what problems they are looking to solve in their lives. When you understand their problems, you can design solutions to those problems that are meaningful and cost-effective. This, in turn, increases the chance that when your products (apps) are ready to launch that people will want them. Customer ResearchYou may be thinking “but I don’t know any of my potential customers” but fortunately that’s not the end of the world. We can find our potential customers on LinkedIn, on their company websites, through our personal networks, etc. The joy of an always connected world is not just that there’s opportunity for app developers but also that there’s opportunity to connect quickly, easily and cheaply with nearly anyone we want to. Steve indicates that it’s best not to go looking to talk to CEOs and C-suite execs but rather to find the users who will drive the need for our products. It’s mid-level managers and those at the coalface doing the work who will best understand wide-scale issues and need solutions for them. Author/Copyright holder: Shimer College. Copyright terms and licence: CC BY-SA 2.0 A Simple Approach to Customer ResearchGetting out of the building doesn’t mean heading out to talk to customers with just a vague intention to chat. You need to have a methodology in mind. Here’s a simple one that can help as suggested by Google Ventures: 1. Plan Your QuestionsBefore you start making appointments, decide on what you want to know. Put together a list of questions that can help focus on assumptions you’ve made. But don’t be afraid to let the interviewee take you off-piste; you can find that the most important problems aren’t discovered through your questions but rather through information that the potential-customer volunteers. 2. Plan Who To Talk ToWho would be the best positioned people to answer your questions? Are they representative of the target market you have in mind for your product? It’s always best to be clear about this from the start, so that you can meet with people who may (at some stage) buy the finished product. Otherwise their input is not likely to be high-value. 3. Plan the InterviewYou’ve got the questions, you’ve got the people – the next element is to structure your interviews. Where will they be held? Which order will you ask questions in? How will you record and analyse the data you generate? Having this in mind can ensure that your research reveals the best results. 4. Don’t Be Afraid to Share PrototypesYou may not be all the way there but if you have a bit of a prototype – hand it to the interviewee; get their opinion. The folks at Google say that even using a competitor’s product or website to glean feedback can be very useful. The more reality you can put into a product – the clearer that feedback should be. Author/Copyright holder: Rosenfeld Media. Copyright terms and licence: CC BY 2.0 5. Don’t Sell, ListenYou’re not selling the product. You’re trying to find out what people want so you can build a product. Don’t pitch it, get feedback and listen. Don’t use leading questions to get the answers you want to hear – leave things open and get real opinions. You may not always like what people tell you but it will leave your design process much better informed. 6. Play Back to The ParticipantOnce you get to the end of an interview, summarize your understanding to the participant of what they’ve said – let them correct you if you’re wrong. It never hurts to be 100% confident that you’ve understood what’s been said. 7. Summarize Your FindingsFinally, work through all the data from interviews – what have you learned? What trends emerge from this? What can you use in your product? By getting out of the building and conducting high quality customer research; you can develop better products for your start-up. Your app will have a greater chance of standing out from the crowd and making you money and your customers happy. The Take AwayGetting out of the building is all about doing customer research. The better you know your customers and understand their real problems; the more likely you are to produce a product that meets a need and gets used. The mobile web makes it very easy to be an entrepreneur but if you want to make that turn into success – you have to get out of the building and talk to your customers. ReferencesSee Steve Blank talk about “Get out of the building” as a strategy. Google Ventures offer tips on how to make getting out of the building even more effective. Learn all about Steve Blank and his achievements. Hero Image: Author/Copyright holder: Michael Gaida. Copyright terms and licence: Public Domain.
Would you like to know why, how, and when to apply market research? Do you want to discover why your consumers are not buying your products? Are you interested in launching a new product, service, or even a new marketing campaign, but you’re not sure what your consumers want? To answer the questions above, you’ll need help from your consumers. But how will you collect that data? In this case and in many other situations in your business, market research is the way to get all the answers you need. In this ultimate guide about market research, you’ll find the definition, advantages, types of market research, and some examples that will help you understand this type of research. Don’t forget to download the free ebook available at the end of this guide! What is Market Research?Market research is defined as the process of evaluating the feasibility of a new product or service, through research conducted directly with potential consumers. This method allows organizations or businesses to discover their target market, collect and document opinions and make informed decisions. Market research can be conducted directly by organizations or companies or can be outsourced to agencies that have expertise in this process. The process of market research can be done through deploying surveys, interacting with a group of people also known as a sample, conducting interviews, and other similar processes. The primary purpose of conducting market research is to understand or examine the market associated with a particular product or service, to decide how the audience will react to a product or service. The information obtained from conducting market research can be used to tailor marketing/ advertising activities or to determine what are the feature priorities/service requirement (if any) of consumers. Three key objectives of market researchA market research project may usually have 3 different types of objectives.
Why is market research important?Conducting research is one of the best ways of achieving customer satisfaction, reducing customer churn and elevating business. Here are the reasons why market research is important and should be considered in any business:
Types of Market Research: Market Research Methods and ExamplesWhether an organization or business wishes to know the purchase behavior of consumers or the likelihood of consumers paying a certain cost for a product, market research helps in drawing meaningful conclusions. Depending on the methods and tools required, the following are the types: 1. Primary Market Research (A combination of both Qualitative and Quantitative Research):Primary market research is a process where organizations or businesses get in touch with the end consumers or employ a third party to carry out relevant studies to collect data. The data collected can be qualitative data (non-numerical data) or quantitative data (numerical or statistical data).While conducting primary market research, one can gather two types of information: Exploratory and Specific. Exploratory research is open-ended, where a problem is explored by asking open ended questions in a detailed interview format usually with a small group of people, also known as a sample. Here the sample size is restricted to 6-10 members. Specific research, on the other hand, is more pinpointed and is used to solve the problems that are identified by exploratory research. As mentioned earlier, primary market research is a combination of qualitative market research and quantitative market research. Qualitative market research study involves semi-structured or unstructured data collected through some of the commonly used qualitative research methods like: Focus group is one of the commonly used qualitative research methods. Focus group is a small group of people (6-10) who typically respond to online surveys sent to them. The best part about focus group is the information can be collected remotely, can be done without personally interacting with the group members. However, this is a more expensive method as it is used to collect complex information. As the name suggests this method involves personal interaction in the form of an interview, where the researcher asks a series of questions to collect information or data from the respondents. The questions are mostly open ended questions and asked in a way to facilitate responses. This method is heavily dependent on the ability and experience of the interviewer to ask questions that evoke responses. This type of in-depth research is conducted in the natural settings of the respondents. This method requires the interviewer to adapt himself/herself to the natural environment of the respondents which could be a city or a remote village. Geographical constraints can be a hindering factor in conducting this kind of research. Ethnographic research can last from a few days to a few years. Learn More: Qualitative Research Methods Organizations use qualitative research methods to conduct structured market research by using online surveys, questionnaires, and polls to gain statistical insights to make informed decisions. This method was once conducted using pen and paper. This has now evolved to sending structured online surveys to the respondents to gain actionable insights. Researchers use modern and technology-oriented survey platforms to structure and design their survey to evoke maximum responses from respondents. Through a well-structured mechanism, data is easily collected and reported, and necessary action can be taken with all the information made available firsthand. Learn more: How to conduct quantitative research Secondary research uses information that is organized by outside sources like government agencies, media, chambers of commerce etc. This information is published in newspapers, magazines, books, company websites, free government and nongovernment agencies and so on. The secondary source makes use of the following:
Learn more: Market Research Example with Types and Methods Steps for conducting Market ResearchKnowing what to do in various situations that arise during the investigation will save the researcher time and reduce problems. Today’s successful enterprises use powerful market research survey software that helps them conduct comprehensive research under a unified platform, providing actionable insights much faster with fewer problems. Following are the steps to conduct effective market research. Step #1: Define the ProblemHaving a well-defined subject of research will help researchers when they ask questions. These questions should be directed to solve problems and must be adapted to the project. Make sure the questions are written clearly and that the respondents understand them. Researchers can conduct a test with a small group to know if the questions are going to know whether the asked questions are understandable and if they will be enough to gain insightful results. Research objectives should be written in a precise way and should include a brief description of the information that is needed and the way in which it will obtain it. They should have an answer to this question “why are we doing the research?” Learn more: Interview Questions Step #2: Define the SampleTo carry out market research, researchers need a representative sample that can be collected using one of the many sampling techniques. A representative sample is a small number of people that reflect, as accurately as possible, a larger group.
There are two ways to obtain a representative sample:
When a sample is not representative, there can be a margin of error. If researchers want to have a representative sample of 100 employees, they should choose a similar number of men and women. Step #3: Carry out data collectionFirst, a data collection instrument should be developed. The fact that they do not answer a survey, or answer it incompletely will cause errors in research. The correct collection of data will prevent this. Step #4: Analyze the resultsEach of the points of the market research process is linked to one another. If all the above is executed well, but there is no accurate analysis of the results, then the decisions made consequently will not be appropriate. In-depth analysis conducted without leaving loose ends will be effective in gaining solutions. Data analysis will be captured in a report, which should also be written clearly so that effective decisions can be made on that basis. Analyze and interpret the results is to look for a wider meaning to the obtained data. All the previous phases have been developed to arrive at this moment. Learn more: Types of Interviews Step #5: Make the Research ReportWhen presenting the results, researchers should focus on: what do they want to achieve using this research report and while answering this question they should not assume that the structure of the survey is the best way to do the analysis. One of the big mistakes that many researchers make is that they present the reports in the same order of their questions and do not see the potential of storytelling. To make good reports, the best analysts give the following advice: follow the inverted pyramid style to present the results, answering at the beginning the essential questions of the business that caused the investigation. Start with the conclusions and give them fundamentals, instead of accumulating evidence. After this researchers can provide details to the readers who have the time and interest. Step #6: Make DecisionsAn organization or a researcher should never ask “why do market research”, they should just do it! Take decisions! Act and implement. Learn more: Quantitative Research Benefits of an Efficient Market Research
5 Market Research Tips for BusinessesThe following tips will help businesses with creating a better market research strategy. Tip #1: Define the objective of your research.Before starting your research quest, think about what you’re trying to achieve next with your business. Are you looking to increase traffic to your location? Or increase sales? Or convert customers from one-time purchasers to regulars? Figuring out your objective will help you tailor the rest of your research and your future marketing materials. Having an objective for your research will flesh out what kind of data you need to collect. Tip #2: Learn About Your Target Customers.The most important thing to remember is that your business serves a specific kind of customer. Defining your specific customer has many advantages like allowing you to understand what kind of language to use when crafting your marketing materials, and how to approach building relationships with your customer. When you take time to define your target customer you can also find the best products and services to sell to them. You want to know as much as you can about your target customer. You can gather this information through observation and by researching the kind of customers who frequent your type of business. For starters, helpful things to know are their age and income. What do they do for a living? What’s their marital status and education level? Learn more: Customer Satisfaction Tip #3: Recognize that knowing who you serve helps you define who you do not.Let’s take a classic example from copywriting genius Dan Kennedy. He says that if you’re opening up a fine dining steakhouse focused on decadent food, you know right off the bat that you’re not looking to attract vegetarians or dieters. Armed with this information, you can create better marketing messages that speak to your target customers. It’s okay to decide who is not a part of your target customer base. In fact, for small businesses knowing who you don’t cater to can be essential in helping you grow. Why? Simple, if you’re small your advantage is that you can connect deeply with a specific segment of the market. You want to focus your efforts on the right customer who already is compelled to spend money on your offer. If you’re spreading yourself thin by trying to be all things to everyone, you will only dilute your core message. Instead, keep your focus on your target customer. Define them, go deep, and you’ll be able to figure out how you can best serve them with your products and services. Tip #4: Learn from your competition.This works for brick-and-mortar businesses as well as internet businesses because it allows you to step into the shoes of your customer and open up to a new perspective of your business. Take a look around the internet and around your town. If you can, visit your competitor’s shops. For example, if you own a restaurant specializing in Italian cuisine, dine at the other Italian place in your neighborhood or in the next township. As you experience the business from the customer’s perspective, look for what’s being done right and wrong. Can you see areas that need attention or improvement? How are you running things in comparison? What’s the quality of their product and customer service? Are the customers here pleased? Also, take a close look at their market segment. Who else is patronizing their business? Are they the same kinds of people who spend money with you? By asking these questions and doing in-person research, you can dig up a lot of information to help you define your unique selling position and create even better offers for your customers. Tip #5: Get your target customers to open up and tell you everything.A good customer survey is one of the most valuable market research tools because it gives you the opportunity to get inside your customer’s head. However, remember that some feedback may be harsh, so take criticism as a learning tool to point you in the right direction. Creating a survey is simple. Ask questions about what your customer thinks you’re doing right and what can be improved. You can also prompt them to tell you what kinds of products and services they’d like to see you add, giving you fantastic insight into how to monetize your business more. Many customers will be delighted to offer feedback. You can even give customers who fill out surveys a gift like a special coupon for their next purchase. Bonus Tip: Use an insight & research repositoryAn insight & research repository is a consolidated research management platform to derive insights about past and ongoing market research. With the use of such a tool, you can leverage past research to get to insights faster, build on previously done market research and draw trendlines, utilize research techniques that have worked in the past, and more. Why Does Every Business Need Market Research?Market research is one of the most effective ways to gain insight into your customer base, competitors, and the overall market. The goal of conducting market research is to equip your company with the information you need to make informed decisions. It is especially important when small businesses are trying to determine whether a new business idea is viable, looking to move into a new market, or are launching a new product or service. Read below for a more in-depth look at how market research can help small businesses.
Learn more: Trend Analysis
Learn more: Customer Satisfaction Survey
Learn more: SWOT Analysis
Learn more: 300+ Market Research Survey Questionnaires Free Market Research eBookMarket research may be as complex as the needs that each business or project has. The steps are usually the same. We hope this ultimate guide helps you have a better understanding of how to make your own market research project to gather insightful data and make better decisions. We appreciate you taking the time to read this ultimate guide. We hope it was helpful! You can now download our free ebook that will guide you through a market research project, from the planning stage to the presentation of the outcomes and their analysis. Sign up now, and download our free ebook: The Hacker’s Guide to Advanced Research Methodologies DOWNLOAD NOW |