Have you had an idea for an innovation that you think is going to revolutionise your customer's life? Before you start spending time and money developing this new idea, it is critical to consider the market need for this innovation, or whether you have solved a problem that doesn’t exist. You need to conduct market research
. As with every stage of product development, conducting market research is challenging, and there are mistakes that even experienced innovators can make.
1. Underestimating the value of primary research
Market research can be split into two categories; Primary research and Secondary research. Secondary research is a research method that utilizes data that someone else has collected, whereas primary research involves collecting the data yourself. Secondary research can offer valuable insights about the general market environment, but only primary research can find information about your customer's appetite and can give you guaranteed accurate, up-to-date data.
2.Not defining your outcomes (or defining them too much!)
Before conducting market research, it is necessary to have a clear idea of what you are hoping to get out of the project. However, you should also be prepared to adapt your project outcomes based on the feedback from the research subjects. For example, a pricing-focused project may result in interviewees discussing the technical innovations that they would pay more for. This requires carefully wording open-ended questions that allow the customer to elaborate on what they think is important.
3. Poor data analysis
One of the most challenging aspects of market research, and especially primary research interviews, is what to do with your data after it has been collected. Analysing hours of qualitative information can be daunting, as well as comparing data between multiple interviews. We would recommend that you attempt to break down qualitative data into more qualitative information to make it easier to analyse.
4. Introduction of biases
When conducting research it is important to remember that your customer is always right, and adding your own biases into your research will give less valuable data. Therefore, it is crucial to always listen carefully to the customer and discuss their thoughts with them. Of course, there is room for you to make suggestions as well, although every attempt should be made to suggest these ideas with as little personal opinion expressed as possible.
5. Not doing it
Without researching what customers want and relying on previous assumptions, you may miss the chance to discover what your customers will want in the future. Therefore, conducting market research is critical to ensure that you can align your product or service to meet your customers’ requirements.
If you would like to hear more about how Fulcrum Direct could help you with your market research then please email me at firstname.lastname@example.org