Who are your Customers?
One of the first steps of a successful product launch is determining whether there is genuine interest for the product. This process is incredibly important, as it determines how efficiently all your resources will be used. To get it right you need to answer these 7 questions for validating your customer problem.
1) Who are your customers?
Firstly, you need to know who your target audience is. Do your best to describe them in terms of age, occupation, income, interests, education, lifestyle, hobbies, likes and other aspects of their personality that are relevant to your product.
2) What do they buy now?
Next, you determine their buying habits relating to your product and your competitor products. Your research should be thorough and should include how much they buy, their favourite suppliers, the most popular features and the predominant price points.
3) Why do they buy?
Figuring this part out can be tricky, because the answers you get will depend on the product and its uses. Think about the jobs your customers need to complete, the pains they experience trying to complete the task, as well as the gains they desire to achieve.
4) Is there a need in your market that your company can fill?
Researching the priorities and spending habits of your customers can help you determine whether your idea is worth pursuing at all, after all you want to make a profit right? Trying to break into an overly saturated market can lead to failure (or a massive struggle) if you don’t know what you’re doing, whereas finding a gap between the audience’s interest and the market’s offering can be a great way to success!
5) Are customers willing to pay?
Establishing interest isn’t enough, before you dive into your product development, you need to be sure that your target audience is willing to pay for the product. You can gauge this sort of information through things like letters of intent, survey results, pilot purchases and similar sources. The proof is in the pudding as they day!
6) Are your products and services meeting the needs of your customers?
Another thing you need to research in depth is whether your offering adequately address the needs and expectations of your customer base. You can use tools like the Net Promoter Score to help you understand your customer’s’ level of satisfaction. If they don't give you an 8, 9 or 10 out of 10 for a recommendation to a friend, you need to go back to the drawing board.
7) Are you pricing your products and services effectively?
Pricing is one of the main points customers base their purchasing decisions on, so it’s important you do your homework on the subject. Researching your competition’s practices and wide-scale market trends can help ensure you’re making as much money as possible without hurting your business. Don't be too concerned about this step if you're just starting out, price elasticity will come if your product/service is great and your brand is strong.
