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If you’re entrepreneurial, you likely have plenty of product ideas you’d like to launch. Your concern isn’t how you should go about an idea, but rather which idea to pursue.
And if you’re entrepreneurial, you’re optimistic. You believe your idea has a great chance of success, and you’re ready to pour your time and resources into it.
However, odds are stacked against you. For example, only 3% of product launches of large CPG companies, who have meaningful resources, reach their goals.
As a small operation, how then can you build conviction in your product idea to make sure you’re investing your energy wisely? Here are some tips on how to understand if customers want your product.
1. Identify your audience
You might assume that there is a general market for your product. For example, if you’re starting a beer subscription company, you might think anyone 21 and up can be potential consumers of your product.
You need to go deeper, and specifically define your audience. For a beer product, are you targeting males or college students?
There are a number of demographic questions you need to consider understanding. What’s your target audience’s age, ethnicity, location, and income among other important questions?
Knowing this will allow you to understand who exactly you’re solving a problem for, and if they truly value your idea or not. Moreover, when it comes time to launch your product, you’ll know who to reach.
2. Hustle to find potential customers
You know you need to find out who your target audience is, but how do you go about finding them, especially if you’re launching a product from scratch or into a new market?
First, always tap into your network. Ask family and friends if they’re willing to answer questions. If they’re not the right people, as if they can make any referrals.
If you’re on a budget, try Reddit, Craigslist, or Instagram. On Reddit, join relevant groups whose members might be interested in your product. On Craigslist, post to classified sections to see who responds. On Instagram, pay attention to who is using particular hashtags or commenting on relevant products, and direct message them.
If you have money to spend, try SurveyMonkey or Facebook. They have targeting options that allow you to reach most audiences.
3. Survey potential customers
Once you start connecting with people, start surveying them to learn more about who your target customer might be.
Taking the beer subscription service example, use survey software like JotForm to ask questions about gender, drinking habits, and how free time is spent.
More importantly, ask about their level of interest in your product. Does it solve a problem for them or provide a material benefit? Would they spend money on a product like this?
You might find that interest in your product concept is lukewarm, or that urban dad’s on the East Coast really love your product concept. You can then determine if there is a market for your idea, and if the market opportunity is big enough to matter.
4. Build prototypes for additional insight
Asking questions can help paint a picture if your product idea is worthwhile. However, someone saying they’re interested in using a product is very different than actually using a product
Try creating a prototype or wireframes that can help make your product come to life. Use webinar software like Zoom to walk potential customers through product designs.
Take note of what is exactly useful to them or not. Are some features more beneficial than others? Will it solve their problem?
Look for queues on how excited they are about the product. Are they asking you when your product will be available? If a potential customer is willing to pre-order a product, it’s a great sign that your product can be successful.
Once you know how to walk people through wireframes or a prototype, including what questions to ask, you can scale these efforts by using a service like UserTesting. Not only can you walk potential customers through your product concept, you can target who you want to do this with.
5. Talk to existing customers
If you have an established business, take advantage of that. You already have customers coming to you. When they’re using one of your existing products or services, asking them questions about a new product can give you a strong sense on whether they would want it or not.
For example, if you offer grammar software, you can ask if there is a related need for plagiarism detection. Moreover, you’re able to reach customers at the moment where they could use your new product, giving you an authentic perspective on how useful your product idea is.
Consider user feedback tools to collect this information. With them, you can launch surveys in the browser asking questions about who people are, what their underlying issues are, and if your new product idea can help them.
You can also use tools that allow you to chat directly with customers. Empower your customer service agents to ask questions, giving them leeway to get insights on how you can help your customers with new products. Or allow them to push product surveys during customer interactions.
Read between the lines
While talking to potential customers can give you an idea on the validity of your product, it’s unlikely to be a clear signal. Oftentimes, people are kind and tell you what you want to hear. Learn to ask the right questions, especially when talking in person. If you get the idea that this is a product someone can’t live without, you’re on the right track.
