Up to 95% of new products fail in the market.
The #1 reason for this is not having enough customers.
“Nobody wants what you are selling!”
As the inventor, we believe we’ve got the best thing since sliced bread. But remember, we’re biased. After all, this is our baby, of course we think it’s beautiful.
The reality is:
My Customer Wants What!
Without taking the time to do the Market Research and validate the idea, we run the risk of putting a lot of time, effort, and money into something that isn’t going to sell.
I had an interview with a prospective client last summer. He had an idea for a new Laptop Security Device. During the discussion, I asked who the target market was. His response was “anyone with a Laptop.” When I asked about Market Research he said he hadn’t done any yet, but he knew everyone would need one.
Need doesn’t always translate into want. Even when we know we should do something, we often neglect to do it for any variety of reasons.
I convinced him to try out some simple Market Research and he agreed. Based on our discussion, it probably went something like this:
- How many people have Laptops?
- How many are concerned about having them stolen?
- How many are willing to spend money to address that concern?
- How much money are they willing to spend?
I’ve tried this very test at several network meetings and I almost never get to the last question before everyone has their hands down.
He must have taken my advise, because when I talked with him about three months later, he was onto something else.
One of the great things about the social media environment that exists today is you can carry out some basic Market Research with minimal time, effort, and cost. There are lots of free services available that let you create a survey form.
Most of us have a at least 100 connections that we can put this out to, and with a little cooperation from these first tier network contacts, we can potentially reach a few thousand people. If only 10% of these people respond, you can get a sampling of 100+.
Now this is in no way a comprehensive Market Research Survey; however, it is good enough to determine if your in the right ball park.
By spending just a little time and effort on Market Research you can greatly increase your chances at having a successful product. But you need to be willing to listen to your prospective customers. After all, their the ones that are going to be buying your idea, not you.
© 2014 Creator Consulting