Episode 6 Demand Validation – Get the basics right.
Can be thought of as internal research or desk top research. Use sources that are available to you to start to refine your ideas.
Use the three questions you asked yourself in Episode 5 to begin your demand validation.
Objective is to confirm that your potential customers really have the problem you think they have, and they would be interested in your solution.
Avoid confirmation bias.
People searching for solutions often use Google. Find out what people are using Google for.
Use Google’s Keyword planner or Moz’s Keyword Planner to find out how many people search for specific words or phrases.
Make a list of the terms you think people will use when searching for a solution for the problem you are trying to solve.
It is to be hoped that many people are already searching for your solution. If not; then its back to the drawing board.
Identify potential competitors using the same key words. Analyse their value proposition. Can you do better? Can you see a gap in the market? Take FedEx’s classic USP:
“When it absolutely, positively has to be there overnight.” The boldness of its claim makes it memorable. FedEx is promising that they can deliver a parcel the next day; It’s tangible because FedEx has the network and infrastructure to get a package to its destination on time, and; It’s customer focussed. FedEx has found a unique part of its service that customers value.
Canva is an online design and publishing platform aimed at making it easy for anyone to create and share vector graphics. Its USP reflects this:
“Empowering the world to design”
It’s a nod to the simplicity of Canva’s tools. It also separates the platform from competitors like Adobe PhotoShop and Illustrator, and ProCreate, whose products are aimed towards experienced artists.
While rival tools offer more advanced editing features, they come with a steeper learning curve. Canva’s drag-and-drop shapes and elements let complete novices design a professional image, flyer, or document in minutes.
By understanding its place in the market, they’ve been able to unearth a competitive advantage. It’s a lesson in how to turn what could be seen as a weakness into a strength.
Online Conversations.
Join appropriate forums where your potential customers maybe found. Ask about their problems and current solutions related to your business idea. Are people suggesting work around solutions?
Consider the marketplace: Is the market growing or contracting? How quickly? How many potential customers are there? What barriers to entry exist? What is the intensity of the competition? Is there a threat of new entrants or an established player entering your market?
Tags: how to launch a product, launching your product, product launch plan, product launch, product launch formula, marketing strategy, IBGR,network, Jeremy Gray, Practical Solutions to Difficult Problems