How (Not) to do a Delusional Market Research

Can you bank upon online research for doing your primary market research at an early stage of starting up? The answer to this intriguing question is a big NO. In the very early stages, before even launching your product- you can’t rely on google searches or consulting firm reports on industry insights. If there’s a report about it already, you’re too late in starting up.

The ideal approach is to do direct interaction with potential customers to identify pain points, opportunities and other relevant information. Anything else that you read or hear could be superficial and of no use.

Talking to Potential Customers

When you approach potential customers for primary market research, remember that you’re seeking their help and not selling them anything. Let the unbiased ideas flow, never impose your bias on what you think is right and wrong or else you’ll never get to see the accurate research.

It’s best to either speak to your potential customers once you identify them or even better is to observe how they work. When you observe and talk to as many end-users as possible, you ideally get enlightened on how wrong you were in your initial estimations.

Here’re a few key things to get accurate information from potential end-users while researching:

1. Be curious to know more as much as you can.
2. Speak less, listen more.
3. Never advocate your opinions- be unbiased.
4. Don’t try to sell or you’ll see their changed behaviour.
5. Have the courage to ask questions anywhere- on a plane, train, in the office etc.
6. Do matchmaking of their actual problems with your proposed solution, get their real-time opinion.
7. Go with enough time and patience.

It’s okay if you don’t know the answers to their questions. They will probably also not have answers to your questions. Tell them that you’ll find those answers and do that.

Things to Identify in Your Primary Market Research

End-user/Economic Buyer: Both can be the same or different. For example, the child who plays your video game might not make a purchase himself but through his parents. So that child is your end-user and parent is the economic buyer. Identify both. The end-user is your “champion”- he will convince the economic buyer to make that purchase.

Application of your solution: Identify what exactly your solution will be used for and how a customer can apply it in his day-to-day life.

Benefits: What actual value or benefits will your solution bring to your end-user? Identify what it is- time savings/ cost savings/ profits/ entertainment and so on.

Influencer customers: They’re very valuable early adopters of your product who can influence the decision of other potential customers with their thought leadership. They chase the real value. If you can identify a few, they’ll help you get many other customers.

Market characteristics: Identify how conducive the market is for the adoption of your solution/ technology.

Potential partners: Which companies do you need to partner with for addressing your customer needs. For example, distributors, suppliers etc.

Real market size: How many customers actually exist if you have to capture 100% of the market?  

Competition: Who are the similar players building similar products from your customer’s perspective (not yours).

Complementary Solutions: That you can integrate your product with for providing a complete solution to address your client’s needs.

Bottomline

Never let lack of primary market research let you become yet another “me too” player which is not needed in the market. Put your diligent efforts to ensure that your PMR is done right before you decide to proceed further.