If you have ever come up with a ground-breaking idea for a new product, you are probably familiar with the feeling of FOMR. Unlike the popular “FOMO,” FOMR is the Fear Of Market Research. It is the avoidance of conducting research to validate (or invalidate) that not only does a need exist for your idea, but also that the barriers to entry are not insurmountable. Taking such an approach when building out your product strategy means you are walking into the market blindfolded, which will certainly result in some rather unfortunate consequences that could otherwise have been avoided.
Sometimes it’s nice to know what’s behind a door before you open it.
Many tend to avoid this step simply because they are afraid of discovering that there isn’t as much demand for their product as they originally thought, or that the market is already saturated with similar solutions.
Additionally, the potential cost of conducting research (in both time and money) can seem unappetizing as well. if you are already convinced the product will be a success it can be hard to justify burning limited resources to tell yourself what you already know.
Despite the uncertainty, foregoing this crucial step is never a good idea. It’s easy to tell yourself that everything will probably work out just fine, or that you will simply learn and adjust as you go, but it is for this very reason that the road to market domination is littered with the carcasses of the ill-informed and unprepared
Watch your step…
One method to getting past this fear is to reframe it in your mind as a way to preemptively solve or avoid future problems. When done properly, market research will help you identify and understand your target users, differentiate your offering, fine-tune your original concept, and increase your product’s chances of user adoption.
What are the revenues for your category in your local market, regionally and nationally? One good resource for this is ibisWorld. If there’s little money to go around in the industry you are serving, you’d better make sure you can capture the majority of it.
Identify trends in your chosen industry. Many larger companies often demonstrate their expertise and thought leadership by releasing industry outlooks or annual reports and white papers. These can be a great resource for understanding where your field is heading and what pains are being experienced across the board.
Determine if the market is new and growing or static and mature. Has your industry been around forever and become a staple in people’s lives, like shoes or haircuts? Or is it emerging and exciting, like augmented reality or connected devices? Can you compete in a mature market saturated with competition, or stay at the cutting edge in a new market that could evolve overnight?
User and Customer Research
Determine who the users of your product are. Hint: the answer isn’t “everybody.” Your users and your customers may not actually be the same people and depending on your product, you may even have multiple types of users. You’ll need to understand them all if you want your product to succeed. Identify their age groups, ethnicity, geographic location, job titles, income levels, etc.
Conduct User Testing. Get out there and interview people who fit your user personas. Understand their pain points, what their goals they want to achieve, how do they want to interact with your product? A great way to get this information quickly and inexpensively is with the use of paper prototypes or other low-fidelity mockups of your concept that your test subjects can interact with prior to building a (more expensive) finished product.
Once you have determined who your users are, be sure you can answer the following questions:
Are there enough people who fit my criteria?
Will my target really benefit from my product/service? Will they see a need for it?
Do I understand what drives my target to make decisions?
Can they afford my product/service?
Can I reach them with my message? Are they easily accessible?
Know who your competition is. Hint: the answer isn’t “no one.” Just because you may be the only one doing exactly what you are doing, does not mean you don’t have competitors. Be thorough. Cranking out a google search on a few keywords and calling it a day is not enough. Dive into message boards, articles, and blogs (which tend to quote industry leaders that may be competing with you). Peruse top ten or top 100 lists of the best rated or reviewed providers in your industry.
Once you have built a comprehensive list of your competition, check out their websites to understand their offerings and differentiators. What makes their product special? How long have they been offering these products?
Who are their customers? Where and how are they marketing? What do their customers love/hate about them and their product? Check out their support forums to see if there is a feature their customers have been begging for that they have not developed yet. Simply put: Know. Thine. Enemy.
It’s this guy. Definitely this guy
The moral of the story is: don’t let FOMR get in the way of building a great product. Once you’ve done your homework, you’ll be able to make smart strategic decisions around the direction and development of your product. You may even discover that your original concept won’t do the trick, but with some tweaks and repositioning, it could solve another need you weren’t aware of. Launching a new product (or business is like wandering your way through hostile territory. There will be lots of hazards and pitfalls hiding around every corner, but if you’ve equipped yourself with the knowledge required to make the right decisions, you stand a much greater chance of making it through.
I’m sure you’ll be fine!
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