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Market research for startups: understand your customers and reduce your risks

Market research for startups: understand customers and reduce risks

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Slides for the seminar on market research for startups and small businesses. Outline of DIY and full service market research tools which are either free or affordable for startups and SMEs. Todos and howtos for understanding customers and reducing business risks.

Text of Market research for startups: understand customers and reduce risks

  • Market research for startups: understand your customers and reduce your risks
  • The big ones spend enormous budgets to research the marketplace US $ 31.2 billion worldwide US $ 3.2 billion in the UK US $ 9.9 billion in the USA
  • Those guys never develop or market a product until they reduced their risk to a minimum
  • 40% 26% 22% 12% How do they spend those 31bln? To understand their customers and reduce their risks Understanding: U&A, qual, CRM Risk reduction: pre-tests, modeling Ad tracking Other
  • Understand What do customers need? Are they ready to pay? What colors they like? What messages are relevant to them? What services they expect? What and why they would tell their friends? Reduce risks Whats size of my market? Who will pay my price? Which design will sell better? What they understand from my ads? Is free delivery necessary? Who will recommend me?
  • Well, maybe you wouldnt mind to understand and reduce risks too?
  • Why startups and SMEs are not in the game? It used to be expensive! It used to take months!
  • This used to be true
  • Nowadays most research studies are just copy-pasted by thousands of managers. Expensive managers hours in expensive oces.
  • DIY research was a breakthrough in 2000s
  • SurveyMonkey: do it yourself!
  • 850 000 surveys per months! Belong to paid accounts 47% 250-300 thousands paid surveys!
  • SurveyMonkey: write qre Write your questionnaire Max 10 questions for free No logic & complex questions for free
  • Distribute link for your survey Max 100 responses for free Still those are YOUR responses, you have to nd them SurveyMonkey: nd responses
  • See summarized and raw responses Pre-dened charts and tables on per question basis No export for free No analysis at all SurveyMonkey: analyze data
  • SurveyMonkey is a great tool, still some challenges do persist
  • What questions to ask? It just seems easy to ask questions But usually takes a little more time than you expected Not only your questions introduction, prole, branch logic Question types are confusing SurveyMonkey questionnaire designer is for professionals, which is great if thats who you are Results are quite sensitive to questionnaire wording, presentation and a lot of other little things Bottom line: you have to learn new things to design your own questionnaire
  • How to nd responses? Youve launched your survey, now what? Data collection takes surprisingly a lot of time, even if you have an active customer base. 1.5-2 weeks is average! And what if you dont?
  • How to interpret results? For any non-trivial questions answers and percentages itself are meaningless. You need action standards and benchmarks. Both are usually a byproduct of previous research experience.
  • Next-gen research tools are here to help
  • Write questions Find respondents Get results Analyse results Select target Write questions Get analysed results Select target Get analysed results Select target Get analysed results Up to 24 hours $0.10 - $3.50 per respondent 7 - 40 per respondent 1.70 per respondent
  • GCS: select target
  • GCS: build questionnaire
  • GCS: summary of results
  • Google Consumer Surveys is good for Measuring market size Do you own a dog? Understanding customers Which quality do you look for most when purchasing a dog toy? Timely questions Which of the following messages do you like most for a dog toy company?
  • ZappiStore: buy product
  • ZappiStore brings SMBs expertise of global MR companies TNS Conversion Model helps you identify and size growth opportunities for your brand MillwardBrown eStatic helps you select the best creative for your brand Mmr Impackt helps you to optimize your packagingdesign
  • ZappiStore: set-up and launch
  • ZappiStore is good for All situations when you have to show your results to any outside parties You buy research product endorsed by recognized analytics brand Still it costs thousands of pounds, though much cheaper than the same products bought directly from traditional agencies
  • Proved.co is about testing ideas Start-up ideas Product ideas App ideas Product features Promo ideas Product claims Price points Get feedback from potential customers Benchmark your ideas against thousands of others 2 hours to get the resuts 35 170 per idea
  • Proved.co: set-up Pick your plan, narrow your target group
  • Type in your idea, and click Launch!
  • Proved.co: rst feedback in minutes
  • Proved.co: your idea analysed and scored against thousands of others
  • Proved.co is good for Validation of any business-related ideas New business / new product New marketing campaign / new promotion New price strategy / price promotion Quick choice between two and more Directions, concepts, ideas, messages, etc Investment opportunities, etc.
  • Final thoughts
  • Whatever you do, its investment of your money, your time, your passion Its time to understand your customers and reduce your risks, like big guys do, because your investments are much more precious and risks are much more disastrous Research your market, test your ideas. You can do it yourself and learn a couple of new things in the process. Or use a new generation of research tools: easy-to-use, fast, accurate and cost-eective.
  • Questions? Comments? Alex Lomizov Co-founder @Proved E-mail: [email protected] Web: http://proved.co Twitter: @proved_co Facebook: proved.co LinkedIn: alomizov