How to Analyze Market Demands for the Products That You Haven’t Made?

MVPStartup

Overview

For any startup, coming with a new idea is perhaps an easy part. But after that, you have to find out how to make things possible. And if the high of having a person who might think about the next big things start to disappear, you understand that if you’re honest, you won’t be sure if the people will buy it or not! So, what’s the best way to do it?

For startups, focusing on groups is a good idea theoretically, but anybody who has been within the consumer product development space for all lengths of time will express to you that there’s a big problem within them as they don’t work. What people say that they will purchase and what they purchase are generally miles away from each other. The difficulty with things like surveys, focus groups, pre-registration, as well as similar events, which try to measure pre-market demands is that they’re based on the logical problem or solution settings. Asking somebody “Would you purchase this?” when they recognize it isn’t accessible yet it results in thinking about that logically rather than emotionally. They’re seeing the item like something they could think about down the road. It isn’t the real commitment — thinking about that for later doesn’t indicate they would provide you cash for that right now.

The only way to truly see if somebody is going to split over the hard-earned cash to purchase your products is to have it ahead of them. Conventionally, it meant you might need to make a prototype, devote a good amount of time in testing as well as refining that, and ultimately manufacture a smaller quantity. Unfortunately, it was the most costly way of learning that people would not buy it.

However, that was the older way. Today, we utilize an entirely new method to test the market demands and it’s very easy. You’ll think about why you didn’t consider that yourself before you read that. Here’s the procedure that is currently used when you want to test the new idea without you spend on product development.

1. Creating a Brand Identity

The initial step is to create a name as well as a logo. This doesn’t need to be enduring or your ultimate option, this just needs to be distinctive enough to not get confused with everything else that is already available in the market. Register a .com domain for your brand.

2. Use Photoshop to Create Product Concepts

Have somebody who understands what they’re doing in Photoshop and create images for what your products might look like. You’ll require some separate product shots and some lifestyle shots presenting your product getting held by the users or presented in the intended settings. You may also find a lot of people who can do that on websites are Fiverr.

3. Create Your E-commerce Website

For this Shopify is recommended however, if you’re more comfortable with WordPress then you can apply e-commerce plugins like WooCommerce. In case you aren’t web-savvy, you will get a lot of people on Fiverr that can help you in setting up things. Leave the payment process in Test Mode as your objective for doing this website is to provide your products as though that already exists as well as is accessible for the sale immediately. You wish people to add your products to the shopping cart as well as check out in case they were purchasing it. The main difference is that as your computer is in the test mode, it isn’t charging your credit card.

4. Get Traffic through Facebook Ads and Emails

After completing the previous steps, now you have a website ready for product development with wonderful photos and a fully-functioning checkout that people can make a purchase. Now you should get specific traffic and observe what happens. You can use your email list to send lots of emails. Otherwise, the finest way of testing your product’s conversion rate is by using Facebook ads. Prepare your brand’s Facebook page, create ads for the products, and promote them. It is recommended to spend a minimum of $1,000 if you want to have enough conversions and clicks for the data and it will be much better to lose $1,000 on the marketing test rather than losing tens or even hundreds of thousands of dollars in producing products that nobody wants.

When the marketing test gets completed, you’ll get some important figures:

 – How much traffic did your website receive?

 – How many of the sales leads did you get?

 – What kind of comments did people do on your ad?

 – What was your website’s conversion rate?

 – What was the CPA (Cost Per Acquisition)?

It’s just a matter of processing those numbers. Generally, marketing tests aren’t “gainful,” therefore don’t worry much about the CPAs as with appropriate marketing campaigns, you will get targeted audiences to make them down anyway. It does offer you the idea about what you might be working with therefore it’s something to remember.

So now you can close your website as well as Facebook page to avoid additional “orders”. This isn’t required or suggested to reach the people that ordered as well as inform them that it was a test. As you have never charged anybody’s credit cards, they haven’t done any purchase.

The key benefit here is to measure whether or not there’s minimum some demands for the product consulting concept, as well as the “Market presumed as the real one”, the test is the finest way of getting those answers. Any person who has typed in the card number, thinking that the transaction would be done, has made the real commitment of purchasing your product. Understanding how many people would do that is more important than any focus group or survey.

Wrapping Up

And the best thing is that you’ll perhaps have several comments on the Facebook ads also. If as a startup, your initial ad doesn’t perform well, that could give you the idea about what they didn’t like — it means that you can go back, make some changes, and do testing again until you get a winner!