Market Validation Experiments

08 Oct Market Validation Experiments

Market validation tests are the best method to test the feasibility of a new product idea with prospective customers. They help reduce the risk of developing a product which isn’t a success, increase investor confidence in the product and assist teams in allocating scarce resources efficiently.

Traditional methods of validation of market trends like focus groups and surveys have their limitations. Asking someone whether they would be interested in buying your product isn’t the same as actually purchasing it. The results can be misleading.

Many businesses are focused on running experiments to determine whether their product has the potential to succeed. While this may be a great strategy however, it’s important to realize that there are more affordable and faster ways to test a product idea.

Let’s say, for example that an SaaS company is keen to determine which of two social media platforms in a new market would generate the most leads. It decides to conduct an experiment based on a few assumptions. It is assuming that platform A will perform better than platform B, and it sets out to confirm this theory with its users.

This is a typical market validation experiment – but there are plenty of other examples. Competitive analysis and Google Trends to identify trends and conduct interviews with competitors and numerous other methods of research to gather the information you require. After you’ve gathered the data then https://vintagecomputersforsale.net/market-validation-experiments/ it’s time to analyze it. The results will either disappear or continue to be a pivot point – to borrow from the lean startup methodology.