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Good market research is an important factor behind the success of your startup. It's necessary to analyze whether you're new idea or product will even be accepted to your target market. While you can conduct this market research in various ways, online survey software seems to be the easiest and most affordable solution.
For new startups, market research is a huge first step, because a reported 42 percent of startups that fail do so because there isn't a market need for them. Knowing this, let's get you on the right track for conducting your market research survey.
1. Outline
The first step is to outline your market research survey. It should answer a few questions:
- Who is your target market?
- Is your idea or product idea in demand?
- Will people be willing to pay for it and how much?
2. Audience
Your survey software should also ask a few demographic questions like age, gender, region and household income. These will give you an idea of your survey audience so you'll know a little about the different types of people who will be responding to your product questions.
3. Competitive Analysis
While identifying your industry, consumers and the needs of your consumers, you'll come across some competition within your market. In this phase of your market research, you'll want to name your indirect and direct competitors. Note their weaknesses and their strengths as you or their existing consumers see them.
4. Product Demand
There's a two-step process when it comes to gauging your product idea's demand. First, you'll want to ask about similar or competing products. Does your potential audience use these competing products? For how long? What did they like about the products? These are important questions.
At first, your consumers won't be able to rate your product, because they can't actually experience it firsthand. But, they can rate competing products that they have used and this will give you an idea about the demand for your idea.
Next, you'll want to present your audience with your product idea and ask for their opinions or first impressions. This presentation can be a little description or a video. You'll want to be as descriptive as possible, without making it too long. Your response rate will suffer if your audience has to sit through a presentation that's over a minute long.
5. Willingness to Pay
Now, you're going to gauge how willing your audience is to actually pay for your product. Ask them questions like:
- What price would you find to be too expensive for the product?
- What price would you find to be so low you question the product's quality?
- What price would you find to be ideal and a good investment of your money?
A market research survey tool is a must for any startup business and shouldn't be overlooked. It helps you determine the demand for your product so you can make important business decisions.
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