Performing market analysis is the fastest way to achieve both your product solution fit and product market fit fast; however, so many companies skip this crucial step. Whether you are identifying a new product offering or assessing the direction for your existing product offerings, understanding the dynamics of your buyer, market, and product growth stage is critical in the formation of your strategy.
Market Analysis / Market Research
Market Analysis can vary based on your objectives and goals, but there is never a substitute for getting data from potential buyers, existing customers, and practitioners using your products through both quantitative (e.g., surveys) and qualitative (e.g., objective 3rd party interviews) means. Here are some sample areas where market analysis can be performed:
Customer Discovery: We favor using the lean business canvas model to identify what you believe to be your product's business model, then extract what 'risky' assumptions you have made to create your hypotheses on the market. From there we use surveys and/or interviews to either validate or learn what needs to be changed to your hypotheses to reach a stronger product / solution or product / market fit. NOTE: This not only directly helps develop your product roadmap, but also serves as a foundation for your marketing and positioning efforts.
Win / Loss: Product Insight's win / loss analysis is a little different from traditional win / loss approaches in that we don't focus on the sales cycle. Instead, we get to the heart of what customers and lost prospects are looking for out of your solution, where they feel your strengths and weaknesses are, and how they assess value. Objective feedback on win / loss is critical. Through our offering, product teams (PM or PMM) get first-hand feedback from the market. Product Insight typically helps clients by performing the initial full win / loss analysis and then teaching your team how to perform the analysis on a routine basis going forward.
Pricing and Packaging: Value-based pricing goes hand and hand with SaaS-based offerings. Each package should align to the buyer segment you are targeting and how they assess value. For this reason, performing market research to understand those buying segments is critical so you properly design packaging and the associated price for each package.