Market Validation & Consulting Services
The market validation stage is when startups assess their business model and determine whether there is a viable market for their product or service.
Why do about 35 percent of startups fail? They don't have product-market fit. Did they even go through a market validation process? They didn’t even check.
Typically this process begins with customer discovery by talking to potential customers to see if they would use the product or service. If there is a demand, startups will then begin developing and testing prototypes before finally launching their product or service.
The goal of market validation
The goal for the marketing validation phase is to determine if there is a market, what features are most important to customers and what they are willing to pay for it.
For a past product launch, Nike spent two years validating whether parents would sign up for a shoe subscription service for kids. They used targeted Facebook ads and gained 10,000 members to figure out what their client’s pain points were. Using this proof and customer feedback, Nike felt confident to launch their kids-focused Nike Adventure Club. Not only have they differentiated themselves from competitors not offering this service, they’ve created a recurring form of revenue by validating their service.
The core idea here: want your idea to be successful? Use market validation services to have an accurate proof of concept that encourages you to move forward with the help of substantiated evidence.
The process leverages various technologies to strategically develop insights based on the collected data. 555vCTO provides expert market validation services that ensures successful results. Our market intelligence consulting is based on the latest research.
When should market validation happen?
As a startup, it’s important to validate your market before you begin working on your idea or product. This process determines whether there is an actual need for your product and what potential customers are willing to pay for it.
There are a few different ways to approach the market validation process:
Talk to people who would likely be your customers and get their feedback.
Ask them if they would purchase your product, how much they would be willing to pay, and what features they would want. You can also ask them about any similar products that they currently use and why or why not they like those products. The most effective ways to gather the market insights you need to ensure that the proof of concept include focus groups, technical interviews, and online surveys.
Conduct online research into your target market.
See if there are any articles or blog posts discussing the pain points that your product aims to solve. If so, then you know there is at least some interest in a solution such as yours. Look up demographic information on potential customers which will give you an idea of their income levels and other factors that could affect their willingness (and ability) to purchase your product.
Trust 555vCTO for market research consulting
Tracking emerging trends and consumer needs help enable you to successfully gauge the market opportunity for your product and how it can deliver value.
With 555vCTO’s consumer research consulting for your business, we can help uncover more knowledge about your industry, competitors, and customers. This can be invaluable and contributes to every aspect of your company no matter what stage of growth it happens to be in.
555vCTO will determine a viable target market -- one of the most important steps when developing and executing a product roadmap.
Our experience in startup market validation means we can help position your company to better use consumer research, analytics, and other insights to create long-term value.