Posted by aj in 
Grad students have a wonderful saying: “Six weeks in the lab can save you two hours in the library.” The same applies to software companies. Building the wrong product is an expensive proposition, and for startups, it’s usually fatal. The good news is that a well-run research effort can help you avoid this fate. What’s more, it’s actually a well-defined process that will probably cost less and deliver more than you think.
In general, there are two types of research: quantitative and qualitative.
Quantitative
Quantitative, unsurprisingly, involves large numbers of respondents. It’s typically structured as some kind of survey and analyzed using statistical methods. It can help you learn things like
- “78% of executives who travel rely on their smartphones instead of their laptops for overnight trips”
- “Only 3% of small business owners have heard the term “VoIP” and know what it means”
Quantitative research is often used to find potential market opportunities, gauge demand for a product under consideration, or justify demand for a product already under development.
Qualitative
Qualitative research is typically conducted with small groups (some variation of the focus group model), and with individuals (some kind of one-on-one interview.)
Use Focus Groups for Insight
Focus groups help you to identify customer problems and pain points, and allow you to hear the actual language they use. For example, you may think of your product as a “multi-function mobile broadband communications terminal” while your customers think of it as a “phone.” This type of insight is invaluable when defining or positioning a product.
The rules for successful focus groups are pretty simple: get the right people in the groups, work with a great moderator, and run at least two groups for each audience you want to research. (This helps you eliminate any bias that might exist within one particular session.)
A complete focus group project to one audience can cost as little as $15K, and can be done in as little as 4 weeks. You can of course spend more to get better, more reliable insight, but budget at least this to get some real value from the process.
Use Interviews for Validation
Individual interviews are best for getting a response to a specific proposition, like a product idea or positioning. This helps you validate and refine your messaging, benefit statements, pricing, and the other specifics of your offering.
The rules for successful one-on-one interviews are also simple: make sure you’re talking to the right people, talk to a minimum of 7 or 8 from each audience, and don’t have someone from your company do the interviews. (No one will tell you that your baby is ugly, but if asked correctly, they will tell someone else.)
One-on-one interviews are usually 30 minutes to an hour long, and can be done over the phone at very low cost.
Now is a Good Time to Start
At what phase in the development process should you start your research? Now is probably a good time. In the 20 years we’ve been doing technology marketing, we’ve never heard anyone say “We did the research too early.”
