Those of us who have been involved in the product process over the past decade —engineering, product marketing, UX design, and product management—have been told that we should find “product/market” fit. However, from the research I have performed and personal experience I feel this is bad advice.
CBInsights and other market research firms continue to cite that “no market need” is the number 1 killer of startups and new product launches from enterprises. The fact is that without a market, there will be little demand for your company and its products. No one will come looking for your great invention, solution, service, etc. There is no “build it and they will come” outside Hollywood.
In 2019, I wrote in Traversing the Traction Gap that product teams should think about market product fit, not product market fit. Recently, I’ve read a few articles where others have made a similar argument.
If you want your product to succeed, whether you are in a startup or an enterprise, I presented a fact-based argument that you should engineer a market for your product(s) and you should start thinking about market/product fit from the moment you begin the product ideation process. Market engineering, as I defined the term and explain in my book, includes category design or redesign, thought leadership, storytelling, messaging, and positioning.
In my book, I counseled product teams that they should become a market-first company. And to do that, they should begin with a commitment to capture statistically-valid market data. Without accurate market data you are likely to fail. It is that simple.
Market research shows that for every three products that succeed, another seven fall short. For every three flashes of brilliance and intuition, there are another seven wrong guesses. For every three startups that do know best how to serve the market, there are seven startups who think they know best, and don’t. And it’s similar with enterprises launching new products; research shows that nearly 60% of new products launched from within mature enterprises fail in 5+ years.
You need more than a product-first approach, more than a customer-first approach, more than customer obsession. You need an approach that looks at future customers, potential customers, would-be customers, and, if you’re an existing company with current customers, beyond them to engage the total market.
That is what I mean by market-first.
MARKET-FIRST DEFINED
The market-first product process demands that companies collect and interpret market signals from customers and non-customers to identify existing and potential problems to be solved.
A strong “market signal” is generated by the combination of what the market says (captured via surveys, focus groups, social media, etc.) and what the market does (what people and businesses do). Acting on weak market signals (e.g., a small survey or focus group) instead of strong market signals (e.g., a broad market survey + product download and usage data) can, and often does, lead to product failure.
Where do these market signals come from?
· Current customers
· Prospective customers
· Non-customers
· Non-prospective customers
· Ecosystem
· Competition
· Influencers
· Partners
· Employees
· Vendors
How can you collect these market signals?
· Discovery interviews
· Large-scale surveys
· Smoke tests
· Usability testing
· Usage monitoring
· A/B testing
· Engagement analysis
· Customer support
· NPS and customer experience data
· Social media sentiment
· Community feedback
It’s been 6 years since I discussed these concepts in my book, yet I continue to see far too many companies – startups and enterprises – that fail to do the necessary market research and subsequent “market engineering” work required to make a product or company successful. Executive ego and emotion seem to continue to drive the product decision-making process. And startup and enterprise product failure rates continue unabated as a result.
Today, v. when I first published “Traversing the Traction Gap”, there are myriad applications and companies that claim they can help you quickly and relatively inexpensively collect market signals. So, the excuses in the past for not doing deep market research – “it takes too long” or “it’s too expensive” – are no longer relevant; especially when failure to do market research can lead to an existential threat.
So, here are a few B2B and B2C market research companies, in no particular order, that claim to offer on demand market research. I haven’t personally used these companies recently so do your homework before signing up with any of them.
B2B
Wynter. Provides on-demand B2B market research with a focus on messaging and user experience testing. Their services are designed to help businesses gather feedback from real users who match their target audience.
UserTesting. While primarily known for user experience research, UserTesting also offers B2B insights by allowing companies to gather feedback from business professionals on products, services, and marketing materials.
SurveyMonkey (Momentive). Offers customizable survey solutions that can be tailored for B2B research, enabling businesses to quickly gather insights from targeted professional audiences.
Qualtrics. Provides a comprehensive platform for conducting B2B surveys and gathering insights, with tools for real-time data analysis and reporting.
Zappi. Focuses on consumer and B2B research, allowing businesses to test concepts, ads, and products with relevant business audiences.
Ask Your Target Market (AYTM). Offers on-demand market research services specifically designed for B2B audiences, enabling businesses to create surveys and receive insights from targeted respondents.
Prolific. While primarily a platform for academic research, Prolific can be used to gather insights from professionals for B2B studies, allowing for targeted participant recruitment.
Cint. Provides access to a global panel of respondents, including business professionals, for surveys and insights, enabling on-demand B2B research capabilities.
Field Agent. Offers on-demand research and audits, allowing businesses to gather insights and feedback from B2B audiences in real-time.
Dscout. Focuses on qualitative research, allowing businesses to gather in-depth insights from B2B participants through mobile ethnography and feedback.
Respondent. A marketplace for finding participants for research studies, Respondent allows businesses to conduct qualitative and quantitative B2B research quickly.
B2C
SurveyMonkey (Momentive). Offers customizable surveys and analytics tools that allow businesses to gather consumer feedback.
Qualtrics. Provides a platform for conducting surveys and gathering consumer insights in real-time, with tools for data analysis and reporting.
UserTesting. Focuses on user experience research, allowing companies to gather feedback from real users on their products or services.
Zappi. Offers a platform for rapid consumer research, enabling businesses to test concepts, ads, and products with real consumers in a short timeframe.
Ask Your Target Market (AYTM). Provides on-demand market research services, allowing businesses to create surveys and receive insights from targeted consumer segments.
Prolific. A platform that connects researchers with participants for online studies, making it easier to conduct consumer research on demand.
Respondent. Offers a marketplace for finding participants for research studies, allowing businesses to conduct qualitative and quantitative research.
Cint. Provides access to a global panel of respondents for surveys and consumer insights, enabling on-demand research capabilities.
Dscout. Focuses on qualitative research, allowing businesses to gather consumer insights through mobile ethnography and in-the-moment feedback.
Field Agent. Offers a platform for conducting on-demand research and audits, allowing businesses to gather consumer insights and feedback in real-time.