6 Key stages in product research you need to get right
In the 1990’s credit card giant American Express analyzed their customer base and recognized that many of their customers were business professionals who valued points for airlines and hotel stays.
From that research, American Express created a new line of products geared towards this segment. Today, these credit cards are still among American Express’s most popular and profitable products.
Product research leads directly to growth: 43% of companies who focus on creating new products or services as part of their strategy grow faster than the market, according to McKinsey.
The product research lifecycle
Product research must be done at each stage of the product lifecycle. Research offers vital insights into the market, your customers, and your competitors, providing the best odds of long-term product success. Done well, product research can extend the life of your product by validating your most critical product lifecycle decisions with data.
- Idea – Market research during the ideation phase can help you understand the market size and opportunity as well as unmet market needs.
- Development – Understanding customer preferences can help you avoid costly mistakes while developing products with a greater chance of success.
- Introduction – Companies must introduce new products for continued growth. However, Product launches are risky: 50% of product launches fail to meet business objectives. Research around pricing, naming, and advertising can help you set the right tone.
- Growth- The growth phase is often the most critical time of a product’s lifecycle. Research helps you know and adjust the right feature development list for product optimization and deepen customer insights.
- Maturity – Leveraging research for mature products helps you continue to innovate and provide value for your customers.
- Decline – Products naturally decline and product research can help you know when to discontinue your product or what options may exist to reinvigorate growth and demand.
Product research promotes growth
Companies that focus on creating new opportunities grow faster than their peers, and customer research is a critical component of that strategy. Product research helps you navigate some of the most difficult product decisions with greater confidence. Whether you decide to reinvigorate your existing products or introduce new ones to fuel growth, product research plays a critical role.
Do you want more information on researching and reaching your customers through product research? Download the Qualtrics eBook 16 Ways to Manage Successful Products. You’ll learn 16 product research methods along every phase of the product lifecycle, so you can have confidence in your decisions and gain vital insights into the market, your customers, and your competitors.
eBook: 16 Ways to Manage Successful Products