Tag: competition

Going Beyond Demographics: The Advantages of Behavioral Segmentation in Customer Discovery

Shashank

Using Behavioral Segmentation Based on the Solutions Users Use to Accomplish Their Intended Outcome to Understand their challenges and pain points with regard to the Solutions they Use currently and also with regard to other options available to them currently for a customer discovery of a new product idea

When developing a new product, it’s essential to understand your customers’ needs and pain points. This is where customer discovery comes in. Customer discovery is the process of talking to potential customers to learn about their challenges, pain points, and what they need from a product. By understanding your customers’ needs, you can create a product that solves their problems and meets their needs.

Traditionally, businesses have relied on demographic and psychographic segmentation to understand their customers. Demographic segmentation divides customers based on characteristics such as age, gender, income, education, and occupation. Psychographic segmentation, on the other hand, divides customers based on their attitudes, values, interests, and personality traits.

While demographic and psychographic segmentation can be helpful in understanding your customers, they have limitations. These segmentation methods assume that people with similar demographics or psychographics have similar needs and challenges. However, this is not always the case, especially when it comes to developing a new product.

Behavioral segmentation is an alternative approach that is gaining popularity in customer discovery. Behavioral segmentation divides customers based on the actions they take and the solutions they use to accomplish their intended outcome. This approach is particularly useful when developing a new product because it focuses on customers’ actual behavior and the solutions they currently use to accomplish their intended outcome.

Using behavioral segmentation based on the solutions users use to accomplish their intended outcome, you can identify four segments of potential customers: users using direct competing products, users using indirect competing products, users using substitute competing products, and users who do not use any of the existing solutions to accomplish their intended outcome.

Users using direct competing products are those who use a product that directly competes with the product you are developing. For example, if you are developing a ride-sharing app, users who currently use Uber or Lyft would fall into this segment.

Users using indirect competing products are those who use a product that indirectly competes with the product you are developing. For example, if you are developing a meal delivery service, users who currently use a grocery delivery service may fall into this segment.

Users using substitute competing products are those who use a product that solves the same problem but in a different way. For example, if you are developing a home security system, users who currently use a guard dog for security may fall into this segment.

Users who do not use any of the existing solutions to accomplish their intended outcome are those who do not currently use any solution to solve the problem you are addressing. For example, if you are developing a mindfulness app, users who do not currently practice mindfulness may fall into this segment.

By understanding these four segments, you can gain insights into your potential customers’ behavior and the solutions they currently use to accomplish their intended outcome. This information can help you identify your target market and develop a product that meets their needs.

Using behavioral segmentation also allows you to understand your potential customers’ pain points and challenges with the solutions they currently use. By conducting customer discovery interviews with each segment, you can gain insights into the strengths and weaknesses of existing solutions and the opportunities for improvement. This can help you create a product that addresses the pain points and challenges of each segment.

Another benefit of using behavioral segmentation in customer discovery is that it allows you to identify potential customers who are not currently using any solution to accomplish their intended outcome. These customers may be an untapped market, and understanding their needs and challenges can help you develop a product that meets their needs and solves their problems.

Are you tired of relying solely on demographic data to understand your target customers? It’s time to take your segmentation game to the next level with behavioral segmentation. By downloading our free ebook “Discovering Your Target Customer: A Behavioral Segmentation Playbook,” you can unlock the key to understanding your customers’ behavior and motivations. Say goodbye to one-dimensional demographics and hello to a deeper understanding of your customers’ needs and desires.

Why Articulating the “Customer Outcome” is Crucial for Using Behavioral Segmentation in Customer Discovery

Shashank

In customer discovery, understanding the customer is a crucial step in creating a successful product or service. One approach to gaining this understanding is behavioral segmentation based on the solutions users use to accomplish their intended outcome. However, before diving into this approach, it’s essential to articulate the job to be accomplished or the customer outcome. By connecting the customer outcome to the fact that some solution would be at use and finding gaps in satisfaction level of that existing solution and reasons for the gap, one can better understand the customer’s needs and how to serve them.

What is the Job to Be Accomplished or Customer Outcome?

Before diving into why it is crucial to articulate the job to be accomplished or the customer outcome, it’s important to understand what these terms mean.

A job to be accomplished refers to the underlying goal that a customer is trying to achieve when they use a product or service. It’s not about the product or service itself but rather the desired outcome that the customer is seeking. For example, a job to be accomplished for a customer could be to reduce stress or to save time.

A customer outcome, on the other hand, refers to the specific results or benefits that a customer expects to receive from using a product or service. It’s the measurable outcome that a customer seeks. For example, a customer outcome for a fitness app could be to lose 10 pounds in 3 months.

Why is Articulating the Job to Be Accomplished or Customer Outcome Important?

It Helps Identify the Right Target Customer Segment

Articulating the job to be accomplished or customer outcome helps identify the right target customer segment. By understanding the underlying goals or desired outcomes of a customer, businesses can create products or services that cater to those needs. For example, if the job to be accomplished is to reduce stress, the target customer segment could be people who work long hours or have high-stress jobs.

It Enables the Business to Focus on the Customer’s Needs

By articulating the job to be accomplished or customer outcome, businesses can focus on the customer’s needs rather than their own. This enables businesses to create products or services that cater to the customer’s needs rather than just their own business goals. For example, a fitness app could focus on helping customers achieve their fitness goals rather than just making money from the app.

It Helps Identify Existing Solutions and Gaps in Satisfaction Level

Articulating the job to be accomplished or customer outcome can help identify existing solutions and gaps in satisfaction level. By understanding what the customer is trying to achieve, businesses can identify existing solutions that customers use to accomplish their desired outcome. They can then evaluate the satisfaction level of customers using these solutions and find gaps in the market that they can fill. For example, a business might identify that customers are using fitness apps but are dissatisfied with the level of personalized coaching.

It Guides Product Development

Articulating the job to be accomplished or customer outcome helps guide product development. By understanding what the customer is trying to achieve, businesses can create products or services that cater to those needs. They can then evaluate the satisfaction level of customers using these products or services and make improvements to meet customer expectations. For example, a fitness app could develop personalized coaching features to meet the needs of customers who want more personalized guidance.

Using Behavioral Segmentation Based on the Solutions Users Use to Accomplish Their Intended Outcome to Understand Customer Needs

Once the job to be accomplished or customer outcome has been articulated, using behavioral segmentation based on the solutions users use to accomplish their intended outcome can help businesses understand customer needs. This approach involves segmenting customers based on the solutions they use to accomplish their desired outcome. For example,

For example, let’s say a company is developing a new software tool for project management. Before conducting behavioral segmentation research, they should first articulate the job to be accomplished or the customer outcome that the tool will help achieve. This could be something like “streamlining project management processes” or “increasing team productivity.”

Once they have identified the customer outcome, the company can then use behavioral segmentation research to understand how their target customers currently achieve this outcome. They may find that some customers are already using direct competing products, while others are using indirect competing products or substitute competing products. There may also be a segment of customers who do not currently use any existing solutions to accomplish their intended outcome.

Through behavioral segmentation research, the company can dig deeper into each segment to understand their challenges and pain points with regard to the solutions they use currently and also with regard to other options available to them currently. This information can help the company identify gaps in satisfaction levels with existing solutions and the reasons for those gaps.

By connecting the customer outcome to the fact that some solution would be at use and finding gaps in satisfaction levels of that existing solution, the company can gain insights into what features and functionality their new tool should offer to better meet the needs of their target customers. For example, they may find that customers using indirect competing products are frustrated with the lack of integration between different tools they use, which could inform the development of a more seamless and integrated project management solution.

Ultimately, articulating the job to be accomplished or the customer outcome before conducting behavioral segmentation research helps ensure that the research is focused on the right areas and that the insights gained are directly relevant to the company’s product development goals. Without this focus, behavioral segmentation research may yield interesting insights, but they may not be actionable or relevant to the company’s specific needs.

If you’re looking to take your marketing efforts to the next level, understanding behavioral segmentation is crucial. By downloading our free ebook “Discovering Your Target Customer: A Behavioral Segmentation Playbook“, you’ll gain valuable insights and strategies for targeting your audience more effectively.

How to Craft a Winning MVP Without Customer Interviews or Market Surveys

Shashank

When developing a new product or service, one of the most important steps is identifying the problems or challenges that customers face with existing solutions. This information is crucial in determining the type and details of your Minimum Viable Product (MVP), which is the version of your product with just enough features to satisfy early customers and provide feedback for future development. While traditional methods of gathering customer insights, such as customer interviews and market surveys, can be helpful, there are ways to start identifying potential challenges with existing solutions even before starting these activities. In this article, we will explore how to get insights about hypothesis of challenges with existing solutions and how to leverage them to decide on the type and details of your first MVP idea.

Research Direct Competitors

One of the most effective ways to identify challenges with existing solutions is to research your direct competitors. By analyzing the products and services offered by your competitors, you can get a better understanding of the challenges customers face and the gaps that exist in the current market. Look at customer reviews, social media comments, and forums related to your competitors to see what customers are saying about their experiences with the products. This can help you identify patterns and common challenges that customers face, and use this information to develop your MVP with solutions that address these issues.

Another way to research your direct competitors is to analyze their pricing and packaging strategies. Look at the pricing of similar products to determine what customers are willing to pay for a particular solution. Additionally, analyze the packaging and features of competing products to understand what features customers value the most. This information can help you identify what features to include in your MVP to provide the most value to customers.

Research Indirect Competitors

In addition to researching direct competitors, it is also important to research indirect competitors. These are products or services that are not direct competitors but provide similar solutions to customers. By researching these products, you can identify additional challenges and gaps in the market that your MVP can address. Look for products that provide similar solutions or have a similar target market, and analyze their customer feedback, pricing, and features to identify potential gaps.

Research Substitute Competitors

Substitute competitors are products or services that provide a different solution to the same problem. For example, if you are developing a meal delivery service, a substitute competitor could be a grocery delivery service. By analyzing substitute competitors, you can identify additional challenges and gaps in the market that your MVP can address. Look for products or services that provide a different solution to the same problem and analyze their customer feedback, pricing, and features to identify potential gaps.

Research Non-Consumers

Non-consumers are potential customers who do not currently use any existing solutions to solve their problem. By researching non-consumers, you can identify potential challenges and gaps in the market that existing solutions do not address. Look for potential customers who are aware of the problem but have not found a suitable solution, and analyze their feedback to understand what challenges they face. This information can help you develop an MVP that addresses these challenges and provides a solution that is more attractive to non-consumers.

Identify Patterns and Trends

After conducting research on your competitors and potential customers, it is important to identify patterns and trends in the data. Look for common challenges or gaps that multiple customers or competitors have identified, as these are likely to be the most pressing issues. Additionally, look for patterns in customer feedback, such as common complaints or suggestions for improvement. These patterns and trends can help you develop an MVP that addresses the most important pain points and challenges experienced by your potential users.

Once you have identified the most common pain points and challenges, you can begin to brainstorm ideas for your MVP. Start by thinking about the simplest possible solution that could address these issues. Remember that your MVP is not meant to be a fully-featured product, but rather a basic prototype that can be used to validate your assumptions and gather feedback from users.

One useful approach for generating MVP ideas is to use the “Jobs to Be Done” framework. This framework focuses on understanding the underlying motivation or goal that drives someone to use a particular product or service. By identifying the job that users are trying to accomplish, you can design an MVP that specifically targets that job and provides a solution that is aligned with the user’s needs.

Once you have a rough idea of what your MVP will look like, it’s time to start testing it with users. This is where the insights you gained from analyzing existing solutions can be particularly helpful. You can use this knowledge to create a list of potential users who are most likely to benefit from your MVP, and then reach out to them to gauge their interest and gather feedback.

At this stage, it’s important to remember that your MVP is not a final product. Instead, it’s a starting point for testing your assumptions and gathering feedback. You should be prepared to make changes and iterate on your MVP based on the feedback you receive from users. This feedback will be essential in helping you refine your MVP and make it more effective at addressing the pain points and challenges experienced by your potential users.

In conclusion, using insights about challenges with existing solutions can be a valuable tool for deciding the type and details of your first MVP idea. By analyzing existing solutions, you can gain a better understanding of the pain points and challenges experienced by potential users, and use this knowledge to design an MVP that addresses these issues in a targeted and effective way. Remember to keep your MVP simple and focused on addressing the most important pain points, and be prepared to iterate based on feedback from users. With this approach, you’ll be well on your way to building a successful product that meets the needs of your target audience.

To make this process efficient, get your hands on our free ebook “Discovering Your Target Customer: A Behavioral Segmentation Playbook” and obtain valuable insights and effective strategies for segmenting your customer base and comprehending their behavior. Download now!

The Untapped Market: Non-Users as Potential Customer Segment

Shashank

In the world of business and product development, it’s common practice to identify target audience segments based on their behaviors, demographics, psychographics, and other characteristics. However, there’s a segment of users who often get overlooked or ignored – those who do not use any existing solutions to accomplish their job or desired outcomes. These users are important to consider as a potential target audience segment for several reasons.

Firstly, these users represent a potential untapped market. By not using existing solutions, they are likely experiencing pain points and difficulties in achieving their desired outcomes. If a new solution can effectively address these pain points and make their job easier, they could become loyal customers and advocates for the product. This segment may also be less price-sensitive, as they don’t have a current solution to compare the price to.

Secondly, these users may be more open to innovation and disruption. By not using existing solutions, they are already demonstrating a willingness to try something new and different. If a new solution can effectively demonstrate its value and benefits, these users may be more willing to adopt it compared to users who are already using an existing solution.

Thirdly, these users may provide valuable insights into the flaws and limitations of existing solutions. By understanding their pain points and struggles, new solutions can be designed and developed to address these issues and provide a better user experience.

One example of a target audience segment who do not use existing solutions is the “unbanked” population. These are individuals who do not have access to traditional banking services such as checking accounts, savings accounts, and loans. In the United States, there are over 6 million unbanked households. In developing countries, the number is even higher.

For this segment, traditional banking solutions are not accessible or viable options. This has led to the rise of alternative solutions such as mobile banking, prepaid debit cards, and peer-to-peer lending platforms. These solutions have been successful in reaching the unbanked population and providing them with financial services that they previously did not have access to.

Another example of a target audience segment who do not use existing solutions is the “DIY” or “maker” community. These are individuals who enjoy creating and building things themselves, rather than purchasing pre-made solutions. This segment is passionate about innovation and creating new solutions to solve their own problems.

For this segment, traditional off-the-shelf solutions may not meet their specific needs or requirements. Instead, they prefer to build their own solutions using open-source software, hardware, and tools. This has led to the rise of communities and marketplaces such as GitHub, Thingiverse, and Hackster.io. These platforms provide the DIY community with resources and tools to create their own solutions and share them with others.

When considering these examples, it’s clear that target audience segments who do not use existing solutions represent a significant opportunity for new solutions and innovations. By understanding their pain points, motivations, and behaviors, new solutions can be designed and developed to effectively address their needs and provide a better user experience.

Looking to improve your understanding of your target customers and their behavior? Download our free ebook “Discovering Your Target Customer: A Behavioral Segmentation Playbook” to gain insights and strategies for effective customer segmentation. With practical tips and a step by step process, this ebook is a useful resource for someone looking to grow and succeed in today’s competitive market. Don’t miss out on this opportunity – download now for free!