Market Research in Product Innovation
Product and design managers must reduce uncertainty at various stages of the product innovation process. Market research includes a range of techniques and methodologies for this purpose. It can occur as a continuous activity to measure a market’s pulse, to predict the magnitude of competitive moves, or to anticipate trends. Additionally, market research can occur as a series of projects to support a specific initiative.
Qualitative techniques provide context and deeper insight into customers’ unmet needs and problem identification. Methods such as in-depth customer interviews, focus groups, lead-user analysis, lateral thinking methodologies, ethnography, and context inquiry allow us to collect the customer's voice and VOC requirements. After ideation, market research provides feedback about the concept and specific commercial insights (SKU mix, volume estimates, pricing, etc.).
Quantitative techniques, such as surveys, concept testing, conjoint analysis, alpha testing, and multivariate techniques, are useful for validation and generalization later in the product innovation process as costs and risks generally increase.
As managers make specific product innovation process decisions, there is the need to identify common metrics along the innovation, development, and product life cycle that measure, monitor, analyze, and present results in a comparable and efficient way to track product success. These metrics include ease of use, net promoter score, pride, satisfaction, churn rates, customer lifetime value, CLV, customer acquisition cost, CAC, and purchase intent, among others.
A good understanding of the strengths of each of these market research methods is imperative for solid and effective decision-making during the product innovation process and life cycle management.