Product Discovery : part 2

Product discovery

In the previous part, we learned about : Brief introduction about Product discovery and how to conduct user research in this part we will Understand Market and Customer Needs.

Imagine you've come up with an innovative product idea. It feels exciting, and you're confident it could be the next big thing. But how do you know if there's a market for it?

Understanding your market goes beyond just knowing how big it is or how much money you could make from a customer group. It’s about really digging into what your potential customers need, how they behave, and what drives their decisions. The aim is to discover the gaps in the market that your product can fill, making sure that your solution truly meets the needs of those who will use it.

To achieve product-market fit, we must first identify who our customers are and what they need. This is where the critical process of customer development is involved, so let's get into it!

Customer Development

Customer development is all about understanding your customers on a deeper level. It’s a methodical approach that involves several key steps to help you answer questions like:

1.  Who are your customers?

          Identifying your target customers. This means gathering details about their demographics- like age, location, occupation, and lifestyle .

2.  What problems do they have?

 Understand the specific problem your target audience are dealing with. For instance, Young professionals might struggle to find quick and healthy meal options due to their busy schedules. Pinpointing these pain points allows you to focus on the issues your product needs to solve.

3.  How are they behaving?

 Look at how these customers are currently behaving and interacting with existing solutions. Are our busy young professionals cooking at home, dining out, or relying on meal delivery services? By analyzing these behaviors, you can uncover gaps in the market and opportunities for innovation.

4.  What solutions will they pay for?

 Consider what solutions these customers are willing to pay for. For example, convenience is a top priority for our professionals, they might be willing to pay extra for speedy delivery of healthy meals.

5.  How will they buy?

 Finally, think about the channels through which your customers prefer to purchase. Do they need an app? A website? A courier service? Understanding their preferred buying method allows us to create a seamless customer experience.

By following these steps, you’ll build a comprehensive understanding of your customers which will help validate your product ideas.

The next step in refining your approach is to create detailed personas that represent these diverse user groups. 

Customers and Personas:

Difference between customers and personas.

• Customers are the real individuals who interact with your product, providing feedback, making purchases, and shaping the market.

• Personas, on the other hand, are fictional characters based on research data that represent key segments of your audience. They help you visualize and empathize with the different types of customers you're designing for.

• A customer is a real-world example of a persona. For instance, while both Meta and Snapchat may share some of the same customers, their personas differ based on how they segment those customers and what they prioritize. Meta might focus on a persona interested in finding news articles, whereas Snapchat emphasizes personas centered on visual storytelling.

Should Personas Be “Real?”

Generally speaking, no. They’re usually fictional composites, but as we’ll cover shortly, you should use real people to build the personas.

Multiple Personas

Most companies have more than one persona because they cater to diverse user bases. By defining multiple personas, they can tailor product features and marketing strategies to meet the specific expectations of each group.
Example: Netflix might use personas like 'The Binge-Watcher' and 'The Casual Viewer' to represent different types of users with specific viewing habits.

Connecting Personas with Use Cases

Now that you understand your personas and their traits, the next step is linking them to specific use cases. This is where you shift from knowing who your users are to figuring out how they’ll use your product. A use case outlines a scenario where a persona interacts with your product to achieve a goal. By connecting personas to use cases, you can predict how different users will engage with your product and ensure those interactions are smooth and effective.

For instance, if you take 'The Binge-Watcher' persona from the previous Netflix example, a relevant use case might be:

"As a binge-watcher, I want to easily find new series to watch so I can enjoy uninterrupted viewing."

This use case emphasizes the need for features like personalized recommendations, curated playlists, and easy access to new content.

Template: How to Craft a User Persona

Source:  Product School – user persona template.

Customer Interviews

Customer interviews are a crucial part of the product discovery process, serving as a direct way to validate if the persona you imagined is truly the right customer. These interviews provide firsthand insights into users' experiences, behaviors, and pain points. Tips for a Good Customer Interview

1. Set a Clear Hypothesis.

2. Know Where to Find Customers.

3. Find your User Segment.

4. Plan with a Script.

5. Close with an Important Question.