Here’s what we will cover today:

• Learn why market research is critical for innovation, even for revolutionary products

• Grab a template used by thousands to raise billions and build incredible companies

• See how an app studio makes $600k/year & electric aircraft advancements

Quote of the Day

“Don’t watch the clock; do what it does. Keep going.”
~Sam Levenson

Today’s Tip

I once read the following quote from Apple CEO Steve Jobs: “You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new.”

Job’s statement reminds me of a similar statement made by Henry Ford many decades before, which was: “If I had asked people what they wanted, they would have said faster horses.”

Both of these statements imply that there’s no value in market research. This couldn’t be further from the truth.

However, I think there is a valid point made by each quote when applied to game-changing technologies. The automobile was a game changer. As a result, before automobiles were around, the average individual couldn’t fathom what an automobile would be like, let alone state in a survey that they wanted one.

Likewise, before digital audio/MP3 players were invented, it would have been hard for the average consumer to voice their need for such a product.

But importantly, after each of these product categories was launched, market research became critical. Market research determined what new features to add. For cars, it was market research that told manufacturers to increase fuel efficiency, add better stereo systems, and increase cargo capacity among others.

For digital audio/MP3 players, it was market research that told manufacturers to increase screen sizes, increase battery life, and add storage capacity among others.

And, even before these game-changing technologies were invented, the right questions WOULD have yielded the right market intelligence. 

For horse owners, if you asked, “would you be interested in a faster way to get from your house to your best friend’s house a town over?” the answer probably would have been “yes.”

For Sony Walkman owners, if you asked, “would you be interested in a smaller player that holds 100 times more songs and lets you access each song more easily?” the answer also probably would have been “yes.”

The key is that market research IS critical and highly useful, particularly if you ask the right questions.

Below is my 5-step process for conducting market research to understand the wants and needs of your customers, so you can develop the right new products and services:

1. Choose your audience: You need to make sure you survey the right audience. For example, if you are trying to understand the needs of seniors, you don’t survey teenagers. Generally, you will survey current customers and prospective customers, and particularly for prospective customers, you need to choose your criteria precisely.

2. Create your survey questions: There are two core types of questions I like to ask. The first type are demographic and psychographic questions. These are questions such as how old you are, what zip code you live in, and what TV shows you watch. The second type of questions I ask are needs and wants questions. These are questions designed to identify what customers like about current solutions, what they don’t like, and what an ideal solution might look like.

3. Do a reality check on your survey questions: Most surveys have two problems that go hand in hand: they ask questions that are un-actionable and that are too long. With regards to un-actionable questions, read each question to yourself aloud and then imagine how the responses might come back. And then ask yourself if having that response would lead to an action you can take. Then remove the un-actionable questions, and make sure your survey can be completed in 5 to 10 minutes tops.

4. Decide how to administer your survey: In the “old” days, you could mail surveys, conduct them face-to-face, or conduct them via telephone. Today, conducting surveys online using tools like SurveyMonkey.com is considerably easier, faster, and cheaper. So, nearly always, I recommend administering your survey online (unless of course, your target customers are not computer savvy or computer literate).

5. Analyze your results: Analyzing your results is the fun part. Fortunately, online tools such as SurveyMonkey.com make analysis quick and easy as they tabulate the results for you. Importantly, once you review your results, you should start to take action, because Steve Jobs’ quote is valid, in that customer needs and wants do change and if you wait too long to satisfy their current needs, by the time you do, their needs might have changed.

By asking the right questions and acting quickly on insights, you can develop innovative products and services your customers will crave, even if they can't quite articulate their needs yet.  

Today’s Resource

Writing a business plan? Use this template…

Over the past 20 years, literally hundreds of thousands of entrepreneurs, executives, and business owners have come to me for help with their business plans.

Well over 100,000 of them have used my business plan template to quickly and expertly complete their business plans.

And they’ve collectively raised billions of dollars and have gone on to build some pretty incredible companies.

Trivia

Today’s Question: Through how many states does U.S. 80--the main northern route from New York to California ---pass?

Previous Question: Why was the entire village of Hibbing, Minnesota, relocated? 

Previous Answer: For Mining. The village was sitting atop huge beds of iron ore.

After it was moved south, the original site became one of the largest open-pit iron mines in the world--covering over 1,600 acres and running 535 feet deep. 

News

How this app studio makes $600k a year

Beta Technologies unveils first passenger carrying electric aircraft

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