I’m planning to build a product but how can i perform market research related to the product
Let’s say I’m launching a product for restaurant owners helping them ease some their operations for example here’s my idea.
I see a problem with restaurants keeping their menus up to date on delivery apps or even online sometimes and some restaurants aren’t tech savy so how about I build a simple product which can help ease this and help them easily update menu and publish them on all platforms
Also I want to thank everyone for commenting on this post as I have been reading each one of them and each comment is useful for me
Thats why some UX uses matched-pair questions which have two approaches to the issue at hand, boolean opposites, so you can see if they move sliders, weight or answer both the "correct" way to align the response.
Separately:
"If I made a new service x would you like it" is not the same as "if I said it would cost you $5 to use new service x would you use it" is not the same as "do you think new service x would be useful" is not the same as "do you think anyone else wants new service x"
It's very easy to mistake these for "the same"
I am personally very skeptical of NPS and satisfaction scores in small communities. They may work for google scale entities, I don't think they do for <100 users. Many people canonicalise the results of 4-5 respondants. In my experience, if your primary job is to assess if they qualify for X or Y, and you ask them how much they liked your service delivery in denying them X or Y, they will be profoundly negative about the service, which is really not helpful because you may have written a simple direct and fast web service to deliver the negative outcome. And of course, the reverse is equally true.
"Product research" is talking to prospective users/customers. For me, early stage conversations are me trying to understand the customer's problem and how painful it is, not immediately going in with a solution in mind.
Rather than "I've a got a tool that will update your menus on your website", I'm asking "I noticed your website menu is not up to date, why?" "Is it hard to update? Is it expensive? too time consuming? does anyone really care? do you care? does having an outdated menu impact sales?"
Once you've talked to 10's of customers (at minimum), you think you understand the problem, and even have a solution, only then start getting feedback on your proposed product. Do NOT build anything before having customer conversations.
Some general research tips:
- Family and friends in the industry
- Twitter and reddit (looking for complaints, wish lists, people asking for alternatives)
- Product review
- Industry specific publications and forums
- If you've got serious cash, expert interviews and surveys through GLG insights or similar
- Finding people on Linkedin and ask to have a conversation
As far as how to conduct these sorts of interviews goes, a few people have mentioned the mom test - it's v short and simple but it is indeed good. People, for the most part, avoid conflict and so don't give you honest feedback. Instead they tend to be complimentary, but non-committal. As a result, you need to be a little indirect in your line of questioning, and pay more attention to what they do than what they say.
When it comes to testing a product, try and deliver the value manually instead. Businesses don't buy software, they buy solutions to problems. Software is just a way to deliver the solution to many customers. If you can't convince someone to pay you to keep their menu up to date by hand, they won't pay for your software to do it either. Perhaps you convince them to give you the relevant credentials to update menus across platforms yourself, and then they email you when something changes, or you give them a google form, or you go into the restaurant every day and ask what's new. Not everyone is open to working with someone in a scrappy way like this, but you'd be surprised.
You can easily serve a handful of customers manually like this, which will give you the data you need to decide if it's worth it, and the data you need to build the product.
Anyway, good luck!
Don't just build the product in the hopes that people will come to you. Aside from doing market Research et Al, it's equally important that you figure out if you will be able to "market" the product. If you don't have a thoroughly planned GTM strategy that's peer reviewed by people who understand your market, you might end up with a great solution but no access to potential buyers.
Talk to potential customers and use very open ended questions. Be upfront that you are doing market research about delivery app usage in restaurants. Start with something like "How is using delivery apps going for you?" The opener the question the better. Most people love to complain. So your hope is that they rant about their biggest problem. If they don't ask about other areas until they start ranting.
After you found a problem, ask follow up questions about how the problem is impacting them personally. (People don't care about their company, they care about their salary, promotions, if their boss likes them etc.) This will help you later in selling your product, when you call back the person 3 months from now with a prototype.
When you have a concrete product or prototype that you show off, the best indicator is that people ask if they can buy the product right now. If they don't or you have to ask them if they are interested it's probably not solving an important problem for them.
PS: This works for B2B. B2C is probably different.
Anecdotal, I once planned to build a sports related mobile app with music platform integrations. I scraped together a BuyMeCoffee page and wrote an extensive Reddit post about the app idea. The post got hundreds of upvotes and comments within hours — and three people even paid via BuyMeCoffee!
It was quite easy to tell I had hit a jackpot. The idea failed though because Spotify's et al TOS' are quite hostile when it comes to commercial apps.
One recommendation I have is to try manually providing this service to a few restaurants for a small fee. I didn't explore this approach - I simply gave up - but perhaps it might work for you. For instance, they could message you a photo of their menu, and you could update it across various delivery sites. By leveraging some AI and cheap labor, you might even be able to scale it up.
For example, you talk about "a problem with restaurants keeping their menus up to date." But is that a problem restaurant owners have? Or is it a problem you (as a customer) have? And regardless of whose problem it is, how big of a problem is it?
We can break it up into pieces:
1. Assume an up to date menu meant the restaurant had more customers. Would the restaurant be able to serve them? Obviously, if the restaurant is already full at peak hours, then more customers may not help. But what about restaurants that aren't full? Why do they not have enough customers? Is it because the menu is not up to date? Are there other possible reasons, and if so, could those lead to product ideas?
2. From the restaurant's customers perspective, what would they do to solve the problem? Would they switch restaurants if their favorite restaurant didn't have an up to date menu? How many customers would say, "I would eat at X more often if their menu was up to date"? What if all restaurant menus were always up to date? Would customers pay extra for that service?
3. One other entity to consider is the delivery app. Would they benefit from having up to date menus? Would people prefer a delivery app with up to date menus vs. competitors? Would that reduce churn for a delivery app? How much?
Of course, to get the answers to these questions you need to talk to restaurants, restaurant patrons, and delivery apps. But hopefully breaking it down can help guide the conversation.
Some further reading/viewing on it here - https://stackingthebricks.com/video-sales-safari-in-action/
(I’ve written a book on the topic but I’d promote those others ahead of mine, any day.)
However, if you want to start a startup, you aren't optimizing for mistake minimization! You are figuring out if anyone cares as quickly as possible. You will only get true validation of this by seeing if people use your thing, and then iterating from there.
My advice would be - you have to _both_ talk to people and _at the same time_ create whatever your MVP is to launch as fast as possible. It might be a spreadsheet. It might be you doing stuff manually for them before building the software. Get something into their hands as quickly as possible.
I put in a version of your question:
What should I build for restaurant owners to help them ease some of their operations?
And here is the first part of the answer it gave back:
1. One of the major pain points that restaurant owners face is the difficulty in managing and tracking orders from multiple delivery platforms. A software solution that consolidates orders from various platforms like DoorDash, UberEats, Grubhub, and ChowNow into a single dashboard would be highly beneficial. This would allow restaurant owners to manage their orders more efficiently and reduce the chances of errors or missed orders.
You can use it here https://www.painfinder.co/
You could also check what people are complaining about / asking help for in relevant subreddits and see if you can build a product around that.
[1]: https://www.youtube.com/watch?v=Th8JoIan4dg&list=PLQ-uHSnFig...
[2]: https://www.youtube.com/watch?v=z1iF1c8w5Lg&list=PLQ-uHSnFig...
That said, I'd suggest you start by reading The Four Steps to the Epiphany by @sgblank. His "Customer Development Process" is basically "market research" but by a different name, and with a slightly different focus than "traditional" market research.
While you're at it, I'd suggest also hitting up Alibris (or your favorite pirate e-book site, whatever) and pick up a cheap "Intro to Marketing" book. Doesn't matter which one, or what edition, but probably go for something written in the last 15 years or so. Even if it isn't super up to date, a lot of the basics will still be valid.
The book The Mom Test is also good and should probably be required reading at this stage.
If you want more, consider searching the HN archives, as a lot has been written on this topic here over the years.
To find them, find professional organizations, newsletters, chamber of commerce members, whatever where they go and attend. Learn how they describe their space and what problems they talk about. If the problem you're solving comes up regularly, that's great!
Then you need to understand their pain. Ask them about it. Ask them what happened & what they did last time. Ask them what the consequences, costs, and results were.
Do NOT ask them to predict the future.
I wrote this up a long time ago: https://caseysoftware.com/blog/the-problem-with-would
There are a ton of people who currently pay for your competitor’s product, and would gladly switch to yours. You need to find those people and demonstrate your product’s value to them. They will pay you instead of your competitor - that slice of the market now belongs to you, as long as you can keep it, because bear in mind there will always be a ton of people who can make a cheaper, higher quality, or more accessible version of your product.
You might also get lucky enough to stumble across a problem no one has solved yet, or else you might be clever enough to create a problem that your product solves. Those are once in a lifetime type opportunities, big risk versus big reward. Those are the things everybody dreams about that.
But you also don’t need those to get by - if you enjoy solving problems, you can get paid for it, and not invent the microchip or split the atom or chart the sea or the sky.
Is the problem real? How did you find out? Talking to a few restaurant owners (who are keen to discuss) is the starting point. This will also give you insights into other adjacent problems (eg. why should I have to update my menu on my internal database and web portal?).
Is the problem worth solving? How often the restaurant owners need it? Is it important enough that they will pay for it? Do you believe you need to bill for it, or give it out for free to build the base for a future paying product?
As pointed out in the comments, go-to-market is really important. In your particular case, you have the opportunity for self-service acquisition, or via affiliates, or via partnership with Uber Eats, Yelp etc. to simplify on-boarding for restaurants. Go-to-market becomes a deal breaker as soon as you have a good product-market-fit.
This last one is especially useful because if they never looked for a solution its a signal this isn't a real problem. There are millions of problems in the world and most of them are not worth solving because they don't actually matter that much. That's an important angle to think about.
If it's a physical product, Amazon reviews are an incredible resource. If it's a digital/software product, use Google to search for "Alternatives to X", and then research each alternative. Again, look at what people are saying about the product.
What you're looking for is a gap in the market that your product can serve. If everyone is complaining about price, is your product cheaper? If everyone is complaining about complexity, is your product easier to use? If everyone is complaining about a lack of features, does your product have those missing features?
You don't need a product that solves every problem for every person. You're looking for a few key problems that you can solve better than anyone else.
If your product doesn't solve any problems better than the competition, move onto the next idea.
The first question to ask is to understand where you're starting from in your knowledge of the problem. What is the objective of your research?
Assuming you know who your competitors are and your objective is to know their shortcomings to differentiate your product, you might need to do this as there may be many products in this space.
Try to find places where people have spoken about the shortcomings of your competitors' product online. This should give you an initial baseline of some problems you might want to solve first, or at least some problems to validate because you assume no one else is addressing them.
Use the insights gained from that research as the answer to an equation where you've been given the answer first but are now looking for the question it answers.
Generate questions to help validate whether that's the right problem to solve. Start finding people to speak with on LinkedIn, Twitter, etc., ask questions and gain insights. Do they match? Is there anything new? Which problems seem the most painful for the person you spoke to? Validate that on social media and repeat the cycle.
You can get help at: https://contrarian.ai, where they are looking for a few customers to work with to start validating their hypothesis.
Source: Me, having wasted years and countless thousands getting it wrong before starting to get it right.
Walk into the restaurant and sell it to the owner. If he buys it, congratulations! Now you have to go build it.
Define your research objectives: Determine what specific information you want to gather through your market research. For example, you may want to understand the challenges restaurant owners face in updating their menus or their willingness to adopt a new solution.
Conduct competitor analysis: Research existing products or services that aim to solve similar problems for restaurant owners. Analyze their features, pricing, customer reviews, and overall market share.
Gather feedback from potential customers: Reach out to restaurant owners through surveys, interviews, or focus groups to gather insights about their pain points, needs, and preferences related to menu updates and online platforms.
Test your product concept: Create a prototype or mockup of your product idea and present it to potential customers for feedback. This will help you validate whether your solution meets their needs and if there is sufficient demand for it.
Analyze the data: Once you have collected data from your market research activities, analyze it to identify patterns, trends, and key insights that can guide the development of your product.
Refine your product strategy: Based on the findings from your market research, refine your product strategy by incorporating customer feedback and addressing any identified gaps or opportunities.
Remember that market research is an ongoing process that should continue throughout the development and launch of your product. Stay open-minded and adaptable as you gather insights from potential customers and make adjustments accordingly.
Good luck with your market research journey!
Take the answers with a grain of salt of course but mostly you might learn a thing or two as it is trained on a wealth of published articles and market research that you'll never get around to reading even a tiny percentage off. You can even ask it to suggest some follow up reading.
I recently had to figure out the airline industry as they are a potential customer for our product. My questions related to understanding what kind of cost bottlenecks they are facing in their operations and how our product should be best positioned to address problems they have. So I simply asked chat gpt about common causes for flight delays and other cost factors, top n cost bottle necks, etc. I was able to get some very detailed insights out of it fairly quickly. So, when we did talk to our potential customer, we already knew a lot about their business.
But the real money is not on the monthly fee you will charge restaurants to update their menus. That you can give for free.
The money is in automating their purchases and delivery of ingredients they need to run their restaurants. If you already know what they serve and have a system running their backend, it's easy to do that.
And everyone in this business knows one of their main pain points is purchasing ingredients: it needs to be done frequently, fast, from a good supplier, preferably close to them, and at a good price. It's a hustle. They spend a lot of money, time and energy doing that.
There are fast-growing SaaS companies in Brazil making a lot of money in that area.
What is your “unfair advantage“? What do you bring to the table that hundreds of other developers couldn’t do?
If you have the resources, conduct qualitative research like focus groups or individual interviews too.
There are thousand of market researchers like me that do this for a living. Find one you trust and ask them for help.
Long story short: Understanding the complexities of why a certain problem remains under-addressed was difficult in our case. As a result, we ended up pivoting into the direction of helping (potential) founders validate ideas through a specialized search engine of startups. We just launched a beta version of this on https://www.symonda.com - while many features are still lacking, maybe it can still be a useful resource.
How I'd do that (consider it a brainstorm):
- I'd build a simple prototype
- If I have friends in the niche, I'd approach them and ask for feedback
- I'll actually ask them who is managing their menus and marketing. It makes sense to try finding agencies (these could be graphic or print agencies) that print the menus. They can get you in touch with restaurant owners and maybe they know something about keeping menus up to date.
- I'd write down what their struggles are. For example - expensive to update high-quality printed menus, challenge to maintain onsite digital menu, challenge to match current availability with online platforms, etc.
- See if any of the issues they're referring to, does actually relate to the hypothesis you've built. If you're not happy with the result, iterate.
- Play around with use cases - list a couple of use cases (Client orders online, client cancels online, client orders on the phone, order is paid but no availability, out of stock, etc). Observe the business processes surrounding these use cases in the restaurants and see how your solution (or hypothesis) might fit there.
- If you don't feel threatened by the delivery apps, try approaching them. They are usually pretty well-connected with the restaurants and know a lot of their pain points.
- If you can afford it, spend some time in real observations (I'd do that by sitting around a friend who has a restaurant and accepts orders).
If you have a prototype that you believe can be validated, try it with a restaurant. If you're unsure how to approach a restaurant owner, manager or staff, just go there and order some food. Then present yourself and express curiosity. My experience is that if they are not busy and if you don't ask for money, they could be talkative. The more you order, the more talkative they get.
Be very careful what you promise for free to the restaurants. They might ask you to build them a website or help with Windows update.
Good luck! Hope you got some insights.
The best approach is to build a prototype and test the waters.
In your example case - most likely not. The problem is there, but menus going out of sync on delivery apps probably doesn't generate enough troubles to be worth paying for.
Follow-up with if they will be willing to pay, how much? Then take that number multiply it by the audience size and see if it's worth it.
These two questions tend to eliminate the vast majority of half-baked ideas very quickly.
I went to techstars with the cofounders of Nextbite (ordermark at the time) and they did very well in consolidating orders from all the online platforms for the restaurants. I don't know if they ever took on menus, but I do know that restaurants struggle with keep up to date with all the food apps. So, seems like your idea has some market validation! Good luck.
I built a product without all the research, focus groups and whatever else they say you have to do. I needed the product, I could see clear as day that other people would too.
Yes, a good idea still needs to make it to people's eyes and ears, but IMO, if an idea is good enough that you can't pass up doing it -- do it. You probably won't regret it, regardless of the outcome.
I'm still figuring out how to market it and attract more users to it.
Though this doesn't discourage me from continuing to improve and build the product.
Use an appointment booking funnel and when you talk to people you can learn more about what they actually need.
Then post it to hacker news ;-).
The whole restaurant industry tech stack is built on closed APIs and POS systems that sometimes have no API. Plenty of POS and delivery services will not even consider granting API access until you have a substantial number of restaurants on your platform. Or charge you 10k-50k for a license to their sdk.
That’s just starting with access.
The next obstacle your product is going to have to deal with is a complete lack of standardization across products and platforms. Omnivore tried to solve this but ended up with a joke of a product.
Menus look easy right? Here are some of the nuances to consider. Does the menu support options or price variations? Variations are things like large medium small. Modifier groups are things like temperature, sides, etc. some POS systems support nested mods, Doordash for example let’s you have up to 7 mods in their API. Consolidating this with a POS that has no support for nested mods, will not be trivial. What about combos? Toast, and Square deliberately chose not to support combos due to the complexity but anyone coming from a Micros systems will demand combos. Are you going to support chits? If so do you have experience with esoteric kitchen printers to test kitchen and receipt printing with? Oh yeah, everyone writes their own proprietary drivers for printing shit, so good luck there. What about when restaurants have entirely different schedules for their delivery menu vs in house menu. How do you plan on handling things like deliberately out of sync holiday menus. Then you have the whole thing of access control. Some items are meant to only be orders by managers and not appear on digital menus. Are you thinking of doing enterprise? Great, you’re going to need to deal with inventory management systems too. Not only, you have to convince those players to integrate into you. These are small examples. If you try to build a universal machine for menus, you are going to have to come up with a generalized menu format that spans nearly 40 years and tens of millions of lives of code of feature creep. Then you’re going to have to deal with convincing everyone to work with you in an industry that’s main form of competitive advantage is anti-interoperability. If you crack this problem, let me know, I wanna invest.
The last thing you’re going to have to contend with is the user. Unless you are going extreme SMB (no margins). Who you sell your tech to will not be who uses your tech. This introduces a myriad of problems. Restaurants are revolving doors. The cost to retrain a new manager and not have your system ripped out by someone who hasn’t used it every 6 months is not a joke. Oh also, get ready to lose your nights and weekends to tech support.
I think so many tech people have walked into the restaurant space with a simple view of the space only to get burned. Myself included. I wish someone on the tech side had sat me down before I started one of these particular projects. The source of truth in a restaurant is whatever is in stock and whatever the manager feels like. Tech wise, it’s mostly the POS and they are extremely verticalized for a reason. Good luck! Hope this helps.