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Tuesday, June 25, 2024

Market Research and Experimentation for Lean Startup

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If you are someone looking forward to starting a new business or establishing a start-up. There are many new methodologies and approaches you can adapt to get into the industry. Many businesses focus on marketing by adopting new strategies and marketing techniques like creating a Wikipedia and getting to know how to get a Wikipedia profile.

But today in this article a new approach has been discussed called lean start-ups that are adopted by most entrepreneurs nowadays all across the globe. It involves investigation, experimentation, and testing new techniques while developing the business.

Real experiments follow the scientific method. It starts with a clear hypothesis predicting what will happen. Then we empirically test that prediction. Just as theory characterizes scientific experimentation, a startup’s vision drives startup experimentation.

What is a Lean Startup?

It is a methodology used by developing businesses and products that are just established in the industry. It basically focuses on small product development cycles. Done by picking up a mixture of business hypothesis-driven experimentation, responsible for releasing iterative products.

Experimentation in Lean Startups

Experimentation is distinctly different from market research and surveys.

  1. Customer demand data is more accurate because they observe actual customer behavior.
  2. Learn customer needs while communicating with real customers.
  3. Matters that you did not even think to ask may be revealed by the customer’s unexpected behavior.

Businesses do not look for the average customer, they need to find the early adopters, the customers who most accurately feel the need for the product. If early adopters do not reuse, this is a very significant and negative result. If the numbers from your initial experiments look promising, there is definitely something wrong with your strategy.

What Experimentation Looks Like in Lean Startup Model

In the Lean Startup model, experimentation is also the first product that goes beyond just theoretical investigations. If this or that experiment is successful, the manager can unfold the strategy. By the time your product is ready for wide distribution, you will already have established customers. You have solved the real problem and you should have detailed specifications of what to build. This specification increases the likelihood of success or predictability because it is rooted in feedback made today rather than anticipated tomorrow.

How to Make It Successful?

Success is not about delivering features; it is about learning to solve customer problems. Therefore, you need to learn about the 4 questions below.

  • Is the customer aware of the problem you are trying to solve?
  • If there is a solution, will customers buy it?
  • Will customers buy it from our company?
  • Can we create a solution to the problem?

How does the Process work?

The products startups make are real experiments, and as a result of experiments, you can learn how to build a sustainable business. The ‘make-measure-learn’ feedback loop is at the heart of the Lean Startup model. It is not the individual activity itself that is important. You need to focus on minimizing the overall time through this feedback loop. By focusing a company’s resources on valid learning, it will avoid the waste that plagues startups today.

If you’re making something no one wants, there’s no point in spending time and money doing it. The purpose of any startup effort should be to test assumptions as quickly as possible. Be sure to do an empirical test first. The first thing to do is to make sure you really have customers who will embrace your new technology.

By meeting potential customers, startups can learn which assumptions to test first. The purpose of initial customer contact is not to get definitive answers. Instead, it’s about understanding your prospect and making it clear at a basic, rough level what their problems are. It’s dangerous to do too much analysis, but it’s also dangerous to not do any analysis at all.

A minimum viable product (MVP) helps entrepreneurs start the learning process as quickly as possible. But it doesn’t have to be the smallest product imaginable. It just needs to go through the ‘make-measure-learn’ feedback loop as quickly as possible with minimal effort. The purpose of an MVP is to begin the learning process, not to end it. Unlike prototypes or concept tests, MVPs are not designed to answer product design or technology questions but are created to test fundamental business hypotheses.

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