Benefits of using Customer Development to test new products
Customer Development is a product development methodology based on hypothesis or prototype testing. This involves testing the demand for the project among members of the target audience. The approach is most often used when launching a new product on the market or updating an existing one.
Methodology benefits
One of the key advantages of Customer Development is its universality. The methodology is applicable to the testing of an entire product as well as its components, including add-ons and rebranding. The purpose of using this approach is to understand better the needs of the target audience in relation to a particular product. Benefits of CustDev:
- obtain accurate data on the needs of potential customers to improve the quality of the product;
- exploring the value of the product to the target audience and the relevance of its features;
- analyse consumer behaviour and the purchase decision process;
- determining a competitive price based on customers’ willingness to pay for the product;
- identify additional product value to enhance the product offering further.
CustDev allows you to reduce the time needed for project testing and to gain insights into promotional opportunities. Based on the results obtained, an effective marketing strategy can be created, and advertising costs can be optimised.
Methodology principles
The Customer Development Algorithm relies on several key principles for effective product testing:
- Consumer dominance.
- Every hypothesis must stand the test before launching into the market.
- The effectiveness of CustDev depends on obtaining honest and objective product evaluations.
- The methodology is purely research-oriented and should not be used for promotional purposes.
- The results of the research should only serve to improve the product.
Customer Development is a good way to test the viability of a business idea before it goes into production. The testing process can also identify product flaws and improve the product in a timely manner.
Approaches
The key method of the approach is the in-depth interview. In the process of live dialogue with the consumer, it is possible to find out their attitude towards the product. The interview takes place in a free form but with a list of questions prepared in advance.
Other important tools are surveys, tests and questionnaires. These methods allow collecting data from a larger number of respondents and do not require their direct presence. Surveys provide an opportunity to assess the general preferences and attitudes of the audience. However, they do not always provide an in-depth analysis of the product’s pros and cons. In such cases, the use of extensive interviews is more effective.
UI/UX testing is also part of Customer Development. They help evaluate the interface’s usability in order to improve the user experience.
A Customer Journey Map (CJM) provides an opportunity to analyse each stage of the customer’s interaction with the product. It helps to identify problem areas.
Customer Development is widely used in companies that create products and communicate directly with consumers. Specialists can apply this approach an unlimited number of times until the project reaches the required level of perfection.
