Product Discovery is the fundamental process in ideating your Tech Idea. Product Discovery helps you identify various hidden factors which could be costly in the later stage of your Tech Idea development. In layman’s terms, it is understanding the oceans before you plan to start building your ship.
Reasons for practicing Product Discovery:
Models your Idea into a Market fit Product
Saves time, effort, cost pivoting, and resources in the Development
Identify the Revenue and Profitability in the long term.
1. Models your Idea into a Market-fit Product
“Ideas are the beginning point of all fortunes.”
Quite perfectly defined by Napoleon Hill, author of “Think and Grow Rich”.
But he also craftily concealed a noticeable fact that Ideas alone cannot bring you fortunes, they are just initiations.
Your idea should be able to generate a product that should be validated by its consumers to earn you the fortunes you desire.
So, for an idea to do wonders, it should not only sound great in your mind but in the minds of your consumers as well. Because that makes your idea a market-fit product.
You may have an endless list of features to be built, but Product Discovery helps you identify the best ones required for your MVP (Minimum Viable Product). Competition analysis, Product USP, building something lean requires a lot of brainstorming and experience.
Unfortunately, you cannot do it alone as it is impossible for you to find the problem in your own Tech Idea. Choosing the right technology has its advantages & challenges as well in making your Tech Idea sustainable and expandable.
2. Provides Customer Validation
Let’s just be clear of the fact that it’s not a project you are planning to work on, it’s rather a product that will lay the foundations of a substantial company (probably Unicorn) in the future.
That being said, there are usually 4 questions that consumers or users ask before using your product.
- What problem/pain area it solves?
The fundamental of any product idea which appeals to the customers
- Is it something necessary to have or fun to have?
This fundamental ensures prolonged and regular usage of your product by the customers.
- Does it save me time, money, or energy?
The benefits come in handy when your customers use your product.
- How better it is from other competitors (if any)?
The uniqueness factor of your product amidst all its available variants.
These questions when answered promises mass acceptability of the product by your customers.
3. Helps in Customer Segmentation
Not everyone will be your customer when you launch your Tech Idea (mobile/web application). Before fabricating your Tech Idea, you are required to perform exhaustive research on the demographics and determine details about your users:
- Age Group
- Income and Occupation
- Culture and Religion
- Family Structure
Customer Segmentation is an integral part of Product Discovery which helps you target customers accurately according to the application requirements.
As your app development partner, PAYGAPPS can help you determine the right category of initial users for your tech idea, before development.
4. Saves time, effort, and resources in the Development
You can save a substantial amount of time, effort, cost, and resources if you have availed the benefit of Product Discovery before diving deep into development.
Entrepreneurs tend to spend extensive time on non-crucial features of their application just to validate their investment. This tendency is termed as ‘Sunk Cost Fallacy ’.
Sunk Cost Fallacy is a general tendency for people to continue pursuing an option (in here a particular feature of the application) if they’ve invested time, money,s or some resource in it.
Most of the new entrepreneurs tend to fall into such traps because of their non-acceptance of the fact that their crucial idea turned out to be trash.
As your app developer agency, PAYGAPPS can prevent you from getting into such traps beforehand through various methods by deducing that an idea or feature is worth pursuing or not.
5. Identify Revenue Streams and Profitability in the Long Run
Developing a Tech Idea (mobile/web application), requires time, effort, and particularly money that needs to be invested.
You are not planning to get an Idea developed for fun, you are doing it to solve a problem and align your growth with company growth. It is vital to understand and look for potential revenue streams and profitability of your Tech Idea. The early you identify the potential of your Tech Idea, the easier budgeting, fundraising, and expansion becomes.
Determining Concrete Revenue Streams and Profitability is important because of the following reasons:
- Budgeting & Forecasting
- Develop strong Business Alliances
- Expansion and Growth
- Integrating right technology
It is clear that Product Discovery is crucial and important before you spend any time, energy, or cost on development. We at PAYG Apps provide Product Discovery Services to help you plan better and create a blueprint of your Tech Idea. You can set up a FREE consultation call with our Business Advisor “Sara Jones” to discuss how we can help you spend less on your Tech Idea (mobile/web application).