Wants vs . Needs , It Makes a Difference to Your Bottom Line
By Cynthia Rando , Sophic Synergistics , LLC cynthiarando @ sophicsynergistics . com
For every business , an important goal for success is to achieve high consumer / user satisfaction . To achieve high consumer / user satisfaction you must adequately understand what people need and how people use your product or service . One of the best ways to understand what people need and how people will use a product or service is to ask them directly and observe how they interact with your goods or services . This practice is known as user research / testing , it is one of the most effective methods to boost user acceptance , customer satisfaction , growth , and profitability .
Unfortunately , user research / testing is often confused with market research causing many companies to miss consumer opportunities and innovations . Market research focuses on data collection that determines whether or not your product or service has a potential customer base . Market research will help your firm gather useful information about consumer spending habits , demographics , economic shifts , market trends , and your competitors . Both market research and user research / testing are critical pieces of the puzzle , but it is important to understand when to use each method . Having an adequate understanding of how the two methodologies work together throughout your product ’ s lifecycle will allow you to work more effectively with your product development and marketing teams to grow your business .
What Comes First , The Chicken or The Egg ? Market research is typically the first step in the product development life cycle . The process uses both qualitative and quantitative methods to identify what people might want to buy and how they might use a product or service . Placing significant weight on what people say rather than what people actually do or need .
Once you ’ ve determined that there is a potential market for a particular product or service user research / testing is the next step . Similarly , user research / testing utilizes both qualitative and quantitative methods . However , user research / testing does not focus on the market , demographics , trends or what people say they will buy . Instead , emphasis is placed on the individual users and what they need vs . what they might want and how they will interact with a product or service . User research / testing is much more specific and dives deeper into human interaction , behavior and ultimately the user experience . It is a valuable practice that provides organizations with direction about how solutions should be designed to meet the needs of users , resolve usability issues , and fulfill the need for new products and services .
To summarize , market research is best used in the beginning stages of product concept development to determine : is there a market , what the market size is , what are the trends and relevant price points , and who the competition is . Once these questions have been answered , user research / testing is the next step to acquiring a deeper understanding of our consumers , their needs and how they will interact with products or services . The information gained about consumer needs often leads to significant cost savings , improved user acceptance and experience outcomes , and solve unmet needs . All of which helps your business diversify , capture new markets , increase ROI and develop market innovations .