Learn how to use market analysis to add new features to your existing product that will solve customer problems and create customer delight in six steps.

One of the most common pitfalls in data analysis is to dive into the data without first defining the analysis's scope. Imagine this: You have a tons of data available, but without clear research questions and hypotheses to test, you're like a ship without a map in a vast sea. To avoid this, always start by defining your research questions and hypotheses. By doing this, you give your analysis a purpose and ensure that the insights gained are relevant and actionable.

How can you use market analysis to add new features to an existing product?

Market analysis is a vital tool for product R&D, especially when you want to add new features to an existing product. By understanding the needs, preferences, and behaviors of your target customers, you can identify gaps and opportunities in the market and design features that solve their problems and delight them. In this article, we will show you how to use market analysis to add new features to an existing product in six steps.

1 Define your objectives

The first step is to define your objectives for adding new features to your product. What are the goals and outcomes you want to achieve? How will you measure success? How will the new features align with your product vision and strategy? Having clear and specific objectives will help you focus your market analysis and prioritize your feature ideas.

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2 Conduct market research

The next step is to conduct market research to gather data and insights about your target market. You can use various methods and sources, such as surveys, interviews, focus groups, online reviews, competitor analysis, industry reports, and social media. The key is to ask relevant and open-ended questions that reveal the needs, preferences, pain points, expectations, and satisfaction levels of your potential and existing customers.

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3 Analyze market data

The third step is to analyze the market data you collected and look for patterns, trends, and gaps. You can use tools like SWOT analysis, Porter's five forces, and value proposition canvas to help you organize and interpret the data. The aim is to identify the strengths and weaknesses of your product, the opportunities and threats in the market, and the value proposition and customer segments you want to target.

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André Antunes

Director of Base Management and Retention | Marketing and Customer Value Management Expert | Harvard Executive Program Graduate
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One of the most common pitfalls in data analysis is to dive into the data without first defining the analysis's scope. Imagine this: You have a tons of data available, but without clear research questions and hypotheses to test, you're like a ship without a map in a vast sea. To avoid this, always start by defining your research questions and hypotheses. By doing this, you give your analysis a purpose and ensure that the insights gained are relevant and actionable.

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4 Generate feature ideas

The fourth step is to generate feature ideas based on the market analysis. You can use techniques like brainstorming, mind mapping, and SCAMPER to help you generate as many ideas as possible. The idea is to think of ways to improve your product, solve customer problems, meet customer needs, and create customer delight. You can also involve your customers, stakeholders, and team members in the ideation process.

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5 Evaluate feature ideas

The fifth step is to evaluate the feature ideas you generated and select the most promising ones. You can use criteria like feasibility, desirability, viability, and alignment with your objectives to help you rank and filter the ideas. You can also use tools like feature prioritization matrix, Kano model, and MoSCoW method to help you compare and contrast the ideas. The goal is to choose the features that will deliver the most value to your customers and your business.

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Usman Butt

Product Manager | Product Merketing Manager | Digital Marketing Manager | B2B, B2C, SaaS, eCommerce & CRM
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Explain the concept of the Minimum Viable Product (MVP) and how it can help test feature ideas quickly and efficiently. Stress the need to involve cross-functional teams and get diverse perspectives to ensure a well-rounded evaluation, as breakthrough ideas often come from unexpected sources.

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6 Validate feature ideas

The final step is to validate the feature ideas you selected and test them with your customers. You can use methods like prototyping, MVP, and user testing to help you create and test the features in a fast and iterative way. The purpose is to collect feedback and data from your customers and measure how well the features meet their needs, expectations, and satisfaction. You can then use the feedback and data to refine and improve the features before launching them.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Promise Gumbo

| Research Consultant |
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Products with the best potential are those that address a real need in the market. While you will likely start with an idea of what product types and/or features will sell, those are assumptions that must be tested against actual consumer needs. Of course, a market analysis would ideally go beyond testing just the functional elements of the product to competitor and pricing analysis etc.

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How can you use market analysis to add new features to an existing product?

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1 Define your objectives

2 Conduct market research

3 Analyze market data

4 Generate feature ideas

5 Evaluate feature ideas

6 Validate feature ideas

7 Here’s what else to consider

Product R&D

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How can you use market analysis to add new features to an existing product?

1

2

3

4

5

6

7

1 Define your objectives

2 Conduct market research

3 Analyze market data

4 Generate feature ideas

5 Evaluate feature ideas

6 Validate feature ideas

7 Here’s what else to consider

Product R&D

Rate this article

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