Hunches to Insights
Market Research That Focuses on Customer Benefits
I wanted to expand on the second question that every founder needs to ask themselves ( for other question(s) in this series please subscribe to my blog.)
The question from my book is:
Have I conducted market research that focuses on the benefits sought by my target audience? Founders often work on a hunch, they have come across someone in the past who indicated a problem, or they themselves have been in an industry long enough to assume that a problem exists. The problems should be sharp and crisply defined, otherwise it is very hard to penetrate a well-established market.
Let’s dig in to expand on it:
Many founders begin with a hunch ( Not all - which is fair, as if Henry Ford had asked people they would have suggested faster horses. Bounded rationality cannot comprehend what is possible, it is usually happy with what is probable). Maybe they’ve encountered a problem through personal experience or had a conversation with someone ( or themselves) who mentioned a gap in the market. These early insights can spark an idea, but they often lead founders to make assumptions about their audience’s needs.
Steve Blank suggests, “No facts exist inside the building, so get outside.” To succeed, you must move beyond hunches and conduct market research that sharpens your understanding of the benefits your target audience seeks.
You must step outside your comfort zone into the comfort zone of your customers.
The Danger of Assumptions
Founders often enter a market believing they already understand the problem. Trust me because, like many others, I have done so.
Perhaps they’ve worked in the industry long enough to assume they know what’s needed, or they’ve heard vague mentions of issues during conversations. While this can be a good starting point, it’s not enough. Assumptions can lead to building solutions that miss the mark, offering features no one asked for, or solving problems that aren’t pressing.
So by building the solution that is ready to deploy, identifying who has the problem becomes a problem by itself.
In a well-established market, the problems you aim to solve need to be sharp and crisply defined. Customers in these markets are already being served by existing players, so unless your solution addresses a specific and well-understood need, it’s unlikely to gain traction.
Good traction is a precursor to good revenue.
Why Benefit-Focused Market Research Matters
Market research bridges your assumptions and the reality of your target audience’s needs. It’s essential to focus on the benefits your audience seeks, rather than the features your product offers.
Features answer what your product does; benefits answer how it adds value to the customer’s life.
The subtle but crucial shift from thinking about features to focusing on benefits ensures that your product is more than a technical solution—it’s something that resonates with your audience on a personal level. This focus is what will help you penetrate the most saturated markets.
Moving Beyond the Hunch:
Steps to Conduct Benefit-Focused Market Research
Here’s how you can move from working on a hunch to truly understanding the benefits your target audience is seeking.
1. Start with Clear Problem Identification
Before diving into research, ensure that the problem your product solves is clearly defined. Vague problems lead to vague solutions.
Ask yourself:
Is the problem well-known in the market? A nice to have will not cut it.
How do potential customers describe this problem?
Is the problem urgent and painful enough to compel customers to seek a solution?
This is the first step in narrowing your focus. A well-defined problem is the foundation for understanding what benefits your audience is truly seeking.
Actionable Step: Talk to at least five ( twenty will be ideal) people who experience this problem regularly. Ask them how they describe it and how it affects their work or life. Their language will help you sharpen your problem statement.
2. Explore Your Audience’s Current Solutions
Once you’ve identified a clear problem, explore how your target audience is currently solving it. Often, customers are using alternative solutions, even if they’re inefficient or incomplete.
What are your potential customers doing today to solve the problem?
What do they like and dislike about the current options available?
Where are the gaps in the existing solutions?
This information will help you understand the problem and the desired outcome. In other words, it reveals what your audience values most—the benefits they want but aren’t getting.
Actionable Step: Conduct interviews or surveys with potential customers to ask about their current solutions. Focus on uncovering the pain points they experience with these solutions and the specific benefits they wish they had.
3. Identify the Benefits Your Audience Cares About
Not all benefits are created equal. Some may sound good but don’t resonate deeply with your audience. Identify the benefits that are most important to them. This is where you move from assumptions to validated insights.
What benefits do customers explicitly say they want?
What outcomes do they value the most?
How do these benefits align with their personal or professional goals?
For example, a customer might say they want “better software,” but what they really value is “software that saves me time and reduces errors.” The difference is subtle but crucial. The latter speaks to a specific benefit—efficiency—which is likely to resonate more deeply.
Actionable Step: After collecting data, analyse the patterns. Group your findings by recurring benefits customers mention. Rank them by importance and frequency. This will give you a clear picture of the benefits that matter most to your target audience. If your findings are inconclusive you can ask more people.
4. Test Your Hypotheses Through Prototypes or MVPs
Once you’ve identified the benefits that matter, it’s time to test them. A Minimum Viable Product (MVP) or prototype can help you validate whether your solution effectively delivers the benefits your customers are seeking. Think in terms of a rubber band and a duct tape solution to start with before you start pivoting and start making a comprehensive solution.
Does the MVP solve the clearly defined problem?
Does it deliver the benefits customers want?
How do customers react to your product?
Testing your assumptions is crucial it allows you to move beyond surface-level wants and validate what works.
Actionable Step: Build a simple version of your product that focuses on delivering the core benefits you’ve identified. Offer it to a select group of customers and gather feedback on whether it meets their needs. Iterate based on their input.
5. Refine Your Messaging Based on Research
Once you’ve confirmed that your product delivers the benefits customers seek, it’s time to refine your messaging. Too often, startups focus on talking about features rather than benefits. But as you’ve learned from your research, it’s the benefits that resonate with your audience.
How can you communicate the benefits clearly and concisely?
What language do your customers use to describe the problem and its solution?
By speaking in your customers’ language and focusing on benefits, your marketing and sales efforts will be much more effective.
Linguistic context may contort the meaning and desirability of what you have to offer.
Actionable Step: Use the insights from your interviews, surveys, and product tests to craft messaging that highlights the top benefits your product provides. Test this messaging in your marketing campaigns and adjust as needed based on customer feedback.
Crisp, Clear, Consise, and Captivating
Conducting market research that focuses on benefits rather than assumptions is essential to startup success. Founders often begin with a hunch, but it’s the sharp, clearly defined problems and benefits that allow you to cut through the noise in competitive markets.
As you build your product, remember that assumptions are a starting point, not a strategy. By listening to your customers and focusing on the benefits that matter most, you’ll create a solution that doesn’t just exist in the market—but thrives in it.
Get out, the market is outside.
This topic is an expanded article from my book THE ‘BENEFIT’ BLUEPRINT FOR STARTUP SUCCESS Chapter 3, Question 2.
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© Sameer Babbar
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Disclaimer: This is for information only. It does not take into account your objectives, financial situation, or needs. The author, his company, his associates, his directors, his staff, his consultants, and his advisors do not accept liability for any loss or damage, including, without limitation, any loss that may arise directly or indirectly from the use of or reliance on the information provided