What is the value of product discovery in retail? What is the impact on retailers? Check out and read in this section. To start, let us learn the meaning of product discovery.
The Meaning of Product Discovery
Product discovery is the process of discovering what consumers need, want, and might enjoy. This is done through research and testing. It includes the “E” of the MAPS approach to product management, which is “evaluate.” This is the step in product management where you measure how well your product is meeting customer needs.
Product discovery can be divided into two broad types, namely, qualitative research and quantitative research.
Qualitative research approaches are used to learn about people’s perceptions, attitudes, beliefs, motivations, and opinions. Quantitative research approaches are used to measure things that can be counted or measured. It measures people’s actual behaviors.
The key difference between the two types of research is that qualitative research focuses on groups while quantitative research focuses on individuals.
Product discovery also has two other parts to it—it’s a discovery process and a continuous cycle. Product discovery is an ongoing way of learning more about your customers so that you can improve your products over time.
Once you understand how customers react to initial ideas or prototypes in these early tests, you can then make adjustments to your plans based on the results. Especially before launching the final product into your market for widespread distribution.
The Value of Product Discovery in Retail
There is a significant value of product discovery in retail. Because consumers and product developers can learn a lot by conducting these activities. Both product developers and retailers must be able to quickly and easily identify products that consumers will want to buy. By doing so, they can optimize their efforts and resources, saving time, money, and effort.
The results of product discovery activities can be used as the foundation for effective marketing campaigns. This ultimately leads to increases in sales, revenue, profits, and overall brand value.
Besides that, product discovery activities can also help to:
a) Build and strengthen relationships with consumers
Product discovery activities can help retailers and product developers to build and strengthen relationships with consumers. By conducting these activities, they can gain a better understanding of customer needs, perspectives, and preferences.
By doing so, they can better match their products to customer needs. On the other hand, when customers understand how products are developed and tested, this will help them feel more confident in the quality of the products that they purchase.
b) Improve products
The results of product discovery activities can be used by retailers and product developers to improve the quality of their products. They can use these results to make adjustments in product design and marketing campaigns. When they do so, they can create products that are more likely to meet their customers’ needs. And when they do that, these customers are more likely to be satisfied with their products.
c) Optimise marketing efforts
Product discovery activities are essential in the process of making sure that marketing efforts meet customer needs. Whether it is through advertising, promotions, or PR activities, these efforts need to take into account the needs and preferences of the target market. By doing so, these efforts will be more effective and efficient.
d) Increase sales and profits
As a result of a better understanding of customer needs, product developers can create products that meet those needs better than products from competitors. This leads to increased sales and profits.