Back of the Envelope Market Validation using Goole Trends
22 July, 2015 |
Far too many businesses come up with an idea for a new product or service and just go for it. By the time they realise the market they thought there was doesn't exist, they've already blown six figures on product development (ouch).
Market validation is the process of understanding what the market actually wants (and that a market actually exists!) BEFORE investing in product development. If you're like me, you have ideas for new offerings all the time. But often because of our industry experience and knowledge we're too close to the trees to see the forest; we either miss coming market trends or make assumptions about trends that aren't there.
Google has an incredibly valuable tool that can quickly give you a valuable first indication as to whether you should undertake formal market validation for a new venture, product or service idea. Google Trends analyses a keyword's popularity in relation to all search volume on a local, national or global level. It also predicts whether this term is likely to be more or less popular going forward.
Think of the top 5 search terms someone would use to look for your new product or service idea and type them into Google Trends. Are they going up, down, sideways or is there no search at all? Although just a first step, this can tell you a lot about what a market is doing and whether a market exists in the first place.