How to Validate Your Digital Product Idea

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How to validate your digital product idea to
ensure 100 market acceptance?
How to Validate Your Digital Product Idea to
Ensure 100 Market Acceptance
Table of contents
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How is AI used in MVP to validate a product
idea? The ways of validating digital product
ideas Define user personas
Market size estimation
Users willingness to pay
Scope of entry
Table of contents
Cost effectiveness
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What are the common challenges you come across
during a product idea validation? How does
Simublade help entrepreneurs with digital product
idea validation? FAQs
Reading Time 9 minutes
There are two types of entrepreneurs. Ones who go
all in with a product idea they believe in, cross
their fingers and hope for the best. The second
who runs a thorough market research to ideate,
plan, build, and only then deploy a digital
product. Now the probability of the
first category entrepreneurs to succeed, while
there, is extremely luck based. On the other
hand, the second category entrepreneurs have
greater chances of success owing to the
efforts they have put in the homework. But how do
you transition from being category
one entrepreneur to category two? The answer to
this is validating the digital product idea.
Heres a little sneak peak into why it is
important? According to a recent find by
Businessofapps, the cost of developing a medium
complexity app is between 32K to 48K
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and the number of applications in the stores has
grown to 2.18 million in App Store plus
2.65 million on the Play Store. This combination
has created a situation where one wrong
decision can fail your app when you launch it in
the overcrowded app stores.
So, digital product validation comes as an ideal
solution to addressing this situation. However,
know that innovation is fully achievable without
risks.
What is digital product idea validation?
This means testing the performance,
functionality, and market suitability of a
product. It is further crucial to check how many
products, similar to the one you want to launch,
are out there and performing well in the market.
An absence of these stages can have a dire
impact on your business success. The latest data
from the Bureau of Labor Statistics found that 1
out of 4 businesses fail during the first year of
operation.
While we are not going into details behind the
figure, it is a known fact that a failed
digital product has the power to derail a
business. So, one of the ways to de-risk your
business and
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protect your capital investment is product idea
validation via an MVP. Let us explain.
Even when you build a market research backed
digital solution, its
A Simple Breakdown
success would depend on how effectively you
answer these four questions before building
an MVP
Do enough people want it?
Are those people willing to pay for it? Does the
app have a unique value proposition? Can they
find your digital product easily?
Let us look into the ways you can get answers to
these questions by looking into how to create an
MVP and then the digital product validation
process.
The role of MVP in digital product idea validation
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An MVP or minimum viable product is a strategy of
validating digital product ideas. Quick solutions
are created on a small budget and least time with
just enough features. It is then launched and
used as a tool to assess functionality and market
viability. This way, entrepreneurs do not have to
just depend on a hazy idea to make better
decisions. Heres how an MVP is built.
An MVP is perfect to understand how innovative
your digital product Steps to Build an MVP
would be. It is further refined with real-world
feedback from early adopters. This
tangible demonstration of market demand lowers
the risks of failure and prevents the loss of
big capital investment.
The basic steps to create an MVP includes
determining the following the target issue,
the target audience, initial features, design and
prototype, and finally testing the MVP
before releasing it before the public. Post this,
entrepreneurs and product developers together
have to monitor and analyze the product to make
the necessary changes
How is AI used in MVP to validate a product idea?
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Using AI in MVP means better quality, quantity,
and relevance of your data. This is a way
to improve the effectiveness of your initial
product to a great extent. Artificial
intelligence combined with machine learning also
helps entrepreneurs predict user needs and
refine product features. This is done by complex
data learning and model training. Altogether,
a data-driven approach makes your MVP more
user-focused.
At Simublade, we are a software development
company that creates well-
How AI Works
strategized artificial intelligence solutions.
Learn about our AI services to understand how we
put your idea under the technology and market
viability microscope for an efficient MVP.
The ways of validating digital product ideas
On papers, validating an app idea is fairly
straightforward. You look into the competition,
talk to your prospective user base, and run
technical feasibility tests to get a clarity on
whether your digital product will be accepted. In
reality, it is a multi-phases process. And, this
process is of utmost importance. Statistics say
that the lack of idea validation for AR and VR
hardware of Meta had once led to a loss of 230
billion. This had significantly dropped the
companys
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public shares by 26.
So, consider understanding and following these
ways to validate your idea for
Contact Us
your digital product to test if there is a market
waiting for it. It is also the first step to
ensure a
successful digital transformation.
Define user personas
One of the sure shot ways to validate a product
idea is to fix the user persona and check if your
app idea would meet their needs. At Simublade, we
identify and combine both demographics and
psychographic information of your prospective
users while building a user persona to validate
your digital product idea. While the demographic
side of a persona consists of information around
age, gender, profession, income, and in some
cases marital status, the psychographic profile
is much more in-depth. In case of psychographic
persona creation, we look into the users goals,
their motivators, pain points, attitudes,
frustrations, and create a rough look into their
day highlighting the instance where they will
use your application.
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Getting user persona right has plenty of benefits
like remembering and relating to your potential
users and making informed choices instead of
assumptions.
Once you have drafted the user persona, the next
step that comes is putting your application in
the center of their life and measuring the scope
of acceptance.
Market size estimation
Would you build an app if there were 1 million
potential customers vs if there were 1,000
users? I am sure you would go for the former. But
how to estimate that approximate number? The best
approach is by looking into the number of people
talking about your idea or product concept
through any keyword research tool.
You can enter the primary keyword, in this case
your app category app in keyword research
tools like Google Keyword Planner or Semrush and
look into its search volume in your selected
region.
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Now, it is one thing to know the current demand
of your applications concept and
completely another to gauge the future demand of
the idea. The solution to this again lies
with performing past data market research through
platforms like Google Trends.
Users willingness to pay
The demand for an application or digital product
is irrelevant for a business if the
sectors audience is not willing to pay for using
it. So how to figure out the highest amount
that customers can spend? For this you have to
really know them. So, conduct surveys to
gather both qualitative and quantitative data. A
few questions to include are
What would you use our product for?
Will you use it individually or as a part of a
team? What would you wish to achieve using our
app? How often would you use our product?
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Further, you can check competitor apps and divide
their total revenues by total downloads. The
resultant number will give you an estimate into
users willingness to pay and the amount they are
comfortable with.
In addition to this, platforms like Sensor Tower
and App Annie also offer services around tracking
revenues earned through in-app purchases. Using
these platforms will give you an idea of what to
expect from your application concept in terms of
revenue.
Scope of entry
A key part of product concept validation is to
know if there is a scope for new apps to
enter the category. Here are a few ways to find a
concrete answer to this question.
Look into the age of the apps active in the
category. If the majority of the category is made
up of old applications, it is a good sign that it
is difficult for a new application to enter the
market since its highly competitive.
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Look into the competitor apps reviews and
ratings. If the users are not enjoying
these apps, chances are, they will be willing to
put in their money and time into new
solutions that address those issues perfectly.
Look at the reliance on advertisements. If the
top applications of your category are investing
heavily on advertisements, you can be rest
assured that you will also have to compete for
that ad space to get your users attention.
Why should you consider digital product idea
validation?
When you validate a product idea, you take
guesswork out of the equation. Below are
the compelling benefits of considering an idea
validation strategy.
Better customer connection
The main idea behind product idea validation is
to figure out if it truly resonates with
your potential customers. When you release an MVP
after proper quality assurance and work on the
feedback, you listen to what your customers want.
This accurately includes their pain
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points and their needs. Implementing what is
important for them is a fantastic way to
build trust and show them that you are a brand
that cares. It also protects you from
creating software that nobody wants. Altogether,
this paves the way for long-term success.
Quicker to market
The MVP development approach is a quick entry to
the marketplace. Entrepreneurs are able to enter,
test, learn, and refine all with minimal effort
instead of sophisticated coding, UI UX designs,
and cybersecurity measures. MVP means to
speed up the process of turning an idea into a
viable product gather the required information,
and
carry on with the later developmental stages.
This offers a competitive advantage since you
gain a strong brand recognition for
delivering great customer value. It is especially
true in case your company is the first one to
introduce a
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new product to the market. Otherwise too,
bringing a product with a unique value
proposition like mindblowing performance and
superior aesthetics than products of fellow
brands can help you leave an indelible mark on
customers minds.
MVP in 12 weeks
Risk management
Traditional methods like a digital product simply
breaking into the market has significant risks.
This includes waste of time and resources that
were invested. Heres proof. Studies have found
that 95 of new products fail since it seems that
entrepreneurs do not know how to launch
successfully. So, what typically goes wrong? By
adding too many functionalities, it gets
difficult to focus on the true purpose of the
software. Therefore, it is ideal to consider an
MVP solution first for product validation early
in the development process.
Cost effectiveness
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Product concept validation with MVP begins with a
minimum set of features. This is ideal
to maximize the invested capital wisely.
Wondering why? Well, the expenses are spread out
over a period of time which acts as a cushion for
your budget. Further, the earnings from this
MVP validation stage can be reinvested to boost
revenue. Overall, product idea validation
ensures low financial commitment to expand the
chances of improvements based on
customer behavior and demands. It is also easier
to experiment first to understand where to put
the resources and money to achieve the best
results.
Otherwise, a mature product involves detailed
development and years of slogging with a price
tag that matches the time and effort.
What are the common challenges you come across
during a product idea validation?
The first and foremost challenge of a digital
product idea validation is figuring out if it
is solving a real-world problem. Next, one might
find it difficult to encourage the adoption of
the MVP to test the market viability. Further,
getting the accurate response from early users
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could be a bottleneck in the process. Lastly, the
required tools and techniques for the validation
stage might not be accessible.
The one-stop solution to this is outsourcing MVP
creation to experts at Simublade. We wipe out the
fear of zero market acceptance by using robust
and scalable tech-stacks. It includes back-end,
front-end, mobile, database, and infrastructure.
The process we follow includes design, prototype,
development, testing, and market analysis. The
cost of building an MVP will be anywhere between
20K and 50K.
How does Simublade help entrepreneurs with
digital product idea validation?
In our role as a digital product design company,
we have helped a number of startups,
across industries, solidify their digital product
concept at the back of a detailed market and
technical feasibility check. The way we do that
is through our extensive discovery workshop
session which involves implementation planning,
goals understanding, target market study,
product ideation, priority-based feature
finalization, and user flow diagram.
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All of these forms a critical part of our digital
product development process. In this
phase, experts at our software development
company run a competitive and market analysis on
your application. This helps to ensure that your
USPs are clearly defined plus accepted in
the digital space. Additionally, we involve real
users in the process to check that the concept
you are planning to build is aligned with their
goals and motivations.
Our research and business analysis teams work
with you on establishing market validation and
our tech team monitors the solutions technical
readiness on platforms you are planning to launch
the solution on. Lastly, they ensure that the
feature and functionalities you are planning to
add are actually buildable.
FAQs
Q. What is product idea validation?
Ans. Digital product ideal validation is an
approach to test the market viability of a
product.
This requires a basic framework with just enough
features, aesthetics, and coding to check
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user adoption extent. Simublade is a software
development company that helps you achieve
it with MVP design and development before a
full-fledged launch.
Q. What are the 4 steps for idea validation?
Ans. 4 steps to validate your digital product
idea market research for user persona, create a
product prototype, create a landing page for
users, and collect feedback to improve.
Q. Why should you validate your digital product?
Ans. Product validation is necessary to
understand whether a digital product will survive
and thrive in the market. Entrepreneurs also get
an idea on the existing gaps in the product
and the areas of improvement. A standard digital
product design agency can help you achieve the
same by creating an MVP with product USPs to test
the waters.
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