How do you match market validation to business goals?

1 Define your problem and solution

The first step in market validation is to clearly define the problem you are trying to solve and the solution you are offering. This will help you identify your target market, value proposition, and unique selling point. You can use tools like the lean canvas or the problem-solution fit canvas to map out your assumptions and hypotheses about your problem and solution. You should also research your competitors and existing alternatives to understand how your product differs from them and what gaps or opportunities you can exploit.

3 Set your validation criteria

The third step is to set your validation criteria, which are the metrics and indicators that will tell you whether your product idea is viable or not. You should define your validation criteria before you start your validation experiments, so that you can measure and compare your results objectively. Your validation criteria should be specific, measurable, achievable, relevant, and time-bound (SMART). They should also be aligned with your business goals, such as revenue, growth, retention, engagement, etc. You can use tools like the lean metrics or the pirate metrics to track and analyze your validation criteria.

4 Run your validation experiments

The fourth step is to run your validation experiments, which are the actions and tests that will expose your product idea to your target market and users. You should run your validation experiments in a systematic and iterative way, following the build-measure-learn loop. You should also document and record your validation experiments, so that you can review and learn from them later. You can use tools like the experiment report or the learning card to summarize and communicate your validation experiments.

5 Evaluate your validation results

The fifth step is to evaluate your validation results, which are the feedback and data that you collected from your validation experiments. You should evaluate your validation results against your validation criteria, to see if you met or exceeded them. You should also look for patterns, insights, and surprises that can help you understand your market and users better. You can use tools like the feedback grid or the insight statement to organize and interpret your validation results.

6 Pivot or persevere

The sixth and final step is to decide whether to pivot or persevere with your product idea, based on your validation results. If you validated your problem and solution, and met or exceeded your validation criteria, you can persevere and move on to the next stage of product development. If you invalidated your problem and solution, or failed to meet your validation criteria, you can pivot and change your product direction or strategy. You can use tools like the pivot or persevere canvas or the pivot checklist to guide your decision and action.

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?