User Research through Category Design Lens
In the fast-paced tech industry, a pervasive belief is that success hinges on creating superior products in terms of speed, cost, efficiency, or innovation. This notion has led many startups to concentrate their user research efforts on benchmarking against current market offerings, assuming that incremental improvements in these areas are the keys to winning over customers.?
However, this approach needs to pay more attention to the strategic leverage of category design, which can redefine markets and create unparalleled opportunities for growth.
Let's have a look at some examples
Apple
Apple redefined the category with the Macintosh in 1984.?
By focusing on user-friendly design and graphical user interface, Apple conducted user research beyond comparing specs with competitors, aiming instead to create a new category of personal computing accessible to everyone.
Netflix?
Netflix transformed from a DVD rental service to a streaming giant not by incrementally improving its mail-order service but by foreseeing and creating a new category of entertainment consumption. Their strategic pivot to streaming services was underpinned by user research that identified a shift in how people wanted to access and watch content, leading to the dominance of the streaming video category.
Tesla?
Tesla Motors didn't aim to make a slightly better electric vehicle (EV). It set out to revolutionize the automotive industry by making EVs desirable. Through user research that looked beyond the limitations of existing electric vehicles, Tesla identified and then created a new category of high-performance, luxurious electric cars, fundamentally changing the automotive landscape.
The Fault in the Common Belief
The flaw in the commonly held belief about product superiority lies in its narrow focus. It confines companies within the bounds of existing categories, limiting their potential for impact and growth. True innovation and market leadership arise from creating and defining new categories, as evidenced by companies that have shifted the paradigm in their industries.
Research in "Play Bigger" highlights that companies creating new categories capture between 70% and 80% of the market.?
Integrating strategic category design into user research opens doors to insights that not only address unmet needs but also carve out new markets.
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Shifting from "Old" to "New"
Expand Your Research Vision
Move beyond direct comparisons with competitors. Investigate emerging trends, latent customer needs, and broader societal shifts that could herald the formation of new categories.
Embrace a Category-Creation Mindset
Encourage your team to see beyond product development to category innovation. This broader perspective can reveal opportunities to lead and define new markets.
Utilize the Category Design Framework
Apply category design principles, such as establishing a disruptive Point of View (POV) that challenges existing market assumptions and sets the stage for a new category.
Why the "Old" is Going Away
The conventional approach to user research is becoming obsolete due to the rapid evolution of technology and consumer preferences.?
The tech giants of tomorrow will be those who did not simply improve existing solutions but who envisioned and executed on creating entirely new categories.
The Future of User Research and Category Design
The merger of strategic category design with user research is setting the new standard for success in the tech industry. This approach meets the present market demand and anticipates and shapes future trends, securing a place for innovators at the forefront of their industries.?
As startups adopt this forward-thinking strategy, they pave their way to market leadership, capturing significant value and redefining the competitive landscape.