Why focus groups can be critical when launching a new product

I had the opportunity to run a number of focus groups recently. This was for a financial services technology company (FinTech), whom we are helping to design the UI/UX experience as well as better understand the product needs for their technology platform.

Focus groups are a great method to obtain first-hand insight into the true opinion of (potential) customers on a product or service. Effectively, putting a number of target customers in a room with a moderator to answer a series of consumer-behaviour related questions. The participants are encouraged to discuss each other’s answers so the researcher can have a deeper look into the psychology of it all. A free-flowing discussion brings out aspects of customers’ mindsets even they might not be consciously aware of.

Focus groups are about pure research. It’s only afterwards that you decide what to do with the data collected.

Based on my experience, I can say that not enough companies actually take the time and effort to invest in conducting proper market research before going to market with a new product or service or making significant changes to an existing one.

Market research, and more specifically focus groups, helps you find fundamental faults in your product or services. It gives insight into whether the customers feel your brand lives up to its vision and mission statement. You have real-world insight into what you can do to improve the product for a customer.

It also fosters creativity among the respondents. Sometimes, the solution to an issue with a product you’re looking for can occur while participants are discussing what would have made them like the product if certain things were different.

You get a look into the steps that led a customer to buy a product. New ideas are presented during the discussion, as customers gain insight into not only themselves but also into their peers. Focus groups are also a good way to challenge long-held beliefs and find out if some customer myths were true at all.

If you want to read more about focus groups, when you should have one, how they work and what the key benefits are, you can read our blog article: https://www.cmocre8.com/post/how-focus-groups-can-benefit-your-market-research