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Minimum Viable Product (MVP)

What are the basic types of market search for your MVP

Natalie Sokolova

Natalie Sokolova, communications expert

Sep 23, 2024

12 minutes

Contents
By 2024, global companies will invest over $140 billion in market research, providing the most robust case for researching to meet your startup’s future success. Market research is like the compass guiding you through unfamiliar terrain when growing a business, especially in those fragile pre-seed stages of your startup’s MVP (minimum value product) development.
Beginners run into problems as soon as they start choosing between the types of market research they want to conduct. Even when preparing the brief to outsource to a research agency, you need to understand which method is appropriate for a particular stage of development. Let's give a short overview of their objectives, differences, the tools they use, and the results you can get.

What are the types of Market Research?

At the heart of every research is an object – a parameter we want to study and about which we make a hypothesis. We’ve already discussed its importance in the article on conducting market research. That is why we classify studies differently according to their characteristics, methods of solving the set tasks, the sphere of application of the research results, types of the studied object and other factors.
There are eight types of market research in product development:
1
Primary research involves collecting first-hand data directly from potential customers. You get unique insights tailored to your business. Startups should use surveys, interviews, and focus groups to test new product concepts, gauge interest, and get honest feedback. When doing this, ask straightforward, open-ended questions and test early prototypes with real users to gather actionable feedback.

⌚ Duration: 4-12 weeks (time depends on data collection methods like surveys or interviews).
2
Secondary research collects data, including research reports, competitor analyses, and industry studies. It is excellent for understanding the broader market landscape before diving deeper into specifics. It relies on government reports, trade publications, and online databases. This type is cost-effective but might lack the specificity you need, so pair it with primary research when possible.

⌚ Duration: 1-4 weeks (faster due to available data).
3
Qualitative Research explores the "why" behind behaviours – focusing on thoughts, feelings, and motivations rather than numbers. It is ideal for discovering customer needs or frustrations in the early MVP phase. Qualitative research using one-on-one interviews, focus groups, and observational studies are standard methods. Let participants express opinions freely and probe their emotional drivers to uncover hidden insights.

⌚ Duration: 4-8 weeks (focus groups or interviews can extend timelines).
4
Quantitative research gathers measurable, numerical data to analyse market patterns and preferences. It's a problem before committing resources to an MVP. Conduct large-scale surveys, online polls, or data analyses from analytics tools. Make sure you have a statistically significant sample size to ensure reliability.

⌚ Duration: 6-12 weeks (depends on sample size and analysis).
5
Branding Research focuses on how people perceive your startup or product and its overall positioning in the market. Critical when establishing a new brand or rebranding. It helps shape brand identity, voice, and visual elements that resonate with your audience. Conduct brand perception surveys, use social listening tools, or analyse customer feedback on branding elements. Track how customers perceive your brand compared to competitors.

⌚ Duration: 4-8 weeks.
6
Customer Research involves understanding customers' behaviours, needs, and purchasing motivations. Building user personas is critical during product development, and creating a marketing strategy is essential. Customer research uses tools like customer surveys, interviews, and behaviour tracking to capture insights about demographics, preferences, and pain points. Regularly update this data to keep in sync with your audience.

⌚ Duration: 2-8 weeks.
7
Competitor Research analyses competitors’ products, strategies, strengths, and weaknesses to identify opportunities and threats for your business. It helps you differentiate your product in the marketplace, spot gaps, or understand industry standards for features. Competitor Research uses SWOT analysis, competitor feature comparisons, and studying customer reviews of competing products. Regularly monitor competitors to stay ahead.

⌚ Duration: 2-6 weeks.
8
Product research focuses on understanding how customers interact with your product, including their expectations and satisfaction. Valuable for refining MVP features and ensuring the product aligns with customer needs and desires. You can conduct product research through beta testing, user feedback sessions, and usability testing. Gather detailed data about what works and needs improvement before scaling the product further.

⌚ Duration: 4-10 weeks.
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Olga V.
Business Manager
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Each type offers its market research methodologies — the tools and ways of gathering information for analysis that will lead to insights and conclusions. As you begin your MVP development journey, we will focus on primary, secondary, qualitative, and quantitative research.

Primary vs. secondary research: which comes first

As entrepreneurs, we see all the information around us as valuable data. Others have already collected some of this data for us; some we must find ourselves. However, in both, we find evidence of the real benefits of our proposed solutions to the product's target audience. Let's look at how this helps with primary and secondary research.

Primary research

Always prioritise primary research early in the MVP process to confirm your assumptions. By gathering firsthand information from potential users, you avoid wasting resources building features that might not resonate.
Primary research is invaluable when building an MVP because it gives you direct insight from your target audience. This fresh data helps you understand customer needs, preferences, and pain points in real time, ensuring that your product directly addresses market demand. There's a familiar mistake startup owners make – relying too heavily on assumptions without validating them through primary research. You may think your product solves a huge problem, but you may miss key pain points or overestimate demand without talking to real users.
That's why, before launching online shoe retailer Zappos, Nick Swinmurn tested demand by posting pictures of shoes from local stores online. If customers ordered, he would buy the shoes from the store and ship them. This approach allowed Zappos to test demand without building a complete e-commerce platform.
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Secondary research

Narrow insights have no value if broader trends do not confirm them. Secondary research provides a more comprehensive market understanding and helps identify trends, potential market size, and competitor strengths or weaknesses without the cost of conducting new research. It's better to start with secondary research to find a niche you can fill and to understand the general market sentiment better. But remember that relying only on up-to-date or relevant data does not lead to misguided strategies.
Let’s provide an example. Most tech teams use Slack for project communication. And this corporate messenger initially relied heavily on secondary research. The founders observed the growing trend of remote work and its communication challenges. Slack identified a simple, integrated communication platform gap by studying market reports and competitor tools. This insight and primary research on team collaboration helped them build a highly successful MVP.
Competitive analysis is the most suitable market research methodin the early stage.

How to combine primary and secondary research

You must keep a target audience's needs distinct from the market trends in which they operate. That's why it's wise to strengthen the MVP-building strategy by linking different types of market research at the appropriate stage. Here is our example of using primary and secondary research to test two hypotheses about the SaaS product we worked with.
The first hypothesis was to confirm that customers often need help managing multiple project management tools. We concluded after reviewing industry reports showing the rise of all-in-one platforms and realising that competitors had yet to offer an integrated solution for mid-sized businesses. The team conducted online surveys to prove their point, asking potential users about their biggest frustrations.
The second hypothesis is dedicated to revealing automation as a tool for growth and improving productivity. Research of broader market trends showed an uptick in demand for automation software. We confirmed this by holding interviews with users who wanted automated workflows.
Want more tips on how to improve your research? Remember to ask for a free consultation
Let’s meet each other online
Olga V.
Business Manager

The objectives of qualitative and quantitative research

For a pre-seed startup, qualitative research is invaluable because it helps you get inside the minds of your potential users. It provides context and depth, allowing you to grasp the nuances of customer needs and pain points. By understanding these, you can design an MVP that addresses real problems meaningfully.

What is Qualitative Research

Qualitative research is close to primary research because it helps you get inside the minds of your potential users. It is exploratory and open-ended, aiming to uncover the deeper motivations, emotions, and attitudes that drive individuals' decisions.
Imagine you're developing an app for remote workers in the UK. Through qualitative research, you might discover that your target audience needs more than just a time management tool. They struggle with isolation and maintaining a work-life balance. These insights guide you to incorporate features in your MVP that address these emotional and psychological needs, such as a community forum or wellness tips.

What is Quantitative Research

Quantitative research, on the other hand, is all about numbers and data. It seeks to quantify behaviours, opinions, and other defined variables through structured methods such as surveys, analytics, and A/B testing. This research provides statistical evidence supporting or refuting your hypothesis, helping you make data-driven decisions.
In MVP development, quantitative research is critical for validating your assumptions based on qualitative findings. It allows you to measure user interest, engagement, and willingness to pay, among other key metrics. This data is essential for determining whether there is a viable market for your product.
Continuing with the remote work app example, after conducting qualitative research and identifying key features, you might survey how many remote workers in the UK would use the app and how much they'd be willing to pay. This data would provide a solid foundation for deciding which features to prioritise in your MVP and how to price your product.
For example, suppose your qualitative research identifies that a few remote workers enjoy using mindfulness exercises within a productivity tool. If you prioritise this feature without quantifying how many potential users would value it, you might over-invest in a feature that doesn't significantly impact your overall market appeal.

What market research methods can you use?

Combining different market research methods validated prospective pain points, allowing us to design features focused on integration and automation for our MVP. Let’s check some of them. You can also book a consultation to learn about other methods and find the right one for your product.
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Surveys

Surveys collect data through structured questions aimed at a large audience (minimum of 100 participants) to quantify opinions and behaviours. For instance, customer feedback from 1,000+ surveys helped a pre-seed startup discover that price, not product features, was their customers' primary concern.
To organise the survey, you should:
  • Define the objectives – the hypothesis you'd like to test;
  • Create the questionnaire – the mix of closed and open questions;
  • Distribute the questionnaire – via emails, social media, publications in the media and blogs, etc;
  • Collect the responses;
  • Analyse the data – use such tools like Google Data Studio, Microsoft Power BI, and SPSS (IBM), and don’t forget about ChatGPT;
  • Transform the findings into insights.

One-on-One interviews

These are in-depth conversations conducted with individuals to gain qualitative insights into their behaviours and attitudes. Compared to a mass survey, an interview is a face-to-face, offline or online meeting. It follows a pre-prepared list of questions. The interview will go better if you:
  • Organise each interview separately and create a comfortable atmosphere for the participant;
  • Limit the time of the interview, for example, to 40 minutes and 1.5 hours. If it takes longer, it is better to divide it into several sessions, each focusing on a different research objective;
  • Group the questions by topic and divide them into blocks;
  • Step back from the questionnaire and ask clarifying questions to understand better the participants' evaluation of the product or feature and their feelings and experiences.

Focus Groups

Involves guided discussions with a small group of target users to gain diverse opinions on your product and identify group trends or dissenting views. All participants get in-depth meetings with the MVP and give honest feedback on its features to reveal emotional insights into customer feelings. Ordinarily, you must organise a discussion with 6-10 people and ask open-ended questions. The duration of the focus group is up to 2-3 hours with a short break.
Nowadays, it's the most demanded market research method. For example, SaaS companies rely on it to redesign their user interfaces after realising that people find them too complex.

Competitive analysis

Competitive analysis evaluates competitors' strengths, weaknesses, and strategies to identify market opportunities and threats. Whether you're just starting out or already in the market, this will help you refine your positioning – where your product stands and how to differentiate yourself. Then, ensure your MVP offers a unique value proposition and avoids duplicating features already saturated in the market.
The main steps of competitive analysis are:
  • Identify key competitors;
  • Analyse their product features, pricing, user feedback, and market positioning;
  • Compare this data to find areas for improvement in your product.
✍ For example, Zoom founders analysed existing video conferencing tools, like Skype, to identify gaps in ease of use and performance, which shaped its MVP.

A/B testing

A/B testing, also known as split testing, is a market research method where two or more variations of a product, feature, or marketing element (e.g., a web page, email, or advertisement) are compared against each other to determine which one performs better based on specific metrics like conversion rate, click-through rate, or user engagement. This method involves randomly assigning users to either the control group (A) or the variant group (B) and then analysing the results to see which version yields better outcomes.
To organise A/B testing of your MVP’s feature, you need the following:
  1. Hypothesis Formation: Identify a specific element or feature to test and develop a hypothesis about how a change might improve performance.
  2. Design variations: Create two or more versions (A and B) of the element or feature, with one acting as the control and the other as the variant(s).
  3. Randomize user assignment: To ensure unbiased results, randomly assign users to either the control or one of the variant groups.
  4. Collect the data – run the test for a sufficient period to gather enough data to ensure statistical significance.
  5. Hold the analysis. Compare the performance metrics of the control and variant groups to determine the more practical version.
  6. Make the improvements – implement the version that performs better based on the A/B testing results.
Companies like Facebook and Google frequently use A/B testing to refine their algorithms and features, such as testing different news feed layouts or ad formats, to optimise user engagement and revenue.

How to organise research for your MVP

Here, you’ll find the template for the customer feedback questionnaire. Use the following step-by-step guide, which provides different types of market research and open-source tools to build an impressive MVP.

Define Your Objective

Before diving into research, be clear about what you need to know. For a pre-seed startup, this might be understanding customer pain points, identifying target demographics, or validating a specific feature of your MVP.

Start with Secondary Research

Secondary research involves gathering existing data to understand the market landscape and competitors. This approach saves you time and helps you build a base for primary research. Review industry reports, competitor analysis, and relevant case studies. Platforms like Statista, IBISWorld, or government databases in the UK are excellent sources.
✍ For example, if you’re launching a food delivery app, look at market trends in the UK in terms of customer preferences, such as eco-conscious consumers or speed of delivery.
You’ll get a solid foundation of knowledge and avoid reinventing the wheel.

Conduct Qualitative Primary Research (Customer Discovery)

Next, dive into qualitative research to understand customer emotions, motivations, and pain points. Organise interviews, focus groups, or ethnographic studies. Conduct customer interviews or small group discussions in the pre-seed phase.
✍ Example: if you're building a health tech app, speak directly to patients and healthcare professionals about their frustrations with existing solution
Deep emotional insights will help you refine your MVP's core value proposition. It’s critical to align your product with customer pain points, not just assumptions.

Use Quantitative Research to Validate Hypotheses

Once you’ve gathered qualitative insights, it's time to validate your findings with quantitative research. Quantitative research helps confirm that your initial insights apply to a broader audience. Send out surveys or use online polls to a larger sample size. Leverage platforms like Google Forms, Typeform, or SurveyMonkey for surveys.
✍ Example: if you found during interviews that a key pain point is the lack of customizability in current SaaS products, run a survey asking a wider audience how important this feature is.
You’ll have data to support your decisions, whether it’s a feature to build or a target audience to prioritise.

Conduct Competitive Analysis

You should now have a clear idea of what your customers want, but you also need to know what the competition offers. Competitive analysis lets you spot gaps in the market or features your competitors need to improve. Conduct thorough research on competitors’ products, customer reviews, pricing strategies, and marketing tactics to better understand their strengths and weaknesses. Use tools like SimilarWeb, SEMRush, or Ahrefs to evaluate their digital presence and traffic sources.
✍ Example: if you’re developing an e-commerce platform, analyse how competitors handle customer service, product returns, and user reviews.
You can position your MVP to fill gaps in the market, ensuring you offer something unique and valuable.

Choose the Right Testing Method for MVP Feedback

Finally, as you prepare to launch, conduct market tests to validate your MVP. Use methods like A/B testing for digital products, run small-scale beta tests with a select group of users, or set up landing pages to gauge interest before a full launch.
✍ Example: if you’re launching a mobile app, create two landing pages—one showcasing Feature A and the other showcasing Feature B. Use Google Ads to drive traffic and see which feature garners more interest.
Data-driven feedback from testing will help you refine the product before the full launch.
Are you ready to turn your ideas into reality? Book your free consultation
Olga V.
Business Manager
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FAQ

What are the main types of market research?

The two main types are primary research, which involves collecting new data directly from potential customers, and secondary research, which uses existing data like reports and studies.

What methods can you use in primary research?

Standard methods include surveys, one-on-one interviews, and focus groups, each helping gather different levels of customer feedback.

Why is competitive analysis critical?

Competitive analysis identifies your competitors' strengths and weaknesses, ensuring your MVP fills market gaps and differentiates your product.

How are surveys conducted?

Surveys use structured questions distributed online to gather broad feedback. This method is efficient for validating customer needs at scale.

What is the role of focus groups?

Focus groups involve a small group of target users discussing your product. They provide diverse insights, helping you understand how different market segments react to it.

How does one-on-one interviewing work?

This method involves in-depth interviews with individuals to gather detailed insights. It helps discover specific pain points and refine product features.

When should secondary research be used?

Secondary research is applicable early in product development to understand market trends, competitor positioning, and potential opportunities.

Can I rely only on secondary research?

Secondary research provides a broad view but needs more specific, actionable insights necessary for MVP development. Combining it with primary research gives a fuller picture.

What mistakes should I avoid when conducting market research?

Common mistakes include over-relying on assumptions, neglecting primary research, or using outdated secondary data. Always validate your findings with both research types.
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