Ways to Create High Demand When Starting a New Business
Only 40% of produced items, according to the Marketing Research Association, really reach the market. Only 60% of those produce profitable revenue. Where then do brands err when introducing a new product? Is it the product or the approach to its launch? Is it failing to comprehend what the target market wants and needs? Or is a rival’s item simply superior? Here are some ways to create the demand that may help you in the future.
Start Digging the Data
You may easily find all the data you require for free while validating a new product concept. Before spending money on any external research, Jane Frost, CEO of the Market Research Society, advises business owners to mine their own internal data. This can help you maintain a manageable scope and prevent being overloaded with extraneous data pieces.
Here are some ideas for getting started with in-house market demand research:
- Analyze your own data. For instance, you may examine prior social media campaign performances or run website reports on your conversion funnel. You can even assess email marketing performance by product category.
- If at all possible, go over session replays on your e-commerce platform to learn how customers use it and what they’re most drawn to.
- Use free, high-quality data — like the Census or Google Trends.
- Ask your customers. Conduct quick interviews to get to the heart of why customers buy what you sell.
Note everything down. Save all of your team’s notes and research in one convenient area, then present your key results in a document that is simple to reference. Prior to preparing or publicising a product launch, this is the initial step.
Knowing where you fit into the bigger market involves looking at what your competitors are doing. If you want to carve out a new niche, you must know which businesses, if any, already fill the demand you’re addressing.
Here’s a basic way to get started on this:
- Make a simple list of the main competitors in your product’s space (if you haven’t already)
- Copy and paste the marketing copy they use to outline the features and advantages of their products.
- Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of each competitor
Remember that most new items don’t fill a whole new niche. Instead, they are re-contextualizing that product for a different audience by integrating themselves within an already-existing one. Create an email account just for monitoring the email marketing campaigns of your rivals. It’s a safe method to stay informed about developments in your field. But keep in mind: Don’t become so fixated on what others are doing that you end up just recycling their ideas. Keep your focus on your objective and ideal client.
In ecommerce, scarcity marketing has a bad reputation. It could appear to be a dishonest sales gimmick. The scarcity principle, however, is still valid. Humans place a higher value on things they consider to be rare and a lesser value on those they perceive to be plentiful. The customer’s worry about losing out is exploited. Businesses utilise limited-time offerings like daily specials, quantity restrictions, or one-time-only promotions to accentuate scarcity and foster a sense of urgency.
Another successful strategy for creating product scarcity is to advertise “out of stock” items. This lets potential customers know that your product was so well-liked that your supply has temporarily run out. You may dismiss it as a matter of supply and demand, but businesses shouldn’t reject the increased media attention and customer demand that came as a result of supply problems.
Here are some of scarcity marketing examples:
- Flash sales
- Countdown timers
- Limited-time offers
- Limited stock
- Limited quantities and product drops
- Social proof
- Urgency in copy
- Cart reservation
Buyers Connect to Losses Rather Than Gains
For a lot of potential buyers, they have a hard time imagining what they could gain from purchasing your product or service. This takes a lot of imagination, and they have to picture themselves in a new and better place or position by having bought from you. But, if you can frame your copy to show what a buyer will potentially lose if they don’t buy, you trigger a pain point.
People are considerably more likely to buy when you can identify with their difficulties and demonstrate how your good or service may solve them. When you consider the factors that influence purchasing decisions, it becomes immediately obvious that you must appeal to a customer’s emotions in order to generate demand for your good or service. And using a countdown timer to instill a sense of urgency is a simple way to accomplish this.
Easily Create a Sense of Urgency
When you read that consumers frequently make impulsive purchases, it’s accurate. People utilise their emotions to guide their actions, whether it be purchasing pricey furniture that was flying off the shelves or brand-new boots or digital gadgets that you simply had to have. Additionally, people make purchases depending on how they react to pictures and how they relate to losses rather than benefits.
But when they believe they are going to miss out on something, especially if there is a clear deadline, people actually act. And you can fully take advantage of this by incorporating urgency into your marketing initiatives. With only one email, you may increase your sales by using powerful, emotionally charged language along with a countdown timer. You may improve conversion rates by using these straightforward yet very powerful techniques in your email marketing and content marketing campaigns. Increased sales, more affiliates, and “right away” buy now actions are all possible with urgency.
It’s crucial to keep in mind that every product launch is unique. How well a certain product performs will be impacted by time, economic circumstances, shifting consumer needs, wants, and expectations, as well as what the competitor is doing. For these reasons, it’s crucial to give yourself plenty of time for planning, research, and sales forecasting. Additionally, you should always state your objectives clearly and lay out your pre-launch, product launch, and post-launch strategies.