29 May 2024 The Role of Technology in Product Research
Every year, thousands of new products are launched in an effort to capture customer attention. While some succeed, many become unsuccessful. Technological advances are reshaping the product development process, offering clearer pathways to success. Let us take a closer look at the role of technology in this transformation.
For product developers, market research now goes far beyond traditional surveys and focus groups. Data plays a crucial role in increasing the likelihood of a product’s success. For instance, a cosmetics company can use social media analytics to assess the potential of a new product idea and understand the expectations of its target audience. This kind of insight is essential for evaluating market fit. Technological tools such as online research, data analytics, and artificial intelligence enable a more comprehensive analysis of market trends, customer behaviour, and the competitive landscape. And this benefits consumers too. After all, few things are more disappointing for a customer than buying a product they were excited about, only to be let down.
In recent years, we have seen a sharp rise in the use of digital platforms for data collection and analysis in market research, along with smarter and more effective testing tools. Today, physical prototypes are no longer a necessity for product testing. Virtual reality and augmented reality allow products to be tested in simulated environments. For instance, a car manufacturer can save millions by testing vehicle designs virtually and analysing performance with unprecedented precision. Technology not only streamlines but also accelerates product design and development. Creating impact on a small scale- say, with one or ten- is relatively easy. But generating large-scale impact requires much larger sample sizes. Qualitative research and physical product testing remain resource-intensive and costly, making efficiency harder to achieve.
Fortunately, brands no longer need to rely solely on traditional advertising to promote products and gather customer feedback. Technology also plays a significant role in customer feedback and marketing for products. Technology offers a wide range of channels for gathering and evaluating customer feedback. Social media platforms, customer reviews, and surveys provide valuable real-time insights and help brands engage directly with their target audiences. For instance, a clothing brand might run a product promotion through an Instagram competition and receive immediate feedback from thousands of customers.
As a result, technology’s role in product research is becoming increasingly central and it is now a key driver of successful product development. Technological tools span many areas, including market research, product design, customer communication, marketing, sales, and data analysis. Therefore, we can make our products more competitive and connect with our target audience more powerfully by using technology effectively.