We’re constantly reminded that the fintech industry is in an exciting state of rapid progression. As technology advances, and consumer demands evolve, the industry is constantly innovating and bringing revolutionary products to market. It’s a market that MMC is tapped into but we’re also very aware that it’s becoming more and more competitive!
Bringing out groundbreaking products and turning them into a success requires more than just a brilliant idea. It relies on a deep understanding of your target market, their needs, and their pain points, and this is where market research can really make the difference.
By leveraging powerful research techniques, fintech can:
- Identify market gaps and opportunities: Uncover unmet needs and underserved segments to create unique products through interviewing existing and potential customers.
- Validate product concepts: Test ideas within a risk-free environment with potential and existing customers to assess their feasibility and market potential.
- Optimise product features: Refine products over time based on evidence from user feedback and preferences.
In this article, we’ll delve deeper into the role of market research in each of these stages.
Identifying market gaps and opportunities
The initial stage of product development is crucial for setting the right direction in the long term. Our insights help you uncover opportunities, such as the increasing demand in Sustainable Finance and ESG Investing, as well as unmet needs and pain points, helping you create something specifically to counter frustrations for both you, your business and your clients.
Desk research is a fantastic starting place, and often the foundation of a deeper dive to further bring insights to light. But qualitative research, where we will interview potential and existing customers can help identify gaps and opportunities by finding out what consumers are missing from their current providers. Validating product concepts
Once you have a promising product idea, it’s essential to validate it with your target market; gut feelings and anecdotal feedback from colleagues and friends are not going to cut it in the highly regulated world of finance.
Techniques like concept testing and A/B testing can help you gauge initial reactions and compare different product features. But by gathering further detailed feedback through methods such as focus groups, you can uncover the detail you need in order to define your product, and understand how to market it for successful results, as well as how to best service your clients to keep them sticky.
Optimising product development and testing
Once you’ve validated your product concept, the next step is to bring it to life.
Market research plays a pivotal role in ensuring that your product is not only technically sound but also aligns with the needs and preferences of your target market.
Recently with our client, iamproperty, who operate in the PropTech space, we were involved in various stages of product development which included interviews with estate agents, a survey with end user house sellers as well as conveyancing solicitors! Talk about a 360 approach to research – and a reason why they’re so successful as a business!
Prioritising features
One of the key challenges in product development is deciding which features to include.
Customer feedback surveys can help you prioritise by assessing their relative importance to your target audience. By understanding what features customers value or need most, you can allocate resources effectively and focus on delivering the most impactful functionalities.
Again, we recently gauged needs and wants for a global marketing automation software company which informed not only product development but an acquisition strategy.
Designing user-friendly interfaces
A great product is not just about functionality; it’s also about user experience. Market research can help you design and test out intuitive and user-friendly interfaces in a low-risk environment which we can do by showing prototypes of product and user journeys during interviews.
Setting optimal pricing strategies
Pricing is a critical factor in product success.
By analysing market dynamics, competitor pricing, and customer willingness to pay, you can determine your optimal pricing strategy and define the value proposition of your product. Ultimately, you can set prices that maximise revenue and customer satisfaction.
On a customer survey we conducted for a tech firm, we asked customers to place on a scale the amount they would be willing to pay within various price bands. We could then analyse this for the client based on customer types
Developing a compelling marketing strategy
To maximise the impact of your product launch, you need a well-defined marketing strategy. Research insights can help you identify the most effective channels to reach your target audience by identifying the most appropriate methods and platforms in which to launch your product for the best adoption rates vs your competitors and conventional financial institutions. By asking and reviewing where customers want to view or receive marketing, it reduces the risk of mis-spent budget while maximising initial sales.
Gathering post-launch feedback
Post-launch feedback is invaluable for improving your product and enhancing customer satisfaction. Understanding your customers is a key strength of ours, with market research able to unearth real perceptions and answers to questions you didn’t know to ask.
There’s no better project for MMC than one where we’re involved in the pre-during and post launch of a product. And whilst we don’t want ‘survey fatigue’ amongst your customers, we’ll make sure we plan follow up research to make sure you’re continuing to hit the mark – especially when competitors might be hot on your heels!
Leveraging benchmarking and Net Promoter Scores
To maintain a competitive edge, it’s essential to benchmark your product against industry standards. Market research can help you identify where you currently stand, best practices for your industry and areas for improvement.
Additionally, tracking your Net Promoter Score (NPS) can provide valuable insights into customer loyalty and satisfaction in the long-term. By monitoring your NPS over time, you can also identify trends and take proactive steps to address any issues before it’s too late.
Are you a Fintech firm and inquisitive?
Hopefully this will have got you thinking about where you need to ‘know more’ about your customers and markets. Contact our fintech lead, Sophie Peel at sophie@mmc.agency for a chat!
