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Explore the Point of Sale system with everything you need to sell in person, backed by everything you need to sell online.
Validate your retail idea with a simple focus group process. Learn how to recruit, moderate, and use feedback to improve your launch—start now.
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If you’re reading this article, you likely have a business idea that you think might be worth pursuing.
Some entrepreneurs make the mistake of running with an idea before running it past their potential customers. BLS Business Employment Dynamics survival data shows that about 49.6% of private-sector establishments survive at least five years (example cohort: establishments opened in the year ended March 1994, measured through March 1999).
How does a business ensure its product or service will gain traction, particularly in retail? When your target market is as saturated as retail, it’s a good idea to do your homework — and as part of that due diligence process, you can collect the opinions of your ideal buyers.
One way to validate your idea with your target audience is to organize a focus group. Gathering ideas and data from a focus group can be the difference between jumping into a retail endeavor with your eyes closed, or starting it off on the right foot.
When Lego realized that only 9% of those who played with their product were female, they decided to hire researchers to help them close the gap. After four years of observing the playing habits of 3,500 young girls and their mothers, Lego launched a line called Friends
. This line introduced larger, more vibrant blocks, figurines, and new packaging. As a result, the ‘Girls Building Sets’ category experienced double-digit growth of 28% from the previous year.
Want to experience similar traction with your new retail idea? Here, we’ll dive a little deeper into the concept of focus groups and also offer some insights on how to create one of your own.
A focus group engages would-be customers in an interactive experience that exposes them to your business idea. It’s a moderated session that gathers feedback, opinions, and criticisms based on questions or activities that you create. If well executed, they can offer a return of invaluable insight and help guide decisions on if and how to approach your new business (or launch your new product).
They can also be held online or in person, which offers retailers significant flexibility if you’re hoping to manage your own group.
While focus groups certainly have drawbacks and advantages, this kind of qualitative study can provide some powerful data as part of your market research.
Feeling a little overwhelmed by the concept? The key to any effective focus group is a thorough and thought-out plan. Here are a few tips to walk you through the process of establishing and running your first group.
The best place to begin is with what you want to learn. In this case, you want to know whether your retail business idea (or new product) is a winner. Keep that at the core of everything you do.
Next, consider who should be involved. You want to be able to identify underlying similarities among the group, but some diversity will allow for insightful and contrasting opinions. When thinking of people to invite, consider how variables such as gender, age, and class can affect the group dynamic. Aim for a group of six to ten to ensure you can strike up a lively conversation. The keyword here is conversation, not debate. Try recruiting participants for free through social media channels or community boards like craigslist — ideally, they won’t know each other.
Plan for your session to last about an hour, but never more than two. The longer the session, the more risk of fatigue among the group. Respect the time your participants are giving you, and consider rewarding them with a small incentive like a gift card, other voucher, or free merchandise. Their time is valuable, and offering something in return for their input can help ensure they’ll offer honest opinions and will fully engage in your session.
Lastly, be very thoughtful about the questions you pose to your focus group. These questions must incite conversation and, ultimately, give you the validation you’re looking for.
Here are some tips for writing effective questions:
Consider these to get you started.
The order of your questions can also influence the outcome, so run a test session on family, friends or partners to capture some quick feedback. Allow for 5 to 10 minutes of discussion per question, so plan for six to eight questions that will get you the validation you’re looking for.
You’ve recruited an eager group of participants and you’re feeling confident about your plan. It’s time to set it in motion!
Here are some tips for the day-of:
One thing to be especially aware of is a phenomenon called “groupthink”. Groupthink happens when one enthusiastic participant offers an opinion that the rest of the group then adopts as their own because they don’t want to be seen as a detractor. In some cases, great ideas can come from participants building off one another, but make sure it doesn’t get in the way of absorbing valuable differing opinions.
There are a few things you can do to avoid this. Give participants an assignment a week prior to the session to give them an opportunity to form opinions before hearing others. In the same vein, it helps to ask participants to write down some of their answers during the session that you can then collect and use to steer the conversation. And finally, when you notice groupthink happening, try challenging the group with the opposite assumption and see where it goes.
This is where your trusty note-taker shines. You should have plenty of notes to work with at the end of your session, but strongly consider recording the focus group to avoid missing any important insight. This will let you transcribe the session and more easily draw key insights.
Start by grouping the participants’ responses to each question. Jot down any patterns you see in their responses. What themes arise from these responses? Categorize the themes and label them. This should give you a snapshot of your findings.
Consider whether your findings meet the objective you’ve set. Most importantly, ask yourself, what this all means.
Now that you’ve run your first focus group, run another. Take what you’ve learned and modify the session to learn even more. Once you start hearing the same feedback repeated over and over, you know you’ve got what you’re looking for.
Do you think a focus group is the right method to validate your business idea?
Validation of a focus group discussion is typically accomplished by reviewing the results of the discussion and comparing them to the original research goals. Validation also involves ensuring that the focus group members were able to openly express their feelings and opinions and that their views were adequately recorded. Additionally, it is important to ensure that the discussion was conducted in a manner that was respectful to all participants and that any biases or preconceived notions were avoided. Finally, the moderator should review the data collected to ensure that it was accurately and thoroughly documented.
A focus group is a qualitative research method used to generate new business ideas. It involves bringing together a group of people with similar backgrounds and experiences to discuss a particular topic or idea. The group is typically led by a moderator who guides the discussion and encourages participants to share their ideas and opinions. The goal of a focus group is to gain insight into customer needs and preferences, identify potential opportunities, and uncover new business ideas. The information gathered can then be used to develop marketing strategies, create new products, and develop new services.
A business may use a focus group when they want to validate a business idea or new product, or receive feedback about a product or service from a targeted group of people. Focus groups are commonly used to help a business gain insight into consumer opinions and preferences, helping to inform decisions about product design, marketing campaigns, and more.
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