New product inspiration comes from every angle. Sometimes, you’ll find it in your customer feedback surveys, product ratings, or reviews. Other times, you need to look no further than your sales numbers or your competition. One thing that each of these sources have in common — they’re driven by data. If you have a great product idea and want to pitch it to your leadership team, you’ll have a much easier time getting them on your side if you have the data to support why it’s a winning idea. Good news: Specification Data Management (SDM) and master data management (MDM) can support your efforts.
How to Use Data to Find Market Opportunities
Much like finding cost-saving opportunities, new supply lines, manufacturing efficiency, or even low-performing products, new product development can also be a benefit born from your existing data stockpile. The problem, however, is that many companies lack a simple, single source of information that could simplify the way you mine your data to find these opportunities. Let’s look at some ways a better data approach can improve your insight and help inform you of new product ideas and opportunities:
In many cases, your customers will be straightforward in telling you what they want to see. A better data management system can help you compile these insights to detect trends and see if their requests warrant further consideration. If you find that a sizable piece of your market has made the same suggestion, it might carry more weight than a single feedback survey.
Data can help you look beyond what your customers are purchasing to identify other key factors, including:
- When customers are purchasing specific items
- Where the purchase is made
- How the purchase is paid for
- If they purchase an item the moment they need it or stockpile it
Looking at all aspects of consumer purchase behaviors can help you better understand the why behind each sale. In turn, this data can help influence everything from pricing to product positioning and availability. For example, customers buying an item on a whim may be more attracted to a lower price point, whereas customers who need something immediately may be willing to pay more for it.Use this information to appropriately position your product and uncover potential new product opportunities, such as add-on items.
Foreign Markets Analysis
COVID is an excellent example of supply chain opportunities. When the pandemic hit and global shipments were put on hold, domestic companies had a unique opportunity to increase their own production of items that are often sourced from overseas. And if they weren’t currently producing these items, they could identify whether they had means to start. Another angle is to view how other countries are adjusting their consumption habits. For example, if you export products to a certain country, it’s important to understand that country’s population growth, economy, and other factors that could impact your own sales or inform new product development.In turn, this allows you to improve your forecasting to capitalize on new opportunities before your competitors.
Making Smarter Product Decisions with SDM and MDM
When data is organized and easily accessible, it’s easier to find important insights that could lead you to your next big product. Specification Data Management software and Master Data Management systems provide structure and insight to data across and outside of the enterprise. Specifically, SDM provides product detail down to the spec level, including bill of materials, suppliers, and sources, helping to unite ideation processes, while MDM works to eliminate disparate systems and data silos. With transparency in customizable levels of detail, companies gain holistic insights into their product data to make better product development decisions. Download our ebook to learn how Specright helps you take advantage of deeper data insights to reveal your next big product.