What is the important distinction between listening to what focus groups say and watching what your customers do?

Listening to focus groups is like watching a recipe being demonstrated on a TV show. Watching customers is tasting the food so you know what went into it. (When you watch a cooking show on TV, you usually try to do exactly how they tell you to. However, if you were to taste the food, then you will make the adjustments according to what you know your guests / family will prefer).

In my view, while focus groups and other forms of qualitative and quantitative research are perhaps relevant for larger organizations who are looking at directional inputs, for startups and early-stage companies, it is important for the founders to be immersed in the user/customer’s life to understand the things that even they may not be able to articulate.

Startups usually redefine a market or sector. They usually think (or should think) of things that will do things differently than currently being done. Hence, users/consumers may or may not have a good handle on the subject as they would not have the vision of the future that the entrepreneur has painted for himself/herself.

Research is good to validate hypothesis and assumptions. e.g. to check what you think is a need gap or pain point that is really true for users/customers. Not to find if they need or want the stuff you intend to put out.

Author: Prajakt Raut

Prajakt Raut is the founder of Applyifi.com, and author of the book for startups - ‘Starting Up & Fund Raising’ Prajakt personal goal in life is to encourage and assist a 100,000 people to become entrepreneurs. _____________ Prajakt is the founder of Applyifi - an online platform that provides startups a 36-point scorecard and assessment report on the venture's investment readiness [www.applyifi.com], and helps them improve their odds of getting funded. Prajakt is also the founding partner of The Growth Labs, a platform where growth-stage companies get sharp, incisive advice from senior professionals and experienced entrepreneurs. [www.thegrowthlabs.in] Before starting Applyifi, Prajakt was the head of operations at IAN, founding member of a leading incubator, and the Asia-Director for TiE (2004 - 2007). Previously Prajakt had co-founded Orange Cross, a healthcare services company, and was part of the founding team member of Idealake Technologies. While in college Prajakt had founded a printing business and has spent over 10 years working in leading advertising agencies. Prajakt’s book, ‘Starting Up & Fund Raising’, helps startups understand an investor’s perspective, and helps them improve their odds of getting funded. The book also helps entrepreneurs understand the building blocks of a business.

One thought on “What is the important distinction between listening to what focus groups say and watching what your customers do?”

  1. ….yes several versions of a recipe to making a dish but the taste and flavor depends on how that one cook….. Cooks the dish! Albeit PIVOT is a word that most first-generation entrepreneurs are bound to like!! 🙂

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