How to conduct market research to identify immense app opportunities

With new smartphones come new apps. There’s an app for pretty much everything (except one that can check your temperature which I haven’t coined yet but plan to!) Part of the reason why we’re seeing so many new apps hit the shelves is no-code software. Because non-technical makers can now design, build and launch apps in days and weeks, not months and years, we’re seeing the movement flurry. 

But before you rush to sign up with Bubble.io or Webflow, you’ll want to explore the market to see whether your app is a viable idea. Market research is important, and can open (and close) doors in the early stages of app creation.

If we lost you at “market research”, don’t sweat! Because here are some tips to help you do it, and do it well! First, though, here’s an explanation of what it actually is. 

Market research definition 

Market research is exactly what it sounds like: research about your target market.You can use it to gather valuable information about the user, allowing you to create a product that will improve their day-to-day lives or solve a problem they have. 

The research itself is split into three findings: 

• 
  One about your audience’s behaviour throughout their decision-making journey.
• Another about the experiences they’ve had in the market so far.
• And another about the motivation behind their customer loyalty.

Whether it’s through surveys, interviews or focus groups, once you have this insight you’ll be able to effectively create for, and market towards your audience. Now let’s look at how to identify app opportunities through market research methods...

1. Who are your target users? 

Let’s open with one of the most important things when it comes to market research. Skip this first step and you could end up with a product that nobody cares about. 

Right, so you’ve got a bright idea for an app that solves a problem. But whose problem does it solve? Knowing your target user and creating with their needs and wants in mind will give you a product people care about and want to invest in.

When identifying your target users, you’ll want to define them by their demographic (age, gender, education, employment etc) and psychographics (interests, hobbies, opinions, attitudes etc). Understanding their spending habits and lifestyle choices will benefit you immensely when building your MVP. So don’t jump the gun. 

With a description of your target user, you can identify any trends in the apps that are most popular among this user group. For example, the features or prices. You can also find out what their main use for your app will be. Using this to influence your MVP puts you one step closer to owning a loveable product. 

2. Competitor analysis is a godsend 

Do you know what other apps your target audience are using? If you don’t, then I suggest you find out as it will help you tenfold. 

In a way, competitor analysis allows you to learn from others' mistakes and successes. Unless your idea is 100% unique (congrats if it is), it’s a way of finding out what does and doesn’t work among your target audience. You see, chances are if it flopped for a competitor, it may flop for you too. And if it did flop, it’s a risk, and you need to decide whether it’s a risk worth taking. 

To find out who your competitors are, you’ll want to look at the apps your target audience is using to solve the problem you want to solve. Seeing what your competitors are doing will give you valuable insight you can take away and incorporate into your MVP build. 

If your app is unique and there’s nothing else like it on the market, competitor analysis is a lot tougher. Here, you’ll need to dig a lot deeper to find gold. 

SEMrush and Ahrefs have all the tools you need to carry out effective competitor analysis — though they are pricey! Free tools include Google Trends, SimilarWeb and BuzzSumo.

3. Sit down with your potential customers 

The best and only way to truly understand your potential customers is by talking to them. An interview is a great way to get in front of your audience and ask them questions that can improve your app — both before and after you’ve built your MVP. 

Asking questions before building your MVP will give you insight into market trends (think back to our first point). Asking questions once they’ve tested your MVP will give you their pain points, along with whether your app provides a solution to their problem. 

4. SWOT analysis is key here, too… 

A SWOT analysis is about assessing your app’s Strengths, Weaknesses, Opportunities and Threats. You can use SWOT analysis to evaluate your competitive position and develop strategic planning. One of the best things about SWOT analysis is that it has little to no cost — anyone who understands your app can do it. 

The strengths and weaknesses will relate to your app. Here, you’ll outline the good and bad about your app — simple! Your opportunities are how you can improve to combat the threats and capitalise on your competitor’s weaknesses. The threats refer to anything that can harm your app and prevent it from growing. 

Here’s an example of SWOT analysis done on a fictitious Travel app to give you an idea of what it should look like. 

5. Your all-important business plan is next

So you’ve identified and spoken to your target audience, and carried out competitor and SWOT analysis, now it’s time to create your business plan. 

As this is essentially a guide for your business, you’ll want to include every last bit of detail so that anyone who picks it up can follow. Key information includes your costs, revenue and profits, as well as your objectives and how you’ll go about marketing your app. Defining your target user is also important, as this will help you streamline your marketing tactics. 

6. Create a killer pitch (and deck) 

Last but not least, it’s time to create a pitch! A killer pitch (and deck) can hold the attention of potential investors long enough for you to explain what your app does and why it’s a good investment. 

A strong deck isn’t a substitute for a good product, though. If you want to impress investors who see thousands of pitches a year, you’ll need both! 

Make sure your pitch is concise and fact-driven. I’m guessing you already do, but for what it’s worth you’ll also need to know your product and the target market inside out. Research is key here, so make sure you know and understand the facts and figures as you don’t want to stumble if you’re asked a question. 

Final thoughts… 

So that concludes our tips for conducting killer market research to identify app opportunities. But it doesn’t end there. The opportunities you identify during your market research will continue to grow as you build a following. So too, might your app’s threats. On the contrary, as a confident market researcher, you now have the tools to spot new opportunities that present themselves as the market grows.