In today’s episode of The Startup Chat, Steli and Hiten define the difference between “must have” and “nice to have” products. They highlight why knowing the difference is important to your business and help you to understand how to redefine your product so it is likely to become a customers “must have”.
No matter what stage of your product development, Idea development or research you are in. You must determine how your product will be accepted into the market.
A simple question that is often overlooked is the question regarding whether your product is a “must have” or “nice to have” product. Is your product essential to potential customers or just one they’ll simply appreciate.
Tune into this week’s episode of The Startup Chat, to understand how to identify the pain points that your product solves. This can be a powerful metric in framing your product, as a must have product. Steli and Hiten, also explain that you can not succeed for long in business, if you do not understand if people care about your product. When your product is a must have customers will always make compromises to use it.
Time Stamped Show Notes:
01:06 What are the differences between must have and nice to have.
02:51 Must have product examples.
04:06 How to know how the customer perceives your product.
05:02 The early days of Close.io.
05:53 How do you identify that you are going after a must have product.
07:06 Nice to have product case study.
08:48 The marketing angle to test your product placement.
09:50 The Sales angle to test your product placement.
10:48 Tips on identifying if your product is a must have or nice to have.
11:32 Being honest with yourself is an important step to success.
3 Key Points:
If you find out that the thing, you want to build is not their number 1 challenge in life then you do not have a business that is worth building.
The amount of money a customer is willing to pay you, can be a huge indicator of if you are a priority product.
If through sales and marketing your customers are only reacting in low numbers it means that you don’t have a product must have.
Steli Efti: Hey, everybody. This is Steli Efti.
Hiten Shah: And this is Hiten Shah. Today on The Startup Chat, we're going to talk about how to know that you have a nice-to-have, versus a must-have product. The reason this topic's important is, you can't be in business, any kind of business, and not understand whether people actually care about your product and it's a must-have for them or just a nice-to-have. I think it's one of the most critical things to figure out when you're running a business. When you have a product. It doesn't matter what kind of product it is, whether it's a service or a software, or even some freelancing you're doing. Is it a must-have for people, or is it just a nice-to-have?
Steli Efti: I think that it's also one of those questions that, I don't know. Maybe find-
Hiten Shah: How do we figure it out, Steli?
Steli Efti: What are the differences? Let's just go through that. One easy difference between must-have and nice-to-have is, how willing is the customer to deal with a ton of compromises? Are they willing to use your product, although your product is buggy? Although it lacks crucial features? Although it hasn't been around for a long time? How much pain are they willing to overcome to use your product versus, they are waiting for your product to be perfect and if it's not, they're not interested in it? To me, if you have a must-have solution, customers will take a lot of shit and still use it. They'll jump through a lot of hoops to purchase your product or to use your product, because it addresses such a huge pain and there's not that many great alternative...