Above any other startup mantra, entrepreneurs need to validate their thinking as early as possible: don’t spend millions of dollars building something before having tested ideas and concepts with potential customers.
Where this tends to fall down in practice is that many entrepreneurs find it hard to reach real customers. Getting feedback from co-founders, friends, small focus groups, and even existing customers can be very helpful to qualitatively understand how others view your offering. However, many times the sample group that you reach is too small and is biased towards people that will be polite to you, or who have self-identified as liking your product.
Modify Watches, which sells interchangeable watch straps and faces separately in order to give customers the ultimate choice, had to decide how to put resources to work on marketing campaigns, PR, and partnership efforts to help kickstart their growth and brand awareness. In order to determine whether or not to move forward with these efforts, Modify Watches decided to use SurveyMonkey Audience to find respondents and gather actionable insights for the company.
They used SurveyMonkey Audience to create a survey and send it to a group of 1,000 U.S. adults. Within a matter of days, they gained tremendous insights about the willingness of consumers to pay for their watches and attributes of their ideal customers.
Given their current pricing of around $40 per watch, Modify Watches was pleased to see that more than 80% of respondents spend $20+ when purchasing a watch — with the weighted average price around $70 per watch. This data showed that they are priced right for the typical watch buyer and that they may have room to increase pricing over time.
Modify Watches was under the impression that both men and women in the 18–29 age range, and females aged 29–60 would be a great target for them. While they validated this assumption with insights from their survey, Modify drilled down on demographic groups who expressed high likelihood to buy their watches and were surprised to see that both young adults — less than 18 years of age — and older females were very interested in purchasing their product.
While those most likely to purchase a Modify watch are widespread, Modify learned that they had strength in a few, unexpected customer groups, including young adults and older women. By tailoring their marketing, product, and PR efforts to resonate with these groups, Modify hopes to expand their base.
They also gained confidence in their pricing. By knowing that consumers felt that the pricing for their interchangeable faces and straps were appropriate, Modify modified their near — term business roadmap — they removed any plans to conduct price testing or make changes to pricing in the immediate future.
With the data from this survey, Modify can now take action and rise above their competition with targeted customer and product outreach.