Online Survey Basics

Are Surveys Valid Market Validation Tools for Entrepreneurs?

Monday, March 28, 2011 by CM Arnold
Starting a business is risky. Entrepreneurs know this going in. They do what they can to minimize risk by doing market research to determine what their potential competitors are doing, the size of their chosen markets and -- most importantly -- what their potential customers need and want.

There is some debate among entrepreneurs -- and marketers -- about the best way to discover what customers want and to validate their chosen ventures. Several entrepreneurs and a few marketers shared their opinions via email interviews.

Scott Gingold, principal for Power Feedback, believes surveys can be effective tools for entrepreneurs who are just starting out. Quality surveys make it possible for entrepreneurs to decide whether a market and corresponding segments are viable and what the potential is, he said.

Surveys can be a tricky business, said Charlie Belmer, founder of Golem Technologies. Most surveys, I have found, are poorly targeted, so I question their overall effectiveness. I think if the need is well defined, a well targeted survey may help define certain areas of the product, especially around price structures or core features.

Larry DeLisio, Jr., founder of TapGuest.com, doesn't dispute the usefulness of surveys for entrepreneurs, but he does think timing matters. Customer satisfaction surveys are critical to any business's long term success, but for startups, you really need to be operating at a hyper pace in order to adapt to the market demands and the speed of the competition. Surveys are really better to refine your marketing or measure the effectiveness of a marketing campaign or plan, rather than to determine the best ways to market your product or service.

Customer satisfaction surveys are mostly useless in a startup environment
, said co-founder and director of user happiness for Thumbtack.com, Sander Daniels. They are a waste of valuable time and energy. The quickest and easiest way to solicit feedback from your customers is simply to publicize an email address where they can reach you. You will be surprised at the things people email you about and how much you will learn from this.

Director of marketing for Briona Glen Publishing, Jason S. Reilly, agrees with Daniels. There is no point surveying at the beginning. The best measurement of your success will come through making sure you have personal interactions with your primary target market and making sure to put your absolute best foot forward. Don't ask if you're doing a good job, he added. Just do a good job.

Entrepreneurs and marketers may never come to an agreement on when exactly customer satisfaction surveys would best serve the needs of startups. What they do all seem to agree on, though, is that at some point in a company's development, customer satisfaction surveys are a good idea.

Comments for Are Surveys Valid Market Validation Tools for Entrepreneurs?

Leave a comment





Captcha
blog comments powered by Disqus