Many founders assume that they know everything about what their customers or users want from the minute they launch their MVP, but from experience, this doesn’t work. You cannot assume. It is important that you seek the opinion of your users. That is where research comes in and that’s the best way to actually grow a fan base of users who will continuously promote your product. According to an article published by Forbes in 2020, data is the DNA behind the powerful analytics which help modern organizations, especially tech startups identify new products, determine how to better serve customers and improve operational efficiencies.
As a Founder, your business decisions should rely heavily on data. Incorporating data analytics into the infrastructure of your product will help you understand what aspect of your product is relevant to your target audience. Many founders get stuck with their vision and are not flexible enough to adopt suggestions from their users, especially when their suggestions aren’t in line with the original plan of the business they wanted to have. But that is the difference between a business owner and an entrepreneur. A business owner is just looking for a business that can give an income, but an entrepreneur looks to solve the problem of a particular group of people, and because the problem is so huge, the income comes later… creating that value first will ensure sustainability in the long run. This solution can only come from data.
Let’s use Instagram as a case study, they originally started out as Burbn. Burbn was a platform that allowed people check in at particular locations, make plans for future check-ins, earn points for hanging out with friends, and post pictures of the meet-ups. Sounds cool right? Yes, but it was an extremely complicated platform. The founder, Kevin Systrom then started paying more attention to the users of the platform. He then decided to bring on Mike Krieger; another programmer on board. They then used analytics to determine how, exactly, their customers were using Burbn. They eventually found out that their users weren’t using Burbn’s check-in features at all. They were only using the app’s photo-sharing features. They then decided to scrap all other features and focus on what was working – The photo feature. They eventually did more research and included new social media features, then changed the name, and that’s how Instagram was formed.
Founders Ideas are the thoughts, creativity, insight, and vision a startup owner has for a product or service they want in the market. A founder is a creator, a leader who has the big picture of what the business will represent. When a founder creates a product from nothing to something that solves problems, the need for getting a team to drive this idea to reality becomes the next step.
Users are the benefactors of the product created by the founder. The user is the person that interacts with the app and can provide real-time feedback depending on a product system of reporting. Users are active participants in the improvement of tech products.
Paying attention and taking advantage of the data that is readily available to your startup, will help you and your team be better prepared to identify both current inefficiencies and potential opportunities for growth. As you begin to analyse that data, you will adopt a system that allows you regularly review data related to your company’s performance. You will also gain the insights needed to improve your bottom line, innovate and achieve continuous growth.
To achieve the best results, use a data analysis platform like Google Analytics, Mixpanel just to mention a few, that collects information from all facets of your product. Some examples of data to track are Sales and marketing data, website statistics, consumer interests, number of users, engagement, etc., Analysing and understanding this data will show you how an issue in one part of your business is impacting your startup as a whole. This also helps you continuously offer value to your users. Peter Thiel, co-founder of PayPal, once said, “if you want to create and capture lasting value, don’t build an undifferentiated commodity business.” This statement reemphasizes that businesses must be different. You must continue to offer value to your users.
In conclusion, data never lies. Data is gold. Trust the process and be rest assured that the decisions that will be made will not be baseless but be carefully considered based on the analysis of the data received from your users.
Durosinmi–Etti is founder, AGS Tribe (HERconomy). [email protected]
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