Get in touch to see how we can help you optimize your game development or strategy, through deeper player and market understanding.
Learn how market research shaped the development of smart tech
From Concept to Launch: The Role of Market Research in Smart Technology and the Internet of Things
Smart tech origins
The emergence and evolution of smart technology has transformed a variety of product categories, revolutionizing how consumers interact with different devices. Initially, smart technology emerged in the form of smartphones and tablets, integrating advanced computing capabilities with communication functions. This paved the way for the Internet of Things (IoT), leading to the development of smart home devices spanning a broad range of categories including security, environment management, and entertainment.
Smart wearables such as fitness trackers and smartwatches followed, offering health monitoring and connectivity on the go. This technology has also been utilised across a range of healthcare categories including diabetes management, which in turn has spawned a range of spin off technologies that support the quantifiable self and offer richer insights into diet, as well as other health metrics. The automotive industry has also embraced smart technology with the emergence of connected cars marques like Tesla, featuring autonomous driving capabilities, real-time navigation, and advanced safety features.
The main benefits of smart technology for consumers include enhanced convenience, increased efficiency, greater safety and a more granular oversight of their lives and data supporting a greater sense of control. Smart home devices have delivered greater capability monitoring and automation of household functions, saving time and energy. Wearables provide real-time health data, promoting better fitness, disease and wellness management. Connected cars offer a safer driving experience through features like collision avoidance and adaptive cruise control.
On paper it would seem the smart technology category is a sure fire bet, but many of the predictions for the growth of the category have come up short. Some consumers continue to shun the technology, either failing to understand it, seeing little value or benefit over existing products or because they are fearful of the technology itself. We have also seen products come to the market based on little or no insight, that deliver no value or benefit to the user. Products simply made smart because they can be, by manufacturers desperate to be part of an emerging category. You can find examples of some of these in our blog post ‘The Internet of Pointless Things’, including such luminaries as the smart water bottle and the smart condom.
A fundamental understanding of human needs, the benefits smart technology can bring to the user and the concerns or barriers that need to be overcome are all important when developing new smart tech solutions. Market research plays a critical role in the development for smart technology, guiding decisions from the initial ideation phase through to pre-launch marketing. This comprehensive process helps by understanding consumer needs, identifying market opportunities, and mitigating risks, ultimately leading to the creation of products that are both innovative and aligned with genuine consumer needs or painpoints. Research used properly at each stage of the process ensures that products that come to market are fit for purpose and have the highest possible chance of success.
Let’s look at how market research can be used at different stages of the innovation process, and which methodologies are most appropriate to use at each stage.
01
The Ideation Phase – Developing new ideas built on an audience's understanding
Key methodologies: Ethnography, semiotics, ideation
The ideation phase is the genesis of any product, including smart tech. At this stage, market research is pivotal in uncovering unmet needs and emerging trends.
Ethnographic research is particularly valuable here in helping to understand the lives of consumers. By immersing ourselves in the world of potential users, researchers can gain deep insights into daily routines, pain points associated with existing solutions, and the context in which a smart technology might be used. For instance, observing how people interact with existing home automation systems can reveal gaps that a new product could fill, and understanding the frustrations consumers experience in their daily lives can reveal opportunities for new products and solutions.
At Bryter we use a human needs framework to analyse how technology solutions serve (or undermine) human needs. This taxonomy categorizes human needs into nine fundamental types: Subsistence, Protection, Affection, Understanding, Participation, Leisure, Creation, Identity, and Freedom. Each need encompasses existential categories (Being, Having, Doing, and Interacting), providing a nuanced understanding of what people require to lead fulfilling lives. By layering current technological solutions over the top of these needs we can identify where new technology solutions have the opportunity to support human needs in a meaningful way.
Technology is socially constructed and consequently it incorporates many social meanings such as gender (e.g., masculine power & efficiency vs feminine caring and gentleness), culture (progress), ethics (safe vs unsafe), and politics (control vs freedom). These meanings exist in culture as well as technologies that came before the proposed new solutions or improvements. Semiotics helps uncover the cultural meaning of smart technology. This can be done at a category level. In the category of home security, smart doorbells are carriers of meanings – both in their language (naming), their physical design (form, function, colours, materials, interfaces), packaging as well as communication (advertising). To understand more about semiotics as a discipline, read this blog post that introduces you to the method of semiotics and how it helps in uncovering meaning within culture, category and brand.
Semiotics can help with tactical questions such as:
- “Help me to understand the logic/codes/design language of category x”
- “Give me some quick insights into the new emergent codes/trends happening in this area”
- “Help us to create some concepts”
- “Provide a “cultural”/semiotic perspective on this topic”
It can also help with strategic brand goals such as:
- “Provide a future-proofed, holistic design/brand/business strategy for our brand”
- “Help us to develop a global strategy grounded in cultural insights from core markets”
- “Help us reinvent our category”
- “Develop deep insight into the various vectors shaping our category
Semiotics is helpful not only with understanding a category within a country but also when it needs to be taken to other markets internationally. This question is of relevance where national culture and variations within the country can pose challenges and opportunities for a brand. This article about semiotics in global marketing explains how to avoid common pitfalls, global, local and glocal culture.
Learn more about the role of semiotics and cultural insights in market research in the Bryter Cultures section of the Bryter website where you can find case studies on semiotics and category deep dives such as semiotics of experiential retailing and semiotics of refills in the luxury beauty products category.
If you are stuck for ideas and need help to kickstart the innovation process, ideation sessions are a great way to get the business thinking in a new direction. Ideation sessions combine consumer insight with fast concept development combined with real time audience feedback. In these sessions we bring together various stakeholders and consumers to develop ideas based on consumer insights, quickly develop them and then pitch them to target audience consumers. Feedback is given in the moment, ideas are refined and then tested again. Those that make the cut are taken forward for fuller concept testing, and those that fail to connect with the audience are rejected. You can learn more about this approach and how Bryter used it to help one of their connectivity clients develop the next generation of smart technology products in this case study.
Key Takeways
- Market research plays a crucial role in the ideation phase
- Semiotics is used to uncover cultural meanings embedded in technology that resonates with users on a deeper cultural level
- Ideation sessions allow rapid idea refinement and selection, ensuring only the most promising concepts proceed to full testing
02
The concept testing phase – Testing, developing and validating new ideas
Key methodologies: Focus groups, in-depth interviews, quantitative surveys + advanced analytics
Once a preliminary idea has been formed, concept testing helps to validate the potential of the concept before significant resources are committed to development. Testing new ideas before taking them forward for development is an important part of the process to assess if there is sufficient consumer demand and that new solutions are structured in a way that makes them appealing and differentiating. Choice of methodology is often dependent on how well developed a concept is, with qualitative approaches preferred in the earlier phases to help explore how to develop and optimize an approach, and quantitative approaches preferred in the latter stages to help identify reach and appeal of new ideas, and winning features and benefits.
Qualitative research, which includes focus groups and in-depth interviews are both well suited to testing and developing new concepts. In focus groups, a small, diverse group of consumers (typically 6-8) discusses the product concept, providing insights into their perceptions, preferences, and potential concerns. In-depth interviews allow for more detailed feedback from individual participants, uncovering nuanced opinions that might not emerge in a group setting. They may also be more appropriate if the concept in question relates to a more personal or sensitive subject e.g. health. In both cases these approaches help identify the strengths and weaknesses of a concept, guiding refinements and iterations. It is not uncommon for new product concepts to go through more than one round of qualitative testing, before being taken forward for validation in quantitative research.
Quantitative surveys are also essential during concept testing. By presenting the concept to a larger, more representative sample of the target market, companies can gauge overall interest, willingness to purchase, and potential market size. Statistical analysis of survey data can highlight demographic segments that are most likely to adopt the new technology, informing targeted marketing strategies and product positioning. Advanced analytics using approaches like MaxDiff and Conjoint helps in understanding consumer preferences by presenting them with different product attributes and asking them to make trade-offs. These approaches help to reveal the attributes or features of new concepts that are truly driving appeal. TURF analysis identifies the most effective combination of product features to maximize market reach, optimizing resource allocation and enhancing consumer satisfaction by targeting diverse preferences efficiently. You can read more about how advanced analytics can be used in market research at the Bryter Labs section of the website
Product Design
During the product design phase, market research continues to play a vital role. User-centered design principles, which place the needs and experiences of the user at the forefront, are paramount in this stage. Ethnographic studies can again be useful, this time focusing on how potential users interact with prototypes or mock-ups of the product. Observing these interactions helps designers understand usability issues and refine the product’s interface and functionality.
Focus groups and usability testing sessions provide direct feedback from users on specific design elements. Participants can test the product and provide insights on ease of use, aesthetic appeal, and overall satisfaction. This iterative feedback loop ensures that the product evolves to meet user expectations and delivers a seamless experience.
Quantitative research, such as conjoint analysis, can also be utilized to determine which features are most valued by consumers and how much they are willing to pay for them. This helps in making critical design decisions and setting appropriate price points that align with consumer expectations.
Pre-Launch Marketing
As the product nears completion, pre-launch marketing strategies are developed to create awareness and generate interest. Market research at this stage is used for crafting effective marketing messages and identifying the best channels for reaching the target audience. Segmentation analysis helps in understanding different consumer groups, their preferences, and media consumption habits. This ensures that marketing efforts are both efficient and impactful.
Quantitative surveys can measure brand awareness, brand perception, and the overall market readiness for the new product. These surveys can identify the most compelling value propositions and key messages that resonate with different consumer segments. A/B testing of marketing materials can further refine these messages, ensuring they are optimized for maximum impact.
Understanding Consumer Segments
Understanding consumer segments is essential throughout the development process. Different segments have varying needs, preferences, and barriers to adoption. For instance, early adopters of smart technology might prioritize cutting-edge features and innovation, while mainstream consumers might focus more on ease of use and reliability. Market research helps identify these segments, which products and features have the greatest appeal, and helps to tailor the product and marketing strategies accordingly.
Ethnographic research can uncover deep-seated motivations and barriers specific to each segment. For example, older consumers might have concerns about the complexity of smart devices and data privacy, whereas younger consumers may be more focused on aesthetics and design. By understanding these nuances, companies can design products that address specific barriers and highlight features that appeal to each segment.
Drivers and Barriers to Adoption
Identifying drivers and barriers to adoption is another critical aspect of market research in smart technology development. Drivers might include factors such as convenience, cost savings, enhanced security, and novelty. Barriers could include concerns about privacy, cost, technical complexity, and compatibility with existing systems.
Quantitative research methods, such as surveys and choice modeling, can quantify the importance of different drivers and barriers. This helps in prioritizing product features and developing marketing strategies that address these factors. For instance, if privacy concerns are a major barrier, the company can emphasize robust security features and transparent data practices in their marketing campaigns.
Qualitative methods, such as in-depth interviews and focus groups, provide context to these quantitative findings. They offer deeper insights into why certain drivers and barriers are important and how they influence purchasing decisions. This comprehensive understanding enables companies to develop products that not only meet technical specifications but also align with consumer expectations and alleviate their concerns.
Key takeaways
- Concept testing is crucial in the early stages of product development to validate ideas and ensure they meet consumer demand. Qualitative methods like focus groups and in-depth interviews help refine concepts, while quantitative surveys assess broader market appeal and identify key features.
- Advanced analytical techniques such as MaxDiff, Conjoint, and TURF analysis are used to understand consumer preferences and determine the most appealing product attributes. These methods help in optimizing product features and targeting diverse consumer preferences efficiently.
- Continuous feedback through various research methods ensures that product concepts are refined and aligned with user expectations. This iterative process involves multiple rounds of qualitative testing followed by quantitative validation, leading to well-developed and market-ready products.
03
Conclusion
In conclusion, market research is integral to the successful development of smart technology. From ideation through to pre-launch marketing, it provides critical insights that guide decision-making and ensure that the final product meets market needs. By employing a mix of ethnographic studies, focus groups, and quantitative surveys, companies can gain a deep understanding of consumer segments, identify key drivers and barriers to adoption, and develop products and marketing strategies that resonate with their target audience. This iterative, research-driven approach not only enhances the likelihood of product success but also fosters innovation and consumer satisfaction in the rapidly evolving smart technology market.
Market research in practice - Smart technology resources
To build a deeper understanding of how market research can be used for the smart technology category you can access the following downloadable reports based on a large dataset of consumers:
What’s holding back the connected home report
Learn about key drivers and barriers to adoption of connected home products
Get key insights into the smart appliance category, and which features and benefits consumers are most interested in
Understand the attitudes and behaviours of UK & US consumers towards smart watches and activity trackers
Key takeaways
- Market research is crucial at every stage of smart technology development, from ideation to pre-launch marketing. It helps uncover consumer needs, validate concepts, and refine products to ensure they meet market demands and have the best chance of success.
- Many consumers struggle to see the value, fear the technology, or find existing products lacking in real benefits. Understanding and addressing these barriers through thorough market research is essential for developing successful smart technology solutions that genuinely appeal to and satisfy consumer needs.