In this article, you will learn how to derive quantitative evidence for the unique value propositions of your product: understand the respective levels of demand and competition, and more.
Hey indiehackers! I will speak in the Product section of a large IT event in Russia. I took my presentation along with the speaker notes and laid it out as this post with slides and comments. The talk is 35 minutes long; the read will take you about 15.
The perspective: ‘if you’re a founder or a product person, this is how you can get demand and competition stats for your product from web search data.’ I’ve recently posted about demand from the Jobs-to-be-Done perspective, and this ended up as a hands-on follow-up 😌
I know right, if you’re a product person, you totally know this. I want to talk about this from a different perspective.
We can lower the rate of failure by surveying the market to assess the demand for products prior to their launch or pouring budgets into expanding the market share.
While Product folks know that sociology can be split into qualitative and quantitative, quite often professionals still refer to qualitative methods to validate demand. This is wrong by design.
People lie in interviews. Intentionally or not, they inject wrong information into your product development process.
There are ways to minimize the margin of error. Yet, if the qualitative foundation is built on wrong information, every next level multiplies the lies exponentially.
Seth Stephens also reflects on things like racism and sexism. If we look at facts from web search as pure data, those things are integral to our society.
Looking for ways to make passive income in 'digital shared thinking,' we encountered asking boyfriends for money. Is it sexist? Yes. However, it exists.
And, in a subjective in-depth interview situation, you won’t be given such an answer to a ‘ways-to-make-passive-income’ kind of question.
Keyword attributes are well known by every SEO specialist out there, but not necessarily by Product specialists. We use Ahrefs to derive those, but you can use the tool you trust.
Keyword Volume stands for the approximate count of (arguably) unique monthly searches. Keyword Difficulty is an index representing the level of ‘organic’ competition. CPCs are cost-per-clicks in Paid Search and can be used to assess the level of paid competition.
'Economists and other social scientists are always hunting for new sources of data, so let me be blunt: I am now convinced that Google searches are the most important dataset ever collected on the human psyche.' Seth Stephens-Davidowitz.
Thing is, we can today build and employ datasets to help better design and market our products.
We will use Value Proposition Canvas (or VPC) to form a semantic description of a product and its value propositions.
The awareness ladder will help us segment VPC items (audience) by the level of buying intent.
One thing is to discover the volume of existing demand, and another is to understand the consumer behavior within this demand.
Employing the Awareness Ladder, we can assess to which extent consumers are ready to purchase a product depending on the value proposition we convey.
The idea is to have a product-related search query formulated as if it was at a certain level of the Awareness Ladder.
Then, it’s about fetching related keywords and attributing them to that query followed by analyzing the keyword attributes of a derived ‘cluster.’
Let’s take the two Jobs-to-be-Done for a crypto trading platform:
While the latter is about a crypto-aware segment of the audience, the first one corresponds to a ‘higher-level’ job.
Simon Sinek once said that ‘if you focus on money, you make money; if you focus on impact, you make impact.’ That’s the case with our first Job-to-be-Done. It’s full of impact, and to get it done, one could employ an algotrading platform we’re talking about.
We formed the search queries so that the ‘passive income’ one is around the ‘solution aware’ step of the Awareness Ladder and the ‘crypto trading one’ refers to the ‘coldest’ audience asking their ‘what’.
Depending on the volume of data we want to fetch, we can aim for wider SERP ranges. This will also reduce the factor of ‘putting the most SEO optimized things first.’
At this step, we put each collected URL to the Ahrefs Site Explorer and derive the related keywords, export them as CSVs to use with Google Spreadsheets.
While the whole pipeline we’re discussing can be automated, it’s important to describe the step-by-step manual process, so that every product owner could run the manual assessment.
We used Google Spreadsheets and VLOOKUP with URLs acting as index to build the clusters.
We see that in the ‘digital shared thinking’ passive income is associated with investments, ease of getting the income, and income-generating assets.
Another good thing is that there’s no direct sign of the crypto industry: its penetration into the passive income space is fairly low.
However, the concepts positioned in the minds of the web search audience segment well correlate with the value propositions of a crypto trading platform. That makes the ‘passive income’ job worth looking into to acquire new audiences.
When it comes to the ‘crypto trading’ job, we immediately see the presence of branded keywords in the cluster.
From the perspective of Latent Semantic Indexing, this would mean that within the web search context, the Binance brand is connected with the very idea of crypto trading.
This indicates a higher overall level of competition with what-level keywords having their keyword difficulty rating at over 80 and CPCs way above zero.
It means that other brands on the market are already paying for ‘cold’ search traffic, meaning that they’ve already paid for ‘warmer’ audiences.
Note, the cluster related to the ‘passive income’ job also has lower average keyword difficulties compared to the ‘trade crypto’ cluster. It’s also a signal of a generally lower level of competition in the segment.
To assess the demand for a Job-to-be-Done in its full, we should look at the aggregate stats for all the levels of the Awareness Ladder.
To go for the demand, a crypto trading platform could roll out a dedicated landing landscape to test this acquisition hypothesis.
It brings us to the point where you’d require a budget to really test the hypothesis. Yet, there’s a ‘lean’ version too, it’s about running tests with your main and product pages copy.
To set up the experiment properly, you’d require to set up a testing framework (a Spreadsheet would do) and Google Optimize.
The case with a discussed crypto trading platform is about rolling out a vast landing landscape for search traffic. I’ll update you on how this turned out exactly.
Laying out aggregate statistics is useful to see the bigger picture.
Here, we see that large brands are simply buying the ‘most aware’ traffic with the highest level of buying intent.
We also see that the organic difficulty there is lower than average across the entire spectra of awareness levels — that’s a low-hanging fruit to apply content and SEO efforts.
There’s a catch though. Once your VPC contains over 24 elements, it’s painful to process everything by hand.
Also, what we compiled is a semantic kernel. And semantic kernels love to be filtered.
When you operate in the ‘sense’ domain, filtering involves heavy use of Natural Language Processing to handle the semantics.
There’s a next step.
Having your domain's semantic kernel, stats from product analytics, and the 'product semantic kernel' we're talking about, you can discover keywords that will bring qualified traffic to your product.
The traffic that propagates along your product funnel the same or better way than the existing one.
That part is optional and involves some coding. The approach is to:
Qualifying traffic based on the combination of your 'old' data and 'new data' is about forecasting the purchasing power of newly acquired traffic and enhancing your product and marketing strategies.
I’m thinking gathering a group of 5-6 founders or product specialists to set up a practice session, hit me up in the comments if you're in.
To dive deeper into the methodology, here’s a whitepaper in PDF 🧘
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