How to design a winning product in 3 steps

Designing a new product that's different and right for a specific group of customers might sound simple, but nothing could be further from the truth. It's a process that takes time and dedication, and if done right, it will save you a lot of headaches.

I know it sounds complicated, but don't worry, I'll guide you through this process step by step.

"I just had an idea!", "I bet no one has ever thought of this before", "I have a product that everyone who tries it loves." These are phrases you hear over and over from enthusiastic entrepreneurs who feel their idea will change the world.

But that's exactly where the mistake lies.

Step 1: You need a problem to find a solution for, not a solution looking for a problem

The first thing we need to do is identify a problem we can solve with our capabilities — that solution could eventually become our product.

Start with the problem, not the idea, no matter how brilliant it seems to your friends.

It's not about inventing something nobody needs, but about finding an opportunity in the market where you can offer something better than what already exists.

Step 2: Research who has the problem and how they currently solve it

This means doing market research, but don't worry, it doesn't have to be expensive or require hiring anyone — you can do it yourself, and that's actually better, since it helps you understand the market firsthand.

First, find the people who have the problem and how they solve it. If they have different characteristics from each other, group them, segment them, and look at how they solve their problem — who they buy from, how your competitors solve the problem for them.

How do we do that? There are several ways, but one very effective one is simply talking to them.

Yes, just like you read it. Let's look for different types of customers, with different tastes and different life situations, and talk to them to see where the conversation leads. We can ask them open questions about their habits, preferences, and related problems.

Analyze the competition and everything they do to solve the problem: how they advertise, how they reach their customers, what their customers value about them, how much they pay, and so on.

Remember that at this point you've analyzed several types of customers, who buy different brands to solve the same problem, perhaps in different ways.

Step 3: Choose a customer you can sell to and a competitor you can beat

Now it's time to make strategic decisions.

From your conversations, you should gradually be able to identify people with similar interests and similar problems. That's where you make your first strategic decisions: what type of customer can I help? Can I create a solution that helps them better than the alternatives on the market?

Since we've already researched the different types of customers who share the same problem, and we know what they need, their desires and frustrations, we can decide on the type of customer we can help best, fastest, and/or most efficiently.

At this point, we select a customer type for the most logical reasons in the world: the one we can sell to most easily, serve best, and who has the potential to buy from us most frequently.

By choosing your customer, you've also chosen your competitor, so make sure it's manageable and that your capabilities can outperform them or at least keep them at bay. If you're not confident you can pull that off, you can always switch customer profiles.

Finally, you need to develop the chosen solution, tailored to the chosen profile, that outperforms the chosen competitor.

The process of designing a new product doesn't end here. You need to test the product with real users to check how it works and how well it's received.

You need to launch the product to the market and monitor its performance and impact. And you need to keep updating and optimizing the product based on market demands and industry trends.

As you can see, designing a new product isn't simple or fast. It's a complex, challenging process that requires a lot of research, creativity, and iteration. But it's also an exciting and rewarding process when you manage to create something different and right for a specific group of customers.