Let’s go through some examples of Qualification to find out what sells well online and what doesn't-
Example 1:
PRODUCT: Consumer-style Portable Hair Dryer
Demographic: The basic demographic for this product
would likely be women ages 15 and over of all income levels. While men do use
portable hair dryers, it’s fair to
assume that they are mostly purchased by women.
This demographic is very basic and wide. The product is
generally not very expensive, and a tremendous number of people use them.
On the surface, this seems like a Qualified product, but we
haven’t done a CIP Score yet.
CIP Score:
Market Segment = 0 points.
This is a Consumer product, not Prosumer or Professional, so
this gets 0 points for Market Segment.
Size = 0 points.
This product is well within weight and size limits for UPS,
FedEx, and USPS, so it gets 0 points for Size.
Integration = 0 points.
This product doesn’t
have to be integrated into anything else in order to work properly. Just plug
it in and use it. So, 0 points for Integration.
Visualization = 0 points.
This is a widely used product that most people are very
familiar with. There’s no need to
“see and touch” the product before buying, the point score for
Visualization is 0.
Urgency = 4 points
When we think about urgency, we have to think about how soon
someone feels the need to have the product in their hands. Let’s look at it this way: WHEN do women buy a new hair
dryer?
Usually when the one they currently have breaks.
How many women do you know who are willing to walk around
with bed-head while they wait 4 days or more for UPS to deliver their new hair
dryer?
I don’t know any.
The woman whose hair dryer just broke wants a new one NOW, and she’s going to scoot right down to
Wal-Mart or the nearest drug store and get a new one right away. So for me,
Urgency is a big negative impact on considering this product for sale online.
Total CIP Score = 4 points.
In this example, the Total CIP Score for me is 4 points.
Yes, I know that sites do offer hair dryers for sale online, but in my
experience that’s simply big
box stores who have the product in inventory anyway, and might as well list it
on their web sites.
What we’re
looking for here is a niche. We’re
looking to build an entire web site around one single product niche.
Do I think I could build a successful online store selling
only Consumer Portable Hair Dryers? No, because the Urgency score puts it out
of reasonable consideration for me.
How did I come to the conclusion that Urgency was a
factor?
Because I took the time to think about whom my Demographic
is. If my Demographic was mostly men, I might have given this product a lower
Urgency score, because men are often okay without a hair dryer for a few days.
They just need to know where to find the hair gel and a comb.
Women, though, react differently in that situation,
and that’s why the high Urgency
score.
Even though the Total CIP Score was not a 5, meaning
automatic disqualification, it's
high enough that it's not worth
messing around with for me.
Example 2:
PRODUCT: Build-in BBQ Grill Components
Demographic: These products are the grill, fridge,
drawer and shelf components that get built into an outdoor brick or stone BBQ
enclosure.
The demographic here is likely a male homeowner who earns a
mid to high level of income and does a fair amount of entertaining in his home.
He’s currently involved in some
type of outdoor home remodeling. He’s
probably not doing it himself, since stonework or bricklaying required to build
an outdoor BBQ enclosure is a specialized skill.
The particular demographic that would buy these products is
extremely narrow overall. I already know which way this is going to go just by
looking at the products and thinking about the demographic, but I’m going to do a CIP Score
anyway, because real business owners are nothing if not thorough!
CIP Score
Market Segment = 4 points.
This is a Professional product. It has natural gas fittings,
so it needs to be installed by a professional even if the buyer knows enough to
do the brick or stonework himself, so this gets 4 points for Market Segment.
Size = 0 points.
These are components shipped in separate boxes, so they are
well within weight and size limits for US, FedEx, and USPS, so it gets 0 points
for Size.
Integration = 5 points.
This product has to be fully integrated into a custom-built
enclosure made of completely different materials, so this one gets 5 points for
Integration, which is an automatic disqualification.
Visualization = 2 points.
This is a specialty product that will be built into a custom
enclosure. However, since I have to assume that most buyers are working with
professional installers and have probably seen samples and been given sizes, I
would score Visualization at 2 points.
Urgency = 0 points
This is a part of a construction project, and as such there
would not be much of a level of Urgency. Most people plan for delivery of
components in construction projects when they’re
ready, so I score Urgency at 0 points in this case.
Total CIP Score = 11 points.
In this example, the Total CIP Score for me is 11 points.
This is WAY over the disqualification score of 5 points.
Example 3:
PRODUCT: Airline Pet Carrier
Demographic: I see the demographic for this product as
about age 25 and older, since people who both own pets and tend to travel
enough to bring them along have a more stable home environment than people
under 25. Although we’d probably
be dealing with more women who would actually use the product, we’re probably dealing with more
men (husbands, likely) who would be making the actual purchase. That’s simply because most women
tend to defer to men to get the technical details figured out.
Nothing against women, who are more than capable of doing
that, but that’s just the
way it tends to play out and we have to be honest with ourselves about this
research if we’re going to
get it right.
This demographic would probably skew a little more toward
people without young kids, or kids living at home. People with young kids
living at home tend to travel more locally by car for vacations, and they tend
to leave their pets at kennels when they travel.
People who are older who don’t have kids living at home become much more attached
to their pets and want to take them everywhere they go.
So, while the demographic would include people 25 and up,
the actual buyers probably skew more toward men age 45 or higher.
This is also a product that has an emotional component to
the demographic, because of the often close emotional bond people develop with
their pets. That means that the likely buyer will often be willing to spend
more money to insure the comfort and safety of the pet.
On the surface, this looks like a Qualified product already,
but let’s do a CIP Score to be
sure.
CIP Score
Market Segment = 0 points.
This is a Consumer product, not Prosumer or Professional, so
this gets 0 points for Market Segment.
Size = 0 points.
This product is well within weight and size limits for UPS,
FedEx, and USPS, so it gets 0 points for Size.
Integration = 0 points.
This product doesn’t
have to be integrated into anything else in order to work properly. Let the pet
in and go! So, 0 points for Integration.
Visualization = 0 points.
This is a widely used product that most people are very
familiar with. There’s no need to
“see and touch” the product before buying, the point score for
Visualization is 0.
Urgency = 0 points
While it’s
possible that once in a while somebody would need an Airline Pet Carrier on
short notice for an emergency trip, that’s
not reason enough to give this product any points on the Urgency scale. Most
people who are getting ready to travel know well in advance, and buy their
tickets well in advance to keep their prices down. So I score Urgency at 0
points in this case.
Total CIP Score = 0 points.
In this example, the Total CIP Score for me is 0 points.
This is a perfectly qualified product with regard to Demographic and Points of
Failure.
Learn it and Use it!
Make absolutely sure you understand exactly how this process
works.
When you get involved in Market Research, the best practice
is to research several different product markets at once in order to choose one
new product line for your business. Use this process every time you get into
Market Research. It allows you to create a scoring system that can quickly and
easily compare the likelihood of being able to sell the product online.
Credit to worldwidebrands.com
