The word Evaluation already suggests to the mind careful observation or examination to conclude the performance and effectiveness of a thing within a given period and context. When placed with the word ‘Product’, then we know what direction to turn.
Product Evaluation is the constant and thorough analysis of your product’s performance. A lot of work goes into product development in areas of research and design, and this work does not come to a halt at product release. There has to be a continuous observation of the product and its reception in the market.
Why Product Evaluation?
A lot of things can go wrong with a new product. As people interact with the product, glitches that were not apparent during design and development will appear. Consequently, there will be the need for modification and eventually the development of a new product.
However, product evaluation is not only about looking for what can go wrong. Every day, consumer behaviour is evolving, and market demand is changing. As innovations come up to address a problem, they create a new problem, expose new needs or turn out to be ineffective in satisfying the initial demand. A product must be evaluated from time to time to determine its continuous demand and relevance. It is a waste to continue investing in the production of a product with declining demand. This decline could be a result of innovation or a shift in consumer behaviour. Check if your product meets the need it was created to meet and listen for feedback on possible improvements.
Also, since product evaluation centres around relevance, market reception and consumer behaviour trends, it is an effective way to remain at the forefront of your market. It gives you ideas on a new product to develop to meet emerging demands and how to ensure your product remains at the top with timely feature updates and modifications.
The Redbiller Confirmation Log system was set up to deal with failed transactions and speed up Reversal. The CLS seemed like the perfect answer until we got feedback that it’s stressful and time-wasting to log the transaction status manually. Plus, you have to check back from time to time to do that. In response to this, the CLS was updated to become an Auto-CLS, which logs and confirms transactions automatically. This is one of the many stories and advantages of product evaluation.
Product evaluation is not just random product research to stay on track. It is imperative to allow the following questions to guide you.
- What do your customers say about your products?
- Why do they buy it from your company and not from the competitor?
- What kind of product development do your customers expect from you in the coming months and years?
Conducting Product Evaluation
The Conversion Funnel: the number of leads generated is an indicator that your product has your target market desirability. Leads can be determined by the number of engagements on your website. Google Analytics is a good tool for gathering data on people’s interactions with your platform.
Product Activation: not all Leads result in sales, but a high activation rate is a reliable way to determine continuous demand and product relevance to consumer needs.
Customer Retention: a periodic review of your customer data also gives you insight into your customers' continued interest in your products.
Product evaluations don’t just guide further and new development. It also informs marketing efforts and improves customer experience.