Validating and Researching Any Market or Products Using Free Google Tools
Welcome to wilsonreuben.com site… today I will like to write on how to validate any business ideas or projects or minimum viable product, depending on how you wish to call it.
It is always wise to carry out effective niche market validation before ever embarking on any form of an entrepreneurial venture by simply making use of data and trends of consumers.
For the purposes of this post – I’d like to make use of 2 free Google tools to validate our business idea, project, or whatever you are getting into.
To get the best out of this article… I’ve broken this post into the following for easy understanding…
- What did it mean to validate niche market?
- Validate niche market with free Google Trends
- Validate niche market with the Keyword Planner
- Analysis of the Seasonality of the Demand
- Adjust the minimum expected demand (DME)
Our aim is to understand the following while carrying out our research on the particular niche we intend to get into using these free Google tools: Search Trend, Number of searches, and Seasonality of searches.
Why Use Free Google Tools And Not The Other Data Analytics Tools?
As you know, Google is the most used search engine on the planet whether you like it or not. By default, when anyone wants to look for information, Google is the first choice.
As a result, they (Google) have access to loads of information we can tap into in order for us to gain insight into the business investment we want to get into.
What Does It Mean To Validate A Niche Market?
Validating a niche market is like you trying to get informed about an idea before investing your money into the business or idea.
As a business-oriented person you are… you would like to have detailed and accurate information about your intended customers, and also to get to know if the idea can stand the test of time.
YES, some ideas are trending ideas that come and goes within a short period of time… while on the other hand, there are ideas that have been trending for about 10 years and they are still projected to trend in the coming years.
So without wasting much of our time – let’s get down to business by considering all the four (4) options of validating our business ideas or projects…
Validate A Niche Market With Google Trends
Google Trends is a powerful and free tool that anyone can make use to validate their ideas or projects so long you have a Gmail account. Google Trends provides information on trends search made by users but also on the seasonality of them. In addition, it allows comparisons between different search terms (keywords).
Let’s say you are interested in setting up a Pharmaceutical store in Lagos, Nigeria. The first thing you have to do is to enter Google Trends to analyze if that niche market is growing, maturing or in decline.
Trends have had statistics since 2004. If we enter the keyword “Probiotic” or “Sport” and filter by country “Nigeria”, we will see a strong growth trend in this market niche over time. As if this were not enough, Google Trends shows us an estimated demand forecast for the next 12 months.
Google Trends (search trends) for: “Probiotic” between 2015 and 2020 in Nigeria. It can be done for any locality or country. Includes forecasts for the year 2020 (dotted line).
In the following image we see how Google Trends helps us to validate a niche market in a certain locality or region:
We want to also obtain information about related searches as well. With this information, we can investigate a more thorough market and logically take advantage of all this for our web positioning strategy (SEO) in case you move forward with the project.
Want Recent Data You Can Use For Your Analysis?
Finally we can reduce the period analyzed to obtain recent data and analyze the seasonality of demand. This is how seasonal demand of products or services from Google Trends would look like:
Another classical example: seasonal demand for a female bags worldwide. The same seasonality is repeated every year. And the result, as you can see, this is something you can start taking advantage of right away.
Validate A Niche Market With The Keyword Planner
Another great tool for collating data for your niche market research is the keyword tools. Previously, you learnt how to validate a niche market based on the trend and seasonality of the product or service in question.
Now all we are interested in knowing is the volume of sales in absolute values. In other words, we will investigate the minimum estimated demand (DME) over time for our product or service.
But before continuing let’s see…
What is the Google AdWords keyword planner?
Google AdWords is the gigantic advertising system of Google. In it, advertisers create their ads and decide how much money to invest in certain keywords to appear in Google results or on the display network. An example of this is those ads that you see at the top and bottom when you search on Google.
Google AdWords exists within the Keyword Planner free to use, also known as keyword planner. At the beginning this tool was designed so that advertisers could know the estimated cost of keywords for their ads. As time goes by we start using it for SEO web positioning.
Today my idea is to use the keyword planner to validate a niche market.
Let’s continue with our previous example of setting up a pharmaceutical store that sells supplements… we will validate this market niche with the keyword planner.
We will segment our market based on:
- Product category
The image shows a possible planner configuration to obtain the first data:
We can even take into account the website of the competition (or ours) if necessary: By clicking on “Get Ideas” (image above) we will see something very similar to the following image:
Note: segmented market niche to display search volumes of the keyword “Pharmaceutical drug store” throughout Nigeria.
In this other image we can see the result only for Lagos Nigeria:
Segmented market niche to display search volumes of the keyword “sushi delivery” throughout Lagos Nigeria (+ Metropolitan Region) in other Africa countries.
We clearly see that the numbers decrease but on a small scale. We go from 1600 to 1300 monthly searches.
Other tool to replace the Google AdWords planner is SEMRush that allows you to perform up to about 20 searches for free each month.
Analysis of the Seasonality of the Demand
The bar chart above should only be used to analyze the seasonality of the service since it is the sum of the set of keywords related and suggested by Google. Also here we will find words that have sneaked out of other “Wears for men” niches or other “Men’s boutique in Lagos” geographical markets.
To validate a niche market with the keyword planner, we will take an estimated minimum demand of 1300 average searches per month. For products or services with high seasonality we will have to combine this metric with the results obtained before with Google Trends.
We position the pointer over the small icon next to our estimated minimum demand (1300) and this will allow us to see the number of searches per month of our keyword:
Positioning the cursor on the icon will display the actual searches per month of a specific keyword. Let’s perform other example demonstrating the power of Google keyword planner by searching for Biotin supplement in Nigeria.
For this we must introduce the most relevant keywords: Biotin supplement, biotin supplements for men and the same Planner suggests that users search for “anabol” as a related term. We include it.
The result is as follows. The seasonality of interest of biotin supplement in Nigeria (and the rest of the keywords) is as follows:
Example biotin supplements for men / men’s health supplements. This methods are what I also make use when planning my website constructions or that of clients as well.
Adjust The Minimum Expected Demand (DME)
This way of validating a niche market is based on information from Google user searches. To optimize the DME we must make some adjustments:
Google searches represent about 95% of total searches – to adjust the minimum demand, it is convenient to add that remaining 5% to obtain global searches.
Every Google search is not from a single consumer. Because a person repeats the same search in the same period on average twice, we must divide the DME by 2.
How to analyze the competition with the Keyword Planner?
To validate a niche market, take advantage of the keyword planner and analyze the pages of your competitors. This technique works best if the service or product is sold online or at least if the competition has a website.
What you just learnt in this post is powerful. Why? Because, it goes beyond just validating your business idea or projects; rather, it goes beyond that. It can be used to get to understand customer’s intents.
Secondly, whenever you intend to come up with a copy, you can make use of it to produce quality content. How? Because, you already know what your consumers are dearly in need of. Can you now see how powerful and useful this tool could be?
If done right, you will able to attract the right audience to your website without you having to try hard.
How does that sound?
What about in the case of new / innovative products, what do you do? In this case we will only obtain information about a problem that a user wants to solve. Since, these people wants to solve a problem so dearly and you have the solutions to that problem be it new product or not.
You can offer them good information about their challenges and show them how you could solve it for them by using your product to demonstrate your ability to solve their challenges.
And finally, these methods you’ve seen so far can also be used to analyze or validate a business niche that’s not worth your time, energy, and resource.
So far so good we’ve totally relied on free Google tools that we must learn to interpret before starting with more professional market studies in the case of moving forward with our project.
What do you think about this post on how to use free google tools to research any niche? Please share your thought with us
Until next time