Market Validation
Test before you invest_
Daybreak Digital helps you shape and execute your launch strategy, guided by data. We use all competitor and consumer data available to secure a successful product launch. And yes, we’re also willing to tell you the truth if our Market Validation Framework points out that a product/market fit is not likely.
The Daybreak Validation Framework
Inductive Analysis
During the first step, we gather all available information on your (new) business using our onboarding roadmap. All information already available on your proposed customer segments and their buying reasons will be collected using an inductive approach to guide our models. Also, we connect our systems to secure smooth data gathering and result generation, so you don’t have to worry about this during the next steps.
Competitive Analysis
For this phase of the Market Validation Framework, we use all information available on the web to discover who your main competitors are and how they conduct their business. We will research their customer base, what channels they reach them, what offers they propose to them and against what costs. This step is all about discovering your competitors’ strategy and performance to beat them.
Data Driven Testing
After conducting both the inductive and competitive analysis, we formulate hypotheses about possible combinations of channels, audience, campaigns and offerings. We cross-test the hypothesised varieties in multiple iterations, each time dropping the funnels that do not work and further testing the seemingly possible combinations. This makes sure that we leave no potential on the table but use all data available.
Financial Analysis
Based on the inductive analysis, competitive analysis, and data-driven tests, we analyse all acquired data to make significant statements about the CLTV (customer lifetime value) and the CAC (consumer acquisition costs). This will provide insights into how financially viable the product or business under analysis is and how much startup costs you will need to compete in the market.
Business Decision
In the final step, we use all information collected to deliver an extensive report to help you make your business decision with as much certainty as possible. It includes all data we gathered about your competitors and your audience and will give you concrete information to guide your business decision with increased confidence.
