Demand to know your demand

by Greg Randall

There are so many free tools on the web which can help you build your online business and many people know which ones are the good ones. However, knowing there are free tools is one thing, but actually knowing how to use the tool to your advantage is where everyone falls down. So what is the value in understanding the demand for your product/service?

Google has a tool which can provide you clarity on how often people type in keywords or keyword phrases (this is a fancy way of saying the words people type into the Google search box) into the Google Search box each month. Why is this valuable?

Firstly, through Neilson’s only division, and the research they have compiled, we know that over 90% of Australian’s use a search engine to research a product or service before purchasing either online or off. We also know that Google as a search engine has 98% market share in Australia, meaning, everyone uses Google when they are looking for something online. These two statistics verify the demand data which comes from Google is an accurate representation of the opportunity for businesses.

The days of understanding your demographics are over. If you have a small business which specialises in Female Watches, for example, which market intelligence would you prefer to have in order to determine the opportunity for your offering?

Option #1. Females in Australia between the age of 22 and 35 are prone to spend $200 to $350 on a watch. They like dinner parties and social status is extremely important to them. They have a large discretionary income and focus at least 20% of their income on their appearance which includes jewellery. Watches fall within the jewellery category. This demographic is also likely to own 2 to 4 watches which denote different applications i.e. formal, casual, and sporty.

Option #2. In July 2010 the following terms were typed into Google:

• “Jewellery watches” – 450,000 times
• “Ladies watches” – 18,000 times
• “Bracelet watches” – 2,900 times
• “Ladies gold watch” – 2,400 times
• “Dkny ladies watch” – 500 times
• “Ladies sports watches” – 250 times

Which set of information gives you the power to make business decisions?? Which set of information can give you a plan to act on?? How would you know in the information available in Option 1 there is demand for “Gold watches”? How could you determine the popularity of the Dkny brand with the information set out in option 1??  You can’t.

My next article will dive deeper into how the information in Option 2 can become a strategic guideline in building your new website, and how it can drive your customer acquisition strategy.

BTW – the figures shown in Option #2 are real, so if you have a website which sells Ladies watches, enjoy the free consulting advice this article and the next one will deliver!!