A big risk of creating a new software product is building something no one wants; something no one will pay for. You could spend a lot of time and cash only to realize some fundamental flaw in the product that prevents it from ever becoming a success.
This problem is especially troubling if you intend to release a product that doesn’t have any equivalents in the market, or a product that intends to disrupt existing markets.
Fortunately, you don’t have to release a product blindly. With product validation, you can confirm whether your product has a chance to be successful. Sadly, many organizations skip this step because it requires resources of its own.
In this article, we’d like to talk about what product validation means and how to do it.
Why you should validate your product
When you develop new products, you’re forced to make a lot of assumptions. If too many of those assumptions are wrong, you’ll end up with a product that no one wants to use or buy. Countless failed products are based on whatever their creators found interesting, rather than a solution to a real problem.
Identifying incorrect assumptions early is the only way to protect yourself. If you catch your bad assumptions early enough, you can pivot to give the product a better chance. Or, in the most extreme cases, you can abandon the product, thereby saving yourself time and money.
Validation is the process of testing those assumptions. It forces you to expose the product to real users to determine if your idea is any good. Ultimately, validation will help you resolve three assumptions:
The problem - Is there a genuine problem customers are facing that needs to be solved?
The market - Are enough customers willing to pay for the product?
The product - Does the product actually address the problem?
Image: Mind the Product
You may think you have a great idea or great technology, but self-validation is flawed. You can’t rely on your own intuition, even if you’re familiar with the market, industry, or customer. You will always be too close to your own product to think objectively about it.
Validation is especially important if you intend to raise VC money. Venture capitalists want as much information as possible that shows the product will be successful and that their investment is safe in your hands. If you can show evidence of validation to investors, you’ll get better reactions and (possibly) a better deal.
Software validation versus verification
SaaS validation and verification are interrelated processes crucial for successful product development. Software validation involves verifying that your SaaS product can meet user needs and expectations. The process requires performing tests that prove your software works well for real users to deliver value.
On the other hand, software verification involves verifying that you’ve built your SaaS product correctly and according to the stated product design and specifications. The process requires performing product reviews, inspections, walkthroughs, and tests throughout development. Without such checks, it’ll take longer for product teams to identify and fix errors. Skipping product verification also increases the risk of launching bug-ridden software.
In summary, SaaS software validation and verification help product teams deliver defect-free finished products. Such software is more reliable, functional, and capable of satisfying user needs and expectations.
7 software validation examples
Here are three successful companies that have used software validation to their advantage.
1. Calendly
Tope Awotona, founder of Calendly, validated his product idea through problem-solving. He started by first identifying a continuous problem affecting him and many others. The problem was he needed a more efficient way to coordinate and schedule online meetings and appointments. Since he couldn’t find a solution that satisfied his needs, he created one – a product that automates scheduling meetings for times that work for all attendees.
In essence, he validated his idea by identifying a problem that multiple workers and businesspeople were experiencing. Awotana then came up with a solution that solved that problem better than competitors, giving him a product that delivers value by satisfying user needs. Once he knew he had a product idea the market needed, he began product development.
2. Slack
Slack helps businesses and teams with internal communication. Even though the founders, Stewart Butterfield and Cal Henderson, knew they had a winning product idea, they didn’t jump into development without first validating their idea. Butterfield’s team validated the idea for Slack with a combination of prototyping and user testing.
They accomplished this by building an initial prototype used only by the Slack team. Once they ironed out the bugs in that prototype, they invited other teams to use the prototype. Butterfield’s team then used feedback from the users to improve their product idea and continuously iterate until they had a software version they could launch.
The team’s painstaking validation process helped them confirm that their product idea was worth building. It also generated buzz through word-of-mouth, helping Slack get 15,000 users within two weeks of inviting people to try the software.
3. Dropbox
Drew Houston, founder of Dropbox, validated his product idea with a much simpler and inexpensive tactic – Pre-selling. Houston created a minimum viable product (MVP) and a video explaining how the MVP worked for file saving and synchronization. He posted the explainer video on Hacker News with a link for users to join the waiting list for the private beta.
Houston’s goal with the MVP and pre-sale was to gauge user interest in his product idea. A high number of people joining the waiting list would indicate there was a market interested in using his product. And that’s exactly what happened, with up to 75,000 people joining the waiting list within days. The show of interest was the green light Houston needed to start developing Dropbox.
4. Uber
Lastly, we have Uber. The ride-hailing app validated its product idea by building an MVP to conduct market research. The MVP was a barebones app that only San Francisco drivers and riders could use.
Releasing the MVP helped Uber research the market and identify if there was sufficient consumer demand and labor force to achieve their business goals. The market research proved fruitful by showing drivers had an interest in making money during downtime. It also showed that riders liked the convenience of hailing a cab from the convenience of their phones. The combination validated Uber’s product idea, giving them the green light to flesh out their app and launch their product in other locations.
5. Buffer
Joel Gascoigne, founder of Buffer, validated his product idea using a minimalist approach. He started by creating a simple landing page explaining the concept: a tool to schedule social media posts. The page included a call-to-action for visitors to sign up and an option to see pricing plans.
When users clicked the pricing option, they were met with a message stating that Buffer was not yet available but inviting them to provide their email to stay informed. Gascoigne used this feedback to gauge user interest and determine if the concept resonated with his target audience. The initial response was promising, prompting him to build a basic MVP and refine it through user feedback.
6. Spotify
Spotify validated its innovative music-streaming model by offering a subscription-based service that provided unlimited access to a vast music library. The team focused on solving a key problem in the music industry: users’ desire for affordable, convenient, and legal access to a wide selection of music.
The Spotify team conducted extensive market research to confirm demand for an alternative to traditional purchasing models like CDs and digital downloads. They launched an early beta version in select regions, allowing users to stream music free with ads or opt for an ad-free premium subscription. Feedback from these early adopters confirmed that the product fulfilled a clear need, and the team iterated on the user experience to enhance accessibility and value.
7. IMVU
IMVU, a 3D avatar-based social networking platform, applied the lean startup methodology to validate its product. Founders Eric Ries and Will Harvey built a basic MVP to test their assumptions about user interest and engagement in virtual worlds. Rather than aiming for perfection, they prioritized rapid iteration based on real user feedback.
The team focused on identifying their audience’s needs by closely monitoring user behavior and conducting direct interviews. This approach allowed them to uncover design flaws and user experience issues early, which they addressed through frequent updates to the MVP.
How to validate a software product
Remember, validating a product means determining if there’s a problem to be solved, if there’s a market big enough to support the product, and whether the product addresses the problem. You should resolve all three assumptions before starting development.
There are plenty of ways for collecting product validation data for the software validation process that will help you understand those assumptions, but it is still imperative to follow an established plan that will lead you towards the success you want. Below, we outline ten actionable steps that combine proven methods and examples.
Step 1: Start with clear problem identification
Validation begins with identifying and clearly articulating the problem your product solves. Problem-solving is one of the most effective software validation methods. It requires identifying an existing, pressing, and continuing problem you can solve with your product idea.
Use surveys, interviews, and stakeholder conversations to confirm the problem exists and is significant. For example, Calendly succeeded because the founder solved a universal issue of scheduling inefficiencies, validating that the problem was worth solving.
Step 2: Define your target market and audience
Understanding your audience is as important as identifying the problem. Research your target users' demographics, behaviors, and pain points. Market research is crucial for validating a SaaS product. After all, you intend on penetrating the market with your product.
This step ensures your product addresses the needs of a sizable and underserved audience. If research reveals a crowded market, it may signal the need for a unique value proposition or a pivot. Either way, understanding your market and audience will allow you to make the right decision.
Step 3: Talk about your idea openly
One of the biggest mistakes product creators make is to keep their idea to themselves. Share your idea with industry experts, potential users, and stakeholders. By openly discussing your concept, you gain valuable feedback and uncover potential roadblocks early.
For instance, conversations with those in your industry may reveal overlooked challenges or opportunities. If someone tells you the idea is stupid, don’t dismiss them. Instead, find out why. Use their feedback to refine your idea. The more you share it, the better it will become.
Step 4: Explore competitive landscapes
Many people think it’s best to have no competition, but that’s not quite accurate. If similar products exist, it’s a sign someone else has already validated the need. Study competitors to identify gaps in the market or areas where they fall short.
For example, consider their reviews to find common complaints. If you can’t find any products similar to yours (addressing the same problem), that could be a sign that there’s no market for your product.
Another option is to sign up for your competitor’s product and explore the features yourself. You may find areas that are ripe for improvement, or altogether missing. And, be sure to check out their public roadmap to get a sense of where they are going.
Step 5: Use landing pages to gauge interest
Creating a landing page is one of the simplest and most effective ways to validate your product idea early. Your next step is to resolve those assumptions by finding real users. “Uh, my product doesn’t exist yet,” you’re probably thinking. “How do I get users?” A landing page serves as a placeholder for your product, showcasing its unique value proposition, benefits, and any key features.
Include a prominent call-to-action (CTA) on the page, such as a sign-up button, to collect contact information from interested users. For example, you can encourage visitors to join a waiting list, sign up for updates, or participate in a beta program. When they click the button, you tell them that the product is in closed beta right now, but you’re happy to add them to the waiting list.
If you already have an audience—like website traffic, social media followers, or email subscribers—you can direct them to your landing page to gauge their interest. However, if you don’t have an existing audience, consider using paid advertising campaigns on platforms like Google, Facebook, or LinkedIn to attract your target audience.
Here’s why this method is so powerful:
Interest Validation: The number of sign-ups or clicks on your CTA provides measurable proof of interest in your product.
User Insights: You can use the waitlist to learn more about the audience, their needs, and the market. These individuals are often passionate about solving the problem and can provide invaluable feedback through surveys or interviews.
Crowd Anticipation: Creating a waiting list builds anticipation for your product’s launch. Early adopters are often the most loyal and engaged users.
For example, Robinhood validated its trading app using this method. They created a simple landing page and encouraged visitors to join a waitlist. The high volume of sign-ups helped them confirm market demand and prepare for a successful launch.
Will people really go so far for a product that isn’t available? Yes, if the problem is painful enough for them. People will offer all kinds of free feedback, advice, and support if they think you’re working on a solution for them. (The whole crowdfunding industry relies on this phenomenon.)
By refining your landing page based on user feedback, you can adjust your messaging, highlight key features, and ensure your product resonates with its intended audience.
Step 6: Leverage prototyping for hands-on feedback
Validation through prototyping involves building an interactive mockup of your product and allowing users to test drive the prototype. This step lets you gather feedback on usability, functionality, and the overall experience before investing heavily in development.
Prototyping and user testing are also beneficial because they can help identify product ideas or design flaws you can tweak to achieve your desired results. The hands-on feedback also sets you up for a user centric design that will resonate with your target audience.
Step 7: Conduct direct user testing
Combine prototyping with user testing methods such as interviews, surveys, or focus groups. Let users test the prototype and collect feedback to verify if your product delivers value by fixing users’ pain points.
For example, Slack validated its usability by first testing internally and iterating before inviting external teams to provide further feedback. And we all know how that turned out.
Step 8: Test market willingness to pay
Pre-sell your product to validate demand and price sensitivity. The software pre-sale validation technique involves offering your product to prospects before fully developing and launching it. A large number of prospects swarming and engaging with your offering indicates a healthy demand and a willing market for your product.
Be transparent that the product is not yet available and offer incentives such as discounts or exclusive features. Dropbox’s pre-sale success with its MVP video demonstrated market interest and provided a strong signal to proceed with development.
Another less popular example of a SaaS company pre-selling before development is Simple.ink. Simple.ink used pre-sales to test the viability of their product idea and gather valuable feedback. It also used the tactic to generate initial revenue to fund further development of its product.
Step 9: Launch small-scale pilots or limited trials
Smoke testing helps verify if you have a feasible product idea – a product that can serve its intended purpose in the real world. Launch your product with a subset of your target audience to test feasibility and usability. Uber used this approach effectively by piloting its app in San Francisco before scaling.
A successful test will validate your product idea, green-lighting you to continue development. A failed test will save you a lot of time and money.
Step 10: Iterate based on feedback
Validation is an ongoing process. Apply what you’ve learned at each stage to refine your product. Use feedback from landing pages, prototypes, and pilots to make adjustments and enhance user satisfaction. Every piece of user data is an opportunity to improve and ensure your product aligns with market needs.
And remember that people and technology continue to change. So what is working now is not guaranteed to work later. Your audience will expect you to anticipate this and adapt—or they will abandon you for something that better addresses their needs.
Going forward
There's no method of product validation that's 100% accurate. There will always be people who will promise that they will buy the product, but never do once it's available. You will even run into people who pre-buy the product and then cancel once it's released.
But validation is a key part of the development process. If you skip this, you risk wasting time and effort building a product that nobody wants to buy. It's better to test your assumptions as early as possible so you can pivot or abandon the product if necessary.
Building a SaaS product? Hire our product discovery team and kickstart your business with a validated prototype.
