How can you use root cause analysis to identify gaps in the market?

Root cause analysis (RCA) is a method of finding and solving the underlying problems that cause specific symptoms or effects. It can help you identify gaps in the market by revealing unmet customer needs, pain points, inefficiencies, or opportunities for improvement. In this article, you will learn how to use RCA to find and validate market gaps, and how to use them to create innovative solutions.

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1 What is a market gap?

A market gap is a situation where there is a demand for a product or service that is not currently met by the existing supply. It can be a result of changing customer preferences, emerging trends, technological advances, or social or environmental issues. A market gap can also be a niche or a segment that is underserved or overlooked by the current competitors. Finding and filling a market gap can give you a competitive advantage and help you create value for your customers.

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Francesca Torrigiani

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Building ways to create open conversations with your clients is essential to review your services/products and anticipate the competition. Needs tend to reveal themself in the day-by-day exchanges, and a product manager has the tools to grasp these subtle signs and be on the market at the perfect time.

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2 How to use RCA to find market gaps?

RCA can help you find market gaps by asking why questions to dig deeper into the causes and effects of a problem or a situation. You can use different tools and techniques to conduct RCA, such as the 5 Whys, the Fishbone Diagram, or the Pareto Chart. The goal is to identify the root causes of customer dissatisfaction, frustration, or unfulfilled needs, and to explore how they can be addressed or eliminated. For example, you can use RCA to find out why customers are unhappy with a product or service, why they switch to a different provider, why they do not use a certain feature, or why they have a specific problem.

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Francesca Torrigiani

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You can start with what went wrong and then review what you missed. Often, it is just one of the variables: - What is the product that your target wanted? - Do you think you're answering the right question with your product/service? - Is your audience and the price point aligned? Are you targeting the right segment? And so on... Or could you start from what went right: Is this need only related to this target audience, or are there some similar needs we can satisfy with our product or something similar? Going deeper into why a specific need arises is always a successful move.

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3 How to validate market gaps?

Once you have identified potential market gaps using RCA, you need to validate them by testing your assumptions and hypotheses with real data and feedback. You can use different methods to validate market gaps, such as surveys, interviews, focus groups, experiments, or prototypes. The aim is to gather evidence that supports or rejects your ideas, and to measure the size and attractiveness of the market gap. For example, you can use surveys to quantify the demand and willingness to pay for a new solution, interviews to understand the customer motivations and expectations, or prototypes to test the usability and feasibility of a new product or service.

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4 How to use market gaps to create solutions?

After you have validated the market gaps, you can use them to create solutions that solve the root causes of the problems or situations that you have identified. You can use different frameworks and tools to generate and evaluate solutions, such as brainstorming, mind mapping, SWOT analysis, or the Business Model Canvas. The aim is to come up with innovative and viable solutions that match the customer needs and preferences, and that differentiate you from the existing competitors. For example, you can use brainstorming to generate as many ideas as possible, mind mapping to organize and connect them, SWOT analysis to assess their strengths and weaknesses, or the Business Model Canvas to define their value proposition and revenue streams.

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5 How to use RCA to improve solutions?

RCA is not only useful for finding market gaps, but also for improving solutions once they are launched. You can use RCA to monitor and evaluate the performance and impact of your solutions, and to identify and resolve any issues or challenges that arise. You can use the same tools and techniques that you used to find market gaps, but with a different focus and perspective. The goal is to find out what works and what does not, and to make adjustments and improvements accordingly. For example, you can use RCA to find out why customers are satisfied or dissatisfied with your solution, why they recommend or do not recommend it, why they use or do not use it, or why they have a specific feedback or suggestion.

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Francesca Torrigiani

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Sometimes, the product is okay, and you see a positive reaction, but it could be better. Going back to the fundamental questions, "Why do you need this?" or "What problem do you want to solve?" can shed some light on what you missed and make your services/products better.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use root cause analysis to identify gaps in the market?

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1 What is a market gap?

2 How to use RCA to find market gaps?

3 How to validate market gaps?

4 How to use market gaps to create solutions?

5 How to use RCA to improve solutions?

6 Here’s what else to consider

Problem Solving

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How can you use root cause analysis to identify gaps in the market?

1

2

3

4

5

6

1 What is a market gap?

2 How to use RCA to find market gaps?

3 How to validate market gaps?

4 How to use market gaps to create solutions?

5 How to use RCA to improve solutions?

6 Here’s what else to consider

Problem Solving

Rate this article

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