I want to know how many potential customers I have, and how many times a week my customers would use my product or service.
How this helps you
Here’s where your math comes in handy. Count the amount of potential customers in the region where you are active, multiply it by the times they will use your product or service, multiply it by the price they are willing to pay. There’s your potential market…
What is it?
In effect it is good old Market research. Basic analysis for you markeitng plan and it determines your business success in a great manner. The question is not only which target audience you should focus on, but also the size of that group.
How does it relate?
It is nice to know who your customer is and what he wants, however in order to be succesfull in business you want to make sure he is not alone. So before you get lost in service design, make sure it can make impact. Market potential is closely related to the success of your business model and therefor closely related to business model canvas.
Your next Waypoint
Do research and this can be desk research. Find out how big your target audience is, what is the likly hood of them paying for your service and how often will they do that. Competitors can also be of great help in providing this information in their annual reports or on their websites.