How to analyze product requirements as a product designer
To succeed in the design world designers should embody the ability to think independently while being decisive and logical. In the early stage of product development—requiring analysis—these skills are essential. Through focused involvement in this process designers improve their understanding of project targets and recommend more tailored and original design solutions.
The analysis of requirements falls on every function rather than just product managers. Although tech enterprises assign duties based on skill sets each person must focus on balancing user satisfaction with business priorities. This thorough method guarantees the product advances effectively.
Requirement analysis by designers involves both selection of features and a direct effect on their later design decisions. Any modification to features changes user behavior in the application and subsequently shapes the user experience. Designers have to analyze the importance of each requirement for the information framework and user experience journey.
Where do product requirements come from?
Product requirements can originate from various sources:
Product manager planning
User feedback
Data analysis results
Market trends
Designer's creative inspiration
To create new ideas well it is necessary to assess their worth genuinely. Use these three key questions to analyze any new requirement or idea:
Is this requirement of enough worth? (Value assessment)
At this moment of time what is the importance of this requirement? (Priority ranking)
How well do we need to satisfy the needs of our users? (Core experience definition)
When responding to these inquiries we guarantee that our design options are both creative and helpful in addressing user and business interests.
Definition of value
In product design and development, value is primarily reflected in two aspects: the worth a product holds for its users and the value it adds to the business. The ability of a product or service to fulfill certain user requirements is called user value. The main objective of requirement analysis is to assess the value determined by users and businesses in detail.
Even when the current requirement goal is to expand the user base (e.g., attracting new users, increasing active users, or improving retention rates), it still aims to achieve long-term business value. This approach mainly applies to profit-oriented enterprises, while non-profit organizations may focus more on other goals such as "social impact."
1. User Value Assessment
Who are the users? What are the scenarios and problems?
Conducting requirement analysis at the individual level is easier. When requirements stem from user feedback, we can trace them back to specific users and gain a deeper understanding of their particular situations and usage environments.
Example: HelloTalk, a language exchange mobile application
This product helps users resolve their inability to communicate directly with native speakers during the learning of a foreign language. To gain deeper insights, consider asking:
What makes users select the chat platform HelloTalk above similar language learning options?
Why do users prefer speaking with native speakers instead of depending on educational materials or instructors?
What desires of users go unaddressed in the language communication process?
Refined value definition:
Meeting the requirements of foreign language learners through instant communication with native speakers to seek solutions for problems in language practice (learning needs), accuracy in cultural understanding (cultural needs), and experiencing feelings of loneliness or boredom (emotional needs).
What to do when you can't reach real users?
When requirements stem from market trends or technological innovations, adopt a reverse analysis approach:
Identify potential beneficiary user groups
Analyze specific scenario needs this requirement might meet
Assess the risk of user churn if this requirement is not implemented
Estimate the proportion and value of potential user loss
2. Business value assessment
Will users pay for this new product/feature?
To assess the likelihood of user adoption and increase their willingness, consider:
Clearly define the user value brought by the product
Analyze how users evaluate product value
Study how users currently solve problems and assess the investment required to switch to new solutions
Example: HelloTalk vs. Traditional Methods
When comparing costs, use a multi-dimensional analysis method rather than simply comparing overall costs. Based on this analysis, HelloTalk demonstrates significant advantages in efficiency, economy, and user experience.
For highly innovative projects without direct "old solutions" for comparison:
Gain an in-depth understanding of the target user group
Collect as much relevant information as possible
Consider implementing a Minimum Viable Product (MVP) strategy to collect data and estimate project potential
How many users will pay for it?
Evaluate potential revenue using the formula:
Revenue = Customer unit price × Number of paying users = Customer unit price × Number of visiting users × Payment conversion rate
When developing new paid features, make data estimates:
Estimated daily exposure of the feature in a specific location
Revenue estimation based on similar click-through rates and payment conversion rates
Sufficiency of expected revenue to support required development resource investment
For user base expansion goals, replace "revenue" with the number of users or other key indicators.
When lacking historical data or facing brand new experiences:
Clearly define the target user group, usage scenarios, and problems to be solved
Evaluate the cost users need to pay to acquire the new experience
Use the process of elimination to select the most likely successful solutions
Priority
Priority can be divided into two levels:
Prioritization among product requirements
Prioritization of feature scope
Example: HelloTalk's live streaming feature
When implementing a new feature like live streaming:
Examine the total and ranging functionality available.
Calculate important aspects crucial for addressing the fundamental needs of users.
Assess the ways in which users move through distinct roles.
Rank the degrees of difficulty and significance of features for every stage.
To thrive in today’s market speed to market matters much. Concentrate on main characteristics and uphold quality standards while reacting swiftly to customer requests and market inclinations.
Conclusion
A detailed skill set is necessary for requirement analysis that involves a broad view and sound judgment. Approach ideas with spreadsheets and mind maps to effectively visualize them. Delay the process of designing user interfaces when you receive details about what products are needed.
Conduct detailed study and develop strategic strategies to guarantee the end product meets user demands and business goals effectively resulting in stronger and better solutions.
