How to Do Market Research for a SaaS Product
2026-02-19 · 24 min read
Effective SaaS market research is the difference between building a product that thrives and one that flops. Yet many indie hackers skip this step entirely, relying on gut feeling instead of data. The good news: you don't need a huge budget or a research team. Here's how to do it yourself.
Start With the Market Size
Before anything else, understand how big the opportunity is. You don't need exact numbers — a rough estimate is fine. Search for industry reports, check how many people search for related terms on Google (use Google Keyword Planner or Ubersuggest), and estimate how many potential customers exist.
A common framework: TAM (Total Addressable Market) → SAM (Serviceable Available Market) → SOM (Serviceable Obtainable Market). Even a rough estimate helps you understand if the market is worth pursuing.
Analyze Your Competition
Competition is a good sign — it means there's demand. Study competitors thoroughly:
- List all direct and indirect competitors (search Google, Product Hunt, G2, Capterra)
- Analyze their pricing — what do customers pay and for what features?
- Read their reviews — what do customers love and hate?
- Study their positioning — who are they targeting and what's their unique angle?
- Check their traffic with SimilarWeb or SEMrush to gauge market interest
- Look at their job postings to understand growth direction
Understand Your Target Customer
Create a detailed profile of your ideal customer. What's their job title? What tools do they currently use? Where do they hang out online? What's their budget? The more specific you are, the better your product and marketing will be.
Validate Demand With Search Data
Use keyword research to see if people are actively searching for solutions. High search volume for problem-related queries is a strong signal. Also check Google Trends to see if interest is growing, stable, or declining.
Mine Communities for Insights
Online communities provide qualitative data that surveys can't match. People on Reddit, Twitter, and niche forums share unfiltered opinions about tools, workflows, and frustrations. This is where you find the nuances that make your product stand out.
Put It All Together
Compile your research into a simple one-page document: market size, key competitors, target customer profile, validated pain points, and your unique angle. This becomes your product strategy foundation. Revisit and update it as you learn more from customers.
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Get Lifetime Access →Frequently Asked Questions
How much time should I spend on SaaS market research?
Spend 1-2 weeks on initial research before building. This should include competitor analysis, customer interviews, and demand validation. Continue lighter research ongoing as you build and launch.
Do I need to pay for market research tools?
No. You can do effective research with free tools: Google Keyword Planner, Google Trends, SimilarWeb (free tier), Reddit, and direct customer conversations. Paid tools help but aren't required.
What if there are no competitors in my market?
No competition often means no demand. Before celebrating, verify that the problem exists and people are willing to pay for a solution. Sometimes the market just hasn't been discovered yet, but more often it means the opportunity isn't viable.