It’s a well-known fact that around 95% of all new ideas fail.
From Colgate’s foray into frozen kitchen entrees in the 1980s to Heinz’s memorable “EZ Squirt'' colored ketchup, not even the largest brands are immune to spectacular failures. But it’s not just products, new advertisements, branding, logos, and messaging can all similarly fall victim.
So why is the rate of failure so high? And what can you do to mitigate your risks? Often, the answer is simple: know your audience.
While there are a variety of reasons why an idea may not succeed, poor decision making and lack of market orientation can be large drivers. Both of which stem from a brand not quite understanding what their audience loves, and what they could do without. This is precisely where concept testing comes into play.
What is Concept Testing?
At its core, concept testing is the process of evaluating an idea to better understand how it will be received by consumers before it hits the market.
Concept tests allow you to ask consumers how they feel about your new idea, providing you with direct feedback on its viability. Not only does the information from concept testing help you avoid costly mistakes, but the insights gleaned can also help you further develop your idea and go-to-market strategy.
Concept testing plays a major role in the trajectory of a new idea, providing insights and eliminating the risks associated with sub-par market research. While your team might think their latest idea is genius, the opinions of your target audience are the only opinions that truly matter.
If they don’t see the value in your idea during testing, they definitely won’t see the value once it’s released.
By concept testing your ideas first, you can better understand consumers' likes or dislikes and adjust course accordingly, repeating the process until you hone in on the best possible version of your idea. While this process can extend development timelines, it also eliminates the time you would have wasted chasing the production of a poor idea.
Because most concept tests can be done via online consumer survey platforms there is a high degree of flexibility. This means you can easily gather feedback on many facets of your idea, from pricing to style, allowing you to perfect every last detail before release.
When Should I Run a Concept Test?
Ideally, you should run a concept test for any major new idea or change to your products, pricing, services, or messaging. All kinds of challenges can be solved or averted entirely with the right kinds of research.
Generally, businesses use concept testing to compare new products, pricing, or brand messaging. However, the benefits of concept testing are not unique to these circumstances. Here are a few other scenarios where a concept test could be helpful:
Further Develop Ideas: So you like your idea, but what about your target audience? By running a simple concept test, you can utilize valuable consumer insights to tweak and perfect your idea, ultimately upping the likelihood of breakout success;
Eliminate Poor Ideas: While it may seem like a given, you can learn quite a bit from eliminating low-potential ideas. Often you can learn why these ideas fell flat with your audience so that you can avoid making similar mistakes in the future;
Perfect the Marketing Strategy:Once you’ve identified your high-potential consumer segments, you can also learn what makes your idea valuable to them, whether it be specific features or pricing. With that knowledge, you can remove the guesswork from your marketing and meet your audience on their terms.
Running your concept test doesn’t have to be difficult, but it is important to follow a few best practices:
Gather Stakeholders: To kick off the process, meet with the relevant stakeholders to brainstorm all of the concepts you would like to test. This meeting is also a great opportunity to set the parameters for your test, such as the number of concepts, sample size, budget, and survey methodology.
Set Specific Goals: Define clear objectives and goals. Think about the purpose of this test and the specific details you’d like to gather from participants. What kind of data would be most helpful for your decision-making process? How are you planning to analyze the data once collected? What kind of response do you want to get? Setting these intentions early on provides a point of reference for all of the stages yet to come.
Choose the Right Methodology: While your sample and the items being tested are often top of mind, the design itself is equally crucial to success. Two of the most popular survey methodologies are monadic testing and sequential monadic testing.
In a monadic test, your target audience is split into multiple groups. Each of these groups is then shown one of the concepts and asked for their opinions on specific features they like or dislike. Because only a single concept is shown per group, you can ask more follow up questions to get in-depth insights without compromising the survey's length. Because the audience is broken down into smaller groups, you will often need a larger sample size, which can raise your cost. However, if you only have a few concepts to test or are not on a tight timeframe, monadic testing might be best for you.
Conversely, sequential monadic testing shows respondents two or more concepts presented in a random order to avoid bias. Each concept is followed by the same correlating questions to gather data. While this type of testing often demands a longer survey length, the sample sizes can be smaller and you can often glean consumer insights from the respondents’ comparisons of each concept. If you have many concepts, limited metrics, or a smaller budget; sequential monadic testing might be right for you.
Build the Survey:At the outset of your survey, make sure to provide participants with some context about what they can expect from the experience. Next, include high-resolution visuals (images or videos) and clear text that describe your concept.
Always present these in a consistent manner to avoid any potential bias. For the questions themselves, refer back to your visuals and text often to remind respondents which concepts you are referencing in each question. Additionally, consider using Likert scales to allow respondents to rank their opinions. Not only does this help to create a consistent structure, but the type of data collected enables automated analysis.
Field the Survey: Depending on the types of concepts you are testing and your available budget, the audience you target may vary. If you’re a smaller company with a low budget simply looking for some initial reactions to your idea, consider fielding your survey to trusted co-workers, connections, and friends. This can be a great (free) way to gather feedback and further develop your idea.
If you are looking to add new features to an existing concept, introduce a new pricing model, or change your branding, field your survey to loyal customers first. While you may still want to send your survey out to a larger population later on, the insights gleaned from your loyal supporters can be extremely valuable.
If you are developing an entirely new concept you will most likely want to choose a sample representative from a survey panel provider. To get the most relevant data, the sample should be representative of your target audience, which will then inform the ideal sample size. For example, if you are interested in learning about a concept’s appeal across the United States, the sample size will need to be large enough to account for the populations across each state. In this scenario, a sample size in the thousands would be most appropriate. Conversely, if you’re interested in learning about the appeal of a concept among millennial females living in Austin, Texas, your sample size can be as small as 200 respondents.
Analyze the Data: Once you’ve collected all of your responses, it’s time to turn them into insights! The first step is simply ranking the overall performance of each concept. Which performed best overall? What concept was a flop? From there, think of different market segments or groups that are important to your organization. Was their preferred concept different from the overall winner?
From there, you can drill down even deeper to compare the data and filter for variables that are important to you. These can be as simple as demographic variables, like age, gender, or ethnicity. Or, you can filter for "control" variables, like those who eat healthy v.s. those who don't.
As a general tip, think about each of the multiple-choice questions in your survey. Often you can rely on these to filter, compare, and contrast different audiences- allowing you to build personas based on them.
Now that you’ve got the know-how, it’s time to take the next step!