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.
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.
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:
For more intensive market research projects where you want to know how consumers value the individual attributes of your product/idea, a conjoint analysis may be more appropriate to optimize your product development.
Running your concept test doesn’t have to be difficult, but it is important to follow a few best practices:
Now that you’ve got the know-how, it’s time to take the next step!
Explore all of our automated market research solutions for concept testing and beyond to analyze your data more efficiently and gain reliable consumer insights.