Here’s All You Need to Know About Concept Testing
Does the term ‘concept testing’ sound a bit impractical? If you need to find out how concept testing can help with product development or assist in that big launch you’re planning, read on.
In this blog, we’ll cover:
1) What is concept testing?
2) Why is it so important?
3) A real-life example of how concept testing is done
Remember, concept testing is all about de-risking a product. But why is it so important? Because 95% of all product launches fail. In fact, marketing journals are littered with examples of products/services that couldn’t deliver the desired results when they hit the market.
For example, Juicero came up with a juice maker that had a Wi-Fi connected to it. While it wasn’t indicated as a need or want, the investors felt that pumping a staggering $120 million will do justice to their investment. Unsurprisingly, Juicero ran out of juice in under two years.
Thanks to concept testing, one can avoid this type of failure. By conducting concept testing at the ideation phase, you’ll be able to develop your idea in a controlled and safe space with the target audience before spending your dollars on development.
What is concept testing?
Concept testing is a research method that involves asking customers questions about your ideas and concepts for a product/service ahead of development. By gauging your customers’ willingness to buy and their acceptance, you’ll be able to make critical decisions just before the product launch.
Why is it so important?
Concept testing allows you to test out any idea before developing it and making it available to your customer base. While you may think that your idea is out of the world, your customers may have a different opinion—and their opinion is the only one that matters. If they don’t like your idea in the testing phase, it would probably flop in mass production. With concept testing, you can avoid launching unsuccessful and ineffective developments and campaigns.
Flexibility is another benefit that comes with concept testing. Since the majority of tests use surveys to acquire customer feedback, you can literally question your customers regarding any aspect of the idea. This may include elements like style, price, tone, etc. That way, you can review minute details about the product before making it available to your customer base.
Almost every business can perform concept testing. Let’s look at how Tesla used concept testing to evaluate their ideas.
Concept testing: An example
In 2017, Tesla’s concept car was approved by the participants. The participants of this concept testing were introduced to Model 3 of Tesla.
After learning about this smart car's features, the participants were given the option to put the vehicle’s deposit down in writing. Clearly, the test was successful as Tesla was able to raise roughly $400 million for its project and development. By eliciting its customers' opinions, Tesla collected financial resources and valuable customer feedback to execute any necessary changes.
Partner with D Laer and take a human-centric, market-oriented approach to product/service design
With D Laer’s concept testing, you can improve your ideation and product development strategies, reduce the time needed to launch and market your product and keep your customers satisfied. Give us a call now to learn more about our effective and efficient concept and design testing. We also offer prototyping and product management services.