When set to launch a new project, it’s wise to cover all bases from the outset. Too often, organizations spend significant resources launching new products, services or business models that are destined to fail. The last thing we want is for you to invest energy and resources without knowing where your new project or idea is heading. That is where our digital validation strategy comes in.
We don’t just rely on classic qualitative research methods, such as interviews, observational studies or other methods. Leveraging growth hacking tactics, we augment those common tactics by engaging with a statistically significant group of customers through online channels, to validate the desirability and viability of a new concept.
What are my customers interested in?
You can have the best-designed product or service in the world, but if you don’t know which value proposition is going to get your customers through the door, you’re setting yourself up for failure. To make your concept market-proof from the get-go, it is crucial to first determine which value proposition triggers your customer base. That is why digital validation is such an essential part of our approach to rapidly testing your business design.
First off, we run a trigger test with multiple value propositions based on qualitative customer insights. The ad performance will give us insight into which value proposition(s) outperformed others, and to what extent.
It might also indicate that we ought to shift our focus to a niche audience, or even adapt certain elements.
In short, market testing helps us to quickly gain insight into the desirability of your concept among different customer segments.
What is my customer acquisition cost?
Next comes the viability validation stage. We’ll be testing the viability of the prioritized value proposition(s).
In this example we’ll use a “smoke test” to determine:
- the conversion rate for the prioritized value proposition within your desired customer segment
- the indicative customer acquisition cost based on said values.
These numbers can be further optimized after a spin-in or spin-out of the concept. However, the data points obtained will give you a first indication of how engaged potential customers are with your concept and will give you crucial information to validate the viability of the underlying business model.
Why should you digitally validate your new product’s value proposition?
- It’s a highly efficient way of invalidating your business model, gaining insight into what doesn’t work, or will prove too costly.
- It’s scalable and can be tailored to your specific product or service, both B2C and B2B – start your digital validation process with just a few or a broad range of ads.
- Stay in control of your budget and gain valuable insights with a predictable investment amount – a relatively low-cost strategy for the turnout you’ll get.