Launching a new product or modifying an existing one is scary. 80 percent of the 30,000 new consumer products launched each year fail. With that said, a new project has the opportunity to create a new revenue stream for your business or grow your audience exponentially.

When done properly, concept testing can provide you with a wide range of benefits. Here are some questions answered when concept testing is done correctly:

  • Are product benefits being articulated properly?
  • Does the consumer understand how this product can be used?
  • Is the product’s packaging achieving its goals?
  • How might we optimize the advertising around this product?
  • How can our sales team most effectively sell this product?
  • What product information should be included on the packaging?
  • How should this product be distributed?
  • What is the optimal price for this product?

From finding the right approach for screening early-stage ideas to identifying key dimensions for your product’s success, there are a few key points brands need to understand about concept testing. This article walks you through some approaches you can take to maximize your concept testing results.

1.) Plan for Quicker Product Development

In the pharma industry, where development timeframes allow for repeated testing over the course of 3-5 years, product testing follows a stage-gate based approach. This often entails a series of up to 6-7 well-defined stages and milestones.

CPG companies used to operate in a similar way. Nowadays, these companies have become more agile, with flexible manufacturing systems and principles, such as lean development. Their process of product development and testing has also become much faster and manufacturers can now start testing almost immediately. This translates to a much shorter time span, of 2-6 months, rather than several years.

2.)Test Iteratively

The time required to run a concept test using traditional methods usually means restricting yourself to 2 or 3 testing stages instead of 6-7. Automation allows for a truly agile vision of test and learn at every stage, where brands benefit from the rigor of iteratively testing initial ideas, features, and benefits.

In doing so, they can create the product that will maximize appeal for their target audience and optimize the marketing strategy around it. This can all happen within the shorter timeframes, resulting from the speed and cost efficiencies created through research automation.

3.) Create a Strategic Testing Plan

As stated above 80 percent of the 30,000 new consumer products launched each year fail. The reality is that the majority of products fail because one of the testing stages was either not completed or not listened to. Unlike advertising, which follows a much more controversial and polarizing testing process, formulating an appropriate testing process for product development will help prevent a bad launch.

That said,  brands need to take great care in how they approach concept testing. As a matter of fact, there are a few classic examples of new products that were tested badly—notably, the fax machine.

Tested in London during the 80’s, the fax machine failed to capture initial interest and was predicted to be a commercial failure. Had participants been able to understand and assess the utilization of the product – the value of sending documents in seconds, as opposed to hours or days – the results would have been vastly different.

4.) Find the right methodology

Since then, the industry has created much improved and validated concept testing processes. You can implement sophisticated concept testing methods that go beyond just the likelihood of success to specific elements. These could include demographic and psychographic profiling of likely purchasers, media budget for your required level of penetration, line combinations, etc.

The key thing to remember is you need to pick the right methodology for your stage of concept development. Allow for more System 1 (gut and emotional)  approaches to screen early stage ideas and build up to more high-touch diagnostics to optimize your winners.

Advanced assessment methods such as price optimization, substitutability analysis, and line optimization through TURF in tools like MARC Rapid Results are key to pin down those critical dimensions of your product’s go-to-market.

5.) Test for disruption – but the right way

When it comes to disruptive products, the reality is they do tend to be harder to research than an incremental innovation. These type of products make up the majority of the industry’s volume and are completely suited to their standard tools and procedures.

Obviously, the more revolutionary a product, the harder it becomes for consumers to include it in their world. Regarding the few genuine revolutions, such as the introduction of the smartphone, my recommendation to brands is to proceed with ethnographic insight, focusing not just on the form but on the utilization of the new product.

One important shift we are noticing now, particularly with agile solutions like those developed by Zappi, is that clients are becoming less likely to stick with one research company throughout their development process.

For more on how to use concept testing to ensure product success, look here.

Posted by

Sasha Laferte

Sasha Laferte is Zappi's Director of Content, Product, and Engagement. She’s written for a wide range of digital marketing publications including Content Marketing Institute, LinkedIn Marketing Solutions, Salesforce, Convince and Convert, and HubSpot. Her experience spans writing for marketing software companies to creating viral content for Wenner Media (the parent company of Rolling Stone and Us Weekly). Sasha enjoys marketing, tech, travel, fitness, sushi, and her goldendoodle Barry. Sasha has a BA in Writing, Literature and Publishing from Emerson College in Boston, MA.

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