INSIGHT on INSIGHT: Utilizing Concept Testing
WHAT AND WHEN: Proper usage
Concept testing is typically done to determine which of multiple stimuli (positioning statements, value propositions, products, packaging, price points, brand names, variants, etc.) perform best on certain metrics that are believed to predict in-market success.
Concept testing provides final validation and final selection criteria before something goes into production or gets launched into the market.
In the simplest form, this could be considered A-B testing or split testing. A client has multiple variations of a stimulus and wants to know which one to pick with the best odds of success.
However, concept testing can quickly get much more complicated based on other applications for the technique and the number of stimulus being tested.
Assuming the right test design is used, this technique saves significant time and expense while significantly improving the odds of in-market success.
WHY: The benefit and value
This technique is part of our philosophy to “learn & test before you test & learn.” Concept testing is very inexpensive risk management to avoid making a mistake during the final stages of a project.
It provides objective, quantified data for decision-makers to make decisions.
It identifies key strengths to build on or weaknesses still needing to be addressed.
It uses benchmarks to measure the relative strength of a new idea in the context of ones that are already in the marketplace with proven performance.
Concept testing is also a very powerful selling tool, helping demonstrate to retailers the potential for a new product or package update to generate incremental sales or attract incremental shoppers.
HOW: Tips to guide a basic approach
There are many ways to design concept tests and measure results. Some are definitely better (read: more insightful or accurate) than others, but many options are a matter of preference, not right or wrong.
Some of the many aspects to consider when conducting a concept test include:
- Getting monadic data: This is unbiased and isolated measurements of each concept without the awareness that multiple versions or options exist.
- Picking the right metrics to measure: It is well known that purchase intent is more predictive of in-market performance than just appeal or preference. However, many secondary metrics like appeal, clarity, uniqueness, believability, value or noticeability can help determine the stronger concept when purchase intent comes back statistically similar.
- Picking the right benchmarks: Sometimes it is best to compare versus the market share leader. Other times, it is better to study a niche or weak product that is more likely to get deleted.
- Establishing an absolute benchmark: Interest in buying or responding to a program may be heavily influenced by overall interest in trying any new product or responding to any new program.
- Forcing rank: Ranking concepts from best to worst is another way to discriminate results when individual purchase intent scores are very similar.
- Forcing preference: Asking respondents which one concept they are most likely to buy helps discriminate between multiple strong ideas.
- Asking likes and dislikes: Knowing how much people are interested in a product is one thing. Understanding why they are or are not interested can reveal noticeable negatives or final adjustments to further increase that appeal.
- Profiling the most likely or more valuable buyers: Because not all buyers are equal, it is important to look for unique skews among those that have the strongest interest in each concept or those that are likely to represent the greatest source of volume.
APPLICATION: What to do with the results
On the surface, concept testing typically addresses a straight-forward decision: Do we move forward with A or B (or C, D, E…)? However, there are a variety of other applications that can further support that decision. These include using concept testing to:
- Validate or further profile prime prospects or early adopters.
- Quantify cannibalization, switching or source of volume from existing products.
- Demonstrate the ability to attract incremental shoppers and incremental sales.
- Identify remaining improvements or refinements to address the weakest components.
- Identify the strongest elements to emphasize in future marketing materials or messages.
- Create a selling story to convince retailers that your product represents significant opportunity and minimal risk.