Every marketer knows the stat: eighty percent of new products fail. Or ninety. Or ninety-five. The number changes depending on the study, but the narrative doesn’t—the majority of new ideas don’t make it.

By anyone’s standards, those are brutal odds. For brands that want to innovate, compete, and stay relevant, it raises urgent questions: How do you beat the trend? How do you avoid pouring time and money into the next statistic?

One thing is clear: whatever you launch has to be right. The problem is, “right” isn’t something you get to decide.

Your customers do.

It doesn’t matter if your team loves the idea. It doesn’t matter how clever the name is or how polished the prototype looks. If your target audience doesn’t understand it, want it, or find value in it—it’s not going anywhere.

That’s why the smartest brands don’t leave it to chance. They ask the people who matter most—before it’s too late to change direction.

This is the value of concept testing—getting early, actionable feedback directly from your target market.

What is concept testing?

Concept testing is how brands evaluate and refine ideas before taking them to market. It’s a way to pressure-test new concepts—whether that’s an entirely new product, a rebrand, or a packaging refresh—before major investment.

The concept itself could be a never-before-seen innovation or simply a new twist on something familiar. Either way, it pays to ask the right questions early on:

  • Does the concept meet real consumer needs? Do people understand it? Does it resonate?
  • Is the price right? What are people willing to pay? Is the idea commercially viable?
  • How should it be positioned? Does it fit the brand? How does it stand out from competitors?
  • What needs to be improved? Are key features missing, confusing, or unnecessary?

Concept testing isn’t a single method. It’s a suite of research tools—from concept screening surveys to qualitative interviews—designed to uncover the strongest ideas and shape them into winning propositions. The approach depends on the challenge, the category, and the stage of development.

Why concept testing matters

Concept testing takes time, effort, and budget. But skipping it is far more expensive.

Launching without feedback risks wasting not only investment but reputation. Failed products don’t just disappear—they can damage brand equity and undermine trust. The cost isn’t always visible in quarterly reports, but it shows up in lost momentum, team morale, and market position.

Concept testing isn’t just risk mitigation—it’s market strategy made smarter.

The history of product innovation is filled with high-profile flops:

  • In 1985, Coca-Cola introduced New Coke after taste tests suggested it would outperform Pepsi. But consumers rejected the change, and the backlash became legendary.
  • Juicero, the $400 Wi-Fi-enabled juicer, raised $120 million only to fold when buyers realized they could squeeze the juice packets by hand.
  • ESPN’s mobile phone failed because the price point was wrong and the product didn’t align with consumer expectations.

Concept testing helps brands avoid these pitfalls. It identifies what works, what doesn’t, and why—long before a launch is on the line.

More than just risk mitigation, concept testing is a way to move forward with clarity and confidence.

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9 Use Cases for Concept Testing

1. Validate whether your idea will take off

Just because something feels like a good idea doesn’t mean it’s market-ready. Concept testing gives brands evidence—rather than gut instinct—on whether a new idea resonates with real consumers. It’s a chance to double down on the right concepts and walk away from the rest.

2. Cut through internal debate

Strong opinions can stall progress. Concept testing gives everyone—from product teams to stakeholders—objective data to work from. It brings clarity to creative discussions and helps unify decision-making around what the audience actually wants.

3. Compare competing concepts

Put multiple ideas in front of consumers and let them decide. Online concept testing lets you test head-to-head and identify clear winners before moving into development.

4. Prioritize the right features and benefits

Which features matter most? Which could be dropped without impact? Testing helps refine the value proposition by spotlighting what your audience really cares about.

5. Understand price sensitivity

A concept isn’t viable unless it can be sold profitably. Testing can uncover how much consumers are willing to pay and what pricing tier the concept fits.

6. Iterate before you launch

Concept testing isn’t just a greenlight mechanism. It’s a feedback loop. Test, tweak, retest—until the idea is tight.

7. Find your ideal audience

Early testing can reveal which segments respond best—whether that’s by age, income, lifestyle, or geography. That insight can shape both product development and marketing.

8. Fine-tune your messaging

The best idea still needs the right words. Use concept testing to explore different messages, formats, or taglines before you commit to a campaign.

9. Continue learning post-launch

Testing doesn’t stop at go-live. Keep tracking reactions to refine your offer, improve communication, or inform future versions.

Does concept testing really work?

Some brand leaders believe that true innovation comes from bold intuition—not research. There’s the often-quoted line about Henry Ford: “If I had asked people what they wanted, they would have said faster horses.”

But Ford wasn’t anti-feedback. He understood that innovation isn’t about asking people what they want—it’s about understanding what they value. That’s where concept testing proves its worth.

At Kadence, concept testing goes beyond asking respondents to pick a favorite. We design studies that uncover emotional triggers, hidden expectations, and real-world trade-offs—between product features, brand fit, and price.

It’s not about dumbing down ideas. It’s about making sure the best ones succeed.

The Kadence Approach to Concept Testing

Our approach blends both qualitative and quantitative methods, tailoring the study design to the market, objective, and stage of development. Below are a few examples of how concept testing delivers results:

Toiletries

A personal care brand wanted to create a new line of shower gels for teenagers. We began with an online concept screening survey to identify early-stage winners, then moved into co-creation sessions with the target audience. The result: a validated, compelling range of fragrance and packaging ideas ready for development.

Takeaway Coffee

To tap into the summer iced coffee market, a global beverage brand partnered with us to run a full concept development sprint. After an internal ideation workshop, we tested multiple drink concepts and price points using online quantitative methods. Follow-up focus groups fine-tuned the winning ideas. The brand launched with confidence, backed by clear consumer demand data.

Travel Advertising

For a national tourism board, we tested multiple ad concepts to see which creative route would drive the greatest increase in intent to visit. By establishing a baseline and tracking uplift across variations, we helped the client land on messaging and visuals that resonated most with high-value travelers.

Food (B2B)

A major food brand wanted to explore the viability of a direct-to-customer (D2C) model for its business buyers. Through in-depth interviews, we tested different fulfillment concepts and gathered feedback on brand perception, value, and pricing. Insights helped shape a more appealing offer with a clear route to market.

Research methods for concept testing

At Kadence, we use a range of concept testing methods—qualitative, quantitative, and hybrid—depending on the stage of development and the decisions a brand needs to make.

We don’t lead with methodology. We start by asking the right questions. What do you already know? Are you testing multiple concepts or refining one? Do you need high-level feedback or deep diagnostic insight? Should your focus be on emotional resonance, commercial potential, or both?

The answers shape our approach.

Online Surveys

Online concept testing is one of the most effective ways to gather structured feedback at scale. Surveys can reach thousands of carefully profiled respondents, producing data that can be analyzed, ranked, and compared across audiences. Our team builds surveys that simulate real-world decisions—allowing brands to test features, pricing, and positioning in controlled conditions. We then apply advanced statistical techniques to extract what matters most.

Qualifying the Right Audience

Before diving into the core of the concept test, we recommend using screener questions to ensure you’re speaking to the right respondents. These filter out participants who don’t meet your criteria, like frequency of use, category involvement, or geography.

Demographic questions—such as age, income bracket, and profession—are typically placed at the end. They allow for segmentation analysis without overwhelming the participant up front. When used thoughtfully, this profiling ensures your results reflect your true target market.

Focus Groups

Focus groups deliver the kind of texture and nuance you can’t get from numbers alone. Whether online or in-person, they create a space where consumers engage with your concept, react in real time, and build on each other’s thoughts. We use these sessions to uncover gut reactions, decode emotional cues, and surface new angles that spark further refinement.

Depth Interviews

When individual perspective matters more than group dynamics, depth interviews offer space to go deeper. We speak one-on-one with target users to explore motivations, hesitations, and behavioral drivers—often revealing insights that shape messaging, design, or product positioning.

Ethnography

Sometimes, the richest insights come from observation rather than direct questioning. Ethnographic research puts us in the everyday environments of your target audience. Through diaries, photo journals, and in-context observation, we gain a clearer picture of the unmet needs and behaviors that influence purchasing decisions.

Online Communities

Online concept testing communities allow brands to capture evolving feedback over time. These short-term, private digital spaces encourage participants to interact with your concepts through posts, videos, and tasks. Unlike traditional surveys, communities evolve as the research progresses—ideal for iterative concept development or creative refinement.

By matching the right method to the right stage, we help brands maximize insight while staying conscious of timing, scale, and cost.

Comparing Concept Testing Methods

MethodBest ForKey Benefits
Online SurveysScreening and prioritizing multiple concepts at scaleFast turnaround, scalable, enables clear comparison across attributes like price and features
Focus GroupsExploring emotional reactions and creative directionRich qualitative insight, visual feedback, discussion of messaging and positioning
Depth InterviewsUnderstanding motivations and reactions in detailIn-depth exploration of decision-making, barriers, and expectations
EthnographyObserving how people interact with concepts in real lifeHigh authenticity, uncovers unmet needs and real-world context
Online CommunitiesIterative concept development and testing over timeContinuous feedback, co-creation, adaptable over several days or weeks

Choosing Between Monadic and Sequential Design

Two of the most common approaches in survey-based concept testing are monadic and sequential designs. In a monadic design, participants evaluate one concept in isolation, allowing for deep focus and reducing bias. This method delivers high-quality feedback but requires a larger sample size to compare concepts statistically.

A sequential design—where respondents review multiple concepts in one sitting—is faster and more cost-effective, especially in early screening stages. However, results can be influenced by order effects and fatigue, so it’s essential to randomize presentation order and monitor data quality carefully.

How Long Should a Concept Survey Be?

Length affects engagement. In our experience, surveys for concept testing perform best when kept under 25 minutes or 30 questions. Beyond that, respondent fatigue sets in, and data quality drops. Shorter, focused surveys tend to yield clearer insights—and make it more likely participants give considered feedback.

Making Sense of the Data

In survey-based concept testing, many responses are captured using Likert scales—asking how likely someone is to buy, how appealing a concept is, or how innovative it feels, rated on a 5- or 7-point scale.

One of the most actionable ways to interpret this data is by using Top 2 Box scoring: calculating the percentage of respondents who selected the top two positive responses (e.g., “very likely” or “likely”). This allows for fast comparison across multiple concepts and reveals which ideas stand out from the crowd.

Whether you’re running a product concept survey, testing pricing scenarios, or evaluating new messaging, these metrics can reveal what matters most to your audience.

The Role of design 

At Kadence, we bring creativity to every stage of concept testing, combining research expertise with in-house design capabilities to help brands move from idea to impact.

Often, the early concepts we receive are rough. They might start as a few words on a Post-it note or a collage of reference images. That’s where our design team steps in. We transform early-stage ideas into tangible stimuli that consumers can engage with—whether that’s a mock-up of an ad, a service visualisation, a website prototype, or test copy for a landing page.

We’re also exploring the use of augmented reality (AR) to elevate product concept testing. Using AR, we can generate digital 3D prototypes that participants can view through their smartphones in real environments. This approach enhances engagement and delivers more authentic feedback—especially when compared to static visuals—while remaining highly efficient and scalable.

Beyond visual execution, our work is shaped by the principles of design thinking, a framework that ensures ideas are developed with consumer needs at the center.

The five stages of design thinking include:

  • Empathise: Understand your audience’s real-world context, needs, and pain points.
  • Define: Frame the core problem or opportunity you want to solve with precision.
  • Ideate: Brainstorm solutions based on what the research has revealed so far.
  • Prototype: Build a working version—whether physical, digital, or visual—for feedback.
  • Test: Put your concept in front of your audience, gather reactions, and refine as needed.

Many of our clients reach us during the ideation or prototype phase, but concept testing can also inform earlier and later stages. Our design-led, research-backed approach is part of what makes concept testing with Kadence more actionable and more commercially relevant.

10 Top tips for successful concept testing

  1. Set clear objectives
    Start with a focused brief. What exactly do you want to learn—and how will you act on the findings? Whether you’re choosing between concepts or refining a single idea, clarity up front keeps the research sharp and the results meaningful.
  2. Don’t fall too in love with your ideas
    Concept testing isn’t about validating hunches. It’s about letting the customer response guide decisions. Stay open. If a promising product concept flops in testing, let it go. Great ideas are rarely one-offs—and the right research helps you spot what’s worth pursuing.
  3. Find the right people
    Your target audience matters more than volume. We’ve tested concepts with teenage gamers, healthcare professionals, rural farmers, and C-suite decision-makers. Whether you need broad reach or a niche segment, finding the right participants is half the battle.
  4. Bring it to life
    Early-stage ideas often need help becoming real for consumers. That’s why our in-house team turns sketches, mockups, and rough copy into visuals that spark real feedback. The stronger the stimulus, the sharper the insight.
  5. Iterate quickly and often
    Few concepts are perfect the first time. That’s why iterative testing—refining, retesting, refining again—gets better results. We use agile design and research cycles to sharpen ideas quickly, often in just days.
  6. Stay flexible
    Concept testing is not a fixed recipe. Sometimes you need a quick screen. Other times, deep qualitative work. Let your goals and the audience shape the approach—not the other way around.
  7. Listen beyond the words
    Good research isn’t just about what people say—it’s how they say it. Our researchers are trained to pick up on hesitations, contradictions, and patterns that reveal deeper insight into what people really think.
  8. Context matters
    A winning idea on paper might underperform in the real world. Test in context: how the idea compares to alternatives, fits with your brand, and lands emotionally with the audience. Concept scores are just one piece of the puzzle.
  9. Protect your IP
    Early concepts are sensitive. We’ve built secure systems to ensure designs, copy, and mockups stay confidential. Features like watermarked images and self-destructing videos help reduce leaks—and in over a decade, we haven’t seen one.
  10. Keep testing after launch
    Consumer needs shift fast. Great brands keep refining after launch. Concept testing isn’t a one-off event—it’s a habit. Keep listening, keep adjusting, and your product stays relevant.

Why It Pays to Get Concept Testing Right

Every great brand knows this: launching a new product isn’t just about creativity or gut feel. It’s about getting closer to your audience—understanding their reactions, their hesitations, their unmet needs—and building from there. That’s what concept testing delivers.

It’s not a barrier to innovation. It’s the mechanism that makes innovation work.

When done right, concept testing doesn’t just tell you which ideas are most appealing. It helps you craft better ones. It shows you where to focus investment, how to improve your offer, what to communicate, and—crucially—what not to pursue. It gives teams clarity, stakeholders confidence, and brands a stronger shot at real-world success.

Because the difference between a bold idea and a breakthrough product isn’t luck. It’s research-backed confidence.

Margin of Error Calculator.

How precise are your survey results? Use our Margin of Error Calculator to see how reliable your data is and understand how much your results could vary.

What is a Margin of Error Calculator?

A Margin of Error Calculator helps you understand how much your survey results might change if you surveyed more people. It shows the possible difference between the results you got and what the true answer might be for the whole population.
Example: If 60% of people say they like a product with a ±5% margin of error, the actual percentage could be anywhere between 55% and 65%. A smaller margin of error means more precise results, but it usually requires a larger sample size.
This tool helps businesses, researchers, and marketers measure the reliability of their data before making important decisions.

Calculate your margin of error

Please enter a number greater than or equal to 0.
Please enter a number greater than or equal to 0.

What Does the Result Mean?

The margin of error tells you how much your survey results might change if you surveyed more people.

✔ Smaller margin of error (e.g., ±3%) → More accuracy, but requires more responses.
✔ Larger margin of error (e.g., ±5% or more) → Less precision but needs fewer responses.

Need to determine how many responses you need? Use our Sample Size Calculator to find out.

How to Use the Margin of Error Calculator

  1. Step 1: Enter your Sample Size—The number of people who completed your survey. More responses = better accuracy. For example, if 250 people answered your survey, enter 250 as your sample size.
  2. Step 2: Enter your Population Size – This is not the population of a place. It is the total number of people in the group you want to study. If unsure, use an estimate. For example, if you’re surveying employees at a company with 5,000 staff members, your population size is 5,000.
  3. Step 3: Pick your Confidence Level – How sure do you want to be about your results? Common choices are 90%, 95%, or 99%. A higher confidence level means more accuracy but requires more responses. For example, a 95% confidence level means that if you repeated the survey 100 times, you’d get similar results 95 times.
  4. Step 4: View your Margin of Error—The tool will show your Margin of Error, the possible range by which your results may vary. For example, if 60% of people in your survey like a product and your margin of error is ±4%, the actual percentage could be anywhere between 56% and 64% in the full population.

Why Is It Important to Calculate the Margin of Error?

✔ Ensures Accuracy – Helps you understand how close your survey results are to the true population data.
 ✔ Builds Confidence – A lower margin of error means you can trust your findings when making important decisions.
 ✔ Guides Sample Size – Shows whether you need more responses to improve precision.
 ✔ Detects Meaningful Differences – Helps determine whether small survey result changes are real or just random variations.
 ✔ Essential for Business and Research – Used in market research, healthcare studies, polling, and decision-making to ensure reliable insights.

Want to create better surveys? Learn how to ask the right questions and get reliable answers in our market research survey guide.

Who Can Use This Calculator?

✔ Market Research and Businesses – Check customer surveys’ reliability before making decisions.
 ✔ Academic and Social Research – Ensure studies accurately represent populations for research and policy analysis.
 ✔ Healthcare and Clinical Trials – Determine how many patients are needed for valid medical research.
 ✔ Employee and Workplace Surveys – Gather reliable employee insights for engagement and policy decisions.
 ✔ Government and Public Policy – Calculate how many people are needed for voter research and census studies.
 ✔ Media and Advertising – Measure public opinion and ad effectiveness with accurate sample sizes.

Now that you know your margin of error, get expert insights to maximize your research!

Need help designing your survey or analyzing results? As a leading market research agency, we provide in-depth insights to drive better decisions.
Contact us today to discuss your research needs!

Sample Size Calculator.

How precise are your survey results? Use our Margin of Error Calculator to see how reliable your data is and understand how much your results could vary.

What is a Sample Size Calculator?

A Sample Size Calculator helps you determine the number of people you need to survey for reliable results. By entering key details like population size, confidence level, and margin of error, you can calculate the ideal sample size for accurate research findings. For example, If you’re surveying 10,000 customers and want 95% confidence with a 5% margin of error, the calculator will tell you how many responses you need to ensure trustworthy insights.

Calculate your sample size

Please enter a number greater than or equal to 0.
Please enter a number from 0 to 100.

What Does the Result Mean?

The sample size calculation tells you how many people you must survey to get reliable results. If the calculator suggests 400 respondents, that means surveying at least 400 people will give you statistically reliable results within your chosen margin of error. A larger sample size increases accuracy, while a smaller one may produce less precise results. Use this number to plan your survey with confidence!

Tips:
Want more precision? Lower the margin of error, but this will increase the required sample size.
Not sure how many people to survey? Try different confidence levels and margin of error settings to see how they affect sample size.

Now that you have your sample size, what’s next?
Need to check how precise your results are? Use our Margin of Error Calculator to measure the accuracy of your survey.

How to Use the Sample Size Calculator

  1. Step 1: Enter your Population Size – This is not the total population of a country or city. It’s the specific group you want to study (e.g. school students between the ages of 10 to 16 in the U.S.). If you’re surveying customers of a particular store, the population size is the total number of customers who shop there, not the entire city.

  2. Step 2: Choose your Confidence Level – Select how sure you want to be about your results (90%, 95%, or 99%). A higher confidence means greater certainty but requires more responses to reduce errors. For example, a 95% confidence level is the standard for most surveys, but if you choose 99%, you’ll need a larger sample size for higher accuracy.

  3. Step 3:  Select your Margin of Error – The range within which the true result may vary. Choose how much your results might vary from the true answer.
    ✔ Smaller margin (±3%) → More accurate results but requires more responses.
    ✔ Larger margin (±5% or more) → Less precise but needs fewer responses.
    For example, If 60% of people like a product and your margin of error is ±3%, the real number could be between 57% and 63%. A ±5% margin means it could be between 55% and 65%.

  4. Step 4: View Your Sample Size – The tool will tell you how many responses you need for reliable data.

  5. Step 5: Plan your survey: Use this number to ensure your research is accurate and meaningful before launching your survey.

Why Does Sample Size Matter?

Getting the right sample size is key to accurate and reliable results. Here’s why it’s important:

✔ Accuracy – Reduces errors and makes your survey results more reliable.
 ✔ Efficiency – Saves time and resources by collecting just the right amount of data.
 ✔ Trustworthy Insights – Ensures your findings reflect the whole population, not just random chance.

Want to ensure your qualitative research captures the right insights?

Explore how different approaches impact your study and discover best practices for gathering meaningful data in our expert guide on sampling methods.

Who Can Use This Calculator?

✔ Market Research and Businesses – Find the right number of customers to survey for product feedback and market trends.
✔ Academic & Social Research – Ensure studies accurately represent populations for research and policy analysis.
✔ Healthcare & Clinical Trials – Determine how many patients are needed for valid medical research.
✔ Employee & Workplace Surveys – Gather reliable employee insights for engagement and policy decisions.
✔ Government & Public Policy – Calculate voter research and census study respondents.
✔ Media & Advertising – Measure audience opinions and ad effectiveness with accurate sample sizes.

Now that you have your sample size get expert insights to maximize your survey’s design.
We provide in-depth insights to drive better decisions as a leading market research agency.

Contact us today to discuss your research needs!

Imagine you’re at the helm of a tech startup, about to launch a revolutionary app. Your team has poured endless hours into perfecting its features and design. It’s sleek, innovative, and everything you dreamed of. The day of the launch arrives, but to your dismay, user feedback is not what you expected. Though aesthetically pleasing, the app is not hitting the mark with your target audience. This is a classic case of a well-intended design missing its mark due to a lack of usability testing.

Usability testing is an indispensable part of product design and development. It involves evaluating a product or service by testing it with representative users. The primary goal is to identify usability problems, collect qualitative and quantitative data, and determine the participant’s overall satisfaction with the product.

In user interface design, usability testing is critical to determining a product’s success or failure. This practice helps bridge the gap between developers and users, ensuring the final product resonates with its intended audience and offers an intuitive and practical experience.

Relevance of Usability Studies in Market Research

In market research, usability testing provides direct input on how real users interact with products, services, and systems. This feedback is invaluable for companies to align their offerings with user needs and preferences, thereby increasing market viability and user satisfaction.

It’s a common misconception that a proficient UX designer can inherently create an optimal user experience. However, design is not a one-size-fits-all solution. What might seem intuitive to a designer might be perplexing to the end-user. The human brain is complex, and its interaction with digital interfaces varies widely among individuals.

There are countless variables in modern user interface design, and the permutations of these variables in the context of human interaction are even more extensive. This complexity makes it impossible to create a universally optimal UX design without thorough testing. Usability testing is, therefore, a necessary step to iterate, refine, and perfect the design based on real-world feedback and interactions. It’s the cornerstone of user-centred design, ensuring the final product is functional, resonates with, and is accessible to the target audience.

Usability testing is a powerful tool as it provides direct insights into how consumers interact with products and services, offering a level of understanding beyond traditional market research methods. This deeper dive into user behavior and preferences is invaluable when customer experience is paramount. By integrating usability testing into market research, brands can make data-driven decisions that resonate with their target audience, ultimately leading to products that are not just usable but enjoyable.

Types of Usability Testing

Usability testing encompasses a variety of methods, each tailored to uncover specific aspects of user experience. Understanding these types is crucial for selecting the right approach to gain valuable insights.

Explorative, Assessment, and Comparative Usability Testing

  • Explorative Testing: This type of usability testing is conducted early in development. It focuses on exploring the users’ behaviours and preferences. Here, the goal is to gather insights to shape the product’s design and functionality rather than evaluating a finished product.
  • Assessment Testing: Conducted midway through the development process or upon completion, assessment testing evaluates the usability of a specific feature or the entire product. It’s about understanding how well users can navigate and use the product for its intended purpose.
  • Comparative Testing: This method involves comparing two or more products or designs to understand which performs better in usability. It is particularly useful when deciding between design alternatives or benchmarking against competitors.

Remote Vs. In-Person Testing

  • Remote Testing: This method allows users to participate from their environment, typically via the Internet. It offers the advantage of a more diverse user base and is more cost-effective. However, it may provide less control over the testing environment and limit the depth of insights gathered.
  • In-Person Testing: In-person testing is conducted in a controlled setting, allowing for a more hands-on approach. It facilitates observing body language and non-verbal cues, offering richer qualitative data. However, it can be more time-consuming and expensive to conduct.

Qualitative and Quantitative Methods

  • Qualitative Methods: These are focused on gathering insights about the user’s feelings, thoughts, and behaviours through methods like interviews, think-aloud protocols, and open-ended questions. The data is subjective but provides depth in understanding the user’s experience.
  • Quantitative Methods: These involve collecting and analyzing numerical data, such as task completion rates, error rates, and time on task. This data helps in making objective decisions about the usability of a product.

Each testing type and method has its place in a comprehensive usability testing strategy. The choice depends on the stage of the product’s development, the nature of the product, and the specific testing goals. A blend of these methods often provides the most holistic view of a product’s usability.

Planning Usability Studies

Effective planning is the backbone of successful usability studies. This phase sets the stage for meaningful data collection and insightful analysis. It involves defining clear objectives, selecting the right participants, and developing robust test protocols.

Defining Objectives and Goals

  • Clarify the Purpose: Identify your goal with the usability study. Are you testing a specific feature, the overall user experience, or the effectiveness of a redesign?
  • Set Specific Goals: Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, a goal might be to reduce the time it takes for a user to complete a specific task on the app by 20% within the next six months.
  • Identify Key Performance Indicators (KPIs): Select metrics that will be used to measure the success of the usability study, such as error rates, task completion times, or user satisfaction ratings.

Selecting the Right Participants

  • Target Representative Users: Participants should represent your actual or intended user base. This includes considering age, gender, technical proficiency, and other demographic or psychographic characteristics.
  • Determine Sample Size: While larger groups provide more data, smaller groups can often provide sufficient insights for most studies. A common approach is to start with 5-8 participants for each user group.
  • Recruitment Strategies: Decide how you will recruit participants. This might involve using customer databases, social media, or professional recruiting agencies.

“Design is really an act of communication, which means having a deep understanding of the person with whom the designer is communicating.”― Donald A. Norman, The Design of Everyday Things.

Developing Test Protocols

  • Create a Testing Guide: This document should outline participants’ tasks, questions to ask, and data to record. It ensures consistency across all testing sessions.
  • Decide on the Testing Environment: Determine whether the testing will be remote or in-person and set up the environment accordingly. This includes preparing any necessary technology and ensuring a distraction-free setting.
  • Pilot Test: Conduct a pilot test with a few participants to refine your test protocols. This helps identify any issues with the test design before the full-scale study begins.

Usability Testing Methodologies

Usability testing encompasses a variety of methodologies, each offering unique insights into user behavior and preferences. The key is to select the method that best aligns with your study’s objectives and goals.

Overview of Various Usability Testing Methods

  • A/B Testing: This method compares two versions of a web page, app, or other product elements to see which performs better. It’s particularly effective for making data-driven decisions on design elements like layouts, colours, or copy.
  • Eye Tracking: Eye tracking technology tracks where and how long a user looks at different areas of a page or screen. This method is invaluable for understanding how users interact with visual elements, providing insights into design effectiveness.
  • Think-Aloud Protocol: Participants are asked to verbalise their thoughts as they navigate through a product. This method provides a window into the user’s thought process, helping to uncover usability issues that might not be evident through observation alone.
  • Card Sorting: Used primarily in the early design stages, card sorting helps organise information architecture. Participants categorise topics into groups, providing insights into their mental models and expectations.
  • Usability Benchmarking: This usability testing method involves testing a product’s usability against predefined standards or competitors’ products. It helps track progress over time and ensures a product meets industry standards.

Choosing the Right Method for Your Study

  • Align with Objectives: The chosen method should directly contribute to achieving the defined goals of the usability study. For instance, if the focus is on improving navigation, card sorting or think-aloud protocols might be more appropriate.
  • Consider Resource Availability: Some methods, like eye tracking, require specialised equipment and expertise. When selecting a methodology, assess the available resources, including time, budget, and technology.
  • Factor in the Product Stage: Different methods suit different stages of product development. For example, A/B testing is more suitable for a product that is already live, while card sorting is ideal for the conceptual stage.

Incorporating Analytics and Data Collection

  • Use Quantitative and Qualitative Data: Combining both data types provides a more comprehensive understanding of usability. Quantitative data offers objective metrics, while qualitative data provides context and deeper insights.
  • Leverage Analytics Tools: Utilise analytics tools to gather data like click-through rates, time on task, and error rates. These tools can provide a wealth of information for evaluating usability.
  • Systematic Data Collection: Ensure data is collected systematically and consistently across all test participants to facilitate accurate analysis.

Selecting the proper usability testing methodology is crucial for obtaining meaningful insights. By carefully considering your study’s objectives, the stage of product development, and the resources available, you can choose the most effective methods to enhance your product’s usability.

Conducting Usability Tests

Executing usability tests effectively is critical to gather reliable data and insights. This phase involves meticulous preparation, skilled facilitation, and adherence to best practices for interacting with participants.

Preparing the Testing Environment

  • Create a Comfortable and Realistic Setting: Whether testing remotely or in person, the environment should be comfortable for participants and reflective of a typical usage scenario. For in-person tests, ensure a quiet, distraction-free space.
  • Ensure Technical Readiness: Ensure all equipment and software function correctly before testing. This includes computers, recording devices, and specific tools like eye-tracking devices.
  • Prepare Test Materials: Have all test materials, such as task lists, questionnaires, and consent forms, ready. Clearly outline the tasks participants will perform during the test.
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Facilitating Tests and Gathering Data for Usability Studies

  • Conduct a Briefing: Start by briefing participants on the test’s purpose, what they will do, and how their data will be used. Assure them the test is about the product, not their performance.
  • Observe and Take Notes: During the test, observe participants’ behaviours, facial expressions, and verbal comments. Take detailed notes or use recording equipment for accurate data capture.
  • Encourage Open Communication: Create an environment where participants feel comfortable sharing their thoughts. Prompt them with open-ended questions if they are quiet or seem hesitant.

Best Practices for Interacting with Participants

  • Maintain Neutrality: Avoid leading questions or comments that could influence participants’ behaviour or opinions. Your role is to observe and gather data, not to guide or correct.
  • Be Attentive and Empathetic: Pay attention to non-verbal cues. If a participant seems frustrated or confused, note it down. Empathy can help you better understand the participant’s experience.
  • Ensure Anonymity and Confidentiality: Reassure participants that their information will be kept anonymous and confidential. This helps in building trust and encouraging honest feedback.

Post-Test Procedures:

  • Debrief Participants: After the test, debrief participants to clarify any unclear points and gather additional feedback.
  • Express Gratitude: Always thank participants for their time and contribution. Their insights are invaluable to the usability testing process.

Conducting usability tests is a nuanced process that requires attention to detail, effective communication, and a structured approach. Creating the right environment, skillfully facilitating the test, and interacting appropriately with participants can ensure a successful usability study that provides deep insights into the user experience.

Analyzing and Reporting Findings

After conducting usability tests, the focus shifts to analyzing the gathered data and reporting the findings. This stage is crucial for translating raw data into actionable insights and effectively communicating them to stakeholders.

“Design is not just what it looks like and feels like. Design is how it works.” -Steve Jobs.

Data Analysis Techniques

  • Quantitative Analysis: Start with the numerical data. Calculate metrics such as task completion rates, error rates, and time taken for each task. Use statistical tools to identify patterns or significant differences in user performance.
  • Qualitative Analysis: Analyse the qualitative data, such as user comments, feedback, and behavioural observations. Look for recurring themes or issues. Qualitative data often provides context to the quantitative data, explaining the ‘why’ behind the numbers.
  • Cross-Analysis: Cross-reference quantitative and qualitative data to gain a holistic view. For example, if a task has a high error rate (quantitative), look at user comments (qualitative) to understand the reasons behind these errors.

Creating Actionable Reports

  • Structure the Report Effectively: Include an executive summary, methodology, key findings, and recommendations. Make sure the report is clear, concise, and focused on actionable insights.
  • Use Visual Aids: Incorporate charts, graphs, and screenshots to make the data more accessible and understandable. Visual representations can be particularly effective in conveying critical findings at a glance.
  • Highlight Recommendations: Based on your findings, provide clear, actionable recommendations. Prioritise these recommendations based on their potential impact and feasibility.

Communicating Findings to Stakeholders

  • Tailor the Communication: Understand your audience and tailor the presentation of your findings accordingly. Executives prefer high-level insights, while product teams may require detailed technical feedback.
  • Facilitate a Discussion: Present your findings in a manner that encourages dialogue. Be prepared to answer questions and explain your methodology or reasoning.
  • Focus on Impact: Emphasise how the findings and recommendations can positively impact the user experience, business goals, and product success.

Implementation and Follow-Up

  • Plan for Implementation: Discuss with stakeholders how and when the recommendations will be implemented.
  • Measure Impact: Propose ways to measure the impact of changes made based on the usability test findings, such as through follow-up studies or ongoing user feedback.

Effective analysis and clear communication are vital to ensuring the insights gained from usability testing lead to meaningful enhancements in user experience.

“Usability is, at its heart, a user advocate job: Like the Lorax, you speak for the trees. Well, the users, actually. Usability is about serving people better by building better products.” – Steve Krug, Don’t Make Me Think. 

Case Studies and Real-World Examples

Incorporating case studies and real-world examples effectively demonstrates the practical application and impact of usability testing. These examples provide tangible insights into how usability testing can significantly improve digital products. These case studies illustrate the diverse applications of usability testing and its potential to transform user experience positively. 

Case Study 1: E-commerce Website

  • Background: An e-commerce website experienced lower-than-expected conversion rates despite high traffic.
  • Usability Test Conducted: The company implemented A/B testing for different page layouts and used heat maps to track user engagement on product pages.
  • Findings: The testing revealed that users were overwhelmed by the number of choices and unclear navigation paths. Essential information like shipping costs and return policies were not immediately visible.
  • Action Taken: The website was redesigned to simplify navigation, reduce the number of choices per page, and make essential information more prominent.
  • Result: Post-redesign, the website saw a significant increase in conversion rates and a decrease in cart abandonment rates.

Case Study 2: Mobile Application

  • Background: A fitness mobile app with various features struggled to retain users.
  • Usability Test Conducted: The company used think-aloud protocols and user interviews to understand the user experience.
  • Findings: Users found the app’s interface cluttered and confusing. Many features were unused because users were unaware of them or didn’t understand their benefits.
  • Action Taken: The app was redesigned to streamline the interface, improve onboarding tutorials, and highlight critical features more effectively.
  • Result: The updated app received positive feedback for its user-friendly interface, leading to higher user retention and increased daily active users.

Case Study 3: B2B Software

  • Background: A B2B software company received feedback about its product being difficult to use, affecting client satisfaction.
  • Usability Test Conducted: The company conducted in-depth usability studies involving task analysis and user observation in a real-world setting.
  • Findings: The studies revealed users struggled with complex features and a lack of intuitive workflows.
  • Action Taken: The software was redesigned for simplicity, focusing on improving the user interface and streamlining complex tasks. Educational resources and better customer support were also introduced.
  • Result: Post-redesign, the software saw increased client satisfaction, reduced customer support calls, and improved client retention rates.

Tools and Resources for Usability Testing

Many tools and resources are available to conduct effective usability testing. These resources can significantly enhance usability testing, from specialised software and equipment to online communities.

Software and Technology:

  • User Testing Platforms: Tools like UserTesting, Lookback, and UsabilityHub offer platforms for remote usability testing, allowing for real-time feedback and screen recording.
  • Analytics and Heatmap Tools: Software like Hotjar and Crazy Egg provides heatmaps, session recordings, and other analytics, which are invaluable for understanding user interactions on websites and apps.
  • A/B Testing Tools: Optimisely and Google Optimise are popular choices for conducting A/B testing, which is crucial for data-driven design decisions.
  • Survey and Questionnaire Tools: Platforms such as SurveyMonkey and Typeform help gather user feedback through surveys, which can be integrated into usability tests.

Usability Testing Kits and Equipment

  • Mobile Device Testing Kits: These kits include various mobile devices with different screen sizes and operating systems to test mobile applications.
  • Eye-Tracking Equipment: Eye-tracking systems like Tobii and EyeTribe are used for in-depth analysis of visual attention in usability studies.
  • Audio-Visual Recording Equipment: High-quality microphones and cameras are essential for recording in-person usability tests, capturing both verbal feedback and non-verbal cues.

Legal and Ethical Considerations in Usability Testing

When conducting usability testing, adhering to legal and ethical standards is crucial. These considerations ensure the protection of participants’ rights and the integrity of the data collected.

Consent and Privacy Issues

  • Informed Consent: Participants must be fully informed about the nature of the test, what it involves, how the data will be used, and their rights during the study. Consent should be obtained in writing before the test begins.
  • Privacy Protection: The personal information of participants must be protected. This involves anonymising data, securely storing sensitive information, and using it only for the intended purpose.
  • Data Usage and Sharing: Be transparent with participants about how their data will be used and whether it will be shared. If data is to be published or shared, ensure it is done so that individual participants cannot be identified.

International Laws and Regulations

  • Compliance with GDPR and Other Privacy Laws: For companies operating in or collecting data from residents of the European Union, compliance with the General Data Protection Regulation (GDPR) is essential. Similar regulations exist in other regions, like the California Consumer Privacy Act (CCPA) in the U.S.
  • Cross-Border Data Transfer: Be aware of the legalities in transferring data across countries. Different countries have varying laws regarding data privacy and protection.
  • Accessibility Laws: Ensure your testing process does not discriminate against any group. Laws such as the Americans with Disabilities Act (ADA) in the U.S. mandate that products and services, including digital ones, be accessible to all, including people with disabilities.

Ethical Practices in Usability Testing

  • Voluntary Participation: Participation in usability testing should always be voluntary. Participants should have the right to withdraw from the study at any point without any penalty.
  • Avoiding Deception: Be honest with participants about the purpose of the test. 
  • Respect for Participants: Treat all participants with respect and dignity. This includes accommodating their needs, listening to their concerns, and ensuring comfort throughout testing.
  • Debriefing: After the test, provide participants with a debriefing session to learn about the study’s objectives and outcomes. 

User Research and UX Design Trends for 2023

The rise of the AI Researcher: AI’s increasing role in UX signifies a shift towards more efficient, predictive analysis in research, offering innovative ways to gather and interpret user data. AI tools analyse complex user data, enhancing UX research. 

For instance, a company might use AI to predict user trends optimising website layouts for better engagement. A UX team uses an AI tool to analyse user behaviour patterns on a website, leading to insights that significantly improve the navigation experience. Or, a streaming service may use AI to analyse viewer behaviour, leading to personalised content recommendations that enhance user satisfaction and engagement.

The popularity of Voice Assistants: As voice assistant usage surges, UX teams must adapt and are challenged to design beyond traditional screens, incorporating voice and gesture interfaces for a seamless omnichannel experience. 

A scenario could involve designing a smart home app where users control devices via voice commands, ensuring a seamless experience across devices. A company may redesign its mobile app to integrate voice commands, allowing users to navigate and perform tasks hands-free, enhancing accessibility. Or, a banking app could integrate voice navigation, allowing users to check balances and make transactions using voice commands, streamlining the user experience.

Meet the Metaverse: The emergence of AR and VR platforms like the Metaverse redefines online experiences, requiring UX professionals to explore new dimensions in design and user interaction. 

A fashion retailer, for example, could create a virtual reality store in the Metaverse, offering customers an immersive shopping experience that combines the convenience of online shopping with the interactivity of a physical store.

Architecting Age-Appropriate Experiences: With a heightened focus on digital safety for younger users, there’s an increasing need for platforms to craft engaging and suitable experiences for children and teenagers.

An educational app developer may conduct usability research to design engaging, intuitive, and safe interfaces for children, adhering to new digital safety standards. 

Rapid Research Rolls into Reality: Fast-paced UX research drives quicker innovation. This trend emphasises agility in UX research, aiming for a quicker turnaround from brief to results, adopting a more streamlined and process-driven approach.

A tech company, for instance, might use rapid research to test and refine a new app feature within a week, accelerating product development. The design team may conduct a week-long sprint to test a new feature, quickly gathering user feedback and iterating on the design, speeding up the development process.

Championing the Value of UX: Economic uncertainties underscore the importance of UX teams demonstrating the tangible ROI of their work, highlighting the need for effective communication about the impact of UX on business growth. 

Demonstrating the ROI of UX is crucial. A UX team could showcase how improved website usability increased sales, securing more resources for future projects.

The Future of Usability Testing

The field of usability testing is continuously evolving, driven by technological advancements and changing user expectations. Understanding these trends is crucial for staying ahead in creating user-centric products and services.

Emerging Technologies:

  • Artificial Intelligence (AI): AI is revolutionising usability testing by enabling more sophisticated data analysis. AI algorithms can predict user behaviour, identify usability issues more efficiently, and suggest improvements.
  • Virtual Reality (VR) and Augmented Reality (AR): These technologies are opening new avenues for usability testing, especially for products that are not yet physically built or are too expensive to prototype traditionally. VR and AR can create immersive testing environments, providing insights into how users interact with future products.
  • Eye Tracking and Biometrics: Advanced eye-tracking and biometric technologies provide deeper insights into users’ unconscious responses, enabling a more nuanced understanding of user engagement and experience.

Evolving User Expectations

  • Demand for Personalisation: Users increasingly expect personalised experiences. Usability testing must evolve to assess general usability and the effectiveness of personalised features and content.
  • Increased Focus on Accessibility: There is a growing emphasis on making products accessible to all users, including those with disabilities. Usability testing must incorporate accessibility evaluations to ensure inclusive design.
  • Higher Standards for User Experience: Users’ tolerance for poorly designed interfaces decreases as they become more tech-savvy. Usability testing must be more rigorous and thorough to meet these higher expectations.

Predictions for the Future of Usability Studies

  • Integration with the Entire Design Process: Usability testing is expected to become an integral part of the entire product design and development cycle rather than a standalone phase.
  • Greater Use of Remote Testing: The trend towards remote work and digital collaboration is likely to increase the prevalence of remote usability testing, making it easier to reach a more diverse user base.
  • More Collaborative and Continuous Testing: With the rise of agile market research methodologies, usability testing will likely become more iterative and integrated into continuous development cycles. This approach allows for ongoing feedback and quicker adjustments.

Final Thoughts

Usability testing is a critical bridge between designers’ intentions and users’ real-world experiences. The future of usability testing is dynamic and promising, with emerging technologies and evolving user expectations shaping its course. Staying abreast of these trends and adapting testing methodologies accordingly will be vital to creating products that meet and exceed user needs and expectations. 

The key is adapting to change and anticipating and shaping it. As we look to the future, let us carry forward the insights and lessons from usability testing, using them to craft experiences that meet and exceed user needs, creating a world where technology serves humanity in intuitive, empowering, and delightful ways.

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Are you tired of investing time, money, and resources to develop products that don’t resonate with your target audience? Have you ever launched a product that received little to no interest from the market? If so, you’re not alone. 

Launching a successful product in today’s highly competitive market can be daunting. However, concept testing can help you validate your product ideas, refine your concepts, and increase the likelihood of success.

Concept testing evaluates customer responses to a product idea before launching it in the market. It involves gathering feedback from potential customers to understand their preferences, pain points, and expectations. By conducting concept testing at different stages of product development, you can identify potential issues and improve your product before it’s too late.

In this article, we will explore the importance of concept testing in product development and provide an overview of the different stages involved in the process. From idea generation to launch testing, we will discuss how concept testing can help you maximise your product’s potential and increase your chances of success in the market. 

What is concept testing? 

Concept testing, also known as idea testing, is a crucial step in the product development process. It involves testing a product idea with potential customers to gauge their level of interest and gather feedback to refine and improve the idea.

Concept testing aims to validate a product idea before investing significant resources in developing it. It allows product teams to gather valuable insights from potential customers and make data-driven decisions based on their feedback. This helps to reduce the risk of failure and increases the chances of launching a successful product.

Concept testing can be conducted using various methods, including surveys, focus groups, and interviews. It typically involves presenting potential customers with a description, sketch, or prototype of the product and gathering their feedback on various aspects, such as its features, pricing, and overall appeal.

Concept testing is an integral part of the product development process as it can help companies avoid costly mistakes, such as launching products with no market demand. By gathering feedback early on in the product development process, companies can make informed decisions about whether to proceed with the product idea or make modifications to improve its chances of success.

Stage 1: Idea Generation

Ah, the brainstorming stage – the time to let your imagination run wild with new product ideas! But wait, before you start investing time and resources into developing a product, have you considered the importance of concept testing in the idea generation phase?

Concept testing is critical in the idea generation stage, as it helps to validate and refine your product ideas. Imagine spending months developing a product only to discover that it’s not something your target audience wants or needs. That’s where concept testing comes in – it helps you to validate your ideas before you invest significant resources into developing them.

Let’s say you have an idea for a new fitness tracker that tracks your daily water intake. You might think this is a great idea, but will your target audience feel the same? Through concept testing, you can present your idea to potential customers and gather their feedback on your product’s features, pricing, and overall appeal. If your target audience doesn’t see the value in tracking their water intake, you can refine your idea to include more appealing features.

In addition to validating your ideas, concept testing in the idea generation phase can also help you to generate new ideas. Presenting your product idea to potential customers may generate feedback that inspires new features or functionalities you have yet to consider.

Stage 2: Concept Development

Welcome to stage two – concept development! This is where you take your product ideas and start developing them into a tangible concept. But how do you know which concept is the most promising one? You guessed it – concept testing!

Concept testing in the concept development stage can help you to evaluate different concepts and identify the most promising ones. Let’s say you have developed three concepts for your fitness tracker – one that tracks water intake, one that tracks sleep patterns, and one that tracks heart rate. Through concept testing, you can present these concepts to potential customers and gather feedback on their level of interest in each one. Based on their feedback, you can identify which concept most appeals to your target audience.

Not only can concept testing help you to identify the most promising concept, but it can also help you to refine the concept further. Through feedback from potential customers, you may discover areas that need improvement or additional features that would make the product even more appealing.

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Stage 3: Prototype Testing

Now that you have a promising product concept, it’s time to develop and test a prototype with your target audience. This is where concept testing can help to refine your prototype and identify areas for improvement.

Let’s say you have developed a prototype of your fitness tracker that tracks water intake. You present it to potential customers, and while they are interested in the idea, they express concerns about the size and comfort of the tracker. Through concept testing, you can gather this feedback and refine your prototype to address these concerns. You could make the tracker smaller or adjust the design to make it more comfortable to wear.

In addition to refining your prototype, concept testing can help you identify areas for improvement. For example, if potential customers express confusion about how to use certain features, you may need to adjust the user interface to make it more intuitive.

Concept testing in the prototype testing stage can be conducted in various ways, such as usability testing or field testing. These methods allow you to gather feedback on the functionality and user experience of the prototype.

By refining your prototype based on feedback from concept testing, you can increase the chances of launching a successful product that meets the needs and desires of your target audience. So, don’t underestimate the power of concept testing in the prototype testing stage – it can make all the difference between a mediocre product and a successful one.

Stage 4: Launch Testing

Now let’s look at launch testing! This is where you test the market readiness of your product and identify potential issues before launch. 

Concept testing in the launch testing stage can help you gather feedback on your product’s final version before launch. This feedback can help you to identify potential issues, such as pricing concerns or a lack of interest in certain features. 

For example, if you have developed a new smartphone app, you can present it to potential customers and gather feedback on its functionality, design, and pricing. Based on this feedback, you can make necessary adjustments before launching the app to the market.

By gathering feedback from potential customers in the launch testing stage, you can also gain insights into the competition and the overall market demand for your product. This can help you to make informed decisions about pricing, marketing, and distribution strategies.

Concept testing in the launch testing stage can be conducted in various ways, such as beta testing or product demos. These methods allow you to gather feedback on the final version of your product and make necessary adjustments before launching.

Methodologies for concept testing

Now that we’ve explored the different stages of concept testing and their importance in product development, let’s dive deeper into the various methodologies that can be used for concept testing.

There are several different methods for conducting concept testing, each with advantages and disadvantages. The most commonly used methods include surveys, focus groups, and usability testing.

Surveys are a great way to gather feedback from a large number of potential customers. They can be conducted online or in person and are typically used to collect quantitative data on different aspects of a product concept, such as the level of interest in certain features or pricing.

On the other hand, focus groups are more qualitative and involve gathering a small group of potential customers to discuss and provide feedback on a product concept. They are often used to gain more in-depth insights into the thoughts and feelings of potential customers, as well as to gather ideas for new product features or functionalities.

Usability testing is another method that can be used to gather feedback on a product concept. It involves observing potential customers as they use a prototype of the product and gathering feedback on the usability and functionality of the product.

In addition to these methods, there are other types of concept testing, such as A/B and field testing. A/B testing involves presenting two different versions of a product concept to potential customers and gathering feedback on which one is more appealing. Field testing involves testing a product concept in a real-world setting, such as in a store or online marketplace.

Best Practices

Now that we’ve explored the different methodologies for concept testing let’s explore some best practices for conducting effective concept testing. These best practices help ensure that you gather the most valuable feedback and make informed decisions about your product development.

Firstly, defining clear research objectives before conducting concept testing is important. This will help you focus on the most important aspects of the product concept and gather relevant feedback for your goals. Clear research objectives also help ensure you don’t waste time or resources on gathering irrelevant feedback.

Secondly, recruiting the right participants for your concept testing is essential. This means targeting individuals representing your target audience and likely to use or purchase your product. It’s also important to ensure the participants are engaged and invested in the concept testing process. You can achieve this by providing incentives or rewards for their participation.

Another best practice is to use the correct methodology for your product concept and research objectives. This means choosing a method best suited for gathering feedback on the specific aspects of your product concept that you want to test. 

For example, if you want to gather quantitative data on pricing, a survey would be more appropriate than a focus group.

Finally, analyzing the data effectively is crucial to make informed decisions about your product development. This means looking for trends and patterns in the feedback and using this information to refine and improve your product concept. It’s also important to prioritise the feedback based on its relevance and impact on the product’s success.

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Limitations of concept testing

While concept testing is a valuable tool for product development, knowing its limitations is essential.

For example, concept testing can only provide feedback on the specific product concept being presented to potential customers. It may not capture all possible issues or challenges that arise once the product is launched in the market. 

Additionally, concept testing can be influenced by factors such as how the concept is presented, and the language used, or the participants’ demographic.

Another limitation of concept testing is that it may not capture a product’s emotional or experiential aspects. For example, a potential customer may express interest in a product concept, but they may have a negative emotional response once they use the product.

By acknowledging the limitations of concept testing, product development teams can use it as a tool in combination with other methods, such as user testing and market research, to gain a more comprehensive understanding of their product’s potential success in the market.

Case Studies in Concept Testing

Now let’s look at some real-life case studies of successful concept testing in product development. 

One example comes from the UK-based cosmetics company Lush. In 2018, Lush developed a new product concept for a solid shower gel. Before launching the product, Lush conducted concept testing by sending samples to customers and gathering feedback through surveys. The feedback was overwhelmingly positive, with customers expressing interest in the new product and suggesting additional scents for the line. Lush used this feedback to refine the product and launch it successfully in the market.

Another example comes from the US-based fast-food chain Taco Bell. In 2017, Taco Bell conducted concept testing for a new menu item called the Naked Chicken Chalupa. The company used focus groups and taste tests to gather feedback on the product concept and made adjustments based on the feedback. The Naked Chicken Chalupa was a huge success when launched, selling over 25 million units in its first year.

Finally, an example from Asia comes from the Chinese tech company Xiaomi. Xiaomi developed a new product concept for a foldable phone, but before launching the product, the company conducted concept testing by sending out a prototype to potential customers for feedback. The feedback was mixed, with customers expressing concerns about the phone’s durability. Xiaomi used this feedback to make necessary adjustments and launch a successful foldable phone.

Key Takeaways

In conclusion, concept testing is a crucial step in the product development process. It allows brands to gather feedback from potential customers, refine their product concepts, and increase their chances of success in the market. 

Brands can conduct effective concept testing and make informed decisions about their product development by following best practices such as defining clear research objectives, recruiting the right participants, and analyzing data effectively.

Here are some key takeaways to keep in mind:

  • Concept testing can be conducted at different stages of product development, including idea generation, concept development, prototype testing, and launch testing.
  • Different methodologies can be used for concept testing, including surveys, focus groups, and usability testing.
  • Effective concept testing requires careful planning, execution, and analysis of data.
  • Concept testing has limitations, and it should be combined with other methods to gain a more comprehensive understanding of a product’s potential success in the market.

Overall, concept testing is a valuable tool for product development that can help companies to create products that truly resonate with their target audience. By implementing the best practices and key takeaways discussed in this article, you can increase your chances of success and launch a product that will delight your customers.

If you want to conduct concept testing for your next product development project, consider using a market research agency like Kadence International. We have extensive experience conducting effective concept testing and can help you gather valuable feedback from potential customers. To get started, simply submit your research brief.

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Product managers and designers frequently get requests to design new products and add new features to existing products, making it difficult to determine which ideas to invest in for the best outcome. 

This is where concept testing comes into play. 

Concept testing ideas and even features for existing products before moving into implementation and design is the best way to approach a customer-centric product development process.

What is concept testing?

Concept testing is a market research method to get user feedback before bringing a new product or feature to the market. It often allows users to provide their input on potential solutions. When end users are involved in the initial product development and design phase, it takes the guesswork out of what consumers want and allows them to shape the idea before it is launched in the marketplace.

It involves putting the idea in front of real consumers and asking them to assess the product’s value in multiple areas. 

Whether the goal is to bring a new concept or product into the market, update an existing product, or change pricing or messaging, input from real customers translates into informed decision-making. This allows brands to save time, money, and resources while preventing financial losses due to failed products and also helps protect the brand and customer relationships.

In today’s highly competitive business environment, brands need to employ a customer-centric approach, and all decision-making should start and end with the consumers’ interests and preferences in mind.

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The value of concept testing

According to studies, more than 25 percent of total revenue and profits come from launching new products, which is true across industries and product categories. 

With concept testing, brands can validate an idea or vision before investing valuable resources into building something that may not resonate with its users. It also helps brands identify potential challenges in executing the idea. Concept testing precedes usability testing, which must be conducted once the refined design prototype or wireframe becomes available. Product testing is crucial and happens after the final product is ready for launch to get first-hand information on how consumers will respond to the final product. 

Launching a product or service is a massive undertaking, even for larger organizations. Research shows only 55 percent of all product launches occur on schedule, and 45 percent are delayed by at least one month. 

Therefore, brands must ensure the product resonates with the end user before launching it. Concept testing helps confirm that your assumptions around a solution or idea are correct. 

Concept testing comes after the ideation phase and is a way of testing ideas that have been developed to an extent but need further refinement and provides a more detailed understanding of the needs of your potential customers. 

Concept testing may also be used to design a complete User Experience (UX). According to studies, every USD 1 invested in User Experience (UX) design results in a USD 100 return. Providing consumers with a seamless UX is crucial for brands to stay competitive in today’s volatile market conditions. 

Concept testing should be considered an unobstructed learning process where brands open the concept up to end users to discover their perceptions —without any predefined parameters.

Benefits of concept testing

Concept testing minimises risk and is easy to set up.

Concept testing allows brands to test and understand how real consumers will feel about the product before investing time, money, effort, and resources into it, minimising the risk of product failure. 

Concept testing can help you optimise the concept before the launch.

Concept testing can provide more information regarding the potential roadblocks to implementation, consumer perceptions, price perceptions, competition, and how the new concept fits into the brand. 

It also allows brands to test multiple solutions or concepts to arrive at the best one and helps provide some information on potential market demand.

Research helps forge strong brands.

Concept testing is a great way to show consumers and investors that your brand believes in constant innovation, has a customer-centric approach, and is transparent. This helps boost loyalty and enhance brand value and equity.

Concept testing prevents costly mistakes.

Even some of the biggest brands, like Google and Coca-Cola, are not immune to making mistakes due to false assumptions about what consumers want (or do not want).

In 2012, Google first announced Google Glass —an eyeglasses-shaped head-mounted display with smartphone functionality. It was based on the premise that “technology should work for you —to be there when you need it and get out of your way when you don’t.” The brand wrongly assumed what consumers wanted from technology. In 2015, the company discontinued the product due to low market demand. 

Coca-Cola is another great example illustrating the importance of concept testing. When Coca-Cola’s flagship cola drink started losing market share to Pepsi, it changed its drink formula for the first time in 99 years. It introduced New Coke, which failed miserably. The brand reintroduced its older recipe and rebranded it as Coca-Cola Classic.

Similarly, in 1990, US-based beer Coors introduced Coors Rocky Mountain Sparkling Water to tap into the fast-growing bottled water segment but fell flat as the Coors name confused consumers. 

Concept testing boosts confidence in product launch and team buy-in.

If you have a concept but need to assure the senior team that it will work, concept testing is the best way because you can show evidence that real consumers will use it.  

The importance of well-designed questions

Over 80 percent of all new products fail, and concept testing allows brands to determine if a new product or feature is a good market fit by asking real users the right questions. 

Therefore, you must ask the right questions that will give you valuable insights into the needs and requirements of real users. Determining the metrics, you will measure in your concept testing is crucial. 

You will set your goals depending on the concept and methodology you choose, and your survey questions should aim to reach these goals. For instance, if you are testing a new type of single-serve, wireless blender, the goal is to determine if your potential customers need a product that makes smoothies on the go. The questions will revolve around understanding the consumer better and if they need a solution like this, along with any other features they might want to see in this blender, for instance, a sippy cup cover or straw to go with it. 

This is where research design comes into play, and the research questions depend upon the business need. For instance, if a brand is taking its concept to a new market segment, they need to conduct a needs analysis using qualitative and quantitative research methods. The questions will be designed to find out if the concept will work in the new market. 

Let’s say the brand is testing a new concept before its initial introduction. In that case, they need to conduct Concept Fulfillment utilizing qualitative research to determine if there is a need for the new product concept.

Some common goals brands set for concept testing are as follows.

  • Get a metric on how likely existing customers and new market segments will be to purchase the product. 
  • How the product will do based on current competition in the market, and what features will make it stand out. 
  • Learning which features would get existing customers to purchase from the brand.

These goals provide brands with invaluable, high-quality data and insights into consumer behaviours, attitudes, and preferences. 

Concept testing methodologies

Brands test concepts in many ways and all the methods involve getting feedback from potential users on the idea’s validity. It can be done via a face-to-face or remote interview. Depending on the concept and the study’s goals, it can be done asynchronously or unmoderated. 

There are four standard methods for concept testing. They are based on the number of ideas you want to evaluate.

Comparative testing

This method is used when you have more than one potential concept to test. Brands use the comparative method to see how multiple concepts measure against each other.

When using this method in a survey, respondents are asked to rate each concept against a set of criteria. Questions must be specific features that can also be ranked to determine which features are most preferred by respondents.

Monadic testing

Unlike comparative testing, monadic testing shows research participants one product or idea. 

This concept testing takes your entire target audience and breaks it into subsets, showing only one concept to each. These user-friendly tests provide a deep dive into the consumer’s mind. They also reduce bias and provide accurate results.

Sequential monadic testing

A sequential monadic survey shows your entire target audience or a subset of the audience, either all of your concepts or some of them—with at least two concepts being shown randomly.

Proto-monadic testing

Proto-monadic testing combines sequential monadic and comparison testing. It asks participants to analyze concepts and compare features to help them choose the best concept.

Steps in Concept testing survey design

When you’re ready to test your concepts, there are four steps to follow:

Choose the most suitable methodology for your business needs.

Select the best methodology depending on the scope, time, and number of features or concepts being tested.

Set a goal.

Work backwards, set a goal based on the objective and the information you want to gather from your customers, and design survey questions accordingly.

Choose survey components appropriately.

Make sure you use the most appropriate components for your surveys. From Likert scales to images and demographic questions, brands should carefully make these choices to design a survey with questions that will produce valuable data.

Identify the most promising concept.

Review the collected data to get a clear picture of the concept favoured by the target market. Dive deeper into the most desirable features to determine which concept has the highest potential for market success. 

If the data reveals something unexpected or is something you did not imagine before, feel free to change course. This is why you conducted concept testing in the first place —to ensure the concept works in the marketplace. The ultimate goal of this study is to do what’s profitable for the brand. 

Real-world examples of Concept testing

It’s one thing to determine if people want a product or service and yet another to say they are willing to open their wallets and buy the product. 

This is where purchase intent testing comes into play. This helps determine if people will purchase your product or service at your desired price.

Many brands test the product without the price first to gauge consumer interest and later add price to determine purchase intent. 

US-based Electric Vehicle brand Tesla conducted purchase intent testing for a car model before it even designed it.

In 2016, the pioneering EV automobile brand tested purchase intent for the Tesla Model 3 before it was even designed. Interested buyers were asked to put down USD 1,000 for the Tesla Model 3, and about 400,000 people ended up putting down money to book the car. The participants also provided feedback on the car, and Tesla made modifications and features based on real customer input. This also gave Tesla the confidence and the capital needed to develop the car. 

Another undefeated brand due to its concept testing research is Denmark-based Lego, a plastic building-block toy company. For years, Lego was predominantly bought for boys, so the brand conducted extensive market research to discover that boys and girls played with Legos differently. Boys preferred stand-alone structures, while girls enjoyed recreating backgrounds, scenes, and environments. 

In 2012, based on these findings, the brand launched the Lego Friends product range with cafes, salons, supermarkets, and so forth to tap into the new consumer segment successfully. 

Concept testing is a great way to evaluate and identify winning product concepts. It promotes innovative thinking and developing products, features, and pricing that resonates with end users. It allows brands to stay ahead of the competition by developing and designing concepts based on market demand and creating products only after testing the idea and getting invaluable feedback from real consumers. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Fill out our Request for a Proposal here.

Brand trust is one of the most valuable intangible assets of a company. Brand trust is meeting or exceeding consumer expectations by how well a brand delivers on its promises with its products and services. When a product fails to launch successfully, it can be costly and erode brand trust, which can take years to rebuild.

While product innovation is essential to building market share and customer satisfaction, products that fail to launch successfully can have the opposite effect, eroding market share, creating dissatisfaction, and sometimes bad press. 

For example, the US Food and Drug Administration (FDA) recently reviewed claims that pulse oximeters, the medical device that clamps onto a patient’s fingertip to measure their blood oxygen levels, can yield less accurate readings in people with darker skin tones. Medical professionals use these devices in ambulances, surgeries, emergency rooms, and hospitals worldwide, so it is alarming that these commonplace devices could be inaccurate. Thorough product testing with a diverse sample could have potentially detected this problem before launch and helped avoid the erosion of trust for these products. 

Recalling faulty, dangerous, or flawed products can cost a company millions and cost much more in lost brand trust. The most costly product recall to date is the Takata Airbag which is said to have cost USD 24 billion.

While safety, functionality, and accuracy are reasons to conduct product testing, it also analyzes a product concept or feature to determine how existing or potential customers will use or react to a product. 

Product testing is a research methodology that allows brands to collect qualitative and quantitative data about consumers’ potential consumption and usage behaviour, preferences, and reactions to a product.

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Product testing helps development team members measure a product’s market potential. Brands can use product testing research to determine whether a product functions as expected or whether a target audience will find value in a new product feature. Specifically, product testing helps research, marketing, product managers, and developers:

  • Gain insights: Discover valuable insights about customers’ needs and preferences, which can provide direction during development.
  • Improve products: By gathering and reviewing feedback during development, product development teams can use this information to improve products to meet customers’ expectations.
  • Save time: Product testing can help teams save time during development by identifying potential problems or risks early in the development process before launching the product to consumers.
  • Achieve business goals: Product testing helps product development teams prioritise so they can achieve key business goals, such as attracting more customers or increasing revenue.

Six common types of product testing

The type of product testing deployed can vary based on the project. Here are six common types of product testing. 

1. Concept testing

Commonly used to explore the feasibility of a product idea or concept, concept testing evaluates how the product may perform in the marketplace when launched. 

Depending on the product, concept testing often involves presentations, customer surveys, or wireframes. Concept testing can help product developers and engineers determine whether to progress to the next stage of development by evaluating responses to the idea. It can also clarify the features or functionality customers want from the product.

2. QA testing

Quality assurance (QA) testing is commonly conducted in a staged environment, where product developers test the features or functionality of a product before its public release. QA testing research teams evaluate the product using different scenarios to imitate a customer’s use. QA testing can test product updates or new features before releasing the changes to a broader audience. This type of research ensures the product works as expected and helps teams identify problems before launching the product.

3.A/B testing

With this type of product testing, product developers create two versions of a product’s feature or component and ask a research sample of customers which version they prefer. The differences in the versions may be slight, such as two different colour schemes on a product label, or they may be considerable, such as two distinct brand names. A/B testing helps product developers and engineers make design choices based on customers’ preferences. 

4. Market testing

Market testing introduces a product to customers to assess the market potential. Market testing is finding the optimal landscape, at what price point to sell, and which types of customers fit best. The product and research teams typically release the product to customers in different geographic areas and/or demographic groups, such as Gen-Z. Market testing can help product development teams measure the potential success of a product in the market. Market testing is often used to forecast product sales, plan advertising campaigns and determine effective distribution strategies.

5. User testing

User testing is research after the development team has built the product. Product development and research teams perform user studies by observing how customers interact with their products. They gather data and information based on customers’ experiences with the product to determine whether to make changes in future product releases. 

6. Regression testing

Regression testing occurs after customers have begun using the product. During regression testing, teams test the current features of a product to help them determine the features they want to add or update. While some existing features may remain, regression testing helps product development teams determine if newly added features impact the current product’s functionality.

Product testing best practices

There is rarely a one-size-fits-all when it comes to product testing. To get the most from your next (or first) product test, it is always best practice to speak with experts in the field. 

  • Use different methods: It’s helpful to use different product testing methods to provide clear direction throughout all phases of development. For example, your product development team may use concept testing to determine the viability of a product idea, A/B testing to assess its design, and QA testing to ensure the product functions as expected.
  • Refrain from making assumptions: Though it’s helpful to develop a hypothesis before product testing, refrain from making assumptions about how customers may use or react to a product. This mindset allows you to evaluate data objectively.
  • Test successful products: While it’s important to conduct product testing to identify potential problems or risks, it’s also helpful to test successful products to learn what’s already working well. Collect this data through product testing and use that information when developing future products for continued success.

Launching a new product into an existing market, releasing new features, or launching a current product to a new audience is an exciting time for a brand. Product launches come with a certain amount of risk. With the right product testing research, you can swing the pendulum in your favour, make sound strategic decisions and maximise optimal returns. 

According to the Global Research Business Network (GRBN), confidence in the market research industry has remained stable, and trust in data analytics has increased in 2022 compared with 2020. 

Still, market research as an industry needs to constantly work to improve the perceived value of research. The way to ensure this happens is by addressing the main challenges of obtaining high-quality data. 

The importance of data collection in market research cannot be emphasised enough. This blog post will analyze the main obstacles brands face in this area and provide guidance on how market researchers can tackle these challenges with the help of technology. 

The methods you use to collect and analyze data will significantly impact the quality of your market research report and its value in decision-making. The five best data collection tools for market research are surveys, interviews, focus groups, observation, and secondary sources. 

Understanding the best methodology to get the most accurate, error-free, and reliable data is essential. 

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What is data quality?

Data quality is a complex, multi-faceted construct. Quality data is data that is fit for its purpose and closely relates to the construct they are intended to measure. 

Let’s take the example of a brand like Amazon’s Audible and try to predict what type of books a person would be interested in based on his previous listening history. The data is likely high quality because the books subscribers have listened to in the past are a good predictor of what they would like to consume in the future. The books they have listened to in the past also have a close relationship with what you are trying to measure, in this case, book preferences, which makes the data high quality. 

Reliable data requires a high-quality sample with enough information to make conclusions that inform business decisions. For instance, in the same example of Audible, if a subscriber uses it only once in a while and has only listened to one book in six months, it fails to present a complete picture of the user’s preferences due to limited data or information available. 

In the example used above, the data is available in the app and is much easier to collect. However, this is not always the case. Many instances of market research involve collecting data from people taking surveys, user testing, or recollecting past experiences and feedback, which are much more challenging to measure. 

So how do you ensure you collect high-quality data that informs decision-making at every step of the organization? 

Utilise technology 

As the world has moved online, so have many market research methodologies. Many companies have been forced to move online quickly, which has been a blessing in disguise for them. Technologies like automation and Artificial Intelligence (A.I.) have allowed brands to obtain transparent, reliable, and accurate data more efficiently.

Technology can also be beneficial in identifying bad data. Automation helps select the best pool of candidates for a study and helps achieve a more balanced view of the respondents. It can help reduce subjectivity and bias, scale costs, and improve project speed and efficiency. 

Advanced profiling

To yield high-quality data, you must obtain a 360-degree view of the user or consumer. A good data scientist will study the consumer using all critical data points, like browsing history, purchase history, online behaviour, cart abandonment, geolocation, and other relevant data.

Proper Planning

Excellent outcomes need proper planning, which is valid for everything, including market research. The entire team must understand the research study’s objectives before doing anything else, including all the early actions, like identifying the right participants for the study. Researchers can then create a sample plan based on key objectives and participants. This will become the basis of the methodologies used and the survey designs. A good market research study also employs a screener to ensure they only include participants relevant to the study. 

Recruit the right people

At Kadence, we firmly believe your research is only as good as the people participating in your study. When carrying out a virtual study or focus group, it is vital to make sure people doing the testing or surveys are genuine and suitable for the particular study. Researchers must hunt down even the most difficult-to-reach audiences, as you need the right people for the research to yield unvarnished results. 

Ensure complete and active participation

Making surveys more engaging will always lead to higher participation in online surveys. A well-designed survey with clear instructions will ensure higher participation and more honest responses.

Throughout the survey, researchers can include questions to ensure participants are paying attention and potentially weed out those who are off-track and disengaged.

Screening dishonest participants

Researchers can go a step ahead to eliminate dishonest survey participants. Online surveys can identify potential red flags where people provide false demographic information so they can qualify for studies with high rewards. 

Researchers can selectively target participants who have been profiled in the past to avoid participants with false demographic information. 

Develop a system of efficient, consistent data quality checks throughout the process

Market researchers should always have an effective and efficient plan for weeding out bad data throughout the study. Automating and utilizing suitable technology can ensure you safely streamline the quality check process in real time.

A critical challenge with market research is the ethical collection and use of data. Discover why ethics are vital in data collection and how to ensure your data collection is always on the right side of law and ethics here:

The ultimate goal of market research is to obtain high-quality data that is accurate, relevant, and reliable. While well-planned and thoughtfully designed studies can yield effective results to inform decision-making, poorly planned and designed ones can lead to poor business outcomes.

The stakes are always high, so it is crucial for brands and researchers to constantly improve data quality and reliability to save time, money, effort, and resources and lead to better, more informed business decisions. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.

At Kadence, we pride ourselves on being at the forefront of research innovation. We identify and explore how emerging technologies will reshape the research landscape- and share findings with the industry.

Our primary focus is identifying developments that will enhance the richness and depth of insights we deliver to our clients.

In recent years we have partnered with clients to pilot a range of new methodologies:

● Artificial Intelligence in qualitative research with Starbucks
● Blockchain survey sampling with Unilever
● Augmented Reality pack-testing with Asahi

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In late 2021 it was hard to avoid talk of the Metaverse, including Facebook’s repositioning to focus on virtual reality and augmented reality and the change of company name to ‘Meta’. Alongside Meta, there were vast inflows of investment into the metaverse infrastructure from tech giants such as Microsoft, Apple, and NVIDIA. At the same time, the falling cost of VR headsets made these accessible to many consumers (an Oculus Quest 2 VR headset fell to around £300).

As opportunities for customisation grew, our focus turned to the Metaverse and, specifically, a curiosity to understand whether the exciting developments present an opportunity for the research industry. To explore this, we partnered with a major US media brand.

Over the past few months, we have undertaken a comprehensive program of qualitative exercises in the Metaverse, an industry-first. Our pilot included focus groups, triads, and depth interviews.

All respondents and moderators participated using VR headsets. We tested a range of qualitative exercises (including co-creation), seeking to make the most of the tools available within the metaverse environment.

As well as assessing the quality and depth of insights gathered, we also examined the nature and quality of interactions between participants. Additionally, we investigated respondents’ ease of use and technical challenges that could inform future use.

The pilot has now concluded, and we are excited to share and discuss our groundbreaking learnings with the industry over the coming months at various conferences. 

 We will be sharing our conclusions on the following topics:

● Can we successfully harness this infrastructure to conduct qualitative research?

● What benefits does this offer over face-to-face and online methods?

● What opportunities exist for market research in the short-term and medium term?

● Will the Metaverse reshape our industry?

Please get in touch to learn more about our work in the Metaverse.

Contact Name: Rupert Sinclair, Head of Insight, UK

Email: [email protected] 

Just like reaching an unknown destination without a map is difficult, so is building a business strategy without competitive intelligence. 

Competitive intelligence helps brands shape their product development, distribution channels, pricing, messaging, positioning, brand promotions, and features. It allows brands to identify their challenges and opportunities in the market in relation to their competition, so they can see what their competitors are doing and differentiate themselves from them. 

What is competitive intelligence (CI)?

Competitive intelligence refers to any intentional research where brands collect, analyse, and utilise data and information gathered on their competitors, customers, and other external factors, potentially providing brands with a competitive advantage.

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When brands ethically and legally collect competitive intelligence, it can help boost the organisation’s decision-making capabilities. The goal of any competitive intelligence study is to create a business plan and strategy so organisations can make well-informed decisions based on market considerations.

Competitive intelligence goes beyond knowing the competition; the process is designed to take a deep dive to unravel the finer points of the competitor’s target markets and business strategy. 

Competitive intelligence plays a vital role in all major departments of an organisation and can take on a different meaning for each department or function. For instance, for a product development team, competitive intelligence may mean new features being added to products. For a sales executive, it may be helpful to know how to create a winning proposal. For leadership, it may be understanding the competitor’s marketing strategies so they can craft a plan to gain more foothold in the market.

Competitive Intelligence studies and exercises can be tactical (shorter-term) or strategic (longer-term). The goal of tactical competitive intelligence studies, for instance, can be to obtain insights into increasing revenues or gaining market share. At the same time, strategic or longer-term reporting focuses on significant risks, threats, and opportunities, present or emerging. 

A competitive intelligence study typically includes a wealth of information and insights from various sources, like government records, online mentions, social media, trade shows and journals, customer data and interviews, and traditional news media, to name a few. These sources are easily accessible and form the starting point for the studies. More in-depth information from distributors, suppliers, competitors, and customers is needed to make truly informed decisions. 

What are the key benefits of competitive intelligence?

There is no substitute for Competitive intelligence research when it is undertaken with care and diligence. It is a powerful tool for brands to gain market share, boost revenue, and continue to build the right products at competitive prices.

Here are some key benefits of using competitive intelligence for brands:

#1. Ability to predict patterns and emerging trends

As brands excavate an enormous amount of data and insights related to their competitor’s activities, they begin to identify and foresee emerging trends in the industry. This allows brands to gain deep foresight to make informed decisions and strategic business plans. 

#2. Aids in brand positioning

As brands gather insights and data about the competitive landscape, they also gain clarity on their activities and messaging. It helps them understand what works and doesn’t and cement their marketing. 

#3. Helps make more informed decisions.

When brands unearth information, they gain critical insights into how the customers feel about their brand and the competing brands. This gives brands a better view of their customers’ wants and how their competitors are meeting the needs of the target markets. 

#4. Boosts returns and profits

When you have a good understanding of the strategies and tactics employed by your competition and how they are performing, you will be better able to invest in areas that bring the highest returns, reducing risks and boosting profits.

Going back to the definition of Competitive Intelligence, we can see three necessary steps: “collect, analyse, and use competitor and market information to make informed decisions.”

Collecting data

There are many ways of unearthing relevant competitor data legally and ethically. Searching for information online may seem rudimentary, but it can provide invaluable information about the competitors and their activities. This information is readily available and accessible on the internet and is considered low-hanging fruit. With a few simple web searches, you can find great information on what the competitor is doing and what it has done in the past. You can also learn about product features, pricing, innovations, leadership, and important news and announcements relevant to your competition. There are tools that provide insight into the competitor’s search engine optimisation activities and their online advertising efforts. 

From here, brands often go deeper and beyond the internet to analyse target markets and customer segments. Brands use quantitative and qualitative market research to gain more market insight. 

Brands use data to analyse their competition beyond the simple search process. This entails going through endless data and making sense of it all can become cumbersome. This is where data mining comes into play. Besides gathering data from third-party sources, brands also gather human intelligence by interviewing relevant people, including customers and past suppliers. This is a time-consuming process and must be undertaken by experts in market research to ensure it is done ethically and legally.  

Analyzing data

Analysis of data is a crucial step in the competitive intelligence process. Once brands collect data, it needs to be analysed carefully to provide actionable insights. This allows brands to understand the patterns and separate them from the outliers. 

The analysis aims to uncover strengths, weaknesses, opportunities, and threats as they relate to the competitive landscape. Therefore, collecting and analyzing information from disparate sources is essential in verifying their authenticity and validity. This helps us move away from making assumptions and gaining real insights from more accurate pieces of data. 

Crafting a strategy 

Once a brand has enough verified data and information on its competitors and strategies, it can utilise it to differentiate itself and make informed decisions regarding product, price, messaging, and other essential aspects. It allows brands to weigh the competitor’s strengths, weaknesses, and opportunities in relation to their own to gain a competitive advantage.

For instance, pricing is an important area for differentiation but can only be done right if everything is studied and taken into account to find the right price that is profitable and aligns with the customer’s perceived value of a brand or product offering. Therefore, a successful price is not about pricing your product at the same or lower price than your competitor but positioning your brand as the choice that provides the greatest value. And to make that happen, you need to know the price of competing products and their perceived value in the buyer’s mind. This calls for a thorough study and analysis of the competing products, markets, and consumers. 

Today, e-commerce companies use sophisticated software for competitive pricing due to the market’s highly competitive and dynamic nature. Read more on how e-commerce brands utilise price monitoring software technology to track competitor pricing here.

To get the complete picture, brands may conduct competitive intelligence surveys. They can define their target audience and use various demographic and psychographic questions to identify consumer behaviour. These also include questions about competing products and services. You may also use ranking and rating type questions and identify any unmet needs or gaps in the marketplace or use open-ended questions to get a more in-depth view of the consumer’s mind. Brand recall and recognition surveys are also helpful in gaining consumer perception of various brands. For instance, a sparkling water brand may ask: “When you think of bottled sparkling water, what brand comes to mind first?” This can help brands discover how frequently their brand is mentioned compared to competing brands in the category.

When armed with the powerful insights gained through competitive intelligence, brands can be more strategic in all aspects of business, from product development to pricing and distribution. By differentiating themselves from competitors, they can gain valuable market share, grow brand value, and brand equity, and boost their return on investment (ROI).