Professional Documents
Culture Documents
guide
25 ways to test your business ideas
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Step 0
Before we start: what the heck is validation?
Validation
validation •
n, the process of gathering evidence and
learnings around business ideas through
experimentation and user testing, in order to
make faster, informed, de-risked decisions.
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Waterfall approach
Risk/ $
ild
bu
Through experimentation and validation, you move away
from the standard innovation approach used in corporates
(read: design and build a car, launch it on the market…)
ild
bu
High risk
One checkpoint, at the end
ild
bu
Limited iterations
Budget-consuming
Validation of the whole concept at final release
ild
bu
Time
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Lean approach
Risk/ $
… towards a lean, resource optimised approach, where
evidence from user testing de-risks decision making.
Low risk
Multiple checkpoints for validation
Multiple iterations
Budget is progressively increased once
hypothesis are validated
Validation of individual hypothesis through
multiple experiments
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Release and validate! Release and validate! Release and validate! Release and validate!
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De ine your focus: What do you seek Map out your assumptions, prioritize Choose and design the relevant
to validate? the most critical ones and convert experiments to test your hypotheses
them into hypothesis ready to be tested
Cleary define your challenge, and at what Regardless what stage you’re in, you can Once you have ranked your assumptions
stage of the innovation funnel you’re in. now map out the assumptions you’re and defined a key hypothesis you want
Are you looking to validate the problem making. to test, you can pick the most suitable
you’re solving, the solution to address experiment(s) to test and (in)validate
that problem, the business model or the that hypothesis.
revenue model?
Tool : Assumption mapper Tool : Experiment card
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Gain deeper
insight
Gain deeper insight by doing in-market
testing. De-risk your customer & business
assumptions. Build evidence and use a
data-driven approach to decision-making
via rapid experimentation. Leverage rapid
market feedback to iterate ideas,
products, services and business models
and to inform strategies.
Get in touch!
Check out how we can help you
validate your solutions.
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Step 1
De ine your focus: what do you seek to validate?
f
10
What stage are you in?
Depending on the stage of the innovation funnel you’re in, you’ll need to validate different elements of your business proposition, so that
you can pick different kinds of experiments.
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Step 2
Map out your assumptions, prioritize the most critical ones
and convert them into a hypothesis ready to be tested
Mapping out
the assumptions
Regardless the stage you’re in (problem space,
solution space, business or pricing models), you
can now start mapping out your assumptions.
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Mapping out the assumptions
Make a priority assessment based on the risk each category represents in case of invalidation. You will realize that the technicalities and your
business model offer more ways out and are therefore less critical than being undesirable.
Critical
assumptions
Validate these
assumptions as
soon as
possible
Not-so-critical
assumptions
Not as Desirability Viability Feasibility Corporate it
important
Client/user focus Business model Tech possibilities Strategy
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Mapping out the
assumptions
To help you in the process of mapping out the assumptions
around your new business concept, we designed the
Assumption Mapper.
It helps you to:
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Download this PDF and print it on an A2 sheet of Use dot voting to decide on the most critical
paper. You can also draw the graph on a flipchart if assumptions — probably these dots will be allocated
you can't print, or use a digital whiteboard tool like mainly in the upper section of the graph, and mainly
Miro or Mural. to desirability and viability topics (following the logic
on page 14).
Write down on post-its the assumptions of the
business proposition you have in mind. Examples of Having prioritized these assumptions, you can now
assumptions for Airbnb in its early days could have start validating the ones that are both most critical
been: guests are not afraid of sleeping in the house but also fairly easy to test — leaving the hardest
of strangers, hosts are not afraid of damages in ones and the less crucial ones for later. Life it too
their properties, and so on. short to waste time on irrelevant activities, you know.
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Converting
assumptions
into hypotheses
Once you’ve mapped out the assumptions around the
problem at hand (or solution, or business model, …),
convert the assumptions into hypotheses.
Assumption
Anything accepted as true without evidence to back it
up. An assumption is a statement that we believe to be
true.
Hypothesis
A hypothesis, in contrast, is a simple, educated guess
for what you expect to happen in a given experiment.
Hypotheses should include a cause and effect “if…
then…” statement plus a numeric, measurable target. It
is important to clearly define your hypotheses with
metrics that are able to guide actions.
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Step 3
Choose and design the relevant experiments to
test your hypotheses
A one-page
overview of your
experiment
Your turn! Once you have mapped out assumptions and
hypotheses, you can select the most suitable experiment(s)
to test and validate (or reject) your hypotheses.
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How to pick the
right experiment? Pros
+ informative insights
+ Medium setup time
Tools
Trello (free) lets you track and analyse
your customer interviews as well as
communicate research results
Cons Currency
Pros and cons - recruitment time Engagement
- Effort required for analysis Time
Advantages and limitations of each experiment. - Not focused evidence
Tools
Some ready-to-use services you will nd helpful to get
your experimentation started
Target audience Kind
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Cons Currency
- recruitment time Engagement
- Effort required for analysis Time
Target audience - Not focused evidence
While most of the experiments can be used in any industry, some can be
only (or more easily) applied to a B2C context.
Perfect to test
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Currency
Different hypotheses require different experiments. For
Cons Currency
each experiment, we specify whether it is good or not to - recruitment time Engagement
test: - Effort required for analysis Time
- Not focused evidence
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01 Picnic in the
graveyard
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Picnic in the
graveyard Pros
+ simplicity
+ learn from others
Tools
Explore old products and old webpages
of corporates with Archive, the time
machine of the web. Other useful
sources include Museum of Failure,
Techcrunch and Killedbygoogle.
Investigate the biggest failures in your
industry and understand the reasons behind Cons Currency
- unstructured research Past sales
them. What to learn from the Google Learnings
Glasses?
This method is not about testing a hypothesis, instead
it is about generating ideas. Use the “picnic in the
graveyard” approach to gather information to inform
your thinking and unanswered questions on what has Target audience Kind
been tried and failed - and why. It involves contacting B2B B2C Evaluate Generative
the people behind unsuccessful ideas that have been
tried before in order to get the true story and learnings
from them.
Perfect to test
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02 Search engine
research
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Search engine
research Pros
+ reliable indicator of actual
search intent
Tools
Answerthepublic.com, in combination with
numerical data from Google Keyword Planner
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03 Generative
session
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Generative session
Pros Tools
+ informative insights Dovetail (starting from $15/user/month)
+ medium setup time lets you track and analyze (tag) your
Use generative research as a qualitative customer interviews as well as
communicate research results.
approach to look for clearer signals about
the customer.
Cons Currency
Generative sessions don’t necessarily start with a - recruitment Engagement
- effort required for analysis
hypothesis, but are used to learn more about your user Time
- not-focused evidence
and their problems, habits and in what context they
operate. For these sessions, it is key to be in the same
room with the participant and focus on open
questions that dig deeper into the motivational drivers
of the audience, while also observing the contextual Target audience Kind
environment. For this approach, start by stating your
research goals clearly and then actively listen to the B2B B2C Evaluate Generative
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Generative session
Question:
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04 Customer
interview
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Customer interview
Pros Tools
+ depth insights/feedback Dovetail (starting from $15/user/month)
+ speed of set up lets you track and analyze (tag) your
customer interviews as well as
communicate research results.
Get out of the building to actively learn
through real and in-person customer
interactions. Cons Currency
- recruiting participants Satisfaction
measurability Engagement
Customer interviews nd out if you are addressing a -
Time
real need and solving a real problem. Alternatively, use
these one-on-one interactions to gain insights into if
your solution actually resonates with your customers.
The key is identifying key customers to talk with
(extreme users on both ends of the spectrum), and Target audience Kind
developing your interview scripts in a way that elicits
customer stories. B2B B2C Evaluate Generative
Pro tip:
To help you with your interviews, Board of Innovation
has problem and solution validation checklists you can Perfect to test
download from our site.
Problem Solution Features Biz Model Pricing
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Customer interview
Hypothesis:
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05 Comprehension
test
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Comprehension
test Pros
+ simplicity
+ speed
Tools
Usabilityhub and Useberry (both freemium)
are our absolute favourites.
+ crucial step before running an
unguided quantitative
experiment
Does your customer understand the
Cons Currency
message? Eliminate false negative biases - does not validate purchase Comprehension
before testing commitment, by evaluating intent Engagement
comprehension.
Comprehension tests are simple to run and can usually
take less than an hour. The aim is to test if at least
80% of your customers display a positive conversion in
Target audience Kind
understanding your message. Sample sizes of your test
should generally be around 20 people and don’t need B2B B2C Evaluate Generative
to be target customers: you are testing the
understanding of your value proposition, not whether
they are interested in it.
Perfect to test
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Comprehension test
Hypothesis:
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06 Feature sorting
cards
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Feature sorting
cards Pros
+ simplicity
+ structure
Tools
OptimalSort (starting 100$/month) and
Usabilitest (free trial) let you create
Use sorting cards to ind patterns that help + focus - patterns cards and test them online with instant
result analysis. Conjoint.ly can help you
to understand user priorities. to scale these efforts.
Feature sorting cards are an easy and reliable way to Cons Currency
get valuable insights about how your features should - hosting a test session Satisfaction
be organized to meet the expectations of your target - won’t necessarily correspond to Engagement
real life behavior
group. Start by de ning a list of priorities and then Time
Pro tip:
Run a conjoint analysis to benchmark features against
each other, potentially also measuring willingness to Perfect to test
pay for different feature combinations.
Problem Solution Features Biz Model Pricing
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07 Message
testing
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Message testing
Pros Tools
+ simplicity Get quality data on B2B pro les from
+ scalability LinkedIn’s Sales Navigator (starting
Test your hypotheses by pitching your 100$/month), message them through
LinkedIn connection requests.
problem or solution to prospects in
(automated) messages, and measure their
Cons Currency
responsiveness. - non-binding Engagement
- low reply rate might be because Positive reply rate
Validate your assumptions about the problem and/or of other, unrelated variables
the solution by scaling up your outreach. Ask for a - hard to pre-set your min. success
criteria, so rather generative
clear commitment — which can be as little as replying
“yes” or “no” to your message — to measure whether
it’s a pain worth solving for them or whether you’ve
came up with an adequate solution to their pain. Target audience Kind
Perfect to test
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08 Wireframe
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Wireframe
Pros Tools
+ simplicity Figma and POP by Marvel (both
+ cost effectiveness freemium) are our absolute favourites
Test the usability of your digital products when it comes to designing and testing
your digital prototypes.
with digital wireframes.
Digital wireframe prototypes act as a limited simulation Cons Currency
of your solution idea for the user to interact with. The - weaker evidence Satisfaction
schematic ‘blueprint’ acts as a static visual guide that
can help you identify potential problems that you may
have not perceived and reveal elements that are not
intuitive to your users.
Perfect to test
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09 Clickable
prototype
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App mockup
Pros Tools
+ simplicity Figma and POP by Marvel (both
+ speed freemium) are our absolute favourites
Create a clickable/“tappable” prototype of when it comes to designing and testing
your digital prototypes.
an App or a digital service.
Multiple services today let any designer - or even Cons Currency
people with (almost) no design experience - create a - requires high amount of Engagement
prototype of an app, no coding needed. The users Time
advantage: iterations and re nements can be tested Attention
Accuracy
by users prior to starting development. By presenting
an app with only simple home page and sign-up ows,
users have the opportunity to experience your ideas
and concepts and give valuable feedback on your
Target audience Kind
mobile application. Using these behavioral insights can
save you time and money in development. B2B B2C Evaluate Generative
Perfect to test
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10 Physical
prototype
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Physical prototype
Pros Tools
+ simplicity Make use of recycled materials, paper
+ speed etc. to build a physical representation of
Test and evaluate your possible solution by + de-risk your solution. Or simply sketch it out
using markers and templates.
building a low idelity physical prototype for
customers to interact with.
Cons Currency
Test and evaluate your possible solution by building a - potential for biased Engagement
responses
low delity physical prototype for customers to Time
interact with.
Perfect to test
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Physical prototype
Assumption:
One of these attempts included building the skeleton with a dust compartment, from
which they learned — against wide-spread belief — that the dust compartment
shouldn’t be hidden. On the contrary, making it visible would actually make users feel
more ful lled.
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11 Single feature
MVP
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Perfect to test
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12 Bare bones
MVP
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Perfect to test
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13 Product
stimulation
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Product stimulation
Pros Tools
+ good for uncertain Bubble
products AutoCAD
Create digital models to virtually simulate + good for complex Solidworks
product features and make evidence-based products Creo, CATIA
+ de-risk
decisions. + test feature capabilities
NX CAD
… and others
Product simulation is a powerful technique for
understanding possible features and functionalities of Cons Currency
- cost of software Attention
your product before development. Software can be - technical expertise Pre- sales
used for mechanical simulation, computational uid needed
- not always a signal of
dynamics (CFD), plastic injection molding, composite
product-market fit
materials, structural, manufacturing simulations, and
more.
Target audience Kind
Simulation enables companies to quickly evaluate new
B2B B2C Evaluate Generative
ideas and should be used early in the design process
to avoid rework, lost cycle time or signi cant expense.
Simulation tools are typically offered as standalone
software, or as CAD-integrated software. Research
which tools are most suited to your product. Perfect to test
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Product stimulation
Create digital models to virtually simulate product features.
Johnson Screens is a leading brand for screens in industrial lters, water well and
architecture. The company used simulation software to verify the air ow through
their architectural radiator grille that would be used in a New York skyscraper. With
an 18 minute virtual test, the team was able to nd an accurate measure of the
pressure drop and provide ow contour visualizations to their customer. The same
analysis with a physical experiment would cost $7,000-$15,000 and easily takes a
couple of months’ time.
Key takeaways
Product simulation allows for:
Immediate feature feedback
Evidence-based decisions
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14 Impostor
Judo
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Impostor Judo
Pros Tools
+ simplicity Use snippets of existing web pages.
+ speed
Use a related website/product as if it were
your own. Repackage an existing product.
Why build something if it already exists? If a similar Cons Currency
idea already exists, you can use it as a quick and - high risk for corporates Clicks
simple way to gather feedback. With Imposter Judo we Engagement
leverage the ‘fake it till you make it’ rule. This could Conversion
Perfect to test
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15 Concierge
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Concierge
Pros Tools
+ direct customer Manual processes
interactions
In-person service for customers where they + gain understanding
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Concierge
Hypothesis:
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16 Wizard of Oz
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Wizard of Oz
Pros Currency
+ strong evidence Conversion rate (%)
+ measurability Satisfaction
Work ‘behind the scenes’ to deliver the + easy to pivot Engagement
Usage
service manually, without huge
infrastructures (but make customers believe
Cons
that the infrastructure is already in place). - time consuming
- labour intensive
This method involves manually performing tasks for
your customers, while simulating an automated
process. Customers are under the impression that
they’re using a nished product and are unaware of the
manual mechanisms working behind the scenes to
deliver value. Much like concierge, this might take Target audience Kind
much longer than automated processes rst, but it
B2B B2C Evaluate Generative
allows you to move with speed with minimal
development.
Perfect to test
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Wizard of Oz
Assumption:
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17 Process
stimulation
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Process stimulation
Pros Tools
+ good for process improvements Arena
+ good for complex projects Simulink
Create a simulation of a process + prove value before development Anylogic
+ scenario testing Miro
improvement and make evidence-based + de-risk … and others
decisions.
Cons Currency
Process simulation is a powerful technique for - not applicable for uncertain Attention
projects
optimizing processes and making con dent, evidence-
- current-state info needed to
based decisions. A simulation is an animated model
build model
that mimics the operation of an existing or proposed - technical expertise needed
system, like the day-to-day operation of a bank, - not always a signal of product-
running an assembly line, or assigning staff in a hospital market fit
Perfect to test
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Process stimulation
Create a simulation of a process improvement.
In order to implement a new food delivery service across a complex network of 18
inpatient units, Geisinger Health System used simulation software to test how
system parameters would affect patient satisfaction levels and resource
requirements. The team developed a simulation modeling and ran multiple scenarios
to provide vital information and recommendations to help senior stakeholder
decision making and successfully implement the system.
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18 Landing
page
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Landing page
Pros Tools
+ focus Umso.com (and many others) let you
+ speed and simplicity design landing pages fast and analyze
Get out of the building (virtually) by using conversion insights.
Google Optimizer lets you test and
landing pages to test your hypotheses compare different landing page versions.
against user expectations and interest.
Cons Currency
After making sure that users understand your value - cost Conversion rate (%)
proposition with a comprehension test, landing pages - a click is not always that Sign-ups
can be used as stand-alone single pages where you meaningful Payments
display your value proposition and aim to convert to a Clicks
Time on page
sign up via email, or a sale. Start from a hypothesis,
clarify your key metric and use your call to action to
test market traction for your value proposition.
Target audience Kind
Pro tip: B2B B2C Evaluate Generative
Try smoke testing to gauge whether or not there is any
serious demand for your value proposition. Add a call
to action that asks the user to commit some form of
value (enter zipcode, credit card info, email etc.). Based Perfect to test
on the % of users who offer you that value, you get a
rough signal of whether there is suf cient demand to Problem Solution Features Biz Model Pricing
build a minimal solution or if a pivot is needed.
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Landing page
Assumption:
If you have an idea, don’t immediately start building it but try to investigate the market
interest using a prototype, an MVP or a landing page for the product, AS IF it already
existed.
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19 Explainer
videos
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Explainer videos
Pros Tools
+ clarifying Moovly (starting 25$/month) let you
+ visual create explainer videos with audio clips,
Use explainer videos to show how a service + focused whiteboard animation and your own
pictures.
would work.
Create the illusion that your product is real and
developed by recording and editing a ‘real life’ scenario Cons Currency
- requires time Clicks
involving the use of your product. This video can be Attention
displayed on your landing page to explain your offering
to customers and in uence them to buy or use it.
Focus on your script and storyboard the key message
that you want to convey. Use visuals, motion and audio
to convey and strengthen the message by informing
and entertaining the user with the who + what + why of Target audience Kind
your offer. B2B B2C Evaluate Generative
Perfect to test
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Explainer videos
Hypothesis:
Use explainer videos to introduce the world to your service. Make use of a unique visual
style, create a compelling narrative with strong metaphors, and keep it short.
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20 A/B
testing
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A/B testing
Pros Tools
+ simplicity Hubspot (starting 200$/month) and
+ measurability Instapage (starting 29$/month) let you
A or B? Test both with a sample of users, design A/B versions of newsletters and
landing pages
then use the winning version.
More than a speci c experiment, A/B Testing is a way
of working that encourages marketeers to test 2 Cons Currency
- requires high amount of users Conversion rate (%)
variants (A and B) of a certain element, in order to
discover which performs the best in maximising a
desired outcome (e.g. purchase rate on an e-
commerce platform). There are many elements that
can be A/B tested: 2 different subject lines for a
newsletter campaign, 2 versions of an AdWords
campaign, 2 pricing schemes for a new service, 2 color Target audience Kind
schemes for a landing page, and so forth. B2B B2C Evaluate Generative
Perfect to test
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A/B testing
Hypothesis:
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21 Ad campaign
(online)
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Ad campaign
(online) Pros
+
+
speed
information quality
Tools
Facebook for Business
Google Adwords
+ good for testing features LinkedIn
Use Ad campaigns as a way to validate the
market.
You can use online advertising services such as Facebook, Cons Currency
- price Conversion rate (%)
Google and LinkedIn to test your offering with the - ad and marketing skills needed Click-through-rate
particular target customers you are trying to reach. With
this low- delity test, you could gain insights into how
much your customers are willing to pay, the market size,
the cost of selling. You could also see which features or
aspects of your offering is most appealing to your target
customers by analysis of click-through-rates and Target audience Kind
conversions. Additionally, using paid banner ads and B2B B2C Evaluate Generative
keywords can be used to drive traf c from the ads to
your landing page. This allows for more information on
what is actually compelling to your customer.
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22 Co- creation
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Co- creation
Pros Currency
+ direct customer interactions Engagement (meetings,
Involve a key customer early in the process + gain understanding phone calls, involvement of
for development. + ensure needs are met other stakeholders, shared
+ effective for uncertain projects information)
When working in B2B, a good approach is to co-create your Payment of co-creation
effort
solution with someone in your network (a partner, customer,
or supplier). Co-creation for B2B solutions is an effective Cons
- depends on market situation
method for three reasons: - existing relationships are
advantageous
1. Concentration: Some B2B markets consist of only a few - conversation needs to happen
companies. Building a strong, ongoing relationship with one on a non-technical level
company allows you to understand market needs with few
interviews.
Target audience Kind
2. Customer foresight, willingness, and knowledge: B2B
customers have foresight into their business objectives B2B B2C Evaluate Generative
before experiencing your product. They are often willing to
help as long as it improves their business objectives.
Customers are highly knowledgeable in tools and processes.
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Co- creation
Engage key customers and/or suppliers early in the concept
development process.
Valmet, a Finnish corporation dating back over 220 years, is the global leader in
board and paper, pulp, energy, and automation. Board of Innovation developed and
facilitated a co-creation program between Valmet and sappi, one of their key
suppliers. The program stimulated innovation and shortened the product
development process from a few years, to a few months. Several concepts from the
program are currently being developed and re ned.
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23 Crowdfunding
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Crowdfunding
Pros Tools
+ simplicity Kickstarter, Indiegogo and other
Use crowdfunding platforms as a way to validate + rapid idea validation platforms
an idea by getting backers to put money into your + generates cash
+ low risk
concept before building it.
Use the pre-order method of crowdfunding platforms to run
Cons Currency
your MVP test and test your hypothesis about the need for - Copycat risk Payment
your offering and discover customer preferences. The idea is - hard for non-consumer products Engagement
to gauge interest, secure backers and only build once there
is suf cient interest by raising your target amount. They key
for these campaigns is to come up with a compelling
elevator pitch (usually a video + strong visuals and
infographics) that will convince your target audience to buy
into your idea and become a backer. Note: if it is for test Target audience Kind
purposes - carefully consider your incentives to see if the B2B B2C Evaluate Generative
market exists naturally.
Perfect to test
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Crowdfunding
Pebble Time was the fastest funded Kickstarter project.
Palo Alto-based company Pebble decided to launch its newest watch, the Pebble
Time on Kickstarter. Less than 48 hours after launching, Pebble Time, of cially
topped the company’s previous Kickstarter record. Pebble’s IP has now been
acquired by Fitbit.
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Hire our team
of validators
We help innovation teams in corporates to validate new business propositions,
to prototype, and to launch services that customers really want.
Validation as a service
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24 Presales
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Pre- sales
Pros Currency
+ direct customer interactions Payment
Talk to your customers and gauge their interest + gain understanding
by testing their willingness to pay with
pre-orders.
Pre-sales allows you to present your product to potential
Cons
customers and convince them to pay for it before fully - time consuming
building it. You have two options in front of you: installing a - labour intensive
“pre-order” button on a landing page, or directly talking
to customers. This second option, even tough less scalable,
allows for more qualitative insights by seeing customer
reactions rst hand - these might come in handy to form
user personas at a later stage.
Target audience Kind
Perfect to test
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Pre- sales
Launch a pre-order page before kicking o f production.
Oculus VR, the American VR technology company, often launches pre-order pages
for its products before kicking off production. While preordering you exactly know
how much the product costs and on which date it will be shipped. They offered pre-
orders for Oculus Rift, Oculus Touch, Oculus Go, etc.
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25 Letter of
intent
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Letter of intent
Pros Currency
+ simplicity Signature
Test your hypotheses by asking prospects to sign + speed Time
a non-binding letter of intent to pay for your + straightforward
+ explanatory
solution.
Letters of Intent can be used to validate your assumptions
Cons
about your product by asking customers for currency and - weak validation
note explicitly what they are willing to give in return for your - non-binding
value proposition. People who clearly have the pain and
currently use work arounds will more likely sign a letter of
intent.
Perfect to test
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Experiment,
then what?
Our team of innovators help corporates validate new business propositions,
to ensure the creation of viable, feasible and desirable services.
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We make
Lennert Decuypere
Innovation Consultant
lennert.decuypere@boardofinnovation.com
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