Even if you think it is a good one, any idea must be tested before it is invested in. Idea validation is an important step to take before launching any product.
Idea validation requires market research to find out how the public may respond to your offering. In a world of competitive business, it’s highly suggested that any idea should first be tested in a controlled environment before it hits the market.
Why do idea validation?
Idea validation gives you an idea of how a product will be received by the market. It mitigates the risk of investing in a new product by letting businesses know how their product will be received, before the actual launch.
Idea validation introduces a product to a controlled group (that mimics the real world) and makes a detailed study of what attracts customers to a product and what pushes them away.
Why is idea validation important?
Let’s face the facts. Sometimes, we may be so engrossed in an idea that we are unable to think like a real customer and take into account their expectations and priorities.
Idea validation gives us a clear and objective view of the product and its points for success. It spares time delay during the launch rollout of a product and reduces the risk of launching a product that doesn’t catch on.
How to do an idea validation?
The idea validation process begins with an assumption of the product. These assumptions are experimented with to find out which of these are true and which need more work on.
Here is the framework with which an idea validation is performed:
- Segment adoption: In this step, the idea is checked for its adoption within the main target group.
- Compatibility: Is this idea compatible with the needs of the market?
- Advantage: Does this idea give users an advantage over the competition in the market?
- Observability: Are all the advantages of this idea, visible to the target market.
The 4 steps to validate an idea:
Step 1 – Define the goals of the idea validation exercise
In this step, you must identify the KPIs that will validate your product in the market.
Step 2 – Come up with a hypothesis
A hypothesis is an assumption that needs to be tested. It is central to idea validation to have several hypotheses that are tested by a controlled group of users.
Step 3 – Experiment with the hypothesis
If you have a hypothesis, prove it correct before moving to the next step of launching your product. An experiment will test how well your product will be adopted by the market.
Step 4 – Validation
In the last step, you will know if your idea is valid or not. In this final step, you will know if you have to proceed with the idea or pivot from the launch of this product.
After these 4 steps, you will have the needed data to know if your idea is valid for the market. After gaining positive results from these steps, it’s time to proceed with your product launch.
Idea validation is just one small easy step that can give you a clear and objective view of the product and its points for success. Idea validate your product today and do away with the worry of how it will perform in the market tomorrow.
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