Testing Your Value Proposition
In this lesson, you will learn how to test your Value Proposition using experiments, thus ensuring that it matches with your customers’ expectations.
So here we are: You have a value proposition.
How can you ensure it matches with your customers’ expectations?*
Doing experiments of course!
An experiment is a procedure to validate or invalidate a value proposition or business model hypothesis that produces evidence.
But what do you actually want to test?
Interest and Relevance
You want to test if your customers are interested in your solution (not only that they pretend to).
Priorities and Preferences
You want to test what are the jobs, pains and gains that your customers value the most.
Willingness to Pay
You want to test whether customers are interested enough to pay for your solution.*
Would you be willing to pay for a device for your dog to keep tabs on him/her when you’re away from home?
Thanks for your answer. Let’s get back to the lesson.
Now that we know what we want to test, let’s review several experiments you could perform.
You can even reproduce them at home
Let’s dive into it.
Online Advertising can help you validate potential customers’ interests.
You can easily design your ad with some text and an image and define your customer segment.
Although they charge you per click, it is not expensive at all to set up a small ad if you feel like trying to advertise on Facebook, LinkedIn, Google, etc.
What does CTR stands for?*
Click Through Rate (CTR)
is one of the metrics that you can use to check your ad efficiency, and thus people’s interest.
It is the number of clicks that your ad receives divided by the number of people who saw it, expressed as a percentage.
Thus, CTR = clicks ÷ impressions.
Unique link tracking
Nowadays, you can track people’s clicks on the internet. You can build a unique link to check afterwards if the person you gave it to actually visited the link.
What does MVP stands for?*
The Minimum Viable Product (MVP) is a product with just enough features to gather validated learning about the product and its continued development.
This means making your value proposition real with something tangible.
For example, explaining how your value proposition works with:
– Specifications in a data sheet
– A brochure
– A storyboard
– A webpage
– A video
– A product box
Moreover, writing down what your value proposition exactly is will help you organize your ideas. It is a very good exercise.
Now try to come up with an MVP Catalog for any business idea.
Don’t use the previous list and try to find a new one!
A landing page is a simple web page that describes your value proposition.
The user is invited to perform a CTA so that the tester can validate one or more hypothesis.
CTA? What does this even mean?*
CTA means Call to Action. It is an instruction to the audience to provoke an immediate response.
[Optional] What Is a Call-to-Action?
So let’s go back to the point:
You can estimate the interest of your website’s visitors thanks to these CTA metrics.
To track CTA, you can use some solutions we already mentioned:
– Google Analytics
A/B Testing (also called Split Testing) is a technique to compare the performance of two or more options.
What can you test with A/B Testing?
Pretty much everything:
– Alternative features
You need then to compare your CTA for the different options to identify which one performs the best!
[Optional] Roadmap To Test Your Value Proposition