Behavioral Economics Testing

The Importance of Testing (or are you sure that worked?)

A long, long time ago, in a financial institution far, far away I worked closely with my team to roll out a new product designed to attract fresh deposits from our customer base.   We were very successful;  balances in our new product grew quickly and our overall deposit base grew by 8% year over year.  Pleased and more than a little proud,  I bragged about our success at a national trade association meeting, only to find out that my primary competitors had all grown their deposit base by almost 10% during the same time period.  Bummer.

What happened?  We failed to do real testing and as a result, we missed several warning signs that would have alerted us to some flaws in our offering. Most of the time, businesses do “beta testing”, but for many companies, beta is just the early phase of a full rollout. Too often we “test” new stuff with our best clients and find ourselves disappointed in the results when we go to market.  Have you experienced research that says customers will love the new thing and are willing to pay for the new thing, then you roll out the new thing but very few people acquire? You’ve fallen victim to poor or non-existent testing.

rct

The discipline of a randomized controlled trial (RCT) is well embedded in the scientific community but is completely unknown in much of the business world.  RCT works to remove all the variables in the testing environment except the product, service or process being tested.  Run properly, with a disciplined approach and a sufficient number of interactions with customers or members, you can then feel confident about the actual impact if the new thing is broadly introduced to the market.

We help companies structure and execute trials to ensure your market is truly #beingunderstood.  Test our approach; it really works.

understoodproductions.com

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