Here’s our approach to product testing.
Many new product or service concepts, including health insurance, can be configured in hundreds of thousands (and even millions) of ways. This is because most concepts are made up of multiple attributes and levels that must be perfectly combined and offered at just the right price before they will succeed. In today's highly competitive health insurance marketplace, advanced analytics (conjoint, etc.), along with automated search algorithms and segment-specific offers, give insurance companies a real advantage when launching new insurance products. Special Report: Using Advanced Conjoint to Design Winning Health Insurance Products
New Product Failure Rates Are High New products fail at an alarming rate. Dozens of studies put failure rates at 60% to 80%. So, why do so many new products fail? Most companies rely on some form of product research to understand their consumers' choices, preferences and buyer journeys. However, fewer companies dig deeper to understand how these preferences differ across multiple segments and how they change in response to new competitive offerings, prices and disruptions.
Analytics or intuition? What’s most important? There’s a spirited debate around this question. Are the big data and analytical “quants" really going to rule the new world? Or, will the more intuitive and creative types offer leading companies the competitive edge? A quick review of three independent surveys across thousands of companies yields this answer: analytics is your winner. Let’s take a look at our three sources: Bain & Company, MIT Sloan Management Review, and the Product Development Institute (related to Stage-Gate International).
In a chaotic global economy powered by escalating consumer expectations and hyper competition, simply having a great product idea is no longer enough to guarantee success. Instead, companies that seek profitable growth must commit to research-driven product and service innovation to keep up with—or surpass—the competition. Put simply, companies must continually bring the voice of their customers into their innovation labs, engineering offices, marketing teams and executive boardrooms if they want to guarantee consistent growth.
In the 2013 GRIT report, online insight communities sat at the top of the list for emerging technologies that market research clients actually want to use, beating out mobile surveys, social media mining, and text analytics for the honor. (A summary of this is illustrated nicely in an infographic.)