Why focus groups and surveys are ineffective?
Conventional market research methods like focus groups and surveys have limitations because they don’t reflect the actual customer behavior. These methods often rely on customers’ self-reported attitudes and behaviors, otherwise called ‘described behavior’ which is often misleading.
Because, we humans don’t express out loud whatever we do and don’t do what we say. That’s hardwired in us.
In order to solve this challenge, marketers can turn to observing actual customer behavior through online advertising and social media.
Imagine a chef trying a new recipe. The chef can ask their friends for feedback on the taste and texture of the dish, but the real test comes when the dish is served to paying customers. Their reactions, such as how much they eat, how much they enjoy it, and whether they come back for more, provide a more accurate representation of the dish’s success.
But how do you observe the customer behavior real time?
Heat testing.
According to the recent article on HBR by Heather Myers and Zasima Razack, “Validating Product-Market Fit in the Real World,” – heat testing is a way to capture real-time data on how customers respond to product ideas, brand positioning, and marketing messages.
This is done by using advertising to track customer responses, such as clicks, likes, shares, and sign-ups, which provides a more an accurate view about the market demand.
Heat testing to launch a new product line – a case study
A sporting goods company has been looking to expand their customer base for their running shoes. They’ve been using focus groups in the past, but they’re finding the results are not always accurate. To validate their product-market fit, they decide to try heat testing.
The company runs a targeted advertising campaign for their running shoes on social media and tracks the response from its target audience. They see that their target audience is mostly responding to ads for shoes with extra cushioning and bright colors.
Based on this real-time data, the company decides to shift their marketing focus to highlight these features and also introduce new shoes with extra cushioning and brighter colors to its product line.
Next, the company monitors online activity for discussions about running shoes and sees that there’s a lot of interest in environmentally friendly shoes. They decide to add eco-friendly materials to their new line of shoes and market them to attract this segment of their target audience.
The heat testing process helped the company validate their product-market fit and make informed decisions on what its target audience wants and how it can better serve them. As a result, they see a significant increase in sales and expand their customer base.
“The best way to predict the future of your product is to launch it and see how it performs in the market. Avoid the extremes – jumping to the conclusion quickly or ending up in too much analysis paralysis.” Eric Ries in his book The Lean Start-up
Validating the marketing messages and offer using heat testing
Let’s take another example of a company that sells athletic gear, and wants to expand its customer base by targeting young adults who are fitness enthusiasts.
They use traditional market research methods such as focus groups and surveys to validate their marketing message and offer. However, they noticed the insights they get don’t help in boosting the conversion rates and offer uptakes.
They’re unable to see a clear picture of their target audience’s behavior, as the participants respond differently when they’re aware they’re part of a research process.
The company decides to try heat testing and create online ads that target young adults and track their responses to various marketing messages and product offers. They analyze the data they collect to see what resonates with their target audience, such as the type of language they use, the images they prefer, and what prompts them to take action.
By using heat testing, the company was able to comprehend its target audience’s actual behavior and preferences, which allowed them to tailor their marketing messages and offers in a way that resonated with them.
To summarize, you can think of heat testing just like a driver uses a speedometer to gauge the speed of her car. It allows companies to gauge their target audience’s responses to their marketing efforts in real time.
