smoke test experiment

Clearing the Air with Smoke Tests in Lean Startup Experiments

1. introduction to smoke testing in lean startups, 2. the role of smoke tests in validating business hypotheses, 3. a step-by-step guide, 4. successful smoke tests in action, 5. analyzing smoke test results for maximum insight, 6. post-smoke test strategies, 7. common pitfalls in smoke testing and how to avoid them, 8. integrating smoke tests with other lean startup principles, 9. the future of smoke testing in lean methodologies.

Smoke testing is a crucial early-stage assessment in the lean startup methodology, where the primary goal is to validate critical assumptions with the least effort possible. This approach is akin to a litmus test for the viability of a product concept, allowing entrepreneurs to 'smoke out' any issues before significant resources are committed. It's a strategy that aligns with the lean principle of building a minimum viable product (MVP) — a version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort. The term 'smoke test' originates from hardware testing, where a device is powered on for the first time and considered successful if it does not catch fire. In the context of lean startups, smoke testing often involves presenting a basic version of a product or a product concept to potential users to gauge interest and gather feedback.

1. Concept Validation : Before a single line of code is written or a prototype is built, smoke tests can help validate the concept. For example, a landing page that describes the product and asks visitors to sign up for more information can measure interest. If the page receives a high conversion rate , it's a positive signal that the concept has potential.

2. Feature Prioritization : By releasing a series of smoke tests focused on different features, startups can determine which features are most important to their target audience. This is often done through A/B testing, where two versions of a product are presented to users to see which one performs better.

3. Market Testing : Smoke tests can also be used to understand market demand . A startup might run targeted ads for a product that doesn't yet exist and track how many people click through to learn more. This method was famously used by Dropbox, which created a video demonstrating its file-syncing software before the product was fully built.

4. Price Sensitivity : determining the right price point is another area where smoke tests can provide insights. Startups can present different pricing models to potential customers and measure which one has the best uptake. This helps in understanding what customers are willing to pay and what they value in the product.

5. Channel Testing : Identifying the most effective marketing channels is another application of smoke testing. By promoting the product across various channels (social media, email, online ads) and measuring the response, startups can focus their efforts on the channels that yield the best results.

In practice, a lean startup might create a mockup of a mobile app they intend to develop and then present it to a focus group. The group's reaction to the mockup — whether they understand the value proposition, find the interface intuitive, and express a genuine interest in using the app — can provide invaluable feedback. This feedback loop is essential in the lean startup process , as it helps to ensure that the product development is on the right track and resonates with the target audience .

By employing smoke tests, lean startups can navigate the fog of uncertainty that surrounds new product development. It's a way to test the waters without diving in headfirst, ensuring that when the full product launch does occur, it meets a clear market need and has a significantly higher chance of success. Smoke testing is not about avoiding failure but about failing intelligently, where each test brings the startup closer to a product that the market truly desires. It's a testament to the adage 'fail fast, learn fast, and adapt quickly,' which is at the heart of the lean startup philosophy.

Introduction to Smoke Testing in Lean Startups - Clearing the Air with Smoke Tests in Lean Startup Experiments

Smoke tests are a crucial component in the lean Startup methodology , serving as a preliminary check to gauge the viability of business hypotheses. These tests are designed to be quick and cost-effective , providing immediate feedback on whether a particular business idea has the potential to meet customer needs and market demands . By deploying a minimal version of a product or a basic feature set, entrepreneurs can observe real-world user interactions and gather data that speaks volumes about the product's future success or the need for pivoting.

From the perspective of a startup founder, smoke tests are a litmus test for the product's value proposition. They allow for testing the fundamental assumptions about what customers want without the need for extensive resources or time. For instance, a company might roll out a landing page with a call-to-action for a product that hasn't been fully developed yet, just to measure interest levels.

From a customer's point of view, these tests often come across as early previews or exclusive access to upcoming products. This can generate buzz and provide valuable feedback, but it also sets expectations. If the smoke test is too far removed from the eventual product, it can lead to disappointment and erode trust.

Here's an in-depth look at the role of smoke tests in validating business hypotheses:

1. Assumption Testing : At the heart of every smoke test is the goal to test a specific assumption. For example, a startup might assume that there is a high demand for an automated plant-watering system. By creating a simple sign-up page for an "upcoming product," they can measure interest through sign-up rates.

2. Cost-Effectiveness : Smoke tests are designed to be low-cost. Rather than investing in full product development, a company can use a mock-up or a video demonstration to test the waters. This approach saves both time and money , which is essential for startups operating on lean budgets.

3. Speed of Learning : The faster a startup can validate or invalidate a hypothesis, the quicker it can iterate or pivot. Smoke tests provide rapid feedback loops, allowing businesses to learn and adapt at a pace that matches the fast-moving markets they operate in.

4. Risk Mitigation : By validating hypotheses early, smoke tests help mitigate the risk of product failure. It's better to learn that a product isn't desired at the smoke test stage than after a full launch.

5. Market Engagement : Smoke tests can also serve as a tool for engaging with the market. They can create anticipation and allow potential customers to feel involved in the product development process , which can be leveraged for marketing purposes.

6. data-Driven decisions : The data collected from smoke tests can inform more than just the viability of a product. It can influence marketing strategies , feature prioritization, and even business models.

To illustrate, let's consider a hypothetical example: a startup wants to launch an app that provides personalized workout plans . Before building the app, they release a basic version with limited functionality. The number of downloads, user engagement, and feedback received act as indicators of the app's potential success and areas for improvement.

Smoke tests are not just a step in the validation process; they are a strategic tool that can shape the trajectory of a startup. By providing early and tangible insights, they help entrepreneurs navigate the uncertain waters of launching a new product with greater confidence and clarity. The key is to design these tests in a way that they deliver actionable data while maintaining alignment with the long-term vision of the product .

The Role of Smoke Tests in Validating Business Hypotheses - Clearing the Air with Smoke Tests in Lean Startup Experiments

Smoke tests are a crucial component in the Lean Startup methodology, serving as preliminary checks to ensure the core functionalities of a product work without delving into finer details. They are akin to the first impressions in product testing, offering a quick, cost-effective way to validate assumptions and gauge the viability of a product before it enters the more rigorous phases of testing. By focusing on the most critical aspects of a system, smoke tests can reveal significant issues early on, which is essential for startups operating under constraints of time and resources.

From the perspective of a developer, smoke tests are the 'litmus test' for code commits, ensuring that any new changes do not disrupt the primary operations of the application. For a product manager, these tests are a checkpoint to determine whether the product's value proposition holds true in a real-world scenario . Meanwhile, from a customer's standpoint, smoke tests can be seen as a preview of the product's reliability and functionality, influencing their initial trust and continued engagement with the product.

Here's a step-by-step guide to designing effective smoke tests:

1. Identify Core Features : Begin by pinpointing the essential features that your product cannot function without. For a messaging app, this could be the ability to send and receive messages.

2. Create Simple Tests : Develop straightforward tests that verify these core features are working. For instance, sending a message and checking if it's received.

3. Automate the Process : Whenever possible, automate these tests to run with every build, saving time and ensuring consistency.

4. Monitor and Analyze Results : Keep a close eye on the outcomes of your smoke tests. Any failure should be addressed immediately as it indicates a fundamental problem with the build.

5. Iterate and Expand : As your product evolves, so should your smoke tests. Regularly review and update them to cover new core features.

For example, if a startup is developing an e-commerce platform, a smoke test might involve completing a purchase transaction. This test would check if a user can search for a product, add it to the cart, and successfully check out. If this basic functionality fails, it indicates a severe problem that needs immediate attention, underscoring the importance of smoke tests in catching critical issues early.

Smoke tests are not just about finding bugs; they are about ensuring that the product's backbone is strong enough to support further development and user interaction . They are a low-cost, high-impact tool that can significantly influence the direction and success of a product in its early stages. By implementing a robust smoke testing process, startups can clear the air of uncertainty and pave a clearer path towards a market-fit product.

A Step by Step Guide - Clearing the Air with Smoke Tests in Lean Startup Experiments

Smoke tests are a crucial component in the Lean Startup methodology, serving as preliminary checks to determine whether a new product or feature has the potential to solve a real problem for users. These tests are designed to be quick and cost-effective, providing immediate feedback that can be used to iterate or pivot as necessary. The value of smoke tests is best understood through real-world applications , where they have been instrumental in guiding startups towards success .

1. Dropbox's minimal Viable product (MVP) Video : Before building their now-famous cloud storage service, Dropbox created a simple video demonstrating their product's concept. This video served as a smoke test to gauge interest. The overwhelming positive response validated the demand for such a service, leading to the successful launch of their MVP.

2. Zappos' Shoe Sales Test : The founder of Zappos, Nick Swinmurn, conducted a smoke test by posting pictures of shoes online without actually having an inventory. When a pair was purchased, he would buy the shoes from a store and ship them. This test confirmed customer willingness to buy shoes online, paving the way for Zappos' future growth.

3. Buffer's Two-Page Website : Buffer, a social media scheduling tool, started as a two-page website. The first page explained the service, and the second page was a pricing plan. This smoke test aimed to validate whether users would pay for the service. The interest shown by users who clicked through to see the pricing plans was a clear indicator of market demand .

4. Food on the Table's Manual Service : Originally, Food on the Table provided meal planning and grocery shopping services manually. They used this approach as a smoke test to understand customer needs and refine their offering. The insights gained from this hands-on experience were invaluable in developing their automated platform.

5. Groupon's PDF Vouchers : Groupon initially tested their discount voucher system by sending out PDF vouchers manually via email. This smoke test allowed them to verify the business model's viability without investing in a full-fledged automated system.

These case studies highlight the diversity of smoke tests and their ability to provide critical insights from a minimal investment. By starting small and focusing on user feedback, startups can navigate the uncertain waters of product development with greater confidence and agility. Smoke tests are not just about testing the product; they're about testing the assumptions behind a business model , ensuring that there's a market for the product before committing significant resources. The examples above showcase how different approaches to smoke tests can lead to valuable learnings and, ultimately, successful products that resonate with users. Whether it's a video, a two-page website, or manual services, the key is to start with the smallest step possible to validate the core hypothesis and then build upon that foundation. Smoke tests are a testament to the power of starting lean and learning fast.

Successful Smoke Tests in Action - Clearing the Air with Smoke Tests in Lean Startup Experiments

Smoke testing is a preliminary testing method used to reveal simple failures severe enough to reject a prospective software release. In the context of lean startup experiments , smoke tests serve as a metaphor for the initial attempts to validate a business idea with minimal effort. The results from these tests are crucial; they provide the first real data points on whether the hypothesis about a product or service holds true. Analyzing these results goes beyond merely checking if the test passed or failed. It involves a deep dive into the data to glean insights that can guide the next steps in the product development cycle.

From the perspective of a product manager, the analysis might focus on user engagement metrics and feedback to assess product-market fit . A developer, on the other hand, might look at technical performance and stability issues. Meanwhile, a business analyst could be interested in the conversion rates and customer acquisition costs. Each viewpoint contributes to a comprehensive understanding of the smoke test's outcomes.

Here's how you can analyze smoke test results for maximum insight:

1. Quantitative Analysis : Start by collecting numerical data from the tests. This includes metrics like the number of users who signed up, the percentage who completed the core action, and the average session duration . For example, if you're testing a new feature that aims to increase user retention , you'd want to see a significant percentage of users returning after their initial visit.

2. Qualitative Feedback : Numbers don't tell the whole story. Gather user feedback through surveys or interviews to understand their experience. For instance, if users signed up but didn't use the feature much, qualitative feedback might reveal that they found it confusing or not valuable.

3. Segmentation : Break down the data by user demographics, behavior, or source. This can reveal insights such as whether a particular age group finds more value in the product or if users from a specific marketing channel are more engaged.

4. A/B Testing : If you ran multiple versions of the smoke test (e.g., with different landing pages or feature sets), compare the results to see which performed better. This can help you refine your value proposition or feature set.

5. Trend Analysis : Look at the results over time to identify trends. Are more users completing the core action as the product evolves? Is there a drop in engagement after a certain point?

6. Benchmarking : Compare your results against industry standards or past experiments. This can help set realistic expectations and goals for future tests.

7. Actionable Insights : Finally, translate your findings into actionable insights . If a particular feature has low usage, consider whether it needs to be improved or scrapped. If users are dropping off at a specific point, investigate what might be causing friction.

For example, a smoke test for a new online marketplace might reveal that while user sign-ups are high, the number of listings created is disappointingly low. A closer look at user feedback could indicate that the process for creating a listing is too complicated, leading to a redesign of the user interface to streamline the process.

Analyzing smoke test results requires a balance of quantitative and qualitative methods , a consideration of different perspectives, and a focus on deriving actionable insights. By thoroughly examining the data from these initial tests, startups can make informed decisions that steer their product development in the right direction, ensuring that they build something that truly resonates with their target audience.

Analyzing Smoke Test Results for Maximum Insight - Clearing the Air with Smoke Tests in Lean Startup Experiments

Once you've conducted a smoke test and gathered initial data, the real work begins. Iterating on your product is a continuous cycle of refinement and learning. Post-smoke test strategies are crucial for transforming initial hypotheses into a product that resonates with your target market . This phase is about analyzing the feedback, both qualitative and quantitative, to identify patterns and insights that can guide your next steps. It's a time for open-mindedness and flexibility, as the data may challenge your assumptions and require you to pivot or make significant changes to your product offering.

From the perspective of a product manager, iteration might mean prioritizing features based on user engagement and feedback . A developer might interpret the data to refactor code or improve system architecture for better performance. Meanwhile, a marketing specialist could see an opportunity to adjust messaging to better align with customer pain points uncovered during the smoke test.

Here are some in-depth strategies to consider post-smoke test:

1. analyze User interactions : Look at how users interacted with your product. Which features were used the most? Where did users drop off? Tools like heat maps or session recordings can provide valuable insights .

2. Customer Interviews : Conduct interviews with a subset of your test users. Ask open-ended questions to understand their experience. For example, if users frequently abandoned a sign-up process, find out why.

3. A/B Testing : If you're unsure about which direction to take, A/B testing can help. For instance, if your smoke test showed that users were interested in two different features, test them both to see which one has a higher impact on user retention .

4. Pivot or Persevere : Decide whether to pivot (make a fundamental change to the product) or persevere (keep improving on the current path). This decision should be data-driven . For example, if the smoke test indicated that users were not willing to pay for your product, you might need to pivot to a freemium model.

5. Iterative Development : Implement changes in small, manageable iterations. This allows for continuous testing and refinement. For example, if users found a feature too complex, simplify it in the next iteration and test again.

6. Measure Impact : After making changes, measure their impact. Have the changes improved user engagement or conversion rates ? Use metrics like daily active users (DAU) or customer lifetime value (CLV) to gauge success.

7. Feedback Loops : Create channels for ongoing user feedback. Whether through surveys, user forums, or in-app feedback tools, make it easy for users to share their thoughts.

8. legal and Ethical considerations : ensure that any changes you make are in compliance with legal standards and ethical practices, especially when handling user data.

By employing these strategies, you can ensure that your product evolves in a way that is informed by real user data and feedback, increasing the likelihood of market fit and success . Remember, the goal is to learn fast and adapt quickly, keeping user needs at the forefront of your development process.

For example, a social media app might find through smoke testing that users are particularly drawn to its privacy features. In response, the company could iterate by enhancing those features, conducting A/B tests to compare different privacy options, and measuring the impact on user retention and satisfaction. This iterative approach, grounded in user feedback, helps the product to mature and meet the market's needs more effectively.

Post Smoke Test Strategies - Clearing the Air with Smoke Tests in Lean Startup Experiments

Smoke testing is a crucial early step in the software development lifecycle , often used in lean startup environments to quickly validate functionality, integration, and the stability of a product or feature before it undergoes more rigorous testing phases. However, despite its apparent simplicity, smoke testing can be fraught with pitfalls that can compromise its effectiveness and lead to false confidence or overlooked defects. Understanding these pitfalls from various perspectives – be it a developer, tester, or product manager – is essential for ensuring that smoke tests serve their intended purpose and provide real value in the lean startup experiment process.

1. Lack of Clear Objectives : Often, teams embark on smoke testing without a clear understanding of what they aim to achieve. It's crucial to define the scope and objectives of smoke testing. For example, a developer might focus on ensuring that the application launches successfully, while a tester might look for basic user flow to work as expected.

2. Insufficient Coverage : A common mistake is to perform smoke tests that are too superficial, missing out on critical functionalities. This can be avoided by creating a checklist that covers all vital areas of the application. For instance, if an e-commerce app is being tested, the smoke test should include adding items to the cart and proceeding to checkout, not just logging in.

3. Ignoring Non-Functional Aspects : Smoke tests often focus solely on functional aspects, neglecting performance, security, and usability. It's important to include basic non-functional checks, like load times for key pages, to catch any glaring issues early on.

4. Over-Reliance on Automated Tests : While automation can increase efficiency, relying solely on automated smoke tests can lead to missed defects. Manual exploratory testing can uncover issues that automated tests may not be designed to catch. For example, a script might check if a button is clickable, but a human tester might notice that the button is misaligned on the page.

5. Not Updating Tests Regularly : As the product evolves, so should the smoke tests. Failing to update tests can result in outdated checks that no longer reflect the current state of the product. A regular review process can ensure that smoke tests remain relevant and effective.

6. Poor Communication of Results : The results of smoke tests must be clearly communicated to all stakeholders. If a smoke test fails, developers need detailed information to address the issue promptly. Conversely, a pass should be reported with caution, emphasizing that it's just the first step in the testing process.

7. Skipping Smoke Tests Due to Time Constraints : In fast-paced startup environments, there's a temptation to skip smoke tests to save time. However, this can lead to more significant issues down the line. Even a quick smoke test can catch critical failures that would be costlier to fix later.

By being aware of these common pitfalls and actively working to avoid them, teams can ensure that their smoke testing efforts are robust and contribute positively to the lean startup experiment cycle. This proactive approach not only saves time and resources but also helps in building a more reliable and user-friendly product . Remember, the goal of smoke testing in a lean startup context is not just to tick a box but to provide quick, actionable feedback that drives the iterative development process forward.

Common Pitfalls in Smoke Testing and How to Avoid Them - Clearing the Air with Smoke Tests in Lean Startup Experiments

Integrating smoke tests within the framework of Lean startup principles provides a robust approach to validating business hypotheses and accelerating product development . Smoke tests, which are preliminary tests designed to reveal simple failures severe enough to reject a prospective software release, align closely with the Lean Startup's emphasis on iterative design, customer feedback, and agile adaptation. By incorporating smoke tests, startups can quickly gauge the viability of a feature or product without fully developing it, thereby saving time and resources. This integration also supports the build-Measure-Learn feedback loop , encouraging startups to build a minimum viable product (MVP), measure its performance in the market, and learn from the results. The insights gained from smoke tests can inform subsequent iterations, ensuring that the product evolves in response to actual user needs and behaviors.

1. Early Validation : Smoke tests serve as a reality check for the MVP by providing immediate data on whether the core functionality resonates with the target audience. For example, a company might release a landing page for a new app feature to measure interest before development begins.

2. Cost Efficiency : By identifying non-starters early on, smoke tests prevent the sunk cost fallacy , where more resources are poured into a failing project. A classic case is Dropbox's initial video demo, which validated demand without building the full product.

3. customer-Centric development : Integrating smoke tests ensures that customer feedback is not an afterthought but a guiding principle from the outset. Zappos' founder tested the online shoe store concept by selling shoes from a local store online before investing in inventory.

4. Risk Mitigation : Smoke tests help in identifying potential risks and technical issues that could derail the project. They act as a safety net, ensuring that only the features with proven demand make it to full-scale development.

5. Speed to Market : In the fast-paced startup environment , speed is crucial. Smoke tests can significantly shorten the time to market, allowing startups to stay ahead of the competition. Twitter, for instance, started as a side project and quickly pivoted based on user engagement.

6. Iterative Learning : Each smoke test is an opportunity to learn and refine the business model . The insights gathered can lead to pivots or iterations that are more aligned with market needs, as seen with the photo-sharing app Instagram's pivot from Burbn.

By weaving smoke tests into the fabric of lean Startup methodologies , entrepreneurs can create a more resilient and responsive business strategy that is capable of weathering the uncertainties of the startup journey . This integration not only conserves resources but also fosters a culture of innovation that is deeply attuned to the voice of the customer. The examples above illustrate how smoke tests, when used effectively, can be a powerful tool in the Lean startup arsenal, providing clarity and direction in the often chaotic process of bringing a new product to life .

Integrating Smoke Tests with Other Lean Startup Principles - Clearing the Air with Smoke Tests in Lean Startup Experiments

Smoke testing, often considered the frontline defense in software development, is a crucial component in Lean methodologies, particularly within the iterative cycles of Lean startups. This approach, characterized by its quick and cost-effective nature, aligns seamlessly with the Lean principle of maximizing value while minimizing waste. As we look towards the future, smoke testing is poised to evolve in several key areas, adapting to the ever-changing landscape of technology and project management.

From the perspective of a project manager, the integration of smoke testing into continuous integration pipelines stands as a testament to its growing importance. It's not just about catching errors early anymore; it's about ensuring a constant state of readiness for deployment, a non-negotiable in today's fast-paced market .

1. Automation : The future will likely see an increase in automated smoke tests. These can be triggered automatically after each commit, ensuring immediate feedback on the health of the codebase.

2. Integration with DevOps : Smoke testing will become more deeply integrated with DevOps practices, serving as a gatekeeper before changes are merged into the main branch.

3. Enhanced Tools and Frameworks : Expect to see more sophisticated tools that can generate and manage smoke tests, making them more accessible to teams without specialized testing knowledge.

4. Shift-Left Testing : The 'shift-left' approach to testing, which involves testing earlier in the software development lifecycle, will incorporate smoke testing as a standard step.

5. Predictive Analytics : Leveraging data analytics, future smoke testing could predict potential failure points, allowing teams to proactively address issues before they arise.

For example, consider a startup developing a new mobile application. By implementing automated smoke tests within their CI/CD pipeline, they can quickly verify that a new feature hasn't disrupted the app's core functionalities after each update. This not only saves time but also instills confidence in the team to iterate rapidly, knowing that any significant breakage will be caught almost immediately.

Smoke testing is not just surviving in the Lean environment; it's thriving and expanding its role. It's becoming smarter, more integrated, and more essential to the Lean process than ever before. As methodologies continue to evolve, smoke testing will undoubtedly adapt, offering new ways to ensure quality and efficiency in software development . It's an exciting time for developers and project managers alike, as they harness the power of smoke testing to streamline their workflows and deliver exceptional products to market with unprecedented speed.

The Future of Smoke Testing in Lean Methodologies - Clearing the Air with Smoke Tests in Lean Startup Experiments

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Jeroen van den Boom

Validating purchase intention in 4 easy steps: the smoke test.

Smoke Tests enable you to get all the answers you need at a fraction of the cost.

Let me guess: You’ve come up with a killer, game-changing concept, and you’re itching to get real-world market validation in a way that is quick, lean, and accurate.Good news. You’ve come to the right place.

If you’re a startup, incubator or intrapreneur, you don’t have the time it takes to build a product only to realize (months later) that nobody actually wants to buy it. The risk is just too big. You need to operate in a way that is cheap, quick and efficient. That’s where Smoke Tests come in.

Whether you’re bringing a new product to the market, trying out a new idea or looking to unlock capital through concept validation — Smoke Tests enable you to get all the answers you need at a fraction of the cost.

This practical and easy-to-use market validation technique differentiates itself from others because:

It puts a great deal of focus on actual “purchase intent”
There is a decreased risk of interviewer bias (e.g. assumptions made by the interviewer that can skew your data)
It provides a record of actual purchase intention , so there is less risk of recording data from respondents who don’t follow through when they express an intent to buy (e.g. in quantitative surveys).

This means that your end results will be more precise and reliable. And who doesn’t love a decreased margin of error?

Discover our 50+ lean validation experiments.

Join 200+ senior corporate entrepreneurs in the bundl venture club, what is smoke testing.

It’s a technique that enables you to gather real-world, purchase intent data on your product or service idea as if it was ready for launch.

You’ll have to create a website for your product or service, complete with images, product specs, and most importantly, a “buy” button. Consumer tracking tools will also play a key role, but we’ll get into that later on.

The goal is to find out how many people will end up clicking the “buy” button, showing proof of their actual intent to buy your product. In the end, you’ll have the answer to a very important question: Will this concept make any money?

When is the Right Time for Market Validation?

It can sometimes be confusing to figure out the optimal time for your Smoke Test. But there are some concrete milestones you should have reached before you start:

Your concept is solid and you have a detailed outline of how to launch it
You’ve identified your target audience (e.g. people who are already paying for similar solutions)
You’ve researched the competition and found a unique selling proposition in your market space

How to Validate Market Demand in 4 Easy Steps

From a distance, it might seem like you’re about to climb Everest. But don’t fret: If you follow these 4 basic steps, you’re sure to get the market demand validation you need:

Have a unique selling proposition
Create a website that explains and sells your idea
Set Up the right tracking tools for market validation
Use digital marketing tools to attract potential clients to your website

Ready to take a more in-depth look at what it takes to achieve each step? Let’s do it!

Step 1: Have A Unique Selling Proposition (USP)

A “unique selling proposition” or USP goes further than coming up with a great product or service idea. It refers to the exclusive added value your customer gets when buying your product.

Here are some tips to help you figure out if you have a strong USP:

You have empathized with your customer
You have identified a problem you want to solve
You have researched your competition
And you’ve found a proposition that is unique in your market space

In the end, your USP can basically serve as a tagline used to help make your product more memorable. Some good examples are:

MasterCard: There are some things money can’t buy. For everything else, there’s MasterCard
Youtube: Broadcast Yourself
BMW: The ultimate driving machine
Budweiser: The king of beers

Smoke test example: landing page for an ice cream toaster

Step 2: Create a Website That Explains and Sells Your Idea

In most cases, Smoke Test websites are built as a “prop” to help gather intelligence on buyer intent. You’re basically creating a space where you can track and study the behavior of your potential clients.

Don’t be daunted by this step just because you’ve never done it before. Creating a website these days is incredibly easy and can be free. There are a lot of drag-and-drop website builders that provide beautiful templates. Any of these platforms will do quite nicely:

Squarespace.com
Instapage.com

In terms of content, here’s a list of essentials you can’t do without:

A short but descriptive heading (use your USP!) with a striking image
3 key benefits that explain the value of your product to the user
3-4 special features (anything that makes your idea functional and unique)
A form of credibility, convincing the visitor that the solution is both REAL and AUTHENTIC.
A CTA button e.g. buy now, shop now, book today, order now (they all work, depending on the type of product or service you’re pitching)

It’s also a good idea to upgrade your domain, instead of using free ones that are branded. Having a custom domain adds to the credibility of your website and most platforms have a pretty straight forward process. It only costs a few extra bucks and the return is well worth the extra cost.

Validate purchase intent through visitor recording

Step 3: Set Up Tracking Tools for Market Validation

Now that your website is ready, it’s time to start gathering some sweet data. But first things first: What exactly do you need to track?

Here are 2 essential metrics you’ll need to focus on:

Number of website visits
Number of people who clicked on your CTA button

One of the easiest tools you can use for tracking is VWO insights. All you have to do is attach tracking codes to your CTA buttons and any other click-through options available on your website. There is also a 30-day free trial option, so you can try it out first before making a purchase.

If you need more detailed information on how to set up your tracking with VWO, click here .

Additional tools like VWO’s “heat maps” or Hotjar can be useful to help you track client behavior inside your website. These services help you track:

Where visitors place their mouse (e.g. indicating interesting features)
Scrolling behavior
Clicking (e.g. showing areas of interest)
Exit intent

If you want to get really serious about your results, you can even create 2 different versions of your website in order to perform A/B testing. The differentiating factors could be as simple as picking out 2 different headlines.

The idea here is to gather as much information as you can on conversion rates, buyer intent and which options are the most popular with your audience.

Smoke test example: advertisement for an ice cream toaster

Step 4: Generate Traffic for your Purchase Intention Research

Now that your website and tracking tools are set up and ready to go, it’s time to start generating some traffic.

Here are some useful pointers to get you started:

Study how other industry players advertise similar products and services
Find out who’s already paying money to use them
Put some thought into your key demographic (e.g. age, language and location)
Research the “high intent keywords” commonly used to find similar products or services

Knowing your audience will take you a long way in terms of creating effective ads that will generate traffic.

Now it’s time to set up your ads, and there’s a myriad of tools available to help you do it.

If it’s your first time doing a Smoke Test, I suggest you stick to these:

Google Adwords
Facebook ads
Drip campaigns (but don’t spam – make sure to use an email list)

Paid channels like Google and Facebook ads are great because they’re easy to set up and they allow you to work with your own budget.

Once you’re comfortable, you can even start running variations on existing ads and refine your copy and audience based on the results. The ads themselves can be a sort of dry-run to help you boost future marketing efforts.

One last thing: Keep in mind that you’ll need at least 1000 visitors for your results to be significant enough to base your learnings on.

How do You Analyze the Results of Your Smoke Test?

At this point, you might be wondering how you’re going to make sense of it all. How will you know your idea has the commercial viability it needs to go the distance?

The first thing you need to do is track your conversion rate which is:

Once you have that part figured out, you just apply a simple cut-off rate:

Anything lower than 0,5% means the idea isn’t viable or still needs work
0,5% or higher is a green light to take your idea to the next level!

If you do a little research, you probably notice that larger e-commerce stores consistently hit 2 to 3% conversion rates. But these stores have huge teams constantly optimizing their buyer experiences. A conversion rate of 0,5% on a landing page that was built by one person in a few days means there’s a LOT of untapped potential there.

High scores can be quite thrilling, but it’s important to remember that they’re not the end goal of a Smoke Test. The goal is actually to prove the commercial viability of your idea so that you can make some important decisions.

Final Thoughts on Smoke Testing

Smoke Tests won’t always pan out the way you expect them to, and sometimes you’ll have to iterate at various points in the process before reaching any meaningful results. It’s a trial and error technique that takes practice, creativity and a whole lot of patience.

It can be tempting to keep iterating and re-examining waning results but don’t fall into that trap. Stay unbiased, clear-headed and let the data guide your decision-making process.

You’ll either:

Move forward with a validated concept
Make some necessary adjustments before re-testing
Or cut your losses and move on to the next project

No matter how it turns out, you will have met your goal: To know if people will buy your product before investing time and resources into actually building it. In other words: you can’t really lose. ------------ Would you like to test new growth opportunities, target audiences and value propositions faster and more productively than ever? We can help you go from manual, trial-and-error testing to cutting-edge, continuous validation .