Updated: April 12, 2023 - 3 min read
Having a product idea is great… But how do we know if the problem we are trying to solve actually exists? Learn the ways you can do this!
A/B testing is the most common approach used to validate your hypothesis.
Online Mortgage Lead Gen Flow Overview
Bigger focus on a single transaction (‘lead’)
Sensitive to market conditions (Ex. Increase in interest rates)
Impacted by government regulations (Ex. HARP extension)
Marketing-driven (Ex. changes in marketing costs)
Highly competitive and dynamic
Lead buyers exert great influence on the quality and price for leads they accept
3 Tactics to Test Your Product Idea
1. A/B testing
A way to compare two versions of something to see which one performs better.
Allows for distinction between causation and correlation
Streamlined and easy to use tools available (ex. Optimizely)
Can yield significant improvements to KPI goals
Does not maximize value across audiences
Not easily adaptable to changes in user behavior or market conditions
Can be time-consuming to get statistically significant results and business value
Appropriate for testing fundamental changes in the online experience.
Test fundamentally different designs or user experiences (Ex. LMB)
Test difference in a number of steps and grouping of questions for online forms (Ex. LMB)
Longer forms and moving deeper in the funnel (Ex. LT)
Customizing a service or a product to meet the specific needs of a segment of consumers.
Maximizes the business value from specific consumers’ groups
Presents the best customer experience to specific consumers’ groups
Difficult to discover differences in audiences
Costly to implement personalized experiences at scale
3. Predictive Personalization
Use predictive technologies to determine the variations of the product or service which performs best for specific consumer groups.
Maximizes the business value across all consumer groups
Presents the best customer experience across all consumer groups
Fewer commercial tools are available
Costly or complex to implement technology in-house
The ideal approach for sustainable ongoing optimizations, capturing incremental value and maximizing value.
Engaging headlines on landing pages
Convenient ‘common’ answers
Consistent CTA placements
Setting expectations and progress indicators
Effects of branding and site logos
Use A/B testing to find the best base site experience
Use personalization to optimize for different audiences
Leverage predictive personalization if available to:
Maximize business value and consumer satisfaction
Adapt to changes in market and consumer behavior
Streamline ongoing optimizations
Have you ever applied any of these approaches? Which one worked for you? Share your comments with us!
Updated: April 12, 2023