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Manhattan campus â€‹- Hey everyone, Steve here from Collective Campus. Now often times in my conversations with corporate executives, innovations leads, I hear that they have absolutely no issue coming up with lots of ideas. Whether through an idea challenge or a design sprint. But turning those ideas into reality and testing them becomes a massive ordeal. Usually companies will sit on design sprints and ideas for months on end and not do anything with them. Now there seems to be a preconception that testing ideas and running experiments needs to take a lot of time and money. But this is not the case. We can get out of the building from day one. Now the irony in that is that to not run experiments is actually a lot more expensive. Because then you run the risk of taking products to market based on untested assumptions. And spending tens if not hundreds of thousands of dollars and months and months of time building something nobody wants to buy. So today I wanted to quickly run you through how to go about effectively, quickly and cheaply testing assumptions and running experiments. So your first tool is a lean canvas. So we're not gonna look at the whole canvas, we're gonna look at the three critical building blocks. Problem, solution and customer segment. So first up, you wanna map out the problem. So we're using a hypothetical problem here which is that power tools are very expensive given that we only use them say an hour a year, right? Now you could have multiple problem assumptions that you need to test. So we're gonna stick with that one. Once you've defined a problem, you wanna define your customer segment, what do they look like? By way of age, purchasing power, demographics, where do they live? All that sort of stuff because that's gonna help us to effectively target that demographic in our testing. Finally, how do we go about solving this problem? Now you can again have a number of different assumptions. We might use one which is say a marketplace for tools. So think Airbnb for tools. Alright. Now based on all of that, you wanna pull out what you think the critical make or break assumption or leap of faith assumption is underpinning the success or failure of your idea. So think about similar apps or marketplaces. Like Airbnb. Now if people aren't willing to step into a stranger's apartment or stay in their spare bedroom or vice versa, if I'm not comfortable letting strangers into my house, then obviously that falls over. So there's a big leap of faith assumption there. So in the case of a marketplace for power tools, our high level assumption might be that people feel comfortable giving their tools to strangers. Alright. Now in order to test whether or not that assumption is true or not, we could simply say create a test hypothesis which is people will list or sign up rather to list their tools on an online sharing platform. Now, remember, as a founder, as a corporate innovator, you don't want to fall in love with your solution, you wanna fall in love with solving the problem and validating those key assumptions. So how might you build a prototype to test this? Well you don't need to spend months and months on end, you don't need to engage a design agency or an app development agency or anything like that. Two key things you can use here; one, create some ads and two, create a landing page to collect sign ups. Now those ads will be targeted again at the customer segment we identified earlier. And the landing page will simply ask people or show people what the solution is. And we might have a button on that page which asks them to list and therefore once they hit that button, they might see an error message, well not necessarily an error message but a dialog box might pop up that says something along the lines of, "Hey, sorry we're not ready to launch yet but we would love to list your tools once our website is available." But just by testing how many people are clicking on this, you can again gauge what the market interest is. So in this case our metrics, we wanna focus on two key things. One, acquisition and two, activation. So acquisition is the number of people or the percentage of people that see our ad that click. Now our target metric might be five out of 100. And then of those five out of 100, those that come along to the website and click list, again we wanna see that maybe three out of 100 that come along to the website click that button. That's our target metric. Maybe anything below that we wanna then go back to the drawing board, maybe update our ads, maybe update our customer segment, update our assumptions accordingly. So what kind of tools can we use to test these? Well ads, you've got Facebook ads, you've got Google ads, you've got ads across all of the different social media channels plus third party media outlets online. In terms of building a quick landing page, something like Instapage, Squarespace or LaunchRock are all apps that could get you up and running within say 30 minutes. Now once you've done all that testing, you wanna see while we we're targeting five out of 100, we go three out of 100 for acquisition. So lets update the ads, lets update the customer segment, lets update the imagery, the copy we're using and try and move the needle on that three to get it up to maybe a three point five and slowly get to where we need to be. So once you've gone through that whole loop, you would have built a prototype, taken it to market, you've got some data, you wanna learn from that and then again go back to your starting block and update your key assumptions in that validation board. And go through this loop as many times as possible before you run out of money, to figure out what people actually want to buy. Now most recently we ran through a similar exercise with Asahi Beverages and we were able to build seven prototypes in one day to test seven different ideas and actually get them into the hands of the customers. To figure out what they want. In some cases turns out that our assumptions were completely unproven. In other cases, they were.
And aside from that we got a lot of feedback and new insight from customers that hadn't even crossed the minds of both myself and some of the guys from the team at Asahi. So that's how to run experiments 101 in a quick linked in video. I hope you enjoyed that. If you wanna access more content just like this head over to www.collectivecampus.io. Thanks. university of newcastle upon tyne school of architecture planning and landscape.
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