“So,” the executive sponsor of the new growth effort said. “What do we do now?”
It was the end of a meeting on a promising initiative to bring a new health service to apartment dwellers in crowded, emerging-market cities. A significant portion of customers who had been shown a brochure describing the service had expressed interest in it. But would they actually buy it?
The health service company decided to run two three-month long market tests, making modifications based on insights from both runs. The numbers improved with each iteration, and the company felt that it was confident enough to take the next step towards aggressive commercialization.
It is very rare for innovation decisions to be black and white – the most logical thing to do is to test the market quickly and cheaply. Based on insights generated, there are four options for your idea: continue, accelerate, pivot, or discontinue.
How do you test the market? How many tests do you conduct? What kinds of tests? The answers depend on the resources dedicated to your new growth effort. There are fourteen experiment “recipes” in Innosight’s Experiment Cookbook, organized by the rough amount of time and effort they take to execute. The Cookbook is laid out in The First Mile and accessible here:
These experiments are quick and cheap ways to build knowledge and generate insights so that you can make a decision on whether to accelerate, carefully continue, pivot, or shut down your business idea.
If you are launching a new idea and want to carefully de-risk assumptions and design tests, consider an Experiment Sprint of your own.