Relative Importance Testing

Relative Importance Testing

The relative importantance testing cycle helps quickly determine benefits for max attractive offers

1.     People want everything

a.     Never accept trade offs unless a decision is needed.

 i.     Then people settle for the next best alternative

2.     Relative importance testing

a.     Analysis Technique by Jordan Louvieve 1980’s

                                                             i.     Instead of 0-10

1.     Orders less than 5 Mins?

2.     Entrees Under $20

3.     Décor

4.     Menu Variation

a.     Then asked 5-10 min questions

 i.         What’s most important

       ii.         What’s least important

5.     Unique Entrees

6.     Favorites

7.     Impressed

8.     Large Portions

b.     Critical Assumptions

  i.     A Yoga Studio Study

1.     $100 a month Membership

2.     220 Members within 3 months

3.     22k for 12 months

a.     10,000 A month for studio

b.     12,000 Employee/Operation

c.      (5,000 Upfront) Equipment

                                                                                                                   i.         If FALSE

1.     $75 a month Membership

a.     $300 members

2.     No new members because other studios have 12 month contracts.

                                                           ii.     Shadow Test

1.     Gather Data

a.     Selling before it Exists  

i.         Offer in Development

1.     Example

a.     Description

b.     Rendering

c.      Collect Names

                  i.     Addresses

         ii.     Billing Info

            iii.     Verified Credit Info

d.     No charge untill $2 million invested

c.      Minimum Viable Offer

           i.     Shadow Tests need something to sell.

1.     Minimum Viable offer is an offer that promises the smallest number of befits to produce a sale

                      i.         Gives you data to test critical assumptions

b.     Prototype

                i.         People will Pay for

1.     Website

a.     Details

b.     Location

c.      Schedule

d.     Staff

e.     Space

f.      Fees

g.     Sign Up Form to Pre Order Memberships

2.     Traffic to Site

a.     Flyers

b.     Inquiry

c.      Direct Mail

d.     Search Engine Ads

3.     Track Sign Up

a.     (Kickstarters, are good to test how deep the water is away from the shore)

·      Incremental Augmentation

o   Once selling minimum viable offers, proven critical assumptions,

1)   Use the iteration cycle to add benefit

a)    Making and testing additions

b)   New prototype for feedback and testing

i)     Example

(1) Car customization

2)   Field testing

a)    Test internal system

i)     Be the most avid and demanding customer

14 Pillars of Marketing

14 Pillars of Marketing

12 Forms of Value Applied

12 Forms of Value Applied