New Product Testing Reflects Real World Results
Our client, a leading Multiple Systems Operator (MSO) cable service provider, had previously used qualitative and quantitative methodologies to develop, position and price new service offerings.
The client was now seeking to improve its ability to predict real-world product mix and messaging results in their online sales process. While most of the analytic partners they consulted recommended a menu-based conjoint approach, Phoenix MI disagreed – that approach would not deliver new insight and could potentially deliver incorrect information.
We proposed an innovative, two-phased new product development/sales process approach:
- In the first phase, we built a system which mirrored the client’s online sales website. This enabled us to monadically test the impact of new offerings or changes in content, price, or position, in a simulated environment which closely resembled the client’s site.
- Then, we conducted an adaptive conjoint exercise, which allowed us to estimate the impact of various pricing and offerings, as well as other offer combinations not tested in the sales exercise.
The client found that the new, two-phased process delivered results aligned with historical sales, and was a more accurate predictor of new marketing and sales deployments.