Overview: How to Validate a Product Idea in the Healthcare Software Industry
Historically, the medical software development and Healthcare industry have seen an upward trend in growth. Yet, many innovative startups and companies failed to capitalize on this trend. Hello, Healthspot, ReVision Optics, HomeHero, Lantern, Drugstore.com and not to mention Theranos are some of the notable examples of excellent healthcare startup ideas that failed during execution. Some companies fail early on and they are quite lucky while others fail too late after burning so much of their investor’s capital. They all could have prevented this if they had properly validated ideas before developing them.
Even if the idea has been validated, the company has to spend less and grow more i.e. it needs to grow profitably due to, increased competition, risk of losing user trust due to the proliferation of apps that are not regulated properly and because the healthcare market requires increased differentiation to become successful due to bigger incumbents in the market. To grow profitably will increase the valuation of the company. The bottom line is that the growth in the healthcare market is becoming more existential and challenging than ever before.
What is market validation?
How do healthcare companies take advantage of this accelerating growth in the industry and make sure that the idea turns into a success?
Based on our research, the startups that did achieve success validate the ideas on three fundamental levels in the following order:
- Validating market demand
- Validating the customer problem/pain point
- Validating the product or solution
Constant validation with the market and the users of the product, whether the company is an innovator, early-stage, early majority, or late majority, any idea is to be iterated with constant feedback from the users at each and every step of the product development to avoid waste and save from failure.
- Validating the Market
Successful healthcare startups require increased differentiation by the way they market and sell so you need to do your research properly. The company first has to first validate the market.
First, read industry reports to identify macro-level trends to validate the market and the buyers or main users of the product. Also, research on the regulatory environment for the software application to make sure it is indeed going to be a regulated product. FTC, FDA, Health and Human Services (HHS) Office of the National Coordinator for Health Information technology (ONC), and Office for Civil Rights (OCR) have developed a tool for developers to use to understand what federal laws are applicable to their technology: https://www.ftc.gov/tips-advice/business-center/guidance/mobile-health-apps-interactive-tool
Validate design by asking on Forums. It will help in identifying marketing channels as well. Read blogs to read about what new trends are and where the user problems are. Then conduct broad surveys to validate or invalidate ideas about the market. Statistical data analysis after the Internet. An example of such a survey is: https://bmcmedinformdecismak.biomedcentral.com/articles/10.1186/s12911-019-08112/tables/2
The online questionnaire collected self-reported data on socio-demographic characteristics including age (in years), gender, nationality, and region. Distributed link to the online survey via the newsletter via major Doctor’s Chamber, which was sent out every two weeks to members with an active newsletter subscription. There are various types of surveys, for example, survey via Single Concept validation, Survey via Concept Selection (Comparative), and Multiple Concept validation. Make sure to know what information you want to collect and use the one that matches your needs.
Take a gander at the traffic of contending sites, utilizing apparatuses like comScore, Contend and Quantcast. In the event that you realize that your rival has 1 million exceptional guests each month, at any rate, you realize that the market potential for your site is 1 million.
Google Adwords Watchword Organizer – utilize the Google Adwords Catchphrase Organizer to decide the number of searches identified with your market occur on Google every month.
See Google Patterns information to see search question volume. Take a gander at contender contributions and attempt to discover (or make a precise speculation of) valuing and income numbers. However, be careful about conjectures of market size, a considerable lot of which utilize problematic techniques or imperfect suspicions.
Validate the Issue
A significant number of your ideas would have effectively been sifted through from the principal phase of approving the market. The subsequent stage is issue validation.
Discover five individuals who are in this market. This is the base suitable crowd (MVA).
Test your Persona Theories/Situation – essential vehicle for approving these speculations is client revelation interviews. Utilize a perception apparatus like Think, See, Feel, Do approach. Some normal turns now typically are: re-division (more granular), update of space of revenue/issue space, Vital rotate. For instance, for Medical care: the accompanying source suggests zeroing in more on the patient than on the specialist. Check whether this remains constant for your idea. https://mhealthintelligence.com/news/how-do-you-validate-a-digital-health-app
Test Issue Theory/Responsibilities To Be Done (JTBD) Speculation – like Persona Speculation, where the essential vehicle is client disclosure interviews. https://online.hbs.edu/blog/post/customer-interview-questions-to-ask is an illustration of inquiries we ask in this stage. In spite of the fact that the inquiry set that we use is broad for research. The yield in this stage is issue Situation, choices. Some basic Turns are vital to rotate and rotate to a more material trouble spot.
- Validate the Product/Solution
The third step is a validation of the product. The step is to validate the solution before building anything in iterations. This involves extensive production validation testing of your Value hypothesis. Product validation test is done through ‘minimum viable product’ MVP types. We want to make sure of our differentiation that the value or solution that we are going to provide is better than current alternatives. In the product validation process we start to list out actionable metrics from this stage which we use to instrument once we start developing later on.
Vehicles for solution validation (before building anything) are:
- Concierge MVP – Hand creates the experience for the user. Find MVA people that are really into it and you can probably grow.
Observational Depth: High, Hypothesis Validation: low
Observations on the proposition and customer journey.
- THE ‘WIZARD OF OZ’ MVP – test a target user experience without real working software. Create a landing page (AKA Email MVP) demo tailored for early market
Observational Depth: Medium,
Hypothesis Validation: Medium
- THE ‘PRE-SALES’ MVP / Smoke MVP / Crowdfunding – You successfully pre-sell the product before you actually have it. Start an ad campaign, use social media, run a series of Google AdWords campaigns for your hypothetical product and measuring CTR (click-through rate) is a Lean Startup classic.
Observational Depth: Low,
Hypothesis Validation: High
Before deploying a feature use the ‘Fake Door’ / Fake feature test for a developed product to make sure there is definitive user demand.
Plan your roadmap, by narrowing down your features to key objectives that your key target audience can achieve and start the development of a user journey flow with the highest impact first. Make sure to complete an iteration that allows the user to go through one task completely that is tried and complete the user journey for example acquisition, onboarding, adoption, retention and expansion.
Now we need to validate the developed prototypes through usability testing. Digital Prototypes – observe a sampled customer by asking customers. Usability questionnaire: https://mhealth.jmir.org/2019/4/e11500/ Statistical Methods, Descriptive Data. Another example of validation through usability evaluation questionnaire based on the System Usability Scale (SUS) and a questionnaire used to evaluate the suitability of software for use in medical education, previously translated into Portuguese and applied in Brazil, were used. http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0100-55022019000500157
- Use Lean and product led growth strategy to improve features through validation using the Build, Measure and Learn cycle.
Make sure to instrument your product of usage of your core and recently launched features. Use user attributes such as role, signup date and objective, and account attributes such as revenue, and metadata such as releases and outcomes will help you inform focus areas.
Alpha test before releasing your product to real users and then Beta test with your users.
For in-app messaging using tool tips and walkthroughs to accelerate time to value. Informs the user for awareness. This will help increase feature discoverability by emphasizing correct CTAs.
Always keep on A/B testing to make tweaks that read to eliminate friction points and promote sticky features.
Product adoption is the best predictor of churn. Using a number of tools such as path analysis to see feature usage flow and identify drop offs will prescribe on what you need to do. Also, constantly be getting feedback through surveys to get opinions of features launched. Implement funnels that you want the user to go through.
Look at User retention curves. It measures how well your product retains user’s week over week. Golden rule is to have 30% user retention Week over week. We really need to understand what high-level features are bringing the user back.
Keep on collecting sentiment and advocacy scores. CES and NPS are some examples.
Conclusion, your healthcare product can fail anytime either initially or later when it doesn’t get adopted. So you need to validate your ideas, prototypes and solutions at each and every stage of your product stage and user journey. You need to make sure that you have a system of observation (an iterative feedback loop) in place that allows you to do so that you can focus on what matters to them and in turn to your company. Bottom line: always be testing.
Development. It’s a main key need of leaders around the world; something that organizations take a stab at—that new item, that better approach for accomplishing something. Yet, it’s unsafe. It’s costly, ideal and frequently brings about disappointment since it didn’t exactly hit a client, require or resound with general society.
Why leave it to risk? Envision what your advancement cycle could resemble on the off chance that you had the option to gather the entirety of the vital client input early and frequently, diminishing the danger of disappointment as well as improving the probability of accomplishment.
How to test business ideas?
Enter concept testing. It’s a demonstrated method to assist you with recognizing what works and what doesn’t, so you can be certain you’re making the items that best interface with your crowd. We use concept testing here at Skookum to evaluate, validate and focus on customer ideas and concepts. It permits them to advance their item improvement measures by saving both time and assets, making it a basic piece of any development technique.
In this post you’ll realize why concept testing matters, how to create concept tests that fit your association’s development needs, and a demonstrated bit by bit measure that boosts the worth of your concept testing.
What Is Concept Testing?
Concept testing is a stage in the item improvement lifecycle where concepts, or celebrated ideas that are normally storyboarded out, are assessed to see whether there’s the capability to additionally create and contribute. It’s a cycle that commonly happens after ideation and is proposed to help you decide bits of knowledge, however your most encouraging item concepts, also.
For what reason Do Concept Testing?
Concept testing fills numerous needs when you’re taking another item to dispatch. The absolute most basic include:
Assisting with focusing on your best ideas: You can utilize concept testing for your potential benefit whether you’re testing two unique concepts or many. With client input, you can recognize which concept(s) is the most grounded, and which can possibly legitimize future turn of events and venture.
Empowering co-creation with the client: In working straightforwardly with your objective client, you’re ready to comprehend what they like and what they don’t. Offer clients the chance to work close by you to help further build up the concept.
Distinguishing your best client segment(s): While you will select clients against your objective fragments, you’ll realize which portions are generally adept to like the idea the most.
Revealing an advertising technique: Through concept testing, you’re ready to test which relating showcasing messages resonate the most with your target fans, just as what channels may bode well to guide the item with.
Creating purchase in: Few out of every odd concept will be acknowledged by everybody in your association. Through concept testing, you’re ready to uncover client worth and supposition, which is now and again what you need to persuade your group that this is something worth seeking after.
Concept testing should be possible in an assortment of ways, contingent upon elements, for example, the measure of time you need to test, the crowd you might want to test with, and whether your concept(s) should be tested verbally. This is a six-venture structure you can use to begin and alter to suit your association’s exceptional requirements.
- Decide your testing system.
After you have chosen the number of concepts you’re offering clients to assess, the following choice is whether you’ll do unmoderated or directed testing. Components to consider here incorporate the measure of criticism you want, the time you have, and obviously, your financial plan.
Unmoderated Testing: The client is left to respond to questions and complete errands without an arbitrator present. It’s performed utilizing an online stage like UserZoom or MeasuringU, which can assist with selecting and investigating. This sort of testing is less expensive than directed testing and is best when you need to get an enormous example rapidly.
Directed Testing: The customer(s) is seen by the mediator, regardless of whether distantly or face to face. This kind of testing can take different structures, from top to bottom 1:1 meetings to center gathering conversations.
My partners and I track down that the best concept testing is regularly a mix of the two.
We prescribe beginning with unmoderated testing to get a huge example size as well as a gut mind of all concepts, at that point refined prior to going into a directed center gathering or in-person meets.
- Create strong presumptions.
Notwithstanding the kind of item you’re creating, you need to make a rundown of suppositions and [hypotheses that can be tested](https://skookum.method.com/administrations/fast prototyping) and refined through this cycle. It’s imperative to thoroughly consider each conceivable presumption that a concept would expect you to make, as this can help limit the future danger. A decent spot to begin is thinking about the concept through the attractive quality, suitability and achievability focal point (DVF).
Attractive quality: Does this concept tackle the client’s trouble spots and needs
Practicality: Does this concept accomplish the correct business objectives?
Plausibility: Is this concept in fact and authoritatively doable?
With a rundown of suppositions set up, you would then be able to focus on and choose the request wherein they ought to be tested. This will affect script advancement (Stage 4), however the investigation plan (Stage 5), too.
- Decide your objective and start enrolling.
Since the objective of testing is to comprehend what your intended interest group thinks about a concept, one could contend that enrolling is the most imperative piece of concept testing. You need to ensure that you’re getting the concept before the ideal individuals (or those that best fit the profile of the end client).
To track down the perfect individuals, list any relevant models—like segment, psychographic, conduct, or buyer qualities that best encapsulate the personas you desire to discover to partake. As interest comes in, screen in like manner and remember to have a decent chance in the last determination. This will ensure you have all sections covered and can utilize testing as a way to reveal the complexities between them.
At Skookum, we suggest continually testing with a motivating force (e.g., $100 Amazon gift voucher for a 1-hour meeting).
Clients are giving their chance to give significant bits of knowledge, so it’s essential to remunerate them properly. Also, in case you’re experiencing difficulty with enlisting, realize that there are an assortment of selected assets to help if spending licenses.
- Make content
Concept testing is tied in with uncovering client input that is straightforward and fair-minded.
Notwithstanding how thoroughly examined your concept and suppositions might be, your testing will be invalidated in the event that you “lead the observer” through scrutinizing that basically guides the tester to an answer. Two instances of driving inquiries include:
Would you rather utilize this site over the past one? Here, you are inferring one is better compared to the next.
Was it baffling when this connection didn’t take you where you anticipated? For this situation, you’re inferring for the member that it’s disappointing and not permitting the client to give their own assessment of the experience.
Otherwise called the ‘cardinal sin’ of concept testing, the probability of driving the observer can be controlled on the off chance that you set aside the effort to a content of the inquiries that you need to be replied to.
Consider these accepted procedures for script improvement to guarantee that you’re approving all suspicions while limiting the danger of inadvertently driving your members to an answer inauthentically:
Keep away from questions that lead to single-word reactions.
Stay away from questions that are written in a manner where you are compelling clients to address two inquiries without a moment’s delay. This makes it too hard to even consider unraveling how the client is gauging the two inquiries and their reaction.
Permit time for starting inquiries to help comprehend the member’s setting prior to going into concept explicit inquiries.
Utilize simple, non-specialized language all through the content so every tester can comprehend what you’re asking and don’t get confused or hung up on an inquiry.
Test your content previously with a little crowd inside to get any driving inquiries that may fall through.
Remember that concept testing is an opportunity to learn. While you will need to have questions heated to ensure you have the situation under control, what you hear in life might merit investigating further—regardless of whether through additional scrutinizing or follow-up testing.
- Decide on the examination plan
A primary driver of concept testing is to comprehend a concept’s qualities, shortcomings and generally adequacy against a validated business idea. At the point when you’re doing subjective testing, you hear a ton of reactions that can’t be quantitatively estimated. While these reactions and conclusions shed light on the worth of a concept, it’s essential to layer in a quantitative viewpoint with the goal that you can remove the mystery from examining results.
Ask yourself, how might we dissect the general acknowledgment of testing the concept?
How might we gauge key markers like affability, uniqueness and importance?
We suggest that every concept test utilize some layer of quantitative information, regardless of whether that implies:
Considering the % of undertaking total
Relegating a direct worth toward explicit reactions
Requesting clients to put worth to the expense from something
When testing numerous concepts with one client, you’re additionally ready to request that they rank concepts against one another. With this kind of testing, you can limit factors by posing similar inquiries for every concept, so you can perceive how each drives various answers.
Setting up an examination plan from the beginning will guarantee all future read-outs and prioritization endeavors go easily.
- Test and examine
With your testing strategies and crowds have chosen, it’s an ideal opportunity to test the concepts with your crowd. The concepts have ideally taken structure somehow during this interaction whether it be an interactive model, representation or another kind of [visual presentation], and all gatherings have adjusted to how those will be presented during testing dependent on how long is accessible.
With all materials set up (and remember a clock!), the mediator can work with the test utilizing the content subsequent to gathering the essential assent. Also, with the arbitrator zeroing in on driving the test, it’s essential to have somebody in the back room gathering criticism from each and every individual who is tuning in.
As far as we can tell, the most ideal approach to gathering live input for face-to-face or center gathering testing is to set up and work with a perception room.
By doing this in life, you’re ready to effectively bunch shared traits and recognize patterns (both great and terrible) all in all. Doing so makes any later examination faster and more productive.
Laying out the groundwork for Your Concept Testing
Despite the particulars of your concept testing measure, apply these accepted procedures:
Test early and often: Don’t fear to test. By doing it routinely, you can gather the bits of knowledge that should have been fruitful.
Make it what you need: Remember that the excellence of concept testing is in the construction. You can make it as basic (e.g., an assertion with insignificant depiction) or as refined (e.g., full, high-devotion model) as you might want.
Record and assess your arrangement: Via cautiously considering your intended interest group, testing technique, examination plan, and every expected inquiry, you’re diminishing danger and adding fairness to the investigation.
Try not to excuse the worth of quantitative information: Consistently ensure you are, to some limit, gathering quantitative information so as to slice through any emotional conclusions or potentially minor criticism.
Listen cautiously: You are here to test, however, to realize—regardless of whether that is to validate theories, or to reveal potential groundbreaking ideas that can return to the concepting stage.