Concierge Testing is a method to understand your customer’s needs, validate solutions, and provide a higher perception of your product’s value. The idea is to use a Concierge MVP which is the action of simulating a product’s features through manual interaction. In this article, we explain what a Concierge MVP is and how to use it for Concierge Testing.
What is a Concierge MVP?
A Concierge MVP is the combined manual interactions needed to simulate your product’s value without actually building the product. We often use it in the early stages of (corporate) startups as a method to validate assumptions and gather customer feedback.
How GroundControl started as a Concierge MVP
We’ve done Concierge testing many times over the past years. Even with our own software, GroundControl. Our software helps (corporate) startups with validated learning (de-risking the search for new business models).
In our beginning stage, we used a concierge MVP to test if our customers had a need for guidance in their innovation process. So at first we physically coached our customers, we used our NEXT Canvas together with post-its, and we helped our customers decide what to do and when to dit. It became clear that there was an actual need for guidance, so we started building GroundControl. In our case, the concierge test taught us that our customers have a need for guidance on what experiment to run in which phase of a startup’s validation process. So that’s what we built. The Concierge Test taught us the most valuable features of our service before building a scalable, automated solution.
How Peerby used Concierge Testing
A practical example that illustrates the effectiveness of Concierge testing is Peerby’s implementation of their rental model, Peerby Go. Instead of investing in building an entire marketplace and rental system, Peerby opted for a simpler approach. They created a basic landing page where users could input their desired rental item and make a request.
Upon receiving a request, one of Peerby’s employees would manually handle the process. They would pick up the phone, search for the requested item within Peerby’s peer-to-peer system or at a rental shop, negotiate a price, travel to the location, collect the item, and deliver it to the customer. This Concierge MVP version is a hands-on, personalized approach that resembled the value that Peerby delivers today.
By employing this Concierge testing method, Peerby was able to answer their most important question: is there interest in a rental/sharing model for day-to-day products? This was the most valuable feedback they could get, and from this point, they started iterating on the product and its needed features.
Why you should use a Concierge MVP test
There are many perks to using a Concierge MVP. These are our main reasons to do one.
Understand what it takes to solve the customer’s problem
By personally interacting with customers, (corporate) startups can identify the specific interactions needed to solve the customer’s problem. These interactions could involve providing information, guiding customers through processes, offering support, or facilitating transactions. Concierge testing helps refine the solution to be built and its needed features.
Find out if your value proposition aligns with the Customer’s expectations
By manually simulating the product or service features and benefits, (corporate) startups can observe firsthand how customers perceive the value being offered. Through direct interactions,(corporate) startups can gather feedback and assess if their value proposition meets the desired expectations of the customer. This insight helps refine and tailor the value proposition to ensure a strong match with customer needs and preferences.
Uncover the hurdles in delivering a solution to your customer
A Concierge MVP helps identify any existing hurdles in delivering a solution to the customer. By engaging in manual interactions, (corporate) startups can gain insights into potential challenges or barriers that customers may face in adopting the solution. This could include anything from logistical issues, operational constraints, user experience challenges, or any other obstacles that hinder the smooth delivery of the product or service. Identifying these hurdles early on enables (corporate) startups to make necessary adjustments and develop strategies to overcome them before scaling the solution and wasting a lot of time and money.
How to start a Concierge Test with a Concierge MVP
Now that we’ve discussed what a Concierge MVP is, and why you should use it, it is time to explain how you can use a Concierge MVP yourself. These are the basic steps:
- Write a clear description of your solution and value proposition for your customer segment.
- Design a service that matches your value proposition and involves manual interaction.
- Reach out to your customer segment (early adopters) and offer them your service.
- Gather data on interactions and customer satisfaction during service delivery.
- Evaluate customer feedback and willingness to continue paying for your solution.
1. Write a clear description of your solution and value proposition for your customer segment
Clearly express how your solution addresses the customer’s problem and the unique benefits it offers. Ensure that the description resonates with the needs and preferences of your customer segment, emphasizing the value they can expect from using your solution.
2. Design a service that matches your value proposition and involves manual interaction
Based on your value proposition, design a service that aligns with the needs of your customer segment. This service should involve direct and manual interactions between your team and the customer to solve their problem effectively. Tailor the service to provide a personalized and high-value experience, ensuring it reflects the promises made in your value proposition.
3. Reach out to your customer segment (early adopters) and offer them your service
Reach out to your identified customer segment, particularly early adopters who are likely to be more receptive to trying new solutions. Offer your concierge service to them, clearly outlining the benefits and value they will receive. It’s important to highlight that this service is being provided in exchange for payment, establishing a transactional relationship that helps validate customer willingness to pay for your solution.
4. Gather data on interactions and customer satisfaction during service delivery
As you deliver the concierge service, diligently collect data on the interactions made with customers. Keep track of the specific interactions required to solve their problem and measure customer satisfaction at various touchpoints. This data will provide valuable insights into the effectiveness of your service and help discover the essential features, the nice-to-haves, and all the redundancies.
5. Evaluate customer feedback and willingness to continue paying for your solution
After the concierge service has been delivered, engage in thorough discussions with your customers. Seek their feedback on whether the service lived up to their expectations. If it effectively solved their problem, and if they perceive the value they anticipated. Gauge their satisfaction levels and explore their willingness to continue paying for your solution in the future. This evaluation process will help validate the market fit of your solution.
Key takeaways
A Concierge MVP helps (corporate) startups understand customer needs and the value to be delivered. By making the customer manually perceive your value proposition, you get insights such as:
- understanding the customer’s needs to solve their problem.
- whether or not your value proposition aligns with those needs.
- any potential hurdles in delivering the solution.
To do a Concierge Test using a Concierge MVP start by describing your value proposition, design a service that matches that value proposition, reach out to early adopters, gather data, and evaluate feedback.
Want to learn more about Lean Innovation?
The Concierge MVP is used to gather customer insights in the early stages of a (corporate) startup. It helps de-risking the search for new business models which is the essence of Lean Innovation. Our mission at GroundControl is to help (corporate) startups with their Lean Innovation process. That’s why we built the GroundControl software, and that is why we created a course that teaches how to apply Lean Innovation. Don’t hesitate to reach out if you have any questions regarding this.
