The Secret to Innovation at Netflix: The “Fake Door Testing”
You may have already come across the following situation: You start typing a title in the Netflix search bar and notice that there is already a suggestion with the title you want, so you select it and come across the message saying that “this title is not available on the platform”. Frustrating, isn’t it? But what if I told you that there is a good reason for this and it is one of Netflix’s content validation secrets?
What is “Fake Door Testing” ?
This technique is designed to ensure that a company invests resources in products or features that have a real demand. Here are the details of how it typically works:
Conceptualization: The company comes with an idea for a product, in the case of Netflix, a series or film that it believes its audience will be interested in.
Representation: Instead of fully developing the new concept, the company creates a simple representation of it. This could be a button for a feature that doesn’t yet exist, a landing page for a new service, or an advertisement for a product that has not been made. Again, in Netflix case is the title suggestion on search menu
Integration: This representation is then placed in the customer’s normal UX. For example, a software application might show a new feature button that doesn’t yet function
(fun fact: e-commerces does this all the time with products “out of stocks”)
Interaction Tracking: The company tracks how many users try to use the feature or express interest in the product. This can be measured through clicks on the title suggest, for example.
Analysis: The data collected is analyzed to determine the level of interest. A high rate of interaction suggests that customers would value and use the new feature or product if it were available.
Decision Making Netflix analyzes data from the test to assess user interest. If a title generates high engagement, Netflix goes ahead the acquisition of distribution rights for the title. Another strategy is recommend similar to the search titles that are available on their platform. This strategy keeps users engaged, increasing the likelihood of them staying on the platform longer, and indirectly validates the demand for content in the same genre or category.
The Benefits from “Fake Door Testing”
Now that you know how the game works, let’s look at the benefits of using this method.
Cost Efficiency: It allows a company to test interest without the full investment in development.
(Let’s agree, it’s just a little button with a tag to count.)
Risk Reduction: Helps to avoid spending on features or products that users don’t actually want.
Faster Feedback Loop: Can quickly gather user feedback before entering the full development cycle.
The Other side
But of course it is not a perfect method, there are some counterpoints that it is necessary to evaluate carefully before deciding to follow this path.
1 — It is not very recommended if you are still in the audience building phase, as they may feel scammed. (as I bet many feel when dealing with this on Netflix). If you want to reduce the damage, you can reduce the false door to a low percentage of the audience.
2 — Data Quality: The data collected from fake door tests may not always accurately represent genuine interest, as users might click out of curiosity rather than intent to engage with the feature or product.
3 — Market Signaling: Competitors might misinterpret fake door tests as a move towards new features or markets, which could lead to premature and unnecessary competitive responses.
In conclusion, when used ethically, fake door testing can be a powerful tool in the lean startup toolkit, enabling businesses to innovate more responsively and with less risk. Companies must navigate its implementation with transparency and a commitment to maintain user trust to ensure that the insights gained do not come at the expense of the customer relationship.
