How to Create Products for High Growth by Dan Olsen

How to Create Products for Growth DAN OLSEN JUNE 22, 2016

MyBackgroundEduca/onn  Engineeringbackgroundn  StanfordMBAn  UXdesignandcodingExperiencen  LedQuickenProductManagementatIntuitn  CEO&Cofounder,TechCrunchawardwinnerYourVersionn  PMconsultant:Box,Facebook,MicrosoM,Medallian  Founder:LeanProduct&LeanUXMeetupSiliconValleyTwiNer:@danolsenMyslides:hNp://slideshare.net/dan_o

Copyright©2016@danolsen

The3PhasesofYourProduct


BEFOREProduct-MarketFit

AFTERProduct-MarketFit

BEFOREyourproductislive

Phase1

AFTERyourproductislive

Phase2

#ofCustomers

Time0

lots

Phase3

The3PhasesofYourProductBEFORE

Product-MarketFitAFTER

Product-MarketFit

Growth

MainlyQuan/ta/ve

BEFOREyourproductislive

Phase1

Testhypotheses,gainconfidencebeforebuilding

Mainly

Qualita/ve

AFTERyourproductislive

Phase2

Improveproduct-marketfit

Qualita/ve&Quan/ta/ve

Goal:

Methods:

Phase3

Whatphaseareyouin?

Qualita/vevs.Quan/ta/veLearning

Qualita/ve Quan/ta/ve

Oprah Spock

That’sWhyIWrote

n  BookgiveawayonTwiNern  Tweet:include@danolsenn Hashtags

#leanstartup#prodmgmt#growth

n  hNp:///ny.cc/LPP


TheProduct-MarketFitPyramid




TheLeanProductProcess










1. Determineyourtargetcustomer2.  Iden/fyunderservedcustomerneeds3. Defineyourvalueproposi/on4. SpecifyyourMVPfeatureset5. CreateyourMVPprototype6. TestyourMVPwithcustomers


Transporta/onwithin100milesofmyhome

SoccerMom

SpeedDemon

Carrykids&gearSafetyFueleconomy

GofastLookscoolMakesmelookcool

TargetCustomerHasDis/nctNeedsHigh-levelneedTargetCustomer

Detailedneeds

IdealProduct

SoccerMom SpeedDemon




n  Russians:pencil

n  NASA:spacepen($1MR&Dcost)

Examplen  Abilitytowriteinspace(zerogravity)

ProblemSpacevs.Solu/onSpaceProblemSpacen  Acustomerproblem,needorbenefitthattheproductshouldaddress

n  Aproductrequirement

Solu/onSpacen  Aspecificimplementa/ontoaddresstheneedorproductrequirement


Problemvs.Solu/onSpace:ProductLevel

ProblemSpace(userbenefits)

Solu/onSpace(product)

TurboTax

TaxCut

Pen and paper

Prepare my taxes

File my taxes

Check my taxes

Maximize deductions

Reduce audit risk


Priori/zingNeeds:Importancevs.Sa/sfac/onIm

portanceofU

serN

eed

UserSa/sfac/onwithCurrentAlterna/ves

Compe//veMarketOpportunity

Low High

Low

High

NotWorthGoingAMer


Crea/ngCustomerValue


Impo

rtanceofU

serN

eed

UserSa/sfac/onwiththeProductLow High

Low

High

Area=CustomerValueCreated

Area=OpportunitytoCreateCustomerValue

UsersRated13KeyFeaturesinaSurvey

Recommendedreading:“WhatCustomersWant”byAnthonyUlwick

Great


Bad

KanoModel:UserNeeds&Sa/sfac/onUserSa/sfac/on

UserDissa/sfac/on

Performance(moreisbeNer)

Delighter(wow)

Neednotmet

Needfullymet

MustHave

Needs&featuresmigrateover/me





WhatisYourValueProposi/on?

n Whichuserbenefitsareyouproviding?n HowareyoubeNerthancompe/tors?MustHaveBenefit1

PerformanceBenefit1

PerformanceBenefit2

PerformanceBenefit3

DelighterBenefit1

DelighterBenefit2



n Whichuserbenefitsareyouproviding?n HowareyoubeNerthancompe/tors? Compe.torA Compe.torB You

MustHaveBenefit1

PerformanceBenefit1

PerformanceBenefit2

PerformanceBenefit3

DelighterBenefit1

DelighterBenefit2




MustHaveBenefit1 Y Y

PerformanceBenefit1 High Low

PerformanceBenefit2 Low High

PerformanceBenefit3 Med Med

DelighterBenefit1 Y -

DelighterBenefit2 - -




MustHaveBenefit1 Y Y Y

PerformanceBenefit1 High Low Med

PerformanceBenefit2 Low High Low

PerformanceBenefit3 Med Med High

DelighterBenefit1 Y - -

DelighterBenefit2 - - Y





WhatisanMVP?

CourtesyofJussiPasanenSeeAaronWalter’sbookDesigningforEmo-on Copyright©2016@danolsen




TheUXDesignIceberg


Whatmostpeopleseeandreactto

Whatgoodproductteamsthinkabout

Itera/veDesign&TestWorkflow


Handsketches

Interac/vity

Fidelity

ClickableWireframes*

ClickableMockups**

LiveProduct

Test Test

Test

*Balsamiq:balsamiq.com**InVision:invisionapp.com




TheLeanProductProcess:Marke/ngReport.comCaseStudy


Marke/ngReport.comCaseStudy

n Myclient(CEO)hadanewproductidean Team:me,CEO,VPmarke/ng,UIdesignern Goals

n  Seeifbusinessopportunityexistsn  Dosoquicklyandinexpensively(nocoding)

n “Marke/ngreport” wouldletconsumerscontrolthedirectmailthattheyreceive

n Analogoustocreditreport


MappingOutCustomerBenefits

Reduce Junk Mail

Find out what “they” know about you

Money Saving Offers

Compare Yourself to Others

Social Networking

Marketing Report

Marketing Score

Marketing Profile

Save Trees

“Marke/ngShield”Concept

“Marke/ngSaver”Concept



LearningfromFirstWaveofUserTests

Reduce Junk Mail

Find out what “they” know about you

Money Saving Offers

Compare Yourself to Others

Social Networking

Marketing Report

Marketing Score

Marketing Profile

Save Trees

Legend

Strong appeal

Some appeal

Low appeal

“Shield” Concept “Saver” Concept



SummaryofCaseStudy

n 4weekstovalidatedproductconceptn 1roundofitera/onn Zerocodingn Reasonablecostn Customerswillingtopay$10/monthn Trimmedawaynon-valuablepiecesn Youcanachievesimilarresults


Ifyoucouldonlytrack1metrictomeasureyourProduct-MarketFit,

whichmetricwoulditbe?

Copyright©2016OlsenSolu/ons

Reten/onRaten Reten/onratetrackswhat%ofyourcustomersares/llac/veover/me

~80% never use app again

Curve eventually flattens out

CohortAnalysis

Copyright©2016OlsenSolu/ons

ImprovingReten/onRateOverTime=IncreasingProduct-MarketFit




1.  Determineyourtargetcustomer2.  Iden/fyunderservedcustomerneeds3.  Defineyourvalueproposi/on4.  SpecifyyourMVPfeatureset5.  CreateyourMVPprototype6.  TestyourMVPwithcustomersIterate:§  Hypothesize-Design-Test-Learnloop§  Improveproduct-marketfit


Questions? @danolsendan-olsen.comslideshare.net/dan_omeetup.com/lean-productBook:hNp:///ny.cc/LPP

Business

How to Create Products for High Growth by Dan Olsen