How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne

how to lead customer Value creation DAN OLSEN OCT 20, 2016

HowDoesYourCompanyMakeMoney?

ByCrea5ngValueforCustomers

Product-MarketFit

Whoatyourcompanycreatesvalueforcustomers?

Whoatyourcompanycreatesvalueforcustomers?

Whosejobisittomakesureyourcompanyiscrea5ngvalueforcustomers?

AProductManagerbyanyothername…

Spiderman’smo.o:“Withgreatpowercomes

greatresponsibility”

ProductManager’smo.o:

Spiderman’smo.o:“Withgreatpowercomes

greatresponsibility”

“Withgreatresponsibility

comesNOpower”

It’sMoreLikeThis

AsaProductManager,YourJobIsTo:

n Herdthecatsinsideyourcompany

n Togetthemtocreatevalueforcustomers

n Undercondi5onsofextremeuncertainty

Soundsgreat!WheredoIsignup?

That’sWhyIWrote

Copyright©2016@danolsen

TheProduct-MarketFitPyramid




TheLeanProductProcess










1. Determineyourtargetcustomer

2.  Iden5fyunderservedcustomerneeds

3. Defineyourvalueproposi5on4. SpecifyyourMVPfeatureset

5. CreateyourMVPprototype

6. TestyourMVPwithcustomers


Transporta5onwithin100kmofmyhome

SoccerMom

SpeedDemon

Carrykids&gear

Safety

Fueleconomy

Gofast

Lookscool

Makesmelookcool

TargetCustomerHasDis5nctNeeds

High-levelneed

TargetCustomer

Detailedneeds

IdealProduct

SoccerMom SpeedDemon








n  Russians:pencil

n  NASA:spacepen($1MR&Dcost)

Example

n  Abilitytowriteinspace(zerogravity)

ProblemSpacevs.Solu5onSpace

ProblemSpace

n  Acustomerproblem,need

orbenefitthattheproduct

shouldaddress

n  Aproductrequirement

Solu5onSpace

n  Aspecificimplementa5on

toaddresstheneedor

productrequirement


Problemvs.Solu5onSpace:ProductLevel

ProblemSpace(userbenefits)

Solu5onSpace(product)

TurboTax

TaxCut

Pen and paper

Prepare my taxes

File my taxes

Check my taxes

Maximize deductions

Reduce audit risk


ProblemSpace

Problemvs.Solu5onSpace:FeatureLevel


Save time filing taxes

Save time preparing taxes

Maximize my tax deductions

Check my return

Reduce my audit risk

Help me prepare taxes

Empowerment/ Confidence

Save Time

Save Money

Tax Interview Wizard

Audit Risk Analyzer

Tax Return Error Checker

Tax Data Downloader

Electronic Tax Return Filing

Tax Deduction Finder

Solu5onSpace

Priori5zingNeeds:Importancevs.Sa5sfac5onIm

portanceofUserNeed

UserSa5sfac5onwithCurrentAlterna5ves

Compe55veMarket

Low High

Low

High

NotWorthGoingAjer



portanceofUserNeed


Low High

Low

High



portanceofUserNeed


Low High

Low

High



portanceofUserNeed


Compe55veMarket

Opportunity

Low High

Low

High

NotWorthGoingAjer



portanceofUserNeed


Low High

Low

High


Crea5ngCustomerValue


ImportanceofUserNeed

UserSa5sfac5onwiththeProduct

Low High

Low

High

Area=CustomerValueCreated

Area=OpportunitytoCreateCustomerValue

UsersRated13KeyFeaturesinaSurvey

Recommendedreading:�WhatCustomersWant�byAnthonyUlwick

Great


Bad

KanoModel:UserNeeds&Sa5sfac5on

UserSa5sfac5on

UserDissa5sfac5on

Performance(moreisbener)

Delighter(wow)

Neednotmet

Needfullymet

MustHave

Needs&featuresmigrateover5me









WhatisYourValueProposi5on?



n Whichuserbenefitsareyouproviding?

n Howareyoubenerthancompe5tors?

MustHaveBenefit1

PerformanceBenefit1

PerformanceBenefit2

PerformanceBenefit3

DelighterBenefit1

DelighterBenefit2





Compe9torA Compe9torB YouMustHaveBenefit1

PerformanceBenefit1

PerformanceBenefit2

PerformanceBenefit3

DelighterBenefit1

DelighterBenefit2





Compe9torA Compe9torB YouMustHaveBenefit1 Y Y

PerformanceBenefit1 High Low

PerformanceBenefit2 Low High

PerformanceBenefit3 Med Med

DelighterBenefit1 Y -

DelighterBenefit2 - -





Compe9torA Compe9torB YouMustHaveBenefit1 Y Y Y

PerformanceBenefit1 High Low Med

PerformanceBenefit2 Low High Low

PerformanceBenefit3 Med Med High

DelighterBenefit1 Y - -

DelighterBenefit2 - - Y









WhatisanMVP?


WhatisanMVP?

CourtesyofJussiPasanenSeeAaronWalter’sbookDesigningforEmo-on


WhatisanMVP?

CourtesyofJussiPasanenSeeAaronWalter’sbookDesigningforEmo-on









TheUXDesignIceberg


Whatmostpeopleseeandreactto

Whatgoodproductteamsthinkabout

TheUXDesignIceberg


Whatmostpeopleseeandreactto

Whatgoodproductteamsthinkabout

Itera5veDesign&TestWorkflow


Hand

sketches

Interac5vity

Fidelity

Clickable

Wireframes*

Clickable

Mockups**

Live

Product

Test Test

Test

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








Dos&Don’tsofUserTes5ngSessions

Do

n  Explaintotheusern  Feedbackwillhelpimprovetheproduct

n  Nottoworryabouthur5ngyourfeelings

n  �ThinkAloudProtocol�

n  Trytobeaflyonthewall

n  Takenotesandreviewthemajerwardsfortake-aways

Don’t

n  �Help�userorexplaintheUI(e.g.,�clickoverhere�)

n  Askleadingorclose-endedques5ons

n  Getdefensiveorblametheuser


Itera5ngBetweenUserTes5ngWaves

CustomerFeedback

Mockups/Code


ProblemSpaceAllyourhypotheses

Solu5onSpaceUserreac5ons

ProblemSpace

Solu9onSpace


TheLeanProductProcess:Marke5ngReport.comCaseStudy


Marke5ngReport.comCaseStudy

n Myclient(CEO)hadanewproductidea

n Team:me,CEO,VPmarke5ng,UIdesigner

n Goalsn  Seeifbusinessopportunityexists

n  Dosoquicklyandinexpensively(nocoding)

n �Marke5ngreport��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

�Marke5ngShield�Concept

�Marke5ngSaver�Concept



Recrui5ngTargetCustomers

n  Usedcustomerresearchfirm(panel)

n Wrotescreenertoiden5fytargetcustomers

n Workfull-5me

n  FitforSaver:usecoupons,Costcomembership

n  FitforShield:usepapershredder,blockcallerID

n Moderatedusersthroughthemockups


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 4weekstovalidatedproductconcept

n 1roundofitera5on

n Zerocoding

n Reasonablecost

n Customerswillingtopay$10/month

n Trimmedawaynon-valuablepieces

n Youcanachievesimilarresults



1.  Determineyourtargetcustomer


3.  Defineyourvalueproposi5on4.  SpecifyyourMVPfeatureset

5.  CreateyourMVPprototype

6.  TestyourMVPwithcustomers

Iterate:

§  Hypothesize-Design-Test-Learnloop§  Improveproduct-marketfit


Qualita5vevs.Quan5ta5veApproach

Qualita5ve Quan5ta5ve

Oprah Spock

THANK YOU!

@danolsen

dan-olsen.com

slideshare.net/dan_o

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How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne