How to be a Lean Product Ninja by Dan Olsen

+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+ How to be a Lean Product Ninja Dan Olsen Olsen Solutions Silicon Valley Product Camp March 24, 2012+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+

My Background n  Educa6on n  BS, Electrical Engineering, Northwestern n  MS, Industrial Engineering, Virginia Tech n  MBA, Stanford n  Web development and UI design n  20 years of Product Management Experience n  Managed submarine design for 5 years n  5 years at Intuit, led Quicken Product Management n  Led Product Management at Friendster n  CEO & Cofounder of YourVersion, Pandora for your real-‐6me news n  PM consultant to startups: Box.net, YouSendIt, Epocrates Will post slides to hVp://slideshare.net/dan_o Copyright © 2012 Olsen Solu6ons

What does “Lean” mean? n  Lean Startup n  Achieving product-‐market ﬁt n  Valida6ng product with users n  Improving & itera6ng your product quickly n  Tes6ng hypotheses & learning n  Product-‐market ﬁt = product management’s responsibility Copyright © 2011 YourVersion

What’s the Formula for Product-‐Market Fit? n  A product that: n  Meets customers’ needs Focus of my talk today n  Is beVer than other alterna6ves n  Is easy to use See my other talks n  Has a good value/price Copyright © 2012 Olsen Solu6ons

The Lean Product Ninja Way: Steps to Achieving Product-‐Market Fit 1.  Understand underserved customer needs 2.  Deﬁne your product’s value proposi6on 3.  Build wireframe/mockup 4.  Get user feedback 5.  Iterate Copyright © 2012 Olsen Solu6ons

Problem Space vs. Solu6on Space n  Problem Space n  Solu6on Space n  A customer problem, n  A speciﬁc need, or beneﬁt that the implementa6on to product should address n  address the need or n  A product requirement product requirement Example: n  Ability to write in space NASA: space pen n  (zero gravity) ($1 M R&D cost) n  Russians: pencil Copyright © 2012 Olsen Solu6ons

Problem Space vs. Solu6on Space: Product Level Problem Space Solu6on Space (user beneﬁt) (product) Prepare Pen and my taxes paperCheck my File my TurboTax taxes taxes Maximize Reduce TaxCutdeductions audit risk Copyright © 2012 Olsen Solu6ons

Problem vs. Solu6on Space: Feature Level Problem Space Solu6on Space Help me Tax Interview prepare taxes WizardEmpowerement/ Reduce my Audit Risk Confidence audit risk Analyzer Check my Tax Return return Error Checker Save time Tax Data preparing taxes Downloader Save Time Save time filing Electronic Tax taxes Return Filing Maximize my Tax Deduction Save Money tax deductions Finder Copyright © 2012 Olsen Solu6ons

Priori6zing Beneﬁts & Features based on Customer Value n  How do you priori6ze: n  Which user beneﬁts should you address? n  Which product features to build (or improve)? n  Priori6za6on should be based on customer value n  Importance vs. Sa6sfac6on Framework n  Importance of user need (problem space) n  Sa6sfac6on with how well a product meets the user’s need (solu6on space) Copyright © 2012 Olsen Solu6ons

High Importance + Low Sa6sfac6on = Opportunity to Add Customer Value Importance of User Need High Compe66ve Opportunity Market Not Worth Going Aner Low Low High User Sa6sfac6on with Current Alterna6ves Copyright © 2012 Olsen Solu6ons

Kano Model: User Needs & Sa6sfac6on User Sa6sfac6on Delighter (wow) Performance (more is beVer) Need Need not met fully met Must Have Needs & features migrate over 6me User Dissa6sfac6on Copyright © 2012 Olsen Solu6ons

Importance vs. Sa6sfac6on Ask Users to Rate for Each Feature 100 98 Great 95 84 87 90 Bad 86 85 79 84 55 70 80 Importance 80 75 72 80 70 75 65 60 55 41 50 40 50 60 70 80 90 100 SatisfactionRecommended reading: What Customers Want by Anthony Ulwick Copyright © 2012 Olsen Solu6ons

What is Your Value Proposi6on? n  Which user benefits are you providing? n  How are you beVer than compe6tors? Compe&tor A Compe&tor B You Must Have Benefit 1 Y Y Y Performance Benefit 1 High Low Med Performance Benefit 2 Low High Low Performance Benefit 3 Med Med High Delighter Benefit 1 Y -‐ -‐ Delighter Benefit 2 -‐ -‐ Y Copyright © 2012 Olsen Solu6ons

Geqng Customer Feedback: Problem Space vs. Solu6on Space n  Customers CAN’T ar6culate problem space n  Customers CAN react to solu6on space n  That’s why you need: n  Wireframes: low to medium ﬁdelity visual representa6on of your product n  Mockups: high ﬁdelity visual representa6on of your product n  Prototype: working version of your product that emulates its func6onality (throw-‐away) Copyright © 2012 Olsen Solu6ons

Product Managers Should Wireframe n  In case you don’t have UX designer (onen) n  To clarify and reﬁne your thinking: n  Informa6on Architecture, layout, naviga6on n  To communicate your product ideas to other team members n  Modern tools make it easy Copyright © 2012 Olsen Solu6ons

Why Every PM Should Use Balsamiq n  Super easy to learn and use n  Widget library has most UI elements n  Can annotate with s6cky notes n  Can add click naviga6on between pages to illustrate a user story n  Can export as PDF (so others don’t need to have Balsamiq), mul6ple pages in 1 PDF n  Best $79 you’ll spend n  hVp://www.balsamiq.com Copyright © 2012 Olsen Solu6ons

What Are You Going to Get Feedback & Learnings About? Problem Space Solu6on Space (your mental model) (what users can react to) Feature Set Customer Understanding (needs & preferences) UI Design Messaging Copyright © 2012 Olsen Solu6ons

Ramen User Feedback for Startups n  Anyone can do it! n  Ingredients: n  Solu6on-‐space product/mockup to test n  1 customer (with laptop if tes6ng code) n  1 desk n  1 person to conduct the session n  Pen and paper n  Op6onal note-‐taker and observers Copyright © 2012 Olsen Solu6ons

Typical Format for Customer Session n  5 -‐ 10 min: Ask ques6ons to understand user needs and solu6ons they currently use n  30 -‐ 50 min: User feedback n  Show user product/mockup n  Non-‐directed as much as possible n  When necessary, direct user to aVempt to perform a speciﬁc task n  5 -‐ 10 min: Wrap-‐up n  Answer any user ques6ons that came up n  Point out/explain features you want to highlight n  Ask them if they would use the product Copyright © 2012 Olsen Solu6ons

Dos & Don’ts of User Feedback Sessions n  Do n  Explain to the user: n  Their feedback will help improve the product n  Not to worry about hur6ng your feelings n  Think Aloud Protocol n  Ask user to aVempt the task, then be a ﬂy on the wall n  Ask non-‐leading, open-‐ended ques6ons n  Take notes and review them anerwards for take-‐aways n  Don’t n  Ask leading ques6ons n  Help the user or explain the UI (e.g., click over here ) n  Respond to user frustra6on or ques6ons (un6l test is over) n  Get defensive n  Blame the user Copyright © 2012 Olsen Solu6ons

Itera6ng Your Product Vector Based on User Feedback in Solu6on Space Problem Space Solu6on Space (your mental model) (what users can react to) Help user Help user book travel plan travel Mockups / Code Customer Feedback Copyright © 2012 Olsen Solu6ons

Product-‐Market Fit Case Study: Marke6ngReport.com n  My consul6ng client, CEO of TrustedID, had an idea for a new product n  Team: me, CEO, head of marke6ng, UI design consultant n  Goal: n  Validate product-‐market ﬁt quickly, cheaply without wri6ng a single line of code n  Determine if their was a business opportunity here Copyright © 2012 Olsen Solu6ons

Product-‐Market Fit Case Study: Developing Product Concept n  Product Concept was marke6ng report that let consumers control the direct mail that they receive n  Concept was fuzzy with various components, so I broke it into 2 different flavors : n  #1 Marke6ng Shield : Service to reduce/stop junk mail n  #2 Marke6ng Saver : Opt in & receive money-‐saving offers n  Each product concept consisted of several modules that each mapped to a specific user benefit n  Worked with UI designer to create paper mockups of pages for each flavor concept (5 pages each) Copyright © 2012 Olsen Solu6ons

Clustering Poten6al User Beneﬁts to Create Product Concepts Shield Concept Saver Concept Reduce Find out what Money Compare SocialJunk Mail they know Saving Yourself Networking about you Offers to Others Save Marketing Trees Report Marketing Marketing Score Profile Copyright © 2012 Olsen Solu6ons

Product-‐Market Fit Case Study: Recrui6ng People n  Telephone recruit of prospec6ve customers n  Wrote phone-‐screen ques6onnaire to create rough target customer segmenta6on n  Wanted users who work full-‐6me & use internet n  Fit for opt-‐in concept: use coupons, Costco membership n  Fit for an6-‐junk mail concept: use paper shredder, block caller ID n  Scheduled 3 groups of 2 or 3 people to discuss each product concept for 90 minutes n  Moderated each group through the paper mockups to hear their feedback Copyright © 2012 Olsen Solu6ons

Product-‐Market Fit Case Study: Findings on Concepts &User Beneﬁts Shield Concept Saver Concept Reduce Find out what Money Compare SocialJunk Mail they know Saving Yourself Networking about you Offers to Others Save Marketing Trees Report Legend Marketing Marketing Score Profile Strong appeal Somewhat positive Low appeal Copyright © 2012 Olsen Solu6ons

Product-‐Market Fit Case Study: Learnings from Research n  Learned that Shield (an6-‐junk mail) concept was stronger than Saver n  People didn’t like many of the Saver concept components n  Learned users’ concerns / ques6ons about Shield concept n  Reﬁned Shield concept: n  Removed irrelevant components n  Improved messaging to address user concerns / ques6ons n  Validated revised Shield concept with quick 2nd round of tests n  No customer concerns n  Clear willingness to pay Copyright © 2012 Olsen Solu6ons

Product-‐Market Fit Case Study: Summary n  4 weeks from 1st mee6ng to validated product concept with zero coding n  Cost $1,500 to talk to 20 users ($75 each) n  1 round of itera6on on product concept n  Iden6ﬁed compelling concept that users are willing to pay $10/month for n  Trimmed away non-‐valuable pieces n  You can achieve similar results Copyright © 2012 Olsen Solu6ons

Metrics to Validate Product-‐Market Fit n  Survey results n  Importance & Sa6sfac6on n  Net Promoter Score n  Survey.io/MustHaveScore.com n  How would you feel if you could no longer use Product X? n  Very disappointed, Somewhat disappointed, Not disappointed n  User behavior n  Prospects sign up (high conversion rate) n  They keep using it (high reten6on rate) n  They use it onen (high frequency of use) Copyright © 2012 Olsen Solu6ons

Op6miza6on through Itera6on: Con6nuous Improvement Measure the metric Analyze Learning the metric Gaining knowledge: •  Market Iden6fy top •  Customer opportuni6es to improve •  Domain •  Usability Design & develop the enhancement Launch the enhancement Copyright © 2012 Olsen Solu6ons

Lean Product Ninja Cheat Sheet n  Understand the problem space to iden6fy underserved customer needs n  Deﬁne your value proposi6on n  Create wireframes/mockups n  Get user feedback n  Revise your feature set, UI design, and messaging to improve product-‐market ﬁt n  Launch, learn, and iterate Copyright © 2012 Olsen Solu6ons

+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+ Questions? hVp://olsensolu6ons.com hVp://slideshare.net/dan_o @danolsen +*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+

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How to be a Lean Product Ninja by Dan Olsen

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