1.
Right From The Start
From Failing Fast to Succeeding Sooner
Alan Albert
marketfit.com
alan@marketfit.com
linkedin.com/in/alanalbert
@a_albert
#values-first

2.
What are our most difficult product challenges?
?

3.
Your job is hard!

4.
I expect my current efforts
will eventually succeed
will ultimately fail

5.
The real problem
Most of the time, we fail

6.
We fail a lot!
More than 80% fail
Startups
Products
Services
Features

7.
We’re not even aware we’re going to fail

8.
There’s a lot of waste
More than $29B spent per year
creating features used rarely or never
Source: Pendo 2019 Feature Adoption Report

9.
We’ve got some serious problems to fix

10.
Product Creation Process
The Process of Design Squiggle by Damien Newman, thedesignsquiggle.com

11.
Two distinct phases
Discovery Optimization

12.
What’s wrong with how we do Discovery?
Too much
time to learn
money to design and build
Too few
leading indicators
signs we’re on the wrong track

13.
These are serious problems to fix

14.
The waste is here…
The Process of Design Squiggle by Damien Newman, thedesignsquiggle.com

15.
What if we could start here?

16.
What if instead of struggling with priorities…
We all agreed
on the same
North Star?

17.
You’re probably skeptical

18.
You may be thinking...

19.
This sounds a lot like waterfall

20.
It probably takes too long

21.
It sounds hard

22.
What if a different approach doesn’t work?

23.
Why am I calling for a new approach?

24.
I’ve been there…
$1B

25.
I’ve been there…and failed, repeatedly
$1B

26.
A story of failure
[ mine ]

27.
“ You're going on an apology tour! ”

28.
Bugs?
Missing features?
Slow performance?
Hard to use?
Discovering where we went wrong

29.
Bugs? No
Missing features? No
Slow performance? No
Hard to use? No
Discovering where we went wrong

30.
What I learned…
sparked the journey that led me here today

31.
Over the last several years, I’ve been exploring...
Why so much waste and failure?
How to fail less, succeed faster?
What do successful teams do?

32.
You can achieve success, faster
Once you gain
tools and skills

33.
We’re on the cusp of another shift
Toyota - Reduce Manufacturing Waste → Quality
Agile - Reduce Coding Waste → Feedback
Lean - Reduce Optimization Waste → Speed
Toyota Manufacturing Waste Quality
Agile Coding Waste Feedback
Lean Optimization Waste Speed

34.
We’re on the cusp of another shift
Toyota - Reduce Manufacturing Waste → Quality
Agile - Reduce Coding Waste → Feedback
Lean - Reduce Optimization Waste → Speed
Toyota Manufacturing Waste Quality
Agile Coding Waste Feedback
Lean Optimization Waste Speed
??? Discovery Waste Success

35.
We have a choice

36.
Are you ready?

37.
How can we improve our
Product Creation process?

38.
Our current Product Creation process
The Process of Design Squiggle by Damien Newman, thedesignsquiggle.com

39.
Two distinct phases
Discovery Optimization

40.
Where do we spend most of our time?
Discovery Optimization

41.
Where do we spend most of our time?
Discovery Optimization

42.
We often never find the right direction

43.
What are we doing here?

44.
What are we doing here?
Design
Build
Measure
Repeat

45.
If this is the best way…
Why does it…
Cost so much time & money?
Fail so often?

46.
Design the wrong thing
Build the wrong thing
Measure to see if it works
Repeat, hoping for better
What kinds of waste happen here?

47.
Not Enough Features
Wrong Features
Broken Features
Doesn’t Work
Doesn’t Solve the Problem
Poor Marketing
Bad Sales Process
Why do products fail?

48.
Not Enough Features
Wrong Features
Broken Features
Doesn’t Work
Doesn’t Solve the Problem
Poor Marketing
Bad Sales Process
Why do products fail?

49.
What do we know at the end?
…that we didn’t know at the start?

50.
Here we know why
Why they were interested
Why they came
Why they tried
Why they bought
Why they recommended
Why they left

51.
?
How do we find our way out of here?

52.
What’s really inside this box?
?

53.
Your customers
What’s really inside this box?

54.
Why not measure your customers directly?

55.
This is not about
Just talking to customers
Asking about their problems
Finding the job to be done
Building what they ask for
Showing your idea, design, or product
Measuring how they react

56.
This is about finding a way to discover
what drives your customers’ decision making

57.
This is about finding a way to discover
the values that drive their decision making

58.
If Henry Ford had...
asked what customers want
“Faster horse”

59.
If Henry Ford had...
asked what customers want discovered what customers value
“Faster horse” “Get me there fast”
“Keep me dry”
“Stop paying for hay”

60.
If Steve Jobs had...
asked what customers want
“Faster CPU, more memory”
“More ports & peripherals”

61.
If Steve Jobs had...
asked what customers want discovered what customers value
“Faster CPU, more memory”
“More ports & peripherals”
“Light enough to carry all day”
“Power that lasts all day”

62.
How can we do better at Discovery?

63.
Not Enough Features
Missing Features
Wrong Features
Doesn’t Work
Doesn’t Solve the Problem
Poor Marketing
Bad Sales Process
Why do products fail?

64.
Not Enough Features
Missing Features
Wrong Features
Doesn’t Work
Doesn’t Solve the Problem
Poor Marketing
Bad Sales Process
Why do products fail?
Not enough customers
find them valuable enough

65.
What makes your product valuable?
?

66.
What makes your product valuable?
Your customers

67.
What makes your product valuable?
Customer
Perception of Value
If they value your product,
then it is valuable
If they don’t value your product,
then it’s not valuable

68.
Understanding Customer Perception of Value
• Definition
• Segmentation
• Value Layers
• Audiences
• Context
• Differentiation
• Lots more…
A very quick tour
For another day

69.
What are customer values?
What people care about in a particular context
The “why” that makes them buy
• Preferences, reasons & criteria
• Motivations, goals & aspirations
• Fears, concerns & worries
• Limits, standards & ideals

70.
People with different values react differently to the same product

71.
The same basic product…

72.
Can be targeted at people with different values

73.
New definition of Market Segment
People who share
the same perception of what’s most valuable

74.
Choose your target market segment

75.
Choose your target market segment carefully
Large audience with shared values

76.
Choose your target market segment carefully
Large audience with shared values
Small audience with shared values

77.
Value Layer
Product or Feature
Solution Type
Problem /
Job to be Done
Role / Identity
Customer Values exist in different layers

78.
Example: Value Layers for AirBNB
Value Layer Example
Product or Feature Online Apartment Booking
Solution Type Online Marketplace
Problem /
Job to be Done
Find a Place to Stay
Role / Identity Experiential Traveler

79.
Value Layer Example
Product or Feature Online Apartment Booking
Solution Type Online Marketplace
Problem /
Job to be Done
Find a Place to Stay
Role / Identity Experiential Traveler
Example: Value Layers for AirBNB
Ways they know it’s great
when they see it
Why they want it

80.
Successful products focus on specific values
Value Layer Example Values
Product or Feature Online Apartment Booking
Accuracy of Description,
Completeness of Photos
Solution Type Online Marketplace
Number of Listings,
Searchability
Problem /
Job to be Done
Find a Place to Stay Comfort, Price
Role / Identity Experiential Traveler
Local Experiences,
Low Risk

81.
Value Layers determine how innovative you can be
Value Layer Example
Product or Feature Online Apartment Booking
Solution Type Online Marketplace
Problem /
Job to be Done
Find a Place to Stay
Role / Identity Experiential Traveler
Incremental Disruptive

82.
Audiences
Each audience perceives value differently
Buyers /
Purchasers
Evaluators Decision Makers
Scouts /
Influencers
Users Approvers

83.
Context
Perception of Value changes throughout the customer journey
Awareness Consideration Purchase Usage Advocacy

84.
Putting it all together
Customer values
at each layer
drive decisions
for a specific audience
in a specific segment
in a particular context

85.
Values-First Design for Product-Market Fit
CUSTOMER
VALUES
PRODUCT
VALUES
MARKETING
“PROMISE OF
VALUE”
PRODUCT
- MARKET
FIT

86.
Applying the concepts of
Customer Perception of Value

87.
To get to the top of a market segment
We try to excel at satisfying all our target customers’ values

88.
We must be sub-par at something
But we can’t excel at everything

89.
If we choose to be sub-par at less important values

90.
If we choose to be sub-par at less important values
We save time & money and reduce waste

91.
We can excel at satisfying our customers’ top values

92.
This is what winning companies do
Deliver a tightly focused set of values to a large market

93.
More features ≠ more value
Adding features often reduces value

94.
Disruptive innovations omit “essential” features
to deliver exceptional value
No EvidenceNo TaxiNo HotelNo Keyboard No Gas Engine

95.
You can create value by amplifying
customers’ shared top values
Get fit at home
Find community
Energy
Stamina
Help me look good
Find my next job

96.
Or you can create value by minimizing
customers’ shared negative values
Less Fat Zero Calories No Tears

97.
The top 1 - 3 values drive most customer decisions
Safety PerformanceEconomy
Being Green

98.
But not so fast!
Don’t guess at your customers’ values
You’ll likely be wrong

99.
Discovering customer values is hard
How can we do it reliably?

100.
Some ways we’ve tried to do Discovery
Surveys
Talk to customers
Focus groups
Anthropological research
Product testing
A/B tests
Product analytics
We need a different approach,
focused on
Customer Perception of Value

101.
Value Discovery Research

102.
To discover customer values, we can’t just guess

103.
We must get better at asking questions

104.
…and get better at listening

105.
We must focus exclusively on discovering values
one audience at a time…
Buyers /
Purchasers
Evaluators Decision Makers
Scouts /
Influencers
Users Approvers

106.
We must focus exclusively on discovering values
one context at a time
Awareness Consideration Purchase Usage Advocacy

107.
Interviewing for Customer Perception of Value
1. Ask them to describe their past behavior in your chosen context
2. Then ask about their thinking throughout that part of the journey

108.
Interviewing for Customer Perception of Value
1. Ask them to describe their past behavior in your chosen context
2. Then ask about their thinking throughout that part of the journey
• Listen for how they made their decision, which values mattered most
• Don’t mention any features or your ideas
• Focus on discovering why. Don’t ask “why” or mention “values”

109.
Value Discovery Interviewing Tips
Don’t pay interviewees Talk only to people who care
Use surveys to screen interviewees Gain insight with live interviews
Let them use their own words Avoid yes/no, a/b or forced choices
Don’t mention your product or feature Learn what they care about
Quantify the intensity of their values Learn which values matter most
Don’t disagree, prove or sell Learn what they think

110.
Customer Perception of Value Mini-Workshop
1. Ask a neighbour to name a recent considered purchase
2. Ask them to describe their buying behavior in detail, start to finish
Ask only about the past — not the present or future
3. Ask about their thinking along the journey they described
Listen
What led them to do the things that they did?
How did they go about evaluating and arriving at their final decision?
Listen carefully for their values and be empathetic!

111.
Your insights into Perception of Value

112.
You have new tools & skills
Congratulations!

113.
What have we learned?

114.
Values first!
Values are discoverable
You don’t need a product, feature,
wireframe or even an idea
It’s actually better if you don’t

115.
Traditional Discovery vs. Value Discovery
Instead of We can now

116.
Instead of trying to excel at everything

117.
We can excel at satisfying our customers’ top values

118.
Measuring our progress
Instead of We can now
Design → Build → Measure Measure values first
Design → Build → Measure

119.
Maximizing Customer Perception of Value
A North Star
we can all
focus on

120.
We’re not done yet...

121.
How can you make this work at work?

122.
Starting with value discovery
Start small
Be curious
Collaborate
Reduce bias
Iterate

123.
Sharing your experience
What works
What doesn’t
Questions
Answers

124.
We’re on a journey
Toyota Manufacturing Waste → Quality
Agile Coding Waste → Feedback
Lean Optimization Waste → Speed
Values First Discovery Waste → Success

125.
Remember...

126.
Your job is hard!

127.
You now have new values-first tools and skills

128.
Your job is great!

129.
Right From The Start
From Failing Fast to Succeeding Sooner
Alan Albert
marketfit.com
alan@marketfit.com
linkedin.com/in/alanalbert
@a_albert
#values-first