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Product Management Challenge

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Context: This case study was a Product Management Challenge issued to me at an interview. I really enjoyed the experience and had the choice to pull together a response in either 2 pages or no more than 10 slides. Check out my approach and let me know your thoughts!

Disclaimer: I am a continuous learner so by the time you have consumed this my Product Thinking probably would have evolved.
Link to Backlog: https://trello.com/b/JP4LIdnB/whatsapp

Published in: Technology

Product Management Challenge

  1. 1. Whatsapp vs Skype Challenge By Andy Ayim Twitter: @andyshvc www.andyayim.com
  2. 2. Product Manager’s Challenge You're a product manager at WhatsApp. Things have been going perfectly since you joined but suddenly out of the blue Microsoft's Skype (although thought to be a dying app never to be resurrected) has turned things overnight and their growth rate is insane approaching 1 billion users and will eclipse your MAUs in a few months. The CEO of your company immediately pulls you into a tense boardroom meeting where he lays out the fact that this could break the company if nothing is done. You're the company's only hope for survival and have been given full ownership of the product's immediate direction in order to turn this around.
  3. 3. What would you do?
  4. 4. Current Situation SITUATION > PROBLEM > SOLUTION Biggest impact is on retention as users choose to switch platforms from Whatsapp to Skype. It can cost up to 7x to acquire new customers than retain existing customers 1 million installs 80% send their 1st message in 7 days 70% send 10+ messages in 7 days 1 billion DAUs Do Nothing 900,000 installs 80% send their 1st message in 7 days 35% send 10+ messages in 7 days 500 million DAUs Do Something RETENTION PROBLEM ? Understanding the Only Metric That Matters
  5. 5. OKRs: Ruthless focus on retaining our core users OBJECTIVE Increase Daily Active Users in order to retain our core users and continue to grow LTV KEY RESULT 1. Increase DAU’s who send 10+ messages in a week from 70% to 90% in 90 days 2. Increase LTV: CAC ratio to 4:1
  6. 6. Highest Risk Assumptions to Validate Business Customers 1. Core users are leaving the platform because: ○ Users cannot hold Group Phone or Video Calls ○ No Business features such as Skype’s Chatbots ○ No discovery feature to find Businesses on Whatsapp 1. The number 1 value a customer wants to get out of Whatsapp is effortless messaging between businesses and customers 2. Whatsapp will make money by selling services to Businesses such as Chatbots to automate onboarding and customer support 3. My primary competition in the market will be Skype 4. Whatsapp will beat them due to the price of our Business Services 5. My biggest product risk is that users may not be willing to pay for Whatsapp’s new Business Services =Riskiest assumption to validate
  7. 7. Prioritisation Low Low Hi Hi Business Value Risk no discovery function to find Businesses on Whatsapp users may not be willing to pay for new Business Services users cannot hold Group Phone or Video Calls Would users be willing to pay for it? If so/ not why?
  8. 8. We believe that customers want to be able to hold Group Phone and Video Calls 3 Hypothesis Statements We believe that Business users are willing to pay for new Business services. 1 We know this is true when over 90% of participants sign up for a paid services within 60 days post-launch. We believe that customers want to be able to discover Businesses on Whatsapp 2 We will know this is true when over 70% of participants sign up and use our discovery services within 14 days post-launch We will know this is true when over 70% of interview participants reveal this as a pain point from conducting 20 interviews with core customers
  9. 9. Zero Code Experiments 1. Manual MVP “AndyBot” 2. Landing Page Test 3. Customer interviews We could explore different channels for little or no budget such as: ● Twitter/ Instagram/ Facebook ● HackerNews ● Trial Businesses Newsletter e.g. Spaces4Hire ● Spaces4Hire customer facing staff We believe that Business users are willing to pay for new Business services. 1 Over 90% of participants sign up for paid services within 60 days post-launch.
  10. 10. Goal-orientated roadmap Now (0-30 days) Next (31 - 60) Future (61 - 90) Name Manual MVP “Andybot” Pricing Plan A/B Test Automated Chatbot Goal Validate the unique value proposition of Whatsapp’s new Business Service Validate customers are willing to pay for the new service Increase Daily Active Users in order to retain our core users and continue to grow LTV Features Human controlled Chatbot for: ● Onboarding ● Customer Support ● Booking Services Three page landing page: ● Unique Value Proposition ● Three pricing plans ● 30 day Free trial + enter payment details Automated Chatbot for: ● Onboarding ● Customer Support Metrics Over 90% of participants sign up for the new business service within 14 days post-launch. Over 50% of participants pay for trial services within 30 days post-launch ● Increase DAU’s who send 10+ messages in a week from 70% to 90% ● Increase LTV: CAC ratio to 4:1 Risks & Mitigations ● Doesn’t consider complexity of onboarding or customer support processes ● Start the trial with Businesses with easily replicable processes such as Virgin Holidays ● Businesses may not see the value of the service in just 30 days and therefore leave before the trial ends ● Prioritise ‘Happy path’ use case that delivers value within a short timeframe then iterate ● Assumes a standardised solution could be rolled out to a large number of businesses ● Businesses should be able to tailor the Chatbot for their process (80% standard, 20% 80% certainty 20% certainty
  11. 11. Build, Measure Learn https://trello.com/b/JP4LIdnB/whatsapp 1. Establish a hypothesis 2. Determine a quantitative or qualitative method to evaluate that hypothesis. 3. Build an experiment to test that hypothesis STEP 1 1. Build an experiment to test that hypothesis 2. Measure meaningful metrics 3. Learn whether we have taken a step in the right direction or not (pivot or shut down!) STEP 2
  12. 12. Appendix 1. The Only Metric That Matters by Josh Elam (Greylock Partners) 2. Customer Acquisition can cost 7x Retention by Kissmetrics blog 3. Lean UX Book Review by Marc Abraham 4. RICE Framework for Prioritisation by Intercom blog 5. Storytelling by Sarah Doody 6. The Go Agile Product Roadmap by Roman Pichler 7. Whatsapp Business Services by TechCrunch

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