2. Product management,
strategy and growth
consultant
Previously product manager
@Google, @ Microsoft and a
number of startups.
Previously Software engineer -
@IBM and other companies.
@itamargilad
Itamargilad.com
itamar@itamargilad.com
Newsletter
4. Product Adoption Forces
Your Solution
What they
are using now
Value
Costs
Word of mouth
Brand
Attraction of the new
Anxiety of the new
Switchover costs
Underserved Needs
Triggers
Marketing
Choice architecture
Direct sales
Habits
Endowment effect
Social proof
itamargilad.com
5. “It’s easier to make
things people want
than it is to make
people want
things.”
Des Traynor / Intercomitamargilad.com
6. New Product Adoption
Your Solution
What they
are using now
Value
Costs
Word of mouth
Brand
Attraction of the new
Anxiety of the new
Switchover costs
Underserved Needs
Triggers
Nudges
Choice architecture
Direct sales
Habits
Endowment effect
Social proof
itamargilad.com
7. Focus on Value, Costs, Needs
Your Solution
What they
are using now
Value
Costs
Word of mouth
Brand
Attraction of the new
Anxiety of the new
Switchover costs
Underserved
Needs
Triggers
Nudges
Choice architecture
Direct sales
Habits
Endowment effect
Social proof
itamargilad.com
8. Value is the property we
assign to a thing—a product, a
service, a person, an
experience, that indicates how
important, worthwhile or
beneficial we think it is for us.
itamargilad.com
9. Value Comes From Addressing Needs
Maslow's hierarchy of needs
Emotional Needs
Help me feel good
Functional Needs
Help me get things
done
Social Needs
Make me look good to
others
itamargilad.com
10. Functional Value - Help Me Get Things Done
Jobs - Tasks, errands, projects…
Health and Wellbeing
Wealth - Money, Leisure time, Things,
Experiences, Knowledge, Etc
Physiological needs - Air (Breathing), Water,
Food , Sleep, Clothing, Shelter, Sex
Safety - Personal security, Financial security
itamargilad.com
12. ● Social acceptance
● Sense of belonging (family , friends, tribe,...)
● Receiving and giving love
● Connecting and maintaining connections
● Status, respect, confirmation
● Projecting the right image
● Observing others, comparing to ourselves
● Learning social norms and trends, fitting in
● Taking part in the conversation
Social Value - Make Me Socially Accepted
itamargilad.com
13. Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem
BuzzFeed - What makes something go viral?
Source: What Makes Something Go Viral / Dao Nguyen
The media is doing a social
job for them - sending a
social message they need
to send.
As a way to communicate
with others.
People are sharing media.
Why?
Why?
This is me
Explain my identity, my
upbringing, my beliefs, without
coming across as too self-
absorbed or serious.
itamargilad.com
14. ● Pleasure, delight
● Fun - entertainment, escapism
● Hope
● Self-esteem
● Self-reliance, autonomy
● Self fulfillment - sense of purpose and
meaning, mastery, personal growth
● Aesthetics - beauty, symmetry, balance
● Spirituality
● Altruism - Contributing to a greater
whole
Emotional Value - Make Me Feel Good
itamargilad.com
15. $40/year
$50/year
Cost and Complexity
Cost
What they use now Our Product
Time required
Physical effort
Mental effort
Social deviance
Non-routine
Time required
Physical effort
Mental effort
Social deviance
Non-routine
source:B.J. Foggitamargilad.com
16. Example - Social Deviance
Cost
Social deviance
Smartphone
Social deviance
Smartwatch
Social deviance
Smart glasses
itamargilad.com
17. Needs of Businesses
Reach out to target market
Foster customer love / loyalty
Take part in the conversation
Build brand and protect it
Create word of mouth
Project the right image
Spy on competitors
Create sense of order, predictability
Reduce risk
Avoid failure
Create and deliver value
Sense of meaning
Emotional Needs
Help me feel good
Social Needs
Make me look good to others
Gain revenue / funding
Reduce costs
Increase productivity
Accomplish jobs
Reduce risk
Functional Needs
Help me get things done
itamargilad.com
19. Patek Philippe Nautilus - 40,000 € Casio digital - 35 €
Functional value
Social value
Emotional value
Cost
Functional value
Social value
Emotional value
Cost
Example: Sports Watches
itamargilad.com
20. Value is in The Eye of The Beholder
Product
Lives in Alaska Lives in Amsterdamitamargilad.com
21. Value, Costs are Perceived
Context
Needs
Alternatives
Frames of reference
Cost sensitivity
Values & Beliefs
Social norms
Product Customer
Perceived Value
Perceived Costs
itamargilad.com
23. Customer Adoption Journey
Unaware Visitor Active Retained Paying
Value
Proposition
Aha!
Moment
Sustained
Value
Premium
Value
itamargilad.com
24. Funnel (Pirate) Metrics
Acquisition Activation
Acquired
Active
User
Customer
Non-
Customer
Revenue
Customer
Ret.
Referral
Retention
itamargilad.com
itamargilad.com
25. Before and After PMF
Before PMF After PMF
Customer acquisition Push Pull
Customer activation Guidance, Assistance Self-serve
Long term retention Low or zero Good, stable
Conversion to purchase Hard, slow, low % Easy, fast, good %
Referrals, word-of mouth Non-existent, negative High, positive
itamargilad.com
26. Customer Jobs
Tasks to perform,
problems to fix, needs
to satisfy (Functional,
Social, Emotional)
Gains
Outcomes and benefits
you customers want
(required/expected/
desired)
Pains
Annoyances and risks
tied to a job or
preventing it from
happening
Pain Relievers
How your products and
services alleviate
customer pains
Gain Creators
How your p&s deliver
gains
Product & Services
How your products and
services help your
customer get their jobs
done
Value Proposition Canvas
Customer ProfileValue Proposition Source: Strategyzer.comitamargilad.com
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Questions
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@itamargilad | itamargilad.com
Cost: the bank will give you the app for free.
This app is all about functionality. No one sees you using it.
But there are always costs - the app is complicated to use (ramp up cost), you need to use a physical token to sign in, there’s anxiety of doing something wrong,
Opportunity: making an e-banking app that makes you feel good (you’re on top of your finances), or that makes you look good (UBS gold member).
Pull vs. Push
Self activation
Closing deals
Word of mouth