Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How to build a product that people want - Product Market Fit Methodology

202 views

Published on

* Is it possible to validate your idea immediately - even before the product is ready?
* Building a product people want - vs. making people want your product
* How to pick features that will generate more revenues?
* How to prove investors your startup will become a 10 Billion $ company?

Published in: Business

How to build a product that people want - Product Market Fit Methodology

  1. 1. FasterTrack to ProductMarketFit FEB 13, 2016 BY JEFF SAFOVICH
  2. 2. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Era of daily breakthroughs Artificial Intelligence with EQ Solution for Cancer Solution for hungerAugmented Human Green Cities IoT based homes Smart Transportation Virus-sized computing devices Quantum computers
  3. 3. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com What is Product Market Fit (PMF)? “Product/market fit means being in a good market with a product that can satisfy that market.” Marc Andreessen “Product/market fit is a precondition for effectively scaling marketing for a company” Sean Ellis “Product/market fit is a step in between customer validation and customer creation” Steve Blank
  4. 4. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Why PMF Methodology? Fail fast: Failure is a cousin of creativity Scientifically measure if there is progress over time Be frank with yourself: know where you are to choose your next step Identify “the most promising” concept; Verify a concept potential Avoid waste: greatest waste is doing efficiently what should not be done at all Peter Drucker Identify the most important improvement to focus on Prioritize product features Speed up business evolution: most startups do not fail, they just run out of money
  5. 5. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com PMF Methodology - Intro • What trick am I about to show off?Trick • What response do I want?Valuation • Try this with different peopleExperiment • Watch results, improve, retryLearning • If the trick is not working, try another oneValidation
  6. 6. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Concept Metrics ExperimentLearn Validate
  7. 7. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Describe Your concept: ◦ Need ◦ Solution - Value ◦ Solution - Growth ◦ Solution - Monetization Concept Metrics ExperimentLearn Validate
  8. 8. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Assessments ◦ What do you need to know to predict success? KPIs ◦ Translate Assessments into KPIs (*) KPI = Key Performance Indicator Concept Metrics ExperimentLearn Validate
  9. 9. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit MVP ◦ Build a MVP to measure your KPI Measure ◦ Run an experiment and measure your KPI (*) MVP = Minimal Viable Product Concept Metrics ExperimentLearn Validate
  10. 10. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit KPI vs. Goals ◦ See what works, and what doesn’t Compass ◦ Focus improvements on highest risks Concept Metrics ExperimentLearn Validate
  11. 11. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Progress ◦ Analyze KPIs over time Convergence / Pivot ◦ Are you on track? Be frank with yourself Concept Metrics ExperimentLearn Validate
  12. 12. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Let's take a closer look
  13. 13. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Making people want your stuff Making stuff people wantVs.
  14. 14. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Solution STEP 1 - Concept • What’s the need? Who needs it? Painfulness? Context?Need • What value will your clients gain?Value • Distribution method: viral? sticky? paid?Growth • How will you monetize?Model • Promise, Players, Use cases, Funnels
  15. 15. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 2 - Actionable Success Metrics Solution Need Value Growth Model Assessments KPIs
  16. 16. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 2 (cont)- Actionable Success Metrics Solution Need Value Growth Model Do they need your solution? For example: • Assessment: • KPI: (*) CTR = Click Through Rate Do private users want to sort out the mess in their contacts? % CTR on invitation emails
  17. 17. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Solution Need Value Growth Model Do they appreciate the value you provide? For example: • Assessment: • KPI: Do users see value in your smart contacts management system? # Returns per user STEP 2 (cont)- Actionable Success Metrics
  18. 18. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Solution Need Value Growth Model Is your growth method working? For example (assuming viral method): • Assessment: • KPI: Are users inviting their friends to try out your product? # Invitation sent per user STEP 2 (cont)- Actionable Success Metrics
  19. 19. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Solution Need Value Growth Model Is your monetization effective? For example: • Assessment: • KPI: Are free users upgrading to a paid version? % of free users -> paying STEP 2 (cont)- Actionable Success Metrics
  20. 20. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 3 - Experiment MVP Measure Try • Minimal possible scope to measure KPI • Embed measurements into MVP • Run your experiment
  21. 21. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 4 - Learn Analyze Compass Progress / t • Current KPI compared to your holy grail • Focus improvements on highest gaps • Did you improve?
  22. 22. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 5 - Validate Goal Goal Are the KPI converging? A B
  23. 23. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Concept Metrics ExperimentLearn Validate • Need, Solution (Value, Growth, Model)___ • Need, Value, Growth, Model___ • MVP, Try, Measure__Analysis, Progress / t, Compass KPI Converging? Repeat
  24. 24. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com More to explore Books Lean startup, by Eric Ries Toyota Production System: Beyond Large-Scale Production, by Taiichi Ohno (Kaizen) Lean Thinking: Banish Waste and Create Wealth in Your Corporation, by James P. Womack and Daniel T. Jones Crossing the Chasm, by Geoffrey A. Moore The four steps to the Epiphany, by Steve Blank Links https://en.wikipedia.org/wiki/Product/market_fit http://www.startup-marketing.com/the-startup-pyramid/ http://blog.pmarca.com/2010/03/20/the-revenge-of-the-fat-guy/ http://theleanstartup.com/ http://paulgraham.com/startupmistakes.html Techniques Agile / SCRUM Rapid prototyping Continuous deployment A/B Testing The 5 Why
  25. 25. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Points to remember Failure is a cousin of creativity. Fail fast! Making stuff people want vs. Making people want your stuff Greatest waste is to do efficiently what should not be done at all. Follow the trail wherever it leads… Most successful startups end up doing something different than they originally intended Enjoy along the way! Paul Graham Peter F. Drucker
  26. 26. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Thank you for attention! If you are wondering how to apply this to your own company, Or if you would like to discuss an interesting idea, I’ll be happy to meet for a coffee. Jeff Safovich jeff@navigabiz.com www.Navigabiz.com
  27. 27. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Special Thanks! A big thanks to everyone who attended this event! It was a great pleasure to meet you. We hope you had as much fun attending as we did organizing it. Thanks to Google Campus that invited us to host the event in their offices! An invitation from Google Campus: If you enjoyed this event, there are many more tech/entrepreneurial related events at Campus Tel Aviv. Special thanks to Opher Brayer who inspired and encouraged me to arrange this event!

×