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"Using Data to Set Product Strategy" by Justin Bauer

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The way businesses are being built is shifting right before our eyes. Whole industries are being disrupted in real time and those that are able to take advantage are reaping massive returns.

In this PRODUCTIZED talk, Justin Bauer, VP of Product at Amplitude, shares his advice from working with dozens of the world’s fastest growing companies on how to:
- Create clarity using a clear and measurable north star metric
- Integrate behavioral science into their decision making frameworks to build deep user empathy
- Rapidly iterate to drive systematic and efficient growth

Published in: Business

"Using Data to Set Product Strategy" by Justin Bauer

  1. 1. Justin Bauer | justin@amplitude.com | @justinjbauer Using Data to Set Product Strategy
  2. 2. My road to visiting you all today Justin Bauer VP Product 20k Products Powered 5T User Actions Analyzed Data Science & Analytics Mobile Gaming
  3. 3. All being transformed by companies that create innovative product experiences that customers love
  4. 4. #product-led
  5. 5. Vision 1 #product-led
  6. 6. Strategy 2Vision 1 #product-led
  7. 7. Strategy 2Vision 1 Results 3 #product-led
  8. 8. #product-led Create a vision 1
  9. 9. Vision
  10. 10. Vision What is the measurable world we want to create?
  11. 11. Vision What is the measurable world we want to create?
  12. 12. Give people access to all the music they want all the time — in a completely legal & accessible way
  13. 13. Give people access to all the music they want all the time — in a completely legal & accessible way
  14. 14. Vision What is the measurable world we want to create?
  15. 15. North Star Leading indicator of future success North Star & metrics Vision Impact Strategy
  16. 16. How does analytics inform Product Strategy? Vision Impact
  17. 17. How does analytics inform Product Strategy? North Star & metrics Vision Impact Strategy
  18. 18. Three steps ● Define the game you’re playing ● Identify North Star metrics that drive business outcomes ● Choose input metrics that are leading indicators North Star & metrics Vision How does analytics inform Product Strategy? Impact Strategy
  19. 19. What game are you playing?
  20. 20. What game are you playing? transaction productivityattention
  21. 21. Define the game you’re playing attention Typical Product North Stars ● Total time spent engaging with content ● # Users spending > 5 min/day ● # Stories viewed ● # Subscribers streaming > 60 hrs/mo
  22. 22. Define the game you’re playing attention Typical Product North Stars Examples ● Total time spent engaging with content ● # Users spending > 5 min/day ● # Stories viewed ● # Subscribers streaming > 60 hrs/mo
  23. 23. Define the game you’re playing ● Total # of Purchases completed ● Avg # Purchases per Prime Subscriber ● # Searches completed ● # Seat Upgrades purchased transaction Typical Product North Stars
  24. 24. Define the game you’re playing transaction ● Total # of Purchases completed ● Avg # Purchases per Prime Subscriber ● # Searches completed ● # Seat Upgrades purchased Typical Product North Stars Examples
  25. 25. Define the game you’re playing productivity Typical Product North Stars ● Total # of records created ● % of Emails engaged ● # of messages sent ● # Active Users who logged/completed a task ● # Queries completed
  26. 26. Define the game you’re playing productivity Typical Product North Stars Examples ● Total # of records created ● % of Emails engaged ● # of messages sent ● # Active Users who logged/completed a task ● # Queries completed
  27. 27. Three key components of an effective North Star
  28. 28. Measure Customer Value 1 Three key components of an effective North Star
  29. 29. Three key components of an effective North Star Measure Customer Value 1 Aligned with Product Vision 2
  30. 30. Leading Indicator of Revenue 3 Three key components of an effective North Star Aligned with Product Vision 2Measure Customer Value 1
  31. 31. Identify signals of Customer Aha! Moments Critical event Vanity metric Aha! Moments are often deep in the funnel, while vanity events occur upfront
  32. 32. About that music streaming service
  33. 33. What does Spotify CEO, Daniel Ek, care about?
  34. 34. What does Spotify CEO, Daniel Ek, care about? Revenue!
  35. 35. How does ‘Revenue’ translate into a North Star for product?
  36. 36. How does ‘Revenue’ translate into a North Star for product? Premium subscribers Ad-supported users (a.k.a. free users)
  37. 37. How does ‘Revenue’ translate into a North Star for product? Premium subscribers Ad-supported users (a.k.a. free users) % of Revenue 90% 10%
  38. 38. How does ‘Revenue’ translate into a North Star for product? Premium subscribers Ad-supported users (a.k.a. free users) % of Revenue Avg listening hrs / month 90% 10% 75 hrs / month 25 hrs / month
  39. 39. Let’s give it a try Time spent by subscribers listening to music
  40. 40. Let’s give it a try Time spent by subscribers listening to music Measure of customer value Aligned with product vision Leading indicator of revenue
  41. 41. Let’s give it a try Time spent by subscribers listening to music Measure of customer value Aligned with product vision Leading indicator of revenue
  42. 42. Let’s give it a try Time spent by subscribers listening to music Measure of customer value Aligned with product vision Leading indicator of revenue
  43. 43. Let’s give it a try Time spent by subscribers listening to music Measure of customer value Aligned with product vision Leading indicator of revenue
  44. 44. #product-led Set Strategy 2
  45. 45. Strategy Path to deliver on the product vision
  46. 46. Break down the North Star into actionable Input Metrics f(Star) =
  47. 47. Break down the North Star into actionable Input Metrics Breadthf(Star) = How many active/returning users are taking this action?
  48. 48. Break down the North Star into actionable Input Metrics Breadth Depthf(Star) = x How many active/returning users are taking this action? What’s their depth of engagement?
  49. 49. Break down the North Star into actionable Input Metrics Breadth Depth Frequencyf(Star) = x x How many active/returning users are taking this action? What’s their depth of engagement? How often does each user engage?
  50. 50. Break down the North Star into actionable Input Metrics Breadth Depth Frequency Efficiencyf(Star) = x x x How many active/returning users are taking this action? What’s their depth of engagement? How often does each user engage? How fast do they succeed?
  51. 51. Break down Spotify’s North Star f(Star) = Time spent by subscribers listening to music
  52. 52. Break down Spotify’s North Star Listeners Content engagement Listening frequency f(Star) = x x Time spent by subscribers listening to music
  53. 53. Break down Spotify’s North Star Listeners Content engagement Listening frequency f(Star) = x x Time spent by subscribers listening to music # Trial users # Premium subscribers
  54. 54. Break down Spotify’s North Star Listeners Content engagement Listening frequency f(Star) = x x Time spent by subscribers listening to music # Trial users # Premium subscribers # Hours per session
  55. 55. Break down Spotify’s North Star Listeners Content engagement Listening frequency f(Star) = x x Time spent by subscribers listening to music # Trial users # Premium subscribers # Hours per session # Sessions per week
  56. 56. attention
  57. 57. attention Number of Subscribers
  58. 58. attention Number of Subscribers Monthly Retention (92%)KPI
  59. 59. attention Number of Subscribers Monthly Retention (92%)KPI metrics 3 DVDs in queue (60%)
  60. 60. Behavioral Science metrics metrics metrics metrics metrics metrics KPI KPI OUTCOME Leading Indicators Lagging IndicatorsInput Metrics
  61. 61. WQUs North Star
  62. 62. WQUs North Star Week 1 Retention Weekly Saving Users Time to Value Pod Goal
  63. 63. WQUs North Star Week 1 Retention Weekly Saving Users Time to Value Pod Goal # New users engaging in valuable consumption # Users doing in-depth exploration Time from first data point to valuable consumption Leading Indicator
  64. 64. #product-led Measure results 3
  65. 65. Results Objectively measure if we’re on the right path
  66. 66. OKRObjective, Key Results
  67. 67. How to apply OKRs towards Product Development 1 2 3 They’re called OKRs and not KROs for a reason Know the difference between Input, Output and Outcome metrics Benchmark your OKRs based on the game you’re playing
  68. 68. OKRs not KROs1
  69. 69. OKRs not KROs1
  70. 70. OKRs not KROs1
  71. 71. Input, Output, Outcome2
  72. 72. Input, Output, Outcome2 Input Interview 8+ users on how they understand conversion today
  73. 73. Input, Output, Outcome2 Input Output Interview 8+ users on how they understand conversion today Develop a <60 sec workflow that compares users who did/didn’t convert
  74. 74. Input, Output, Outcome2 Input Output Outcome Interview 8+ users on how they understand conversion today Develop a <60 sec workflow that compares users who did/didn’t convert See 15% growth in WQUs engaging with conversion analysis
  75. 75. Benchmark based on game you’re playing3
  76. 76. Benchmark based on game you’re playing3
  77. 77. Benchmark based on game you’re playing3
  78. 78. Product Charter Vision > Strategy > Results
  79. 79. Vision 1 Strategy 2 Results 3
  80. 80. Amplitude Growth Engine
  81. 81. Strategy 2Vision 1 Results 3 #product-led

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