1.
A Playbook
For Achieving
Product-
Market Fit
DAN OLSEN
NOV 12, 2015

2.
My#Background#
Educa/on#
! Engineering#background#
! Stanford#MBA#
! UX#design,#web#and#mobile#coding#
#
Experience#
! Led#Quicken#Product#Management#at#Intuit#
! Led#Product#Management#at#Friendster#
! CEO#&#Cofounder,#TechCrunch#award#winner#YourVersion#
! Product#consultant:#Facebook,#Box,#MicrosoM#
! Organizer:#Lean#Product#&#Lean#UX#Meetup#Silicon#Valley#
#
I#will#post#my#slides#at#hOp://slideshare.net/dan_o#
Copyright#©#2015#@danolsen#

3.
What#is#“Lean#Startup”#all#about?#
! Ar/culate#hypotheses#
! Iden/fy#fastest#way#to#test#
! Keep#scope#small:#
minimum#viable#product#(MVP)#
! Test#with#customers#
! Learn#and#iterate#
! Achieve#productamarket#fit#
Copyright#©#2015#@danolsen#
Sounds'easy,'right?'

4.
That’s#Why#I#Wrote#a#HowaTo#Guide#
For#Achieving#ProductaMarket#Fit##
hOp:///ny.cc/LPP

5.
What#is#
ProductaMarket#
Fit?#

6.
The#ProductaMarket#Fit#Pyramid#

7.
The#ProductaMarket#Fit#Pyramid#

8.
The#ProductaMarket#Fit#Pyramid#

9.
The#ProductaMarket#Fit#Pyramid#

10.
The#Lean#Product#Process#

11.
The#Lean#Product#Process#

12.
The#Lean#Product#Process#

13.
The#Lean#Product#Process#

14.
The#Lean#Product#Process#

15.
The#Lean#Product#Process#

16.
The#Lean#Product#Process#

17.
The#Lean#Product#Process#

18.
Copyright#©#2015#@danolsen#

19.
The#Lean#Product#Process#
1. Determine#your#target#customer#
2. Iden/fy#underserved#customer#needs#
3. Define#your#value#proposi/on#
4. Specify#your#MVP#feature#set#
5. Create#your#MVP#prototype#
6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#

20.
Transporta/on#within#100#miles#of#my#home#
Soccer#Mom#
#
#
Speed#Demon#
Carry#kids#&#gear#
Safety#
Fuel#economy#
Go#fast#
Looks#cool#
Makes#me#look#cool#
#
#
#
#
#
Target#Customer#Has#Dis/nct#Needs#
Highalevel#need#
#
Target#Customer#
#
#
Detailed#needs#
#
Ideal#Product#
Soccer#Mom# Speed#Demon#

21.
The#Lean#Product#Process#
1. Determine#your#target#customer#
2. Iden/fy#underserved#customer#needs#
3. Define#your#value#proposi/on#
4. Specify#your#MVP#feature#set#
5. Create#your#MVP#prototype#
6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#

22.
#
#
! Russians:#pencil#
! NASA:#space#pen#
($1#M#R&D#cost)#
#
#
#
#
Example#
! Ability#to#write#in#space#
(zero#gravity)#
Problem#Space#vs.#Solu/on#Space#
Problem#Space#
! A#customer#problem,#need#
or#benefit#that#the#product#
should#address#
! A#product#requirement#
Solu/on#Space#
! A#specific#implementa/on#
to#address#the#need#or#
product#requirement#
Copyright#©#2015#@danolsen#

23.
Problem#vs.#Solu/on#Space:#Product#Level#
Problem#Space#
(user#benefits)#
Solu/on#Space#
(product)#
TurboTax
TaxCut
Pen and
paper
Prepare
my taxes
File my
taxes
Check my
taxes
Maximize
deductions
Reduce
audit risk
Copyright#©#2015#@danolsen#

24.
Problem#Space#
#
Problem#vs.#Solu/on#Space:#Feature#Level#
Copyright#©#2015#@danolsen#
Save time filing
taxes
Save time
preparing taxes
Maximize my
tax deductions
Check my
return
Reduce my
audit risk
Help me
prepare taxes
Empowerment/
Confidence
Save Time
Save Money
Tax Interview
Wizard
Audit Risk
Analyzer
Tax Return
Error Checker
Tax Data
Downloader
Electronic Tax
Return Filing
Tax Deduction
Finder
Solu/on#Space#

25.
Group#Exercise:#Customer#Needs#
! Think#about#Airbnb#
! Focus#on#the#problem#space#
! What#customer#needs#does#Airbnb#address?#
Copyright#©#2015#@danolsen#

26.
Priori/zing#Needs:#Importance#vs.#Sa/sfac/on#Importance#of#User#Need#
User#Sa/sfac/on#with#Current#Alterna/ves#
Compe//ve
Market#Opportunity#
Low# High#
Low#
High#
Not#Worth#Going#AMer#
Copyright#©#2015#@danolsen#

27.
Crea/ng#Customer#Value#
Copyright#©#2015#@danolsen#
Importance#of#User#Need#
User#Sa/sfac/on#with#the#Product#
Low# High#
Low#
High#
Area#=#
Customer#
Value#
Created#
Area#=#
Opportunity#
to#Create#
Customer#
Value#

28.
Users#Rated#13#Key#Features#in#a#Survey#
Recommended#reading:#
What#Customers#Want #by#Anthony#Ulwick#
Great#
Copyright#©#2015#@danolsen#
Bad#

29.
Kano#Model:#User#Needs#&#Sa/sfac/on#
User#Sa/sfac/on#
User#Dissa/sfac/on#
Performance#
(more#is#beOer)#
Delighter#(wow)#
Need#
not#met#
Need#
fully#met#
Must#Have#
Needs#&#features#
migrate#over#/me#
Copyright#©#2015#@danolsen#

30.
The#Lean#Product#Process#
1. Determine#your#target#customer#
2. Iden/fy#underserved#customer#needs#
3. Define#your#value#proposi/on#
4. Specify#your#MVP#feature#set#
5. Create#your#MVP#prototype#
6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#

31.
What#is#Your#Value#Proposi/on?#
! Which#user#benefits#are#you#providing?#
! How#are#you#beOer#than#compe/tors?#
#
Must#Have#Benefit#1#
Performance#Benefit#1#
Performance#Benefit#2#
Performance#Benefit#3#
Delighter#Benefit#1#
Delighter#Benefit#2#
Copyright#©#2015#@danolsen#

32.
What#is#Your#Value#Proposi/on?#
! Which#user#benefits#are#you#providing?#
! How#are#you#beOer#than#compe/tors?#
# Compe5tor'A' Compe5tor'B' You'
Must#Have#Benefit#1#
Performance#Benefit#1#
Performance#Benefit#2#
Performance#Benefit#3#
Delighter#Benefit#1#
Delighter#Benefit#2#
Copyright#©#2015#@danolsen#

33.
What#is#Your#Value#Proposi/on?#
! Which#user#benefits#are#you#providing?#
! How#are#you#beOer#than#compe/tors?#
# Compe5tor'A' Compe5tor'B' You'
Must#Have#Benefit#1# Y# Y#
Performance#Benefit#1# High# Low#
Performance#Benefit#2# Low# High#
Performance#Benefit#3# Med# Med#
Delighter#Benefit#1# Y# a#
Delighter#Benefit#2# a# a#
Copyright#©#2015#@danolsen#

34.
What#is#Your#Value#Proposi/on?#
! Which#user#benefits#are#you#providing?#
! How#are#you#beOer#than#compe/tors?#
# Compe5tor'A' Compe5tor'B' You'
Must#Have#Benefit#1# Y# Y# Y#
Performance#Benefit#1# High# Low# Med#
Performance#Benefit#2# Low# High# Low#
Performance#Benefit#3# Med# Med# High#
Delighter#Benefit#1# Y# a# a#
Delighter#Benefit#2# a# a# Y#
Copyright#©#2015#@danolsen#

35.
Group#Exercise:#Value#Proposi/on#
! Recall#our#discussion#on#Airbnb#user#needs#
! Who#are#Airbnb’s#compe/tors?#
! Think#about#how#Airbnb#meets#those#needs#
beOer#than#alterna/ve#solu/ons#
! What#are#Airbnb’s#differen/ators?#
Copyright#©#2015#@danolsen#

36.
The#Lean#Product#Process#
1. Determine#your#target#customer#
2. Iden/fy#underserved#customer#needs#
3. Define#your#value#proposi/on#
4. Specify#your#MVP#feature#set#
5. Create#your#MVP#prototype#
6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#

37.
What#is#an#MVP?#
Courtesy#of#Jussi#Pasanen#
See#Aaron#Walter’s#book#Designing'for'Emo-on' Copyright#©#2015#@danolsen#

38.
The#Lean#Product#Process#
1. Determine#your#target#customer#
2. Iden/fy#underserved#customer#needs#
3. Define#your#value#proposi/on#
4. Specify#your#MVP#feature#set#
5. Create#your#MVP#prototype#
6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#

39.
The#UX#Design#Iceberg#
Copyright#©#2015#@danolsen#
What'most'
people'see'
and'react'to'
What'good'
product'teams'
think'about'

40.
Geqng#Customer#Feedback#
Problem#Space#vs.#Solu/on#Space#
! Customers#CAN’T#ar/culate#problem#space#
! Customers#CAN#react#to#solu/on#space#
! That’s#why#you#need#something#tangible#to#
show#to#customers#to#get#good#feedback#
Copyright#©#2015#@danolsen#

41.
Product#Design#Ar/facts#
Copyright#©#2015#@danolsen#
Hand#
sketch#
Interac/vity#
Fidelity#
Interac/ve#
Prototype#
Sta/c#
Wireframe*#
Clickable#
Wireframe*#
Mockup#
#
Clickable#
Mockup**#
*#Balsamiq:#balsamiq.com#
**#InVision:#invisionapp.com#
Live#
Product#

42.
Itera/ve#Design#&#Test#Workflow#
Copyright#©#2015#@danolsen#
Hand#
sketches#
Interac/vity#
Fidelity#
Clickable#
Wireframes#
Clickable#
Mockups#
Live#
Product#
Test# Test#
Test#

43.
The#Lean#Product#Process#
1. Determine#your#target#customer#
2. Iden/fy#underserved#customer#needs#
3. Define#your#value#proposi/on#
4. Specify#your#MVP#feature#set#
5. Create#your#MVP#prototype#
6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#

44.
“Ramen”#User#Tes/ng#Session#
10#a#15#min:#Warm#Up#and#Discovery#
! Understand#user#needs,#priori/es#
! Learn#about#solu/ons#they#use,#likes#and#dislikes#
30#a#50#min:#User#Feedback#on#Prototype#
! Show#user#mockup/product#
! Be#as#nonadirected#as#possible:#like#you’re#not#there#
! Ask#ques/ons#to#gain#understanding#
5#a#10#min:#Wrap#up#
! Answer#any#ques/ons#or#issues#that#came#up#
! Point#out/explain#features#you#want#to#highlight#
! Ask#if#they#would#use#the#product#
Copyright#©#2015#@danolsen#

45.
Dos#&#Don’ts#of#User#Tes/ng#Sessions#
Do#
! Explain#to#the#user#
! Feedback#will#help#improve#the#product#
! Not#to#worry#about#hur/ng#your#feelings#
! Think#Aloud#Protocol #
! Try#to#be#a#fly#on#the#wall#
! Take#notes#and#review#them#aMerwards#for#takeaaways#
Don’t#
! Ask#leading#or#closeaended#ques/ons#
! Help user#or#explain#the#UI#(e.g.,# click#over#here )#
! Get#defensive#or#blame#the#user#
Copyright#©#2015#@danolsen#

46.
What#Are#You#Tes/ng#and#Learning?#
Problem#Space#
All#your#hypotheses#
Solu/on#Space#
User#reac/ons#
Feature#Set#
UX#Design# Messaging##
Copyright#©#2015#@danolsen#

47.
Itera/ng#Between#User#Tes/ng#Waves#
#Customer#Feedback#
Mockups#/#Code#
Copyright#©#2015#@danolsen#
Problem#Space#
All#your#hypotheses#
Solu/on#Space#
User#reac/ons#

48.
Problem'
Space'
Solu5on'
Space'
Copyright#©#2015#@danolsen#

49.
Persevere#or#Pivot?#
Increasing'
Product@Market'Fit'
Pivot'
Product@Market'Fit'='
Geqng#enough#data#to#
validate#you’re#climbing#up#
the#right#mountain#
Copyright#©#2015#@danolsen#

50.
The#Lean#Product#Process:#
Marke/ngReport.com#Case#Study#
Copyright#©#2015#@danolsen#

51.
Marke/ngReport.com#Case#Study#
! My#client#(CEO)#had#a#new#product#idea#
! Team:#me,#CEO,#VP#marke/ng,#UI#designer#
! Goals#
! See#if#business#opportunity#exists#
! Do#so#quickly#and#inexpensively#(no#coding)#
! Marke/ng#report would#let#consumers#
control#the#direct#mail#that#they#receive#
! Analogous#to#credit#report#
Copyright#©#2015#@danolsen#

52.
Mapping#Out#Customer#Benefits#
Reduce
Junk Mail
Find out what
they know
about you
Money
Saving
Offers
Compare
Yourself
to Others
Social
Networking
Marketing
Report
Marketing
Score
Marketing
Profile
Save
Trees
Marke/ng#Shield #
Concept#
Marke/ng#Saver #
Concept#
Copyright#©#2015#@danolsen#

53.
Copyright#©#2015#@danolsen#

54.
Recrui/ng#Target#Customers#
! Used#customer#research#firm#(panel)#
! Wrote#screener#to#iden/fy#target#customers#
! Work#fulla/me#
! Fit#for#Saver:#use#coupons,#Costco#membership#
! Fit#for#Shield:#use#paper#shredder,#block#caller#ID#
! Offered#$75#compensa/on#
! Scheduled#3#groups#of#2#or#3#people#for#90#min#
! Moderated#each#group#through#the#mockups#
Copyright#©#2015#@danolsen#

55.
Learning#from#First#Wave#of#User#Tests#
Reduce
Junk Mail
Find out what
they know
about you
Money
Saving
Offers
Compare
Yourself
to Others
Social
Networking
Marketing
Report
Marketing
Score
Marketing
Profile
Save
Trees
Legend
Strong appeal
Some appeal
Low appeal
Shield Concept Saver Concept
Copyright#©#2015#@danolsen#

56.
Copyright#©#2015#@danolsen#

57.
Summary#of##Case#Study#
! 4#weeks#to#validated#product#concept#
! 1#round#of#itera/on#
! Zero#coding#
! Reasonable#cost#
! Customers#willing#to#pay#$10/month#
! Trimmed#away#nonavaluable#pieces#
! You#can#achieve#similar#results#
Copyright#©#2015#@danolsen#

58.
The#Lean#Product#Process#
1. Determine#your#target#customer#
2. Iden/fy#underserved#customer#needs#
3. Define#your#value#proposi/on#
4. Specify#your#MVP#feature#set#
5. Create#your#MVP#prototype#
6. Test#your#MVP#with#customers#
Iterate:#
" HypothesizeaDesignaTestaLearn#loop#
" Improve#productamarket#fit#
Copyright#©#2015#@danolsen#

59.
Qualita've*vs.*Quan'ta've*Learning*
Qualita've* Quan'ta've*
Oprah& Spock&

60.
Ken&Norton&
Google&Ventures&
“10x%not%10%:%
Moonshot%
Product%Management”%
Dec%10th%
Josh&Elman&
Greylock&Partners&
“Let’s%talk%about%
Product%
Management”%
Jan%26th%

61.
Questions?
@danolsen#
olsensolu/ons.com#
slideshare.net/dan_o#
leanproductplaybook.com#
#
Book:#hOp:///ny.cc/LPP#
#