A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conference

Dan Olsen
Dan OlsenProduct Management Consultant, Trainer & Author at The Lean Product Playbook
A Playbook
For Achieving
Product-
Market Fit
DAN OLSEN
NOV 12, 2015
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#
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?'
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conference
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conference
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conference
That’s#Why#I#Wrote#a#HowaTo#Guide#
For#Achieving#ProductaMarket#Fit##
hOp:///ny.cc/LPP
What#is#
ProductaMarket#
Fit?#
The#ProductaMarket#Fit#Pyramid#
The#ProductaMarket#Fit#Pyramid#
The#ProductaMarket#Fit#Pyramid#
The#ProductaMarket#Fit#Pyramid#
The#Lean#Product#Process#
The#Lean#Product#Process#
The#Lean#Product#Process#
The#Lean#Product#Process#
The#Lean#Product#Process#
The#Lean#Product#Process#
The#Lean#Product#Process#
The#Lean#Product#Process#
Copyright#©#2015#@danolsen#
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#
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#
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#
#
#
!  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#
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#
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#
Group#Exercise:#Customer#Needs#
!  Think#about#Airbnb#
!  Focus#on#the#problem#space#
!  What#customer#needs#does#Airbnb#address?#
Copyright#©#2015#@danolsen#
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#
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#
Users#Rated#13#Key#Features#in#a#Survey#
Recommended#reading:#
What#Customers#Want #by#Anthony#Ulwick#
Great#
Copyright#©#2015#@danolsen#
Bad#
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#
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#
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#
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#
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#
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#
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#
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#
What#is#an#MVP?#
Courtesy#of#Jussi#Pasanen#
See#Aaron#Walter’s#book#Designing'for'Emo-on' Copyright#©#2015#@danolsen#
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#
The#UX#Design#Iceberg#
Copyright#©#2015#@danolsen#
What'most'
people'see'
and'react'to'
What'good'
product'teams'
think'about'
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#
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#
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conference
Itera/ve#Design#&#Test#Workflow#
Copyright#©#2015#@danolsen#
Hand#
sketches#
Interac/vity#
Fidelity#
Clickable#
Wireframes#
Clickable#
Mockups#
Live#
Product#
Test# Test#
Test#
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#
“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#
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#
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#
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#
Problem'
Space'
Solu5on'
Space'
Copyright#©#2015#@danolsen#
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#
The#Lean#Product#Process:#
Marke/ngReport.com#Case#Study#
Copyright#©#2015#@danolsen#
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#
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#
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conference
Copyright#©#2015#@danolsen#
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#
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#
Copyright#©#2015#@danolsen#
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#
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#
Qualita've*vs.*Quan'ta've*Learning*
Qualita've* Quan'ta've*
Oprah& Spock&
Ken&Norton&
Google&Ventures&
“10x%not%10%:%
Moonshot%
Product%Management”%
Dec%10th%
Josh&Elman&
Greylock&Partners&
“Let’s%talk%about%
Product%
Management”%
Jan%26th%
Questions?
@danolsen#
olsensolu/ons.com#
slideshare.net/dan_o#
leanproductplaybook.com#
#
Book:#hOp:///ny.cc/LPP#
#
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