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How to Create Products for Growth by Dan Olsen

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I gave this talk at Traction Conference in Vancouver on June 22, 2016.

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How to Create Products for Growth by Dan Olsen

  1. 1. How to Create Products for Growth DAN OLSEN JUNE 22, 2016
  2. 2. My Background Educa/on n  Engineering background n  Stanford MBA n  UX design and coding Experience n  Led Quicken Product Management at Intuit n  CEO & Cofounder, TechCrunch award winner YourVersion n  PM consultant: Box, Facebook, MicrosoM, Medallia n  Founder: Lean Product & Lean UX Meetup Silicon Valley TwiNer: @danolsen My slides: hNp://slideshare.net/dan_o Copyright © 2016 @danolsen
  3. 3. The 3 Phases of Your Product Copyright © 2016 @danolsen BEFORE Product-Market Fit AFTER Product-Market Fit BEFORE your product is live Phase 1 AFTER your product is live Phase 2 # of Customers Time 0 lots Phase 3
  4. 4. Quan/ta/ve vs. Qualita/ve Learning Qualita/ve Quan/ta/ve Oprah Spock
  5. 5. The 3 Phases of Your Product BEFORE Product-Market Fit AFTER Product-Market Fit Growth Mainly Quan/ta/ve BEFORE your product is live Phase 1 Test hypotheses, gain confidence before building Mainly Qualita/ve AFTER your product is live Phase 2 Improve product- market fit Qualita/ve & Quan/ta/ve Goal: Methods: Phase 3 What phase are you in?
  6. 6. The 3 Phases of Your Product BEFORE Product-Market Fit AFTER Product-Market Fit Growth Mainly Quan/ta/ve BEFORE your product is live Phase 1 Test hypotheses, gain confidence before building Mainly Qualita/ve AFTER your product is live Phase 2 Improve product- market fit Qualita/ve & Quan/ta/ve Goal: Methods: Phase 3 What phase are you in?
  7. 7. That’s Why I Wrote n  Book giveaway on TwiNer n  Tweet: include @danolsen n  Hashtags #leanstartup #prodmgmt #growth n  hNp:///ny.cc/LPP Copyright © 2016 @danolsen
  8. 8. What is Product-Market Fit?
  9. 9. The Product-Market Fit Pyramid
  10. 10. The Product-Market Fit Pyramid
  11. 11. The Product-Market Fit Pyramid
  12. 12. The Product-Market Fit Pyramid
  13. 13. The Lean Product Process
  14. 14. The Lean Product Process
  15. 15. The Lean Product Process
  16. 16. The Lean Product Process
  17. 17. The Lean Product Process
  18. 18. The Lean Product Process
  19. 19. The Lean Product Process
  20. 20. The Lean Product Process
  21. 21. Copyright © 2016 @danolsen
  22. 22. 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 © 2016 @danolsen
  23. 23. 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 High-level need Target Customer Detailed needs Ideal Product Soccer Mom Speed Demon
  24. 24. 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 © 2016 @danolsen
  25. 25. n  Russians: pencil n  NASA: space pen ($1 M R&D cost) Example n  Ability to write in space (zero gravity) Problem Space vs. Solu/on Space Problem Space n  A customer problem, need or benefit that the product should address n  A product requirement Solu/on Space n  A specific implementa/on to address the need or product requirement Copyright © 2016 @danolsen
  26. 26. 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 © 2016 @danolsen
  27. 27. 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 © 2016 @danolsen
  28. 28. Crea/ng Customer Value Copyright © 2016 @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
  29. 29. Crea/ng Customer Value Copyright © 2016 @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
  30. 30. Users Rated 13 Key Features in a Survey Recommended reading: “What Customers Want” by Anthony Ulwick Great Copyright © 2016 @danolsen Bad
  31. 31. Kano Model: User Needs & Sa/sfac/on User Sa/sfac/on User Dissa/sfac/on Performance (more is beNer) Delighter (wow) Need not met Need fully met Must Have Needs & features migrate over /me Copyright © 2016 @danolsen
  32. 32. 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 © 2016 @danolsen
  33. 33. What is Your Value Proposi/on? n  Which user benefits are you providing? n  How are you beNer than compe/tors? Must Have Benefit 1 Performance Benefit 1 Performance Benefit 2 Performance Benefit 3 Delighter Benefit 1 Delighter Benefit 2 Copyright © 2016 @danolsen
  34. 34. What is Your Value Proposi/on? n  Which user benefits are you providing? n  How are you beNer than compe/tors? Compe.tor A Compe.tor B You Must Have Benefit 1 Performance Benefit 1 Performance Benefit 2 Performance Benefit 3 Delighter Benefit 1 Delighter Benefit 2 Copyright © 2016 @danolsen
  35. 35. What is Your Value Proposi/on? n  Which user benefits are you providing? n  How are you beNer than compe/tors? Compe.tor A Compe.tor 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 - Delighter Benefit 2 - - Copyright © 2016 @danolsen
  36. 36. What is Your Value Proposi/on? n  Which user benefits are you providing? n  How are you beNer than compe/tors? Compe.tor A Compe.tor 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 - - Delighter Benefit 2 - - Y Copyright © 2016 @danolsen
  37. 37. 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 © 2016 @danolsen
  38. 38. What is an MVP? Courtesy of Jussi Pasanen See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen
  39. 39. What is an MVP? Courtesy of Jussi Pasanen See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen
  40. 40. What is an MVP? Courtesy of Jussi Pasanen See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen
  41. 41. What is an MVP? Courtesy of Jussi Pasanen See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen
  42. 42. 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 © 2016 @danolsen
  43. 43. The UX Design Iceberg Copyright © 2016 @danolsen What most people see and react to What good product teams think about
  44. 44. Itera/ve Design & Test Workflow Copyright © 2016 @danolsen Hand sketches Interac/vity Fidelity Clickable Wireframes* Clickable Mockups** Live Product Test Test Test * Balsamiq: balsamiq.com ** InVision: invisionapp.com
  45. 45. 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 © 2016 @danolsen
  46. 46. The Lean Product Process: Marke/ngReport.com Case Study Copyright © 2016 @danolsen
  47. 47. Marke/ngReport.com Case Study n  My client (CEO) had a new product idea n  Team: me, CEO, VP marke/ng, UI designer n  Goals n  See if business opportunity exists n  Do so quickly and inexpensively (no coding) n  “Marke/ng report” would let consumers control the direct mail that they receive n  Analogous to credit report Copyright © 2016 @danolsen
  48. 48. 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 © 2016 @danolsen
  49. 49. Copyright © 2016 @danolsen
  50. 50. 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 © 2016 @danolsen
  51. 51. Copyright © 2016 @danolsen
  52. 52. Summary of Case Study n  4 weeks to validated product concept n  1 round of itera/on n  Zero coding n  Reasonable cost n  Customers willing to pay $10/month n  Trimmed away non-valuable pieces n  You can achieve similar results Copyright © 2016 @danolsen
  53. 53. If you could only track 1 metric to measure your Product-Market Fit, which metric would it be? Copyright © 2016 Olsen Solu/ons
  54. 54. Reten/on Rate n  Reten/on rate tracks what % of your customers are s/ll ac/ve over /me ~80% never use app again Curve flattens or goes to zero
  55. 55. Cohort Analysis Copyright © 2016 Olsen Solu/ons
  56. 56. Improving Reten/on Rate Over Time= Increasing Product-Market Fit
  57. 57. Improving Reten/on Rate Over Time= Increasing Product-Market Fit
  58. 58. Improving Reten/on Rate Over Time= Increasing Product-Market Fit
  59. 59. The 3 Phases of Your Product Copyright © 2016 @danolsen BEFORE Product-Market Fit AFTER Product-Market Fit BEFORE your product is live Phase 1 AFTER your product is live Phase 2 # of Customers Time 0 lots Phase 3
  60. 60. 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: §  Hypothesize-Design-Test-Learn loop §  Improve product-market fit Copyright © 2016 @danolsen
  61. 61. Questions? @danolsen dan-olsen.com slideshare.net/dan_o meetup.com/lean-product Book: hNp:///ny.cc/LPP

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