The Lean Product Playbook by Dan Olsen

1. March 2015

2. Copyright © 2015 Olsen Solu7ons My Background n  Educa7on n  Engineering background n  Stanford MBA n  Web development and UX design n  Deep Product Management Experience n  Submarine design n  Led Quicken Product Management at Intuit n  Led Product Management at Friendster n  CEO & Cofounder of YourVersion, “Pandora for your news” n  PM consultant: Box, YouSendIt, Medallia, One Medical Slides at hTp://slideshare.net/dan_o

3. What is Product-‐Market Fit?

4. The Lean Product Process

5. The Lean Product Process 1. Determine your target customer 2. Iden7fy underserved customer needs 3. Deﬁne your value proposi7on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2015 Olsen Solu7ons

6. Transporta7on 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 Dis7nct Needs High-‐level need: Target Customer: Detailed needs: Ideal Product: Soccer Mom Speed Demon

8. n  Russians: pencil n  NASA: space pen ($1 M R&D cost) Example: n  Ability to write in space (zero gravity) Problem Space vs. Solu7on Space n  Problem Space n  A customer problem, need, or beneﬁt that the product should address n  A product requirement n  Solu7on Space n  A speciﬁc implementa7on to address the need or product requirement Copyright © 2015 Olsen Solu7ons

9. Problem Space vs. Solu7on Space: Product Level Problem Space (user beneﬁt) Solu7on Space (product) TurboTax TaxCut Pen and paper Prepare my taxes File my taxes Check my taxes Maximize deductions Reduce audit risk Copyright © 2015 Olsen Solu7ons

10. Problem vs. Solu7on Space: Feature Level Problem Space Solu7on Space 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 Copyright © 2015 Olsen Solu7ons

11. Priori7zing Customer Needs: Importance vs. Sa7sfac7on Importance of User Need User Sa7sfac7on with Current Alterna7ves Compe77ve Market Opportunity Low High Low High Not Worth Going Aher Copyright © 2015 Olsen Solu7ons

12. Kano Model: User Needs & Sa7sfac7on User Sa7sfac7on User Dissa7sfac7on Performance (more is beTer) Delighter (wow) Need not met Need fully met Must Have Needs & features migrate over 7me Copyright © 2015 Olsen Solu7ons

15. What is Your Value Proposi7on? n  Which user benefits are you providing? n  How are you beTer than compe7tors? 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 © 2015 Olsen Solu7ons

18. Breaking Features Down into Chunks Copyright © 2015 Olsen Solu7ons Must Have 1 Performance 1 Delighter 1 Delighter 2 Must Have 2 Performance 2 Performance 3 Benefits: M1A P1A D1A D2AM2A P2A P3A Features: P1B D1B D2BP2B P3B P2CP1C P1D D1C

19. Product Roadmap: Features by Version or Time Copyright © 2015 Olsen Solu7ons Must Have Benefit 1 Performance Benefit 1 Performance Benefit 3 Delighter Benefit 1 Performance Benefit 2 Must Have Benefit 2 Delighter Benefit 2 M1A Time v1 v1.5 v2 v2.5 M2A P1A P1B P2A P2B P3A D1A D1B D2A MVP candidate

22. Gelng Customer Feedback: Problem Space vs. Solu7on Space n  Customers CAN’T ar7culate problem space n  Customers CAN react to solu7on space n  That’s why you need something tangible to show to customers to get good feedback Copyright © 2015 Olsen Solu7ons

23. Design Ar7facts: Interac7vity vs. Fidelity Copyright © 2015 Olsen Solu7ons Hand sketch Interac7vity Fidelity Interac7ve Prototype Sta7c Wireframe* Clickable Wireframe* Mockup Clickable Mockup** * Balsamiq: balsamiq.com ** InVision: invisionapp.com

25. Why You Should Wireframe n  In case you don’t have UX designer (ohen) n  To clarify and reﬁne your thinking: n Informa7on Architecture, layout, naviga7on n  To communicate your ideas to others n  Modern tools make it easy and fast Copyright © 2015 Olsen Solu7ons

27. What Are You Going to Get Feedback & Learnings About? Problem Space (your mental model) Solu7on Space (what users can react to) Customer Understanding (needs & preferences) Feature Set UI Design Messaging Copyright © 2015 Olsen Solu7ons

28. “Ramen” User Feedback for Startups n  Anyone can do it! n  Ingredients: n Solu7on-‐space product/mockup to test n 1 customer (with laptop if tes7ng code) n 1 desk n 1 person to conduct the session n Pen and paper n Op7onal note-‐taker and observers Copyright © 2013 Olsen Solu7ons

29. Typical Format for User Tes7ng Session n  5 -‐ 10 min: Ask ques7ons to understand user needs and solu7ons they currently use n  30 -‐ 50 min: User feedback n  Show user product/mockup n  Non-‐directed as much as possible n  When necessary, direct user to aTempt to perform a speciﬁc task n  5 -‐ 10 min: Wrap-‐up n  Answer any user ques7ons that came up n  Point out/explain features you want to highlight n  Ask them if they would use the product Copyright © 2015 Olsen Solu7ons

30. Dos & Don’ts of User Tes7ng Sessions n  Do n  Explain to the user: n  Their feedback will help improve the product n  Not to worry about hur7ng your feelings n  “Think Aloud Protocol” n  Ask user to aTempt the task, then be a ﬂy on the wall n  Ask non-‐leading, open-‐ended ques7ons n  Take notes and review them aherwards for take-‐aways n  Don’t n  Ask leading or close-‐ended ques7ons n  “Help” the user or explain the UI (e.g., “click over here”) n  Respond to user frustra7on or ques7ons (un7l test is over) n  Get defensive n  Blame the user Copyright © 2015 Olsen Solu7ons

32. Itera7ng Your Product Vector Based on User Feedback in Solu7on Space Problem Space (your mental model) Solu7on Space (what users can react to) Customer Feedback Mockups / Code Copyright © 2015 Olsen Solu7ons

35. Product-‐Market Fit Case Study: Marke7ngReport.com n  My consul7ng client (CEO) had an idea for a new product n  Team: me, CEO, head of marke7ng, UI design consultant n  Goal: n Validate product-‐market ﬁt quickly, cheaply without wri7ng a single line of code n Determine if there was a business opportunity here Copyright © 2015 Olsen Solu7ons

36. Product-‐Market Fit Case Study: Developing Product Concept n  Product Concept was “marke7ng report” that let consumers control the direct mail that they receive n  Concept was fuzzy with various components, so I broke it into 2 different “flavors”: #1 “Marke7ng Shield”: Service to reduce/stop junk mail #2 “Marke7ng Saver”: Opt in & receive money-‐saving offers Copyright © 2015 Olsen Solu7ons

37. Clustering Poten7al User Beneﬁts to Create Product Concepts 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 “Shield” Concept “Saver” Concept Copyright © 2015 Olsen Solu7ons

40. n  Telephone recruit of prospec7ve customers n  Wrote phone-‐screen ques7onnaire to create rough target customer segmenta7on n  Wanted users who work full-‐7me & use internet n  Fit for opt-‐in oﬀers: use coupons, Costco membership n  Fit for an7-‐junk mail: use paper shredder, block caller ID n  Paid each person $75 n  Scheduled 3 groups of 2 or 3 people to discuss each product concept for 90 minutes n  Moderated each group through the paper mockups to hear their feedback Product-‐Market Fit Case Study: Recrui7ng People Copyright © 2015 Olsen Solu7ons

41. Product-‐Market Fit Case Study: Findings on Concepts &User 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 Legend Strong appeal Some appeal Low appeal “Shield” Concept “Saver” Concept Copyright © 2015 Olsen Solu7ons

42. Product-‐Market Fit Case Study: Learnings from Research n  Learned that “Shield” (an7-‐junk mail) concept was stronger than “Saver” n  People didn’t like many of the “Saver” concept components n  Learned users’ concerns / ques7ons about “Shield” concept n  Reﬁned “Shield” concept: n  Removed irrelevant components n  Improved messaging to address user concerns / ques7ons n  Validated revised “Shield” concept with quick 2nd round of tests n  No customer concerns n  Clear willingness to pay Copyright © 2015 Olsen Solu7ons

44. Product-‐Market Fit Case Study: Summary n  4 weeks from 1st mee7ng to validated product concept with zero coding n  Reasonable cost n  1 round of itera7on on product concept n  Iden7ﬁed compelling concept that users are willing to pay $10/month for n  Trimmed away non-‐valuable pieces n  You can achieve similar results Copyright © 2015 Olsen Solu7ons

45. The Lean Product Process 1.  Determine your target customer 2.  Iden7fy underserved customer needs 3.  Deﬁne your value proposi7on 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 © 2015 Olsen Solu7ons

46. Laura Klein: April 14 in Palo Alto Author of UX for Lean Startups How to use Qualita&ve & Quan&ta&ve Research

48. Questions? @danolsen olsensolu7ons.com slideshare.net/dan_o meetup.com/lean-‐product Book: hTp://7ny.cc/LPP

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