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A Playbook
For Achieving
Product-
Market Fit
DAN OLSEN
NOV 12, 2015
My	
  Background	
  
Educa/on	
  
n  Engineering	
  background	
  
n  Stanford	
  MBA	
  
n  UX	
  design,	
  web	
  and	
  mobile	
  coding	
  
	
  
Experience	
  
n  Led	
  Quicken	
  Product	
  Management	
  at	
  Intuit	
  
n  Led	
  Product	
  Management	
  at	
  Friendster	
  
n  CEO	
  &	
  Cofounder,	
  TechCrunch	
  award	
  winner	
  YourVersion	
  
n  Product	
  consultant:	
  Facebook,	
  Box,	
  MicrosoM	
  
n  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?	
  
n  Ar/culate	
  hypotheses	
  
n  Iden/fy	
  fastest	
  way	
  to	
  test	
  
n  Keep	
  scope	
  small:	
  
minimum	
  viable	
  product	
  (MVP)	
  
n  Test	
  with	
  customers	
  
n  Learn	
  and	
  iterate	
  
n  Achieve	
  product-­‐market	
  fit	
  
Copyright	
  ©	
  2015	
  @danolsen	
  
Sounds	
  easy,	
  right?	
  
That’s	
  Why	
  I	
  Wrote	
  a	
  How-­‐To	
  Guide	
  
For	
  Achieving	
  Product-­‐Market	
  Fit	
  	
  
hOp:///ny.cc/LPP
What	
  is	
  
Product-­‐Market	
  
Fit?	
  
The	
  Product-­‐Market	
  Fit	
  Pyramid	
  
The	
  Product-­‐Market	
  Fit	
  Pyramid	
  
The	
  Product-­‐Market	
  Fit	
  Pyramid	
  
The	
  Product-­‐Market	
  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	
  
High-­‐level	
  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	
  
 
	
  
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	
  ©	
  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	
  
n  Think	
  about	
  Airbnb	
  
n  Focus	
  on	
  the	
  problem	
  space	
  
n  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?	
  
n  Which	
  user	
  benefits	
  are	
  you	
  providing?	
  
n  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?	
  
n  Which	
  user	
  benefits	
  are	
  you	
  providing?	
  
n  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?	
  
n  Which	
  user	
  benefits	
  are	
  you	
  providing?	
  
n  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	
   -­‐	
  
Delighter	
  Benefit	
  2	
   -­‐	
   -­‐	
  
Copyright	
  ©	
  2015	
  @danolsen	
  
What	
  is	
  Your	
  Value	
  Proposi/on?	
  
n  Which	
  user	
  benefits	
  are	
  you	
  providing?	
  
n  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	
   -­‐	
   -­‐	
  
Delighter	
  Benefit	
  2	
   -­‐	
   -­‐	
   Y	
  
Copyright	
  ©	
  2015	
  @danolsen	
  
Group	
  Exercise:	
  Value	
  Proposi/on	
  
n  Recall	
  our	
  discussion	
  on	
  Airbnb	
  user	
  needs	
  
n  Who	
  are	
  Airbnb’s	
  compe/tors?	
  
n  Think	
  about	
  how	
  Airbnb	
  meets	
  those	
  needs	
  
beOer	
  than	
  alterna/ve	
  solu/ons	
  
n  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	
  
n  Customers	
  CAN’T	
  ar/culate	
  problem	
  space	
  
n  Customers	
  CAN	
  react	
  to	
  solu/on	
  space	
  
n  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	
  
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	
  -­‐	
  15	
  min:	
  Warm	
  Up	
  and	
  Discovery	
  
n  Understand	
  user	
  needs,	
  priori/es	
  
n  Learn	
  about	
  solu/ons	
  they	
  use,	
  likes	
  and	
  dislikes	
  
30	
  -­‐	
  50	
  min:	
  User	
  Feedback	
  on	
  Prototype	
  
n  Show	
  user	
  mockup/product	
  
n  Be	
  as	
  non-­‐directed	
  as	
  possible:	
  like	
  you’re	
  not	
  there	
  
n  Ask	
  ques/ons	
  to	
  gain	
  understanding	
  
5	
  -­‐	
  10	
  min:	
  Wrap	
  up	
  
n  Answer	
  any	
  ques/ons	
  or	
  issues	
  that	
  came	
  up	
  
n  Point	
  out/explain	
  features	
  you	
  want	
  to	
  highlight	
  
n  Ask	
  if	
  they	
  would	
  use	
  the	
  product	
  
Copyright	
  ©	
  2015	
  @danolsen	
  
Dos	
  &	
  Don’ts	
  of	
  User	
  Tes/ng	
  Sessions	
  
Do	
  
n  Explain	
  to	
  the	
  user	
  
n  Feedback	
  will	
  help	
  improve	
  the	
  product	
  
n  Not	
  to	
  worry	
  about	
  hur/ng	
  your	
  feelings	
  
n  “Think	
  Aloud	
  Protocol”	
  
n  Try	
  to	
  be	
  a	
  fly	
  on	
  the	
  wall	
  
n  Take	
  notes	
  and	
  review	
  them	
  aMerwards	
  for	
  take-­‐aways	
  
Don’t	
  
n  Ask	
  leading	
  or	
  close-­‐ended	
  ques/ons	
  
n  “Help” user	
  or	
  explain	
  the	
  UI	
  (e.g.,	
  “click	
  over	
  here”)	
  
n  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	
  
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	
  ©	
  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	
  
Copyright	
  ©	
  2015	
  @danolsen	
  
Recrui/ng	
  Target	
  Customers	
  
n  Used	
  customer	
  research	
  firm	
  (panel)	
  
n  Wrote	
  screener	
  to	
  iden/fy	
  target	
  customers	
  
n  Work	
  full-­‐/me	
  
n  Fit	
  for	
  Saver:	
  use	
  coupons,	
  Costco	
  membership	
  
n  Fit	
  for	
  Shield:	
  use	
  paper	
  shredder,	
  block	
  caller	
  ID	
  
n  Offered	
  $75	
  compensa/on	
  
n  Scheduled	
  3	
  groups	
  of	
  2	
  or	
  3	
  people	
  for	
  90	
  min	
  
n  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	
  
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	
  ©	
  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:	
  
§  Hypothesize-­‐Design-­‐Test-­‐Learn	
  loop	
  
§  Improve	
  product-­‐market	
  fit	
  
Copyright	
  ©	
  2015	
  @danolsen	
  
Questions?
@danolsen	
  
olsensolu/ons.com	
  
slideshare.net/dan_o	
  
leanproductplaybook.com	
  
	
  
Book:	
  hOp:///ny.cc/LPP	
  
	
  

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A Playbook for Achieving Product-Market Fit

  • 1. A Playbook For Achieving Product- Market Fit DAN OLSEN NOV 12, 2015
  • 2. My  Background   Educa/on   n  Engineering  background   n  Stanford  MBA   n  UX  design,  web  and  mobile  coding     Experience   n  Led  Quicken  Product  Management  at  Intuit   n  Led  Product  Management  at  Friendster   n  CEO  &  Cofounder,  TechCrunch  award  winner  YourVersion   n  Product  consultant:  Facebook,  Box,  MicrosoM   n  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?   n  Ar/culate  hypotheses   n  Iden/fy  fastest  way  to  test   n  Keep  scope  small:   minimum  viable  product  (MVP)   n  Test  with  customers   n  Learn  and  iterate   n  Achieve  product-­‐market  fit   Copyright  ©  2015  @danolsen   Sounds  easy,  right?  
  • 4.
  • 5.
  • 6.
  • 7. That’s  Why  I  Wrote  a  How-­‐To  Guide   For  Achieving  Product-­‐Market  Fit     hOp:///ny.cc/LPP
  • 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. The  Lean  Product  Process  
  • 19. The  Lean  Product  Process  
  • 20. The  Lean  Product  Process  
  • 21. Copyright  ©  2015  @danolsen  
  • 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  ©  2015  @danolsen  
  • 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. 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  
  • 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  ©  2015  @danolsen  
  • 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  ©  2015  @danolsen  
  • 27. 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  
  • 28. Group  Exercise:  Customer  Needs   n  Think  about  Airbnb   n  Focus  on  the  problem  space   n  What  customer  needs  does  Airbnb  address?   Copyright  ©  2015  @danolsen  
  • 29. 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  
  • 30. 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  
  • 31. Users  Rated  13  Key  Features  in  a  Survey   Recommended  reading:   “What  Customers  Want”  by  Anthony  Ulwick   Great   Copyright  ©  2015  @danolsen   Bad  
  • 32. 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  
  • 33. 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  
  • 34. What  is  Your  Value  Proposi/on?   n  Which  user  benefits  are  you  providing?   n  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  
  • 35. What  is  Your  Value  Proposi/on?   n  Which  user  benefits  are  you  providing?   n  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  
  • 36. What  is  Your  Value  Proposi/on?   n  Which  user  benefits  are  you  providing?   n  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   -­‐   Delighter  Benefit  2   -­‐   -­‐   Copyright  ©  2015  @danolsen  
  • 37. What  is  Your  Value  Proposi/on?   n  Which  user  benefits  are  you  providing?   n  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   -­‐   -­‐   Delighter  Benefit  2   -­‐   -­‐   Y   Copyright  ©  2015  @danolsen  
  • 38. Group  Exercise:  Value  Proposi/on   n  Recall  our  discussion  on  Airbnb  user  needs   n  Who  are  Airbnb’s  compe/tors?   n  Think  about  how  Airbnb  meets  those  needs   beOer  than  alterna/ve  solu/ons   n  What  are  Airbnb’s  differen/ators?   Copyright  ©  2015  @danolsen  
  • 39. 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  
  • 40. What  is  an  MVP?   Courtesy  of  Jussi  Pasanen   See  Aaron  Walter’s  book  Designing  for  Emo-on   Copyright  ©  2015  @danolsen  
  • 41. 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  
  • 42. The  UX  Design  Iceberg   Copyright  ©  2015  @danolsen   What  most   people  see   and  react  to   What  good   product  teams   think  about  
  • 43. Geqng  Customer  Feedback   Problem  Space  vs.  Solu/on  Space   n  Customers  CAN’T  ar/culate  problem  space   n  Customers  CAN  react  to  solu/on  space   n  That’s  why  you  need  something  tangible  to   show  to  customers  to  get  good  feedback   Copyright  ©  2015  @danolsen  
  • 44. 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  
  • 45.
  • 46. Itera/ve  Design  &  Test  Workflow   Copyright  ©  2015  @danolsen   Hand   sketches   Interac/vity   Fidelity   Clickable   Wireframes   Clickable   Mockups   Live   Product   Test   Test   Test  
  • 47. 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  
  • 48. “Ramen”  User  Tes/ng  Session   10  -­‐  15  min:  Warm  Up  and  Discovery   n  Understand  user  needs,  priori/es   n  Learn  about  solu/ons  they  use,  likes  and  dislikes   30  -­‐  50  min:  User  Feedback  on  Prototype   n  Show  user  mockup/product   n  Be  as  non-­‐directed  as  possible:  like  you’re  not  there   n  Ask  ques/ons  to  gain  understanding   5  -­‐  10  min:  Wrap  up   n  Answer  any  ques/ons  or  issues  that  came  up   n  Point  out/explain  features  you  want  to  highlight   n  Ask  if  they  would  use  the  product   Copyright  ©  2015  @danolsen  
  • 49. Dos  &  Don’ts  of  User  Tes/ng  Sessions   Do   n  Explain  to  the  user   n  Feedback  will  help  improve  the  product   n  Not  to  worry  about  hur/ng  your  feelings   n  “Think  Aloud  Protocol”   n  Try  to  be  a  fly  on  the  wall   n  Take  notes  and  review  them  aMerwards  for  take-­‐aways   Don’t   n  Ask  leading  or  close-­‐ended  ques/ons   n  “Help” user  or  explain  the  UI  (e.g.,  “click  over  here”)   n  Get  defensive  or  blame  the  user   Copyright  ©  2015  @danolsen  
  • 50. 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  
  • 51. 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  
  • 52. Problem   Space   Solu5on   Space   Copyright  ©  2015  @danolsen  
  • 53. 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  
  • 54. The  Lean  Product  Process:   Marke/ngReport.com  Case  Study   Copyright  ©  2015  @danolsen  
  • 55. 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  ©  2015  @danolsen  
  • 56. 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  
  • 57.
  • 58. Copyright  ©  2015  @danolsen  
  • 59. Recrui/ng  Target  Customers   n  Used  customer  research  firm  (panel)   n  Wrote  screener  to  iden/fy  target  customers   n  Work  full-­‐/me   n  Fit  for  Saver:  use  coupons,  Costco  membership   n  Fit  for  Shield:  use  paper  shredder,  block  caller  ID   n  Offered  $75  compensa/on   n  Scheduled  3  groups  of  2  or  3  people  for  90  min   n  Moderated  each  group  through  the  mockups   Copyright  ©  2015  @danolsen  
  • 60. 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  
  • 61. Copyright  ©  2015  @danolsen  
  • 62. 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  ©  2015  @danolsen  
  • 63. 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  ©  2015  @danolsen  
  • 64. Questions? @danolsen   olsensolu/ons.com   slideshare.net/dan_o   leanproductplaybook.com     Book:  hOp:///ny.cc/LPP