lean discovery & development @ autoscout24

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www.autoscout24.de Lean Discovery & Development @ AutoScout24 Bonn September, 17th, 2013 www.autoscout24.de

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Lean discovery and development in daily use. See how we live lean development to reduce risks, get feedback fast and build the right products for the right users. This is not a theoretic essay but shows how to get theory to real life.

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Page 1: Lean discovery & development @ AutoScout24

www.autoscout24.de

Lean Discovery &

Development @ AutoScout24

Bonn

September,

17th, 2013

www.autoscout24.de

Page 2: Lean discovery & development @ AutoScout24

Agenda

1. Short introduction of AutoScout24 and myself

2. The history of product development at AutoScout24

3. How we changed product development

4. Conclusion

Page 3: Lean discovery & development @ AutoScout24

Just some words…Introducing AutoScout24 andmyself

Page 4: Lean discovery & development @ AutoScout24

AutoScout24 – IT IS ALL ABOUT CARS.

More than 2 million new and used cars

17.1 million visitors a year in Germany (WNK, ACTA 2012)

The largest online car marketplace Europe-wide

Over 100,000 used commercial vehicles

More than 10 million people Europe-wide use

AutoScout24 every month

More than 300 million virtual vehicle

inspections per month in Europe

More than 40,000 dealer clients Europe-

wide

More than 100,000 motorcycles

Page 5: Lean discovery & development @ AutoScout24

AutoScout24 - Europe

RUS

S

PL

NL

DB

F CH A

HR RO

BG

UA

I

TR

E

CZ

Involved in the markets in 18 countries,

AutoScout24 is the largest online car

marketplace Europe-wide.

AutoScout24 has more than

360 employees throughout

Europe.

Page 6: Lean discovery & development @ AutoScout24

AutoScout24 Business Model There are two types of customers

Page 7: Lean discovery & development @ AutoScout24

Some words about myself

Katrin Grothues

�Born in Marl / Ruhrgebiet

�Since 01/2012: Product Manager Vehicle Market Dealer Products @ AutoScout24

�Before: 3.5 years strategie and projectmanagement at big e-commerce companies

�Education: Cultural Science (M.A.), university of Lüneburg

Page 8: Lean discovery & development @ AutoScout24

Now get to the pointLean Discovery & Lean Development @ AutoScout24

Page 9: Lean discovery & development @ AutoScout24

Back then… Product development at AutoScout24The „discovery“ phase

Ok, when

you say

so…

We gonna build

the super tool.

That‘s fancy and

I just know it‘ll

work!

Page 10: Lean discovery & development @ AutoScout24

Back then… Product development at AutoScout24 The build phase

1st month… 2nd month… 3rd month…

Ready!

Page 11: Lean discovery & development @ AutoScout24

Back then… Product development at AutoScout24And finally – get the product to the customer

? Klick

Page 12: Lean discovery & development @ AutoScout24

So, where‘s the problem?

Stakeholder-centric development lacks user involvement.

Market research looks for averages.

Market research asks users what they want and does not observe them.

It leads to building products, users do not need or cannot use.

“If I had asked people what they wanted, they would have said faster horses.”

Henry Ford

Page 13: Lean discovery & development @ AutoScout24

Discover

Build

Measure

Learn

Now: Customer Value Driven Development

Observe

Observe

Observe

Page 14: Lean discovery & development @ AutoScout24

Make it better!

Focus on the user throughout all the steps of the product development.

Observe, don‘t ask.

Build small packages and release them fast in order to learn fast.

Page 15: Lean discovery & development @ AutoScout24

That‘s theory! What aboutreal life?!A practical example

Page 16: Lean discovery & development @ AutoScout24

Here you have it – a real life example

Bookmarks

Dealer area

Page 17: Lean discovery & development @ AutoScout24

The AutoScout24 Value Canvas

Customer Quotation Customer Qualification

Customer QuantificationCustomer Insight

Customer Value Business Value

Key Metrics Key MetricsUptake Potential

Page 18: Lean discovery & development @ AutoScout24

The classical Business Model Canvas

Page 19: Lean discovery & development @ AutoScout24

Who‘s my customer?

Great, now I see the number of bookmarks for my cars. But what can I do

with this information? I do not know the users.

Visiting dealers Field sales Customer service Workshops …

Start with 1 customer! Observe, don‘t ask!

Page 20: Lean discovery & development @ AutoScout24

What‘s his problem?

The dealer knows, there are prospects – hot leads - but he cannot directly

address them. He has a special offer to convince them to buy, just as he

does when a prospect visits the dealership.

Focus on the customer‘s 1 core problem!

Page 21: Lean discovery & development @ AutoScout24

How many customers have this problem?

Identify more real customers with a similar problem!

Observe more!

Page 22: Lean discovery & development @ AutoScout24

Is the solution successful?

Customer Value

• Increased Conversion on bookmarks in terms of visits

vs. contact mails

� + x% conversion rate after 2 months

Business Value

• Dealers‘ usage of product

� X special offers after 4 weeks

� Y special offers after 2 months

Define actionable key metrics!

Page 23: Lean discovery & development @ AutoScout24

What is the solution?

Show user

addresses!

E-Mail

system!

User-

admin!

Customer

Value

Solution

Detailpage!

Manage

Stock!Expiration

date!

Interfaces!

Multiple

creation!

Text

templates!

Contact form!

Statistics!

Bookmarks

!

Create!

Edit!

Delete!

Free

text!

Page 24: Lean discovery & development @ AutoScout24

Build: Implementing the solution

Build small packages – Release fast – Learn fast

Story Designs Tracking

Page 25: Lean discovery & development @ AutoScout24

The first solution on the bookmarks

Page 26: Lean discovery & development @ AutoScout24

Measure: Data grabbing

User has a favorite

list with special

offer.

User opens

special offer.

User contacts

dealer

Dealer inserts a

special offer.

C

o

n

v

e

r

s

i

o

n

F

u

n

n

e

l

Page 27: Lean discovery & development @ AutoScout24

Learn: We have the data – what next?

Small open rate Small contact rate

Testing with users in lab Telephone interviews with dealers

Special offer? That is

promotion, I ignore

promotions

automatically.

Special offer?

That‘s great! Prospects

print it and come to my

dealer ship right away!

?

Page 28: Lean discovery & development @ AutoScout24

Learn: Adjusting the solution step by step!

Different design drafts – non

promotional

Fast tests of these drafts with

colleagues inhouse

A/B test with Optimizely on Live

Implementing the winner version

Release and tracking on Live

Print button on special offer

Little open rate Little contact rate

Page 29: Lean discovery & development @ AutoScout24

The result: an optimized special offer

Page 30: Lean discovery & development @ AutoScout24

Closing notes and take-aways

Page 31: Lean discovery & development @ AutoScout24

Get to the right product faster

t

Specification Build Release

Level of uncertainty

Order Product

Problem Solution

Back then

Today

Level of uncertainty

Page 32: Lean discovery & development @ AutoScout24

Make it better!

Problems

Stakeholder-centric development lacks user involvement.

Market research looks for averages.

Market research asks users what they want and does not observe them.

It leads to building products, users do not need or cannot use.

Improvements

Focus on the user throughout all the steps of the product development.

Observe, don‘t ask.

Build small packages and release them fast in order to learn fast.

Page 33: Lean discovery & development @ AutoScout24

www.autoscout24.de

www.autoscout24.de

Thank you for your

attention!

Kontakt:

AutoScout24 GmbH

Dingolfinger Straße 1-15

81673 München

Katrin Grothues

Fon +49 89 444 56-1159

Fax +49 89 444 56 19-1159

[email protected]