the lean product playbook by dan olsen

March 2015

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

http://www.slideshare.net/dan_o/presentations

What is Product-‐Market Fit?

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


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

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


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


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


Priori7zing Customer Needs: Importance vs. Sa7sfac7on

Impo

rtance of U

ser N

eed

User Sa7sfac7on with Current Alterna7ves

Compe77veMarket Opportunity

Low High

Low

High

Not Worth Going Aher


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



Importance vs. Sa7sfac7on Ask Users to Rate for Each Feature

Recommended reading: “What Customers Want” by Anthony Ulwick

Bad

Great

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


What is an MVP?

Courtesy of Jussi Pasanen See Aaaron Walter’s book Designing for Emo-on Copyright © 2015 Olsen Solu7ons

Breaking Features Down into Chunks


Must Have 1

Performance 1

Delighter 1

Delighter 2

Must Have 2

Performance 2

Performance 3

Benefits:

M1A P1A D1A D2A M2A P2A P3A

Features:

P1B D1B D2B P2B P3B

P2C P1C

P1D

D1C

Product Roadmap: Features by Version or Time


Must Have Benefit 1

Performance Benefit 1


Delighter Benefit 1


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

The UX Design Iceberg


What most people see and react to

What good product people think about

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


Design Ar7facts: Interac7vity vs. Fidelity


Hand sketch

Interac7vity

Fidelity

Interac7ve Prototype

Sta7c Wireframe*

Clickable Wireframe*

Mockup

Clickable Mockup**

* Balsamiq: balsamiq.com ** InVision: invisionapp.com

Design Tools: Fidelity vs. Effort


Hand sketch D

esig

n Fi

delit

y

Effort to Create Artifact

Sketch

Balsamiq 1

2

3

Designers

All Product People

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


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


“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


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


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


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


Problem Space

Solu7on Space



Case Study on Product-‐Market Fit: Marke7ngReport.com

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


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


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


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


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


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


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



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


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

http://www.meetup.com/lean-product/


The Lean Product Playbook

n Published by Wiley n Comes out May 26th n Hardback & ebook n Available for preorder on Amazon: hTp://7ny.cc/LPP

http://tiny.cc/LPP

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

http://tiny.cc/LPP

http://www.meetup.com/lean-product/

http://www.slideshare.net/dan_o/presentations

http://olsensolutions.com

https://twitter.com/danolsen

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