This document provides a summary of lessons for growing better products faster. It discusses (1) running experiments everywhere and iterating rapidly to find product-market fit, (2) using a positioning statement to frame the product and target market, and (3) building a frictionless product through a focus on user experience and page load times. It also covers (4) using analytics to identify the most important metrics and run experiments to optimize the product, and (5) how sales and funding are connected through building a revenue model. The overall message is that companies need to embrace experimentation, iteration, and a data-driven approach to innovation in order to adapt and survive in a changing market.

1. @jeroentjepkema
eCommerce Live, 25 May 2016
Grow Better Products, Faster

3. Slides: bit.ly/MW-ECL16

4. Survival of the fittest

5. It is not the strongest of the species that
survives, nor the most intelligent that
survives.
It is the one that is most adaptable to change to
their environment.
- Charles Darwin

6. The Innovator’s Dilemma

7. YOU ARE
HERE

8. YOU ARE
HERE
LOCAL
MAXIMUM
OPTIMIZATION
OF CURRENT
METRICS/
CUSTOMERS

9. GLOBAL
MAXIMUM
YOU ARE
HERE
INNOVATION
=
SURVIVAL

10. EVERYBODY HATES
GOING DOWNHILL
YOU ARE
HERE
GLOBAL
MAXIMUM
INNOVATION
=
SURVIVAL

11. It’s difficult to break patterns when
market needs are driven by
feedback from the
“best” current customer

12. Unfortunately, most companies die
because they fail to listen and adopt
to new business models fast...

13. Another way to look at it

14. Don’t sell what you can make. Make what you
can sell.
Kevin Costner is a lousy entrepreneur.

15. It’s no longer about if you can build it,
it’s about if anyone will care (for your result)

16. The Innovation Dilemma
the Kodak moment

21. The problem is framing
The problem is framing...

22. a.k.a. founders blindness

23. Why is this important?

24. Consumers are in control,
we need to be creative to
grow, acquire new users and
retain them...

25. “”Zero moment of Truth:
That moment when you grab your laptop, mobile
phone or other device and start learning about a
product/service you’re thinking about trying.
It’s a moment where consumers make choices that
affect the success and failure of nearly every brand
in the world...

26. Booking a holiday, the start of an emotional roller coaster...

27. ShareOrientation Search Selection Booking Planning Departure Holiday Arrival Share
Experience
Booking a holiday, the start of an emotional roller coaster...
This is where the
next trip starts
+
-

28. How to find your next business idea?

29. How to find your next business idea?
Start with the customer journey

30. Consider your Monday morning routine?
Wake up What happens here?
First
coffee
break

31. 5 lessons to
Grow Better Products, Faster

32. Lesson 1:
Experiments everywhere...

33. The core of lean is iteration...

34. Data Ideas
Product
Measure
Learn
Build
Lean = Iteration

35. The faster you can iterate, the
faster you can find the right product
& market...

36. Data Ideas
Product
Measure
Learn
Build
1 iteration = 1 Experiment
Rapid MVP experiment framework

37. Data Ideas
Product
Measure
Learn
Build
1 iteration = 1 Experiment
Rapid MVP experiment framework
Experiment Backlog
Be Creative
Teamwork
Customer Validation
Data Driven
Positioning Framework

38. Data Ideas
Product
Measure
Learn
Build
1 iteration = 1 Experiment
Rapid MVP experiment framework
Experiment Backlog
Be Creative
Teamwork
Customer Validation
Data Driven
Positioning Framework
Product
Best Customer
Core Values
Customer Care
On Boarding
Channel activation
Success? Implement
into core product

39. Data Ideas
Product
Measure
Learn
Build
1 iteration = 1 Experiment
Rapid MVP experiment framework
Experiment Backlog
Be Creative
Teamwork
Customer Validation
Data Driven
Positioning Framework
Product
Best Customer
Core Values
Customer Care
On Boarding
Channel activation
Success? Implement
into core product
Failure? Store data,
rinse & repeat
experiment

40. Lean Analytics cycle

41. ‣Buying
‣Signing up
‣Sharing
‣Etc
‣Brainstorming
‣Stolen from others
‣User feedback
‣Etc
One Metric That Matters:
Choose the KPI you want to improve
that represents the most fundamental
business risk
Did the KPI move past the
line in the send
Talk to customers and
draw a new line
Try again
Measure the effect the
change had on the KPI
Implement the best
experiment
Design A/B
experiments
Make changes to the
business that target this
commonality
Find an attribute the ‘best
customers’ share that’s
correlated with your KPI
What do these ‘best
customers’ have in
common?
Figure out how to improve that KPI?
Have a good idea you
want to try?
Draw a
line in the sand
Identify your ‘best
customers’
Pivot or give up?
Without data With data
Cautious testJust do it!
Yes!

42. Do AirBnB hosts get more business if
property is professionally
photographed?

43. Gut instinct (hypothesis)
Professional photography helps AirBnB’s business
Candidate solution (MVP)
20 field photographers posing as employees
Measure the results
Compare photographed listings to a control group
Make a decision
Launch photography as a new feature for all hosts

44. 5,000 shoots per month
by February 2012

45. “Those houses with
high revenue look
really nice.”
Maybe it’s the
camera?
“What do all the
frequently rented
houses have in
common?”
Camera model?
With data:
find a commonality
Without data: make a
good guess

46. Lesson 2:
Positioning statement...

47. A positioning statement describes
your unique value for something that an
identified market segment
truly cares about
http://differentbetterbook.comSee:

48. What is it?
A short statement that describes what you
are/do
Target Segment
The specific target market you are
targeting in the short term (aka which are
the leads you’re most likely to close?)
Market Category
Describe the market that you’re competing in
Competitive Alternatives
If your customers don’t use you, what
products/services do they use?
Primary Differentiation
The one thing (yes, one!) that sets you
apart the most from competitive analysis?
Key benefit
The biggest benefit your target market
derives from your offering?
Positioning Canvas
http://differentbetterbook.comSee:

49. Positioning. Experiment better, faster:
(re-)Framing Product
Core
message
Market
Positioning
components
http://differentbetterbook.comSee:

50. Understand your core product faster,
push your “aha” moment...

51. Lesson 3:
Build a Frictionless Product

52. Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

53. “You’re more likely to miss stuff just
because it takes a long time to scroll
down the page”
~ User 56A on the MeetHue.com website
Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

54. Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

55. “Your getting blamed for 3d
parties that are not your fault”
Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

56. Function vs. Feature

57. Source: Fogg Behavior Model, Dr. BJ Fogg, Stanford University
trigger
(SUCCESS!)
trigger
(FAIL!)
ability
motivation

58. Click away slidePerformance tolerance?

59. 0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Bouncerate per pagetype/session
Bouncerate(%)
Page load time (sec.)
Median Campaign Product search
Data collected by MeasureWorks at various e-commerce websites using real user monitoring, reference: http://bit.ly/MW-VEUrum

60. 0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
Bouncerate(%)
Page load time (sec.)
Median Campaign Product search
Bouncerate per pagetype/session
Data collected by MeasureWorks at various e-commerce websites using real user monitoring, reference: http://bit.ly/MW-VEUrum

61. Queuing for iPhone6 launch - London 2014
Purpose vs. Context

62. Online users often lack context for delays...

63. ...and see no other option than to click away

64. Designing User Experience

65. the WAITING experience
Source: Jakob Nielsen
Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

66. 0 0,5
Visual
confirmation
the WAITING experience
Source: Jakob Nielsen
Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

67. 0 0,5 1,5
Visual
confirmation
Understand
Navigation
the WAITING experience
Source: Jakob Nielsen
Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

68. 0 0,5 1,5 3
Visual
confirmation
Understand
Navigation
Relevant
Content?
the WAITING experience
Source: Jakob Nielsen
Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

69. 0 0,5 1,5 3 10
Visual
confirmation
Understand
Navigation
Relevant
Content?
Bye
Bye!
the WAITING experience
Source: Jakob Nielsen
Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

70. Build for Information Processing

71. Request
(Zero Moment of Truth)

72. Reply
(Skeleton = Perceived value)
https://www.youtube.com/watch?v=0LueoZaifVE

73. Orientation
(Rendering = Orientation)

74. Decision
(Convert into actions)

75. Don’t stop with one page: Flow state

76. Provide relevant content to support task
completion...

77. ...deliver it fast, focus on perception!

78. Good Design
+
Fast Delivery
=
Great User Experience

79. Page Load Time: https://chrome.google.com/webstore/detail/page-load-time/fploionmjgeclbkemipmkogoaohcdbig
Webpagetest: https://chrome.google.com/webstore/detail/webpagetest/jhbepelanbbipbinkkjcadbjjinjmiec
Page Analytics: https://chrome.google.com/webstore/detail/page-analytics-by-google/fnbdnhhicmebfgdgglcdacdapkcihcoh
Resources: https://github.com/micmro/performance-bookmarklet
Ghostery: https://chrome.google.com/webstore/detail/ghostery/mlomiejdfkolichcflejclcbmpeaniij
Build With: https://chrome.google.com/webstore/detail/builtwith-technology-prof/dapjbgnjinbpoindlpdmhochffioedbn
Responsive Design: https://chrome.google.com/webstore/detail/responsive-web-design-tes/objclahbaimlfnbjdeobicmmlnbhamkg
Clear Cache: https://chrome.google.com/webstore/detail/clear-cache/cppjkneekbjaeellbfkmgnhonkkjfpdn
SPOF: https://chrome.google.com/webstore/detail/spof-o-matic/plikhggfbplemddobondkeogomgoodeg
Browser Plugins:

80. Lesson 4:
(Lean) Analytics is everything

81. Lean Growth engines

82. Problem/
Solution
Market
Fit
Growth
Lean Startup (Accelerator)
Customer
Journey
Pain/
Gain

83. Scale
Business
unit
Corporate
exit
Scale-up
Problem/
Solution
Market
Fit
Growth
Customer
Journey
Pain/
Gain
Lean Startup (Accelerator)

84. Scale
Business
unit
Corporate
exit
Scale-up
Pain/
Gain
Problem/
Solution
Growth
Customer
Journey
Best customer
Repeatable
revenue
“Growth
hack”
Market
Fit
Lean Startup (Accelerator)

85. Scale
Business
unit
Corporate
exit
Scale-up
Pain/
Gain
Problem/
Solution
Growth
Customer
Journey
Best customer
Repeatable
revenue
Empathy Stickiness Virality Revenue Scale
(Lean) Analytics
stages
“Growth
hack”
Market
Fit
Lean Startup (Accelerator)

86. Knowing what to optimize when:
Putting a line in the sand

87. Why is Nigerian spam so badly
written?

88. Aunshul Rege of Rutgers University, USA in 2009
1000 emails
1-2 responses
1 fool and their money, parted.
Bad language (0.1% conversion)
Gullible (70% conversion)
1000 emails
100 responses
1 fool and their money, parted.
Good language (10% conversion)
Not-gullible (.07% conversion)

89. Nigerian spammers
have really learned to understand their
target market and ‘best customers’

90. correlation vs. causation

91. Correlated
Two variables that are
related (but may be
dependent on
something else.)
Causal
An independent
variable that directly
impacts a dependent
one.

92. 1
10
100
1000
10000
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Relationship between Ice cream and drownings?
Ice cream consumption Drownings

93. Correlated
Two variables that are
related (but may be
dependent on
something else.)
Causal
An independent
variable that directly
impacts a dependent
one.
Ice cream &
drowning.
Summertime &
drowning.

94. A leading, causal, connection is
the analytics superpower...

95. ‣ A Facebook user reaching 7 friends within 10 days of signing up
(Chamath Palihapitiya)
‣ A Dropbox user who puts at least one file in one folder on one
device (ChenLi Wang)
‣ Twitter user following a certain number of people, and a certain
percentage of those people following the user back (Josh
Elman)
‣ A LinkedIn user getting to X connections in Y days (Elliot
Schmukler)
Some examples
(From the 2012 Growth Hacking conference. http://growthhackersconference.com/)

96. One Metrics That Matters

97. In a startup, focus is hard to
achieve.

98. That’s why we pick one metric at at
time...

99. Picking your One Metric That Matters:
It answers the most important questions for your stage
It puts focus into the entire company
It forces you to put a line in the sand
It inspires a culture of experimentation

100. Best deal:
Get 1, pay for 2
Lesson 5:
Sales = Funding

101. The
5 “mores”
(Sergio Zyman)
More things
To more people
For more money
More often
More efficiently
‣ Supply chain optimization
‣ Per-transaction cost reduction
‣ Loyal customer base that returns
‣ Demand prediction, notification
‣ Maximum shopping cart
‣ Price skimming/tiering
‣ Highly viral offering
‣ Low incremental order costs
‣ Inventory increase
‣ Gifting, wish lists
http://www.slideshare.net/GrowthTribe/growth-tribe-alistair-croll-startup-workshop-lean-analytics-growth-hacking

102. Best deal:
Get 1, pay for 2

103. Budget Authority Need Time

104. BANT for online...

105. Priority Time Authority Need
4 sales archetypes

106. 4 sales archetypes
Priority
Must have
features
Timelapse
Nice to have
Need to have
Must have
Recognition
Orientation
Understand
impact
Sale

107. Time
End point
focus
Installation
Order
Sequence Critical Event
Delivery
First Value (install)
Value proof
Order
4 sales archetypes

108. Authority
Feature
diversity
Users
Manager
Executive
Authority
Decision maker
Distributed
Decision maker
Committee?
4 sales archetypes

109. Need
Feature
discovery
Identified
needs
Banana Onion
Feature 2
Features
& Benefits
X
Y
Z
1
2
3
Need x
Need Z
Need y
Feature 1
Need X
4 sales archetypes

110. Positioning
So, where does your product fit?
(again, positioning)

111. Holy Growth, Batman...

112. Analytics is your oxygen. Pick one metric at a time
Optimize for a frictionless product
Experiment! Rinse, repeat to find causation
2
3
4
1 Build your positioning statement
Grow Better Products demystified
Build a Revenue Model (for better funding)5

113. 1
2
3
4
5
6
7
8
9
10
Build your positioning statement
Identify your points of leverage
Clearly state your measurable
goals
Pick your ‘one metric that
matters’
Acquire the right analytics tools
Run your experiments
Test, optimize, measure, rinse
& repeat
Find your own hacks
Pick a new ‘one metric that
matters’
Embrace the experiment
mindset
Grow Better Products checklist

114. Remember, Speed is everything

115. Something to read...

117. Thanks! More questions?
M: jtjepkema@measureworks.nl
T: @jeroentjepkema
W: www.measureworks.nl
View slides: bit.ly/MW-ECL16
Or, talk to us in the demo alley!