A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conference
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Talk I gave at the Lean Startup Conference sharing top ideas from my book "The Lean Product Playbook." Learn more at http://amzn.to/1EYCUdP
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A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conference
- 1. A Playbook For Achieving Product- Market Fit DAN OLSEN NOV 12, 2015
- 2. My#Background# Educa/on# ! Engineering#background# ! Stanford#MBA# ! UX#design,#web#and#mobile#coding# # Experience# ! Led#Quicken#Product#Management#at#Intuit# ! Led#Product#Management#at#Friendster# ! CEO#&#Cofounder,#TechCrunch#award#winner#YourVersion# ! Product#consultant:#Facebook,#Box,#MicrosoM# ! 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?# ! Ar/culate#hypotheses# ! Iden/fy#fastest#way#to#test# ! Keep#scope#small:# minimum#viable#product#(MVP)# ! Test#with#customers# ! Learn#and#iterate# ! Achieve#productamarket#fit# Copyright#©#2015#@danolsen# Sounds'easy,'right?'
- 25. # # ! Russians:#pencil# ! NASA:#space#pen# ($1#M#R&D#cost)# # # # # Example# ! Ability#to#write#in#space# (zero#gravity)# Problem#Space#vs.#Solu/on#Space# Problem#Space# ! A#customer#problem,#need# or#benefit#that#the#product# should#address# ! A#product#requirement# Solu/on#Space# ! 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# ! Think#about#Airbnb# ! Focus#on#the#problem#space# ! What#customer#needs#does#Airbnb#address?# Copyright#©#2015#@danolsen#
- 35. What#is#Your#Value#Proposi/on?# ! Which#user#benefits#are#you#providing?# ! 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?# ! Which#user#benefits#are#you#providing?# ! 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# a# Delighter#Benefit#2# a# a# Copyright#©#2015#@danolsen#
- 37. What#is#Your#Value#Proposi/on?# ! Which#user#benefits#are#you#providing?# ! 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# a# a# Delighter#Benefit#2# a# a# Y# Copyright#©#2015#@danolsen#
- 38. Group#Exercise:#Value#Proposi/on# ! Recall#our#discussion#on#Airbnb#user#needs# ! Who#are#Airbnb’s#compe/tors?# ! Think#about#how#Airbnb#meets#those#needs# beOer#than#alterna/ve#solu/ons# ! What#are#Airbnb’s#differen/ators?# Copyright#©#2015#@danolsen#
- 43. Geqng#Customer#Feedback# Problem#Space#vs.#Solu/on#Space# ! Customers#CAN’T#ar/culate#problem#space# ! Customers#CAN#react#to#solu/on#space# ! That’s#why#you#need#something#tangible#to# show#to#customers#to#get#good#feedback# Copyright#©#2015#@danolsen#
- 48. “Ramen”#User#Tes/ng#Session# 10#a#15#min:#Warm#Up#and#Discovery# ! Understand#user#needs,#priori/es# ! Learn#about#solu/ons#they#use,#likes#and#dislikes# 30#a#50#min:#User#Feedback#on#Prototype# ! Show#user#mockup/product# ! Be#as#nonadirected#as#possible:#like#you’re#not#there# ! Ask#ques/ons#to#gain#understanding# 5#a#10#min:#Wrap#up# ! Answer#any#ques/ons#or#issues#that#came#up# ! Point#out/explain#features#you#want#to#highlight# ! Ask#if#they#would#use#the#product# Copyright#©#2015#@danolsen#
- 49. Dos#&#Don’ts#of#User#Tes/ng#Sessions# Do# ! Explain#to#the#user# ! Feedback#will#help#improve#the#product# ! Not#to#worry#about#hur/ng#your#feelings# ! Think#Aloud#Protocol # ! Try#to#be#a#fly#on#the#wall# ! Take#notes#and#review#them#aMerwards#for#takeaaways# Don’t# ! Ask#leading#or#closeaended#ques/ons# ! Help user#or#explain#the#UI#(e.g.,# click#over#here )# ! Get#defensive#or#blame#the#user# Copyright#©#2015#@danolsen#
- 55. Marke/ngReport.com#Case#Study# ! My#client#(CEO)#had#a#new#product#idea# ! Team:#me,#CEO,#VP#marke/ng,#UI#designer# ! Goals# ! See#if#business#opportunity#exists# ! Do#so#quickly#and#inexpensively#(no#coding)# ! Marke/ng#report would#let#consumers# control#the#direct#mail#that#they#receive# ! 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#
- 59. Recrui/ng#Target#Customers# ! Used#customer#research#firm#(panel)# ! Wrote#screener#to#iden/fy#target#customers# ! Work#fulla/me# ! Fit#for#Saver:#use#coupons,#Costco#membership# ! Fit#for#Shield:#use#paper#shredder,#block#caller#ID# ! Offered#$75#compensa/on# ! Scheduled#3#groups#of#2#or#3#people#for#90#min# ! 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#
- 62. Summary#of##Case#Study# ! 4#weeks#to#validated#product#concept# ! 1#round#of#itera/on# ! Zero#coding# ! Reasonable#cost# ! Customers#willing#to#pay#$10/month# ! Trimmed#away#nonavaluable#pieces# ! 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:# " HypothesizeaDesignaTestaLearn#loop# " Improve#productamarket#fit# Copyright#©#2015#@danolsen#