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How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by Dan Olsen

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In this talk, I share my Lean Product Process for How to Achieve Product-Market Fit with Rapid Prototyping and User Testing

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How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by Dan Olsen

  1. 1. My Background Copyright © 2019 @danolsen n Engineering n Stanford MBA n Product Management leader at Intuit & startups n CEO & Cofounder, TechCrunch winner YourVersion n Product Management consultant & trainer n Founder: Lean Product Silicon Valley Twitter: @danolsen My slides: https://dan-olsen.com
  2. 2. What is Product-Market Fit?
  3. 3. That’s Why I Wrote Copyright © 2019 @danolsen
  4. 4. The Product-Market Fit Pyramid
  5. 5. The Product-Market Fit Pyramid
  6. 6. The Product-Market Fit Pyramid
  7. 7. The Product-Market Fit Pyramid
  8. 8. The Lean Product Process
  9. 9. The Lean Product Process
  10. 10. The Lean Product Process
  11. 11. The Lean Product Process
  12. 12. The Lean Product Process
  13. 13. The Lean Product Process
  14. 14. The Lean Product Process
  15. 15. The Lean Product Process
  16. 16. Copyright © 2019 @danolsen
  17. 17. The Lean Product Process 1. Determine your target customer 2. Identify underserved customer needs 3. Define your value proposition 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2019 @danolsen
  18. 18. Transportation 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 Distinct Needs High-level need Target Customer Detailed needs Ideal Product Soccer Parent Speed Demon
  19. 19. Types of Segmentation n Demographic: age, gender, geography, education, income n Firmographic for businesses: industry, size of revenue, geography, number of employees n Psychographic: attitudes, values & interests n Behavioral: what they do, how often n Needs-based Copyright © 2019 @danolsen
  20. 20. The Lean Product Process 1. Determine your target customer 2. Identify underserved customer needs 3. Define your value proposition 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2019 @danolsen
  21. 21. Russians: pencil Space pen: $1 M R&D cost Example n Ability to write in space (zero gravity) Problem Space vs. Solution Space Problem Space n A customer problem, need or benefit that the product should address n A well-written user story Solution Space n A specific implementation to address the customer need or requirement Copyright © 2019 @danolsen
  22. 22. Problem vs. Solution Space: Product Level Problem Space (user benefits) Solution Space (product) TurboTax TaxCut Pen and paper Prepare my taxes Copyright © 2019 @danolsen
  23. 23. Problem vs. Solution Space: Product Level Problem Space (user benefits) Solution Space (product) Prepare my taxes File my taxes Check my taxes Maximize my deductions Reduce my audit risk Copyright © 2019 @danolsen
  24. 24. Solution SpaceProblem Space Problem vs. Solution Space: Feature Level Copyright © 2019 @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
  25. 25. The Lean Product Process 1. Determine your target customer 2. Identify underserved customer needs 3. Define your value proposition 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2019 @danolsen
  26. 26. The Lean Product Process 1. Determine your target customer 2. Identify underserved customer needs 3. Define your value proposition 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2019 @danolsen
  27. 27. Breaking Features Down into Chunks Must Have 1 Performance 1 Delighter 1 Delighter 2 Must Have 2 Performance 2 Performance 3 Benefits: M1A P1A D2AM2A P2A P3B Features: P1B D2BP2B P3C P3A P1C P1D
  28. 28. Product Roadmap: Features by Version or Time Copyright © 2019 @danolsen Must Have Benefit 1 Performance Benefit 1 Performance Benefit 3 Delighter Benefit 1 Performance Benefit 2 Must Have Benefit 2 Delighter Benefit 2 M1A Time v1 v1.5 v2 v2.5 M2A P3A P1B P3B P2A P1A D2A P3C D2B MVP candidate
  29. 29. The Lean Product Process 1. Determine your target customer 2. Identify underserved customer needs 3. Define your value proposition 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2019 @danolsen
  30. 30. The UX Design Iceberg Copyright © 2019 @danolsen What most people see and react to What good product teams think about
  31. 31. Iterative Design & Test Workflow Copyright © 2019 @danolsen Hand sketches Interactivity Fidelity Clickable Wireframes Clickable Mockups Live Product Test Test Test
  32. 32. The Lean Product Process 1. Determine your target customer 2. Identify underserved customer needs 3. Define your value proposition 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2019 @danolsen
  33. 33. The Lean Product Process
  34. 34. Conducting the User Test n Types of user tests n In-person moderated n Remote moderated n Remote unmoderated n Talk to users in waves of 5 to 8 Copyright © 2019 @danolsen
  35. 35. “Ramen” User Testing Session 10 - 15 min: Warm Up and Discovery n Understand user needs, priorities n Learn about solutions 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 questions to gain understanding 5 - 10 min: Wrap up n Answer any questions or issues that came up n Point out/explain features you want to highlight n Ask if they would use the product Copyright © 2019 @danolsen
  36. 36. Dos & Don’ts of User Testing Sessions Do n Explain to the user n Feedback will help improve the product n Not to worry about hurting your feelings n Think Aloud Protocol n Try to be a fly on the wall n Take notes and review them afterwards for take-aways Don’t n Help user or explain the UI (e.g., click over here ) n Get defensive or blame the user n Ask leading or close-ended questions Copyright © 2019 @danolsen
  37. 37. Open-ended vs. Closed Questions Closed questions n Do you… or Did you... or Does... n Are you... or Was that… n Anything that can be answered yes or no Open-ended questions n How… n What are your thoughts on... n What feedback do you have on... n Why … n Anything that doesn’t have a pre-determined answer Copyright © 2019 @danolsen
  38. 38. Learning happens when… you are surprised
  39. 39. Synthesizing Customer Feedback Copyright © 2019 @danolsen
  40. 40. Feature Set UX Design Messaging How valuable? (1-10) How easy to use? (1-10)
  41. 41. User 1 Feature Set +Thought feature X was valuable Y -Complained feature Y was missing Y UX Design -Had difficulty with registration Y Messaging +Liked hero image on home page Y How valuable? (1-10) 7 How easy to use? (1-10) 5
  42. 42. User 1 User 2 Feature Set +Thought feature X was valuable Y Y -Complained feature Y was missing Y Y UX Design -Had difficulty with registration Y -Didn’t see “sign up” link Y +Thought design was professional Y Messaging +Liked hero image on home page Y -Didn’t understand tagline Y How valuable? (1-10) 7 7 How easy to use? (1-10) 5 7
  43. 43. User 1 User 2 User 3 Feature Set +Thought feature X was valuable Y Y -Complained feature Y was missing Y Y Y UX Design -Had difficulty with registration Y Y -Didn’t see “sign up” link Y +Thought design was professional Y Messaging +Liked hero image on home page Y Y -Didn’t understand tagline Y How valuable? (1-10) 7 7 6 How easy to use? (1-10) 5 7 5
  44. 44. User 1 User 2 User 3 User 4 Feature Set +Thought feature X was valuable Y Y Y -Complained feature Y was missing Y Y Y UX Design -Had difficulty with registration Y Y Y -Didn’t see “sign up” link Y Y +Thought design was professional Y Y Messaging +Liked hero image on home page Y Y Y -Didn’t understand tagline Y How valuable? (1-10) 7 7 6 8 How easy to use? (1-10) 5 7 5 4
  45. 45. User 1 User 2 User 3 User 4 User 5 Feature Set +Thought feature X was valuable Y Y Y Y -Complained feature Y was missing Y Y Y Y UX Design -Had difficulty with registration Y Y Y -Didn’t see “sign up” link Y Y Y +Thought design was professional Y Y Messaging +Liked hero image on home page Y Y Y -Didn’t understand tagline Y Y How valuable? (1-10) 7 7 6 8 7 How easy to use? (1-10) 5 7 5 4 7
  46. 46. User 1 User 2 User 3 User 4 User 5 Wave Feature Set +Thought feature X was valuable Y Y Y Y 80% -Complained feature Y was missing Y Y Y Y 80% UX Design -Had difficulty with registration Y Y Y 60% -Didn’t see “sign up” link Y Y Y 60% +Thought design was professional Y Y 40% Messaging +Liked hero image on home page Y Y Y 60% -Didn’t understand tagline Y Y 40% How valuable? (1-10) 7 7 6 8 7 7 How easy to use? (1-10) 5 7 5 4 7 5
  47. 47. Synthesizing Customer Feedback Across Multiple Waves of User Testing Copyright © 2019 @danolsen
  48. 48. Wave 1 Feature Set -Complained feature Y was missing 80% UX Design -Had difficulty with registration 60% -Didn’t see “sign up” link 60% Messaging -Didn’t understand tagline 40% How valuable? (1-10) 7 How easy to use? (1-10) 5
  49. 49. Wave 1 Wave 2 Feature Set -Complained feature Y was missing 80% 0% -Said features X and Y should work together N/A 80% UX Design -Had difficulty with registration 60% 0% -Didn’t see “sign up” link 60% 40% -Thought that feature Y was hard to use N/A 80% Messaging -Didn’t understand tagline 40% 0% How valuable? (1-10) 7 8 How easy to use? (1-10) 5 6
  50. 50. Wave 1 Wave 2 Wave 3 Feature Set -Complained feature Y was missing 80% 0% 0% -Said features X and Y should work together N/A 80% 0% UX Design -Had difficulty with registration 60% 0% 0% -Didn’t see “sign up” link 60% 40% 0% -Thought that feature Y was hard to use N/A 80% 40% Messaging -Didn’t understand tagline 40% 0% 0% How valuable? (1-10) 7 8 9 How easy to use? (1-10) 5 6 7
  51. 51. Wave 1 Wave 2 Wave 3 Wave 4 Feature Set -Complained feature Y was missing 80% 0% 0% 0% -Said features X and Y should work together N/A 80% 0% 0% UX Design -Had difficulty with registration 60% 0% 0% 0% -Didn’t see “sign up” link 60% 40% 0% 0% -Thought that feature Y was hard to use N/A 80% 40% 0% Messaging -Didn’t understand tagline 40% 0% 0% 0% How valuable? (1-10) 7 8 9 9 How easy to use? (1-10) 5 6 7 9
  52. 52. Iterating Between User Testing Waves Customer Feedback Mockups / Code Copyright © 2018 @danolsen Problem Space All your hypotheses Solution Space User reactions
  53. 53. Problem Space Solution Space Copyright © 2018 @danolsen
  54. 54. Persevere or Pivot? Increasing Product-Market Fit Pivot Product-Market Fit = Getting enough data to validate you’re climbing up the right mountain Copyright © 2018 @danolsen
  55. 55. The Lean Product Process: MarketingReport.com Case Study Copyright © 2019 @danolsen
  56. 56. MarketingReport.com Case Study n My client (CEO) had a new product idea n Team: me, CEO, VP marketing, UI designer n Goals n See if business opportunity exists n Do so quickly and inexpensively (no coding) n Marketing report would let consumers control the direct mail that they receive n Analogous to credit report Copyright © 2019 @danolsen
  57. 57. Mapping Out Customer Benefits Reduce Junk Mail Learn why I receive the junk mail I receive Money Saving Offers Compare Yourself to Others Social Networking Marketing Report Marketing Score Marketing Profile Save Trees Marketing Shield Concept Marketing Saver Concept Copyright © 2019 @danolsen
  58. 58. Recruiting Target Customers n Wrote screener to identify target customers n Work full-time n Fit for Saver: use coupons, Costco membership n Fit for Shield: use paper shredder, block caller ID n Moderated each group through the mockups Copyright © 2019 @danolsen
  59. 59. Copyright © 2019 @danolsen
  60. 60. Learning from First Wave of User Tests Reduce Junk Mail Learn why I receive the junk mail I receive 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 © 2019 @danolsen
  61. 61. Copyright © 2019 @danolsen
  62. 62. The Lean Product Process 1. Determine your target customer 2. Identify underserved customer needs 3. Define your value proposition 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 © 2019 @danolsen
  63. 63. Jeetu Patel, Chief Product Officer, Box Thu May 30th at Intuit, Mountain View 10 Lessons on How to Scale Your Product
  64. 64. Thank You! @danolsen dan-olsen.com meetup.com/leanproduct Happy to connect on LinkedIn

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