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How to Create Products for Growth by Dan Olsen at Growth Hacking Summit

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Talk I gave at the Growth Hacking Summit in August 2015 sharing ideas from my new book "The Lean Product Playbook". You can learn more at http://tiny.cc/LPP

Publicado en: Empresariales, Software, Marketing
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How to Create Products for Growth by Dan Olsen at Growth Hacking Summit

  1. How to Create Products for Growth DAN Olsen August 4, 2015
  2. Copyright  ©  2015  @danolsen   My  Background   n  Educa=on   n  Engineering  background   n  Stanford  MBA   n  UX  design,  web  and  mobile  coding   n  Experience   n  Led  Quicken  Product  Management  at  Intuit   n  Led  Product  Management  at  Friendster   n  CEO  &  Cofounder,  TechCrunch  award  winner  YourVersion   n  Product  consultant:  Facebook,  Box,  MicrosoS   n  Organizer:  Lean  Product  &  Lean  UX  Meetup  Silicon  Valley     Slides  at  hUp://slideshare.net/dan_o      TwiUer:  @danolsen  
  3. n  Win  a  signed  copy  of  book   n  Tweet  about  this  webinar   n  Include  @danolsen   n  Can  include  screenshots   of  slides  you  like   n  Hashtags:   n  #growthhacking   n  #leanstartup   n  #prodmgmt   n  bit.ly/leanplaybook   Copyright  ©  2015  @danolsen  
  4. The  3  Phases  of  Your  Product   Copyright  ©  2015  @danolsen   BEFORE   Product-­‐Market  Fit   AFTER   Product-­‐Market  Fit   BEFORE  your   product  is  live   Phase  1   AFTER  your   product  is  live   Phase  2   #  of  Customers   Time   0   lots       Phase  3  
  5. The  3  Phases  of  Your  Product   Copyright  ©  2015  @danolsen   BEFORE   Product-­‐Market  Fit   AFTER   Product-­‐Market  Fit           Growth         Mainly   Quan=ta=ve   BEFORE  your   product  is  live   Phase  1     Test  hypotheses,   gain  confidence   before  building     Qualita=ve   AFTER  your   product  is  live   Phase  2     Improve  product-­‐ market  fit       Qualita=ve  &   Quan=ta=ve     Goal:     Methods:         Phase  3  
  6. Qualita=ve  vs.  Quan=a=ve   Qualita=ve   Interviews,  User  Tes=ng   Quan=ta=ve   Analy=cs,  A/B  tes=ng   Oprah   Spock  
  7. Phases  1  &  2:   The  Product-­‐Market  Fit  Pyramid  
  8. Phase  2:   If  you  could  only  track  1  metric  to   measure  your  Product-­‐Market  Fit,   which  metric  would  it  be?   Copyright  ©  2015  @danolsen  
  9. Reten=on  Rate   n  Reten=on  rate  tracks  what  %  of  your   customers  are  s=ll  ac=ve  over  =me   ~80% never use app again Curve eventually flattens out
  10. Improving  Reten=on  Rate  Over  Time=   Increasing  Product-­‐Market  Fit  
  11. Phase  3:   ASer  Product-­‐Market  Fit   Copyright  ©  2015  @danolsen  
  12. Iden=fy  highest   ROI  idea   Design  and   Implement   Analyze  How   the  Metric   Changes   Brainstorm   Ideas  to   Improve  Metric   Copyright  ©  2015  @danolsen   Lean  Product  Analy=cs  Process   Iden=fy  What   Your    Metrics  Are   Measure  Metrics   Baseline  Values   Evaluate  Metrics   Upside  Poten=al   Global   Level   Metric   Level   Select   Top  Metric   Learn   &  Iterate  
  13.                        SEO  Visitors      x    Conversion  Rate   +  SEM  Visitors    x    Conversion  Rate   +  Viral  Visitors    x    Conversion  Rate   +  …   +  Visitors  from  Channel  N    x    Conversion  Rate            Paying  Users    x    Revenue  per  Paying  User                          New  Paying  Users    +    Repeat  Paying  Users                                    Previous  Paying  Users    x    (  1  –  Cancella=on  Rate  )                      Trial  Users    x    Conv  Rate                                     Profit  =  Revenue  -­‐  Cost                       Equa=on  of  your  Business:   Subscrip=on  Business  Model   Copyright  ©  2015  @danolsen  
  14. View  Each  Metric  as  a  Gauge   Copyright  ©  2015  @danolsen   Minimum   Possible   Value   Maximum   Possible   Value   Current   Value  
  15. Iden=fying  the  “Cri=cal  Few”  Metrics   n  For  each  metric:  Where  is  the  needle  now?   n  How  much  can  we  move  the  needle?  Revenue  impact?   n  How  many  resources  will  it  take  to  move  the  needle?   n  Developer-­‐days,  money   n  Which  metrics  have  the  highest  ROI  opportuni=es?   Return   Investment   Return   Investment   Return   Investment   Metric  A   Good  ROI   Metric  B   Bad  ROI   Metric  C   Great  ROI   Copyright  ©  2015  @danolsen  
  16. Friendster  Growth  Hacking   Case  Study   Copyright  ©  2015  @danolsen   Improving  Viral  Acquisi=on   of  New  Users  
  17. Case  Study:   Op=mizing  Friendster’s  Viral  Loop   Active Users Prospective Users Invite Click Succeed Don’t Click Fail Users Registration Process Copyright  ©  2015  @danolsen  
  18. •   Which  metric  has  highest  ROI  opportunity?   Case  Study:   Op=mizing  Friendster’s  Viral  Loop   Active Users Prospective Users Invite Click Succeed Invite click-through rate Conversion rate Don’t Click Fail Invites per sender % of users sending invites •   Mul=plied  together,  these  metrics  determine  your  viral  ra=o   Users % of users who are active Registration Process Copyright  ©  2015  @danolsen  
  19. •   Which  metric  has  highest  ROI  opportunity?   Case  Study:   Op=mizing  Friendster’s  Viral  Loop   Active Users Prospective Users Invite Click Succeed Invite click-through rate Conversion rate Don’t Click Fail Invites per sender % of users sending invites •   Mul=plied  together,  these  metrics  determine  your  viral  ra=o   Users % of users who are active Registration Process Copyright  ©  2015  @danolsen  
  20. •   Which  metric  has  highest  ROI  opportunity?   Case  Study:   Op=mizing  Friendster’s  Viral  Loop   Copyright  ©  2015  @danolsen   Active Users Prospective Users Invite Click Succeed Invite click-through rate Conversion rate Don’t Click Fail Invites per sender % of users sending invites •   Mul=plied  together,  these  metrics  determine  your  viral  ra=o   Users % of users who are active = 15% = 2.3 = 85% Registration Process
  21. The  Upside  Poten=al  of  a  Metric   0   100%   Registra=on   Process  Yield   85%   Max  possible   improvement   0.15  /  0.85  =  18%   Copyright  ©  2015  @danolsen  
  22. The  Upside  Poten=al  of  a  Metric   0   100%   0   100%   Registra=on   Process  Yield   %  of  users  sending   invita=ons   85%   15%   Max  possible   improvement   0.15  /  0.85  =  18%   0.85  /  0.15  =  570%   Copyright  ©  2015  @danolsen  
  23. The  Upside  Poten=al  of  a  Metric   0   100%   0   100%   0   ?   Registra=on   Process  Yield   %  of  users  sending   invita=ons   Avg  #  of  invites   sent  per  sender   2.3   85%   15%   Max  possible   improvement   0.15  /  0.85  =  18%   0.85  /  0.15  =  570%   ?  /  2.3  =  ?%   Copyright  ©  2015  @danolsen  
  24. Is  anyone  feeling  a   sense  of  déjà  vu   right  now?  
  25. The  Upside  Poten=al  of  a  Metric   0   100%   0   100%   0   ?   Registra=on   Process  Yield   %  of  users  sending   invita=ons   Avg  #  of  invites   sent  per  sender   2.3   85%   15%   Max  possible   improvement   0.15  /  0.85  =  18%   0.85  /  0.15  =  570%   ?  /  2.3  =  ?%   Copyright  ©  2015  @danolsen   Metric  B   Bad  ROI   Metric  A   Good  ROI   Metric  C   Great  ROI  
  26. ASer  Launching  Address  Book  Importer…   Copyright  ©  2015  @danolsen  
  27. ASer  Launching  Address  Book  Importer…   Copyright  ©  2015  @danolsen  
  28. ASer  Launching  Address  Book  Importer…   Copyright  ©  2015  @danolsen  
  29. Questions? @danolsen   olsensolu=ons.com   slideshare.net/dan_o   leanproductplaybook.com     Book:  bit.ly/leanplaybook      

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