Más contenido relacionado La actualidad más candente (20) Similar a Product Management by Numbers: Using Metrics To Optimize Your Product by Dan Olsen (20) Product Management by Numbers: Using Metrics To Optimize Your Product by Dan Olsen3. My Background
Education
BS, Electrical Engineering, Northwestern
MS, Industrial Engineering, Virginia Tech
MBA, Stanford
PHP, MySQL, JavaScript, XHTML, CSS, UI design
17 years of Product Management Experience
Managed submarine design for 5 years
5 years at Intuit, led Quicken Product Management
Led Product Management at Friendster
Olsen Solutions LLC, PM consultant for start‐ups
CEO & Founder of YourVersion, Social Discovery start‐up
5. A Product Manager by any Other
Name Would Smell as Sweet
Product managers are sometimes called
Product marketing manager
Program manager
Project manager
Label and definition of role can vary
Based on industry or company
Based on B2C (consumer) vs. B2B (enterprise)
Based on stage of company
Can be area of responsibility vs. actual position
Copyright © 2008 Olsen Solutions LLC
6. Product Management is
Critical Link in Value Creation
Market Product Development
• Current Management Team
customers
• Prospective
customers
• Competitors
Copyright © 2008 Olsen Solutions LLC
7. A Process View of Product Management
“Inbound”
Product “Outbound”
Management Product
Long Business Product Management
Term Strategy Strategy
Market/
Sell
Short Business Product Product
Term Objectives Objectives Development
Service/
Support
Copyright © 2008 Olsen Solutions LLC
10. Adding Metrics and Optimization to
your Product Process
Site Level
Business Product Prioritized
Plan Objectives Objectives Feature List
Scoping Feature
Level
Requirements
Design & Design
Code Test Launch
Develop
Metrics & User
Optimize Feedback
Copyright © 2008 Olsen Solutions LLC
11. Optimization through Iteration:
Continuous Improvement
Measure
the metric
Analyze
Learning the metric
Gaining knowledge:
• Market Identify top
• Customer opportunities
to improve
• Domain
• Usability Design & develop
the enhancement
Launch the
enhancement
Copyright © 2008 Olsen Solutions LLC
13. Approaching Business as an
Optimization Exercise
Given reality as it exists today,
optimize our business results
subject to our resource constraints.
Copyright © 2008 Olsen Solutions LLC
14. Define the Equation of your Business
“Peeling the Onion”
Profit = Revenue ‐ Cost
Unique Visitors x Ad Revenue per Visitor
Impressions/Visitor x Effective CPM / 1000
Visits/Visitor x Pageviews/Visit x Impressions/PV
New Visitors + Returning Visitors
Invited Visitors + Uninvited Visitors
# of Users Sending Invites x Invites Sent/User x Invite Click‐through Rate
Copyright © 2008 Olsen Solutions LLC
15. How to Track Your Metrics
Track each metric as daily time series
Unique Page Ad New User
…
Date Visitors views Revenue Sign‐ups
4/24/08 10,100 29,600 25 490
4/25/08 10,500 27,100 24 480
…
Create ratios from primary metrics: X / Y
Example: How good is your registration page?
Okay: # of registered users per day
Better: registration conversion rate =
# registered users / # uniques to reg page
Copyright © 2008 Olsen Solutions LLC
16. Sample Signup Page Yield Data
Daily Signup Page Yield vs. Time
New Registered Users divided by Unique Visitors to Signup Page
100%
90%
80%
Daily Signup Page Yield
70%
60%
50%
40%
30% Started requiring
registration
20%
Changed Added questions
messaging to signup page
10%
0%
1/31 2/14 2/28 3/14 3/28 4/11 4/25 5/9 5/23 6/6 6/20 7/4 7/18 8/1 8/15 8/29 9/12 9/26 10/1
0
Copyright © 2008 Olsen Solutions LLC
17. Using Metrics to Optimize the
Equation of your Business
What are the metrics for your business?
Where is current value for each metric?
How many resources to “move” each metric?
Developer‐hours, time, money
Which metrics have highest ROI opportunities?
Metric A Metric B Metric C
Good ROI Bad ROI Great ROI
Return
Return
Return
Investment Investment Investment
Copyright © 2008 Olsen Solutions LLC
18. Case Study:
Optimizing Viral Loop Metrics
% of users
sending = 15% Invites per Invite
invites sender = 2.3 click-through rate
Active Invite Prospective Click Registration Fail
Users Users Process
% of users
who are Succeed
Don’t
active Click Conversion
rate = 85%
Users
• Multiplied together, these metrics determine your viral ratio
• Which metric has highest ROI opportunity?
Copyright © 2008 Olsen Solutions LLC
19. Maximum Upside Potential of a Metric
?
100% 100%
85%
15% 2.3
0 0 0
Registration % of users sending Avg # of invites
conversion rate invitations sent per sender
Max possible 0.15 / 0.85 = 18% 0.85 / 0.15 = 570% ? / 2.3 = ?%
improvement
Copyright © 2008 Olsen Solutions LLC
22. The Fuzzy Math of Customer Value
You create customer value with a product that
Satisfies customers’ needs
Is easy to use
Has a good price
Is better than other alternatives
Not fuzzy: # of users and frequency of use
Applying metrics approach to customer value
Need framework of user needs & satisfaction
Quantitative: site analytics, usage metrics, surveys
Qualitative: 1‐on‐1 user feedback sessions are best
Copyright © 2008 Olsen Solutions LLC
23. Olsen’s Hierarchy of Web User Needs
(adapted from Maslow)
Customer’s Perspective What does it mean to us?
How easy to use is it? Usability & Design
Satisfaction
Increasing
Does the functionality
Feature Set
meet my needs?
Does the functionality work?
Absence of Bugs
Dissatisfaction
Decreasing
Is the site fast enough?
Page Load Time
Is the site up when I want to use it?
Uptime
Copyright © 2008 Olsen Solutions LLC
24. Kano Model: User Needs & Satisfaction
User Satisfaction
Delighter (wow)
Performance
(more is better)
Need Need
not met fully met
Must Have
Needs & features
migrate over time
User Dissatisfaction Copyright © 2008 Olsen Solutions LLC
25. Importance vs. Satisfaction
Ask Users to Rate for Each Feature
100 98
Great
95
84 87
90
Bad 86
85 79 84
55 70
80
Importance
80
75 72
80
70
75
65
60
55
41
50
40 50 60 70 80 90 100
Satisfaction
Recommended reading: “What
Customers Want” by Anthony Ulwick Copyright © 2008 Olsen Solutions LLC
26. What is Your Value Proposition?
Which user benefits are most important?
How well does your product deliver?
Importance Current User Upside
User Benefit to User Satisfaction Potential
Low High – +
Benefit 1 High
Benefit 2 High
Benefit 3 Low ?
opportunity
Benefit 4 Med
Benefit 5 Low ?
opportunity
Benefit 6 Low
Doesn’t matter
Copyright © 2008 Olsen Solutions LLC
27. Return (Value Created) Analyzing Product Ideas by ROI
?
4
Idea D
3
Idea A Idea B
2
Idea C
1
Idea F
1 2 3 4
Investment (developer-weeks)
Copyright © 2008 Olsen Solutions LLC
28. Return (Value Created) Prioritizing Product Ideas by ROI
Idea C
8
7 Idea B
6
5
4 Idea A
3
2
1
1 2 3 4 5
Investment (developer-weeks)
Copyright © 2008 Olsen Solutions LLC
29. The UI Design Iceberg
What most
people see
and react to Visual
Design What good
PMs and
Designers
Interaction think about
Design
Information
Architecture
Conceptual
Design
Recommended reading: Jesse James Garrett’s
“Elements of User Experience” chart, free at www.jjg.net Copyright © 2008 Olsen Solutions LLC
33. The Fold Isn’t Binary Either
768 px
The chrome steals
% of Users
about 170 pixels
600 px 1024 px
Data courtesy of ClickTale
Free trial at www.clicktale.com Copyright © 2008 Olsen Solutions LLC
34. Analyze User Screen Height Distribution
to Select Design Height for Key Pages
100%
600, 100% 768, 92%
90%
% of Users with Given (or Higher) Screen Height
80%
70%
Going above
60%
768 px = big drop
50%
40%
772, 38%
864, 29%
30%
807, 29% 1024, 20%
866, 25%
20%
1000, 20%
10%
1030, 5%
0%
600 650 700 750 800 850 900 950 1000 1050 1100
Page Design Height (pixels)
Monitor Screen Height (pixels)
35. Case Study: Account Signup Process Redesign
100%
100%
Biggest
80%
drop
% of Users
62.3%
58.8%
60%
50.9%
40% 34.4% 32.7%
20%
0%
Sign in / Account Cash vs. 5 Partner 3 Partner
Registration Type Margin Pages Pages
Copyright © 2008 Olsen Solutions LLC
36. Analysis of Sign In/Registration Flow
Open
Account
55%
44% Register Registration (24% of Total)
Process
45% drop off
64%
(20% of total)
of Total Account
36% overall Selection
83% 30% drop off for
56% (46% of Total) (14% of Total) this step
Sign in
Forget 70% Change 80%
Password (32% of Total) Password (26% of Total)
17% drop off 20% drop off
(10% of total) (6% of total)
Copyright © 2008 Olsen Solutions LLC
37. Redesigned User Flow Improved
Registration Conversion Rate
Abandonment Rate (7 Day Moving Average)
Steps 1-2
80%
70%
Abandonment Rate (7 Day Moving Average)
60%
50%
40%
30% Released 37% improvement
New Design in conversion rate
20%
10%
0%
10/14/02
10/21/02
10/28/02
11/11/02
11/18/02
11/25/02
12/16/02
12/23/02
12/30/02
10/7/02
11/4/02
12/2/02
12/9/02
1/13/03
1/20/03
1/6/03
Copyright © 2008 Olsen Solutions LLC
38. Product Management by Numbers
Cheat Sheet
Define what success means
Customer value proposition
Equation of your business
Instrument your site and track key metrics
Identify opportunities and prioritize by ROI
Launch, learn, and iterate
Copyright © 2008 Olsen Solutions LLC
40. Questions? www.yourversion.com
dan@yourversion.com
40 Copyright © 2008 Olsen Solutions LLC
Copyright