the lean product playbook by dan olsen
TRANSCRIPT
March 2015
Copyright © 2015 Olsen Solu7ons
My Background n Educa7on
n Engineering background n Stanford MBA n Web development and UX design
n Deep Product Management Experience n Submarine design n Led Quicken Product Management at Intuit n Led Product Management at Friendster n CEO & Cofounder of YourVersion, “Pandora for your news” n PM consultant: Box, YouSendIt, Medallia, One Medical
Slides at hTp://slideshare.net/dan_o
What is Product-‐Market Fit?
The Lean Product Process
The Lean Product Process
1. Determine your target customer 2. Iden7fy underserved customer needs 3. Define your value proposi7on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers
Copyright © 2015 Olsen Solu7ons
Transporta7on 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 Dis7nct Needs High-‐level need: Target Customer:
Detailed needs:
Ideal Product:
Soccer Mom Speed Demon
The Lean Product Process
1. Determine your target customer 2. Iden7fy underserved customer needs 3. Define your value proposi7on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers
Copyright © 2015 Olsen Solu7ons
n Russians: pencil
n NASA: space pen ($1 M R&D cost)
Example: n Ability to write in space (zero gravity)
Problem Space vs. Solu7on Space n Problem Space
n A customer problem, need, or benefit that the product should address
n A product requirement
n Solu7on Space n A specific implementa7on to address the need or product requirement
Copyright © 2015 Olsen Solu7ons
Problem Space vs. Solu7on Space: Product Level
Problem Space (user benefit)
Solu7on Space (product)
TurboTax
TaxCut
Pen and paper
Prepare my taxes
File my taxes
Check my taxes
Maximize deductions
Reduce audit risk
Copyright © 2015 Olsen Solu7ons
Problem vs. Solu7on Space: Feature Level Problem Space
Solu7on Space
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
Copyright © 2015 Olsen Solu7ons
Priori7zing Customer Needs: Importance vs. Sa7sfac7on
Impo
rtance of U
ser N
eed
User Sa7sfac7on with Current Alterna7ves
Compe77veMarket Opportunity
Low High
Low
High
Not Worth Going Aher
Copyright © 2015 Olsen Solu7ons
Kano Model: User Needs & Sa7sfac7on User Sa7sfac7on
User Dissa7sfac7on
Performance (more is beTer)
Delighter (wow)
Need not met
Need fully met
Must Have
Needs & features migrate over 7me
Copyright © 2015 Olsen Solu7ons
Copyright © 2015 Olsen Solu7ons
Importance vs. Sa7sfac7on Ask Users to Rate for Each Feature
Recommended reading: “What Customers Want” by Anthony Ulwick
Bad
Great
The Lean Product Process
1. Determine your target customer 2. Iden7fy underserved customer needs 3. Define your value proposi7on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers
Copyright © 2015 Olsen Solu7ons
What is Your Value Proposi7on?
n Which user benefits are you providing? n How are you beTer than compe7tors? Compe&tor A Compe&tor 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 -‐ -‐
Delighter Benefit 2 -‐ -‐ Y
Copyright © 2015 Olsen Solu7ons
The Lean Product Process
1. Determine your target customer 2. Iden7fy underserved customer needs 3. Define your value proposi7on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers
Copyright © 2015 Olsen Solu7ons
What is an MVP?
Courtesy of Jussi Pasanen See Aaaron Walter’s book Designing for Emo-on Copyright © 2015 Olsen Solu7ons
Breaking Features Down into Chunks
Copyright © 2015 Olsen Solu7ons
Must Have 1
Performance 1
Delighter 1
Delighter 2
Must Have 2
Performance 2
Performance 3
Benefits:
M1A P1A D1A D2A M2A P2A P3A
Features:
P1B D1B D2B P2B P3B
P2C P1C
P1D
D1C
Product Roadmap: Features by Version or Time
Copyright © 2015 Olsen Solu7ons
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
P1A P1B
P2A P2B
P3A
D1A D1B
D2A MVP
candidate
The Lean Product Process
1. Determine your target customer 2. Iden7fy underserved customer needs 3. Define your value proposi7on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers
Copyright © 2015 Olsen Solu7ons
The UX Design Iceberg
Copyright © 2015 Olsen Solu7ons
What most people see and react to
What good product people think about
Gelng Customer Feedback: Problem Space vs. Solu7on Space
n Customers CAN’T ar7culate problem space n Customers CAN react to solu7on space n That’s why you need something tangible to show to customers to get good feedback
Copyright © 2015 Olsen Solu7ons
Design Ar7facts: Interac7vity vs. Fidelity
Copyright © 2015 Olsen Solu7ons
Hand sketch
Interac7vity
Fidelity
Interac7ve Prototype
Sta7c Wireframe*
Clickable Wireframe*
Mockup
Clickable Mockup**
* Balsamiq: balsamiq.com ** InVision: invisionapp.com
Design Tools: Fidelity vs. Effort
Copyright © 2015 Olsen Solu7ons
Hand sketch D
esig
n Fi
delit
y
Effort to Create Artifact
Sketch
Balsamiq 1
2
3
Designers
All Product People
Why You Should Wireframe
n In case you don’t have UX designer (ohen) n To clarify and refine your thinking:
n Informa7on Architecture, layout, naviga7on
n To communicate your ideas to others n Modern tools make it easy and fast
Copyright © 2015 Olsen Solu7ons
The Lean Product Process
1. Determine your target customer 2. Iden7fy underserved customer needs 3. Define your value proposi7on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers
Copyright © 2015 Olsen Solu7ons
What Are You Going to Get Feedback & Learnings About?
Problem Space (your mental model)
Solu7on Space (what users can react to)
Customer Understanding
(needs & preferences)
Feature Set
UI Design Messaging
Copyright © 2015 Olsen Solu7ons
“Ramen” User Feedback for Startups
n Anyone can do it! n Ingredients:
n Solu7on-‐space product/mockup to test n 1 customer (with laptop if tes7ng code) n 1 desk n 1 person to conduct the session n Pen and paper n Op7onal note-‐taker and observers
Copyright © 2013 Olsen Solu7ons
Typical Format for User Tes7ng Session n 5 -‐ 10 min: Ask ques7ons to understand user needs and solu7ons they currently use
n 30 -‐ 50 min: User feedback n Show user product/mockup n Non-‐directed as much as possible n When necessary, direct user to aTempt to perform a specific task
n 5 -‐ 10 min: Wrap-‐up n Answer any user ques7ons that came up n Point out/explain features you want to highlight n Ask them if they would use the product
Copyright © 2015 Olsen Solu7ons
Dos & Don’ts of User Tes7ng Sessions n Do
n Explain to the user: n Their feedback will help improve the product n Not to worry about hur7ng your feelings n “Think Aloud Protocol”
n Ask user to aTempt the task, then be a fly on the wall n Ask non-‐leading, open-‐ended ques7ons n Take notes and review them aherwards for take-‐aways
n Don’t n Ask leading or close-‐ended ques7ons n “Help” the user or explain the UI (e.g., “click over here”) n Respond to user frustra7on or ques7ons (un7l test is over) n Get defensive n Blame the user
Copyright © 2015 Olsen Solu7ons
Copyright © 2015 YourVersion
Itera7ng Your Product Vector Based on User Feedback in Solu7on Space Problem Space
(your mental model) Solu7on Space
(what users can react to)
Customer Feedback
Mockups / Code
Copyright © 2015 Olsen Solu7ons
Problem Space
Solu7on Space
Copyright © 2015 Olsen Solu7ons
Copyright © 2015 Olsen Solu7ons
Case Study on Product-‐Market Fit: Marke7ngReport.com
Product-‐Market Fit Case Study: Marke7ngReport.com
n My consul7ng client (CEO) had an idea for a new product
n Team: me, CEO, head of marke7ng, UI design consultant
n Goal: n Validate product-‐market fit quickly, cheaply without wri7ng a single line of code
n Determine if there was a business opportunity here
Copyright © 2015 Olsen Solu7ons
Product-‐Market Fit Case Study: Developing Product Concept
n Product Concept was “marke7ng report” that let consumers control the direct mail that they receive
n Concept was fuzzy with various components, so I broke it into 2 different “flavors”: #1 “Marke7ng Shield”: Service to reduce/stop junk mail #2 “Marke7ng Saver”: Opt in & receive money-‐saving offers
Copyright © 2015 Olsen Solu7ons
Clustering Poten7al User Benefits to Create Product Concepts
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
“Shield” Concept “Saver” Concept
Copyright © 2015 Olsen Solu7ons
Copyright © 2015 Olsen Solu7ons
Copyright © 2015 Olsen Solu7ons
n Telephone recruit of prospec7ve customers n Wrote phone-‐screen ques7onnaire to create rough target customer segmenta7on n Wanted users who work full-‐7me & use internet n Fit for opt-‐in offers: use coupons, Costco membership n Fit for an7-‐junk mail: use paper shredder, block caller ID
n Paid each person $75 n Scheduled 3 groups of 2 or 3 people to discuss each product concept for 90 minutes
n Moderated each group through the paper mockups to hear their feedback
Product-‐Market Fit Case Study: Recrui7ng People
Copyright © 2015 Olsen Solu7ons
Product-‐Market Fit Case Study: Findings on Concepts &User 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
Legend
Strong appeal
Some appeal
Low appeal
“Shield” Concept “Saver” Concept
Copyright © 2015 Olsen Solu7ons
Product-‐Market Fit Case Study: Learnings from Research
n Learned that “Shield” (an7-‐junk mail) concept was stronger than “Saver”
n People didn’t like many of the “Saver” concept components
n Learned users’ concerns / ques7ons about “Shield” concept
n Refined “Shield” concept: n Removed irrelevant components n Improved messaging to address user concerns / ques7ons
n Validated revised “Shield” concept with quick 2nd round of tests n No customer concerns n Clear willingness to pay
Copyright © 2015 Olsen Solu7ons
Copyright © 2015 Olsen Solu7ons
Product-‐Market Fit Case Study: Summary
n 4 weeks from 1st mee7ng to validated product concept with zero coding
n Reasonable cost n 1 round of itera7on on product concept n Iden7fied compelling concept that users are willing to pay $10/month for
n Trimmed away non-‐valuable pieces n You can achieve similar results
Copyright © 2015 Olsen Solu7ons
The Lean Product Process
1. Determine your target customer 2. Iden7fy underserved customer needs 3. Define your value proposi7on 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 © 2015 Olsen Solu7ons
Laura Klein: April 14 in Palo Alto Author of UX for Lean Startups How to use Qualita&ve & Quan&ta&ve Research
Copyright © 2015 Olsen Solu7ons
The Lean Product Playbook
n Published by Wiley n Comes out May 26th n Hardback & ebook n Available for preorder on Amazon: hTp://7ny.cc/LPP
Questions? @danolsen olsensolu7ons.com slideshare.net/dan_o meetup.com/lean-‐product Book: hTp://7ny.cc/LPP