Dan Olsen The Lean Product Playbook PDF

A Playbook
For Achieving
Product-
Market Fit
DAN OLSEN
MAR 2, 2016
My Background
Educa/on
n  Engineering background
n  Stanford MBA
n  UX design and coding

Experience
n  Led Product Management at Quicken (Intuit) & at Friendster
n  CEO & Cofounder, TechCrunch award winner YourVersion
n  Product consultant: Box, Facebook, MicrosoO
n  Organizer: Lean Product & Lean UX Meetup Silicon Valley

TwiQer: @danolsen
My slides: hQp://slideshare.net/dan_o

Copyright © 2016 @danolsen
Product Lean
Mgmt Startup

What is “Lean Startup” all about?
n  Ar/culate hypotheses
n  Iden/fy fastest way to test
n  Keep scope small:

minimum viable product (MVP)
n  Test with customers
n  Learn and iterate
n  Achieve product-market fit
Sounds easy, right?

That’s Why I Wrote
n  Book giveaway on TwiQer
n  Tweet: include @danolsen
n  Hashtags
#leanstartup
#prodmgmt
#ux
n  hQp:///ny.cc/LPP

What is
Product-Market
Fit?
The Product-Market Fit Pyramid
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

Target Customer Has Dis/nct Needs
High-level need Transporta/on within 100 miles of my home
Soccer Mom Speed Demon
Target Customer

Soccer Mom Speed Demon
Detailed needs Carry kids & gear Go fast
Safety Looks cool
Fuel economy

Makes me look cool
Ideal Product


Problem Space vs. Solu/on Space

Problem Space Solu/on Space
n  A customer problem, need n  A specific implementa/on
or benefit that the product to address the need or
should address
product requirement
n  A product requirement

Example
n  Ability to write in space n  NASA: space pen
(zero gravity) ($1 M R&D cost)
n  Russians: pencil

Problem vs. Solu/on Space: Product Level
(user benefits) (product)
Prepare Pen and

my taxes paper
Check my File my TurboTax

taxes taxes
Maximize Reduce TaxCut

deductions audit risk

Problem vs. Solu/on Space: Feature Level
Help me Tax Interview
prepare taxes Wizard
Empowerment/ Reduce my Audit Risk

Confidence audit risk Analyzer
Check my Tax Return
return Error Checker
Save time Tax Data

preparing taxes Downloader
Save Time Save time filing Electronic Tax
taxes Return Filing
Maximize my Tax Deduction

Save Money tax deductions Finder
Priori/zing Needs: Importance vs. Sa/sfac/on
Importance of User Need
High
Compe//ve
Opportunity Market
Not Worth Going AOer
Low
Low High
User Sa/sfac/on with Current Alterna/ves
Importance of User Need Crea/ng Customer Value
High
Area =
Opportunity
Area = to Create
Customer Customer
Value Value
Created
Low
Low High
User Sa/sfac/on with the Product
Users Rated 13 Key Features in a Survey
Great
Bad
Recommended reading:
“What Customers Want” by Anthony Ulwick Copyright © 2016 @danolsen
Kano Model: User Needs & Sa/sfac/on
User Sa/sfac/on
Delighter (wow)
Performance
(more is beQer)
Need Need
not met fully met
Must Have
Needs & features

migrate over /me
User Dissa/sfac/on Copyright © 2016 @danolsen


What is Your Value Proposi/on?
n  Which user benefits are you providing?
n  How are you beQer than compe/tors?

Must Have Benefit 1
Performance Benefit 1
Delighter Benefit 1
Compe5tor A Compe5tor B You

Must Have Benefit 1

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 -
Delighter Benefit 2 - -

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

What is an MVP?
Courtesy of Jussi Pasanen

See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen

The UX Design Iceberg
What most
people see
and react to
What good
product teams
think about

Geqng Customer Feedback
Problem Space vs. Solu/on Space
n  Customers CAN’T ar/culate problem space
n  Customers CAN react to solu/on space
n  That’s why you need something tangible to

show to customers to get good feedback

Product Design Ar/facts
Live
Product
Interac/vity
Interac/ve
Prototype
Clickable Clickable
Wireframe* Mockup**
Hand Sta/c Mockup
sketch Wireframe*
Fidelity
* Balsamiq: balsamiq.com
** InVision: invisionapp.com
Itera/ve Design & Test Workflow
Live
Product
Interac/vity
Test
Clickable Clickable
Wireframes Mockups
Test Test
Hand
sketches
Fidelity

“Ramen” User Tes/ng Session
10 - 15 min: Warm Up and Discovery
n  Understand user needs, priori/es
n  Learn about solu/ons 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 ques/ons to gain understanding
5 - 10 min: Wrap up
n  Answer any ques/ons or issues that came up
n  Point out/explain features you want to highlight
n  Ask if they would use the product
Dos & Don’ts of User Tes/ng Sessions
Do
n  Explain to the user
n  Feedback will help improve the product
n  Not to worry about hur/ng your feelings
n  “Think Aloud Protocol”
n  Try to be a fly on the wall
n  Take notes and review them aOerwards for take-aways
Don’t
n  “Help” user or explain the UI (e.g., “click over here”)
n  Ask leading or close-ended ques/ons
n  Get defensive or blame the user
Itera/ng Between User Tes/ng Waves
All your hypotheses User reac/ons
Mockups / Code
Customer Feedback

Problem Solu5on
Space Space
The Lean Product Process:
Marke/ngReport.com Case Study

Marke/ngReport.com Case Study
n  My client (CEO) had a new product idea
n  Team: me, CEO, VP marke/ng, UI designer
n  Goals
n  See if business opportunity exists
n  Do so quickly and inexpensively (no coding)
n  “Marke/ng report” would let consumers

control the direct mail that they receive
n  Analogous to credit report

Mapping Out Customer Benefits
“Marke/ng Shield” “Marke/ng Saver”
Concept Concept
Reduce Find out what Money Compare Social

Junk Mail “they” know Saving Yourself Networking
about you Offers to Others
Save Marketing
Trees Report
Marketing Marketing
Score Profile

Recrui/ng Target Customers
n  Used customer research firm (panel)
n  Wrote screener to iden/fy target customers
n  Work full-/me
n  Fit for Saver: use coupons, Costco membership
n  Fit for Shield: use paper shredder, block caller ID
n  Offered $75 compensa/on

n  Scheduled 3 groups of 2 or 3 people for 90 min
n  Moderated each group through the mockups

Learning from First Wave of User Tests
“Shield” Concept “Saver” Concept
Reduce Find out what Money Compare Social

Junk Mail “they” know Saving Yourself Networking
about you Offers to Others
Save Marketing
Trees Report
Legend
Marketing Marketing
Score Profile Strong appeal
Some appeal
Low appeal
Summary of Case Study
n  4 weeks to validated product concept
n  1 round of itera/on
n  Zero coding
n  Reasonable cost
n  Customers willing to pay $10/month
n  Trimmed away non-valuable pieces
n  You can achieve similar results

Iterate:
§  Hypothesize-Design-Test-Learn loop
§  Improve product-market fit
Qualita/ve vs. Quan/ta/ve Learning
Qualita/ve Quan/ta/ve
Oprah Spock
Sean Ellis
Growth Expert
“The Increasing Overlap
of Product and Growth”
Mar 10th
Palo Alto
Questions?
@danolsen
dan-olsen.com
slideshare.net/dan_o
leanproductplaybook.com

Book: hQp:///ny.cc/LPP

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A Playbook

Copyright © 2016 @danolsen

n Iden/fy fastest way to test

n Keep scope small:

n Learn and iterate

Sounds easy, right?

n Tweet: include @danolsen

Copyright © 2016 @danolsen

Copyright © 2016 @danolsen

Copyright © 2016 @danolsen

Copyright © 2016 @danolsen

Prepare Pen and

Check my File my TurboTax

Maximize Reduce TaxCut

Copyright © 2016 @danolsen

Empowerment/ Reduce my Audit Risk

Save time Tax Data

Maximize my Tax Deduction

Not Worth Going AOer

Needs & features

User Dissa/sfac/on Copyright © 2016 @danolsen

Copyright © 2016 @danolsen

n How are you beQer than compe/tors?

n How are you beQer than compe/tors?

Compe5tor A Compe5tor B You

n How are you beQer than compe/tors?

Compe5tor A Compe5tor B You

Performance Beneﬁt 1 High Low

Performance Beneﬁt 2 Low High

Performance Beneﬁt 3 Med Med

n How are you beQer than compe/tors?

Compe5tor A Compe5tor B You

Performance Beneﬁt 1 High Low Med

Performance Beneﬁt 2 Low High Low

Performance Beneﬁt 3 Med Med High

Copyright © 2016 @danolsen

Courtesy of Jussi Pasanen

Copyright © 2016 @danolsen

Copyright © 2016 @danolsen

n Customers CAN react to solu/on space

n That’s why you need something tangible to

Copyright © 2016 @danolsen

Copyright © 2016 @danolsen

Copyright © 2016 @danolsen

Copyright © 2016 @danolsen

n “Marke/ng report” would let consumers

Copyright © 2016 @danolsen

Reduce Find out what Money Compare Social

Copyright © 2016 @danolsen

n Fit for Saver: use coupons, Costco membership

n Fit for Shield: use paper shredder, block caller ID

n Oﬀered $75 compensa/on

n Moderated each group through the mockups

Copyright © 2016 @danolsen

Reduce Find out what Money Compare Social

n Customers willing to pay $10/month

n Trimmed away non-valuable pieces

n You can achieve similar results

Copyright © 2016 @danolsen

n  Iden/fy fastest way to test

n  Keep scope small:

n  Learn and iterate

n  Tweet: include @danolsen

n  How are you beQer than compe/tors?

n  How are you beQer than compe/tors?

n  How are you beQer than compe/tors?

n  How are you beQer than compe/tors?

n  Customers CAN react to solu/on space

n  That’s why you need something tangible to

n  “Marke/ng report” would let consumers

n  Fit for Saver: use coupons, Costco membership

n  Fit for Shield: use paper shredder, block caller ID

n  Oﬀered $75 compensa/on

n  Moderated each group through the mockups

n  Customers willing to pay $10/month

n  Trimmed away non-valuable pieces

n  You can achieve similar results