How to Create Products for Growth by Dan Olsen
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This document summarizes Dan Olsen's presentation on creating products for growth. It discusses the three phases of a product - before product-market fit, achieving product-market fit, and growth. It outlines the lean product process of determining customer needs, defining value propositions, specifying MVP features, testing prototypes with customers. Retention rate is identified as the key metric for measuring product-market fit, as improving retention over time indicates increasing fit.
How to Create Products for Growth by Dan Olsen
- 1. How to Create Products for Growth DAN OLSEN JUNE 22, 2016
- 2. My Background Educa/on n Engineering background n Stanford MBA n UX design and coding Experience n Led Quicken Product Management at Intuit n CEO & Cofounder, TechCrunch award winner YourVersion n PM consultant: Box, Facebook, MicrosoM, Medallia n Founder: Lean Product & Lean UX Meetup Silicon Valley TwiNer: @danolsen My slides: hNp://slideshare.net/dan_o Copyright © 2016 @danolsen
- 7. That’s Why I Wrote n Book giveaway on TwiNer n Tweet: include @danolsen n Hashtags #leanstartup #prodmgmt #growth n hNp:///ny.cc/LPP Copyright © 2016 @danolsen
- 25. n Russians: pencil n NASA: space pen ($1 M R&D cost) Example n Ability to write in space (zero gravity) Problem Space vs. Solu/on Space Problem Space n A customer problem, need or benefit that the product should address n A product requirement Solu/on Space n A specific implementa/on to address the need or product requirement Copyright © 2016 @danolsen
- 26. Problem vs. Solu/on Space: Product Level Problem Space (user benefits) Solu/on Space (product) TurboTax TaxCut Pen and paper Prepare my taxes File my taxes Check my taxes Maximize deductions Reduce audit risk Copyright © 2016 @danolsen
- 34. What is Your Value Proposi/on? n Which user benefits are you providing? n How are you beNer than compe/tors? Compe.tor A Compe.tor B You Must Have Benefit 1 Performance Benefit 1 Performance Benefit 2 Performance Benefit 3 Delighter Benefit 1 Delighter Benefit 2 Copyright © 2016 @danolsen
- 35. What is Your Value Proposi/on? n Which user benefits are you providing? n How are you beNer than compe/tors? Compe.tor A Compe.tor B You 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 - - Copyright © 2016 @danolsen
- 36. What is Your Value Proposi/on? n Which user benefits are you providing? n How are you beNer than compe/tors? 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 © 2016 @danolsen
- 48. 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 Copyright © 2016 @danolsen
- 49. Mapping Out Customer 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 “Marke/ng Shield” Concept “Marke/ng Saver” Concept Copyright © 2016 @danolsen
- 52. Learning from First Wave of User Tests 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 © 2016 @danolsen
- 54. 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 Copyright © 2016 @danolsen
- 57. 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 flattens or goes to zero
- 64. 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 Iterate: § Hypothesize-Design-Test-Learn loop § Improve product-market fit Copyright © 2016 @danolsen