I gave this talk at Traction Conference in Vancouver on June 22, 2016.

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

3. The 3 Phases of Your Product
Copyright © 2016 @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

4. Quan/ta/ve vs. Qualita/ve Learning
Qualita/ve Quan/ta/ve
Oprah Spock

5. The 3 Phases of Your Product
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
Mainly
Qualita/ve
AFTER your
product is live
Phase 2
Improve product-
market fit
Qualita/ve &
Quan/ta/ve
Goal:
Methods:
Phase 3
What phase are you in?

6. The 3 Phases of Your Product
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
Mainly
Qualita/ve
AFTER your
product is live
Phase 2
Improve product-
market fit
Qualita/ve &
Quan/ta/ve
Goal:
Methods:
Phase 3
What phase are you in?

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

8. What is
Product-Market
Fit?

9. The Product-Market Fit Pyramid

10. The Product-Market Fit Pyramid

11. The Product-Market Fit Pyramid

12. The Product-Market Fit Pyramid

13. The Lean Product Process

14. The Lean Product Process

15. The Lean Product Process

16. The Lean Product Process

17. The Lean Product Process

18. The Lean Product Process

19. The Lean Product Process

20. The Lean Product Process

21. Copyright © 2016 @danolsen

22. 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
Copyright © 2016 @danolsen

23. Transporta/on 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 Dis/nct Needs
High-level need
Target Customer
Detailed needs
Ideal Product
Soccer Mom Speed Demon

24. 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
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

27. Priori/zing Needs: Importance vs. Sa/sfac/on Importance of User Need
User Sa/sfac/on with Current Alterna/ves
Compe//ve
Market Opportunity
Low High
Low
High
Not Worth Going AMer
Copyright © 2016 @danolsen

28. Crea/ng Customer Value
Copyright © 2016 @danolsen
Importance of User Need
User Sa/sfac/on with the Product
Low High
Low
High
Area =
Customer
Value
Created
Area =
Opportunity
to Create
Customer
Value

29. Crea/ng Customer Value
Copyright © 2016 @danolsen
Importance of User Need
User Sa/sfac/on with the Product
Low High
Low
High
Area =
Customer
Value
Created
Area =
Opportunity
to Create
Customer
Value

30. Users Rated 13 Key Features in a Survey
Recommended reading:
“What Customers Want” by Anthony Ulwick
Great
Copyright © 2016 @danolsen
Bad

31. Kano Model: User Needs & Sa/sfac/on
User Sa/sfac/on
User Dissa/sfac/on
Performance
(more is beNer)
Delighter (wow)
Need
not met
Need
fully met
Must Have
Needs & features
migrate over /me
Copyright © 2016 @danolsen

32. 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
Copyright © 2016 @danolsen

33. What is Your Value Proposi/on?
n Which user benefits are you providing?
n How are you beNer than compe/tors?
Must Have Benefit 1
Performance Benefit 1
Performance Benefit 2
Performance Benefit 3
Delighter Benefit 1
Delighter Benefit 2
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

37. 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
Copyright © 2016 @danolsen

38. What is an MVP?
Courtesy of Jussi Pasanen
See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen

39. What is an MVP?
Courtesy of Jussi Pasanen
See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen

40. What is an MVP?
Courtesy of Jussi Pasanen
See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen

41. What is an MVP?
Courtesy of Jussi Pasanen
See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen

42. 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
Copyright © 2016 @danolsen

43. The UX Design Iceberg
Copyright © 2016 @danolsen
What most
people see
and react to
What good
product teams
think about

44. Itera/ve Design & Test Workflow
Copyright © 2016 @danolsen
Hand
sketches
Interac/vity
Fidelity
Clickable
Wireframes*
Clickable
Mockups**
Live
Product
Test Test
Test
* Balsamiq: balsamiq.com
** InVision: invisionapp.com

46. 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
Copyright © 2016 @danolsen

47. The Lean Product Process:
Marke/ngReport.com Case Study
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

51. 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

53. 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

56. If you could only track 1 metric to
measure your Product-Market Fit,
which metric would it be?
Copyright © 2016 Olsen Solu/ons

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

58. Cohort Analysis
Copyright © 2016 Olsen Solu/ons

59. Improving Reten/on Rate Over Time=
Increasing Product-Market Fit

60. Improving Reten/on Rate Over Time=
Increasing Product-Market Fit

61. Improving Reten/on Rate Over Time=
Increasing Product-Market Fit

63. The 3 Phases of Your Product
Copyright © 2016 @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

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

65. Questions?
@danolsen
dan-olsen.com
slideshare.net/dan_o
meetup.com/lean-product
Book: hNp:///ny.cc/LPP