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marketfit.com alan@marketfit.com
@A_Albert
Your Fastest Path to Product-Market Fit
Presentation copyright © 2016 Alan Albert All rights reserved
Alan Albert
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You
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your problemsas a product manager
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C O N T E N T
ADVISORYCONTROVERSIAL IDEAS
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Product Management Marketing
Development Customer Service
Manufacturing Design
Quality Assurance Strategy
CEO
B2B Products & Services B2C Products & Services
Startups Bootstrapped
Venture-funded SMB
Fortune 500
Cognitive Psychology Computer Science
$1B
Advisor Investor Director Chair
Databases Personal productivity Business intelligence
E-commerce Financial services Social networking
Education Knowledge Management Home Grocery Shopping
Online security Real estate software
Video software Scheduling software
Process Control Non profits Publishing
Brick & mortar retail Personal computing Enterprise software
SaaS / Cloud computing Industrial technology
Software development UI / UX
Information architecture Input / output devices
Mobile devices Corporate strategy
Corporate partnerships Marketing automation Online marketplaces
Pricing strategy Consulting services
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Alan Albert marketfit.com
alan@marketfit.com @A_Albert
Presentation copyright © 2016 Alan Albert All rights reserved
Strategic Services for Measurable Growth
MARKETFIT
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Alan Albert marketfit.com
alan@marketfit.com @A_Albert
Presentation copyright © 2016 Alan Albert All rights reserved
Strategic Services for Measurable GrowthMARKETFIT
Advisory Services Consulting ServicesMarket Research Pricing Strategy
Innovation Strategy
Corporate Strategy Product Strategy
Marketing Strategy
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Agenda
State of the Art Customer Values
Maximum Value Proposition
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Cute Friendly Soft Fur Fetch Potty Trained
$20
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Asking customers if they like your product is like asking “is my puppy cute?”.
@A_AlbertMarketFit.com
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Credit: Eric Ries
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IDEAS
BUILD
PRODUCT
MEASURE
DATA
LEARN
Credit: Eric Ries
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Learning starts too late
Waterfall
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IDEAS
BUILD
PRODUCT
MEASURE
DATA
LEARN
This is the expensive part This is the important part
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IDEAS
BUILD
PRODUCT
MEASURE
DATA
LEARN
Learning starts too late
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Measuring how customers react to your idea won’t tell you what they really care about.
@A_AlbertMarketFit.com
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Why build before you measure?
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Why do Lean companies build first, then measure? What if we measured first?
@A_AlbertMarketFit.com
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Disprovable Hypothesis
Collect evidence aiming to disprove it.
Scientific Method
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Vague Hypothesis
Collect evidence that supports it.
Lean gone rogue
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If you’re working to validate your hypothesis, you’re doing it wrong.
@A_AlbertMarketFit.com
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no one uses our product
Product Death Cycle
ask customers what features are missing
build the missing features
Credit: Andrew Chen
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Iterating to add new features won’t suddenly make people want your entire product.
@A_AlbertMarketFit.com
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>80% Fail
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If the Lean approach was were truly scientific, shouldn’t the failure rate be less than 80%?
@A_AlbertMarketFit.com
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Why fail faster? Why not find a way tosucceed sooner?
@A_AlbertMarketFit.com
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5 Day Design Sprint
1 2 3 4 5day
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5 Day Design Sprint
1day
who are the users what are their needs what is the context competitor review formulate strategy
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You can’t gain understanding of your customers by talking to your co-workers
@A_AlbertMarketFit.com
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? ? ?? ?
? ?
? ?
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?
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“People don’t buy what you do; people buy why you do it.”
–Simon Sinekwhy
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WHATHOW
WHY
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Lean starts with your idea — the what — aiming to discover the why. Why not start with why?
@A_AlbertMarketFit.com
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Func
tiona
lity
Time
Market Need
Sustaining Innovation
Disruptive Innovation
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What makes a product disruptive? Disruptive products appeal to a different set of
customer values.
@A_AlbertMarketFit.com
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Customer Values
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Values = motivations
goals concerns emotions
what people care about the “why” that makes them buy
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PRODUCT
VALUES
FEATURES
BENEFITS
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PRODUCT
VALUES
FEATURES
BENEFITS
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Customer Values Define Product Value
Product Alignment with Your Customers’ Values
100%
0%
-100%
Value of Your OfferingNegative Maximum
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Top 20 Reasons Startups Fail
Credit: CB Insights
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Top 20 Reasons Startups Fail, Unrelated to Values
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Top 20 Reasons Startups Fail, Related to Values
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Values hard to change trigger emotion discoverable measurable
You can easily change ideas
products or services markets or segments
positioning and messaging
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Customer values are discoverable, measurable and quantifiable. Why skip this step?
@A_AlbertMarketFit.com
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80%NO Optical Drive NO Ethernet Port NO Media Card Slot NO replaceable battery ONLY 1 USB slot SLOWEST processor
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For those who dream bigSurprising style, advanced tech
Feels fast and looks coolImpressive efficiency
Unrivalled luxuryUnrelenting performance
Penchant for powerDemands attention
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precisely what you need in places you want to go
for business or play best available rate guarantee
comfortably familiar rooms free Wi-Fi
convenient dining always included
explore the world discover local experiences
sense of belonging community and connections
sharing
unique accommodations trust & safety
more affordable
support neighborhood businesses increase local tax revenue
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Market SegmentGeographic
Demographic Behavioural
Psychographic Occasional By Benefits
Cultural
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New definition of Market Segment: Customers who share the same set
of strongly held values.
@A_AlbertMarketFit.com
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Maximum Value PropositionThe New
The “why” that makes them buy
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PRODUCT MARKET
MESSAGE
PRODUCT -MARKET
FIT
Maximum Value Proposition
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“Product-market fit is the only thing that matters.”–Marc Andreessen
40%Product-Market Fit
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Customer values exist independent of your product. Discover them independent of your product.
@A_AlbertMarketFit.com
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Don’t build an MVP until you discover the Maximum Value Proposition. It’s your first MVP.
@A_AlbertMarketFit.com
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Cognitive Biases Your worst enemy
>150 Biases
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Confirmation Bias We tend to search for, attend to and trust
information that confirms our beliefs or hypotheses
Wikipedia “List of Cognitive Biases”
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http://nyti.ms/22y5HEK
N.Y. / REGION
After Funeral and Cremation, a Shock:The Woman in the Coffin Wasn’t MomBy MICHAEL WILSON MARCH 21, 2016
After a long battle with cancer, Val-Jean McDonald, mother of eight sons, with morethan 20 grandchildren, almost as many great-grandchildren and three great-great-grandchildren, died on Dec. 18 at the age of 81.
Her funeral, 11 days later, attracted scores of mourners to Union Baptist Churchin Harlem: her sons, from Manhattan, New Jersey, Georgia, Texas and Australia;other relatives and friends; and people who had never met her but knew herchildren.
They all filed past the open coffin, seeing familiar remnants of Ms. McDonald’slife: a favorite pink blouse and white suit, and her finest jewelry.
“Why did they cut off all her hair?” a son, Errol McDonald, 57, remembersthinking. “Maybe it’s the cancer.” He bent and kissed her.
But sometimes children see what adults cannot. Adults rationalize. Children callit like it is.
“My 10-year-old son said, ‘Daddy, that’s not Grandma,’” recalled Mr. McDonald,a school maintenance worker in Manhattan. “I said, ‘Yes, that’s what happens,’” hetold the boy, explaining that people can look different in death.
The next day, the family attended Ms. McDonald’s cremation at WoodlawnCemetery.
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Credit: Strategyzer
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Gain Creator
Pain Reliever
Product Service
Job To Be Done
Gains
Pains
Credit: Strategyzer
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QUALITATIVE RESULTSVALUE FRAMEWORK
Why Buy?(Gains)
Why Leave Status Quo? (Pains)
Why Stay with Status Quo? (Retain)
Why Not Buy?(Refrain)
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Gain Creator
Pain Reliever
Product Service
Job To Be Done
Gains
Pains
Credit: Strategyzer
Bias
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Gain Creator
Pain Reliever
Product Service
Job To Be Done
Gains
Pains
x
xCredit: Strategyzer
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1 2 3 4 5
IDEAS
BUILD
PRODUCT
MEASURE
DATA
LEARN
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Discovering Values
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Value Discovery™
Research
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Value Discovery Research
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Value Discovery Research
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Typical Market Research Value Discovery
Tactical, one-time Strategic, long-term
Biased, self-justifying Valid, reliable
Interesting, not clearly actionable Relevant, immediately actionable
Time-consuming, expensive Time-efficient, cost-effective
Risky: might not be useful Low risk: useful by design
How is Value Discovery different?
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Validating the Minimum Viable Product
Discovering the Maximum Value Proposition
Starts with your ideaProblem hypothesis testingSolution hypothesis testingGoal is to validate your idea
Build minimum viable product
Starts with the customerValue discovery
Value measurementGoal is to gain empathyDiscover maximum value
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The importance of empathy
do more than solve problems
create products that intimately connect with your customers’ identity
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Structured, multi-step research framework
Focused on discovering and quantifying values
Designed to identify and minimize bias
Conducted by an unbiased researcher
Answer strategic questions based on data
What is Value Discovery Research?
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1:1 in-depth interviews
Small sample size
Structured sequence
Focused on understanding top values
Qualitative and quantitative
How does Value Discovery work?
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Learn, don’t proveAsk about their actions and thinking — not features
Sequence from general to specificAsk open-ended questions — no Yes/No or A/B choices
Encourage unexpected answers — no “leading the witness”Carefully phrase your questions in advance, to avoid bias
Get feedback to identify your biased questionsIn interview, drill down to what’s important to them — not you
Seek empathy
Value Discovery research tips
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Maximum Value Proposition for
Product Innovation Product positioning
Branding Road mapping
Market segmentation Product line extensions
Pricing
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Real Estate Financial Services
Value Discovery™ Research Case Studies
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Real Estate Financial Services
Long lists of detailed requirements Wireframes for MVP
Before Value Discovery After Value Discovery™
“If you believe that you’re the subject matter expert, then you’re doing it wrong.”
Workflow: Document management Unified view of all documents
Prospect interest, but no commitment Seeking contractor to build MVP
Fewer requirements, simpler features Mockups illustrating “New MVP”
Dashboard: Deal management Different views for different roles
4 customer commitments $950k/year @ $50/transaction Investment to launch and grow
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Charity Marketplace
Value Discovery™ Research Case Studies
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VALUE DISCOVERY PROCESSVALUE HYPOTHESES | ALLManagement Reporting Separation Decision-support Allocation Privacy/Anonymity Control Guilt Scope Discovery Taxes Matching Fees Fundraising Community Gifting Kinship Social Trust
Manage all your charitable giving in one place Easy access to charitable giving activity (what you gave to, how much, when etc) Of Donating vs Allocating money to a charity Deciding what causes/charities to support Deciding how much money to allocate to which cause Keeping your information private and/or anonymous Over how much communication you want Feeling ok saying "no", due to better control over "yesses" The ability to give to any charity in Canada all in one place Discover opportunities to support causes you care about Simplified tax admin and tax filing The ability to double your donation (matching dollars) More $ to the charity due to low fees Fundraising together (via a giving group) Feeling a part of your group or company’s community Ability to send charity $ for your friends to allocate, to say thanks, support them, etc. Supporting friends & family (already on Chimp) Ability to show all your friends that you've donated Confidence that you're giving to a legitimate charity
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QUANTITATIVE RESULTSVALUE HYPOTHESES – ALLManagement Reporting Separation Decision-support Allocation Privacy/Anonymity Control Guilt Scope Discovery Taxes Matching Fees Fundraising Community Gifting Kinship Social Trust Automation
Manage all your charitable giving in one place Easy access to charitable giving activity (what you gave to, how much, when etc) Of Donating vs Allocating money to a charity Deciding what causes/charities to support Deciding how much money to allocate to which cause Keeping your information private and/or anonymous Over how much communication you want Feeling ok saying "no", due to better control over "yesses" The ability to give to any charity in Canada all in one place Discover opportunities to support causes you care about Simplified tax admin and tax filing The ability to double your donation (matching dollars) More $ to the charity due to low fees Fundraising together (via a giving group) Feeling a part of your group or company’s community Ability to send charity $ for your friends to allocate, to say thanks, support them, etc. Supporting friends & family (already on Chimp) Ability to show all your friends that you've donated Confidence that you're giving to a legitimate charity Ability to automate monthly charitable contributions
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Charity Marketplace
Value Discovery™ Research Case Studies
"Though Value Discovery Research, we gained so much knowledge about our target audience. We’re now planning to repeat this methodology for each of our market segments."
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English Language Centers
Value Discovery™ Research Case Studies
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Location Price
Language Recommendation
Safety Easy access to visas
Accreditation of courses Support for international students
Lifestyle Students from same country are studying there
Employment prospects Admission requirements
Scholarship and financial aid Other
Links with local institutions Performance in ranking/league tables
Transfer of credits policy
Industry Market Surveys
Factors of Importance in Language School Choice
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Location Price
Language Recommendation
Safety Easy access to visas
Accreditation of courses Support for international students
Lifestyle Students from same country are studying there
Employment prospects Admission requirements
Scholarship and financial aid Other
Links with local institutions Performance in ranking/league tables
Transfer of credits policy
Value Discovery™Industry Market Surveys
Confidence to communicate globally Enhance career opportunities Make friends and gain experience
Factors of Importance in Language School Choice
Maximum Value Proposition
Price not a major factor
Learning English not the goal
Opportunities to connect after class Easy access to social activities Few students from my country No other country dominant
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Language School
Entire market experiencing decreasing volume, lower margins
Before Value Discovery After Value Discovery™
“Value Discovery uncovered startling insights you simply can’t get with traditional market research, yielding quick wins. We’re coming back for more.”
Considering reducing price and margin to remain competitive
Implemented simple changes to pricing model, timetable, marketing
Decrease in volume halted
50% increase in year-over-year profit
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Value Discovery™ Research Case StudiesMarketplace for short-term commercial real estate
“The research disproved our assumptions about user’s values just weeks before development started. It changed our entire product roadmap for the better.”
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The ROI of Understanding Values
Faster sales cycle More customers More revenue per sale More customer retention More referrals
Lower cost of development Lower cost of acquisition Lower risk of failure
Cost Savings
Revenue / Profit
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to youas a product manager
The Value of Understanding Values
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Market Problems
Win/Loss Analysis
Distinctive CompetenceCompetitive Landscape
Technology Assessment
Market DefinitionDistribution Strategy
Product Portfolio
Product Roadmap
Business PlanPricing
Build vs Buy
PartnersProfitability
Innovation
Positioning
Buying Process
Buyer Personas
User Personas
Requirements
User Scenarios
Status Dashboard
Marketing Plan
User EngagementUser RetentionProgram Effectiveness
Launch Strategy
Leadership
Lead Generation
ReferralsReferences
Sales Process
Collateral
Sales Tools
Channel Training
Presentations
Demos
Calls
EventsSupport
Staffing
OVERLOAD
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Value Discovery™
Value Proposition
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Value Discovery™
Value Proposition
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Value Discovery™
Value Proposition
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Design Process
Credit: Damien Newman
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Iterative Process
Unknown values Known values
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Unknown values Known values
Start here
Fastest Path
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Will you keep iterating, hoping for product-market fit? Or would you rather first discover why your customers buy?
?@A_AlbertMarketFit.com
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Thank You
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marketfit.com alan@marketfit.com
@A_Albert
Your Fastest Path to Product-Market Fit
Presentation copyright © 2016 Alan Albert All rights reserved
Alan Albert
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