In this presentation Frank shares: 1) How Restin went from operating pay-per-use robotic massage chairs on college campuses to helping PricewaterhouseCoopers engage attendees at SXSW. 2) How the lean startup method helped decrease time between pivots and the cost of acquiring validated learning. 3) What metrics are most important when deciding to pivot or persevere.
Text of Pivoting to Find Product / Market Fit - Frank V. Taylor, Lean Startup Circle DC
Pivot to Find Product / Market Fit Frank V. Taylor
@frankvtaylor#leandc Ideation
Iteration - I Problem: Need cheap / safe / legal stress relief
@frankvtaylor#leandc Customer: Students with $ on campus ID card
Solution: Pay-per-use massage chairs with ID card reader payment
system
MVP - I @frankvtaylor#leandc
Validated Learning 1 Assumption Tested: Students will use
massage chairs to relieve stress. @frankvtaylor#leandc Experiment:
1 chair in library for 9 days (free) Result: 550 uses. Assumption
Validated
Validated Learning 2 Assumption: Students will pay for the
service. @frankvtaylor#leandc Experiment: Surveyed 170 users.
Result: 50% reported willingness to pay. Assumption Validated (but
suspect)
Important! People are terrible predictors of their own future
behavior. @frankvtaylor#leandc
Working* Product @frankvtaylor#leandc
Iteration - II.a Problem: Stressed out students & negative
perception on campus @frankvtaylor#leandc Customer: Student
Assembly w/ big slush fund Solution: Sponsor free massages in the
library during final exam week
Validated Learning 1 Assumption: Student Assembly will pay to
help students relax & improve image on campus.
@frankvtaylor#leandc Experiment: Pitched sponsorship. Result: Paid
$8K. Assumption Validated
Iteration - II.b Problem: Money to spend? @frankvtaylor#leandc
Customer: Student Center facility managers Solution: Provide free
massages in the student center all year
Validated Learning 2 Assumption: This is a repeatable business
model. @frankvtaylor#leandc Experiment: Pitched to 50 other
schools. Result: 0/50 buy. Assumption Invalidated
Important! Test assumptions about customer behaviors that drive
growth. @frankvtaylor#leandc
Iteration - II.a Problem: Stressed out students & negative
perception on campus @frankvtaylor#leandc Customer: Student
Assembly w/ big slush fund Solution: Sponsor free massages in the
library during final exam week
Iteration - III Problem: Need to attract a captive audience
@frankvtaylor#leandc Customer: Trade show exhibitors Solution:
Provide free massages in trade show exhibit space
Validated Learning 1 Assumption: Event marketers will rent our
massage chairs. @frankvtaylor#leandc Experiment: Pitched at
industry event. Result: Restin unit too heavy. Invalidated.
Golden Nugget of Info @frankvtaylor#leandc Do you rent regular
massage chairs...like the ones at Brookstone?
Validated Learning 2 Assumption: Event marketers will rent
regular massage chairs. @frankvtaylor#leandc Experiment: Pitched
via website & SEO. Result: Paying customers in 3 months.
6-figure revenue in 12 months. Assumption Validated.
