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Ship It: Staying Lean at LivingSocial

Ship It: Staying Lean at LivingSocial

Andrew Atkinson

April 13, 2013

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  1. Engineering process Build it Make it pretty Ship it Make

    it fast Make  it  work Add  tests Finalize  design  and   user  experience Verify  and  measure   usage Scaling
  2. TWO ASSUMPTIONS Consumers would give feedback 1 2 1 2

    Merchants would find the feedback valuable PURCHASE FEEDBACK
  3. OVERALL: SUCCESS Surveyed millions of people. Collected millions of records.

    Could have validated product interest with merchant using sample and survey data PURCHASE FEEDBACK Could have validated with consumers before building
  4. MISSED TARGET Tested on a small set of deals (good)

    Failed to achieve a statistically significant increase in purchase conversion. QUICK CHECKOUT Removed code
  5. HYPOTHESES Additional purchases on deals from additional inventory 1 WAIT

    LIST FEATURE $ More inventory allocation from merchant for re-runs 2
  6. MISSED TARGET Learned we typically had the maximum inventory from

    hotels Purchase conversion from wait list subscribers was < 10%. WAIT LIST FEATURE Learned the majority of deals do not sell out Small opportunity, removed code.
  7. Would consumers sign up? 1 2 Would merchants sign up?

    LOYALTY PRODUCT Would integration with third-party work? Quality of the data? 3
  8. DID NOT LAUNCH Working with third-party added extra time to

    our development speed LOYALTY PRODUCT Could have validated riskiness assumptions first (merchant enrollment)
  9. ESCAPES NEW DEVELOPMENT Manually loading inventory Building piece by piece

    (air, packaged tours, mobile) Deferring merchant payment project while working with hotels that don’t require it Starting small
  10. CONCLUSION Validate riskiest assumptions first Use a/b testing for optimization

    and new product development Optimize for iteration speed and quick recovery Test small ideas with big potential Make customer validation your primary goal