Third online meeting-

Transcript

1. L E A N P R O D U C T D E V E L O P M E N T F R O M A N I D E A T O A R E A L W O R L D P R O D U C T
2. T H I R D O N L I N E M E E T I N G I T E R A T E A N D E VA L U A T E
3. A G E N D A F O R T O N I G H T • Status reports of your projects • The Lean Startup methodology • Validated learning • Actionable Metrics • Pivots • Time to work on your projects
4. P R E S E N TAT I O N T I M E P I T C H A N D B U S I N E S S M O D E L C A N VA S
5. P R E S E N TAT I O N T I M E 15min per team Current status and achievements Market hypothesis Customer contacts MVP User Stories
6. O N E M O R E T H I N G I N T E R A C T I V E C O L O G N E 2 0 1 4
7. I N T E R A C T I V E C O L O G N E 2 0 1 4 One week full of Talks, Workshops, Hackathons and music Its next week Last year > 3000 people participated
8. I N T E R A C T I V E C O L O G N E 2 0 1 4 More Infos: http://2014.interactive-cologne.com/ Speaker: Arzu :) Christian Solmecke Jeremy Abbet Johnny Häusler many more …
9. I N T E R A C T I V E C O L O G N E 2 0 1 4 Complete festival: 250 Euro Designer/Developer: 100 Euro
10. I N T E R A C T I V E C O L O G N E 2 0 1 4 Complete festival: 250 Euro Designer/Developer: 100 Euro Special Vouchers for web science students
11. I N T E R A C T I V E C O L O G N E 2 0 1 4 I have two 100% vouchers The rest can have 50%
12. T H E L E A N S TA R T U P H O W I T A L L B E G A N
13. H O W I T B E G A N Steve Blank was teaching „Customer Development“ in Berkeley for the first time in 2004 Eric Ries first company „there.com“ failed and the took Steve Blanks class As a developer he saw the potential in combing Customer Development with Agile Development models
14. H O W I T B E G A N Eric Ries founded IMVU Inc using the methods of Customer Development He wrote a book about his experiences and called it „The Lean Startup“ Today even the US government has implemented Lean Startup methodologies
15. T H E L E A N S TA R T U P T H E B A S I C S
16. T H E B A S I C S „The goal of your company should be to develop a product that will solve a problem, not just something you think someone “wants” to have“ – E R I C R I E S –
17. T H E B A S I C S Goal is similar to Customer Development Reduce the amount of time, resources and money to create a product people really want Adds aspects, tools and methods from agile development
18. T H E B A S I C S
19. T H E L E A N S TA R T U P VA L I D A T E D L E A R N I N G
20. VA L I D AT E D L E A R N I N G Learning: The oldest trick in the book Validated Learning: „A rigorous method for demonstrating progress when one is embedded in the soil of extrem uncertainty“ Similar to the Customer Validation part in CD
21. VA L I D AT E D L E A R N I N G Use Metrics and Experiments for every critical question Try to validate on a feature base (learn before continue) In todays web world a lot of metric tool are available
22. T H E L E A N S TA R T U P A C T I O N A B L E M E T R I C S
23. VA N I T Y M E T R I C S Most analytic tool offer you absolute numbers e.g Total Page Visits, new Users per Day, … A rise makes you feel good But whats next?
24. A C T I O N A B L E M E T R I C S Metrics that will directly and immediately influence the decisions your need to make right now Answer 3 questions: How do you gain or lose revenue? How do you gain or lose customers? What are the key functions and benefits that people are coming to you for?
25. A C T I O N A B L E M E T R I C S Before you can find the right metrics define goals Example Metrics to track at the early stage: Customer Lifetime Value Cost per acquisition Conversion rate
26. C U S T O M E R L I F E T I M E VA L U E The most important metric Get more out of a customer then he costs you Good old spreadsheet Most of the time you have to estimate some numbers
27. C O S T P E R A C Q U I S I T I O N What does it cost me to get a new customer 1/(Visitor to trial conversion rate*trial to paid user conversion rate)*Costs per Visitor Try different traffic strategies to find the best CLV and CPA should be at least close to each other in the start
28. T H E L E A N S TA R T U P M E T R I C S : T O O L S A N D M E T H O D S
29. A / B T E S T I N G Sometimes called Split-Testing Run two versions of a specific feature in parallel to see the differences Focus on a specific goal for each test Tools: Optimizely, Visual Website Optimizer, …
30. P E R - C U S T O M E R M E T R I C S Move away from Requests and Sessions No abstract groups but the customer should be in the focus Example: „number of pageviews per returning customer“
31. F U N N E L M E T R I C S Define the most important actions in your product e.g: Signup, Product demo, purchase, … Visualize the steps in a funnel: ! !
32. F U N N E L M E T R I C S Define the most important actions in your product e.g: Signup, Product demo, purchase, … Visualize the steps in a funnel: ! !
33. C O H O R T A N A LY S I S Best kind of „Per-customer metrics“ for ongoing decision making are cohort analysis Cohort: A group of users that share common characteristics or experiences within a defined timespan Combine cohorts with funnels to get real insights Tools: KissMetrics, Mixpanel, …
34. S M O K E T E S T S Test if users want a feature before building it If you ask them: Most say „Of course“, „Sure“, … Give them a opportunity to use the feature and see how many actually do
35. T H E L E A N S TA R T U P P I V O T S
36. P I V O T S „Substantial changes to one or more of the BMC sectors“ If metrics indicate you should change something Sometimes used as a synonym for change -> special change to the product, business model and engine of growth
37. P I V O T S We need to change something But what? Pivots come in different flavors
38. Z O O M P I V O T S Zoom-in Pivot A single feature becomes the whole product Zoom-out Pivot A product becomes part of a much larger product Example: Wunderlist
39. C U S T O M E R P I V O T S Customer Segment Pivot The product solves a real problem for real customers But the real customers are different then originally planned Customer Need Pivot If we start to know the customer very well The customer has a problem, but its a different one then we expected
40. O T H E R P I V O T S Platform Pivot Switch between application and platform Business Architecture Pivot High margin, low volume versus low margin, high value B2B vs. B2C most of the times
41. O T H E R P I V O T S Value Capture Pivot Change in the revenue model Engine of Growth Pivot Viral, sticky and paid growth Most of the time also a Value Capture Pivot
42. O T H E R P I V O T S Channel Pivot Change to the Channel sector in the BMC Technology Pivot The same problem is solved for the same people with a better price and/or performance
43. F I N A L O N - S I T E W H A T Y O U S H O U L D D O U N T I L T H E N
44. F I N A L O N - S I T E Document that explains what you did, who did it and a review on you work 25min presentation Your idea What you did in the semester What you achieved What you learned about your idea
45. B R E A K O U T T I M E C O N T I N U E T O W O R K O N Y O U R M V P A N D T H I N K A B O U T M E T R I C S
46. B R E A K O U T T I M E Continue to work on your MVP Concentrate on metrics and methods I’ll join every team to answer specific questions
47. Q U E S T I O N S A N Y C O M M E N T S , F E E D B A C K O R T H I N G S I M I S S E D