Date post: | 19-Jun-2015 |
Category: |
Business |
Upload: | paul-smith |
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PRODUCT-MARKET FIT (SATISFACTION)14:00 TO 14:30
HOW TO GET A PRODUCT-MARKET FIT? (AKA THE WEEKEND PLAN)
1. Customers with big problem!
2. Customers will buy!
3. Customers will keep buying!
4. Cost effective marketing
?
PRODUCT-MARKET FITA viable percentage of your customers are
very satisfied with your product (i.e. high rates of retention and referral)
Minimum variable productHow could you have predicted Facebook success?
75% of users returned on a daily basis
405 minutes spent per month
EXAMPLE 2: PINTEREST AVERAGE USER SPENDS 89 MINUTES PER MONTH
EXAMPLE 3: GMAIL PAUL BUCHHEIT “MAKE 100 USERS HAPPY”
EXAMPLE 4: COKE-COLA AVERAGE PERSON CONSUMES A COKE PRODUCT EVERY 4 DAYS
TASTE FATIGUE
WARNING!!! GROUPON DON’T SCALE UNTIL YOU HAVE SOLVED RETENTION
RETENTION CURVE
AMAR BHIDE
Idea BuildNo
Facts
DON’T SKIP THE ASSUMPTION TESTING
74%of high growth internet start ups
fail due to premature scaling.
Source: Start Up Genome Report(2011)
20times faster than startups that
scale prematurely
Startups that scale properly grow about
Source: Start Up Genome Report(2011)
PRODUCT-MARKET FIT(SATISFACTION)
FINDING PRODUCT-
MARKET FIT
Meetups & pull
programme world thought
leaders
Early stage entrepreneurs- Laptop & Car
Concierge
Referral 1/10 per week
PROCEED2/10 per week
Entrepreneurs excited by the
service
Meetups & pull
programme world thought
leaders
Concierge
Retention9/10
ITERATE6/10
High initial retention with a drop off after
first month
Individual coaching & programme
world thought leaders
Concierge
Retention9/10
Early stage entrepreneurs- Laptop & Car
Early stage entrepreneurs- Laptop & Car
MVP ASSUMPTION
Describe Customer Segment
Describe MVP
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay].
- Ash Maurya
We can’t
predict our own
behaviour!
EXAMPLE 1: ZAPPOS
EXAMPLE 2: ANAT MVP
Example 3: Food on the table MVP (Concierge MVP)
Example 4: Groupon MVP
Skinned Wordpress sight Filemaker to create PDF coupons and emailed
People
Knowledge
Resources
Market GapPlan
Market Research
CAUSAL THINKING
Opportunities
Knowledge
People
Resources
Outcome
Outcome
Outcome
Outcome
Outcome
Outcome
(Imaging a possible new end using a given set of means)
EFFECTUAL THINKING
Gum trees
Piping
Library books
Bicycle pump
Motivation to help
Think a lot. Let’s create a plan.
Start acting as soon as you can.
EXCITEMENT METRIC & BEHAVIOR
EXCITEMENT METRIC & BEHAVIOR
How would you feel if you can no longer use [product]?
• Extremely disappointed • Very disappointed • Moderately disappointed• Slightly disappointed • Not at all disappointed
EXCITEMENT METRIC & BEHAVIOR
EXCITEMENT METRIC & BEHAVIOR
EXCITEMENT METRIC & BEHAVIOR
PRODUCT-MARKET FIT (CUSTOMER ACQUISITION)
HOW TO GET A PRODUCT-MARKET FIT? (AKA THE WEEKEND PLAN)
1. Customers with big problem!
2. Customers will buy!
3. Customers will keep buying!
4. Cost effective marketing
?
COST EFFECTIVE MARKETINGYou have found a predictable and cost-effective way to acquire new customers
WHEN YOU START…
IF YOU SUCCEED (CLTV > 3X CAC AND IS RECOVERED IN 12 MONTHS)
EXAMPLE 1: DROPBOX $200 TO A LITTLE OVER FREE
WARNING!!! GROUPSPACES COULD NEVER ATTRACT
CUSTOMERS AT A LOW ENOUGH COST TO SCALE
Series1
0 500 1000 1500 2000 2500 3000
365 days
2500 days
DO YOU WANT TO WASTE 6 YEARS?
WHAT TO TEST?
1. Paid acquisition (Google, YouTube, Facebook, traditional ads)
2. Virality (Word of mouth, viral tools, raving fans)
3. SEO (Website, content marketing)
4. Sales (Inbound, outbound)
5. Retail (Own stores, partner stores)
6. Distribution partners (Franchise, agents, wholesalers)
SESSION TO DO LIST (09:30 TO 14:00)
Goals • Mentor session• Run at least 2 experiments (1 to 2 hrs per experiment)• At least 10 to 40 customer interactions (At least 5 customers per
hour)
Prepare to announce • Number of experiments run • Number of customer interactions