(how to approach design problem)
2) Identify Customer
3) Report Customer Needs
4) Cut through prioritization
5) List solutions
6) Evaluate trade-offs
7) Summarize Recommendations
-1.3 to 3% is target depending on industry
-ratio of number of clicks to impressions
(Total Clicks on Ad) / (Total Impressions)
2) Design refers to “What key features would you design into the product?” and “How would you describe your brand and voice?”
3) Capabilities tackles the “Why should we be the ones doing it?”and ” What is our unique capability?”
4) Logistics is the economics and channels, like “What’s our pricing strategy?” and “What’s the medium through which we deliver this?”
-adds value the way it is, doesn’t need a v2
-Snapchat started w/simple photo
-simple is good, incomplete is not
RAT – Riskiest Assumption Tests
-only build enough to test biggest unknown
-“Is this the smallest thing we can do test our riskiest assumption?”
-measures short term happiness (transactional)
-does not address how user feels about company as a whole
-typically use 1 to 5 scale
-# of satisfied customers (4/5) / # of responses
“How would you rate your overall satisfaction with the service [or product] you received?”
-NPS is about long term happiness
-NPS measures loyalty
2. Passion for Products — Love what you make, love what you do.
3. Empathizes with the Customer — and understand the customer’s wants and needs.
4. Interviews Customers — Gather insights from your customers, learn their pain points and discover opportunities.
5. Aspires to Build Great Experiences — Understands that user experience is paramount for product success.
6. Keeps Score — Identify the key metrics and track performance, establish baselines to measure success.
7. Ability to Prioritize — Keep things in order, understand what needs to be completed first and what needs to wait. Use customer feedback for prioritization.
8. Collaborative Leader — Management is a collaborative process, you cannot be dictatorial and expect to inspire your team.
9. Execution — Action-oriented, you get things done.
-My survey has a defined target audience
-I know what I want to achieve with my survey
-My survey questions are not ambiguous
-I know where people will respond to my survey (at home, at work, on the bus…)
-I know what I will do with the responses and how to action them
-I know how I will distribute my survey (via email, social media…)
Max 5 minutes to fill out
Include progress bar
2) One question at a time
3) Explain the survey to users in beginning and thank them at the endd
4) Order the questions properly
Add sensitive questions at the end
2) Unclear Goals
3) Product Neglect
4) Customer Avoidance – spend at least 3hrs per week
5) Inability to Say “No”
2) Keep away from indirect competitors
3) Advertise the possibilities and benefits first
4) Less is more
5) Bridge the gap between the physical and digital worlds
3) Solve Problems
4) Validate Success
1) What problems does it solve?
2) How does it accomplish goals?
3) How does it compare to alternatives?
4) How would you improve it?
2) Provide structure
3) Identify users / customers
4) Use cases? Why use product?
5) How well is product w/use cases?
6) What features / changes to improve?
7) Wrap up
*Remember to define MVP. Then other features are improvements do ROI
-increase x% /yr
-double after 72 / x yrs
e.g. 72 / 8 (compound int rate) = 9 yrs to double
digits (A) + digits (B) = digits (A*B)
823 * 1032 has 6 or 7 digits
3) Referral Rates / Types
(e.g. users / goals…etc)
4) Why Why Why
5) Priorities / Values
7) Trade offs
3) Promotion (where to advertise)
4) Place (where to sell)
(strength / weaknesses and threats)
Strengths: characteristics of the business or project that give it an advantage over others
Weaknesses: characteristics of the business that place the business or project at a disadvantage relative to others
Opportunities: elements in the environment that the business or project could exploit to its advantage
Threats: elements in the environment that could cause trouble for the business or project
Y-Axis: Internal / External
X-Axis: Helpful / Harmful
*Strengths / Weaknesses can be about product offering not just organization
-generates more cash than is needed to maintain market share so excess should be reinvested
-are worthless, low market share and low growth – only value in liquidation
-are high growth, low market share -require far more cash than they can generate
-become Dogs when the growth stops
-are high market share, high growth -always generates profits
-becomes Cash Cow
all products become Cows or Dogs -all dependant on obtaining a leader share of market before growth slows
Balanced Portfolio has:
Stars – high share and high growth assure future
Cash Cows – supply funds for growth
Question Marks – can be converted to stars w/added funds
-unmet need?, segment?, price sensitive?
-strengths / weaknesses, concentration, potential substitutes
-strengths / weaknesses, value chain, value add?
2) Buyer Power
3) Supplier Power
4) Threat of Substitutes
5) Threat of New Entrants
2) Customer Feedback
3) Traffic Analysis
5) A/B Testing
2) Ask why again if it doesn’t identify root cause
3) … repeat
Q: Why did your car stop?
A: Because it ran out of gas
Q: Why did it run out of gas?
A: Because I was lazy
-responsible for guiding the success of a product and leading the team that is responsible for improving it
-liaison between stakeholders and implementation teams
-PMs are extremely valuable to build the bridge between the outside (market, customers, external stakeholders, partners) and the inside (all the sources around the product)
2) Set common goal for team
3) Hold everyone accountable
4) Object decision making
G -> Goals (user and business)
A -> Actions
M -> Metrics (use ARM)
E -> Evaluations
-Avoid scope creep
-Establish team velocity
-Quickly establish estimates
-Eliminate subject hour estimation based on developer skill
-Complexity, Effort, Doubt
-Not based on hours
Base 2 sequence:
0, 1, 2, 4, 8, 16
-Ratio btw business value and complexity
Top Down: ideas come from execs that supply long term vision
A -> Acquisition and Activation
-what actions do users take to get value and come a customer?
R -> Retention and Engagement
-what gets my users back to product?
M -> Monetization and Revenue
-what format of payment does product take?
-Quantify market size / opportunity
-Bottom Up: figure out how many toothbrushes sold in stores and for what cost
-Top Down: market share and total market size
-figures out value users place on your product
-Total Revenue / # Users in Period
-shows how much users like your product
-“cohort” is a group of users
-look at retention of cohorts after 6-12 months
(actual metrics to look for)
2) Repeat Visits
3) Unique Visitors
4) Active Users
5) Feature Usage
2) Building barriers to entry
3) Being the “One-Stop Shop for ___”
4) Being the Low-Cost Leader
5) Reducing Reliance on a Key Buyer or Supplier
6) Testing a New Market
(understand A, B, C…)
2) Understand the Competition
3) Understand the Customers
4) Understand the Landscape
5) Market Your Product
2) User Types
3) MVP or Full Product
2) Value Pricing
3) Competitive Pricing
4) Experimental Pricing
2) Freemium: basic is free but premium costs $$
4) A La Carte
6) Free Trial
7) Razor Blade Model
2) Pay-Per-Impression: sees ad but doesn’t have to click
3) Pay-Per-Action: clicks on ad and pays for product
-conversion rate typically 2-5%
max for ad
= expected profit per click
= conversion rate * profit per conversion
2) Falling revenue
3) Falling sales volume
4) Declining new customers
5) Increase in costs
6) Decline in traffic
7) Decline in new visitors
**Makes a product useful (utility)
**Understandable (ease of use)
Thorough / detailed
As little design as possible
2) Ave people per household
3) # households in US
4) Life expectancy US
5) Life expectancy World
6) Storage cost per GB
6) AWS is 0.023/gb
2) European population
3) Asia population
4) Hours in a year
5) Minutes in a year
6) San Fran / NYC population
7) # airports in US
8) # cities in a state
3) 4 billion
6) SF = 850k NYC = 8.3MM
-Competitors resources (human capital, $$)
-Competitors unique competences (distribution channels)
-Economies of scale
-Access to distribution channels
-Good relationships with suppliers
-Related to existing brand promise
2) US GDP Growth Rate
3) US Corporate Tax Rate
4) US Smartphone Penetration
5) US % Under 18
6) US % Over 65
* % target customers
* purchase frequency
* quantity purchased
* price per unit
2) Estimate total # of store (total units)
3) Multiple 1 and 2 for revenue
* Sales per year
* # of years per customer
-> Application Layer (HTTP)
-> Transport Layer (TCP)
-> Network Layer (IP)
-> Data Link Layer
-Who are the competitors? How does the company differentiate?
-What is the revenue model?
-What do customers love / hate about product?
-What are the key metrics? How many users… conversion rate… growth rate?
-What are your product weaknesses?
-What are the product’s competitive advantages?
-What threats are there impending?
-How technical is the role?
-How much time on writing requirements… managing timelines… building roadmap… etc
-Where do ideas come from? Bottom-up or Top-down?
-Manage innovation? Is product relatively change averse or willing to take informed risks?
-How do you make design decisions? Surveys… studies… A/B testing?
-What is most challenging about being a PM here?
-Advantages / Disadvantages
-Iterative and Incremental
-Communication, transparency, constant feedback
Advantage: respond and deliver quickly
Disadvantages: hard to scale, difficult to create roadmap
-story best practices
-Scrum Master duties
-Product Owner duties
-establishes scrum practices / rules
-ensures team is fully functional
-sets up meetings
-help with the backlog
-defines features of product; focus on ROI
-track value and return
-scope management / prioritize backlog
-accept or reject work
-what’d you do yesterday?
-what will you do today?
-1/2 day; demo work to stakeholders
-1/2 day; 60% must haves
-How to fix
-lack of clear roadmap from PM
-myopic view of team (only focused on one section of product)
-Sprints are too short
-Not enough user feedback
-No sprint planning
-Lacking big picture
-Convincing and persuasive (lead / influence)
-Be optimistic and positive
-Be fearless when discussing ideas
-Prioritization of backlog
-Post launch analysis
Quantitative: traffic analysis
Comparative: A/B testing
Competitive: monitor competitors
-Option A / B
-and Goals Signals Metrics
-Try to have a few metrics in each category
Happiness: measure of user attitude (via survey)… net promoter score, satisfaction
Engagement: level of user involvement (# of visits per week)
Adoption: new users of product / feature
Retention: rates at which users are returning (churn)
Task Success: behavioral metrics such as efficiency, effectiveness and error rate
-Percentage of prospects who take an action in response to campaign
-Percentage of users who take action in product
-Customer retention or churn rate
-Quality (# of bugs)
-Customer lifetime value (LTV)
-Monthly recurring revenue generated (MRR)
-Average revenue per user
-Session duration for a cohort, over time.
-Number of user actions per session, for cohort, over time.
-Action completion rate & differences between different cohorts
-Do not answer why
-Measure performance, monitor progress, data for decision making
-KPIs are derived from the product vision and tell you how well your product is meeting the vision
-Deviation of set hours of work
-Planned budget deviation
-Cost variance metrics
-What part can be substituted without affecting whole?
-How to merge two idea in innovative way (e.g. phone tech and camera)
-How to tweak and adjust for better output
-Change to release more innovative capabilities
-Remove a part of process / product to improve it
-A/B testing validation
-reflects risk tolerance and confidence in test
-X < 0.05 -larger sample size the more confident in result -does not always mean its an accurate assumption
-what to include
-what makes a good one?
-degree of loyalty / usage
-age, gender, income, education
-country, climate, population
Needs & Goals
Include on Card…
-Name / Title
-Needs / Challenges
-Skills / Behaviors
Good Personas are…
-reflect patterns from Research
-focus on current state
-help understand users
-Guide product development by creating features that help them achieve their desired outcomes
-Prioritize which projects, campaigns, and initiatives to invest time and resources on
-Create alignment across the organization and rally other teams around a customer-centric vision
2) Understand the industry and tech
3) Use metrics / stats to reduce subjectivity
4) Communicate and be transparent…keep stakeholders up-to-date
-Volume of Sphere
-Fixed Cost (examples)
-Variable Cost (examples)
-Materials / Labor
Gross Profit = Revenue – Cost of Goods Sold
-In accounting, gross profit, gross margin, sales profit, or credit sales is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments
Market Penetration = Customer / Potential Customers
Operating Margin = Operating Income / Total Revenue
-broad inputs that narrow down into final product or output
-develop, measure and optimize
-a funnel is made up of the measurement of the key event at each step of the flow or user journey
-By putting these measurements together you can see where the leakage is in the funnel. The leakage is where people stop completing the task they set out to do
1. Discover the pain points
2. Find the reason for the problem
3. What is the impact of the problem
Uber’s 2 Funnels
1) on boarding
2) booking transportation
2) Define the KPIs that meet the product vision
3) Define the metrics that allow you to hit your KPIs
4) Define the funnels (via user journeys) that affect your metrics
-Kotter’s 8 Steps
2) Create guiding coalition
3) Develop a vision and strategy
4) Communication change vision
5) Empower broad-based action
6) Generate short-term wins
7) Consolidate gains and produce more change
8) Anchor new approaches in culture
-Success with change takes time to obtain, it is not a straight line path.
-Communication should be a priority for every manager at every level of the firm
-When you are so sick of talking about something that you can hardly stand it, your message is finally starting to get through
Recurring: do they come back again and again?
Referring: do they share with others?
-e.g. How can we increase our profitability?
-Start with high level question and break down via a tree
-For each stage, write down the key actions
Good User Journeys help to…
1) Empathize with the customer
2) Discover product improvement opportunities
-Enter. What are the first few steps in the UX funnel?
-Engage. What task(s) is the user trying to accomplish?
-Exit. How does the user complete the task?
-Extend. What follow-up actions occur after the user completes the task?
-Version A (control) vs Version B (challenger) to see which has higher conversion rate
-“cooked” term for when test is complete
-Lift = increase
-Test should run until at least 95% chance to beat control
-Test for a minimum of 7 days (takes into account weekdays and weekends
-Do not focus on just one metric. Make inventory of important metrics before and after every test you run
-Create segments and run A/B tests on them separately to gauge big picture
-Can show that a footer has no effect on conversion
-Really good for redesign efforts
-Requires a lot of traffic / data to run variations
-A company’s Net Promoter Score is the percentage of promoters less the percentage of detractors
-“Detractors” answer from 0 to 6
-“passives” answer 7 or 8
-“promoters” answer 9 or 10
-Rapid shuffling of teams / projects
-Infrequent acknowledge failures
-No connection to core metrics
-No PM retrospectives
-No tweaking / iteration
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