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