Paul Orlando @porlando paul@StartupsUnplugged .com The Minimum Viable Product (And Social Impact)
Sep 10, 2014
Paul Orlando @porlando [email protected]
The Minimum Viable Product(And Social Impact)
Startup AcceleratorLean Startup AdvisoryStartupsUnplugged.com/advisory AcceleratorHK.com
Other MVPs I tried in the last year: “Startup Sacrilege” (book) WeAreHKtech list MVP Cards Startup Hug Persuade parents to let their kids join startups
These started as MVPs...
Startup AcceleratorLean Startup AdvisoryStartupsUnplugged.com/advisory AcceleratorHK.com
Other MVPs I tried in the last year (and their status): “Startup Sacrilege” (book) WeAreHKtech list MVP Cards Startup Hug Persuade parents to let their kids join startups
These started as MVPs...
early success
success
so-so
fail
Not MVPs...
Fun / Cool / What If?
Market Opportunities
Social Good Market Opportunities
What causes the most difficulty for early-stage companies?
…How can we solve this?
Ideal Customers
1. They have a problem2. Are aware of having a problem3. Have been actively searching for a solution4. Have hacked together a solution5. Have or can acquire a budget
Solve Problems
Satisfy Needs
Fuel Addictions
A way forward.The MVP. Business Model Canvas. Case Studies.
A way backward.Reading too much news.
Loving your ideas. Being a know-it-all.
The MVP
“The minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.” -- Eric Ries
What They Say…
The MVP
“Our MVP is the crappy version of what we’re going to build later.”
-- most startups talking about MVPs
What We Hear…
The MVP
“blah blah blah get validated learning blah blah blah use least effort blah blah and have testable hypotheses.” -- me
New Translation…
MVP technique What it is
In-person Interviews
Talk to people to learn about them and their problems
Landing Page / Adwords
Use a description to test actions from lots of people
Mockup / Wireframe
Paper or digital non-functioning iterations to test reactions
“Parasite” Ride on top of an existing network to speed up data collection
Concierge People do work of not yet built system
Video Show what it’s like to use itPrototype Actually build a basic version
MVP technique What it is
In-person Interviews
Talk to people to learn about them and their problems
Landing Page / Adwords
Use a product description to test actions from lots of people
Mockup / Wireframe
Paper or digital non-functioning iterations to test reactions
“Parasite” Ride on top of an existing network to speed up data collection
Concierge People do work of a not yet built system
Video Show what it’s like to use itPrototype Actually build a basic version
MVP technique What can go wrongIn-person Interviews
Delays, Bad interviewers, Wrong interviewees, Can’t find interviewees
Landing Page / Adwords
Don’t know what to measure, distribution
Mockup / Wireframe
Disbelief, No data collection, Becomes design and feature focused
“Parasite” DisbeliefConcierge Can’t actually build itVideo Cost distributionPrototype Time, cost, can’t build itAll Can’t get enough people (or the right
people) involved
The Siren Song of the Startup Survey
Would you like to take a survey so I can feel like I’m learning something?
Startup Weekend Surveys Gone Wrong
We built a website and mobile app to let you find free fruits and vegetables near you as well as share yours with others. Would you use it?
How much would you be willing to pay for a consumer product that creates a stable “sand free” zone at the beach?
Startup Weekend Surveys Gone Wrong
Startup Weekend Surveys Gone Wrong
How to Interview - test
“Does this sound like a good idea to you?”
How to Interview - test
“Does this sound like a good idea to you?”
X
“Would you buy this?”
How to Interview - test
“Would you buy this?”
How to Interview - test
X
How to Interview – Sample questions
Please show me how you... Please tell me what you did when... Please help me understand...
How to Interview – Sample questions
Why do you do that? Please tell me more about that.When does that happen? When else does this comes up?
How to Interview – Sample questions
Who else is affected by this? How do you decide what to do? Tell me about the last time you dealt with this.
How to Interview – Sample questions
If you had a magic wand, what would you do or change?
How to Interview – Sample questions
What else should I have asked? Other people have to told me that...
I actually have a [thing] available now. You can [download / buy] it here.
How to Interview
Know what you want to learn.
No hypothetical questions.
Testing action can be better than asking a question.
Takes notes.
Then what?
The forgotten hypotheses...
MVP technique What it is
In-person Interviews
Talk to people to learn about them and their problems
Landing Page / Adwords
Use a description to test actions from lots of people
Mockup / Wireframe
Paper or digital non-functioning iterations to test reactions
“Parasite” Ride on top of an existing network to speed up data collection
Concierge People do work of not yet built system
Video Show what it’s like to use itPrototype Actually build a basic version
MVP: Landing Page
Wasn’t really an MVP
MVP: Landing Page
MVP: Concierge
MVP not available
MVP: Prototype
Test: Make an MVP for this Fake Company
“Flight Freebies”your fun discount travel service
Metrics
O M T MOne Metric That Matters
Actionable. Auditable. Accessible.
What is a Vanity Metric?(And how do I increase mine?)
Total Signups
Vanity...
Daily Users
Event
Vanity...
Metrics: Actionable, Auditable, Accessible
Life Time Value / ImpactGrowth Rate…(is there anything else?)
Determine your metricsUse few toolsTry to improve the results
A/B Tests or Split Tests
Funnels
Cohort Metrics
Viral Coefficients
Social Impact?
There are 41 Shades of Blue?
All Google Sites Advertising Revenue (2008): US$14.4B
An increase of 0.1% = US$14M in extra revenue
Conversion Funnel – where do you focus?
Acquisition
Activation
Retention
Revenue
Referral
M1 M2 M3 M4 M5 M6 M7 M8Jan 100% 20% 12% 8% 6% 5% 3% 2%Feb 100% 31% 16% 13% 10% 7% 5%Mar 100% 35% 22% 19% 14% 11%Apr 100% 43% 24% 20% 18%May 100% 52% 29% 24%
Jun 100% 55% 33%Jul 100% 57%
Cohort Metrics
Viral Coefficient
But don’t forget cycle time.
Invitation Rate x Conversion Rate(invites sent per user) (% invited users who take action)
What about Impact Metrics?
Metric technique What can go wrongSplit TestingA / B Testing
Incremental improvements. You often can’t split test your way to insight
Funnel Not knowing which parts drive your business
Cohort Metrics Not tracking eventsViral Coefficient When does it matter? Cycle speedIn general Forgetting different metrics matter at
different development stagesIn general Thinking that metrics matter more
than they do
What metrics matter
For a Community Site…?For a Ecommerce Site…?For a Subscription Service…?For a Social Impact organization...?
If you want to sell advertising…?If you have a Freemium model…?If you want to monetize customer data…?
A way forward.
Remember The New MVP Definition. Learn from others (case studies).Figure out which metrics matter for you. Use few tools. Remember metrics can mislead.Remember revenue/impact & growth drive most things.Stop reading (tech) news. Be willing to kill your ideas. You know nothing.
Paul Orlando @porlando [email protected]