the talent institute - grow better products, faster

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@jeroentjepkema The Talent Institute, 10 June 2016 Grow Better Products, Faster

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Page 1: The Talent Institute - Grow Better Products, Faster

@jeroentjepkemaThe Talent Institute, 10 June 2016

Grow Better Products, Faster

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Slides: bit.ly/TTI-GROW

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09.00-10.30:Positioning, Life Cycle & Messaging10.30-10.45:Coffee!10.45-11.45:Frictionless User Experience11.45-12.00:More coffee!12.00-12.30:Analytics Stack

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Part 1:Positioning, Life Cycles & Messaging

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Survival of the fittest

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It is not the strongest of the species that survives, nor the most intelligent that survives.

It is the one that is most adaptable to change to their environment.

- Charles Darwin

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Three kinds of innovation

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Sustain(optimizing for more

of the same)

Improve alongcurrent metrics...

...or alterthe rate of improvement

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Innovate(introduce nearby product,

market, or method)

Switch to a newvalue model

Sustain(optimizing for more

of the same)

Improve alongcurrent metrics...

...or alterthe rate of improvement

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Innovate(introduce nearby product,

market, or method)

Switch to a newvalue model

Sustain(optimizing for more

of the same)

Improve alongcurrent metrics...

...or alterthe rate of improvement

Disrupt(Fundamentally changing

the business model)

Change the businessmodel entirely

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Experiment with product, market, and method.

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Product(new “what”)

Market(new “who”)

Method(new “how”)

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A three-maxima model of (enterprise) innovation

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Currentstate

Business optimization

A three-maxima model of (enterprise) innovation

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Currentstate

Business optimization

Product,market

innovation

You can convince executives of this

because some of it is familiar.

A three-maxima model of (enterprise) innovation

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Currentstate

Business optimization

Product,market

innovation

Business model

innovation

You can convince executives of this

because some of it is familiar.

This is terrifying because it eats the current business.

A three-maxima model of (enterprise) innovation

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SustainingNext year’s car

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Sustaining InnovativeNext year’s car Electric car,

same dealer

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Sustaining Innovative DisruptiveNext year’s car Electric car,

same dealerOn-demand, app-based

car service

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...then disruptive innovation

produces exponential growth.

If sustaining innovation produces linear growth...

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Another way to look at it

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Don’t sell what you can make. Make what you can sell.

Kevin Costner is a lousy entrepreneur.

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It’s no longer about if you can build it, it’s about if anyone will care (for your result)

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The Innovation Dilemma

the Kodak moment

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The problem is framing

The problem is framing...

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a.k.a. The Innovator’s Dilemma

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YOU ARE HERE

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YOU ARE HERE

LOCALMAXIMUM

OPTIMIZATIONOF CURRENT

METRICS/CUSTOMERS

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GLOBALMAXIMUM

YOU ARE HERE

INNOVATION=

SURVIVAL

Page 35: The Talent Institute - Grow Better Products, Faster

EVERYBODY HATESGOING DOWNHILL

YOU ARE HERE

GLOBALMAXIMUM

INNOVATION=

SURVIVAL

Page 36: The Talent Institute - Grow Better Products, Faster

Or, why I hate growth hacking?

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the ‘Growth Hack’

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An exploit (from the verb to exploit, in the meaning of using something to one’s own advantage) is a piece

of software, a chunk of data, or sequence of commands that takes advantage of a bug, glitch or

vulnerability in a system order to cause unintended or unanticipated behavior to occur on computer software,

hardware, or something electronic (usually computerised).

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If an exploit is part of a system, then Growth Hacking is to get the system to do something it’s not designed to do.

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AirBnB and Craigslist

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Every successful startup has found and benefited from a growth hack...

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and then... marketing happened

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In reality, growth hacking sucks...

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One trick pony? What works for others probably doesn’t work for you...

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90% of your experiments will fail...

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Growing before product/market fit? Really?

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a.k.a. founders blindness

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Why is this important?

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Consumers are in control, we need to be creative to

grow, acquire new users and retain them...

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“”Zero moment of Truth:That moment when you grab your laptop, mobile phone or other device and start learning about a product/service you’re thinking about trying.

It’s a moment where consumers make choices that affect the success and failure of nearly every brand in the world...

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Impact of Mobile?

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Impact of Mobile?

YourBRAND

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Impact of Mobile?

every day

Flipboard

e-mail

Twitter

Fitbit

Foursquare

Human.co

facebook

twitter

linkedin

NBA.com

Newsapps

YourBRAND

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Impact of Mobile?

every week

every day

Flipboard

e-mail

Netflix

Youtube

Twitter

Dropbox

Parkmobile

Soundcloud

Evernote

Fitbit

Foursquare

Human.co

whatsapp

Facetimefacebook

twitter

linkedin

NBA.com

News apps

YourBRAND

Page 69: The Talent Institute - Grow Better Products, Faster

Impact of Mobile?

every week

every day

Flipboard

e-mail

Shazam

GoogleHangouts

Netflix

Youtube

Twitter

Dropbox

Parkmobile

GooglePlus

Soundcloud

Evernote

Google Maps

Appie

Skype

Pathe

Youtube

Meetup

Fitbit

Foursquare

Human.co

whatsapp

Facetimefacebook

twitter

linkedin

NBA.com

News apps

every month

YourBRAND

Page 70: The Talent Institute - Grow Better Products, Faster

Impact of Mobile?

YourBRAND?

every week

every day

Flipboard

e-mail

Shazam

GoogleHangouts

Netflix

Youtube

Twitter

Dropbox

Parkmobile

GooglePlus

Soundcloud

Evernote

Google Maps

appie

Skype

Pathe

Youtube

Meetup

Fitbit

Foursquare

Human.co

whatsapp

Facetimefacebook

twitter

linkedin

NBA.com

every month

YourBRAND

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Current markets & channels are noisy

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But most of all, users are skeptical and have the ability to

check everything

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Enter positioning...

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A positioning statement describes your unique value for something that an

identified market segment truly cares about

http://differentbetterbook.comSee:

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Positioning brings focus to your entire organization, as it has to match every interaction a user has with both company, competitor and

product...

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Position yourself: What kind of market am I chasing?

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New

CurrentCurrent New

Market

Product category

Dominate:Go for market

leadership to ncrease revenues, market share and brand differentiation.

Based on H. Igor Ansoff’s matrix

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New

CurrentCurrent New

Market

Dominate:Go for market leadership to

increase revenues, market share and

brand differentiation.

Segment:Wrap your product around customers understanding of

market. High rewards, less

potential growth

Based on H. Igor Ansoff’s matrix

Product category

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New

CurrentCurrent New

Market

Segment:Wrap your product around customers understanding of

market. High rewards, less

potential growth

Reframe:Beat leadership by

creating new category from

existing one. Focus on innovation

Based on H. Igor Ansoff’s matrix

Dominate:Go for market leadership to

increase revenues, market share and

brand differentiation.

Product category

Page 80: The Talent Institute - Grow Better Products, Faster

New

CurrentCurrent New

Market

Segment:Wrap your product around customers understanding of

market. High rewards, less

potential growth

Reframe:Beat leadership by

creating new category from

existing one. Focus on innovation

Create new:Merge existing

categories to create blue ocean.

Convince the world for first mover

advantage

Based on H. Igor Ansoff’s matrix

Dominate:Go for market leadership to

increase revenues, market share and

brand differentiation.

Product category

Page 81: The Talent Institute - Grow Better Products, Faster

Dominate:Go for market leadership to

increase revenues, market share and

brand differentiation.

New

CurrentCurrent New

Market

Segment:Wrap your product around customers understanding of

market. High rewards, less

potential growth

Reframe:Beat leadership by

creating new category from

existing one. Focus on innovation

Create new:Merge existing

categories to create blue ocean.

Convince the world for first mover

advantage

Based on H. Igor Ansoff’s matrix

Mileage

depend

s on co

mpetitiv

e land

scape

, your

reach

, finan

ce, e

tc.

Page 82: The Talent Institute - Grow Better Products, Faster

Positioning Canvas(because all good things need one)

Page 83: The Talent Institute - Grow Better Products, Faster

What is it?A short statement that describes what you are/do

Target SegmentThe specific target market you are targeting in the short term (aka which are the leads you’re most likely to close?)

Market CategoryDescribe the market that you’re competing in

Competitive AlternativesIf your customers don’t use you, what products/services do they use?

Primary DifferentiationThe one thing (yes, one!) that sets you apart the most from competitive analysis?

Key benefitThe biggest benefit your target market derives from your offering?

Positioning Canvas

http://differentbetterbook.comSee:

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Positioning. Your experiment umbrella:

(re-)Framing Product Messagemap Market Positioning

components

http://differentbetterbook.comSee:

Page 85: The Talent Institute - Grow Better Products, Faster

Why Growth Hacking loves positioning...

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The core of Growth Hacking is rapid experimentation

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Growth hacking, demystified.

Find correlation

Test causality

Rinse & Repeat for optimum

Pick a metric to change

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Run multiple experiments (on-brand vs. off-brand)

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Understand your product faster, push your core message...

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Exercise 1: Build positioning statement

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What is it?A short statement that describes what you are/do

Target SegmentThe specific target market you are targeting in the short term (aka which are the leads you’re most likely to close?)

Market CategoryDescribe the market that you’re competing in

Competitive AlternativesIf your customers don’t use you, what products/services do they use

Primary DifferentiationThe one thing (yes, one!) that sets you apart the most from competitive analysis

Key benefitThe biggest benefit your target market derives from your offering

Positioning Canvas

Page 92: The Talent Institute - Grow Better Products, Faster

Part 2:Messaging

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Turn your audience into a prospect

http://solveforinteresting.com/building-a-message-map/

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“I need a vehicle to get around, be productive, and enjoy my life.”

“I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

“I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

People who want to driveA.

Prospective car buyersB.

People looking for a hybridC.

Honda Civic OwnersD.“Your best customer”

Everyone in the world

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Those who don’t need cars•I’m too young to drive• I’m too old to drive• I can walk or take public

transit

Car users who won’t buy•It’s too expensive for me• I will use a shared car service• It’ll get stolen

Those who won’t buy hybrids•Hybrids are gutless•Batteries are toxic & explosive• In the end it costs more than it

saves

I will buy another brand•I’ve always driven a VW•Toyotas are reliable• I want something prestigious

“I need a vehicle to get around, be productive, and enjoy my life.”

“I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

“I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

People who want to driveA.

Prospective car buyersB.

People looking for a hybridC.

Honda Civic OwnersD.

Everyone in the world

“Your best customer”

Page 96: The Talent Institute - Grow Better Products, Faster

Those who don’t need cars•I’m too young to drive• I’m too old to drive• I can walk or take public

transit

Car users who won’t buy•It’s too expensive for me• I will use a shared car service• It’ll get stolen

Those who won’t buy hybrids•Hybrids are gutless•Batteries are toxic & explosive• In the end it costs more than it

saves

I will buy another brand•I’ve always driven a VW•Toyotas are reliable• I want something prestigious

“Isn’t it time you got out of the city?” campaign showing how cars make nature accessible &

ridiculing urban hipsters.

Ads showing how cars are needed any time (pregnancy, errands, urgent business) and

how a car is a “personal

Urgency (“every time you drive a non-hybrid car you kill the planet

a little”) and testimonials from buyers who’ve saved money.

Honda branding ads and model-specific promotions.

Follow-up satisfaction campaign to encourage buyers to tell their friends

“I need a vehicle to get around, be productive, and enjoy my life.”

“I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

“I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

People who want to driveA.

Prospective car buyersB.

People looking for a hybridC.

Honda Civic OwnersD.“Your best customer”

Everyone in the world

Page 97: The Talent Institute - Grow Better Products, Faster

Those who don’t need cars•I’m too young to drive• I’m too old to drive• I can walk or take public

transit

Car users who won’t buy•It’s too expensive for me• I will use a shared car service• It’ll get stolen

Those who won’t buy hybrids•Hybrids are gutless•Batteries are toxic & explosive• In the end it costs more than it

saves

I will buy another brand•I’ve always driven a VW•Toyotas are reliable• I want something prestigious

“Isn’t it time you got out of the city?” campaign showing how cars make nature accessible &

ridiculing urban hipsters.

Ads showing how cars are needed any time (pregnancy, errands, urgent business) and

how a car is a “personal

Urgency (“every time you drive a non-hybrid car you kill the planet

a little”) and testimonials from buyers who’ve saved money.

Honda branding ads and model-specific promotions.

Follow-up satisfaction campaign to encourage buyers to tell their friends

Sponsor a driving school

“Give the gift of driving” campaign for grandparents.

Financing, cashback

Sell to carshares; underscore their

PR on dangers of commuting, pedestrian

deaths

Theft warranty, tracking services, high-end locks

Independent tests, standard metrics (0-60 in

X)

Lab research, studies

Prove Honda hires US

Spontaneous accel. stories

Premium brand (Acura)

“I need a vehicle to get around, be productive, and enjoy my life.”

“I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

“I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

People who want to driveA.

Prospective car buyersB.

People looking for a hybridC.

Honda Civic OwnersD.

Everyone in the world

“Your best customer”

Page 98: The Talent Institute - Grow Better Products, Faster

How to build your marketing campaign?

http://www.yearonelabs.com/three-questions-all-marketers-must-answer/

When will you decide if it worked, and adjust?

Who are you targeting?

Size, reachability,homogeneity.

What do you want them to

do?

Specific, measurablecall to action.

Why should they do it?

Laid, paid, made,or afraid; messagefits their mindset.

How will you know if they

did?

Analytics,instrumentation.

Page 99: The Talent Institute - Grow Better Products, Faster

Part 3:Growth Engines

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Stickiness

Keep people coming back.Approach?

Get customers faster than you

lose them.Metrics?

Lean Startup: 3 engines of growth

Page 101: The Talent Institute - Grow Better Products, Faster

Lean Startup: 3 engines of growth

Virality

Make people invite friends.

How many they tell, how fast

they tell them.

Stickiness

Keep people coming back.Approach?

Get customers faster than you

lose them.Metrics?

Page 102: The Talent Institute - Grow Better Products, Faster

Virality

Make people invite friends.

How many they tell, how fast

they tell them.

Price

Spend money to get customers.

Customers are worth more than

they cost.

Stickiness

Keep people coming back.Approach?

Get customers faster than you

lose them.Metrics?

Lean Startup: 3 engines of growth

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Virality PriceStickiness

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Users RevenueTraffic ? ?

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How to ‘find’ growth?

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The key is to map out the lifecycle of your customers...

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AARRR: Give us your conversion?

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Acquisition

Activation

Retention

Revenue

Referal

Life Cycle Funnel

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Secret sauce?

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Website.com

4. REFERRAL

Emails & widgets

Campaigns, Contests

5. Revenue $$$

Biz DevAds, Lead Gen, Subscriptions, etc

2. Activation

Homepage / Landing Page

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz DevCampaigns,

Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

3. RETENTION

Emails & Alerts

Blogs, Content

System Events & Time-based Features

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Anatomy of a web page

The DNA of your best bustomer

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Acquisition

Activation

Retention

Revenue

Referal

Life Cycle Funnel

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Acquisition

Activation

Retention

Revenue

Referal

Life Cycle FunnelChannels

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Acquisition

Activation

Retention

Revenue

Referal

Life Cycle FunnelChannels

Product

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Acquisition

Activation

Retention

Revenue

Referal

Life Cycle FunnelDi

gita

l Mar

ketin

g

Buye

r Jou

rneyChannels

Product

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Conv

ersio

n Op

timiza

tion

Acquisition

Activation

Retention

Revenue

Referal

Life Cycle FunnelDi

gita

l Mar

ketin

g

Cust

omer

Jour

ney

Buye

r Jou

rneyChannels

Product

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Repeatable growth comes from understanding your product, finding your

best user and how to acquire more of them...

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Make themrefer

Retain them

Get revenue from them

Acquirecustomers

Activate them

Repeatable growth comes from understanding your product,

finding your best user and how to acquire more of them...

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Always build your own life cycle funnel:‣Riskiest assumptions‣Data Driven

Customer Acquisition Cost

paid direct search wom inherent virality

VISITOR

Freemium/trial

Enrollment

User

Disengaged User

Cancel

Freemium churn

Engaged User

Free user disengagemen

t

Reactivate

Cancel

Trial abandonment

rate

Invite Others

Paying Customer

Reactivationrate

Paid conversion

FORMER USERSUser Lifetime

Value

Reactivate

FORMER CUSTOMERS

Customer Lifetime Value

Viral coefficient

Viral rate

Resolution

Support data

Account Billing Info Exp.

Paid Churn Rate

Tiering

Capacity Limit

Upselling rate Upselling

Disengaged DissatisfiedTrial Over

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E-commerce SaaS MediaMobile

appUser-gencontent

2-sidedmarket

Six business model archetypes

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The mobile app!customer lifecycle!

Ratings Reviews

Search

Leaderboards

Purchases

Downloads

Installs

Play

Disengagement

Reactivation

Uninstallation

Disengagement

Account"creation

Virality

Downloads,"Gross revenue

ARPU

App sales

Activation

Churn, CLV

In-app"purchases

App

stor

e!

Incentivized

Legitimate

Fraudulent

Ratings!

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How to fit your business idea?

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How to fit your business idea?Start with the customer journey

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Consider your Monday morning routine?

Wake up What happens here?First

coffee break

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Booking a holiday, the start of an emotional roller coaster...

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ShareOrientation Search Selection Booking Planning Departure Holiday Arrival Share

Experience

Booking a holiday, the start of an emotional roller coaster...This is where the next trip starts

+

-

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Part 4:Frictionless Fundamentals

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A wealth of information creates a poverty of attention...

(Computers, Communications and the Public Interest, pages 40-41, Martin Greenberger, ed., The Johns Hopkins Press, 1971.)

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Source: Dr. BJ Fogg, Stanford University

Action: Fogg Behavior Model

trigger(SUCCESS!)

trigger(FAIL!)

ability

mot

ivatio

n

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Focus on the desired behavior, not just the information.

http://www.psychologytoday.com/blog/yes/200808/changing-minds-and-changing-towels

26% increase in towel re-use with an appeal to social norms; 33% increase when tied to the specific room.

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Why UX should be your priority?

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Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

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“You’re more likely to miss stuff just because it takes a long time to scroll down the page”~ User 56A on the MeetHue.com website

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

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Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

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“Your getting blamed for things that are not your fault”

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

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WHAT happened here?

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

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the WAITING experience

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013Source: Jakob Nielsen

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0 0,5

Visual confirmation

Source: Jakob Nielsen

the WAITING experience

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013Source: Jakob Nielsen

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0 0,5 1,5

Visual confirmation

UnderstandNavigation

Source: Jakob Nielsen

the WAITING experience

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013Source: Jakob Nielsen

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0 0,5 1,5 3

Visual confirmation

UnderstandNavigation

Relevant Content?

Source: Jakob Nielsen

the WAITING experience

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013Source: Jakob Nielsen

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0 0,5 1,5 3 10

Visual confirmation

UnderstandNavigation

Relevant Content?

ByeBye!

Source: Jakob Nielsen

the WAITING experience

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013Source: Jakob Nielsen

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Build for Information Processing

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Request(Zero Moment of Truth)

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Reply(Skeleton = Perceived value)

https://www.youtube.com/watch?v=0LueoZaifVE

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Orientation(Rendering = Orientation)

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Decision(Convert into actions)

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Don’t stop with one page: Flow state

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Provide relevant content to support task completion...

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...deliver it fast, focus on perception!

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Click away slidePerformance tolerance?

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Offline vs. Online

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“Both offline and online consumers associate slow performance with

poor customer service”

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Queuing for iPhone6 launch - London 2014

Purpose vs. Context

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Online users often lack context for delays...

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...and see no other option than to click away

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...Conversion Impact Score

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0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 3-3,5 3,5-4 4-5 5-6 6-7 7-8 8-9 9-10 >10

Con

vers

ion

rate

(%

)

Category Title

Real User Monitoring: True Conversion Rate

0%

10%

Competitive Custom B2B

Data collected by MeasureWorks at various e-commerce websites using real user monitoring, reference: http://bit.ly/MW-VEUrum

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Real User Monitoring: True Conversion Rate

0%

10%

Optimal Conversion: 1,8s

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 3-3,5 3,5-4 4-5 5-6 6-7 7-8 8-9 9-10 >10

Con

vers

ion

rate

(%

)

Category Title

Competitive Custom B2B

Data collected by MeasureWorks at various e-commerce websites using real user monitoring, reference: http://bit.ly/MW-VEUrum

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Real User Monitoring: True Conversion Rate

0%

10%

Optimal Conversion: 1,8s

LD50: 4,3s

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 3-3,5 3,5-4 4-5 5-6 6-7 7-8 8-9 9-10 >10

Con

vers

ion

rate

(%

)

Category Title

Competitive Custom B2B

Data collected by MeasureWorks at various e-commerce websites using real user monitoring, reference: http://bit.ly/MW-VEUrum

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Real User Monitoring: True Conversion Rate

0%

10%

Optimal Conversion: 1,8s

LD50: 4,3s

Poverty Line: 7,6s

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 3-3,5 3,5-4 4-5 5-6 6-7 7-8 8-9 9-10 >10

Con

vers

ion

rate

(%

)

Category Title

Competitive Custom B2B

Data collected by MeasureWorks at various e-commerce websites using real user monitoring, reference: http://bit.ly/MW-VEUrum

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On average a fast experience converts up to 70% higher...

Data collected by MeasureWorks at various e-commerce websites using real user monitoring, reference: http://bit.ly/MW-VEUrum

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6 UX ‘hacks’ for happy customers...

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Perception is KEY!

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http://www.nytimes.com/2012/08/19/opinion/sunday/why-waiting-in-line-is-torture.html?pagewanted=all&_r=0

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http://answers.yahoo.com/question/index?qid=1005081200005

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nytimes.com/2004/02/27/nyregion/27BUTT.html

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Which is faster?

Tested with webpagetest.org (WiFi (10Mbs down/1,5Mbs up), 4G (5Mbps Down, 1Mbps Up) & 3G (2000Kbps Down, 764Kbps Up))

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Which is faster?

Tested with webpagetest.org (WiFi (10Mbs down/1,5Mbs up), 4G (5Mbps Down, 1Mbps Up) & 3G (2000Kbps Down, 764Kbps Up))

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Which is faster?

Tested with webpagetest.org (WiFi (10Mbs down/1,5Mbs up), 4G (5Mbps Down, 1Mbps Up) & 3G (2000Kbps Down, 764Kbps Up))

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Which is faster?

Tested with webpagetest.org (WiFi (10Mbs down/1,5Mbs up), 4G (5Mbps Down, 1Mbps Up) & 3G (2000Kbps Down, 764Kbps Up))

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“The faster you can visualize your content, the more engaged your visitors will become”

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Understand & prioritize your feature content

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A: Load carousel first B: Delayed download

20% time spent on priority content 1% time spent on priority content

http://www.nngroup.com/articles/website-response-times/

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Yet, 83% of all Dutch eCommerce sites loads menu before feature

content...

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“The faster you can paint your feature content,

the more engaged your visitors will become”

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Avoid (too much) Sequencing

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“Provide your users the time to understand navigation as they often

overlook things that change too fast and/or often”

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www.example.com

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Homepage Search Productoverview

Product Detail Basket

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Homepage Search Productoverview

Product Detail Basket

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Homepage Search Productoverview

Product Detail Basket

Understand navigation (1-2 sec.)

Consistentnavigation (0,5-1 sec.)

Renew yourorientation (1-2 sec.)

renewyour navigation

(1-2 sec.)

Consistentnavigation (0,5-1 sec.)

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Consistent, simple & user generated navigation

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Use speed to increase perceived value

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Homepage Search Productoverview

Product Detail Payment

Tolerated speed

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Fast response = Fast Experience?

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The kayak effect: http://bit.ly/UgTneD

People prefer to wait for up to a minute to get what they

want from an app rather than get it instantly – if, and

it’s an important if, they believe the app is working

for them

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http://www.fastcodesign.com/1669788/the-3-white-lies-behind-instagrams-lightning-speed

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http://blog.placeit.net/ux-tactics-make-slow-things-seem-faster/

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Show effort, provide specific content,

build trust

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Set your performance budget

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Setting a performance budget:A pre-defined set of metrics

that describe normal behavior

in order to detect variances

and to be comparable in historical context

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Example performance budget...

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Perception

Actionable

Flow

TtFB

Page Size

Time to first Byte 0.0 - 0.2 sec.

Speed Index 0.5 - 1 sec.

Document complete: 1-3 sec

Variation < 20% between pages in funnel

Page size < 1Mb (75 requests)

Example performance budget...

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A practical (and easy DIY) example:

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Service Window

Purchasing a bed,

must be completed (speed),

where every page loads under 3 sec.,

from any location in the Netherlands,

for 95% of all users,

every 5 minutes between 6am and 12pm,

using IE9 and higher,

Customer journey

Metric: Speed

Target: Sec

User scenario

User locations

Percentile

measured with Synthetic Monitoring. Monitoring type

Business

Performance

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Don’t forget? Optimize for Mobile

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Let the device work...

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Make life easy, insert touch events...

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Search

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Touch gestures

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Native gestures

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Scrolling

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Make your UX sticky...

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Experience vs. surfing online....

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Experience vs. surfing online....

Always compared to past experiences

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Experience vs. surfing online....

Task completion has positive impact

Always compared to past experiences

Page 223: The Talent Institute - Grow Better Products, Faster

Experience vs. surfing online....

Task completion has positive impact

Slow downs have more impact

Always compared to past experiences

Page 224: The Talent Institute - Grow Better Products, Faster

Experience vs. surfing online....

15-20% worse than reality

Task completion has positive impact

Slow downs have more impact

Always compared to past experiences

Page 225: The Talent Institute - Grow Better Products, Faster

Consumers visit 18-23 travel websites before they finally convert

Source: TNS/Nipo

Page 226: The Talent Institute - Grow Better Products, Faster

Search/Orientation phase

Perception of experience

1

Experience influence cycle

http://twinkle100.measureworks.nl

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Delivered experience

Your website

3

5

2

Stimulate content/conversion

4

Search/Orientation phase

Perception of experience

1

http://twinkle100.measureworks.nl

Experience influence cycle

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Holy experience, Batman...

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Good Design +

Fast Delivery =

Great User Experience

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Three simple performance checks

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Speed

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actionable, non-technical,

End User Focused

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How fast am I?

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234

go to http://webpagetest.org

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235

www.example.com

select location

select browser

Set connection speed

Create video

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1: Configure test

2: Key Optimizations

3: Performance metrics

Use Akamai State of the Internet quarterly reports to select right bandwith per country: http://www.akamai.com/stateoftheinternet/

Page 237: The Talent Institute - Grow Better Products, Faster

237

http://www.digitalmarketinglive.nl

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Anatomy of a web page

Anatomy of a web page

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A set of resources to be fetched from a server...

The browser renders the page...

This results in the page being displayed on your screen

1

2

3

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Introducing the waterfall chart

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See also: 90 minute optimization cycle, Strangeloop, Velocity 2012

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HTML

See also: 90 minute optimization cycle, Strangeloop, Velocity 2012

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HTML

Resources

See also: 90 minute optimization cycle, Strangeloop, Velocity 2012

Page 245: The Talent Institute - Grow Better Products, Faster

HTML

Resources

Start Render

See also: 90 minute optimization cycle, Strangeloop, Velocity 2012

Page 246: The Talent Institute - Grow Better Products, Faster

HTML

Resources

Start Render

Document Complete

See also: 90 minute optimization cycle, Strangeloop, Velocity 2012

Page 247: The Talent Institute - Grow Better Products, Faster

Waterfall techniquea.k.a. show me where it hurts

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Code Green:Time to first byte?

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Code Orange:Too many connections

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106 Connections(almost one per request)

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Code Blue:Too many bytes (page bloat)

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Code Grey:Bad repeat view

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First view Repeat view

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Why is this important?

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Why is this important? 85-90% of all slowdowns are

caused by your front-end code...

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Visual Comparison

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259

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>

Tested with webpagetest.org (WiFi (10Mbs down/1,5Mbs up), 4G (5Mbps Down, 1Mbps Up) & 3G (2000Kbps Down, 764Kbps Up))

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Compared to the competition?

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No permission needed...

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9.76 sec. 4.75 sec. 7.09 sec. 2.31 sec.

Tested with webpagetest.org (WiFi (10Mbs down/1,5Mbs up), 4G (5Mbps Down, 1Mbps Up) & 3G (2000Kbps Down, 764Kbps Up))

Page 264: The Talent Institute - Grow Better Products, Faster

Or the easy way: http://benchmark.measureworks.nl

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Responsive web?

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http://whatismyscreenresolution.com

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Do you trust your third parties?

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4.3 sec22.1 sec

Source: webpagetest.org

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Source: requestmap.webperf.tools

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Source: requestmap.webperf.tools

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Bonus: Test your design

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0

25

50

75

100

1 2 3 4 5

Slow Average Fast

% of

resp

onde

nts t

hat r

ated

the a

ctua

l web

site s

peed

Design score (1=bad - 5=beautiful)

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When users experienced a slow website, 60% of them rated

design lower

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Page Load Time: https://chrome.google.com/webstore/detail/page-load-time/fploionmjgeclbkemipmkogoaohcdbig

Webpagetest: https://chrome.google.com/webstore/detail/webpagetest/jhbepelanbbipbinkkjcadbjjinjmiec

Page Analytics: https://chrome.google.com/webstore/detail/page-analytics-by-google/fnbdnhhicmebfgdgglcdacdapkcihcoh

Resources: https://github.com/micmro/performance-bookmarklet

Ghostery: https://chrome.google.com/webstore/detail/ghostery/mlomiejdfkolichcflejclcbmpeaniij

Build With: https://chrome.google.com/webstore/detail/builtwith-technology-prof/dapjbgnjinbpoindlpdmhochffioedbn

Responsive Design: https://chrome.google.com/webstore/detail/responsive-web-design-tes/objclahbaimlfnbjdeobicmmlnbhamkg

Clear Cache: https://chrome.google.com/webstore/detail/clear-cache/cppjkneekbjaeellbfkmgnhonkkjfpdn

SPOF: https://chrome.google.com/webstore/detail/spof-o-matic/plikhggfbplemddobondkeogomgoodeg

Browser Plugins:

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Exercise 2: Test the speed of your website

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http://wpt2.measureworks.nl/result/160609_X6_554/

http://wpt2.measureworks.nl/result/160609_2W_e11794954c2320eaba3f99cd63af5a8c/

Desktop:

Mobile:

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Part 5:CRO tactics

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The 5 “mores”

(Sergio Zyman)

More things

To more people

For more money

More often

More efficiently‣ Supply chain optimization‣ Per-transaction cost reduction

‣ Loyal customer base that returns‣ Demand prediction, notification

‣ Maximum shopping cart‣ Price skimming/tiering

‣ Highly viral offering‣ Low incremental order costs

‣ Inventory increase‣ Gifting, wish lists

http://www.slideshare.net/GrowthTribe/growth-tribe-alistair-croll-startup-workshop-lean-analytics-growth-hacking

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Best deal: Get 1, pay for 2

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A typical sales call:Jeroen: How you doing?Bas: Kinda bored...Jeroen: So if I summarize, your challenge is to solve problem x and y, Right?...Bas: Yes, that’s right!Jeroen: It sounds like this is a big need?Bas: Yeah, that’s why we entered your online form to learn moreJeroen: Awesome. Well it sounds like you secured the budget for this?Bas: Yes, we have...Jeroen: Awesome, may I ask who the decision maker is?Bas: I amJeroen: Great. And when would you like to have thisBas: Yesterday, but no later than tomorrowJeroen: Awesome. Enjoy your workshop...

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Budget Authority Need Time

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BANT for online...

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Priority Time Authority Need

4 sales archetypes

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4 sales archetypes

Priority

Must have features

Timelapse

Nice to have

Need to have

Must have

Recognition

Orientation

Understand impact

Sale

Page 292: The Talent Institute - Grow Better Products, Faster

Time

End point focus

Installation

Order

Sequence Critical Event

Delivery

First Value (install)

Value proof

Order

4 sales archetypes

Page 293: The Talent Institute - Grow Better Products, Faster

Authority

Feature diversity

Users

Manager

Executive

Authority

Decision maker

Distributed

Decision maker

Committee?

4 sales archetypes

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Need

Feature discovery

Identifiedneeds

Banana Onion

Feature 2

Features & Benefits

X

Y

Z

1

2

3

Need xNeed Z

Need y

Feature 1

Need X

4 sales archetypes

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Part 5:(Lean) Analytics Stack

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Lean Growth engines

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Problem/Solution

MarketFit

Growth

Lean Startup (Accelerator)

CustomerJourney

Pain/Gain

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Scale

Businessunit

Corporate exit

Scale-up

Problem/Solution

MarketFit

Growth

CustomerJourney

Pain/Gain

Lean Startup (Accelerator)

Page 299: The Talent Institute - Grow Better Products, Faster

Scale

Businessunit

Corporate exit

Scale-up

Pain/Gain

Problem/Solution

Growth

CustomerJourney

Best customer

Repeatable revenue

“Growthhack”

MarketFit

Lean Startup (Accelerator)

Page 300: The Talent Institute - Grow Better Products, Faster

Scale

Businessunit

Corporate exit

Scale-up

Pain/Gain

Problem/Solution

Growth

CustomerJourney

Best customer

Repeatable revenue

Empathy Stickiness Virality Revenue Scale(Lean) Analytics stages

“Growthhack”

MarketFit

Lean Startup (Accelerator)

Page 301: The Talent Institute - Grow Better Products, Faster

Knowing what to optimize when:Putting a line in the sand

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Why is Nigerian spam so badly written?

Page 303: The Talent Institute - Grow Better Products, Faster

Aunshul Rege of Rutgers University, USA in 2009

1000 emails

1-2 responses

1 fool and their money, parted.

Bad language (0.1% conversion)

Gullible (70% conversion)

1000 emails

100 responses

1 fool and their money, parted.

Good language (10% conversion)

Not-gullible (.07% conversion)

Page 304: The Talent Institute - Grow Better Products, Faster

Nigerian spammershave really learned to understand their

target market and ‘best customers’

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correlation vs. causation

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Correlated

Two variables that are related (but may be

dependent on something else.)

Causal

An independent variable that directly

impacts a dependent one.

Page 307: The Talent Institute - Grow Better Products, Faster

1

10

100

1000

10000

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Relationship between Ice cream and drownings?

Ice cream consumption Drownings

Page 308: The Talent Institute - Grow Better Products, Faster

Correlated

Two variables that are related (but may be

dependent on something else.)

Causal

An independent variable that directly

impacts a dependent one.

Ice cream & drowning.

Summertime & drowning.

Page 309: The Talent Institute - Grow Better Products, Faster

A leading, causal, connection is the analytics superpower...

Page 310: The Talent Institute - Grow Better Products, Faster

‣ A Facebook user reaching 7 friends within 10 days of signing up (Chamath Palihapitiya)

‣ A Dropbox user who puts at least one file in one folder on one device (ChenLi Wang)

‣ Twitter user following a certain number of people, and a certain percentage of those people following the user back (Josh Elman)

‣ A LinkedIn user getting to X connections in Y days (Elliot Schmukler)

Some examples

(From the 2012 Growth Hacking conference. http://growthhackersconference.com/)

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One Metrics That Matters

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In a startup, focus is hard to achieve.

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That’s why we pick one metric at at time...

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Picking your One Metric That Matters:

It answers the most important questions for your stage

It puts focus into the entire company

It forces you to put a line in the sand

It inspires a culture of experimentation

Page 315: The Talent Institute - Grow Better Products, Faster

Positioning

So, where does your product fit? (again, positioning)

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If a metric won’t change how you behave, it’s a bad metric

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A good metric is:

Understandable

If you’re busy explaining the

data, you won’t be busy acting on it.

Comparative

Comparison is context.

A ratio or rate

The only way to measure change and roll up the

tension between two metrics (MPH)

Behaviorchanging

What will you do differently based on the results you

collect?

Page 318: The Talent Institute - Grow Better Products, Faster

Data Science evangelist

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“”...There are known knows; there are things we know that we know. There are known unknowns; that is to say, there are things

that we now know we don’t know. But there are also unknown unknowns; there are things we do not know we don’t know.

Page 320: The Talent Institute - Grow Better Products, Faster

“”...There are known knows; there are things we know that we know. There are known

unknowns; that is to say, there are things that we now know we don’t know. But there are also unknown unknowns; there are things we

do not know we don’t know.

Page 321: The Talent Institute - Grow Better Products, Faster

Avinash Kaushik on Analytics

Things we

know

don’tknow

we knowAre facts which may be wrong and should be checked against data.

we don’tknow

Are questions we can answer by reporting, which we should baseline & automate.

we knowAre intuition which we should quantify and teach to improve effectiveness, efficiency.

we don’tknow

Are exploration which is where unfair advantage and interesting epiphanies live.

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known knowns known unknowns unknown unknowns:: ::

(Vanity Metrics) (Actionable trends) (Leading Indicators)

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Now look at your metrics:

How many of my current metrics are good metrics?

How many do you use to make business decisions

Are there others you’re not thinking of?

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Putting a line in the sand

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Importance of correlation vs. causation

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Correlated

Two variables that are related (but may be

dependent on something else.)

Causal

An independent variable that directly

impacts a dependent one.

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1

10

100

1000

10000

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Relationship between Ice cream and drownings?

Ice cream consumption Drownings

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Correlated

Two variables that are related (but may be

dependent on something else.)

Causal

An independent variable that directly

impacts a dependent one.

Ice cream & drowning.

Summertime & drowning.

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A leading, causal, connection is the analytics superpower...

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‣ A Facebook user reaching 7 friends within 10 days of signing up (Chamath Palihapitiya)

‣ A Dropbox user who puts at least one file in one folder on one device (ChenLi Wang)

‣ Twitter user following a certain number of people, and a certain percentage of those people following the user back (Josh Elman)

‣ A LinkedIn user getting to X connections in Y days (Elliot Schmukler)

Some examples

(From the 2012 Growth Hacking conference. http://growthhackersconference.com/)

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Picking your One Metric That Matters:

It answers the most important questions for your business

It puts focus into the entire company

It forces you to put a line in the sand

It inspires a culture of experimentation

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There are experiments everywhere

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The core of lean is iteration...

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Data Ideas

Product

Measure

Learn

Build

Lean = Iteration

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The faster you can iterate, the faster you can find the right product

& market...

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Data Ideas

Product

Measure

Learn

Build

1 iteration = 1 Experiment

Rapid MVP experiment framework

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Data Ideas

Product

Measure

Learn

Build

1 iteration = 1 Experiment

Rapid MVP experiment framework

Experiment Backlog

Be CreativeTeamworkCustomer ValidationData DrivenPositioning Framework

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Data Ideas

Product

Measure

Learn

Build

1 iteration = 1 Experiment

Rapid MVP experiment framework

Experiment Backlog

Be CreativeTeamworkCustomer ValidationData DrivenPositioning Framework

Product

Best CustomerCore ValuesCustomer CareOn BoardingChannel activation

Success? Implement into core product

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Data Ideas

Product

Measure

Learn

Build

1 iteration = 1 Experiment

Rapid MVP experiment framework

Experiment Backlog

Be CreativeTeamworkCustomer ValidationData DrivenPositioning Framework

Product

Best CustomerCore ValuesCustomer CareOn BoardingChannel activation

Success? Implement into core product

Failure? Store data, rinse & repeat experiment

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Lean Analytics Cycle

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‣Buying‣Signing up‣Sharing‣Etc

‣Brainstorming‣Stolen from others‣User feedback‣Etc

One Metric That Matters:Choose the KPI you want to improve that represents the most fundamental

business risk

Did the KPI move past the line in the send

Talk to customers and draw a new line

Try again

Measure the effect the change had on the KPI

Implement the best experiment

Design A/B experiments

Make changes to the business that target this

commonality

Find an attribute the ‘best customers’ share that’s correlated with your KPI

What do these ‘best customers’ have in

common?

Figure out how to improve that KPI?

Have a good idea you want to try?

Draw a line in the sand

Identify your ‘best customers’

Pivot or give up?

Without data With data

Cautious testJust do it!

Yes!

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Do AirBnB hosts get more business if property is professionally

photographed?

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Gut instinct (hypothesis)Professional photography helps AirBnB’s business

Candidate solution (MVP)20 field photographers posing as employees

Measure the resultsCompare photographed listings to a control group

Make a decision Launch photography as a new feature for all hosts

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5,000 shoots per month by February 2012

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“Those houses with high revenue look

really nice.”

Maybe it’s the camera?

“What do all the frequently rented houses have in

common?”

Camera model?

With data:find a commonality

Without data: make a good guess

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Complete Web Monitoring

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Complete Web Monitoring

Web Analytics(what did they

do on the site?)

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Complete Web Monitoring

Web Analytics(what did they

do on the site?)

Usability(how did they

interact with it?)

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Complete Web Monitoring

Web Analytics(what did they

do on the site?)

Performance(could they do

what they wanted to?)

Usability(how did they

interact with it?)

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Complete Web Monitoring

Web Analytics(what did they

do on the site?)

Performance(could they do

what they wanted to?)

VoC(what were their

motivations?)

Usability(how did they

interact with it?)

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Complete Web Monitoring

Web Analytics(what did they

do on the site?)

Competition(what are they up

to?)

Performance(could they do

what they wanted to?)

VoC(what were their

motivations?)

Usability(how did they

interact with it?)

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Complete Web Monitoring

Web Analytics(what did they

do on the site?)

Competition(what are they up

to?)

Performance(could they do

what they wanted to?)

VoC(what were their

motivations?)

Usability(how did they

interact with it?)

Social Media(what were they

saying?)

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Complete Web Monitoring

Web Analytics(what did they

do on the site?)

Competition(what are they up

to?)

Performance(could they do

what they wanted to?)

VoC(what were their

motivations?)

Usability(how did they

interact with it?)

Social Media(what were they

saying?)

“Soft” data

“Hard” data

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Putting a line in the sandAccounting...

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vs. Optimization

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Build your analytics stack

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Voice of Customer PerformanceUsabilityWeb Analytics Social Media

Google Analytics Hotjar Usabilla Webpagetest Obi4Wan

Mouseflow

Optimizely

Qualaroo

Hotjar

Soasta mPulseMixpanel Buffer

Visual Web Optimizer

Google Experiments

New RelicLocalytics

Intercom

Check segment.com for newest integrations

Google TagManager

Google Firebase

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Analytics stack @ Soundcloud

InstallAttribution

In-AppEvents

CampaignMeasurement

ScreenFlows

ConversionFunnels

UserTesting

User/Devicedemographics

CohortAnalysis

BugTracking

A/BTesting HeatMaps App Store

AnalyticsSentimentTracking

KeywordPerformance

CPU/Battery/Network LTV modeling

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Part 6:CRO summarized

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Analytics is your oxygen. Pick one metric at a time

Optimize for a frictionless product

Experiment! Rinse, repeat to find causation

2

3

4

1 Build your positioning statement

Grow Better Products demystified

Build a Revenue Model (for better funding)5

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1

2

3

4

5

6

7

8

9

10

Build your positioning statement

Identify your points of leverage

Clearly state your measurable goalsPick your ‘one metric that matters’

Acquire the right analytics tools

Run your experiments

Test, optimize, measure, rinse & repeat

Find your own hacks

Pick a new ‘one metric that matters’Embrace the experiment mindset

Grow Better Products checklist

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Always remember this...

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Speed is everything!

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Something to read...

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Thanks! More questions?M: [email protected]: @jeroentjepkema W: www.measureworks.nl

View slides: bit.ly/TTI-GROW