Analytics in Action: What Users Want: How and Why to Build Knowledge into Your Product
- 1. What Users Want: How and Why to Build Knowledge into Your Product Nils Davis Hannah Flynn With: Moderated by: TO USE YOUR COMPUTER'S AUDIO: When the webinar begins, you will be connected to audio using your computer's microphone and speakers (VoIP). A headset is recommended. Webinar will begin: 11:00 am, PST TO USE YOUR TELEPHONE: If you prefer to use your phone, you must select "Use Telephone" after joining the webinar and call in using the numbers below. United States: +1 (562) 247-8321 Access Code: 893-828-629 Audio PIN: Shown after joining the webinar --OR--
- 2. Revulytics gives any software producers deep and actionable insight into who is using their software products and how they are being used, and the out-of-box analytics that enable them to grow incremental revenue, convert and retain customers, and make decisions about licensing and cloud transformation strategies.
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- 4. About Nils Davis I think I was born to be a product manager. I like to have my fingers in everything, and I love working with people and teams to help them achieve great things. I started doing enterprise software product management in that long ago time when there were no classes or books on PM. I always wished I had the “secret” handbook about product management to help me get over the humps. Instead, I was lucky to work with excellent mentors across my career, who taught me about finding marketing problems, driving the creation of solutions, and taking the solutions to market effectively. In my new book, The Secret Product Management Handbook, I’ve shared a lot of what I learned on how best to achieve this. About Hannah Flynn Hannah went to The University of Chicago, where she majored in Environmental Studies with a concentration in Economics and Policy. She now works with Aggregage on social media strategy and webinar production on sites such as Product Management Today, B2B Marketing Zone, and Customer Experience Update.
- 5. 5 • The actual baseball glove used by Yasiel Puig, the Dodgers’ great outfielder • You can buy it from Wilson for $360 • Why would you buy a glove endorsed by a baseball celebrity? What Is This?
- 6. 6 Agenda • What do people want? • How we can help them get it? • The role of analytics
- 7. 7 Poll: What do you find most challenging?
- 8. 8 • We need whatever edge we can get • And using our hero’s equipment, maybe it gives us that edge • But seriously – Puig chose that glove and uses it • It must be OK • “No one ever got fired for buying IBM” Become A Little More Like Your Hero
- 9. 9 • Do I know enough? • Can I do it? • Will I understand it? • Is this the right choice? • How complicated is it? • What do I do next? We’re All Worried
- 10. 10 • Why do I have to do this? • Not this again • Oh, that’s annoying • Don’t screw it up this time, ok computer? • Why doesn’t it just…? And We Have Better Stuff To Do With Our Time
- 11. 11 • Good products take care of their users • Good products don’t require users to be experts • Users want us to be the experts • Good products make things easy • Good products reduce our perception of risk • Good products embody knowledge, not just capabilities Good Products Address Our Fears and Frustrations
- 12. 12 • Take yourself back to 2010… • Every iPhone photo app was… • A bunch of sliders • Easy to mess up, best for experts • Then came Instagram • No sliders • Pre-made professional, expert filters • Your photos always looked great! What Does This Look Like?
- 13. 13 Why Does This Work? Time For Some Math!
- 14. 14 𝑉 ≫ 𝑃 + 𝑅 + 𝐶 + 𝑂 • V is the value customer gets when their problem is solved • P is the price – how much they pay you • R is a risk factor – (their perception of) how likely the solution is to fail • C is the change management cost of migrating from status quo to your solution • O is the opportunity cost of solving this problem versus some other problem The Value Inequality 14
- 15. 15 In Pictures 15 Price Risk Change Mgmt Opportunity Cost Not Enough Value
- 16. 16 • Make V (value) bigger • Reduce R (risk) • Reduce C (change management) • Make sure you’re not competing with O (opportunity cost) How To Make P (Price) Bigger 16
- 17. 17 Knowledge Increases Value And Reduces Both Risk And Change Management
- 18. 18 In Pictures The Secret Product Manager Handbook 18 Price Risk Change Mgmt Opportunity Cost Excellent Value
- 19. 19 Poll: Do you see an opportunity to build knowledge (or additional knowledge) in your product?
- 20. 20 Where Can You Add Knowledge? • Opportunities abound, even in well-covered spaces, like • Photo management • Email management • Project management 20
- 21. 21 • What do normal people (struggle to) do now with your app? • What do experts do? • Think small • You can differentiate with a very small amount of knowledge • Get out of “spreadsheet thinking” Opportunities To Add Knowledge 21
- 22. 22 • All photo apps added filters • No longer a differentiator • Instagram barely even has them anymore What Worked Before Won’t Work Now
- 23. 23 The Analytics of Knowledge Tying It Together
- 24. 24 The Analytics Of Knowledge • How do you measure how “knowledge” is being used? • How do you measure the value of Bryce Harper’s signature on your glove? 24
- 25. 25 • Sometimes the most important feature isn’t used much • BMW’s performance features • Accept 360 strategies and analytical prioritization • Instagram filters Important For Sales? Yes
- 26. 26 • What if you want customers to use the feature? • Instagram filters • Should Instagram try to increase usage of filters? • Are Instagram filters still important? • Accept360 example • Understand circumstances • What’s most important from customer’s perspective? Important For Sales? Yes Important For Usage?
- 27. 27 • What do I think will happen? • What if I don’t find that? • If I do find it, what does it mean? • Was my hypothesis right? • If I don’t find it, what does it mean? • Lean Startup • p = 0.05 still means 5% of tests will have a false result “Scientific Method” – You Need A Hypothesis 27
- 28. 28 • Rule 1: Data does not tell a story • Rule 2: Use data to support your story • Rule 3: 10% is not interesting. 20% is not interesting. 100% is moderately interesting. 10x is very interesting. • NetIQ example: 20% uptime improvement == 100x downtime reduction • (80% uptime 99.9% = 20%; 20% downtime < 0.2% = 10,000% = 100x • Rule 4: Personal wins and unexpected (positive) outcomes are very interesting How To Use Data To Tell Your Product’s Story 28
- 29. 29 • “What’s Measured Improves” – famous, and misunderstood, Peter Drucker quote • Example of CompStat, the NYC crime tracking app • Check out the “Crime Machine” episodes (#127 and #128) of the Reply All podcast • Many technology shops and enterprises have been brought low by measuring the wrong thing • Harder to do with usage metrics • But easy to measure things that don’t matter What Happens If You Measure (and Incentivize) The Wrong Thing? 29
- 30. 30 • The Secret Product Manager Handbook, available on Amazon in paperback and Kindle • Or secretpmhandbook.com • YouTube • http://www.youtube.com/c/TheSecretProductManagerHandbook • Twitter: nilsie • Blog: secretpmhandbook.com/blog More From Me
- 31. Q&A Hannah Flynn With: Moderated by: Principal, NPD Associates Linkedin page: linkedin.com/in/nilsdavis/ Twitter ID: @nilsie Website: secretpmhandbook.com Nils Davis Site editor, Product Management Today Linkedin page: linkedin.com/in/hannahmflynn Twitter ID: @prodmgmttoday Email: hannah@aggregage.com Website: productmanagementtoday.com www.productmanagementtoday.com/webinar-series/analytics-in-action www.projectmanagementupdate.com/webinar-series/analytics-in-action www.businessinnovationbrief.com/webinar-series/analytics-in-action