This is the 1st post about product management. Part 2 at this link
Content:
In addition to the post about project management , let’s look a little at product management.
The most important difference between a product manager and a project manager/manager is that he does not implement the project from start to commissioning. He creates a product to satisfy customer needs and is responsible for its relevance and commercial success.
This difference may lead to the fact that a product manager may decide not to build a plant, but to develop a new type of lawn.
From the experience of communicating with small private companies, I can say that the current trend is precisely the transition to product management.
CEOs are becoming disillusioned with the project model. The problem is that project managers escalate many problems and are not interested in the success of the project after delivery. The product approach allows the CEO to unload himself, give resources, authority and responsibility to one person, and then ask him for the result.
Whether this is right or not is another question. But these are the realities.
Also, to avoid confusion, I want to touch on the question of what is the difference between a product manager and a product owner (we have already encountered this term in a post about project management - Agile )
A product manager is a hired entrepreneur within a company. He is aimed at developing a product that will bring the greatest profit with the least investment, is focused on long-term strategy, and is responsible for researching the competitive environment and his audience. Here we are talking about marketing tasks and interaction with customers.
The Product Owner is responsible for achieving maximum value of the product as a result of the team’s work. And he achieves this using Scrum , an agile development framework. The product owner understands who is doing what on the team, manages the backlog, and closely interacts with developers and other stakeholders. He is responsible for ensuring that all team members have a clear understanding of what they are working on and in what sequence they will perform tasks.
Essentially, this is more of a project manager.
Also, for a better understanding, let’s also touch on the Scrum Master function, since in many startups they have to take on his role.
Ideally, in developed teams there are PM/PO who are responsible for the product, and there is SM - they are about compliance with Scrum artifacts (stand-ups, daily meetings, retrospectives, facilitation, etc.).
But in fact, it is not always necessary to allocate this role, even if the team works using the framework (at least full-time). For example, the MacPaw company has Scrum Masters who “share” between teams. Also, this role is not always necessary in the early stages of project development, when it is critical to optimize costs. A good SM is an expensive specialist; his monthly wage fund will easily exceed 200 thousand rubles. In addition, not all teams strictly follow the artifacts of the framework; many customize it for themselves - and this also works. After all, the main thing is not theoretical calculations, but the result (a successful product).
All these differences lead to the fact that product management and project management require psychologically completely different people, tools and metrics. We will talk about them below.
The project manager is a highly qualified specialist. According to Adizes' classification, I would characterize him as a PAei - he knows perfectly well what to do and how to do it, understands what it is for and how to interact with people, to whom and what can be delegated and entrusted, how to build a production cycle.
A product manager is an entrepreneur within a company. I would rate his profile as paEI - he clearly understands where to go, knows people’s thinking and what is valuable to them, how to unlock the potential of an idea and a team, has critical thinking, understands what exactly needs to be done, appreciates the “rules”, how insurance against going into a “black” hole.”
Well, in conclusion of the introduction, we will consider the pros and cons of the product approach.
Links:
Wikipedia article
Product management in the course "Digital transformation. Quick start"
Product management in the course "Digital Economy: How Technology is Changing the Market"
Telegram channel Andrey Badin. Manage differently. Product Lab
Who is a product manager and how to become one if you want to create cool products
Materials and video:
Naturally, there is no universal algorithm. Each industry and product has its own specifics:
industry/technology maturity level
features of legislation and restrictions
market volume and its growth/decline, potential profit
accessibility and complexity of technology, possible disruptive technologies
existing and potential competition
level of investment and the possibility of patenting, protection of developments
degree of risk
level of uncertainty.
You also need to analyze marketing and production capabilities, and the availability of technologies specifically for your organization.
But we offer below several general schemes that will help you develop an algorithm that is suitable for you.
During the product development phase, it is necessary to apply the fundamentals of project management. More details here
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If you are involved in product management, then you first need to think about the product.
When we develop a new product not according to technical specifications, but for the market, then at every step we are faced with uncertainty and the need to test hypotheses - play a guessing game.
And if we start trying to follow the classic “waterfall” project approach, then the risks become gigantic. We remember from the “project” post that the initiation and planning stages are the most critical. They can bury everything.
That is why “creative” thinking and flexible management methodologies are now mainly used. To create popular products and make a profit from it .
This is a technique by which we seek to understand the user, challenge assumptions and reframe the problem to find alternative solutions that are not obvious. To be successful, you need to have a well-developed customer focus. And anyone who uses design thinking subordinates their research and work to the interests of the client, rather than to their interests of the company, boss or bureaucracy. Customer focus, for us personally, is the main criterion in any product and project.
The author of the approach, Herbert Simon , identifies the following stages:
Problem Definition
Study
Formation of ideas
Prototyping
Choosing the best solution
Implementation of the solution
Evaluation of results (money, number of sales, positive reviews).
In order to successfully implement these stages, the following principles must be observed:
Empathy
The ability to empathize, “get into your head,” and understand the thoughts and feelings of another person.
Thinking outside the box
Ability to come up with new and interesting ideas.
Using prototypes
Ability to create prototypes of your solutions.
Smart minimalism
Discarding unnecessary things.
Love of failure
The ability to easily cope with failures and learn from them.
Focus on user experience
Ability to convert product technical characteristics into benefits.
The whole process can be described by the following algorithm:
we determine the direction for testing, the basic idea/hypothesis
put ourselves in the client's shoes
we focus on his experience, how he solves his problem and formulate the final problem
We generate ideas on how to solve the client’s problem. You can use lateral thinking here
we select the best idea. Let's take our time here and can use CusDev
We make a prototype, MVP , which should solve the problem. Let's sweep away everything unnecessary
we collect feedback and evaluate the results, make further decisions
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If design thinking allows you to understand the user and focus on solving a specific problem, then lateral thinking allows you to come up with something completely new and revolutionary.
In design thinking, by focusing around a problem, you look only forward and can “see new opportunities.” And lateral thinking allows you to “look around.”
Stages of lateral thinking:
Selecting focus. In order to learn to think laterally, you need to have an idea. It will help you decide on the direction of movement, the area of creative activity, and will become the basis. Without it, it will not be possible to create something truly new and creative.
Lateral gap. After you find an idea, you need to break the patterns, the generally accepted framework, and expand the stereotypes. You will have to break the logic of your idea. Move it a little to the side, change the focus.
Making connections. So the pattern is broken. Logic is broken. What to do next? It sounds absurd, but try to find something logical in the new way of thinking. This is difficult to do. But only in this way will you come to something new.
The author of the approach, E. Bono , proposed 4 methods for conducting lateral thinking sessions:
Synectic assault.
It suggests a combination of incompatible things. According to the author, this exercise destroys patterns and stereotypes, and also activates the work of the brain.
Synectic storming is an improved method of brainstorming , which is based on the search for analogies.
The technique consists of 4 parts (analogies):
Think about how people most often solve a problem (direct analogy)
Answer the question: how would I solve this problem? (personal analogy)
Briefly describe the situation (generalizing analogy)
Imagine how a historical or fictional hero would act (symbolic)
After analyzing each point, you will find a non-standard way out of any situation.
Random word.
This method can be used in group and independent classes. It is needed in cases where conversation participants are running out of ideas. Invite everyone to name the word that first came to mind. And then try to find its connection with the problem being solved.
As you make connections, you will undoubtedly find new solutions. And also look at the situation from an unexpected angle.
Going beyond.
The solution to any problem or task is limited within certain limits. This is the budget, time frame, resources. And it is not always possible to expand these boundaries. But try to imagine that you managed to do it. What would you do in this case? Surely you would have hundreds of new, unusual ideas.
Ways to develop a non-standard solution:
Look for new ideas in all areas.
Forget about the stereotypes others use to make decisions.
Doubt it.
Consider several options to solve the problem at once.
Spend time solving lateral thinking problems.
Think about how you can use old things in creative ways.
Take a creative approach to even everyday tasks.
Learn to enjoy thinking and searching for new ideas.
Links:
Lateral thinking on Wikipedia
Lateral thinking: what it is and the main methods of development
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SPACE
SPACE is one of the author’s methodologies for analyzing a product “from above”, searching for obvious imbalances in the product strategy.
The approach consists of analyzing 5 criteria and assigning points to each criterion, from 1 to 3 plier
Supplier - requirements for the qualifications of the supplier, for you (1 - no requirements, 3 - very high)
Product - complexity of the product for implementation/development (1 - simple product, 3 - complex)
Average DealSize - with the average cost of the transaction (1 - low cost, 3 - high check, which requires a long decision making)
Customer - number of clients (1 - mass client, 3 - narrow circle of clients)
Evaluation - with the falsity of making purchasing decisions by the client (1 - instantaneous, 3 - carrying out R&D, complex tenders)
Then visualization and analysis are carried out:
are there any distortions? Are all elements in the same zone?
it is much more expedient to move to the outer contour of the circle, into the mass market zone, or to the inner circle, into the zone of expensive individual sales.
Presentation for use and with examples below
CusDev (Customer Development) is a study of client needs through special “in-depth” interviews. Research is carried out to test an idea or prototype of a product on a potential audience and understand how much the product will be in demand. One of the key tools for testing product ideas.
CusDev is a qualitative rather than a quantitative tool, meaning the data collected is treated as ideas and hypotheses that are subsequently tested with quantitative experiments (for example, surveys or test runs with analytics).
Let's take a closer look at the most popular research methods:
Deep (user research).
Most often these are problem or solution interviews. The first type helps you understand whether the user has a problem from which your product should (or is already eliminating) him.
The purpose of decision interviews is to understand whether your product solves the user’s problems, and if not, what features need to be added. To conduct a decision interview, you need at least a prototype
Quantitative surveys.
These are questionnaire tests. There are no clear restrictions on the sample: the number of respondents can vary from 10 people to several thousand.
A/B tests.
They compare specific elements of a product (design of buttons, banners on a website, etc.) and ask the respondent to choose the best one from those presented.
CusDev allows you to:
- understand whether the consumer needs the product, whether clients really have this pain;
- does the product solve this pain?
- draw a portrait of the client;
- adapt the product to the target audience;
- make the very product for which the consumer agrees to pay money.
Advantages of CusDev:
Assessing customer needs for a product before investing in it. The research shows whether the audience is ready to buy the product or not.
Favor of investors. Sponsors invest money when they see results from target audience research that are beneficial to them.
Elimination of incorrect company expectations. The method shows where manufacturers went wrong.
Flaws:
Requires time investment. Research delays the creation of the product itself or its adjustments.
Revealing secrets about the product. CustDev reveals secrets about a new product as research progresses.
Checklist: when to use CustDev
Situation No. 1 - you are creating a product in an existing market. What you need to understand:
rules of the game: who is already on the market, who is the leader, what is the pricing policy;
how people choose similar products, which is important to users;
what the user is satisfied and dissatisfied with, what problems he experiences when using existing services.
Situation No. 2 - you are creating a product in a new market. What you need to understand:
who are the future consumers;
what problems they face, what needs potential clients have;
how important is it to solve this problem;
whether demand can arise in principle;
what the product lacks to be in demand.
Situation No. 3 - the product already exists. Improve the product, service, increase sales. What you need to understand:
why consumers choose you;
why they buy from competitors and not from you;
in what situations and life circumstances your products are consumed;
who exactly consumes;
who makes the purchasing decision;
what is the current process for using your product.
Interview stages
1. Formation of a hypothesis
At this stage, a needs research is carried out: what the consumer lacks and what products are still not on the market. For example, the team came up with an e-book rental service where you can pay for access to books for a week. At the same time, the cost of rent will be lower than a full purchase. This approach, according to the team, should stimulate the reader, since reading time is limited.
2. Segment selection
In CustDev, the audience is divided into groups based on demographic characteristics (for example, gender, age, marital status), behavioral characteristics (for example, habits, purchases, services in demand), geography and social status. Segmentation helps to personalize the offer, make it relevant and determine the approximate cost of the product that will be acceptable to the buyer.
The future e-book rental service will have two age segments in the audience: 16–25 years old and 25–35 years old. In each of the groups, the emphasis is on people who strive for self-development and discipline, participate in challenges and marathons, study time management and spend from 300 rubles a month on books.
3. Compiling a list of interview questions.
Questions help to consider the client’s pain, identify a need and understand how best to satisfy it. For example, if the market still does not have high-quality services for selecting psychotherapists, searching for contractors or renting a car. Depending on the product, the list of questions may vary, but in general it is important to talk with customers about the following aspects:
How do users currently fill their need for the product, how much do they pay for it, and how satisfied are they with the solution?
What exactly causes inconvenience?
How do they see the ideal solution to the problem (result, cost)?
What happens if they can't solve the problem?
When was the last time the user encountered a problem and what emotions did the situation evoke in him?
4. Search for potential buyers
Each person in the target group is not just a respondent, but a potential buyer of the product. When conducting an interview, it is important to find out why he is interested or not interested in purchasing, what does not suit him, and whether he has alternatives. Based on the responses of 10 people, you can already form a rough picture, but the more respondents, the deeper the audience’s understanding will be.
You can search for people to participate in the study using any channels: personal acquaintances, social networks, offline events, announcements from bloggers or on websites. The only important thing is that they fall into the target group of the project. Potential participants should be immediately warned that detailed answers will be required from them, and the interview itself will take some time.
5. Conducting interviews
You can communicate with the audience in 2 different cases: when the company just identifies a request and when it offers to test a ready-made solution, which is why interviews are divided into 2 types: problem-based and solution-based.
6. Data processing
The results of the study can be combined into a table:
Write questions on the top line.
In the first column, indicate the names of the respondents.
Write down their answers to each question in the columns.
Insights from users and notes from the interviewer can be placed in a separate tab so as not to be lost. In addition to tables, you can use graphics or mind maps to visualize the results.
It is important to remember that in the CustDev methodology, the product rarely meets the client’s expectations the first time. One person can guess the expectations of an entire target group only if he has been working in a certain area for a long time and is launching a new branch of business in it. In other cases, it is important to record consumer dissatisfaction and take into account his arguments.
Brief reminder:
- work out the hypothesis being tested in advance
- Allow 2-3 minutes for one answer, and no more than 30 minutes for a full interview.
- record the interview on a tape recorder or camera in order to draw conclusions later.
- 10 - 15 questions in total
- you can ask questions in which the respondent himself will tell you about the advantages and disadvantages of the product / his pains
- 2 interviewers per respondent. While one interviewer is communicating with the interlocutor, the second is monitoring his reaction and recording key points of the interview.
What not to do during Customer development:
try to confirm a hypothesis rather than test it;
make the user a usability expert;
speak professional language;
ask superficial, closed questions for castdev;
offer answer options or push for something;
argue with respondents, interrupt them, or vice versa - encourage them;
paraphrase answers or make them up;
explain something without asking;
forget to thank you for the answers.
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Another important point when launching a product is to draw up a business model and understand how we will make money on it.
Business Model Canvas can help us - one of the basic and most popular methods for building a business model. This model is very visual: all interconnected business processes are described on one sheet (the same visualization principle is used in Toyota’s “ A3 Report ”).
This tool is relevant for a startup - a new product on the market with undeveloped business processes. It is believed that this is not about a vegetable stall or a barbeshop, but our opinion is that this is a working tool for any business.
The principle of preparation is simple. We divide the sheet into 9 parts, each of which reflects 1 of the business processes.
To understand your value proposition, there is a diagram below.
Below are examples of real startups.
After you decide on a business model, an approximate list of them can be found here , ask yourself a few questions:
Switching cost
How difficult is it for consumers to “leave” to another company?
Regular income
Does each sale require new effort or is there a guarantee of subsequent income after the first transaction?
Income and expenses
Do you generate revenue before or after costs are incurred?
Revolutionary cost structure
Is your cost model better than your competitors?
Transferring work to other parties
Does your business model allow consumers and third parties to create value for your company at no cost?
Scalability
Can you grow without running into obstacles such as infrastructure, customer support, hiring?
Protection from competition
Is your business easy to copy?
This will help you understand how viable your idea is.
Useful materials
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Roadmap is a strategic plan that defines the goal of a project and includes the main steps, or milestones, to achieve it. Roadmaps are often used when creating a business or startup. This tool is also used in project management. But there was no point in disassembling it separately; there it is an integral part of the standard.
The purpose of the roadmap is to convey the main ideas and progress in tasks to team members and external stakeholders (shareholders, customers, partners).
Any roadmap focused on its audience has its own characteristics:
For guidance
Types: product, industry, corporate and project roadmaps.
What it contains: general vision of the strategy; results and timing of their achievement; necessary resources; main activities and steps of the project
For partners, investors
Types: industry, corporate and project roadmaps
What it contains: benefits of the project/service; benefits of cooperation, results and time frames for achieving them
For sales departments
Types: product, corporate and project roadmaps
What it contains: training materials for the project; benefits for the target audience; planned events and marketing activities
For developers, technical performers
Types: product, technological and project roadmaps
What it contains: product functions, services; major releases and release dates; material and technical base
For HR department
Types: Project and corporate roadmaps
What it contains: terms of motivational programs and cash bonus payments; additional human resources needed
Differences between roadmaps in Agile (flexible) and Waterfall (classic creation and projects) teams
Waterfall teams are typically business-oriented, driven by financial metrics. In Agile, goals are customer-centric (e.g. user growth and customer satisfaction).
Waterfall roadmaps reflect one- or two-year completions, while an Agile roadmap typically reflects quarterly completions. Planning in Waterfall and Agile companies also differs depending on the time frame.
The differences are also related to the principle of interaction. Interactions in Waterfall teams are consistent, and members of Agile teams work in a cross-functional and concurrent manner.
Waterfall roadmaps have limited flexibility, but Agile roadmaps are much more flexible, as is the methodology itself.
Personally, we are of two minds about this tool. On the one hand, it is really needed for general coordination. But there are very few projects in life in which they would be used for real, and not for preparing a report before a meeting or on a target date. Therefore, it may not be correct; you should not make it too detailed and strictly prescribe deadlines.
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CX from English. Customer eXperience - customer experience , all the customer’s impressions of the company that sells him a product or provides a service. CX includes all stages of customer interaction: from the first advertisement seen to after-sales service.
If User eXperience (UX) is the experience of working with a product, CJM is a map of the client’s interaction with the company, starting from the moment of searching for information, then CX is the experience of the client’s relationship with the brand.
A CX specialist deals with the entire experience of interaction between a client and a brand, that is, his scope is broader and is not limited only to interfaces.
Key principles of CX design
It is important to understand and know the customer experience in all channels
Customer experience is always subjective, so it must be personalized
Knowing that a customer can go to a competitor at absolutely any stage of interaction should motivate you to continuously optimize the brand’s customer experience
Customer experience has a direct relationship with how much money a customer will spend
It is useful to involve customers, seek their opinions and feedback, draw conclusions from them and make changes - such partnerships with the client improve CX
Changes in customer experience must be driven by financial data and observations of customer behavior - what matters is how much they spend and how they interact with the brand
This leads to the 3 laws of CX design:
You can't create a great customer experience without understanding the Customer Journey.
Customer experience is not just another abstract term that has no relation to a company’s revenue. On the contrary, sales directly depend on it, it can influence them
CX must be constantly optimized to avoid being left behind by competitors.
6 Components of Creating Great CX
Below are some screening questions to help you assess your current CX or prepare to create a strategy:
1. Availability
This element includes the number of channels, their quality and relevance to the audience. How easy is it for people to find and connect with your brand?
2. Ease of purchase
It is very important how convenient it is for the client to purchase a product or order a service, and whether this process goes smoothly. This also includes the following points: whether the site has all the current products and their prices, whether there is enough information, how clearly it is indicated. The client should be able to easily and simply catch all the necessary information and, if necessary, obtain additional help when making a purchase.
3. Convenience of service
How impeccable is your service? Is it easy for the client to get advice, contact the manager, and get acquainted with all the questions he has about the product or services? Are there reference materials and a section with frequently asked questions on the site?
4. Personalization
Does your product solve a specific customer's problem? Will the person to whom the product is offered feel that it is made especially for him and sold on individual terms?
5. Pleasant user experience
Are your channels optimized for mobile devices? How convenient is it for the client to receive information from different devices, are there any technical difficulties, is the interface overloaded?
6. Channel flexibility
To what extent are the brand channels interconnected and exchanging information? Can a client contact you through any convenient channel without worrying that their data will be lost or will have to be updated again? Is it easy for a customer to move from one channel to another?
How to create a quality CX design strategy: 5 tips
1. Research and understand your target audience
First of all, you need to understand who your clients are and what they are like. Even if you currently have certain ideas and portraits, don't be afraid to question them and analyze them again. No matter how banal it may sound, people are very unpredictable. The way you see your customers (or want to see them) may be very different from the real state of affairs. So be prepared to study and be patient.
Create 2-5 customer personas in several segments of your target audience. Personas should include demographic information (gender, age, etc.), client motivations, pain points, needs and wants. You must know well what your customers want and how exactly they would like to get it.
An effective way to collect this information is to contact the target audience directly, conduct surveys and observations, and analyze all the collected information together with a team of specialists.
2. Articulate a CX vision
“Vision” probably seems too vague to you and has little practical use. However, you can’t do without it. You need core principles to guide your CX design. They can be compiled based on the values, mission and vision of the brand. These elements should be reflected in all communications, in all interactions between the brand and the audience. And CX is no exception here either.
Answer the questions:
— What impression should contact with our brand leave on the client?
— What kind of customer experience do we want to offer based on our mission and values?
3. Map the customer journey - Customer Journey Map
We will write about it below
The map will help you visualize all the stages that a client goes through when contacting your brand.
4. Create an emotional connection
People highly value brands that demonstrate a “human” approach to their customers. If the customer sees that he is being treated as an individual, and not just a faceless source of profit, then he will be more willing to continue the interaction and will be willing to spend more money.
Nowadays, customers want not only high quality services and products, but also appropriate treatment. They are ready to give their money only to those who value and respect them. This is why creating an emotional connection is so important. There should be more to your relationship than just buy and sell. If you don't give this to the client, he will find another company. Once you know your audience well, it will be much easier to create a strong emotional connection. You will know what your customers want and be able to provide it to them.
5. Monitor customer reviews and value their opinions
No one can tell you what needs to change in the customer experience better than the customers themselves. Keep track of what they write and say about your service or products, how easy or difficult it is for them to make a purchase, whether the prices are clear, whether it is convenient to pay for orders, etc.
You don’t have to wait for negative reviews; ask your customers yourself. Place questionnaires at different stages of interaction, send questions by email, ask them on social networks or call them by phone. Just don’t be intrusive so that the client doesn’t think that you are wasting his time unnecessarily in your favor.
Ask questions from a position of caring for the client - you want to improve the service and are open to suggestions and wishes. Remember to also ask what the client likes and not just focus on the negative. Encourage customers for their feedback - offer special conditions, discounts and other pleasant bonuses.
5 qualities for a better customer experience
1. Client-oriented approach
Don't let the term "client" confuse you. For a successful CX manager, it is important to understand by customer not only those people who are already buying something, but also everyone who interacts with the brand in some way. Both current clients and potential clients matter. That is, it is important to concentrate specifically on the target audience, to put it at the forefront.
A competent CX specialist should first of all think about the needs and requirements of the target audience, since all his activities are aimed at maximizing their satisfaction and leaving a pleasant impression. Therefore, he must direct his energy and attention to studying and understanding the client, at some points even put himself in his place, and be able to look at the process of interaction with the brand through his eyes. It is imperative to divide audiences into segments, create customer profiles and study them separately, personalizing the approach for each.
2. Ability to look beyond the product
Unlike UX design, a CX designer must look beyond the mere ease of use of a product or service. All touch points with the brand and the company, all elements of interaction - from marketing to delivery service - are under his control. Therefore, knowledge in all these areas is an added advantage.
3. Skills for solving complex and non-obvious problems
Working with customer experience involves problems that require a non-standard approach and high competence. You will almost never encounter simple problems with obvious solutions. All tasks will require attention, time, and the ability to understand and get to the truth.
4. Ability to work with data
A customer experience specialist must be well versed in large amounts of sometimes contradictory data, be able to analyze it and draw conclusions. All your own assumptions will have to be checked and supported with reliable data. There is often no room for risk and attempts to guess what the client will like best. Even minor changes made at random can cause harm and leave negative impressions on many people.
5. Continuously improve your skills
You must understand that user behavior tends to change very quickly. New channels of influence on clients are emerging. Just yesterday, your potential clients asked their friends for recommendations, but today they trust anonymous reviews on review sites. New progressive methods of studying the buyer and his experience of using the product are emerging. You should always remember this and not hope that having studied the client’s path once, you will be able to work with him according to a known scheme indefinitely.
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BX (Brand Experience) - experience of interacting with a brand. BX defines the tangible and emotional experience that customers have before, during and after interacting with a brand.
This is a tool for older and mature companies that have solved their pressing issues, when processes are built, clients receive high-quality services, and we need to grow further - a story about BX arises.
BX is a natural progression from CX. It is a more holistic approach that allows organizations to become customer-centric and renew growth.
Yes, this is a little beyond the scope of our post, but nevertheless, we consider it useful to have a general idea of “what will happen next.” And if you have a startup, and you are the founder of it, then you definitely need to understand further development.
BX is in many ways an ongoing visual brand experience. All company messages should contain relevant information and a tone of voice that will build strong associations with the company’s brand in the minds of customers and pop up when they think about it or mention it. For example, like Starbucks does by personalizing your coffee next to their brand using your name.
Thus, Accenture analysts concluded that companies focused on providing personalized experiences for their customers, employees and society, year after year, increase their profitability by at least 6 times compared to similar companies in their industry.
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Customer Journey Map (CJM) is the history of the client’s interaction with the company from the moment of recognition of the need to repeated communications after the purchase or provision of the service. A visual representation of the client’s movement towards the product, thanks to which growth areas are identified to improve the service and the product itself. It is compiled on behalf of the buyer, taking into account his goals, feelings, emotions, fears, and values. Is one of the factors of quality CX . The difference from a sales funnel is that the funnel depicts the customer’s movement to the product linearly, without displaying problem areas.
To create a CJM, it is necessary to evaluate the consumer’s actions at all stages of working with the company. To do this, it is also necessary to have enough information about both the client and the product under study.
Stages of creating a CJM:
1. Collect basic consumer data and create a persona
The goal is to understand who your client is.
We collect the necessary data about the client: habits, motives, emotions, thoughts, expectations, fears. Based on the data obtained, we form a collective image of a typical product buyer.
2. Determining the stages that the client goes through
We determine the points of interaction between the client and the company and their channels. Note what actions the client takes to move towards the product and through what paths he takes his steps.
It is recommended to consider the following stages:
creating awareness, searching for information;
choosing a company;
studying the site/social media networks/online store of the company;
visiting a store (if there is one);
conclusion of an agreement (purchase online/offline);
delivery, installation, warranty service (courier delivery/pickup/delivery by mail/purchase in an offline store/assembly or installation/warranty/exchange);
maintaining contact, attracting buyers for repeat purchases.
3. Define your character’s goals and expectations at each stage
We identify critical points and obstacles that prevent the client from moving towards the product. This may be consumer uncertainty about the quality of the product, dissatisfaction with the service at a certain stage. In a word, everything that helps you make a choice in favor of a competitor in the end.
4. Identify contact points
We get rid of obstacles, making the consumer journey more comfortable.
Contact points are a variety of situations, places and interfaces where the client comes into contact with the company. You may not even realize how many there are and how detailed they can be examined.
Contact points can be divided into online and offline
Examples of contact points:
Online:
Advertising (context, SEO, target);
Website / Social networks
Search results
Reviews
Mobile app
Email newsletter
Forums
Offline:
Advertising (billboards, leaflets, in transport, in shopping centers, TDs)
Office (if any): navigation, location, parking, sign, greeting, atmosphere, cleanliness, availability of a meeting room, drinks
Employees: appearance, voice, smile, communication skills, knowledge, badge
Store: before the store, the store itself, in the store
Products: design, name, packaging, prices, instructions, guarantees
Technologies
Business processes
Materials:
advertising (business cards, price tags, signs)
commercial (price list, commercial offer)
Telephone: dial-up numbers, greeting, answering machine, voiceover for call hold, call forwarding
TV commercial
Radio advertising
Also at this stage, you can note the client’s actions when interacting with points of contact and in general at the stage.
5. Find barriers
At each stage, the client encounters different problems. They prevent him from moving to the next stage. Nobody likes difficulties; you want everything to be quick, easy, and accessible. Therefore, the more barriers, the greater the likelihood of a decrease in brand loyalty and a move to competitors.
To learn about barriers, you need to put yourself in the client's shoes: think and act like him. Only then will you know the problems you are facing. It is also good to analyze feedback, reviews, complaints, and customer wishes.
6. Identify ways to overcome barriers
You have done a lot of work (from 2 days to a couple of weeks) and have reached a stage that will allow you to reach a new level. Brainstorming, new employees who are not yet blind, and the involvement of external consultants will help here. Your task is to make the client’s journey as comfortable as possible and reduce the number of barriers to a minimum. You may have to give up something, reorganize work, introduce new institutions and tools.
It will be helpful to assess your financial ability to make changes. It may be necessary to highlight priority innovations for which there is a budget, and a little later to close other gaps.
7. Select additional metrics
For some, the selected indicators will be enough. But if you want, add it. Take as a basis everything that will bring you closer to the client and allow you to build a contact model.
8. Visualize
Present all the information received in a form convenient for you. You can use Google Sheets, Touchpoint Dashboard (paid), Сanvanizer (free), Realtimeboard (free for up to 4 participants), uxpressia.com (free map visible to the creator, you can create 1 map for free), realtimeboard.com (free for up to 3 maps).
9. Start over
Let's start over. We study the client, product and market anew, create a new map and continuously improve the quality of the product and service.
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Jobs To Be Done is translated as “a job that needs to be done” or “a task that needs to be solved.” This is the concept according to which the client does not buy a product or service, but a solution to his problem. As a result, the JBTD tool is designed to help solve the key task of a manager - to understand what kind of task the client sets for a product or service.
There are 2 versions of Jobs to be Done:
Jobs-As-Progress (work as progress) - a person hires a product to work to become better, that is, the end result is important to him. The customer searches, buys and uses the product for the first time because they want to make a difference. For example, lose weight, improve comfort in the home, improve the quality of project implementation
Jobs-As-Activities (work as a process) - a person hires a product for a job, and the process of completing the task itself is important to him. That is, he wants to do this “work”. For example, listen to music, go to a restaurant and enjoy the atmosphere. In this case, the user does not always prioritize achieving the end goal.
The key tools of the approach are
Job Story
Allows you to form a hypothesis for testing. This is a sentence based on the principle: When ___, I want ____ so that____
Interview
This is CusDev . In addition to insights and hypothesis testing, it helps to understand:
unobvious competitors in the market,
motivating customers, consumers,
product development vector.
A detailed analysis of the tool and application practice is available via the links and video below.
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HADI is an acronym for hypothesis, actions, data, insights, which translates as “hypotheses”, “actions”, “data” and “conclusions”.
The essence of HADI cycles is that we formulate a hypothesis, take an action aimed at testing the hypothesis, receive some data and feedback, and then draw certain conclusions.
1. Formation of a hypothesis
Hypotheses are formed according to the “If something, then something” scheme. For example, if you change the content of the website’s selling pages, sales volume will increase by 20%. The hypothesis will be successful if the key indicator—sales volume—increases by 20% or more. If the change is smaller, we abandon the put forward hypothesis and test others.
To simplify the formulation of hypotheses, use the SMART principle:
Specific . The hypothesis must be specific. It must clearly describe what we are changing and what we are striving for.
Measurable . Metrics for measuring results: sales volume, number of calls, etc.
Attainable . The goal set must be achievable. Updating 100 pages of content by the end of tomorrow is an unattainable goal. There simply isn't enough time for this.
Relevant . The chosen hypothesis must be relevant to the company and lead to the project goal.
Time-bound . Time limit. A minimum amount of time should be allocated to testing a hypothesis in order to test the largest number of options. As a rule, the duration of one cycle is 1-2 weeks.
The hypothesis can be anything. The main condition is the possibility of an objective assessment based on quantitative criteria. And there is no need to be afraid that it will be unsuccessful. The goal of HADI cycles is not only to identify successful hypotheses, but also unsuccessful ones, so as not to waste time and money on them.
2. Actions
We put forward a hypothesis: “if you update the content of your sales pages, your sales volume will increase by 20%.” The cycle is 7 days. During the first cycle, we rewrite the texts, optimize them for target queries, change the title, description and H1.
At this stage, you need to do everything quickly, but do not forget about quality. If the changes bring the desired result, all that remains is to refine them and scale them to obtain maximum effect.
Consider an important point: you need to perform only those actions that are provided for by the hypothesis. No other changes, even the smallest ones, because as a result they can have a significant impact and the objectivity of the assessment will be impaired.
3. Analytics
After making changes to the site, we wait and collect statistics. In IT projects you can use analytics systems: Yandex.Metrica and Google Analytics. To collect accurate data, we will set a trigger on the “Buy” button installed on pages with updated content.
4. Conclusions
The data collected in the third stage needs to be interpreted and conclusions drawn. For example, before updating the content of sales pages, on average, the “Buy” button was clicked 5-7 times daily. After the actions taken within the framework of the hypothesis, the number of daily clicks on average increased to 9-10, that is, the planned mark of 20% was reached.
Useful files
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In this subsection we want to talk about UX. A very familiar concept in the context of IT products, but we will try to explain to you what it is, in general, and how to apply it to other products.
UX is User Experience (literally: “user experience”). That is, the user’s experience/impressions of working with your product/service. Does he manage to achieve the goal and how easy or difficult it is to do so.
UX is the user journey from entry point to exit point, from point A to point B.
UX is also translated as human-centered design.
UX design is based on user experience. It relies on deep analysis of user experience ( CX ) and is focused on improving the quality of life of the consumer ( HCD ). UX design increases user satisfaction by improving product characteristics:
Ease of use;
Pleasure when interacting with the product;
Availability.
This is an element of your CJM. This is the customer journey within a specific channel/business process.
And the task of UX is to build the most convenient and intuitive service for the client within the product/channel.
As you can see, this completely IT story can be transferred to ordinary business when creating and describing business processes, if ordinary notations and approaches are too complex and incomprehensible for you.
We will also share a table for collecting customer feedback, which will help optimize your UX based on lean manufacturing principles in order to ultimately get a product that is convenient for customers.
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A/B testing is a marketing research method, the essence of which is to compare two options, for example a website. That is, in this study, a control group of elements is compared with a test set in which one or more indicators were changed in order to find out which changes improve the target indicator and are better perceived by customers. Thus, the test compares option “A” and option “B” and the goal is to determine the better of the two options tested.
Qualitative testing will help significantly improve the UX of the site and reduce many risks associated with optimization.
For example, Booking.com uses all the power of A/B testing to outperform competitors and increase momentum.
As you read this article, there are approximately 1,000 A/B tests running on Booking.com.
Even though Booking.com has been conducting A/B testing for over 10 years, they are constantly thinking about how they can improve the user experience. And this gives the company an advantage.
And despite the fact that this is an “IT” tool, it can be easily used in any industry.
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In a post about project management, we wrote that 70% of projects are either problematic or unsuccessful. Now let's look at the top 30% in terms of product success. How many of them are truly successful?
And here a useful tool is Lean Startup.
Lean Startup is a lean manufacturing concept (there will be a separate post about this) applied as part of the start of a project. Author - Eric Rees .
Initially formed on the basis of the activities of technology companies in Silicon Valley.
Based on concepts such as:
scientific approach to startup management;
verified training;
conducting experiments;
iterative release of products to shorten the development cycle;
measuring progress;
receiving valuable feedback from clients.
According to Eric, there are 2 main reasons why startups fail:
Passion for traditional business calculations, plans, strategy development, and comprehensive market research. But the problem is that in the conditions of complete uncertainty in which startups operate, these classical management methods do not work.
The second reason may seem completely opposite to the first - seeing that traditional management approaches do not work, entrepreneurs generally refuse any management tools. They let things happen and have a “just do it” mentality.
“Startup success is not the result of good genetics or luck. This success can be planned for by following the right processes. In other words, success can be learned. This means that it can be taught.”
It is based on 5 principles:
1. Entrepreneurs are everywhere.
Eric calls anyone who has a startup an entrepreneur. A startup is “an enterprise whose goal is to develop new products and services under conditions of extreme uncertainty. This means that the Lean Startup approach can be applied to companies of any size, even very large enterprises, in any sector and in any industry.”
2. Entrepreneurship is management.
A startup needs a new type of management that can handle extreme uncertainty. Eric Ries is confident that any modern company whose development depends on innovation needs the position of “entrepreneur”.
3. Confirmation with facts.
The goal of a startup is not only to produce goods and make money. A startup needs continuous learning using a scientific approach and testing hypotheses empirically.
4. The “create-evaluate-learn” cycle.
Its essence: First, create a minimum working version of the product (MVP), evaluate consumer reaction, and then decide whether to continue on the chosen course or change direction.
5. Accounting for innovations.
This is what is usually called boring details. But taking innovation into account is essential to improving startup performance. Innovation accounting is a system of criteria and indicators that help evaluate the success (or failure) of a startup's actions.
We also note the following principle - Genchi genbutsu, principle 12 from DAO Toyota.
Strategic decisions must be based on knowledge of the consumer and genchi genbutsu is translated as “go and see for yourself.”
Example. The manager responsible for the development of the Sienna minivan traveled to all US states and talked with families, finding out what kind of minivan the people of America wanted to see and took into account the opinions of their children, which had a positive effect on sales of this brand of car.
There are always people behind the numbers; you need to gain knowledge first-hand, literally going out into the street. And the first step is to find out whether potential customers actually have a serious problem that needs to be solved.
The main goal of the first contacts with clients is to find out whether we understand them.
Described in more detail in “The Toyota Way: 14 Management Principles for the World’s Leading Company” by Jeffrey Liker.
The Lean Startup method does not initially focus on creating an ideal product, but on releasing a minimum working product (MVP) and constantly receiving feedback from customers in order to understand their real needs.
If the initial assumptions are not confirmed by practice, then they are erroneous and it means that the direction of movement needs to be radically reconsidered.
This approach reduces the risk that a startup will create a product that no one will need.
Actually, these are all the principles laid down in AGILE
MVP is a version of a product that allows you to launch the “create-evaluate-learn” cycle with minimal effort, spending as little time as possible on development and understanding whether the project is worth developing further, what changes should be made to the strategy, and what should be left in its original form.
Goals:
test a product hypothesis with minimal resources
speed up learning
reduction in engineering hours spent
get product for early customers
basis for other products
obtaining competencies to create a product
Some of the most common approaches to creating an MVP:
Flintstones MVP.
This approach involves simulating the presence of functionality, although in fact it is not technically implemented in any way. MVP is aimed at testing a hypothesis, proving the viability of the chosen business development model. The validity of the method was proven by Nick Swinmern, the founder of the online store Zappos, whose value “broke” the $2 billion mark in 2015.
He made a website and published photos of different shoe models. I received the order, went to the store, purchased the desired pair and sent it to the buyer. So he tested the viability of the idea of selling shoes over the Internet, while initially he did not spend money on renting a warehouse and purchasing products, but only imitated their availability.
Concierge MVP
At the initial stages of product sales, the service is provided manually. For example, we want to make a service for financial accounting and planning for individuals. But to check whether this idea will be in demand, we will first make several financial plans for clients manually using Excel. This way we can understand who is willing to pay and how much, what functions need to be implemented first, etc. Often the MVP concierge helps in generating new ideas that subsequently make the final product better.
Disjointed MVP
The piecemeal MVP method is used when an idea can be tested and implemented without developing unique software. Instead, ready-made tools are collected, combined into one system and presented in a single interface.
An example is the groupon shopping service. It was once a simple Wordpress site where all user interaction was done via email. Only after receiving the first feedback and financial results were social functions, full-fledged email distribution, automation and a mobile application developed.
Product with one parameter
This type is used most often when there is a finished product with a minimum set of functions (usually one). The founders of Spotify acted according to this principle (streaming audio only).
Releasing a product with one function (parameter) allows you to narrow the target audience, receive feedback and analyze it, and then begin testing.
The most common mistakes when creating an MVP:
Attempts to achieve the ideal
The task is to give the user a basic idea of the product; a priori it should not and cannot be ideal. You are testing a hypothesis!
Sloppy work
The MVP should be simple but high quality. You shouldn’t give away a completely semi-finished product. If you are making a website, do not leave it on a free domain of the format abc.def.vny.oprst
Lack of feedback
We must not forget about the priority goal - collecting feedback. Even at the planning stage, you should determine key metrics that will show the success of the project.
"Empty" promises
Some make announcements of cool and extraordinary opportunities. Of course, this is all great from a marketing point of view, but if promises are not kept, users will begin to leave the project.
Opting out of analysis and analytics
Pay attention to objective facts: bad metrics, negative reviews, etc.
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