If you are interested in Lean Startup principles and want to apply them to develop winning products, this book is for you. It describes the Lean Product Process: a repeatable, easy-to-follow methodology for iterating your way to product-market fit.

The Lean Product Playbook

Preface

Chapter 1: Achieving Product-Market Fit with the Lean Product Process

Part I: Core Concepts

Chapter 3: Determine Your Target Customer (Step 1)

Part II: The Lean Product Process

Chapter 12: Build Your Product Using Agile Development

Part III: Building and Optimizing Your Product

First and foremost, I give my deepest thanks to my wonderful wife, Vanessa. This book would not have been possible without her incredible support; our lives were already quite busy before I started working on this project. Thank you for selflessly shouldering such a large burden so that I could have time to pursue my goal of writing this book.

Acknowledgments

Cooper, Alan. 1999. The Inmates Are Running the Asylum . Indianapolis: Sams. Moore, Geoffrey. 2014. Crossing the Chasm , 3rd ed . New York: Harper Business. Ries, Eric. 2011. The Lean Startup . New York: Crown Business. Ulwick, Anthony. 2005. What Customers Want . New York: McGraw-Hill. 

References

Here's a list of the tools I mention in the book, plus others that I've found useful. I also list valuable books, people, and blogs that I recommend checking out. They are all great sources of information related to the topics I've covered in this playbook. For an updated list of resources, visit http://leanproductplaybook.com .

Resources

AARRR (acquisition, activation, retention, revenue, and referral) framework A/B testing: Lean Product Analytics Process marketing metrics MVP tests, quantitative product optimization with product analytics and resources Acceptance criteria Acquisition: in AARRR framework in Intuit analytics framework optimizing paid versus free Acquisition, activation, retention, revenue, and referral (AARRR) framework Activation, in AARRR framework Active users Ad campaigns Address book importers Adobe Photoshop Advertising revenue model Aesthetics Agile development. See also User stories about benefits of collaboration, cross-functional continuous deployment continuous integration defining product for developers kanban methodology, picking prioritization quality assurance resources Scrum staying ahead of developers stories, breaking down succeeding with test-driven development waterfall approach versus Agile Manifesto Airbnb Amazon's Mechanical Turk (MTurk) Analytics: metrics other learning methods versus product resources Analytics frameworks: AARRR Friendster Intuit Andreessen, Marc Apple: power button change startup chime Touch ID user-centered design Apple iPod ARPU (average revenue per user) Attitudinal information Automated quality assurance testing Average revenue per user (ARPU) Backlog: as kanban status product sprint Balance (design principle) Balsamiq Basketball team analogy Batch sizes BDUF (big design up front) approach Behavioral attributes Behavioral information Behavioral segmentation Best practices for creating successful products: collaboration customers, talking to hypotheses, articulating local maximum, avoiding open-mindedness prioritization scope, keeping small but focused skills, team member testing before you build tools and techniques, trying out Big design up front (BDUF) approach Bing Bipolar rating scales Blank, Steve Blindness, product Blog resources Books (resources) Box (cloud collaboration startup) Brainstorming Buffer (product) Building your product. See Agile development Build-measure-learn loop Burndown charts Business goals, common Buyers CAC (customer acquisition cost) Card sorting CarMax Case studies. See Friendster case study; MarketingReport.com case study Chrome. See Visual design Chunking Churn rate Cisco Closed questions Code review Cohort, defined Cohort analysis Collaboration: cross-functional cultivating team's Color Color palette Compensating testers Composition principles Conceptual design: about personas Quicken example Uber example user research Concierge MVPs “Context of use” dimension Contextual inquiry interviews Continuous deployment Continuous integration Contrast (design principle) Convergent thinking Conversion: in Intuit analytics framework optimizing before acquisition Cook, Scott Cooper, Alan Copy Cost per acquisition (CPA) Cost per thousand impressions (CPM) CPA (cost per acquisition) CPM (cost per thousand impressions) Crossing the Chasm (Moore) Crowdfunding Cuil Cumulative flow diagrams Cup holders Customer acquisition cost (CAC) Customer benefit ladders Customer discovery interviews Customer lifetime value (LTV) Customer research companies Customers: fishing for talking to as user experience judge Customer value: opportunity to add product/feature and product improvements and Cycle time Default choices, smart Delight Delighters Demographic attributes Demographic segmentation Deployed (kanban status) Deployment, continuous Design: conceptual interaction responsive user-centered visual Design principles: composition principles Gestalt principles responsive design screen sizes, designing for multiple visual hierarchy Developers: defining product for staying ahead of Development done (kanban status) Development team member (Scrum role) Discovery questions Disruptive innovation Divergent thinking Dogfooding Dropbox Dropcam Drucker, Peter Dunbar, Robin Dunbar's number Dynamic response Early Adopters Early Majority Efficiency Effort, perceived Ellis, Sean Epics Equation of your business Equations: advertising revenue model impressions per visitor new paying users paying users profit profit per customer repeat paying users returning visitors return rate revenue subscription revenue model visitors Error messages Explainer videos Facebook: ad campaigns marginal costs and revenue Oculus Rift, acquisition of viral coefficient Fake door/404 page test Feature set. See Minimum viable product (MVP) feature set Febreze Feedback: interaction design and MarketingReport.com case study user user testing Fidelity of design artifacts Findability Firmographics Fisher, Paul Fisher Pen Company Five-second test Five Whys Flickr Flip video camera Flow Flowcharts “Follow me home” concept Fonts Font size Ford, Henry 404 page test Free acquisition Freemium business model Friendster. See also Friendster case study analytics frameworks web user needs, hierarchy of Friendster case study: active users invite clickthrough rate invites, average number sent per sender metric optimization loop metrics, defining key metrics, evaluating ROI potential for metrics, measuring baseline values for metrics, observing change in metrics, selecting for improvement registration conversion rate silver bullet opportunities users sending invites Future, predicting with value propositions Gap analysis Gascoigne, Joel Gestalt principles “Get out of the building” (GOOB) Goals, user Google: A/B testing home page design value propositions Google AdWords Google Buzz Google Content Experiments Google Instant Search Google Suggest Google Wave GPS navigation Graphic design. See Visual design Graphics Gretzky, Wayne Gross margin Hand sketches Hero images Hierarchies of needs Houston, Drew Hunt, Neil Hypotheses, articulating Hypothesize-design-test-learn loop IA (information architecture) Icons Illustrations Illustrator Importance versus satisfaction framework: about disruptive innovation versus incremental innovation importance and satisfaction example with real data measuring importance and satisfaction portable music listening sample size of zero Uber example Impressions per visitor In development (kanban status) Indiegogo Information architecture (IA) Initial drop-off rate, in retention curves Inmates are Running the Asylum, The (Cooper) Innovators Inside-out product development Instagram Integration, continuous Integration testing Interaction design Interactive prototypes Interactivity of design artifacts Interviews: contextual inquiry customer discovery personas, creating user In testing (kanban status) Intuit. See also Quicken; TurboTax analytics frameworks product requirements user testing INVEST (user stories acronym) InVision Iteration: build-measure-learn loop hypothesize-design-test-learn loop iterative user testing MarketingReport.com case study Iterative user testing Jobs, Steve Jobs to be done Kanban Kano, Noriaki Kano model Kickstarter KISSmetrics Known knowns Known unknowns Laddering Laggards Landing page/smoke test Late Majority Layout grids Lead time Lean Product Analytics Process: about Friendster case study local maximum, avoiding metric optimization loop metrics, defining key metrics, evaluating ROI potential for metrics, measuring baseline values for metrics, observing change in metrics, selecting for improvement optimization with A/B testing silver bullet opportunities Lean Product Process overview. See also specific topics Learning, ease of Lee, Bruce Live product Local maximum, avoiding: as best practice Lean Product Analytics Process Look and feel. See Visual design Loops. See also Friendster case study build-measure-learn hypothesize-design-test-learn metric optimization viral LTV (lifetime value) MailChimp Mainline code base Manual quality assurance testing Marginal cost Marginal revenue Market, in Product-Market Fit Pyramid Market disruptions Marketing A/B testing Marketing materials tests MarketingReport.com case study: about iterating MVP feature set MVP prototype pivoting recruiting customers reflections target customers underserved needs, identifying user feedback user testing user testing script value proposition Market segmentation Maslow, Abraham Maslow's hierarchy of human needs McClure, Dave McConnell, Steve Mechanical Turk (MTurk) Metric optimization loop Metrics. See also Friendster case study; Lean Product Analytics Process AARRR framework acquisition, optimizing advertising revenue model analytics and A/B testing analytics frameworks analytics versus other learning methods attitudinal versus behavioral information baseline values, measuring cohort analysis conversion, optimizing before acquisition customer acquisition cost customer lifetime value defining key equation of your business Friendster improvement, selecting for Intuit metric that matters most Net Promoter Score observing change in product-market fit, improving profitability, achieving qualitative versus quantitative research retention, optimizing retention curves retention rate Rohrer's research methods framework ROI potential, evaluating Sean Ellis' product-market fit question “Startup Metrics for Pirates,” subscription revenue model surveys usability testing user interviews Metric that matters most (MTMM): acquisition, optimizing conversion, optimizing before acquisition retention, optimizing Microsoft Excel Microsoft Office Migicovsky, Eric Minimum viable product (MVP). See also Minimum viable product (MVP) feature set; Minimum viable product (MVP) prototype; Minimum viable product (MVP) tests; User testing about concierge as term Wizard of Oz Minimum viable product (MVP) feature set: about batch sizes deciding on MVP candidate features, breaking down MarketingReport.com case study in Product-Market Fit Pyramid return on investment, prioritizing with story points, scoping with user stories Minimum viable product (MVP) prototype: about MarketingReport.com case study Minimum viable product (MVP) tests: about ad campaign concierge MVPs crowdfunding design artifacts by fidelity and interactivity explainer video fake door/404 page test hand sketches interactive prototypes landing page/smoke test live product marketing A/B testing matrix of mockups product analytics and A/B tests product versus marketing qualitative marketing qualitative product quantitative marketing quantitative product quantitative versus qualitative wireframes Wizard of Oz MVPs Mockups Moderated testing Moore, Geoffrey MP3 players MTMM (metric that matters most): acquisition, optimizing conversion, optimizing before acquisition retention, optimizing Multivariate testing Music listening, portable Must-haves MVP. See Minimum viable product (MVP) NAICS (North American Industry Classification System) NASA Needs. See also Underserved needs, identifying hierarchies of performance Needs-based segmentation Netflix Net Promoter Score (NPS) New users New visitors “No,” saying North American Industry Classification System (NAICS) No-shows NPS (Net Promoter Score) Oculus Rift Olsen's hierarchy of web user needs Olsen's Law of Usability Open-mindedness Open questions Opportunity to add customer value Oprah approach Optimization with A/B testing Optimizely Outside-in product development Paid acquisition Pain points Pair programming Paying users Pebble Watch “Peeling the analytics onion,” People (resources) Performance needs Persevere (or pivot) Personality Personas: about components conceptual design creating potential problems with sample Photographs, high-quality/professional Pincus, Mark Pivotal Tracker Pivoting: about MarketingReport.com case study Planning Poker Pointedly Portable music listening Power button change on 2013 MacBook Pro Predicting future with value propositions Prioritization Problem space Product, in Product-Market Fit Pyramid Product analytics Product backlog Product blindness Product development. See also specific topics best practices for inside-out versus outside-in Product/feature, customer value delivered by Product improvements, customer value created by Product-market fit: assessing defined improving mountain climbing analogy Net Promoter Score (NPS) as indicator of retention rate as measure of Sean Ellis' question about survey question about usability versus Product-Market Fit Pyramid Product Owner (Scrum role) Profitability, achieving: customer acquisition cost customer lifetime value Profit equation: about per customer basis subscription revenue model Proulx, Tom Proximity, Gestalt principle of Psychographic attributes Psychographic segmentation Pure Digital QA (quality assurance) Qualitative information Qualitative user testing. See User testing Quality assurance Quantitative information Questions: closed discovery Net Promoter Score (NPS) open product-market fit QuickBooks Quicken: cash register sound conceptual design importance versus satisfaction framework personas product-market fit target customer user testing Quicken Home and Business Ramen user testing Ratio scale Readability Ready (kanban status) Recording user tests Recruiting customers for user testing: behavioral attributes compensating testers demographic attributes MarketingReport.com case study psychographic attributes Starbucks user testing Referral, in AARRR framework Registration conversion rate Regression testing Resources: Agile development analytics and A/B testing books people and blogs tools user research UX design Response, dynamic Response time Responsive design Retention: in AARRR framework in Intuit analytics framework optimizing Retention curves Retention rate: about cohort analysis product-market fit, improving as measure of product-market fit retention curves Retrospectives Returning users Returning visitors Return on investment (ROI): approximating formula Friendster case study Lean Product Analytics Process visualizing Revenue: in AARRR framework advertising model average per user in Intuit analytics framework marginal subscription model Revenue equation: about advertising revenue model subscription revenue model Rework Rickover, Hyman G. Ries, Eric Rohrer's research methods framework: analytics and A/B testing analytics versus other learning methods attitudinal versus behavioral information qualitative versus quantitative research surveys usability testing user interviews ROI (return on investment): approximating curves for metrics evaluating potential formula Friendster case study Lean Product Analytics Process visualizing Rumsfeld, Donald SaaS (software as a service) Salesforce.com Satisfaction. See Importance versus satisfaction framework Scheduling user testing Scope Scoping with story points Screen sizes, designing for multiple Script, user testing Scrum Scrum Master (Scrum role) Search engines, value propositions for Serif fonts Shah, Hiten SIC (Standard Industrial Classification) codes Silver bullet opportunities: Friendster case study Lean Product Analytics Process Similarity, Gestalt principle of Simplicity Sitemaps Sketch (design application) Skills, team member Smartphones: as disruptive innovation video recording using Smoke test Software as a service (SaaS) Solution space Sony Discman Sony Walkman Space, use of Space Pen Split testing. See A/B testing Spock approach Sprint backlog Sprint planning meeting Sprint review meetings Sprints Standard Industrial Classification (SIC) codes Standups Starbucks user testing “Startup Metrics for Pirates,” Statistical significance Story points Style guides Subscription revenue model Sullivan, Danny Surprise Surveys: limitations of Net Promoter Score for persona creation Sean Ellis' product-market fit question tracking uses of Swimlanes Swiss Army knives Target customers: fishing for MarketingReport.com case study personas in Product-Market Fit Pyramid target market, segmenting technology adoption life cycle and users versus buyers Target market, segmenting TDD (test-driven development) Technology adoption life cycle Terminal value, in retention curves Test-driven development (TDD) Testing. See also A/B testing; User testing automated quality assurance before building integration manual quality assurance moderated multivariate regression unit unmoderated usability validation Testing done (kanban status) Tetzlaff, Becca Think aloud protocol Thinking, convergent versus divergent Time-boxed increments Tools, resources on: Agile development analytics and A/B testing user research UX design Tools and techniques, trying out Touch ID Toyota Tracking surveys Trunk code base T-shirt sizing TurboTax: competitors interaction design underserved needs, identifying Twitter “Two pizza rule,” Typefaces Typography Uber Ulwick, Anthony Unbounce Underserved needs, identifying: customer benefit ladders customer discovery interviews customer value, visualizing disruptive innovation versus incremental innovation gap analysis hierarchies of needs importance versus satisfaction framework jobs to be done Kano model MarketingReport.com case study Maslow's hierarchy of human needs measuring importance and satisfaction Olsen's hierarchy of web user needs portable music listening in Product-Market Fit Pyramid sample size of zero terminology TurboTax example Uber example Unipolar rating scales Unique visitors, as term Unit testing Unity Unknown unknowns Unmoderated testing Upside potential of metric Usability: color and Olsen's Law of product-market fit versus user experience Usability testing User-centered design User experience (UX): about conceptual design copy customer as judge of delight design principles design resources design skills required by team information architecture interaction design in Product-Market Fit Pyramid usability UX design iceberg overview visual design User feedback: MarketingReport.com case study user testing User goals User interviews User research: conceptual design resources Users: active buyers versus new versus returning paying User stories. See also Story points about breaking down feature set and template for User testing: about compensating testers in-person, remote, and unmoderated user testing Intuit iterative MarketingReport.com case study number of customers to test with questions, formulating Ramen user testing recording recruiting customers for scheduling script for Starbucks user testing structuring usability versus product-market fit user confusion user feedback wrapping up UX. See User experience (UX) Validation testing Value, creating versus capturing Value proposition: about building Flip video camera example MarketingReport.com case study “no,” saying predicting future with in Product-Market Fit Pyramid search engines Velocity Version control system Viral coefficient Viral growth Viral loop. See also Friendster case study Visitors: impressions per new versus returning as term unique Visual design: about color graphics layout grids mockups style guides typography Visual hierarchy Visual Website Optimizer Voice-over-Internet-Protocol (VOIP) Wake, Bill Waterfall approach Web user needs, Olsen's hierarchy of What Customers Want (Ulwick) Wireframes: interaction design MVP tests, qualitative product Wizard of Oz MVPs “Work in progress” (WIP) Zadeh, Joe Zynga 

Index

Dan Olsen is an entrepreneur, consultant, and Lean product expert. At Olsen Solutions, he works with CEOs and product leaders to help them build great products and strong product teams, often as interim VP of Product.

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