Andres L. Martinez Ortiz - Let's Teach Them To Fail

1. Google Confidential and Proprietary
Let’s teach them to fail
Google’s tools for fanboys of
Customer Development
Andres L. Martinez a.k.a almo
Developer Program Manager
@davilagrau
http://gplus.to/almo

2. Google Confidential and Proprietary
Developers Communities:
Healthy and growing
Many Scientists & Engineers
research on basic science
Intellectual property production in
Spain1:
10th in the global rank!
3% of the total scientific
production
but….
30th in the global rank of
innovation
1CYD Report 2011

3. Google Confidential and Proprietary
Others solve problems which
nobody care about them,....
Raxis
1999 Problem: 3D scanner for scoliosis diagnostic
2000 Solution: fitted!
2000-01: Product/market: failed!

4. Google Confidential and Proprietary
Looking for bridges!
2013

5. Google Confidential and Proprietary
The “BIF”* effect
Broken Innovation Funnel
So?
Why?
The9cursesofproduct
development
Science
Technology
Product
Business

6. Google Confidential and Proprietary
The 9 curses of Product Development
#2 I know what features to build
#3 Focus on launch date
#4 Execute instead test, learn and iterate
#5 Traditional (zombie) business plans: no trials, no errors
#6 Job titles are not startups rolls
#7 Sales and marketing teams execute the plan
#8 Premature scale
#9 Managing by crisis leads to a dead spiral
#1 I know what the customers wants

7. Google Confidential and Proprietary
Let’s teach them to fail!
“The closer a company is to
a predictable, scalable
business models, the higher
its likely valuation, preserving
more stock for the founders
at fundraising time”

8. Google Confidential and Proprietary
Customer Development
“ A structured process for testing business models hypotheses”
Structured
process
Testing
Business
Models

9. Google Confidential and Proprietary
Hypotheses?... Business Model Hypotheses?

10. Google Confidential and Proprietary
Customer Development: structure
Customer Discovery
Customer Validation
Pivoting
Search
Execute
Customer Creation
Company Building

11. Google Confidential and Proprietary
Overview of Customer Discovery
From founders’ vision,
create you first business
model canvas i.e. set up
9 hypotheses
Set up facts from
hypotheses conducting
experiments.
Present MVP to your
customers, validating the
problem/solution fit
#1 #2
#3
Stop iif you validate
● size of the market
● problem/solution fit
● willingness to pay
● business model
#4

12. Google Confidential and Proprietary
Present MVP to your
customers, validating the
product/market fit
#3
Overview of Customer Validation
Six “Get ready to sell” tasks
● Product positioning
● “Test selling” efforts
● Hiring a sales closer
● Distribution channel plan
● Refining sales roadmap
● Advisory Board
Put the product to
ultimate test:
#1
#2
Pivot or Proceed!#4
sell it!

13. Google Confidential and Proprietary
Google “Customer Development” Platform
Search
Discovery Validation
Trends
Consumer Survey
Blogger / Sites
Analytics
AdWords Wallet
Play

14. Google Confidential and Proprietary
Google Trends
Market modeling
Size
Distribution
Internationalization
Competition Analysis
Product positioning
Sustitutives
Complementaries
Company positioning
Earlyvangelist identification
Advisory board
identification

15. Google Confidential and Proprietary
USE CASE #1
Market size
or
Customer base?

16. Google Confidential and Proprietary
Google Analytics
Testing A/B (with Blogger or
Google site)
Customer segmentation
Product positioning
Company positioning
Test selling
Marketing inbound (with Google
App for extended analysis
and reporting)
Acquisition plan
Customer acquisition
Customer activation
Business model scaling
Monetization

17. Google Confidential and Proprietary
USE CASE #2
(In game)
User Analytics

18. Google Confidential and Proprietary
Google Consumer Survey

19. Google Confidential and Proprietary
Development platforms
Mobile / Web / Cloud
Free / Freemium
Starter Pack for Startups:
$300 free credit
Online stores
Adwords
Display networks
And many more tools...

20. Google Confidential and Proprietary
So what?
Business Models metrics I
SaaS
Acquisition funnel:
Attention
Enrollment
Stickiness
Conversion / Churn
Customer Acquisition
Cost
Virality
Revenue per customer
Upselling
Pricing
E-Commerce
Mode
Acquisition mode (less
40%)
Hybrid mode (40-60%)
Loyalty mode (60%)
Key Aspect: pricing
Revenue per customer:
Conversion rates
Repeat purchases
Transaction size

21. Google Confidential and Proprietary
So what?
Business Models metrics II
Acquisition funnel
Downloads
Launch rate
Active user (stickiness)
Conversion:
Users paying
Time to first purchase
Revenue per User
ARPU
Customer lifetime value
Free Mobile App
Business Model
Contents add-ons
In-App purchases
Timers
Upselling
Ads (two-side markets)
Virality (rating click-through) shrinks Acquisition cost !

22. Google Confidential and Proprietary
In conclusion….
Google is a great
platform to implement
agile metrics for
business models
All the rules about new-
product management
are turned upside
down!
Save money, testing
your business model
before to scale!

23. Google Confidential and Proprietary
Thank you!
Andres L. Martinez a.k.a almo
Developer Program Manager
@davilagrau
http://gplus.to/almo