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How to Link Your Product to Business Outcomes by Intercom Sr PM

Main takeaways:
- Understand how the features that you ship deliver business results
- Recognize the two different starting points for projects
- If you can't measure impact, bridge the gap with proxy metrics

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How to Link Your Product to Business Outcomes by Intercom Sr PM

  1. 1. www.productschool.com How to Link Your Product to Business Outcomes by Intercom Sr PM
  2. 2. Join 40,000+ Product Managers on Free Resources Discover great job opportunities Job Portal prdct.school/PSJobPortalprdct.school/events-slack
  3. 3. CERTIFICATES Your Product Management Certificate Path Product Leadership Certificate™ Full Stack Product Management Certificate™ Product Management Certificate™ 20 HOURS40 HOURS40 HOURS
  4. 4. Corporate Training Level up your team’s Product Management skills
  5. 5. T O N I G H T ’ S S P E A K E R Robbie Allan
  6. 6. How to link your product to business outcomes Product School SF 01.14.2020 or: How I learned to stop worrying and love the proxy metric
  7. 7. 👋 Hi, I’m @robbiedigi
  8. 8. What we’ll cover Why outcomes matter How product links to impact The two types of project How to drive outcomes
  9. 9. Why outcomes matter
  10. 10. In the beginning, there is nothing…
  11. 11. In the beginning, there is nothing… …so you gotta just ship
  12. 12. VC twitter, 2019
  13. 13. Microsoft Word, mid 1980s
  14. 14. Microsoft Word, 1991
  15. 15. At some point, not all additional features are an improvement
  16. 16. Microsoft Word, 2015
  17. 17. Intercom blog, 2013
  18. 18. Intercom founder, 2018
  19. 19. At that point, the PM job changed from ship things to ship the most impactful things
  20. 20. Because we didn’t want this
  21. 21. I know how to ship product. How, exactly, do I ship outcomes?
  22. 22. The Product Impact framework
  23. 23. The Product Impact framework describes how shipping product drives business outcomes
  24. 24. The Product Impact framework Ship product feature
  25. 25. The Product Impact framework Ship product feature Solve customer problem
  26. 26. The Product Impact framework Ship product feature Solve customer problem Drive customer behavior
  27. 27. The Product Impact framework Ship product feature Solve customer problem Drive customer behavior Impact business results
  28. 28. The Product Impact framework Ship product feature Solve customer problem Drive customer behavior Impact business results Add ‘stories’ feature
  29. 29. The Product Impact framework Ship product feature Solve customer problem Drive customer behavior Impact business results Add ‘stories’ feature Share short term content
  30. 30. The Product Impact framework Ship product feature Solve customer problem Drive customer behavior Impact business results Add ‘stories’ feature Share short term content More sharing, more views
  31. 31. The Product Impact framework Ship product feature Solve customer problem Drive customer behavior Impact business results Add ‘stories’ feature Share short term content More sharing, more views Sell more ads
  32. 32. You can start from anywhere in this framework But there are fundamentally two different approaches
  33. 33. The two kinds of project
  34. 34. Feature-first project Ship product feature Solve customer problem Drive customer behavior Impact business results START HERE
  35. 35. Outcome-first project Ship product feature Solve customer problem Drive customer behavior Impact business results START HERE
  36. 36. Delivering outcomes with a feature-first project
  37. 37. Delivering outcomes with a feature-first project 1. Deeply understand the problem
  38. 38. Feature-first project Ship product feature Solve customer problem Drive customer behavior Impact business results
  39. 39. Product School hates him Learn Product Management with this one weird trick
  40. 40. Delivering outcomes with a feature-first project 1. Deeply understand the problem 2. Proxy impact if you can’t measure it
  41. 41. Feature-first project Ship product feature Solve customer problem Drive customer behavior Impact business results Mission Accomplished!
  42. 42. Ship product feature Solve customer problem Drive customer behavior Impact business results
  43. 43. Ship product feature Solve customer problem Drive customer behavior Impact business results Customizable sidebar that lets you integrate with tools such as Stripe and Salesforce
  44. 44. Ship product feature Solve customer problem Drive customer behavior Impact business results Switching between tools is inefficient and painful for support agents Customizable sidebar that lets you integrate with tools such as Stripe and Salesforce
  45. 45. Ship product feature Solve customer problem Drive customer behavior Impact business results Switching between tools is inefficient and painful for support agents Customizable sidebar that lets you integrate with tools such as Stripe and Salesforce Reduce average reply time
  46. 46. Ship product feature Solve customer problem Drive customer behavior Impact business results Switching between tools is inefficient and painful for support agents Customizable sidebar that lets you integrate with tools such as Stripe and Salesforce Reduce average reply time Improve retention for our Support customers
  47. 47. Ship the feature Users will love it Retention will improve Retention will improve
  48. 48. Using retention as a metric for all projects isn’t feasible… It’s a hard metric to move, and proving a retention improvement requires large-scale A/B tests Gibston Biddle Former CPO, Netflix
  49. 49. 158,000,000 subscribers 60,000,000,000 hours of content annually
  50. 50. There are lies, damned lies, and statisticsExcel models Mark Twain
  51. 51. Proxy metrics are customer behavior metrics that are associated with and stand in for the business metrics you care about
  52. 52. ...but they’re faster and easier to measure
  53. 53. Choose a behavior that empirically and logically correlates with a business metric
  54. 54. Ship product feature Solve customer problem Drive customer behavior Impact business results
  55. 55. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve retention for our Support customers
  56. 56. Ship product feature Solve customer problem Drive customer behavior Impact business results Agents want to use their time as efficiently as possible Improve retention for our Support customers
  57. 57. Ship product feature Solve customer problem Drive customer behavior Impact business results Agents want to use their time as efficiently as possible Improve retention for our Support customers Reduce average time to first close PROXY METRIC
  58. 58. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve retention for new SurveyMonkey users
  59. 59. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve retention for new SurveyMonkey users I want an easy-to-analyze way to know what people think about X
  60. 60. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve retention for new SurveyMonkey users Get 5 survey responses PROXY METRIC I want an easy-to-analyze way to know what people think about X
  61. 61. A new proxy metric is a guess, so trust but verify
  62. 62. This is hard work. Finding the right proxy metric can take 6+ months of analysis and validation
  63. 63. Delivering outcomes with an outcome-first project
  64. 64. Project: Improve Seat expansion
  65. 65. Feature-first project Ship product feature Solve customer problem Drive customer behavior Impact business results START HERE
  66. 66. Outcome-first project Ship product feature Solve customer problem Drive customer behavior Impact business results START HERE
  67. 67. Delivering outcomes with an outcome-first project
  68. 68. Delivering outcomes with an outcome-first project 1. Work back through each step
  69. 69. Outcome-first project Ship product feature Solve customer problem Drive customer behavior Impact business results
  70. 70. Project: Improve Seat expansion
  71. 71. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve seat expansion
  72. 72. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve seat expansion Redesign the ‘add seat’ flow
  73. 73. Ship product feature Solve customer problem Drive customer behavior Impact business results Redesign the ‘add seat’ flow Improve seat expansion
  74. 74. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve seat expansion
  75. 75. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve seat expansion Grow number of Support customers
  76. 76. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve seat expansion Grow number of Support customers Intercom doesn’t handle voice support
  77. 77. Ship product feature Solve customer problem Drive customer behavior Impact business results Improve seat expansion Grow number of Support customers Intercom doesn’t handle voice support Build a voice support product
  78. 78. Delivering outcomes with an outcome-first project 1. Work back through each step 2. Use the right tools to work back
  79. 79. Ship product feature Solve customer problem Drive customer behavior Impact business results Grow number of Support customers Intercom doesn’t handle voice support Build a voice support product Data analysis Improve seat expansion
  80. 80. Ship product feature Solve customer problem Drive customer behavior Impact business results Grow number of Support customers Intercom doesn’t handle voice support Build a voice support product Data analysis User research Improve seat expansion
  81. 81. Ship product feature Solve customer problem Drive customer behavior Impact business results Grow number of Support customers Intercom doesn’t handle voice support Build a voice support product Data analysis User research Product design Improve seat expansion
  82. 82. ● Identify the style of project you’re working on ● Really understand the problem you’re solving and the behavior you want to drive ● Proxy impact with metrics over assumptions If you want to ship outcomes...
  83. 83. Any questions? Robbie Allan @robbiedigi
  84. 84. www.productschool.com Part-time Product Management Training Courses and Corporate Training

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