The Lean Product Playbook: How to Innovate with Minimum Viable Products and Rapid Customer Feedback

by Dan Olsen

The main reason products fail is because they don't meet customer needs in a way that is better than other alternatives. This

“Product-market fit means being in a good market with a product that can satisfy that market.” My definition of product-market fit—which is consistent with his—is that you have built a product that creates significant customer value. This means that your product meets real customer needs and does so in a way that is better than the alternatives.

That's why Steve Blank urges product teams to “get out of the building” (GOOB for short).

What does this statement mean to you? (to check their understanding) How might this help you? If a product delivered this benefit, how valuable would that be to you? (Possible responses: no value, low value, medium value, high value, or very high value) For a response of high or very high value: Why would this be of value to you? For a response of low or no value: Why

As you talk with customers, you can keep asking them, “Why is that important to you?” until it doesn't lead to any new answers. This helps elevate the discussion from more granular, detailed benefits to higher-level benefits. This market research technique is called “laddering”; as you ask more questions, you are climbing up rungs on a ladder of related benefits. As you move up, ladders can converge, until you eventually reach the top of that particular benefit ladder.

The longer you work on a product without getting customer feedback, the more you risk a major disconnect that subsequently requires significant rework.