Category Archives: session summary

Never Rescue your Team from the Villain – September 2021 Wrap

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As Product Managers, we constantly find ourselves knee-deep dealing with strategic decisions, prioritisation and leading without authority – all of which can create anxiety and conflict in our day. But how should we approach this drama, and are there ways to flip the switch? In September, Kate Edwards-Davis introduced us to the Karpman Drama Triangle to help illustrate the dynamics of this drama.

The Karpman Drama Triangle

The Karpman Drama Triangle, developed by Stephen B Karpman, is a social model that describes the human interactions between three opposing roles:

  • Victim;
  • Persecutor (Villain); and
  • Rescuer (Hero)

Karpman represents these roles within an inverted triangle, to demonstrate the natural hierarchy, with the persecutor and rescuer being in positions of power or authority above the victim.

The Victim can commonly feel powerless, helpless or oppressed. They may hold a sense of pity for themselves, and feel incapable of negotiating or meeting the demands of the persecutor. Surprisingly, the victim usually initiates the drama, when they seek out a rescuer to save them, which in reality can reinforce the Victim’s negative mindset.

The Rescuer (or Hero) can be perceived to have an authority or mastery, which we don’t recognise in the victim, and will step in to save the victim from the persecutor. The victim encourages this belief, as it is easier to be rescued rather than being accountable. 

The Persecutor (or Villain) may be critical of the victim. They blame the victim for failing, or perhaps even for the anticipation of failure. They might feel superior to the victim, and that the victim’s actions (or rather inactions) are holding them back. Often, a person may assume the persecutor role due to being a victim in another triangle.

In reality, everybody oscillates between all three roles in different situations. The repetition and switching of roles reinforces the cycle, and can cause the participants’ actions and reactions to fall into dysfunctional patterns.

Who is the winner in this circle (triangle) of drama?

Nobody wins.

Everybody feels justified in their position.

  • The Persecutor avoids accountability, as it is always somebody else’s fault. Some common traits include not knowing how to use authority with compassion, or how to ask for something difficult. They struggle to challenge others without threats or aggression.
  • The Rescuer receives gratification from having somebody depend on them. However, their actions prevent the victim’s own self-empowerment. 
  • The Victim finds it easier to not take responsibility for their own feelings when challenged in a difficult situation. They seek safety and protection from others, and feel valued by having others take pity on them.

Beating the Triangle

We need to learn to recognise the triangles around us, so that we can avoid them if we can. 

If avoidance is not possible, or it’s too late and we’re already in a triangle, then we should reflect on our own role first, and how our interactions may be contributing and prolonging the triangle. Resist the temptation of judging others and their intentions. We need to shift our own mindset first.

There are some alternative triangles to counter the drama triangle.

The Empowerment Dynamic

  • The Challenger (instead of Persecutor) makes the requests and gives constructive feedback to drive the team forward.
  • The Coach (instead of Rescuer) empowers the victim to help themselves.
  • The Creator (instead of Victim) accepts and pursues the challenge.

The Compassion Triangle (OR Winners Triangle)

  • The Persecutor needs to use assertion rather than aggression.
  • The Rescuer needs to care for the victim, encourage and acknowledge their capabilities, rather than taking over and solving the problems for them.
  • The Victim needs to accept the challenge, and admit their vulnerabilities. Be accountable but also seek the appropriate guidance.

Resources and Slides

Some of the resources mentioned during this session included:

Thank you

Thank you again to our presenter, Kate Edwards-Davis for sharing, our volunteers Nosh, Gwen and Steve, and our host and Zoom sponsors, Cogent – who help companies build great products loved by millions of users, from small startups through to tech giants like Square, Xero and REA.

What to do when someone mentions Product Led Growth – October 2021 Wrap

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What is Product Led Growth?

Product Led Growth is a business strategy where user acquisition, conversion, retention and expansion are all driven primarily by the product itself. 

Moving towards Product Led Growth can be beneficial (for the right products), with reduced acquisition costs or reliance on sales teams, as your customers will be the ones promoting your product. 

Common growth principles

Adopting a Product Led Growth requires a few shifts in mentality and approach:

  • Company-wide alignment, so that growth is not reliant or led only by the product team;
  • Showing rather than telling mindset;
  • Don’t just rely on sales, invest in customer success;
  • Create viral loops, or opportunities to delight customers, that encourage them to refer others; and
  • Help your customers succeed in the job they are trying to achieve, rather than constantly trying to cross-sell or upsell them with additional features or products. If you use a Freemium model, are features locked behind a paywall, preventing your customers from winning?

Common growth myths

Like any new framework, there are often misconceptions. Some of the common ones include:

  • Only the product team is responsible for growth.

No, Product Led Growth is a business strategy, which requires alignment across the whole company, so that different areas work together as their collective efforts ultimately create the user experience.

  • All products can achieve explosive viral growth.

No, growth usually happens through incremental cycles. Help your users be successful, and then make it easier for them to tell other people that might find your product valuable. 

  • A replacement for your marketing and sales strategy.

No, Product Led Growth should complement your marketing and sales strategy, and can even make it more efficient.

Product Led Growth in Action

Some examples of companies applying Product Led Growth, include:

  • Zoom – Referring colleagues and friends combined with their seamless onboarding meant new customers could be up and running, and on a call (receiving value) within 10 seconds. They also employed a freemium model, with free calls up to 40 minutes, and a subscription to unlock longer calls and other features.  
  • AirBnB – Not only using beautiful photos to make rental listings more attractive (and thereby increasing conversion) they also added value by reverse engineering Craigslist’s API so that they could automatically post on behalf of the owners (and increase reach).

Dave took us through some of his own experiences, as the founder Tuki Health. 

Tuki Health was a startup focussed on gut health, starting its journey as a direct to consumer (B2C) offering, providing expert clinical dietician advice and meal plans. 

  • Acquisition: As part of their initial research, they identified a great number of potential users. Through Facebook groups and targeted campaigns, they were able to acquire 7000+ users, and gain in depth insights about customer behaviour. 
  • Activation: Beginning with a quick and simple signup process, they eventually introduced friction, to slow users down, so that they could better understand value (access to actual dieticians, etc).
  • Revenue (and Pivot): Tuki Health provided some great customer outcomes. However, it was extremely difficult to get people to upgrade past the freemium offering to become paying customers. The unit economics didn’t work, which caused them to pivot to a Health SaaS targeting dieticians.
  • Referral: Dieticians had different goals compared to end-users. They didn’t care about collecting hundreds of data points, they just wanted to get the plans, send them out, and move on to the next customer. With this insight, Tuki was able to focus on getting their meal plan creation down from 10 mins to 1 min. This generated real value for the dieticians, and helped them to start referring Tuki Health to others.
  • Referral and Acquisition: But, dieticians are bad at sales. So Tuki created landing pages that made it easier for dieticians to refer to others. 

Key Takeaways

  • For PLG to work, you need to be providing a lot of value with your product.
  • Prioritise analytics.
  • Large companies have big silos. Connect and align the different areas with the Pirate Metrics Framework.
  • Design and develop viral loops into your product.
  • Experiment often and share learnings with key team members.
  • Establish psychological safety among teams, this leads to great collaboration and a great team environment.

Our Speaker

Dave McManus is an experienced product professional with over 12 years experience. He loves working with multidisciplinary teams to solve problems through thoughtful design and engineering solutions.

He has had the pleasure of working with many great companies from large fortune 500’s like: Microsoft, The North Face and Proctor and Gamble to name a few. Originally from Melbourne, Dave also lived in San Francisco for 5 years and founded a digital healthcare company and worked with many different startups including NextVR (acquired by Apple), Innit, Cool Effect (kickstarter for climate change) and many more.

Further Reading and Resources

ProdAnon-DaveMcManus-Oct2021

Thank you

A big thank you to our speaker Dave McManus, our volunteers Gwen, Steve and Nosh, and to our event sponsors, Pluralsight/A Cloud Guru and Cogent.

A Practical Guide to Customer Feedback – July 2021 Wrap

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We can always benefit from getting closer to our customers. But how should we go about it? In July, Dipa Rao shared some stories from the trenches, and some practical advice to help us navigate our way through. 

When do we need customer feedback?

Always! We should get customer feedback as often as possible. And at different stages of the product life-cycle.

  • Understanding the problem space: What are the problems our customers are trying to solve? What are their current solutions and alternatives? What are the gaps?
  • Validating solutions or ideas: What is attracting new customers, and is there information or data that they want to carry forward? Or perhaps designing a mockup to gauge interest, before completely building out new functionality.
  • Prioritisation: We often have ideas from many different sources, such as from our call centre and frontline colleagues, management or even directly from our customers. But where should we start? Surveying our customers to rank importance can be beneficial, to ensure we direct our limited and precious resources in the right places.
  • Any change, big or small: Depending on the size of the change, we can employ different techniques to gather feedback, from limited betas to feedback forms post launch.

How to get feedback?

When designing a method to gather feedback, there is no perfect solution. Depending on our skill sets and resources, this could end up looking different for each of us. Net Promoter Score (NPS) could be a good start. However, it is not specific by design, so it may not entirely meet our needs.

Whether we decide to use email, or create an in context web/app form, or even instrumenting a survey with google analytics, try to make it:

  • Easy;
  • Have minimal set up; and
  • Repeatable

How to prepare?

Expectations: Letting both our internal and external stakeholders know what to anticipate will often make our lives easier. 

External customers – Why are you asking me? When will I hear back? Will I hear back? What are alternative paths for support?

Internal customers – Awareness of our activities for support (if needed). Sharing feedback and insights, some which may be distressed feedback.

Analysis: Ensure there is time and capacity to analyse feedback, before trying to get it. If not, don’t bother getting it and wasting our customers’ time. We may also need to mash data together from different systems, so finding an easy and/or repeatable process will be important.

Bureaucrazy! Never underestimate the amount of bureaucracy that may exist in large corporations. From setting up a shared email address, standing up a new platform, covering the legal and privacy aspects of engaging with customers, or ensuring our proposition is aligned to our marketing and brand guidelines. All of these things can take time. 🙁

Types of feedback

When the feedback starts rolling in, it can come in different shapes and sizes. So it can be useful to categorise the feedback, and to learn when to take it with a grain of salt.

Shiva (the destroyer): This feedback can be brutal and destroy imperfections. But don’t take it to heart, as this may be more indicative of a lack of loyalty or trust for our overall product, brand or company. Remove the emotion, and take the feedback for what it is. Feedback from Shiva can impact our morale (or our teams), so take in small doses.

Vishnu (the preserver): Feedback from Vishnu is generally pragmatic and more balanced, and can encourage us to keep going. We’re on the right track. 

Devi/Shakti (the creator): We can consider Devi as expert or superusers, who will give detailed feedback, and potentially challenge our thinking or approach. A great way to foster new ideas and allow them to grow.

And then there are ‘other’ types of feedback. 

Got feedback, now what?

Once we have feedback, we should analyse and share the insights. Feed the other parts of the business. Construct a shared understanding. The feedback can also help motivate our teams. And where possible, we can also respond, to open a dialogue, so that we can build empathy with our customers, to allow us to build better products.

Thank you

A big thank you to Dipa Rao, our volunteers Gwen and Nosh, and to our generous host and Zoom sponsor, A Cloud Guru – they’re on a mission to teach the world to cloud.

Resources and Slides

You can find Dipa on LinkedIn and Twitter. 

Some of the resources mentioned during this session included:

Wrap-Up: The Shape Shifting Product Manager

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Daniel Kinal is a long haul product manager having been in the industry for awhile. Over the years, Daniel realised one of his strengths was being able to shape-shift.

Daniel talked about the various ways product managers are asked to shape shift. We might need to do some copy writing or sketch out a UI or develop a GTM plan or do a sales demo or create some reporting and do data analysis or manage a team or be the scrum master or even CODE (?!??!!!!!!!!).

The list of what we might end up doing goes on & on! There’s always gaps to fill and as a product person, we often feel like we need to help out to make sure our product becomes successful.

But then Daniel realised this might not be a strength. Our jobs are already hard without adding additional work. Shape shifting isn’t the best thing for him – nor the company he works for.

Why? Because we product folks need to focus on the ‘kernal’ – what Daniel calls the true product work. This includes

  • building trust & alignment
  • maximising value in a sustainable way
  • doing course correction
  • and more! (watch the video)

The thing about the ‘kernal’ is, it’s our job. While all these other shape shifting tasks can be done by others (others who hopefully exist at your company), doing the kernal isn’t done by others.

To help us, Daniel has a few meditations on our shape shifting nature…

Product Anonymous would like to thank Daniel for a great talk & convo after. No matter where you are in your product career, you should consider his insight and questions to ponder.

Resources

Daniel Kinal – The Shape Shifting PM – (had a baffling zoom thing happen & DK’s video isn’t appearing)

Our Speaker

Daniel Kinal has been in product management for over 18 years, chiefly working in IT, focusing on B2B products & services.

He began his marketing, communications, and consulting career but soon learned that the aspect of marketing he loved most was working out what to build, for whom, and why.
He gets excited about helping businesses become more effective in decision-making, more efficient in their processes and more engaged with their customers.

Daniel is at his happiest when waving his arms about in front of a whiteboard with a bunch of smart people, exploring problems and weighing up solutions.

Our Sponsor

Cogent – cogent.co – If you need great people to help build your product, we do that and a whole lot more. Over the years, we’ve worked on more 100 digital products loved by millions of users, from small startups through to tech giants like Square, Xero and REA.

So whether you’re leading a small product team or the CPO of a growing tech company, our focus is on supporting you to design and develop products that your users love.

Next Up

Kate Edwards-Davis will be talking about saving your team (or rather, not saving them) from villians on September 30th. Details & RSVP links here.

Continuous Discovery IRL – June 2021 Wrap

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More companies are realising that the path to success includes knowing their customers better. As they commence their journeys towards continuous discovery to deeply understand their customer and their problems, there can be some lofty expectations. However, the reality is often very different, and can be fragmented, chaotic and full of barriers. 

In June, we caught up with Ben Ryan who shared 3 lessons from his experiences at FatSecret.

Lesson 1: Challenging the Status Quo

How well do we really know our customers? Just a little, ie. at a surface level? Perhaps it’s as little as reading the feedback or complaints that actually make their way to us. Or possibly even less than that. 

Recognising this as a problem and the need for change is only the first step. However, making the case can be another story. 

Resistance can coming in various forms:

  • Sacred cows – firmly held beliefs that are rarely questioned and/or exempt from criticism or opposition, even in the face of contradictory evidence;
  • Brittle foundations – legacy systems which are too hard to change;
  • Sunk cost fallacy – ‘we’ve already invested so much in this direction/system/platform, so it’s too late to change now’;
  • Or just being comfortable – changes require effort and moving towards the unknown.

Teresa Torres talks about having weekly conversations with your customers.

However, FatSecret was far from that. They had convoluted pathways for customers to make contact, and a small team (of 3 people) already inundated with 200-300 emails per week. This drove a fear of scaling, and not being able to handle additional volumes if the floodgates were opened. Furthermore, a dispersed customer base, with less than 1% within Australia, introduced additional geographical, cultural and linguistic challenges.

As an app, the other option for your customers is to leave public (1 star) reviews on the app store for others to read. Not a great alternative.

Even though there was no clear line to customers, they got scrappy and improvised. They also kicked off a longer process of a qualitative and quantitative research project with an external agency. Its brief was to gather insights, and begin co-designing the future vision. Once they started to build things that customers were vocalising as their pain points, retention started to improve, and there was an increase in active usage and engagement.

Lesson 2: Revisit old ideas with fresh eyes

There will always be some ideas that don’t work out. But it is also good practice to revisit those ideas later. What was wrong with those ideas, and what were the conditions the first time around? Are those conditions still in play, or has the environment changed? Do you have new lessons or understand things differently now? With a different perspective, you may find elements worth pursuing or that can be repurposed. And other times, they may turn out to still be bad ideas.

To try and place customer experience at the forefront of decisions, FatSecret introduced a discovery phase at the start of projects. Surely doing discovery about a business objective would help them identify customer needs earlier, to ensure they were solving customer problems?

Unfortunately not. 

In reality, Project Discovery was unsuccessful as:

  • Discovery didn’t begin until the project had been incepted around a business goal;
  • Having a big deliverable at the start of the project, required time to do the customer discovery;
  • There was high overhead (and difficulty) finding target users with the problems that aligned with the business goal;
  • Discovery became a reflection of the customer experience, producing only a limited and blinkered view of the customer problems, and not going deep enough into the wider customer journey to understand the context of the problems.

Lesson 3: Continuous Improvement

Invest in the time for reflection.

Similar to re-evaluating past ideas, it can also be beneficial to circle back to past decisions and assumptions, and challenge your original thinking. Were the assumptions correct? Would the potential outcome be different from what you know now? Are you pursuing the best options, or are there better opportunities available?

Four years on, FatSecret has started moving towards Continuous Discovery to generate insights. Customers are interviewed on a regular basis, and then mapped to overarching archetypes, to understand their various drivers and how they will respond to different types of obstacles.

There’s still a long way to go, but FatSecret have progressively put distance between what used to be their status quo, and where they are now.

Resources and further reading

Some of the resources mentioned during this session (and a few bonus ones too):

Thank you

Thank you to Ben Ryan (Head of Product at FatSecret) for sharing, our volunteers Gwen and Nosh, and to our generous host and Zoom sponsor, A Cloud Guru – they’re on a mission to teach the world to cloud.

Slides and video

Being Objective is Hard: Product from the Agency Side – April 2021 Wrap

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Between snap lockdowns and restrictions, we were lucky to be able to sneak in another face to face meetup to talk all things product. 

Even with all the various frameworks available, design thinking, lean methodologies and agile practices, product should be a piece of cake, right? Well, we all know that it rarely is. But what about when we add an agency lens on top as well? In April, Jim O’Malley and Su Lim from Isobar Australia shared some of their perspectives from the other side.

Some Common Challenges

  • Lack of customer focus: The product team may believe they own the product, but it is vital to remember our customers, because they’re the ones that will use our product. Often the product team may get it, however, sometimes the rest of the organisation may not.
  • Fixed solutions: where the team or organisation doesn’t apply an hypothesis-driven approach. Remember, ultimately, until it goes out in the market, we actually don’t know. We’re just guessing. 
  • Lack of autonomy: Teams are given a bunch of features to build, instead of problems to solve.
  • Hippos: Although often well meaning, having the Highest Paid Person’s Opinion (HiPPO) driving the direction, rather than underlying data can be a recipe for disaster. This can also cause a lack of communication or alignment to vision, and tends to drive the wrong focus.
  • Data derailers: Whether it is too much, or too little, or even the wrong sort of data. These all have the risk of slowing things down and grinding progress to a halt.

What To Do – an Agency Approach

Although working with an agency comes with a price tag, there are plenty of benefits too. From access to senior leadership, being impartial and baggage free, and disconnected from internal politics. 

To help pull this all together, the team at Isobar utilises their Diagnostic session framework, bringing key people (including senior stakeholders) together and co-designing an approach forward through a guided conversation. 

01. The Intro

Setting up the context and creating an environment with psychological safety, so that red flags can be raised early. This can be especially important in larger organisations. 

02. Past

Undoubtedly, there will be a lot of knowledge and experience already within the teams. But possibly also battle scars. Have an open conversation, and recognise how we got here, and what’s been tried before. Are there any prior learnings or research that can be leveraged? 

03. Present

Understand the current state. What are the hurdles and complexities that will need to be addressed? Are there any unknown or unexpected factors that need to be unpacked?

04. Future

Do we agree on the problem and proposition? Can we land on a product vision to guide future decisions? 

What is the desired future reality? What would need to change to enable this view? What are the barriers, enablers and quirks which may be unique to the business.

The group may have differing views, but find the common ground to start building a shared mental model and alignment.

05. Wrap

It is important to always end with clear next steps. What is required to move forward, by whom and by when. 

Final tips:

  • The setup: Be thoughtful of who should attend. Do your research and gather any pertinent information.
  • Be flexible: allow the conversation to flow, and don’t be too rigid with the structure of the workshop.
  • Collaborative wall-work (brick or digital) to help formulate shared understanding.
  • Leverage momentum.

Further reading available at https://isobar.training/anonymous/

Thank you

Thank you again to Jim O’Malley (Head of Strategic Design) and Su Lim (Associate Design Director) for generously sharing some of their experiences, and to our sponsor, the Products and Services team at Isobar Australia for hosting us.

And to our fearless organisers, Jen Leibhart and Liz Blink, and our dedicated volunteers, Gwen D’souza, Nosh Darbari and Steve Bauer.

Become (more) brilliant with Impro! – March 2021 Wrap

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Impro Melbourne session at Product Anonymous
Photo courtesy of Koen Alexander

After a long challenging year, it was great to get back together for our first face to face meetup for 2021. After multiple delays, we finally were able to be joined by Katherine Weaver and Caylie Panuccio from Impro Melbourne for a fun and interactive session and it certainly did not disappoint. 

During the session, we learnt a little about improv, and were guided through a series of activities, where we learnt about:

  • Supporting each other and helping your partner (colleague) look good;
  • Collaborating with others and building on ideas;
  • Empathy for our stakeholders, who will have a lot of other things on their plate at times; and
  • Our own self-consciousness, and the artificial rules we create for ourselves.

Not only was the session extremely fun, we also saw how the exercises could be applied in work settings, to make us better product people. 

About Impro Melbourne

Impro Melbourne is Victoria’s premier improvisation company and the home of spontaneous theatre since 1996, and celebrating their 25th anniversary this year.  

Between performing shows and running a full schedule of workshops at their training facilities, they also take workshops and shows to schools and community venues, and lead corporate training sessions at home and overseas. 

If you’re interested in learning more or developing soft skills, beginner workshops are available: 

Check their website for more dates and details. Or for corporate events, public events, or workshops, contact Impro Melbourne at publicworkshops@impromelbourne.com.au

Thank you

Thank you again to our fantastic facilitators: Katherine Weaver, improviser, actor, teacher and Artistic Director of Impro Melbourne and Caylie Panuccio, Senior UX Researcher at SEEK, who has been practicing improvised theatre with Impro Melbourne on and off for the past couple of years and has found it a huge help as a designer / researcher / product person working in corporate environments

And also to our volunteers, Gwen D’souza, Nosh Darbari, Steve Bauer and our trusty organisers, Jen Leibhart and Liz Blink.

Katherine and Caylie doing their thing.
Photo courtesy of Koen Alexander

How to overcome Floccinaucinihilipilification – February Wrap

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One of the famous 7 Ps of product marketing is Price. As product professionals, we’re caught in the middle of a battle between trying to maximise price for our bottom line, while offering appealing value to the customer who wants to minimise their costs. Jon Manning showed that there are many myths in pricing, while giving great tips on options available when we are trying to price our products.

What does that big word even mean?

floccinaucinihilipilification
/ˌflɒksɪˌnɔːsɪˌnɪhɪlɪˌpɪlɪfɪˈkeɪʃ(ə)n/
noun
the action or habit of estimating something as worthless.

Top 10 Pricing Myths

Top 10 Pricing Myths

The myth of the perfect price

There is no such thing as a perfect price. Everyone has a different understanding of what they are willing to pay and how that payment should be structured. So pricing depends on each individual, and there will not be a single price or model that suits everyone.

The myth of full price

In certain hotels, they are obliged to outline their ‘rack rates’ – what the company specifies as the default rate for the room. You could often find it behind the door. However, nobody pays rack rates in hotels any more. Instead, we use discount sites as we want to get a great price – to get the “The thrill of the kill”. As a result discounting has to be a strategic part of pricing.

The myth of stealth price increases

Stealth price increases just don’t happen as much as we think. Thanks to social media, when people discover them they give immediate feedback to the vendor. One example is the drug Daraprim that went from US$13.50 to US$750 per tablet overnight and was immediately picked up by the media.

The myth of a world first pricing model

Some people believe that they have just invented a brand new pricing model and that nobody else has done it before. The reality is that all have been done in some way in the past. For example, Uber surge pricing model was just what the airlines did in the 1970s. During the great fire of London, the boatmen evacuating people across the Thames actually tripled their fares.  

The myth of ‘markets’, and ‘the invisible hand’

Prices are not set by some sort of invisible hand – they’re set by real people.

Prof. Mark Ritson of London Business School said: “Pricing is the worst managed of all marketing areas. How prices are decided is often a mixture of voodoo and bingo.”

The myth of traditional economic theory

Traditional economic theory talks about price elasticity as when prices go down, the quantity of demand goes up. However, we never see this perfect price elasticity.

The myth that pricing models are for life

Our pricing models need to evolve. For example, many of our purchasing these days is by subscription model. Or how engines on planes are no longer charged by unit but are charged for power provided.

(Though with 90% of the world’s fleet on the ground this model is probably making it a bit tough for the engine manufacturers).

The myth of the spreadsheet 

Every pricing model is in a spreadsheet without fail. However, this is just a simulation and not what happens in the real world.

The myth of procurement

Working with a Procurement team is like a frenemy; both friend and enemy to agreeing on a deal.  You need to understand how they work – for example spend time with Procurement to learn how they beat up vendors on price. Then build this approach into your pricing model

The myth of cost-plus pricing

Customers don’t care about how much it costs you to produce – they just care about the value for them. 

Why is pricing so important?

Pricing has a huge impact on operating profit. A 1% improvement in price can lead to an 11.1% increase in operating profit – a much better ratio than improving fixed costs, volume or variable costs.

Apple has many fans despite their price. Their strategy has sensitized their customers to the value they bring, over the price they charge. Which means they can take the discussion away from price

However, not everyone is really thinking through their pricing. Startups are filling in their business model canvas, and thinking about migrating their users from eyeballs to customers, but they are not thinking through their actual revenue.

The Value-Based Pricing Canvas

The Value-Base Pricing Canvas

This canvas gives you 15 pricing questions designed to get you thinking about the value your provide. For example is it better to have no-hidden-surprises pricing, or dynamic pay-as-you-go pricing? Organisation and customer behaviors are driven by pricing so it is best to have this clear.

A blank canvas is available on the pricing prophets website

Value based pricing methodologies

Van Westendorp’s Price Sensitivity Meter

This is a Value-based approach because you have to talk to customer, rather than an ivory tower exercise. You ask customers four questions in surveys:

  • At what price does the product look cheap
  • At what price does the product look expensive
  • At what price does the product look too expensive
  • At what price does the product look too cheap

You can then plot these on chart and a box forms that helps determine an optimal price band.

Customer Value Analysis

This gets customers to value each attributes of your product, assign weights, and get an overall measure of customer value.

  • Identify value attributes from a customer perspective
  • Get customers to weight the product value attributes
  • Get customers to assess the product value attributes
  • Benchmark products against each other
  • Plot findings on a value map

This overall measure of value can also be used to generate a price

Software as a Service (SaaS) subscriptions

SaaS subscription model

This is now the classic startup pricing approach.

  1. Define the architecture of your products
  2. Define the operational stuff the product actually does
  3. Define the non-operative features, because it adds further differentiation
  4. Consider the optional extras, for example things that are included in one product, but not in an another
  5. Consider your segmentation, what each segment is willing to pay and whether it caters for all your customers and personas. 

How do you choose your pricing model?

Choosing a pricing model is a combination of many factors; including analysis, experience, and sometimes you just know.

Many products are just naturally heading towards the SaaS model – it feels like a silver bullet for most online products.

However there are some increases in the number of companies using usage based pricing only; Snowflake, Stripe and Twilio. These companies are growing faster than other SaaS companies.

Our Speaker

Jon Manning has vast experience in value-based pricing, gained in technology, and a range of other industries. He is a two-time past presenter at Product Camp.

His career has been a journey through three other pricing methodologies: the mysterious pricing of the oil industry, cost-plus pricing in the catering industry, and dynamic pricing in aviation and other services industries.

Check out Jon’s new book, Floccinaucinihilipilification, available on kindle & paperback at Amazon 

Our Sponsor

Thank you to A Cloud Guru for being an amazing sponsor! ACG is teaching the world to cloud – and currently hiring! https://acloudguru.com/careers

Coming next

In March we have a few sessions in the works! We’ll be co-hosting the LTP Pitchfest on March 18th and then we’re hoping to be able to meet face to face on March 30th for a session on improv. Plus, there may be dumplings!

Resources

Grab the slides

Birthday Talks – November 2020 Wrap

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For our last event for 2020, Product Anonymous celebrated our 9th birthday. Again. We’ve actually lost track of how old we are. And this may or may not be the third time that we’ve celebrated our 9th birthday. But I digress.

We’ve had another action packed year, with so many great talks from sharing insights and becoming a super-team with marketing, to leading through influence and creating buy-in to help prioritisation with an ethical lens, getting out of product hell and transitioning to a product-led company, which can have different nuances in big corps and startups.

As well as organising all of these fantastic talks, Product Anonymous also helps nurture our own people to turn on their camera and microphones, and face the crowd. And for our final event, we had five of our community do just that, taking the virtual stage to give short 5mins talks. 

Talk to the Pencil – Marc Vandamme

As a product manager, you will need to work with a range of people, and bring them all into alignment. But how do you do that? With a comprehensive and detailed requirements document? Marc Vandamme says no! Pick up your pencil, and sketch it out. Whether it’s the interface, wireframes or flow charts, drawings will help to align the thinking faster.

I <3 Amplitude – Fernando Parra

Much of product management involves product discovery: understanding our customers’ problems with qualitative research. However, on the other side of the equation is all the data, and the world of quantitative product intelligence.

Self-confessed data geek, Fernando Parra, gave us a crash course for one such product intelligence tool – Amplitude. 

After registering, you can explore the different aspects of this analytics SaaS product,  with full access to their sandbox, which comes pre-configured with two sample projects (an eCommerce and B2B examples). From there, you can build your own charts and experiment with different data visualisations from the sample data.

Diversity – Aseel Hamarneh

Why should you (or your company) take diversity seriously? To not discriminate, or for ethical reasons? Or to avoid penalties and lawsuits? Maybe the most compelling reason is that diversity actually makes good business sense too.

Companies with ethnic and racial diversity in management were 35% more likely to have financial returns above their industry mean.

McKinsey 2015

The more diverse your team is, the more perspectives that are brought in when you are designing and building solutions. But where do you start?

  • Start with yourself: recognise your own biases, we all have them.
  • Then your team: focus on diversity in your hiring. From your job ads to selection, there are plenty of tools to use.
  • Then your product: Think about your end users. Accessible solutions usually work better for all users.

Thanksgiving – Erica Wass

So much of what a Product Manager does is around influencing without authority, and giving thanks is one of the many tools to utilise, whether that be for bringing the team together, motivating, celebrating or influencing the culture and driving behaviour changes. 

Different people prefer to be recognised in different ways. So talk to your team members, and see what they prefer, and act accordingly.

Regardless if in big, public ways, or more subtle gestures, remember, it’s about the recipient, not about you.

5 Tips for More Impactful Presentations – Pratishtha Nahata

  1. Minimise Decision Fatigue: Plan your talk. Give yourself the space to think, and focus on the content and structure. Once you know what you want to say, then you can start to colour in the details, and  apply some design.
  1. Plan how info will be distributed across slides: Order and sequence the info for your, because order matters:
  • For results, outcomes or recommendations, start with the ending. 
  • For training, process or to build anticipation, start at the beginning.
  • If your audience is not familiar with the topic, you might want to start with an example before jumping into concepts. 
  1. Make it visual: Group or show the relationships between different information, to help reduce the cognitive load for your audience, so they’ll be more likely to understand and retain the information. 
  1. Only keep what’s absolutely necessary: Don’t overcrowd your slides. What does your audience already know, and is info being repeated? What can be verbal? Use visual cues, to help focus attention. Remember, you’re the star of the presentation, not your slides. 
  1. Practice. At least 2-8 times, with and without slide.
  1. Bonus tip – watch stand-up: watch and learn how comics keep their audience engaged. 

Thank you

It’s been such a busy year, with so many people to thank, starting with our speakers, Marc Vandamme, Fernando Parra, Aseel Hamarneh, Erica Wass and Pratishtha Nahata, and everybody else who has shared with us this year.

Our generous host, A Cloud Guru, who have hosted so many of our events this year – they’re on a mission to teach the world to cloud.

Our volunteers, Gwen D’souza, Nosh Darbari, Steve Bauer and the rest of the crew, who help behind the scenes, and ensure our events run smoothly.

And last but not least, our trusty organiser, Jen Leibhart and Liz Blink, who bring our whole community together. Have a safe festive season, and see you in the new year.

Creating Buy-In with Simon Dowling – October 2020 Wrap

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Blending his experience as a corporate lawyer and a seasoned improv performer, Simon Dowling has become a leading collaboration trainer, helping teams to become inspired and highly-engaged. For our October session, Simon took us through an interactive discussion on creating buy-in.

https://www.instagram.com/p/CGf9sdMnVwT/

Willing and Enthusiastic

Can you imagine getting the people in your organisation to align and commit to initiatives, not because they’re told to or have to. But because they choose to, and want to, with willing and enthusiastic energy. Moving from a place of authority to autonomy. 

It’s no surprise what can happen in this type of environment:

  • People feel valued and happier;
  • Increased trust, creating buy-in and a willingness to be helpful and co-operate;
  • Collective positive energy leading to productivity and motivation;
  • Unlocked creativity, with better ideas and better solutions;
  • A team culture of “us” not “I”, so many hands make light work;
  • Momentum to move forward with passion;
  • Ownership;

In short, magic happens!

"The person who figures out how to harness the collective genius of his r her organisation is going to blow the competition away." Walter Wriston - CEO Citigroup 1967-1984

But so what?

In the world of corporate, we often find ourselves pushed towards finding the pragmatic solution. Where is the information and data driving us? We spend our time building a case. Looking through data. Preparing decks. While that is also important, there is a more crucial question we need to answer.

So what? Why should I even care?

Emotion and mood are generally under-indexed in the workplace. We need to be able to put down the spreadsheet, and articulate why we need to pursue an idea. Why does it matter to our organisation? Why should this be important to us on a personal level? 

Whether we use a model, an analogy or a physical representation, painting a vivid picture to capture our hearts can be a powerful tool to rally support.

Tram full of disposable coffee cups - War on Waste.

Bring on the No

Once our team understands why our idea is important, another thing to tackle is the WIIFM – What’s in it for me? There’s a trap in pitching too much of the upside, without addressing the underlying concerns. 

We need to create space, let go and let others in. 

Stop pitching, and start co-creating.

Nobody knows all the answers. Here is where we can really harness the power of the wider group.

Take Action

The last key step is putting things into motion. 

  • Make it easy to start: What is the one thing we need to do within the first 48 hrs. 
  • Build a habit: Make it easy to remember. Add it to our diary. Do we need to create a warning system to make sure we are still on track? Get others to come up with them.
  • Sustain: How do we avoid shiny object syndrome? Perhaps it’s to reassess if we should continue every 90 days? 

Resources and Further Reading

You can find Simon on LinkedIn, or information and resources from Simon’s website.

Some books mentioned were:

Thank you

Thank you so much to Simon for sharing, our great volunteers Gwen and Nosh, and to our generous host, A Cloud Guru. They’re on a mission to teach the world to cloud.