At Melewi's first ever workshop event in Manila, this talk and workshop focuses on the crucial need for a designer to know about business and revenue models when designing a product. Here we dive a little into understanding the business, revenue, users and their purchasing mindsets, as well as how that influences your product goals. We also cover ways to design for these purchasing mindsets and product goals, examining quick case studies on Amazon and Slack. --- MELEWI - UX Design & Validating Your Startup Mar 19 2016 at 47 East, Manila by Melissa Ng (@thedesignnomad) Founder of Melewi www.melewi.net

1. Knowing how your business works
makes your design work
@thedesignnomad
melewi.net
B I Z M O D E L S + P R O D U C T D E S I G N

2. Mabuhay
Everyone!

3. “How you doin’?”
P R E A M B L E

4. Keep it casual
This isn’t a classroom (P.S. I hated school)
Textbook learning
Try things out for yourselves
What’s relevant now
P R E A M B L E

5. Make the right decisions early on
Groups of 4 - 5
I <3 startups
Move quick + With limited resources
P R E A M B L E

6. Who’s in the room?
I N T R O D U C T I O N S

7. Who am I?
M E L I S S A N G

8. “She’s all right,
I guess.”
M O M
“Worst dancing
skills you’ll ever
have the misfortune
of seeing.”
H O U S E M AT E

9. @thedesignnomad
Product strategist
UX & UI designer
Founder of Melewi

10. GoogleCampus (London)
The Hub (Melbourne)
StartupWeekend (Australia)
WORKSaigon (Vietnam)
General Assembly (Singapore)
StartupWeekend (Singapore)
GrowthhackingAsia (Singapore)
GeekGirl (Singapore)
ProductCamp (Singapore)
Devfest.asia (Singapore)

11. + 47East (Manila), yay!

12. The Travelling Design Studio
@melewi

13. You DON’T need
massive resources
Lean + Agile Hybrid
Clients in 5 continents
(28 cities)
McDonalds, Samsung,
Namecheap, Citibank
We design awesome
products for users
and businesses
around the world

14. How about you?
Designer?
I N T R O D U C T I O N S

15. How about you?
Developer?Designer?
I N T R O D U C T I O N S

16. How about you?
Product
Management?
Developer?Designer?
I N T R O D U C T I O N S

17. How about you?
Product
Management?
Startups?Developer?Designer?
I N T R O D U C T I O N S

18. Let’s get to it!
I T B E G I N S

20. What do these have in common?

21. Awesome product Very profitable

22. Awesome product Very profitable

23. I’ve such a
cool idea for
a business!
How will you
make revenue?
E N T R E P R E N E U R

24. Just get mass
traction and
I’ll be rich!
…
E N T R E P R E N E U R

25. Just get mass
traction and
I’ll be rich!
…
E N T R E P R E N E U R

26. Adding this
feature will be
super cool!
How does
this help the
business?
D E S I G N E R

27. I don’t know,
I’m just the
designer
…
D E S I G N E R

28. I don’t know,
I’m just the
designer
…
OMG.
NO.
D E S I G N E R

29. But it’s ten times more irresponsible
not to think about the product.
“
It’s irresponsible not to think
about business models.
PA U L G R A H A M

30. P R O D U C T
So let’s look at them both!
B U S I N E S S

31. P R O D U C T
B U S I N E S S

32. B U S I N E S S

33. Product or Offering
B U S I N E S S
UX UI Dev PM
Operations Logistics, etc.

34. Product or Offering
UX UI Dev PM
Operations Logistics, etc.
Users or
Customers
Segment(s)
Size
Behaviours
B U S I N E S S

35. Product or Offering
UX UI Dev PM
Operations Logistics, etc.
Users or
Customers
Segment(s)
Size
Behaviours
Revenue
& Profit
Cashflow
Expenses
Scaling
B U S I N E S S

36. This is how a business funnel works

37. Pirate Metrics
by Dave McClure

38. A
A
R
R
R
by Dave McClure
Acquire
Activate
Retain
Revenue
Refer
Pirate Metrics

39. A
A
R
R
R
by Dave McClure
Acquire
Activate
Retain
Revenue
Refer
Pirate Metrics
If this doesn’t
successfully meet
the right goals

40. A
A
R
R
R
by Dave McClure
Acquire
Activate
Retain
Revenue
Refer
Pirate Metrics
Revenue
If this doesn’t
successfully meet
the right goals
You won’t
have this

41. A
A
R
R
R
by Dave McClure
Acquire
Activate
Retain
Revenue
Refer
Pirate Metrics
Revenue
If this doesn’t
successfully meet
the right goals
You won’t
have this
This don’t
matter!

42. A
A
R
R
R
by Dave McClure
Acquire
Activate
Retain
Revenue
Refer
Pirate Metrics
Revenue
If this doesn’t
successfully meet
the right goals
You won’t
have this
This don’t
matter!
Design is nothing without a viable business

43. A
A
R
R
R
by Dave McClure
Acquire
Activate
Retain
Revenue
Refer
Pirate Metrics
Revenue
If this doesn’t
successfully meet
the right goals
You won’t
have this
This don’t
matter!
That’s just art, sweetheart

44. P R O D U C T
B U S I N E S S
So let’s look at them both!

45. B U S I N E S S
P R O D U C T

46. A K A U S E R E X P E R I E N C E
B U S I N E S S
P R O D U C T

47. U S E R E X P E R I E N C E

48. U S E R E X P E R I E N C E
The experience a
user has interacting
with your brand at
one touchpoint
one

49. U S E R E X P E R I E N C E
The experience a
user has interacting
with your brand at
one touchpoint
one
U S E R I N T E R FA C E
P R O G R A M M I N G
O P E R AT I O N S

50. U S E R E X P E R I E N C E
The experience a
user has interacting
with your brand at
one touchpoint
C U S T O M E R E X P E R I E N C E
one

51. U S E R E X P E R I E N C E
The experience a
user has interacting
with your brand at
one touchpoint
one
C U S T O M E R E X P E R I E N C E

52. C U S T O M E R E X P E R I E N C E

53. U S E R E X P E R I E N C E
The experience a
user has interacting
with your brand at
one touchpoint
one
UX ≠ UI
TWO

54. U S E R E X P E R I E N C E
UX ≠ UI
TWO
U S E R I N T E R FA C E

55. U S E R E X P E R I E N C E
UX ≠ UI
TWO
U S E R I N T E R FA C E
User Research
User Testing
Userflows
User Scenarios
Site Mapping
User Satisfaction
Sketching
Prototyping

56. U S E R E X P E R I E N C E
UX ≠ UI
TWO
U S E R I N T E R FA C E
User Research
User Testing
Userflows
User Scenarios
Site Mapping
User Satisfaction
Sketching
Prototyping
Output Devices
Action Buttons
User Controls
Tools
Input Devices
Content
Visual Design
The pretty stuff

57. U S E R E X P E R I E N C E
The experience a
user has interacting
with your brand at
one touchpoint
A series of methods
& tools you use to
test and validate
assumptions
THREEone
UX ≠ UI
TWO

58. What I’m hoping for
T H I S W O R K S H O P ’ S O B J E C T I V E S

59. …is to get you started
T H I S W O R K S H O P ’ S O B J E C T I V E S

60. Strengthen the link
Business Product
+
Business goals
Product goals How to design
features to
meet goals
+
T H I S W O R K S H O P ’ S O B J E C T I V E S

61. Learn to figure out what matters
when designing your product
=
T H I S W O R K S H O P ’ S O B J E C T I V E S

63. Biz models, goals &
designing for them
4OUR

64. 0403020101
Advertising /
Affiliate
2-sided
Marketplace
Subscription
(SAAS)
eCommerce

65. 65
part 1
Which business model is this?

66. 66
What are you?

67. 67
What does the business need the user to do?
What does the user want from the business?
How do I marry the two needs?

68. E X E R C I S E !
20
Let’s try:
(Partial) Lean Canvas

69. (Partial) Lean Canvas
E X E R C I S E !
20
Pick a post-it out
the bag, that will
be your product
for the workshop!
Grab some
butcher paper +
post-its to use
01

70. E X E R C I S E !
20
01
Lean Canvas:
Identify what the
Product and USP
Also identify the
Business Model
and describe it
02
Pick a post-it out
the bag, that will
be your product
for the workshop!
Grab some
butcher paper +
post-its to use
(Partial) Lean Canvas

71. Product
How would you
describe the overall
function and features
of your product?
USP
Unique selling
proposition - what
about your product is
unique and awesome?
Biz Model
Which of the 4 is
it, and how would
you explain it to
someone?
Advertising /
Affiliate
2-sided
Marketplace
Subscription
(SAAS)
eCommerce

72. E X E R C I S E !
20
01 02
Present it to
everyone!
03
Lean Canvas:
Identify what the
Product and USP
Also identify the
Business Model
and describe it
Pick a post-it out
the bag, that will
be your product
for the workshop!
Grab some
butcher paper +
post-its to use
(Partial) Lean Canvas

73. E X E R C I S E !
20
Product DescribeUSP Biz Model
Present + Feedback
(Partial) Lean Canvas

74. E X E R C I S E !
USPProduct DescribeBiz Model
Present + Feedback
20
(Partial) Lean Canvas

75. E X E R C I S E !
Product DescribeBiz Model
Present + Feedback
20
USP
(Partial) Lean Canvas

76. E X E R C I S E !
Product Biz Model Describe
Present + Feedback
20
USP
(Partial) Lean Canvas

77. Know your goals & objectives as a whole
Know why you’re building what you’re building
Know what should be special about you
TL;DR

78. 78
part 2
What’s critical to your biz?

79. What would kill your biz if lacking?

80. 0101
Advertising /
Affiliate
=
Mass reach
Engaged users
High view count
Well-targeted users
Ads that get clicked on

81. 2-sided
Marketplace
=
Consumers + Businesses
Relationship between them
Transactions
Trust
Accountability02

82. 03
Subscription
(SAAS)
=
Trials to engage
Regular engagement
Pricing plans
Reduce churn

83. 04eCommerce =
Product info
Shipping info
Sizing info
Security
Easy checkout
Payment options

84. 84
part 3
Who are our users?

85. 85
Know your users inside & out

86. What do they really want?
What do they value?
What frustrates them?
How do they think?

87. Pretend you’re an actor in a film
Who’s your character?
Mimic them
Research them
Talk to them
TA C T I C : A N D … A C T I O N !
Be a creep without getting arrested

88. User surveys
User interviews
Google
TA C T I C : A N D … A C T I O N !

89. E X E R C I S E !
15
Let’s try:
User Personas

90. First, know who you’re targeting
Your user is not a statistic or a number
They are people
What do they like and value?
How do they think and behave?
What frustrates and motivates them?
You can’t design for everyone with 1 generic approach
Decide, design & build accordingly

91. It should not represent one sole user
Representative character of your target audience
It should be built off research
Talk to these people
Find out more about them

92. User Personas
E X E R C I S E !
As a group:
Get a piece of
butcher paper +
markers
01
15

93. User Personas
E X E R C I S E !
As a group:
Get a piece of
butcher paper +
markers
01
Sketch out a
User Persona
grid / structure
02
15

94. User Personas
E X E R C I S E !
As a group:
Get a piece of
butcher paper +
markers
01
Sketch out a
User Persona
grid / structure
on the butcher
paper
Discuss and fill in
with post-its
03
15
02

95. Leia Organa
“Darth Vader destroyed Alderaan (my home planet),
and is taking over The Galaxy. I will not sit still for this!
I need to defeat him. But how?!
If only there was a way to destroy the Death Star and
defeat the Empire once and for all…”
N A M E
Q U O T E
A G E T E C H - S A V V Y F R U S T R AT I O N ( S ) G O A L ( S )
/ 5
21 5
The Empire destroyed
her home planet
She doesn’t know how to
destroy the Death Star
# K E Y W O R D
Bold
Leader
Courageous
Princess
* because she’s
from the future To defeat the Empire
To restore democracy
within the Galactic
senate

96. E X E R C I S E !
Age &
Gender
#Keywords
Biggest
takeaway(s)
Present + Feedback
Name
User Personas
15

97. E X E R C I S E !
#Keywords
Biggest
takeaway(s)
Present + Feedback
Age &
Gender
Name
User Personas
15

98. E X E R C I S E !
Name
Age &
Gender
Present + Feedback
Biggest
takeaway(s)
#Keywords
User Personas
15

99. E X E R C I S E !
Name
Age &
Gender
#Keywords
Biggest
takeaway(s)
Present + Feedback
User Personas
15

100. Users aren’t just a number, they’re people
In order to build for them, you have to understand them
In order to understand them, you’ve to talk to them
TL;DR

101. 101
part 4
Will your users pay?

102. 102
What affects their purchasing decision?

103. C O N S U M E R S
You

104. You B U S I N E S S E S

105. C O N S U M E R S B U S I N E S S E S
$
$
You

106. O N E - O F F
P U R C H A S E
R E C U R R I N G
P U R C H A S E

107. L A R G E
I M P O R TA N C E
S M A L L
I M P O R TA N C E

108. S M A L L
P U R C H A S E
L A R G E
P U R C H A S E

109. S H O R T
L E N G T H O F I M PA C T
M I D
L E N G T H O F I M PA C T
L O N G
L E N G T H O F I M PA C T

110. S E L FO T H E R S

111. E X E R C I S E !
15
Let’s try:
Purchasing Mindsets + Rev Model

112. Purchasing Mindsets + Rev Model
E X E R C I S E !
Empathise with
your user persona
- become them!
01
15

113. E X E R C I S E !
01
Brainstorm and
discuss what
purchasing behaviours
and mindsets they
would have
02
15
Empathise with
your user persona
- become them!
Purchasing Mindsets + Rev Model

114. E X E R C I S E !
01
Plan out your
revenue model:
Where does the
money come from;
how does it flow;
what comes to you?
03
15
02
Brainstorm and
discuss what
purchasing behaviours
and mindsets they
would have
Empathise with
your user persona
- become them!
Purchasing Mindsets + Rev Model

115. E X E R C I S E !
Purchasing
behaviours
Rev model What’s yours?
Present + Feedback
User persona
15
Purchasing Mindsets + Rev Model

116. E X E R C I S E !
Purchasing
behaviours
Rev model What’s yours?
Present + Feedback
User persona
15
Purchasing Mindsets + Rev Model

117. E X E R C I S E !
Purchasing
behaviours
What’s yours?
Present + Feedback
User persona
15
Purchasing Mindsets + Rev Model
Rev model

118. E X E R C I S E !
Purchasing
behaviours
Rev model
Present + Feedback
User persona
15
Purchasing Mindsets + Rev Model
What’s yours?

119. People have many reasons to purchase or not
If you understand what they might be, you can preempt them
Sometimes the purchase price isn’t your revenue
TL;DR

120. 120
part 5
Let’s make this happen!

121. Designing to meet goals
Let’s squeeze in some advice!

122. 01
Trust me
M A K E U S E R S F E E L S A F E

123. Not convincing to say you’re trustworthy
Proof comes externally
Social proof: Actions of the group influence actions of the individual
Make it as relatable as possible
Credibility can be borrowed
Perception of security level
Can I talk to you?

125. T O O L S
Testimonials
Face piles
Real names
Press / Biz logos
Social media widgets
Support / live chat
Credit card merchants
Security seals
F U R T H E R R E A D I N G
1. blog.kissmetrics.com/social-
proof-factors-2
2. slideshare.net/QuiffBoy/pet-
designing-for-persuasion-
emotion-and-trust

126. 02
Checkout now
R E D U C E C A R T A B A N D O N M E N T + C L O S E T H AT S A L E

127. Guest checkout - 30% abandon cart when forced to register
Stop with the insane forms!!
Identify areas for possible duplicates (e.g. shipping & billing address)
Autofill, but leave editable
Trusted payment gateways / 1-click payment
Step 1 of 4: Progress indicator
Be helpful with extra info (but don’t surface them until needed)

128. Abandoned just before checkout
Replacing "register" button with "continue"
What made users come back?
C A S E S T U D Y: $ 3 0 0 M I L L I O N B U T T O N
1st month: Sales went up 45% ($1 million)
1st year: $300 million
S U P P O S E D LY

129. T O O L S
Usability testing
A/B split testing
crazyegg.com
mixpanel.com
KISSmetrics.com
usertesting.com
F U R T H E R R E A D I N G
1. rjmetrics.com/resources/webinars/a-marketers-
guide-to-ecommerce-growth-hacking
2. grow.kissmetrics.com/optimize-growth-with-km
3. uie.com/brainsparks/2011/10/17/the-back-story-
for-the-300-million-button/
4. smashingmagazine.com/2012/09/04/the-state-
of-e-commerce-checkout-design-2012/

130. 03
Keep them coming back
G E T U S E R S E N G A G E D & I N V E S T E D

131. Increase pleasure, decrease pain
Preempt confusion and questions
Don’t talk at them (the lazy way)
Guide by getting users to take action
Get them invested!
Have them give you a reason to be back in touch
FA C E B O O K , L I N K E D I N , I N S TA G R A M , A M A Z O N
S L A C K
B U F F E R , T W I T T E R

132. Step-by-step signup
Friendly & guided
Preempt possible issues
C A S E S T U D Y: S L A C K
Clear hierarchy + CTA

133. Step-by-step signup
Friendly & guided
Preempt possible issues
C A S E S T U D Y: S L A C K
Clear hierarchy + CTA

134. Step-by-step signup
Friendly & guided
Preempt possible issues
C A S E S T U D Y: S L A C K
Clear hierarchy + CTA

135. Step-by-step signup
Friendly & guided
Preempt possible issues
C A S E S T U D Y: S L A C K
Clear hierarchy + CTA
A reason to get them to come back!

136. Step-by-step signup
Friendly & guided
Preempt possible issues
C A S E S T U D Y: S L A C K
Clear hierarchy + CTA
A reason to get them to come back!

137. Animating (pulsing) tooltips
C A S E S T U D Y: S L A C K

138. Animating (pulsing) tooltips
Status indicator
- no “how long is this gonna take?!”
C A S E S T U D Y: S L A C K

139. Animating (pulsing) tooltips
Status indicator
- no “how long is this gonna take?!”
Ability to skip
C A S E S T U D Y: S L A C K

140. Animating (pulsing) tooltips
Status indicator
- no “how long is this gonna take?!”
Ability to skip
C A S E S T U D Y: S L A C K
What’s this?! IT’S A TALKING ROBOT

141. Animating (pulsing) tooltips
Status indicator
- no “how long is this gonna take?!”
Ability to skip
C A S E S T U D Y: S L A C K
What’s this?! IT’S A TALKING ROBOT
This is so exciting;
does this feel like a form?

142. T O O L S
Usability testing
User experience mapping
F U R T H E R R E A D I N G
1. useronboard.com

143. E X E R C I S E !
15
Let’s try:
Sketch it out!

144. Let’s sketch!
E X E R C I S E !
Go through
everything you’ve
come up with
01
20

145. E X E R C I S E !
01
Brainstorm ideas to
alleviate any concerns
and convince the
customer to take the
right action
02
Let’s sketch!
Go through
everything you’ve
come up with
20

146. E X E R C I S E !
01
Sketch out the
feature(s)!
What that would
look like, what that
would say, etc.
0302
Let’s sketch!
Brainstorm ideas to
alleviate any concerns
and convince the
customer to take the
right action
Go through
everything you’ve
come up with
20

147. E X E R C I S E !
What’s the
goal?
Walk us
through it
Why will it
succeed?
Present + Feedback
What’s the
product?
Let’s sketch!
20

148. E X E R C I S E !
Walk us
through it
Why will it
succeed?
Present + Feedback
What’s the
product?
Let’s sketch!
What’s the
goal?
20

149. E X E R C I S E !
What’s the
goal?
Why will it
succeed?
Present + Feedback
What’s the
product?
20
Let’s sketch!
Walk us
through it

150. E X E R C I S E !
What’s the
goal?
Walk us
through it
Present + Feedback
What’s the
product?
Let’s sketch!
Why will it
succeed?
20

151. Remember
Business goals influence product goals
Getting users to hit ‘buy now’ is a science
Understanding how the business works
makes you a far superior designer

152. Melissa Ng
@thedesignnomad
melissa@melewi.net
www.melewi.net
Thank you!