Building a Research Flywheel: A Helpful Guide for Product Managers & Their Teams

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You’ve heard of Amazon and Vanguard, two of the most successful customer-focused businesses in the world, but have you heard Jim Collins’ Flywheel Effect? You might be surprised to learn that neither of these businesses would be where they are today without it. Every step of the product journey is informed by research: what works, what doesn’t, what customers want, what they need. But no one tool or method can create a thriving research practice for product managers. Instead, PMs and business leaders need to turn the crank of the wheel to get processes in motion and build momentum. By developing product- and customer-focused Flywheels, you can uncover new insights, make better products, and invest in more meaningful research. This, ultimately, will lead to more value, more growth, and a greater understanding of what your customer’s need. Join Jessica Hall, Product Strategy & Design Leader and Co-Author of The Product Mindset, for this illuminating discussion on the Flywheel Effect, and discover how it can help you supercharge your product process. Attendees for this session will: • Learn how Flywheels create momentum and value • Explore the process for defining your team’s Flywheel • Uncover how to supercharge and expand your Flywheel

Marketing

Building a Research
Flywheel
A Helpful Guide for Product Managers & Their
Teams
Jessica Hall
March 2002

Jessica Hall
@jesshallway
February 2020
Building a Research Flywheel
A Helpful Guide for Product
Managers & Their Teams

What are the challenging things about
customer research?
Put them in the chat

Agenda
● Explore the challenges
● Introduce the flywheel concept
● See how companies have used the flywheel
● See how to create a flywheel

Designers are frustrated
and want to more
support/funding for
research
Including research in the
product development
process is the number one
challenge
-User Zoom State of UX
2019

Executives believe
understanding customers can
lead to successful products
28% of executives strongly
agree that they understand
their customers’ needs and
use this understanding to
build their digital solutions
-Forrester

Designers feel they have the
right tools and practices to
meet this need

Some executives feel
research is costly and
time consuming

Source: Turning the Flywheel: A Monograph to Accompany Good to Great

Jim Collin’s Flywheel concepts
No single defining action, no grand program
Each piece sets you up for the next
Specific to you

How could it possibly apply to product teams?

Step One
What have you tried that went really well?
Can it be repeated?

Step 2
What have you tried that didn’t go so well?

What does value look like in your organization?
Remember it’s both emotional and social
Business Metrics
Recurring Revenue
Revenue Growth
Customer Lifetime Value
(CLTV or LTV)
Customer Acquisition Cost
(CAC)
Activity Metrics
Active users (daily, weekly,
monthly)
Session duration
Traffic (paid/organic)
Bounce rate
Product Metrics
Retention rate
Churn rate
Product efficiency
Adoption
Net Promoter Score (NPS)
Customer Satisfaction Score
(CSAT)
Productivity Metrics
Time to market

Example
Information services company who loves NPS

Example
Sales-led company trying to be more customer/product led

Things to ponder
● Do the steps make logical sense?
● Can you make it all the way around?
● Can it generate momentum?
● Is it something you can do consistently with the resources
you have now?

Takeaways
● No one thing will create a successful
research program
● Create a flywheel that works for the team
and organization you are today
● Focus on value and disciplined delivery of
value
Let me know how it goes at @jesshallway,
LinkedIn or at jess@hallwaystudio.com

Give it a try and let me know how it goes

Building a Research Flywheel: A Helpful Guide for Product Managers & Their Teams

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1. Building a Research Flywheel A Helpful Guide for Product Managers & Their Teams Jessica Hall March 2002

5. Jessica Hall @jesshallway February 2020 Building a Research Flywheel A Helpful Guide for Product Managers & Their Teams

6. What are the challenging things about customer research? Put them in the chat

7. Agenda ● Explore the challenges ● Introduce the flywheel concept ● See how companies have used the flywheel ● See how to create a flywheel

8. Designers are frustrated and want to more support/funding for research Including research in the product development process is the number one challenge -User Zoom State of UX 2019

9. Executives believe understanding customers can lead to successful products 28% of executives strongly agree that they understand their customers’ needs and use this understanding to build their digital solutions -Forrester

10. Designers feel they have the right tools and practices to meet this need

11. Some executives feel research is costly and time consuming

12. Source: User Zoom

13. What’s going on here?

14. Source: Smashing Magazine

15. Source: South Park

16. Is there another way?

17. Source: Working Backwards

18. Source: Turning the Flywheel: A Monograph to Accompany Good to Great

19. Source: Turning the Flywheel: A Monograph to Accompany Good to Great

20. Jim Collin’s Flywheel concepts No single defining action, no grand program Each piece sets you up for the next Specific to you

21. Brad Orego had a similar thought

22. How could it possibly apply to product teams?

23. Step One What have you tried that went really well? Can it be repeated?

24. Step 2 What have you tried that didn’t go so well?

25. Step 3 Compare

26. What does value look like in your organization? Remember it’s both emotional and social Business Metrics Recurring Revenue Revenue Growth Customer Lifetime Value (CLTV or LTV) Customer Acquisition Cost (CAC) Activity Metrics Active users (daily, weekly, monthly) Session duration Traffic (paid/organic) Bounce rate Product Metrics Retention rate Churn rate Product efficiency Adoption Net Promoter Score (NPS) Customer Satisfaction Score (CSAT) Productivity Metrics Time to market

27. Step 4 Sketch, ponder, sketch again

28. Example Information services company who loves NPS

29. Example Founder who wants to ship fast

30. Example Sales-led company trying to be more customer/product led

31. Things to ponder ● Do the steps make logical sense? ● Can you make it all the way around? ● Can it generate momentum? ● Is it something you can do consistently with the resources you have now?

32. Step 4 Test and iterate

33. Takeaways ● No one thing will create a successful research program ● Create a flywheel that works for the team and organization you are today ● Focus on value and disciplined delivery of value Let me know how it goes at @jesshallway, LinkedIn or at jess@hallwaystudio.com

34. Give it a try and let me know how it goes

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