YC
How to Build Products Users Love with Kevin Hale (How to Start a Startup 2014: Lecture 7)
@ Y Combinator
03/25/17
Takeaways
KH
Kevin Hale
03/25/17
@ Y Combinator
When I talk about making products users love, I mean creating things that have a passionate user base that unconditionally wants them to succeed, both the products and the companies behind them.
KH
Kevin Hale
03/25/17
@ Y Combinator
Growth is usually simple; it's the interaction between conversion rate and churn, and the gap between these two indicates how fast you're going to grow.
KH
Kevin Hale
03/25/17
@ Y Combinator
At a startup, the interaction with users is intimate, and there's a different way of looking at how we build our products based on that relationship.
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Kevin Hale
03/25/17
@ Y Combinator
The best way to reach a billion dollars is to focus on the values that help you acquire that first user; if you get that right, everything else will take care of itself.
KH
Kevin Hale
03/25/17
@ Y Combinator
At Wufoo, we aimed to create a product that people wanted to love and have a relationship with, rather than just a tool that reminded them of working in a cubicle.
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Kevin Hale
03/25/17
@ Y Combinator
First impressions are crucial in any relationship, including with products, because they are the stories we tell over and over again.
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Kevin Hale
03/25/17
@ Y Combinator
In software, first impressions are obvious and companies often focus on them, but the best product creators discover many other memorable first moments.
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Kevin Hale
03/25/17
@ Y Combinator
When designing a product, consider how users feel when they interact with it; the emotional response is important.
KH
Kevin Hale
03/25/17
@ Y Combinator
MailChimp redesigned their help guides to look like magazine covers, which significantly increased readership and engagement with their features.
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Kevin Hale
03/25/17
@ Y Combinator
Stripe enhances user experience by automatically inserting API credentials into examples when users are logged in, simplifying the learning process.
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Kevin Hale
03/25/17
@ Y Combinator
There's a broken feedback loop in how companies are built, where people become divorced from the consequences of their actions, especially in technical teams. Technical co-founders often aim to return to their initial state, but companies tend to silo tasks that are essential for a startup's success, leading to a perception that these tasks are inferior.
KH
Kevin Hale
03/25/17
@ Y Combinator
To improve software development, we need to inject values like responsibility, accountability, humility, and modesty into the process, which we refer to as support-driven development.
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Kevin Hale
03/25/17
@ Y Combinator
Support-driven development is a straightforward approach to creating high-quality software, where everyone in the company participates in customer support, fixing the feedback loop between developers and users.
KH
Kevin Hale
03/25/17
@ Y Combinator
Paul English at Kayak implemented a red customer support phone line in the engineering area, allowing engineers to directly address recurring issues, which improved software quality and reduced support calls.
KH
Kevin Hale
03/25/17
@ Y Combinator
John Gottman identifies four major causes of relationship breakdowns: criticism, contempt, defensiveness, and stonewalling, which can also manifest in customer support interactions.
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Kevin Hale
03/25/17
@ Y Combinator
Ignoring customer support inquiries can lead to significant churn in early-stage startups, as failing to respond is one of the worst things a company can do.
KH
Kevin Hale
03/25/17
@ Y Combinator
At Wufoo, we managed to provide support to 500,000 users with just a small team, achieving a response time of 7 to 12 minutes during peak hours, which was crucial for user satisfaction.
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Kevin Hale
03/25/17
@ Y Combinator
Airbnb's growth was significantly driven by founders engaging in customer support, which helped them understand user needs and improve their service.
KH
Kevin Hale
03/25/17
@ Y Combinator
We conducted an experiment where we asked users about their emotional state during support requests, which revealed that users were more polite and rational when given an outlet for their feelings.
KH
Kevin Hale
03/25/17
@ Y Combinator
Research shows that direct exposure to users correlates with better software design, emphasizing the importance of developers interacting with users regularly.
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Kevin Hale
03/25/17
@ Y Combinator
To bridge the knowledge gap for users, we focused on reducing the complexity of our application rather than adding new features, which often increases the knowledge required to use it.
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Kevin Hale
03/25/17
@ Y Combinator
At Wufoo, we dedicated 30% of our engineering time to creating internal tools that empower users to help themselves, significantly reducing customer support needs.
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Kevin Hale
03/25/17
@ Y Combinator
Our growth at Wufoo was driven entirely by word of mouth, with no advertising, highlighting the importance of user satisfaction and retention in achieving growth.
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Kevin Hale
03/25/17
@ Y Combinator
Market dominance can be achieved through three strategies: best price, best product, or best overall solution, with the latter being accessible to any company willing to prioritize customer intimacy.
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Kevin Hale
03/25/17
@ Y Combinator
The path to market dominance through customer intimacy requires little financial investment, relying instead on humility and good manners to build strong relationships with users. Focus on the most passionate users in the early stages of product development to build a product that resonates with them.
KH
Kevin Hale
03/25/17
@ Y Combinator
Start by catering to a specific niche, as this can help identify universal values that appeal to a broader audience over time.
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Kevin Hale
03/25/17
@ Y Combinator
Make your product easy to use as the primary focus, and add polish and humor only after ensuring functionality is solid.
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Kevin Hale
03/25/17
@ Y Combinator
Balance product development with marketing and customer engagement; being overly focused on product can lead to user dissatisfaction.
KH
Kevin Hale
03/25/17
@ Y Combinator
Always maintain a feedback loop with users while working on product development to ensure you are meeting their needs effectively.
KH
Kevin Hale
03/25/17
@ Y Combinator
Word-of-mouth growth is the most effective form of marketing; create a compelling story about your product that users want to share.
KH
Kevin Hale
03/25/17
@ Y Combinator
When making product decisions, prioritize user feedback and support requests to identify the most pressing issues and feature requests.
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Kevin Hale
03/25/17
@ Y Combinator
Avoid pursuing multiple product directions simultaneously, as this can lead to wasted time and resources; focus on small, manageable projects instead.
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Kevin Hale
03/25/17
@ Y Combinator
Implement a structured approach to remote work, such as a four and a half day work week, to respect employees' time and maintain productivity.
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Kevin Hale
03/25/17
@ Y Combinator
Use simple tools like to-do lists to manage projects and hold employees accountable, allowing them to set their own performance standards.
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Kevin Hale
03/25/17
@ Y Combinator
Hiring for remote work involves assessing candidates through practical projects rather than just interviews to gauge their self-management skills.
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Kevin Hale
03/25/17
@ Y Combinator
In customer support, effective communication is crucial; practice writing skills by having candidates draft sensitive messages during interviews.
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Kevin Hale
03/25/17
@ Y Combinator
Avoid crunch periods that can demoralize employees; instead, create a sustainable work environment that allows for recovery and long-term productivity.