LP
Building product at Stripe: craft, metrics, and customer obsession | Jeff Weinstein (Product lead)
@ Lenny's Podcast
07/11/24
Takeaways
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
When a customer goes out of their way to discuss a problem, it's an incredible opportunity to connect and understand their needs.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
I prioritize direct communication with customers, often leaving meetings to respond to their messages, which provides invaluable feedback.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
To determine the right metrics, I focus on the value we aim to deliver to customers and how we can measure that from their perspective.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
At Stripe, we practice empathy through 'study groups' where we simulate being a company facing specific challenges, without actually solving any problems.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Stripe Atlas simplifies the process of incorporating a new company, allowing founders to complete necessary steps in just one day.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
One in six new Delaware corporations are formed through Stripe Atlas, which is a remarkable statistic.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
I believe in a 'go, go, go' approach combined with a long-term compounding mindset to drive product development and success.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
It's essential to balance immediate action with strategic planning for long-term goals, especially in product development.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Craft and quality in product development stem from learning from past failures and ensuring that the product solves a real problem for customers.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
I actively seek customer feedback by reaching out directly, which helps me understand their needs and avoid building products that don't address real issues.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Listening to customers is crucial; they often reveal their most pressing problems, which can guide product development effectively.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Silence during customer conversations can lead to valuable insights, allowing customers to express their true needs without being led by a pitch.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
I often tweet asking for customer feedback, providing my email for direct communication, which fosters open dialogue and trust.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Speed is critical; I aim to reduce the time between when a customer feels compelled to share feedback and when I can respond to them. When someone takes the time to communicate about your product, it's an incredible gift that should be treated with high priority. I often leave meetings to respond to such messages, even if it's just to say I'll get back to them later. This creates a sense of connection between the customer and the brand, making them feel valued.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
In situations where customers are upset, my goal is not just to resolve the issue but to turn them into promoters of our product. For instance, when we had a bug in Atlas that affected legal documents, we quickly fixed it and ended up building a strong relationship with the affected founder, who became a valuable ally for us.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
It's crucial to focus on feedback from paying customers rather than friends or acquaintances. Friends may provide feedback, but they might not be your target customers. Instead, you should seek insights from those who are genuinely using your product and are willing to pay for it.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
I encourage founders to practice charging for their product early on. By simulating a transaction, they can become comfortable with the process of asking for payment, which prepares them for real customer interactions later.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Metrics are essential in product development as they provide a numerical representation of the value we deliver to customers. It's important to measure not just internal metrics but also how well customers achieve their goals using our product.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
We focus on a single overarching metric to guide our product development, which helps us prioritize our efforts and make informed decisions. This approach allows the entire team to rally around a common goal, enhancing our effectiveness.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
To avoid perverse incentives from metrics, we ensure that our tactics align with our overarching goals. For example, we track the number of support tickets to gauge customer satisfaction and adjust our strategies accordingly.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
A useful metric to track is the frequency of 'bad days' for users, which can be identified by specific events like payment declines or delays. This helps us understand customer pain points and improve their experience. When you're unsure what to measure, create a chart that tracks when users have a bad day, log it, and allow others to add their insights. This helps teams understand user issues better and prioritize which problems to address.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
It's crucial to focus on feedback from paying customers, as their insights are more valuable for product improvement than those from non-paying users.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Metrics should be presented clearly and concisely, using titles that resonate with the team and reflect the customer mindset, which can motivate the team to improve those metrics.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Practicing silence during communication can enhance understanding and clarity, allowing for more thoughtful responses and interactions.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Maintaining metric hygiene is essential; ensure that all measures on your dashboard are consistent and relevant, which encourages daily engagement from the team.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
At Stripe, we use 'study groups' to enhance product understanding. These groups consist of random employees who role-play as customers to identify pain points in the user experience.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
The study group process involves participants pretending to be customers of a fictional company, which helps them empathize with user experiences and identify areas for improvement.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
The goal of study groups is not to solve problems immediately but to practice empathy for the customer and understand their journey through the product.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
After conducting over 25 study groups, we've found that they provide valuable insights and have become popular within the company, leading to a backlog of requests for new study groups.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
The outputs from study groups are integrated into existing processes for addressing bugs and issues, ensuring that valuable feedback is acted upon without creating new bureaucratic hurdles.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
The 'lean startup' approach helps startups validate ideas quickly.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
We have a strong cultural commitment at Stripe to address even non-incident related craft issues within seven days.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
At Stripe, we prioritize a cultural focus on making the product great and enhancing the customer experience.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
The 'Atlas' service simplifies the process of starting a company, allowing entrepreneurs to do it in just a few clicks.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
We believe that increasing ease and simplicity in starting a business leads to more startups and entrepreneurial energy.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Since automating processes in Atlas, we've seen a rise in solo founders using the service, indicating a shift towards more accessible entrepreneurship.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
The Atlas team is intentionally diverse, which enhances our ability to solve problems and create better products.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
It's crucial to ensure that the candidate pool reflects the diversity we want in our teams, as this impacts the effectiveness of our work.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
We aim to automate administrative tasks for startups, allowing founders to focus on building and shipping their products instead.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
I encourage entrepreneurs to be sensitive to the problems they observe and not overlook any issues, as they can lead to significant business opportunities.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Aligning people around a shared customer problem can prevent the majority failure mode of doing nothing. Using simple storyboarding techniques, like drawing with a Sharpie, helps visualize the perfect solution to that problem.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Creating a tangible proof of existence, like a single piece of paper for the 83b election, can be incredibly motivating and help cut through red tape, allowing teams to make progress without excessive permissions.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
It's crucial to focus on momentum and make each step manageable, which builds trust within the team and encourages them to take more risks as they see success in metrics.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
When everyone is aligned on the same metrics, it eliminates the need for lengthy internal updates, fostering trust and encouraging the team to root for projects like Stripe Atlas, which may not seem immediately profitable.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Making a product economically viable is essential. It's important to showcase how a product can be the best customer acquisition tool or a margin-generating part of the business, ensuring that metrics reflect this.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Building a strong relationship with competitors can lead to mutually beneficial outcomes. Open communication and collaboration can enhance the customer experience and drive innovation.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Storyboarding the ideal vision of a product using simple tools can help teams visualize what they want to achieve without constraints, making it easier to solve significant customer problems.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Engaging early customers in the product design process fosters momentum and ensures that the product meets their needs, rather than relying solely on internal assumptions.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Inviting customers to design the product can lead to better outcomes, as they often have valuable insights and skills that can enhance the final product.
JW
Jeff Weinstein
07/11/24
@ Lenny's Podcast
Maintaining a focus on the most critical problems rather than getting distracted by less important issues can lead to more effective problem-solving and better outcomes for the team.