Key Moments

YC SUS: Kat Mañalac and Eric Migicovsky discuss Week 2 SUS Lectures

Y CombinatorY Combinator
Science & Technology6 min read61 min video
Jan 29, 2020|8,394 views|164|12
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TL;DR

Launch products quickly rather than striving for perfection. It's better to iterate based on real user feedback than to wait too long for an ideal launch. Founders often underestimate how much users are willing to pay for solutions.

Key Insights

1

Don't spend weeks perfecting product launches; a few hours to a couple of days on messaging is sufficient, with exceptions for complex launches like Kickstarter or press pitches.

2

Spending weeks perfecting marketing copy is often unnecessary; get feedback from others early on, as you may be too close to the product.

3

Separate user interviews into two groups: those using the product and those who are not, to gain distinct insights.

4

For B2B sales, don't be afraid to charge more; enterprise software solving a significant problem can command higher prices due to the cost of in-house development.

5

When launching in a specific geo-targeted area, consider manual, on-the-ground efforts, like standing outside relevant locations (e.g., IKEA) or using door hangers and stickers.

6

For biotech/pharma tech companies, target specific reporters at publications like Fierce Biotech and STAT, offering exclusives and aligning pitches with their past coverage.

Prioritizing launch velocity over perfection

Kat and Eric emphasize that founders often spend too much time perfecting a single launch. The recommendation is to launch quickly and iterate, rather than waiting for a perfect product or marketing message. For most channels, spending a few hours or days on messaging is sufficient, and founders should avoid stressing over perfection. Eric highlights that every launch introduces the product to a new audience, making continuous launching crucial. The goal is to maximize surface area and chances of reaching potential users, as it’s difficult to gain attention in the early stages of a company. While complex launches like Kickstarter or press pitches may require more time, the general advice is to get an MVP out as soon as possible. Founders are encouraged to get feedback on copy and messaging early, as they are often too close to their product and may be obsessing over details that users won't notice.

Effective user engagement and interview strategies

When conducting user interviews, it's crucial to differentiate between users who are currently using the product and those who are not. For non-users, interviews should be open-ended, focusing on the problems they face, their daily routines, and existing solutions they use. For current users, discussions should center on product improvement and feedback. Mixing these points, like pitching a coupon during a feedback interview, is discouraged as it can confuse the user's context. Eric advises against incentivizing feedback with payments, suggesting that if a problem is significant, users will naturally want to discuss it and help find a solution. If a product isn't significantly better (10x) than existing alternatives, it can be challenging to gain traction. For relaunching a product with a significant delay, personalized outreach, such as direct emails from the founder, can be effective in re-engaging users. Surveys can be a good way to test for product-market fit before heavy development, but if a problem is validated, building an MVP is the next step.

Strategies for outreach and gaining attention

Getting influencers, bloggers, and leaders to promote a product often requires persistence and a strategic approach. It's crucial to research targets and ensure that the product addresses a problem they or their audience care about. This process is largely a numbers game, requiring hundreds of outreach efforts for a reasonable response rate. Aiming lower by targeting community leaders, Facebook groups, subreddits, or niche forums can be more effective than solely focusing on top-tier influencers. Follow-ups are essential, similar to sales processes. For specific geographic launches, founders might need to engage in manual, on-the-ground efforts, such as personally approaching potential customers in high-traffic areas. Leveraging personal networks (co-workers, friends, classmates) can provide initial traction. For biotech companies, identifying specific reporters at relevant publications who have covered similar companies and offering them exclusives is a recommended strategy. A strong launch narrative can also be enhanced by timing it with industry events like conferences or paper publications.

Addressing challenges in B2B, enterprise, and niche markets

Approaching large enterprise clients like Walmart can be challenging and often involves a long sales cycle, which can be detrimental for early-stage startups. This strategy, known as 'whale hunting,' is best avoided initially. Instead, focus on smaller customers who can make quick decisions and provide faster feedback. For B2B companies where the user differs from the paying customer, it’s vital to understand the budget holder and their decision-making process. In slower sectors like government, understanding budgeting cycles and ensuring budget allocation for your solution is key. For businesses with strong network effects, like contact address book updates, it’s beneficial if the product provides standalone value even before a large network is established. This mitigates the risk of early adopters leaving if the network is too small. For hardware startups, the principle of starting with one sale and ensuring the customer loves it remains critical, even suggesting attaching a sensor to an existing smartwatch if building a full product is too slow.

Pricing, feature development, and audience focus

For enterprise SaaS companies, pricing can be flexible, allowing for A/B testing by not publicizing rates. Founders are often advised that they are likely charging too little, as enterprises have significant engineering costs for in-house solutions. When validating feature development, focus on solving the user’s identified problem rather than asking hypothetical questions about future features. The MVP should address a validated problem. If a demographic, like high schoolers for a gift list app, shows traction but doesn't generate revenue, founders should reconsider their focus, perhaps by adapting the product or targeting a different demographic that aligns better with revenue generation. This includes considering whether the target audience is the user or the paying customer, and how to align their differing priorities.

The role of MVPs, iteration, and avoiding premature launches

An MVP can be as simple as a single-page landing page if it effectively solves a user's problem, as demonstrated by companies that have raised significant funds with minimal product development. However, for complex products or those in regulated industries like healthcare, a more robust approach is necessary. In healthcare, it's crucial to avoid 'breaking things' and instead focus on evolving existing telemedicine platforms by adding modules or leveraging HIPAA-compliant infrastructure. For mobile app updates, the launch process should be treated similarly to a first launch, utilizing all relevant channels. Testing updates with existing users as a beta can provide valuable insights into marketing messages that drive upgrades. Founders should not be afraid to stop, rebuild, and relaunch if initial efforts reveal that the core hypothesis is incorrect or the problem isn't as pressing as initially thought. Learning from past failures and adapting is key.

Startup Launch & User Research Cheat Sheet

Practical takeaways from this episode

Do This

Spend a few hours on messaging for each launch channel, get feedback, but don't spend weeks perfecting.
Maximize your surface area by launching quickly and often; treat each launch as new to most people.
Keep landing page calls-to-action short and clear; avoid jargon like 'alpha' or 'beta'.
Separate user interviews into two groups: those using the product and those not.
Ask for feedback without incentives if the problem is significant; the solution should be the incentive.
Aim lower for influencer outreach; targets can include Facebook groups, subreddits, and niche online communities.
Follow up with bloggers and media contacts multiple times.
For geo-targeted services, consider manual on-the-ground efforts and leveraging personal networks.
Research reporters' previous coverage to pitch relevant stories.
Time media outreach around events like conferences or paper publications.
Build MVP solutions to problems users explicitly state they have; don't just discuss hypothetical features.
Launch your product as quickly as possible to gather real user feedback and iterate.
Solo founders can build MVPs while working full-time, but assess if the idea warrants full-time commitment.
For enterprise pricing, leverage the lack of public pricing to run A/B tests.
Don't be afraid to charge more for enterprise software; the alternative is often significant in-house engineering costs.
Identify the decision-maker and budget holder when users and paying customers differ.
Research past failed companies in your space to understand what went wrong.
Focus on building utility even without a network effect, especially for early adopters.
When relaunching, investors look for what you've learned and your unique insights.
Consider focusing on a very specific niche to align users and customers.
Target users who have experimented with similar solutions in the past.
Prioritize user niches sequentially based on the presence of an acute problem, frequency, and willingness to pay.
When testing features, interview both new and active users.
Identify your beachhead market by looking at your most active or easiest-to-convert paying customers.
Use online communities like Product Hunt and Hacker News for initial traction.
Use 'X for Y' constructions for descriptions only if X is a well-known household name and clarifies your offering.
A simple landing page can be a sufficient MVP for fundraising if it solves a real problem.
Focus on organic revenue by selling one product and ensuring the first customer loves it.
Re-engage lost users personally, as the CEO, with direct emails or calls.
Build trust and reputation in your target sector before approaching large companies.
For large companies, seek smaller customers first who can make quicker decisions.
When deciding to rebuild, ensure you've learned from market feedback rather than repeating past mistakes.
If a demographic isn't generating revenue, consider adapting the product or targeting a different demographic.
In user interviews, focus on understanding user behavior and the underlying problems, not just feature requests.
Treat a major app update like your first launch, hitting all the same channels.
Use early beta testing of updates to refine marketing messages based on user feedback.
For local startups, grow within the current city before expanding.
In healthcare, prioritize legal and ethical compliance; explore partnerships with existing telemedicine platforms.
Launching fast in healthcare means focusing on one region and evolving existing solutions.

Avoid This

Don't spend weeks perfecting any single launch channel; focus on getting messaging down in hours and seeking feedback.
Don't wait for a product to be perfect before launching; you've likely waited too long.
Don't mix user interviews with sales pitches or coupon incentives.
Don't expect bloggers or influencers to respond after just one email; follow up persistently.
Don't solely rely on top-tier influencers; aim lower and engage with community leaders.
Don't underestimate the manual, on-the-ground efforts needed for initial localized launches.
Don't talk about hypothetical products in user interviews; build a solution and get feedback on it.
Don't save your full product launch for a big event like Demo Day; launch early to iterate.
Don't get too complicated with 'hard launch' or 'version 1.0' thinking; get the product out there.
Don't assume your MVP is sufficient if users aren't regularly using it; you may not be solving their core problem.
Don't be afraid to charge enterprise clients more; their alternative is often costly internal development.
Don't solely target large 'whale' customers initially; focus on smaller customers with faster decision-making.
Don't assume a problem exists if people aren't willing to pay for a solution.
Don't launch into healthcare by 'breaking things'; prioritize legal and ethical compliance.
Don't expand to multiple locations simultaneously when improving an MVP; perfect one first.
Don't rely solely on investor dollars if customer revenue can fund growth; it simplifies future fundraising.
Don't pitch solutions during user interviews focused on understanding behavior; refocus on the underlying problem.
Don't expect large companies like Walmart to be your first customer unless you have a pre-existing connection.

Common Questions

It's recommended to focus on getting your core messaging right for each channel within a few hours or days, rather than spending weeks perfecting any single one. The goal is to maximize your surface area by launching frequently, as each launch is effectively new to most people.

Topics

Mentioned in this video

Companies
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A company that helps find and eliminate bias in AI training datasets.

Contact Pointers

A service that automatically updates people's address books when contact information changes.

Tori

A platform connecting global shoppers with international travelers.

Porchship

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Serious

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Flexo

A company that enables users to build financial models for their growing company quickly.

Story Lowe

A platform that helps brands hire photographers for digital marketing needs.

Robin and Rover

An online platform enabling users to trade their purchasing data directly with companies.

We Work

A company that provides flexible workspace solutions.

Boom Loaf

A service that helps users separate inorganic trash by scanning package barcodes.

Magic

A company that raised money on the back of a simple landing page MVP.

Live Simulator

A VR training platform for first responders, created by a firefighter.

Metro push

A push notification app for public service providers like electricity and water companies.

Gifted

A platform for users to manage wish lists from multiple sites and shop for gifts.

Y Combinator

A startup accelerator that provides funding, mentorship, and community to early-stage companies.

List Alya

A service or platform related to user interviews and understanding user behavior.

Biz

A company that shows businesses around users and helps them receive payments.

Well in

A platform that empowers yoga teachers to host events at homes.

Walmart

A multinational retail corporation.

Latter

A platform designed to simplify finding effective mental wellness practices and solutions.

YDS Medicine

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Nuke's Vision

A retail analytics platform similar to Google Analytics.

Unify

A mobile app company planning a large update to convert more free users to paying users.

This'n

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Stripe

A financial technology company that provides payment processing software and APIs for online transactions.

Uber

A ride-sharing company that also offers services like food delivery and moving assistance.

Phase

A white-label payments SDK that allows enterprise partners to issue digital rewards.

Buffer

A social media management platform.

Spirit

A smartwatch company with a main feature of real-time hydration monitoring.

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