Picking sharp problems, increasing virality, and unique product frameworks | Oji Udezue (Typeform, Twitter, Calendly, Atlassian)

Sep 14, 2023 Episode Page ↗
Overview

Aji Udezwe, CPO at Typeform and former product leader at Microsoft, Atlassian, Calendly, and Twitter, shares insights on product-led growth, ideal customer profiles, and increasing product virality. He also discusses powerful frameworks and the concept of "Forest Time" for strategic thinking.

At a Glance
17 Insights
1h 16m Duration
16 Topics
9 Concepts

Deep Dive Analysis

Introduction to Oji Udezue's Product Career

"Where to Fish to Land a Unicorn" Framework for B2B SaaS

Understanding Workflow Quadrants for Startup Success

The "Zone of Benefit" Framework: How Much Better Is Enough?

Identifying Ideal Customer Profiles (ICPs) for Different Products

Oji's Philosophy on Using Frameworks Effectively

The Importance of Solving "Sharp Problems" in PLG

Distinguishing Discovery, Continuous Conversations, and Listening

Fundamentals of Effective Product Onboarding Strategies

Defining Activated User Milestones for Product Success

Understanding and Leveraging Network Effects in Products

The True Nature of Virality and How to Foster It

"Forest Time": Intentional Elevation for Strategic Clarity

Lessons from Bridgewater Associates: Skills, Attributes, Values

The Need for a Product System in R&D Organizations

Lightning Round: Books, Interview Questions, Product, Motto, Food

"Where to Fish to Land a Unicorn" Framework

This framework for B2B SaaS ideas segments the market by how many departments a workflow applies to (niche vs. everyone) and how frequent the workflow is (infrequent vs. frequent). It helps founders and investors predict success by identifying the most profitable and challenging quadrants for building a billion-dollar company.

Zone of Benefit Framework

This framework posits that people will only switch to a new product if it makes their workflow at least two to three times better, either by significantly shrinking the time/effort required or by providing a 'superpower' that dramatically increases output for the same effort. This noticeable improvement is crucial for overcoming switching costs and making people part with money.

Sharp Problem

A 'sharp problem' is one that is materially felt by customers, stealing their time, energy, money, or focus. Solving such a problem provides a significant 'tailwind' for a product, making it harder to fail, as customer obsession can carry it through mistakes, unlike non-sharp problems that require heavy marketing spend.

Continuous Conversations

This is a practice where product managers, designers, engineering managers, and product marketing managers are scheduled to talk to customers weekly by default, ensuring ongoing feedback without individual friction. It's distinct from targeted discovery, which focuses on specific optimizations, and passive customer listening.

Customer Listening

This involves continuously gathering customer signals from various sources like social media, app stores, G2 crowd, churn surveys, NPS verbatims, bug reports, customer support interactions, and closed-won deals. It's about understanding what matters from a customer delight perspective from signals that are happening constantly, whether you are actively listening or not.

Network Effects

Network effects occur when a product creates value for passive members simply by other people joining the network, regardless of their individual effort. The more people that use the product, the more valuable it becomes to each user, leading to a 'critical mass' that makes the product incredibly powerful and hard to kill.

Virality

Virality is when customers effectively market your product through high-quality word-of-mouth, affording the company the ability to spend less on traditional marketing. It is fundamentally built on a great product that solves a sharp problem exceptionally well, rather than just synthetic tactics like 'refer a friend' programs.

Forest Time

Forest time is intentional time set aside within one's week or month to gain a 'bird's eye view' of the overall strategic landscape, rather than being caught in the 'fog of war' of daily operations. It involves a structured workflow to identify alternate paths and improve strategic aim, leading to better long-term execution.

Product System

A product system is an abstraction layer above Agile and design thinking that helps organize work at the product and business level within R&D organizations. It's a co-creative framework for constructing a cohesive R&D organization, potentially boiling down to a checklist of systems needed for effective execution.

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How can founders and investors identify big B2B SaaS ideas with high potential for success?

They can use a framework that segments workflows by the number of departments they apply to (niche vs. everyone) and their frequency (infrequent vs. frequent). High-frequency niche workflows are often the most fertile ground for B2B SaaS unicorns.

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How much better does a new product need to be than the status quo for people to adopt it?

A new product needs to be at least two to three times better in terms of shrinking workflow time or providing a significant output increase for the same effort. This noticeable improvement is what makes people willing to switch.

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What are the key characteristics of an 'Ideal Customer Profile' (ICP) for a product?

ICPs are customers who deeply understand and value the product's benefits, often to the point where they are not price-sensitive. They are the ones for whom the product solves a truly 'sharp problem' and provides a significant 'zone of benefit'.

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What are the signs that a problem is 'sharp enough' for a product to succeed?

A problem is sharp enough if it materially steals customers' time, energy, money, or focus. Founders can assess this by mapping current vs. post-software workflows to see if the new solution is 2-3x shorter, or by observing customers' enthusiastic reactions and willingness to pay.

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How can product teams ensure they are continuously understanding customer needs beyond traditional discovery?

Beyond targeted discovery, teams should implement 'continuous conversations' where PMs, designers, and engineers have weekly customer calls by default, and also practice 'customer listening' by actively gathering signals from social media, app stores, surveys, bug reports, and customer support.

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What are the fundamental principles for effective product onboarding in a PLG context?

Onboarding acts as a substitute for sales, aiming to approximate a friendly human guide. It should be designed around buyer psychology, with a mandatory, spare setup (ideally 3 screens or less) for essential success, and optional, random-access elements for curious users.

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How can a product's virality be genuinely increased, especially in B2B?

The bedrock of virality is building a great product that solves a sharp problem exceptionally well. If the product truly delights users and significantly improves their workflow, they will naturally remark about it, leading to high-quality word-of-mouth, which is 'customer augmented marketing'.

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What is 'forest time' and how can professionals incorporate it into their work?

'Forest time' is dedicated, intentional time (e.g., a full day off monthly) for operators to step back from daily tasks and gain a 'bird's eye view' of their strategic landscape. It involves a structured workflow to identify alternative paths and improve strategic aim, preventing 'fog of war' and enhancing long-term effectiveness.

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What unique insights can be gained from assessing people beyond just their skills?

Organizations can gain a more complete understanding of individuals by considering their attributes (e.g., timid, bold, proclivities) and values (e.g., integrity, principles) in addition to their skills. This broader perspective can improve hiring and team building, as skills alone are not fully predictive of success.

1. Build Great Products for Sharp Problems

Focus on building a great product that solves a “sharp problem” for customers, addressing pain points that materially steal their time, energy, money, or focus. This is the fundamental bedrock for achieving product virality and sustained success.

2. Achieve 3x Product Improvement

Ensure your product offers at least a 2-3x improvement over the status quo in terms of shrinking workflows or providing superpowers. This significant leap in value is necessary for people to notice, care, and be willing to switch.

3. Design Onboarding for Buyer Psychology

Design onboarding as a substitute for human sales, focusing on buyer psychology to progressively build confidence in your tool. Make the mandatory setup spare (ideally 3 screens or less) and provide essential information, while offering optional, random-access features for curious users.

4. Implement Continuous Customer Listening

Establish a system where product teams (PMs, designers, EMs, PMMs) have customer conversations automatically scheduled weekly. Additionally, continuously “scarf up” customer signals from social media, app stores, churn surveys, NPS verbatims, bug reports, and customer support interactions to understand what matters.

5. Sharpen Your Ideal Customer Profile

Identify your Ideal Customer Profile (ICP) by observing who is most enthusiastic and least price-sensitive about your product. These customers fundamentally understand and value your solution, guiding your target audience.

6. Analyze Workflow Frequency & Breadth

Use a quadrant framework to analyze workflows by how many departments they apply to (niche vs. everyone) and their frequency (infrequent vs. frequent). Aim for “high-frequency niche” or “high-frequency everyone” workflows to increase your probability of building a billion-dollar company.

7. Schedule Dedicated “Forest Time”

Intentionally schedule dedicated “forest time” (e.g., a full day or two at the end of the month) to step back from daily operations and gain a bird’s-eye view of the strategic landscape. Use a specific worksheet to survey the “forest” and identify alternate paths or solutions, improving long-term aim and effectiveness.

8. Measure Workflow Compression

Before building, map out the current customer workflow and compare it to the proposed workflow with your software. Measure if your solution makes the workflow significantly shorter (2-3x) or inflates capabilities, indicating a truly sharp problem.

9. Gauge Customer Excitement

Observe customer reactions during problem discussions; if their eyes widen or they spontaneously ask about payment, it indicates you’re likely addressing a sharp problem they deeply care about.

10. Master Framework Fundamentals

Don’t apply frameworks blindly; understand their underlying fundamentals and empirical relationships. This allows you to adapt them effectively to different stages of a company (starting, middle, scaling) and specific problems, leading to more productive application.

11. Establish Tiered Activation Milestones

Define three increasing thresholds of activation for your product to track user progress and identify drop-off points. For example, at Calendly, it was creating a first meeting, then creating five within a week.

12. Clearly Communicate Trial Status

Be transparent with users about their position in the trial cycle, including when payment is expected. Clear communication helps users understand their journey and can significantly improve conversion rates.

13. Provide Clear Onboarding Examples

During onboarding, provide one or two clear examples of what “good looks like” when using the product. This mimetic approach is powerful for guiding users to successful adoption.

14. Assess People by Skills, Attributes, Values

When evaluating individuals (e.g., during hiring or team building), consider their skills, attributes (e.g., timid, bold), and values, not just their skills. This holistic view can improve success in team composition and individual performance.

15. Cultivate Curiosity & Humility

Adopt the mindset that “there’s more knowledge outside my head than inside it” to foster curiosity, skepticism, and humility. Always be listening for new information, even when you feel knowledgeable, to continuously learn and grow.

16. Try Nigerian Fried Plantain & Stew

Seek out and try Nigerian fried plantain with beef stew, as it’s a highly recommended and beloved dish that many Nigerians deeply enjoy.

17. Experience Nigerian Pepper Soup

For those who enjoy spicy food, try Nigerian pepper soup, a delicious and intense dish that is highly regarded within Nigerian cuisine.

This is the bedrock of virality. Build a great product that solves a sharp problem.

Oji Udezue

The essence of strategy is to navigate from, you know, the curve of travel is essentially go from the lower to the higher.

Oji Udezue

Your best customers aren't price sensitive for what you're shooting for, because they get it, right? They fundamentally understand it.

Oji Udezue

The art of building say a software company that is profitable is not scientific. There's a lot of uncertainty, a lot of unknowns, there's timing issues.

Oji Udezue

Onboarding is a substitute for sales and all these account management teams for millions of customers. The task is how do you make it approximate a human and how friendly a human is and how approachable a human is?

Oji Udezue

Network effects is a feature by itself and it's the most powerful feature.

Oji Udezue

Virality is essentially customer augmented marketing, which gives you options.

Oji Udezue

There's more knowledge outside my head than inside it.

Oji Udezue

Identifying a Sharp Problem (Pre-Customer)

Oji Udezue
  1. Draw the current approximate average workflow for your target customer.
  2. Draw the workflow after they've used your software.
  3. Measure how much shorter the new workflow is (aim for 2X or 3X shorter).
  4. Observe if people's eyes get big and expose more whites when you share the problem and solution.
  5. Note if people spontaneously bring up money or ask 'When can I pay?'

Designing Product Onboarding

Oji Udezue
  1. Understand the mindset of a buyer/evaluator (buyer psychology).
  2. Break down the customer's journey from not knowing anything to developing confidence in the tool.
  3. Design the 'mandatory setup' portion to be as short as possible (ideally no more than three screens), providing essential information and setup for success.
  4. Design 'optional' elements for curious users that are not necessary for everyone but are beneficial, allowing random access anytime.
  5. Provide one or two clear examples of what 'good looks like' for the product's use.
  6. Be very clear about where users are in the trial cycle and when payment is expected.
two, three more X
Improvement needed for product adoption (Zone of Benefit) For a product to make a difference and be noticed, it has to be at least two to three times better than the status quo.
30%
Twitter's unseen customer base (media organizations) Percentage of Twitter's customer base that were media organizations like the NFL, NBA, and HBO, using the platform for content reach and monetization.
80%
Attrition rate at Bridgewater Associates The percentage of attrition Bridgewater was willing to endure to arrive at the best people, though Oji notes some system aspects were not empathetic to humans.
10-20 percentage points less
Marketing spend reduction for viral products (e.g., Atlassian) Atlassian spends this much less on marketing compared to equivalent competitors due to its virality and network effects.
not more than three screens
Maximum recommended screens for mandatory onboarding setup Oji's recommendation to keep the essential setup portion of onboarding spare and short.