Caution: Live Subjects! Lean Experiments for Services

gravitytank | Lean Service Experiments | 2015 LSU Conference

CAUTION: Live Subjects! Lean Experiments for Services Lauren Braun @gravitytankinc

[email protected]

mailto:[email protected]

70people

DESIGNERS

RESEARCHERS

STRATEGISTS

OPERATIONS

IL chicago

2000-present

CA san francisco

I work at an innovation firm.

gravitytank | Lean Service Experiments | 2015 LSU Conference 3

Doing something new

that becomes widely adopted

and creates significant value.

Implementation, not idea

Market pull

Economic or social

what we mean by innovation


DesignThinking

LeanStartup+

desirable

viable feasible


+

• Focus on learning (not on scale or execution)

• Prototyping and iteration

• Speed and agility

• Structured experimentation

• Eliminating wasted effort

• Quantitative, behavioral data

• User empathy

• Multiple solutions

• Design “special effects”

• Qualitative feedback

DesignThinking

LeanStartup

How do I design agood MVP experiment for a service?*

QUESTION

*without a screen


“We want to be the Chipotle of stir-fry.” - BRIGHTWOK FOUNDERS

Are the sauce names accurate?

What’s our “hero” sauce?

How many sauces should we have?

Sauces

Lead with proteins or sauces?

Protein as part of base price or add-on?

How many veggies should be standard?

Food & Pricing

How is the menu best navigated?

Is our menu intuitive to order from?

Full, partial or no customization?

OrderingExperience


Brightwok had very limited means to run an experiment

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oocJ’~7i-is.nil:


What’s the product of a restaurant?

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Are the sauce names accurate?

What’s our “hero” sauce?

How many sauces should we have?

Sauces

Lead with proteins or sauces?

Protein as part of base price or add-on?

How many veggies should be standard?

Food & Pricing




OrderingExperience


We designed three menus with different levels of customization

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We built out a restaurant counter in our event space

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We cooked some Brightwokstirfry in advance

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Then, we invited 60 gravitytankers and neighbors to lunch

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We invited about 100 employees and neighbors to lunch

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Three groups of 20 customersordered from each menu


Finally, they got delicious free stirfry(but not what they ordered)


We observed them whilethey ordered and interviewed them while they ate


Full customization is not the answer

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More menu customization equalsa better ordering experience

HYPOTHESIS LEARNING

Actually, it can be overwhelming and many people ask for suggestions.


“The tests showed us we could make our menu simpler and there is no doubt our customer

experience will be much better because of it.”

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— JEREMY KLABEN, FOUNDER & CEO

Full customization is not the answer


So what happened?


So what happened?

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“Had a great first-time experience.”

“Chipotle-style fast casual stir fry shop. Easy menu to navigate.”

“Absolutely phenomenal! Friendly staff, easy process, fresh ingredients, and amazing flavors.”

“You can build your own or choose from a menu …”

“I cannot believe this place is one of a kind! I imagine there is NO WAY this won't take off if the owner wants.”

Focus your test on the most uncertain or risky elements.

PRO TIP 1


For Brightwok, that was the ordering experience

Make the focus of your test real,use “special effects” for the rest.

PRO TIP 2


REAL ORDER-TAKER

REAL CUSTOMERS

REAL MENU

SPECIAL EFFECTS

SPECIAL EFFECTS

SPECIAL EFFECTS

PRO TIP 3

Design your test to capture quantitative and qualitative data.


Interviews and observation providethe “why” behind quant data


Surveys validate qualitative data and let you ask even more

Design your test around a specific hypothesis.

PRO TIP 4




We really think full customization will be the best ordering experience.

We call these kindof experiments Micro Pilots.

AT GRAVITYTANK


They use real behavior to test specific components of a full offering

Not simply smaller versions of pilots!

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PILOT A live test of a complete offering, scaled down to a fraction of its eventual size.

MICRO PILOT An experiment targeted at a very specific hypothesis about a new offering.


Don’t build and test the whole system

Target the gear that will break the machine

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MACHINE a system of interlocking physical

components

Will this gear hold up at 500 RPM?

Can people easily order from our menu?

BUSINESS MODEL a system of interlocking hypotheses

about a new offering


Micro Pilots see how people act in real(ish) contexts

Not projected behavior, real behavior!

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“You can’t put into a spreadsheet how people are going to behave around a new product.”

- Jeff Bezos


We’ve done Micro Pilots for a wide range of products and services

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HEALTH & BEAUTY RETAIL

APPLIANCESAPPSCPG

HOSPITALITY

@gravitytankinc [email protected]

Black

Black

White

White

Design your test around a specific hypothesis.PRO TIP 4

PRO TIP 3Design your test to capture quantitative and qualitative data.

Make the focus of your test real, use “special effects” for the rest.PRO TIP 2

Focus your test on the most uncertain or risky elements.PRO TIP 1

Caution: Live Subjects! Lean Experiments for Services

Business

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