Step-by-Step Instructions

Path to Utility Testing

Problems it Solves

Welcome to the last exercise for Utility Testing!

You are here to solve one problem:

How do you know when you're done with Utility Testing?

In this chapter, you will discover when you are done with Utility Testing and ready to move on to Scaling, and when you need to go back and run some other experiments before moving on.

When to Move On

You're done with Utility Testing when your Currency Calculator says you have a clear Path to Victory.

There have been two metrics within your Calculator that you've been trying to optimize throughout your Utility Tests:

• Customer Lifetime Value
• Viral Coefficient

These are the two numbers you care about the most in validating your product's Utility. In Currency Testing, you estimated these numbers. In Utility Testing, you have tested and determined what those numbers actually are.

In the Currency Calculator, you took your Viral Coefficient and averaged that with your Early Majority to Early Adopter ratio. The goal was to get at least your blue (Average) lines, if not all three lines, above your Victory Revenue line (orange).

If after doing everything you can to optimize your Utility, your blue line is below your Victory Revenue line, it's a clue that you should turn back - you're not on your Path to Victory!

If however you've optimized your LTV and K Factors to the point that your blue line is above you Victory Revenue - congratulations! You can have confidence that you're on your Path to Victory.

If that's the case, you know you're ready for Scaling. If not, read on...

Stay the Path

If your Path to Victory is no longer clear, this is a great time to look at where you go next to find it again.

To do that, it's best to look at where you've been, so you know which step in the FOCUS process to return to.

You started with Finding Your Early Adopters, doing your interviews and understanding your customers' problems.

You then moved on to Offer Testing, where you did your interview analysis and Offer experiments to see if customers would respond to your Offer.

After that you went to Currency Testing, where you optimized your Victory currency. Throughout the entire way, you've been going back to make the necessary tweaks to optimize each phase.

Now, you've just completed Utility Testing, where you ran experiments optimizing your LTV and K factor.

From here, you can return to your Currency Experiments and rework your currency. You can also find a different Offer or channel that may lead to a different currency structure and different Utility outcomes.

Of course, you can always return to your customers and find a different segment or problem to solve. The world is your oyster. If the path you're on now if not leading to Victory - it's time to find one that is.

Whatever you choose, do it now, do it early, and keep your focus on solving your customers' problems!

The only way to truly fail, is to give up.

What's Next

If you have reached the end of this book and you are on your Path to Victory, you now know that your product provides the Utility you need.

Congratulations!

Your next step is Scaling to achieve your Victory!