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How to use Perplexity in your PM work

Forerunner Ventures sent this email to their subscribers on June 11, 2024.

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Forwarded this email? for more HOW TO USE PERPLEXITY IN YOUR PM WORK 27 EXAMPLES (WITH ACTUAL PROMPTS) OF HOW PRODUCT MANAGERS ARE USING THE AI-POWERED SEARCH ENGINE TODAY Lenny Rachitsky Jun 11 READ IN APP 👋 Hey, Lenny here! Welcome to this month’s ✨ free edition ✨ of Lenny’s Newsletter. Each week I tackle reader questions about building product, driving growth, and accelerating your career. If you’re not a subscriber, here’s what you missed this month: 1. On saying no 2. The art of the pivot, part 1: The definitive list of successful pivots 3. The art of the pivot, part 2: How, why, and when to pivot 4. In defense of feature team PMs Subscribe to get access to these posts, and every post. For more: Podcast | Lennybot | Swag | Best of Lenny’s Newsletter | Hire your next product leader. ---------------------------------------------------------------------------------------------------------------------------------- Chatbot tools like ChatGPT and Perplexity are quickly becoming de facto co-pilots for product managers. I ran this poll on X and LinkedIn, and holy shit, over 50% of PMs who responded are now using a chatbot daily. And 85% are using one weekly 🤯 Product managers: How often do you use a chatbot like ChatGPT, Perplexity, Claude, or Gemini to help you with work? You can see how people vote. Learn more Very rarely @ 9% Daily @ 57% Weekly @ 29% Monthly @ 4% 6,264 votes Robert Bye, a PM at Figma, shared a common sentiment: a Robert Bye &2 @RobertJBye Replying to @lennysan and @sanjj2001 Honestly, it's kind of shocking how many people are answering 'Rarely'. They're basically strapping one hand behind their back! 10:56 AM - May 28, 2024 When was the last time a new tool went from non-existent to daily use for the majority of product managers? Things are changing fast. Interestingly, Perplexity was the second most mentioned chatbot, behind ChatGPT. I’m not surprised. I recently did a deep dive on how Perplexity builds product, and while working on that piece, I got to talking to their team about how product managers use Perplexity to do their work. The conversation led to an in-depth survey, which received more than 300 responses, which led to 30 follow-up calls and, finally, to the post you’re reading now. Sourced from hundreds of product managers who filled out our survey and hopped on calls, I put together a comprehensive collection of ways PMs are using Perplexity to do their work, including: 1. Understanding and crafting growth strategy 2. Finding benchmarks 3. Doing market research 4. Learning best practices 5. Evaluating popular tools 6. Understanding technical jargon This collection builds on How PMs use ChatGPT to do their work (currently my fourth most viewed post) and expands on my collection of advice for integrating AI into your PM workflows. Whether all this change scares you or gets you excited, you should be carving out time to play around with these tools. Here’s a bunch of stuff to try. 27 WAYS PMS ARE USING PERPLEXITY IN THEIR DAY-TO-DAY WORK Actual prompts shared by readers, including links to try out the prompt and screenshots of some of the results: A. UNDERSTANDING AND CRAFTING GROWTH STRATEGY 1. Explain growth accounting to a product manager lflSl Answer Growth accounting is a framework that helps product managers understand the drivers of growth for their product or business. It breaks down the overall growth into different components, allowing you to analyze the quality and sustainability of that growth. Here's how it works: What is Growth Accounting? Growth accounting decomposes the overall growth metric (e.g. revenue, monthly active users) into four main components: 1. New: Growth from newly acquired users/customers in the current period. 2. Churned: Loss from users/customers who were active in the previous period but not the current one. 3. Resurrected: Growth from users/customers who had churned previously but became active again in the current period. 4. Retained: Growth carried over from users/customers who were active in both the previous and current periods. The key equation is: Growth = New + Resurrected — Churned + Retained By breaking down growth this way, you can better understand the health and sustainability of your growth. For example, high growth driven primarily by new users with high churn is less sustainable than growth driven by retained and resurrected users. ' * Why It Matters for Product Managers As a product manager, growth accounting helps you: 1. Diagnose growth quality: Is growth being driven by short-term tactics that acquire low-value users (high new, high churn)? Or is it from product improvements that increase user value (high retained, high resurrected)? 2 2. Identify growth opportunities: High churn may indicate a need to improve activation or long-term retention. High resurrected could mean revisiting re- The PM Specializations b I @ View More e 3 [ P Watch ® A Growth J——— e e o e fi (@ Generate Image + 2. Walk through the evolution of Dropbox’s referral program. Why did it work? Qfil Answer Dropbox's referral program was a massive success, allowing the company to grow from 100,000 registered users to 4 million in just 15 months - an astounding 3900% growth. Here's a walkthrough of how their referral program evolved and the key reasons behind its effectiveness: Initial Inspiration Dropbox's referral program was inspired by the successful "refer-a-friend" program run by PayPal, which rewarded users with cash for referrals. Drew Houston, Dropbox's founder, realized they could adapt this model by offering their core product - cloud storage space - as the incentive instead of cash. The Incentive Structure Dropbox implemented a clever double-sided incentive structure: « Both the referrer and the referred friend would get 500MB of free storage space for each successful referral. « The referrer could earn up to 16GB of free space through referrals. This double incentive created a viral loop by motivating both existing users to share Dropbox (to get more space) and new users to become advocates themselves after experiencing the value. Integration into Onboarding One key to the program's success was making it part of the seamless 6-step onboarding process for new users. The final step prompted users to "Get more space" by inviting friends, ensuring maximum visibility and reducing friction. Clear Messaging and Easy Process Dropbox kept the referral messaging clear, explaining exactly what users would get: "500MB of free space if that friend installs Dropbox." They also made the process extremely easy by: » Allowina users to share referral links via multiple channels like email. social media. Get up to 16 GB of free Dropbox space! o nstals Dropbox we'l e you be more space,uperade you accoun i your liends. S00MB @ REFERRAL PROGRAM yatch ® e e L Ly U program & \watch ® i Watch ® G Generate Image =+ 3. How are the app store top charts calculated? 4. Give me examples of a reverse trial that led to an increase in conversion rate 5. Incrementality test designs for advertising campaigns 6. Google Play and Apple App Store optimization techniques B. FINDING BENCHMARKS 7. What is the average open rate for push notifications on Android and iOS? @ teamperplexity © Just now + Collection / What is the average open rate for push notific... 3 Convert to Page What is the average open rate for push s —— notifications on Android and iOS? S 1 #¢ Pro Search © Find average open rate for push notifications on Android e © Find average open rate for push notifications on iOS » B Push Nottcario £ Sources IIIIIII . L 21 Critical Push 40+ Helpful Push Push Notifications 5 O — Notification Statistics fo.. Notification Statistics... Statistics (2024) -... e = 0 moengage - 1 @ notifyvisitors - 2 @ businessofapps - 3 Vicw 3 mare - | E ‘,’.‘ liro @ View More &% Answer 8 Search Videos + Based on the search results provided, here are the key points about the average open rate (@ Generate Image =+ for push notifications on Android and iOS: Average Push Notification Open Rates * The overall average open rate for push notifications across Android and iOS devices is around 7.8%. ' 2 & However, this can vary significantly depending on factors like industry, personalization, timing, etc. « For Android devices specifically, the average push notification open rate is higher at around 10.7%. ' Some sources cite an Android open rate of 4.6%. * = ForiOS devices, the average open rate tends to be lower, around 3.4% according to some sources. * ¢ « There is a notable difference between Android and iOS, with Android having higher average open rates likely due to the opt-in process being automatic on Android versus an extra step required on iOS. * ¢ Other Notable Statistics = Basic personalization can increase push notification open rates by around 9%, while more advanced personalization delivers even better results. ' 8. Using Lenny’s Newsletter research, what is good retention for a consumer product? &R Answer Based on Lenny's Newsletter research, here is what is considered good retention for different types of consumer products: Consumer social products (e.g. Snapchat): « ~25% retention at 6 months is considered good + ~45% retention at 6 months is considered great Consumer transactional products (e.g. Airbnb): « ~30% retention at 6 months is considered good e, « ~50% retention at 6 months is considered great Consumer subscription products (e.g. Duolingo): + ~40% retention at 6 months is considered good * ~70% retention at 6 months is considered great For consumer Saa$S products specifically (e.g. Netflix, Spotify): « ~55% net revenue retention is considered good o — - THE ULTIMATE « ~B0% net revenue retention is considered great h GUIDE TO 3 ADDING A PLGE Net revenue retention measures the percentage of recurring revenue retained from py MOTHWatch ® existing customers over a period of time, typically 12 months. [ &% GROWTH So in summary, 6-month user retention of 25-40%+ is a good benchmark for most 1 DGETLT consumer products, while 45-70%+ is considered great retention, depending on the R RC) specific type of consumer product. For consumer subscription products, 55-80% net - - revenue retention is the key metric to aim for ' 2. @ Generate Image @ Share 4% Rewrite ® & -+ @© CLAUDE 3 OPUS < Related what are some strategies to improve consumer product retention el how does retention differ between consumer social and consumer transactional products what is cohort retention and how is it measured + W TR TN 2 LA 3 (LU TR SALE Watch ® Watch ® 9. What is CSAT and how is it calculated? Include CSAT scores from top technology companies. 10. What is Net Promoter Score and how is it calculated? Include NPS scores from top technology companies. 11. Explain the product-market-fit survey by Rahul Vohra C. DOING MARKET RESEARCH 12. Notion’s AI go-to-market strategy Notion's Al go-to-market strategy ‘E Sources 4 Al launch lessons: what we... notionso -1 How Notion Grows. What & & By Rachel Hepworth Chief Marketing Officer We W€ ¢an learn about... introduced Notion Al two weeks before ChatGP... O uxplanet « 2 View 3 more flfil Answer Notion took a bold approach with their Al go-to-market strategy, prioritizing speed over certainty to rapidly launch Notion Al and gain real-world user feedback. Their key strategies included: Launching Quickly to Capture Early Adopters Notion decided to go to market as soon as possible with Notion Al, even with limited features and outstanding questions about pricing, use cases, and messaging. This allowed them to get their Al product into the hands of eager early adopters and learn from a large user pool in real-time . Listening to User Feedback Notion closely monitored how users were actually utilizing Notion Al, which differed from their initial expectations of it being used primarily for content generation. Based on feedback that users preferred using Al for revising and improving drafts, Notion pivoted their messaging from "Al as content generator" to "Al as collaborative partner” . Simplifying Pricing Notion originally planned a complex usage-based pricing model but quickly realized it discouraged exploration of the Al features. They overhauled the pricing just before general availability to a simple flat monthly fee . Continuous Learning and Adaptation Notion remained highly adaptable, continuously learning from user behavior and feedback to refine Notion Al's features, messaging, and positioning. They discovered the product resonated more for personal/student use initially rather than their expected business 13. Provide a detailed overview of Deel’s go-to-market strategy @fil Answer Here is a detailed overview of Deel's go-to-market strategy based on the search results: Content Marketing Strategy Deel has invested heavily in content marketing to drive organic traffic and generate leads. Their key content tactics include: Blogging « Deel rapidly expanded their blog, adding nearly 500 new pages in one year from June 2022 to June 2023. ¢ « They focus on creating content around long-tail keywords related to global hiring, payroll, compliance, etc. This allows them to rank highly for niche search queries. ¢ « The blog gets around 13,500 visits per month and accounts for over 60% of their LREIANE website traffic. ¢ ¢ B Search Videos Multimedia Content @ Generate Image « In addition to written blog posts, Deel creates videos, podcasts, webinars and other multimedia content. ' « They repurpose and repackage content into different formats to reach broader audiences. ' Industry Resources « Deel has created in-depth resources like a global hiring guide and an employee cost calculator tool to attract prospects researching global hiring topics. ? * They have released NFTs and donated proceeds to organizations like as a marketing tactic. ? 14. How many rides does the average ridesharing user take per month? 15. How does Airtable upsell users to an Enterprise plan? D. LEARNING BEST PRACTICES 16. List of brainstorming techniques for product managers o teamperplexity ® 7 7 days ago + Collection / List of brainstorm techniques for product ma... List of brainstorm techniques for product managers ¥ Pro Search © Researching v ‘& Sources 13 Brainstorming Best Practices for Why Product Ideation m @ Techniques for Product... Brainstorming Product... Beats Brainstorming... Qaha-1 @aha-2 C craft. 3 View 2 more lzb Answer Here are some effective brainstorming techniques that product managers can use to generate new ideas and solutions: Brainstorming Techniques for Product Managers 1. Mind Mapping Mind mapping involves visually representing ideas and concepts around a central topic. Start with the main problem or goal in the center, then branch out with related ideas and sub-topics. This technique helps see connections and spark new thoughts. 2. Reverse Brainstorming Instead of generating ideas for a desired outcome, reverse brainstorming has the team come up with reasons why a product or feature can't work or ways to create a bad user experience. This different perspective can reveal blindspots and lead to innovative solutions. 23 Convert to Page s s Boanso 7 WAYS TO BRAINSTORM @@ " PROBLEM STATEMENTS GENERATE Y13 AND 1 [ENC) M miro Miro for o Product Managers Watch ® @ Generate Image = 17. How did Spotify use the Jobs to Be Done framework? lafil Answer Spotify effectively leveraged the Jobs to Be Done (JTBD) framework to transform the Jobs to Be Done Framework | Spotify Example music industry and become a leading streaming platform. Here's how they applied the JTBD approach: Job Identification = @@ %’ @ ee oo Spotify identified that customers didn't just want to buy or own music, but rather they wanted the job of being able to conveniently listen to a vast library of music on demand. The key jobs they uncovered included: o o « Listen to music anytime, anywhere « Discover new music based on personal tastes « Create and manage personalized playlists + Share and discuss music with others Job Categorization Spotify categorized these jobs into functional and emotional dimensions: Functional Jobs: « Access a comprehensive music library « Search and find specific songs/artists « Create and manage playlists 7 Watch ® ['TONYULWICK Watch ® O « Share playlists with the community Emotional Jobs: (@ Generate Image o « Find music that fits current mood/vibe « Brighten up mood with the right tunes ¢ Match music with activities/contexts « Feel a sense of connection and shared experience 18. Walk through the evolution of Slack’s personalized user onboarding experience E. EVALUATING POPULAR TOOLS 19. Compare and contrast product analytics tools: Amplitude, Mixpanel, and Posthog. Include key features, existing customers, differentiation points, and user reviews. lflSl Answer Amplitude, Mixpanel, and PostHog are popular product analytics tools that help companies understand user behavior and improve their products. Here's a comparison of their key features, existing customers, differentiation points, and user reviews: Amplitude Key Features: « Event tracking and user behavior analysis « Funnel analysis and conversion tracking * User segmentation and cohort analysis « A/B testing and experiment management (paid plans) « Collaboration tools like dashboards and notebooks Existing Customers: Atlassian, NBC, Walmart, Rocket Money, Vimeo £ Differentiation Points: « Offers industry-specific templates and recommendations for tracking key metrics 20 * Provides machine learning-powered alerts for anomaly detection 2 « Integrates qualitative feedback with session replay for deeper insights 2° User Reviews: « Praised for its intuitive interface and ease of use ¢ « Powerful segmentation and cohort analysis capabilities * « Expensive for smaller companies, especially with advanced features * Mixpanel Key Features: « Event tracking and user behavior analysis « Funnel analysis and conversion tracking * User segmentation and cohort analysis « A/B testing and experiment management (paid plans) « Integrations with various data sources and tools ? Existing Customers: Uber, Twitter, Salesforce, Intuit, Expedia ° 20. Compare and contrast Zendesk, Drift, and Intercom. Include key features, existing customers, differentiation points, and user reviews. 21. What is the difference between Segment and Freshpaint? 22. 23. Most popular tools for in-app localization F. UNDERSTANDING TECHNICAL JARGON 24. Explain what DAU/MAU means lfil Answer DAU/MAU stands for the ratio of Daily Active Users (DAU) to Monthly Active Users (MAU). It is a metric used to measure the stickiness or engagement of a product, app, or website. What is DAU? DAU (Daily Active Users) refers to the number of unique users who engage with a product or service within a 24-hour period. This engagement is typically defined by specific actions like logging in, making a purchase, or using certain features. What is MAU? MAU (Monthly Active Users) is the number of unique users who engage with a product or service over the course of a 30-day period, usually calculated as a rolling 30-day window. Calculating DAU/MAU Ratio The DAU/MAU ratio is calculated by dividing the DAU by the MAU and multiplying by 100 to get a percentage: DAU MAU Ratio = 24Y x 100% For example, if a product has 1,000 DAU and 10,000 MAU, the DAU/MAU ratio would be: DAU MAU Ratio = g5 x 100% = 10% This means that 10% of the monthly active users engage with the product on a daily basis. Importance of DAU/MAU The DAU/MAU ratio is an important metric because it provides insight into user retention and engagement. A higher ratio indicates that a larger proportion of monthly users are actively engaged with the product on a daily basis, which is generally seen as a positive sign of product stickiness and user loyalty. ' 2 * 4 = While DAU and MAU individually provide useful data points, the DAU/MAU ratio gives context by showing the relationship between daily and monthly usage. This ratio is closely watched by companies and investors as a key indicator of a product's success and potential for growth and monetization. ' ? * 25. What is Kubernetes? &% Answer What is Kubernetes? Kubernetes (commonly stylized as K8s) is an open-source container orchestration platform that automates the deployment, scaling, and management of containerized applications across a cluster of nodes (physical or virtual machines). It was originally developed and designed by engineers at Google, and later donated to the Cloud Native Computing Foundation (CNCF) in 2014 to be further developed and maintained as an open-source project. The key components and concepts of Kubernetes include: Cluster: A set of nodes (physical or virtual machines) that run containerized applications managed by Kubernetes. A cluster has at least one worker node and at least one master node. Nodes: The physical or virtual machines that make up a Kubernetes cluster. Nodes run the necessary services to manage networking between containers, as well as the container runtime (like Docker or containerd). Pods: The smallest deployable units in Kubernetes. A pod consists of one or more containers that share storage and network resources, and have a specification for how to run the containers. Services: An abstract way to expose an application running on a set of pods as a network service. Services provide a stable endpoint for pod(s) while allowing the pods to be rescheduled on different nodes as needed. Deployments: Provides declarative updates for Pods and ReplicaSets (ensures desired number of pod replicas are running). Deployments allow rolling updates, rollbacks, and can pause/resume deployments. kubectl: The command-line tool used to deploy and manage applications on a Kubernetes cluster. The key benefits of using Kubernetes include: + Automated deployment and scaling: Kubernetes automates the deployment, scaling, and management of containerized applications across a cluster. « Self-healing capabilities: Kubernetes automatically restarts or reschedules containers from failed nodes, replacing and rescheduling containers when nodes die 26. What is the difference between GraphQL and REST? 27. What is the difference between follow and no follow backlinks? For more, check out this slick landing page the Perplexity team put up. I’d love to hear in the comments about how else you use Perplexity, or other AI tools, in your day-to-day work.👇 Leave a comment As I’ve said before, the best way to prepare for this fast-approaching future is to get your hands dirty. So go try one of these prompts for yourself. Have a fulfilling and productive week 🙏 ---------------------------------------------------------------------------------------------------------------------------------- 👀 HIRING? OR LOOKING FOR A NEW JOB? I’m piloting a white-glove recruiting service for product roles, working with a few select companies at a time. If you’re hiring for senior product roles, apply below. Apply to join If you’re exploring new opportunities yourself, use the same button above to sign up. We’ll send over personalized opportunities from hand-selected companies if we think there’s a fit. Nobody gets your info until you allow them to, and you can leave anytime. ---------------------------------------------------------------------------------------------------------------------------------- If you’re finding this newsletter valuable, share it with a friend, and consider subscribing if you haven’t already. There are group discounts, gift options, and referral bonuses available. Sincerely, Lenny 👋 INVITE YOUR FRIENDS AND EARN REWARDS If you enjoy Lenny's Newsletter, share it with your friends and earn rewards when they subscribe. Invite Friends Like Comment Restack © 2024 2443 Fillmore St., #380-8231, San Francisco, CA 94115 Get the appStart writing
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