How to Build a Product that Hits PMF on Day 1 | Granola, Christopher Pedregal
Meet Christopher Pedregal, the Co-founder and CEO of Granola.Granola is an AI note taking service that is being called "one of the most beloved AI products i...
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Intro
- 00:00We had product market fit and we had it
- 00:01on day one of launch. I think the first
- 00:03lesson is like talking to users is the
- 00:05lifeblood of the built-in product. This
- 00:07happens all the time. You're building
- 00:09something, you're like, "This is great."
- 00:10And then you put it in front of users
- 00:12and then they don't understand it. For
- 00:13example, there's this amazing video on
- 00:16YouTube, a product designer doing a user
- 00:18test and you see the user grab the
- 00:20square and put it into the square hole.
- 00:22The designer's like, "Yes." And then you
- 00:24see the user grab the circle and put it
- 00:26in the square hole and the user's like,
- 00:27"What?" And then you just see like
- 00:29basically completely misunderstanding
- 00:31the product in front of them. If it
- 00:32takes a month to to get feedback on it,
- 00:34it almost not worth doing because the
- 00:37thinking you had when you made the
- 00:38original decisions, you don't even
- 00:40remember. So I think the short cycle
- 00:42there is super important. What I don't
- 00:43believe is that you should talk to users
- 00:45and then just do whatever they ask you
- 00:46to do, right? Cuz users are going to say
- 00:49a whole lot of things and sometimes
- 00:51they'll contradict. Sometimes what users
- 00:53think they want and what they actually
- 00:54want or what they actually need are
- 00:56different. I think if you just make a
- 00:57prioritized list of user needs and build
- 00:59those, that doesn't work very well.
- 01:11Hi, I'm Chris Pedrick. I'm the
- 01:14co-founder and CEO of Granola. Granola
- 01:16is an AI notepad for meetings. Uh, think
- 01:19of it like Apple Notes except it will
- 01:21listen in the background and when your
- 01:23meeting ends, it'll take whatever crappy
- 01:25or raw notes you've written and flesh
- 01:27them out into great notes. We launched
- 01:28Granola a year and a half ago. We were
- 01:31four people at the time. We're now 35
- 01:34people. We raised our series B at a $250
- 01:38million valuation and we're growing
- 01:41super quickly.
Build the User's Best Friend
- 01:46I really love building tools that let
- 01:48people do things. This idea of oh, if I
- 01:50make this product great and people use
- 01:52it, it means they get value out of it
- 01:53and their lives are perhaps a little bit
- 01:55better as a result. Like that's
- 01:56something that I've always uh found
- 01:57really motivating. I was born in '86 and
- 02:00Google like the search engine launched
- 02:02in '98. So I was 12 years old when
- 02:04Google launched. I was just fascinated.
- 02:06I lived in a small town in the middle of
- 02:09the woods in upstate New York. So the
- 02:11internet was like this window onto the
- 02:13world. I kind of looked at California
- 02:15and Silicon Valley and Stanford and
- 02:17Google and all those company. I looked
- 02:19at them as like a you know up on an
- 02:20altar. How do they do this? So when I
- 02:23went to university, I kind of studied I
- 02:24want to understand how do computers
- 02:26work? How does the internet work? How do
- 02:27you build things for the internet? So I
- 02:28studed computer science. Like there are
- 02:29these very key moments that happened to
- 02:31me in college where I was like oh
- 02:32interesting that that speaks to me. And
- 02:34like one I was um in a security class
- 02:37and I learned that hey cryptography is
- 02:39basically magic but most almost all
- 02:41security vulnerabilities come from
- 02:43people doing the wrong thing or systems
- 02:45not being designed in a way that makes
- 02:46sense to people and I was like oh
- 02:48interesting even something as technical
- 02:49as security the human interaction
- 02:51element is huge and then later in my
- 02:53journey I discovered this field called
- 02:55human computer interaction and it's
- 02:57basically the study of how do people use
- 03:00technology and how do you design
- 03:01technology for people like if you want
- 03:03to build a really really fantastic
- 03:05product, you really really need to
- 03:07understand your user in that moment.
- 03:09This is something I talk about a lot
- 03:10internally at Granola that Granola as a
- 03:13product, the product should feel like it
- 03:14has soul. When we interact with a
- 03:17product, like if I pick up this mug and
- 03:19I hold it and I interact with it, it's a
- 03:21little bit like interacting with a
- 03:22person. What I mean by building a
- 03:24product with soul is that that whole
- 03:27product should feel coherent,
- 03:29consistent, like it's coming from the
- 03:30same place. It's coming from the same
- 03:33set of values. And I think it's very
- 03:36easy to tell if a product has that and
- 03:39it's very hard to build. The reason it's
- 03:41hard to build is because the bigger the
- 03:43more complex a product gets, the more
- 03:45people are involved in the making of the
- 03:47product. And when lots of people are
- 03:49involved in making it, they're all going
- 03:51to have different values, different
- 03:52viewpoints for different ideas. If
- 03:54they're not aligned in a very deep way,
- 03:57every screen of the app is going to feel
- 03:58very different. You know, there's that
- 04:00that famous thing which is if you look
- 04:02at a product and you can tell the
- 04:03organizational structure of the company
- 04:05that built it by the design of the
- 04:07product and that's really really bad.
- 04:09Take your your best friend. Imagine your
- 04:11best friend, right? You can kind of
- 04:12imagine what your best friend is going
- 04:15to do in most circumstances. If you make
- 04:17fun of them or you make a joke or you
- 04:19praise them, you're kind of going to
- 04:20know if they're going to be graceful or
- 04:22blush or make fun of you back or start
- 04:24crying. You kind of understand what they
- 04:26stand for, what they like, what their
- 04:27values are. We build these mental
- 04:29pictures of people. If you start talking
- 04:31to your best friend and all of a sudden
- 04:32they start acting like your principal,
- 04:34you know, or your boss, it's like you're
- 04:36you don't really know what to do with
- 04:37that. And we do the same thing with
- 04:38products. What I mean is like a product
- 04:40with soul is the exact opposite. It's
- 04:42not about the company structure. It's
- 04:44coming from a much deeper place in terms
- 04:46of of values and personality.
- 04:50I'm Taylor Rottwell, the founder and CEO
- 04:52of Laravel. Our mission is to help
- 04:55developers build, deploy, and monitor
- 04:57applications consistently and
- 04:58beautifully.
- 05:00Starting projects is great, but more
- 05:02importantly, you need to ship them.
- 05:03Great ideas mean nothing until they
- 05:05ship.
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The 50% Rule: Cut your product in half before Day 1
- 05:54My whole philosophy is that there's a
- 05:56explore and exploit. I think a huge
- 05:58advantage for us when we started
- 06:00building Granola is that we didn't
- 06:02launch it for a year. And what that
- 06:04meant is that during that year as we
- 06:06were exploring things and trying new
- 06:07things, we had a lot more freedom to
- 06:10change the product drastically. I'd say
- 06:12for the first 9 months, 10 months, we
- 06:15were mostly adding things, adding new
- 06:17features, trying to improve them, adding
- 06:19new like screens, what have you. And
- 06:21then at one point, we kind of realized,
- 06:23okay, here's the thing that's going to
- 06:25be most important, most useful to users.
- 06:27And we went and we cut about 50% of what
- 06:29we had built. That would have been
- 06:31really hard to do if we had been
- 06:33launched and we had lots of users. Like,
- 06:35it'd be very hard for us today in one
- 06:37fell swoop cut half of the product. I
- 06:39think our users would really yell at us.
- 06:41That's a big part of the the way we
- 06:42build. So for any product that you're
- 06:44building, first you have to go through
- 06:46this explore phase where you're figuring
- 06:47out what's the shape of the solution.
- 06:50And there you want to try as many
- 06:51different things as possible. And once
- 06:53you kind of know what the shape is, then
- 06:55you go into a different mode. We call it
- 06:57exploit internally where you just
- 06:59polish, right? You take the rough shape
- 07:00and you polish, polish, polish, polish.
- 07:02And here's where the details matter. But
- 07:04you need to make sure you're polishing
- 07:05the right shape because if you're
- 07:06polishing the wrong shape, then all of
- 07:08that is throwing. The question is kind
- 07:09of like do we hit something that's
- 07:11valuable and now it's time to polish or
- 07:13do we should we still be looking for a
- 07:14new shape, right? The answer is like it
- 07:17is really hard to know if you have the
- 07:21right shape of a product. It's really
- 07:23hard. When we launched Granola, I didn't
- 07:26think we had it at that point. I was
- 07:28like, I think this is good enough where
- 07:29we'll learn more by giving it to more
- 07:31people. That's why we decided to launch
- 07:33when we did cuz we said like, are we
- 07:34going to learn faster by continuing to
- 07:36do this? are going to learn faster by
- 07:38launching it and getting feedback from
- 07:39lots of users. And up until that point,
- 07:41it was really clear to me that we would
- 07:43learn faster by just onboarding two,
- 07:45three people every day and getting
- 07:46feedback. And at some point once we
- 07:48started doing that and we started
- 07:49hearing the same things over and over
- 07:51and we kind of understood those users,
- 07:52we said, "Okay, now let's give it to
- 07:53lots of people because maybe there are
- 07:55people who want to use it for use case
- 07:57we've never thought of." And the fact is
- 07:59we had product market fit on day one and
- 08:01we didn't realize it. And one of my
- 08:02biggest mistakes was not noticing it. It
- 08:04took me six months to realize that we
- 08:06had product market fit and we had it on
- 08:07day one of launch. The first lesson is
- 08:10like it is really hard to know when you
- 08:11have it. I heard the story that the
- 08:13Facebook team they had this other idea
- 08:15which is kind of like Dropbox for music
- 08:18some kind of file sharing thing and they
- 08:20worked on it I think for the first 6
- 08:21months or 9 months after they launched
- 08:23Facebook because they were like oh I
- 08:25don't know if there's a there there you
- 08:26know we might want to work on this other
- 08:27thing more and that's Facebook right
- 08:29that's like the generational company of
- 08:31the decade and they still didn't know
- 08:33necessarily if they were on to something
- 08:35huge so what I got wrong I think a lot
- 08:37of early founders get wrong a lot of
- 08:39people will sit down and say I'm going
- 08:41to build a product here's the painoint
- 08:42I'm going to solve. I want to build a
- 08:43great solution and it's all about can I
- 08:45execute on that. Have you ever played
- 08:46those video games where you land on a
- 08:49new level and there's like a little map
- 08:51in the corner and it's all gray and then
- 08:53you need to kind of go and walk around
- 08:55and then the map kind of unblur. But
- 08:57when you start off basically you have no
- 08:59idea of what the terrain around you
- 09:00looks like. I think that's the right
- 09:02metaphor. The right solution is
- 09:04unknowable until you go out and you try
- 09:07it and it gets contact with the world.
- 09:09You can't sit and design the perfect
- 09:10thing. You need to like put stuff out
- 09:12there, probe the system, and see how the
- 09:14system probes back.
- 09:20I very much believe that talking to
- 09:22users is the lifeblood of building
- 09:24product. I think if you're not
- 09:26constantly talking to users, not
- 09:27constantly getting feedback, you're just
- 09:28not going to build something really
Systemize the Feedback Loop
- 09:29good. You need to systematize your
- 09:32ability to talk to users. If the
- 09:34activation energy for you to go and talk
- 09:37to your user is high, then you're just
- 09:40not going to do it very often. And if
- 09:42you can lower that activation energy
- 09:44necessary to go talk to a user, and if
- 09:47you can do that for your whole company,
- 09:48great things are going to happen. So
- 09:50this was 2013. I started edtech company,
- 09:54an AI tutor for high school kids called
- 09:56Socratic in New York City. And I uh I
- 09:59ran that for 5 years. And then Google
- 10:02acquired that company. It was really
- 10:04hard for us to actually go and talk to
- 10:06high school students. I remember we'd
- 10:07know that there were a few colleges and
- 10:09a few high schools around our office in
- 10:11New York and I would sometimes go after
- 10:14school and be like, "Hey, do you want to
- 10:16answer some questions?" And it felt
- 10:17super creepy. Eventually, it took us a
- 10:19while to get there, but we figured out
- 10:21this system where on every Tuesday and
- 10:23Thursday, we would have I think it was
- 10:26like five to eight high school students
- 10:28come into the Socratic office and spend
- 10:30the afternoon. We didn't have anything
- 10:31to talk to them about. that's fine. They
- 10:33would just sit there, do their homework,
- 10:34and leave, and they would get paid for
- 10:35it, and they were super happy. But if we
- 10:37were working on a new feature or if we
- 10:39were working on messaging or whatever it
- 10:41was, they would be there, and we could
- 10:43show them whatever we were doing. And
- 10:45the moment we had that, our ability to
- 10:48improve our product and make it better
- 10:50sped up dramatically. A big difference
- 10:52at Granola versus Socratic is that um we
- 10:54can talk to users remotely, like over
- 10:56Zoom. And that actually makes a lot of
- 10:57sense because our product's meant to be
- 10:59used during meetings, right? So we'll do
- 11:01a lot of video calls with with users. So
- 11:03we we usually have standing user
- 11:04interviews 4 days a week that anybody at
- 11:06the company can join and whoever is
- 11:08working on stuff can ask for
- 11:09information. So that's something that
- 11:11I've taken away from the Socratic
- 11:13experience and have kind of carried with
- 11:14me since. The second thing is in my
Stop Collecting Redundant Feedback
- 11:17opinion like the secret with user
- 11:18interviews is you don't need to hear the
- 11:20same thing from 10 people. If I put a
- 11:22prototype in front of you and you say
- 11:25this button's super confusing and I look
- 11:27at it and I'm like oh I totally
- 11:28understand why you're confused. I don't
- 11:30need 10 other people to tell me that. I
- 11:31should go and I should change that
- 11:32button immediately so that next time I
- 11:35show it to somebody I learn what the
- 11:37next problem is. And I think this is
- 11:39something that especially in big
- 11:40companies that's unheard of. It's very
- 11:42easy to delude yourself. Be very very
Be Skeptical, Critical, and Honest
- 11:45skeptical and critical and honest about
- 11:49if what you've built is actually
- 11:50something people want and they're
- 11:52actually going to use. So like in a user
- 11:54interview, never ever ask someone if
- 11:56they would use something. Or you can ask
- 11:58it but then completely ignore the
- 11:59answer. If you're putting them in front
- 12:00of a prototype, ask them like what would
- 12:02you do next? And then if they say
- 12:04something, say, "Is that true?" Or like,
- 12:05"Don't you think you'd be tired?" Or,
- 12:07you know, like really probe on it from a
- 12:09negative perspective because that'll I
- 12:10think get you to the reality faster.
- 12:13That's just human nature. In a user
- 12:14interview, you're going to try to say
- 12:15nice things. So I categorically ignore
- 12:17all positive things that people say and
Use Conservative Metrics
- 12:20use really conservative
- 12:23metrics of engagement. Internally, when
- 12:26we say a user, it's only a user who's
- 12:28done at least one meeting, new meeting
- 12:31on this day, and that meeting has to
- 12:33have over 5 minutes of transcription.
- 12:35Otherwise, we don't count you as a user.
- 12:37So, if you use Granola yesterday, we
- 12:39don't count you as a user today. If you
- 12:41open up Granola and looked at 10
- 12:42meetings, but you didn't do a new
- 12:44meeting, we don't count you as a user.
- 12:45And we basically from the get-go, we've
- 12:47always had very conservative metrics for
- 12:49what's activity, so that we kind of we
- 12:52don't kid ourselves. It's so so easy to
- 12:54come up with excuses or say like, "Oh,
- 12:56you know, it's actually because of this
- 12:58other thing that we're going to fix.
- 12:59It'll be fine. Like, the product's
- 13:00actually good enough." What I don't
- 13:01believe is that you should talk to users
- 13:03and then just do whatever they ask you
- 13:04to do. Because users are going to say a
- 13:06whole lot of things and sometimes
- 13:08they'll contradict. Sometimes what users
- 13:11think they want and what they actually
- 13:12want or what they actually need are
- 13:14different. So, my philosophy is to talk
- 13:18to users so you can really get their
- 13:20context. you can hold that in your
Trust Your Intuition Over Feedback
- 13:21brain, but then use your intuition and
- 13:25your vision of what the product should
- 13:26do. So, from the get- go, I think we've
- 13:29always known that we wanted Granola to
- 13:31be a very simple, minimal design product
- 13:34where it feels nice to spend time in.
- 13:37It's not distracting. It's not vying for
- 13:39your attention. That's been rooted on
- 13:41what we wanted in a product, right? Cuz
- 13:43we use Granola and we've always wanted
- 13:44to use Granola. But as we try to build
- 13:46that out, we have hundreds and hundreds
- 13:48of users kind of in our heads that we
- 13:50can kind of close our eyes and be like,
- 13:51"Oh, what would Nancy think of this?" We
- 13:53can kind of visualize the response
- 13:54pretty well. And I think that's super
- 13:55important. I think if you just make a
- 13:57prioritized list of user needs and build
- 13:59those, that doesn't work very well. Like
- 14:01whenever we've done that, users never
- 14:03ended up using those features very much.
- 14:05Like this happens all the time where
- 14:07you're building something, you're like,
- 14:08"This is great." And then you put it in
- 14:09front of users and then they don't
- 14:11understand it, they hate it, they don't
- 14:13get it. There's this amazing video on
- 14:16YouTube, a product designer doing a user
- 14:18test, and you see the user grab the
- 14:19square and put it into the square hole.
- 14:22The designer's like, "Yes." And then you
- 14:23see the user grab the circle and put it
- 14:25in the square hole, and the user's like,
- 14:27"What?" And then you just see like
- 14:28basically completely misunderstanding
- 14:30the product in front of them. I think
- 14:32the only way you can build an intuition
Shorten Feedback Loops
- 14:35is by putting stuff in front of people
- 14:37and getting feedback on it quickly. If
- 14:39it takes a month to to get feedback on
- 14:41it, it almost not worth doing because
- 14:44the thinking you had when you made the
- 14:45original decisions, you don't even
- 14:47remember. So I think the short cycle
- 14:49there is super important. When we
- 14:50started building Granola, we took a very
- 14:53very iterative approach. Like we built
- 14:56the bare minimum thing and then we tried
- 14:58to get people to use it and see all the
- 15:00reasons why it didn't work and then we
- 15:01try to fix those and then we try to
- 15:03change it. And I think your intuitions
- 15:04do get better but you can never stop
- 15:07doing it. That's the other It's like
- 15:08their intuitions get better and then you
- 15:10stop talking to users and your
- 15:11confidence level still stays high. So
- 15:12you're like, "Oh, I understand users. I
- 15:14know what I can what what I need to
- 15:15build." And then when you start user
- 15:16testing again, you realize you're
- 15:18totally off pieced. And I think two
- 15:20different paths you can take when you're
- 15:22building products on top of AI. You can
- 15:23build a product that will basically
- 15:24replace the human or you can try to
- 15:27build a product that's going to augment
- 15:29or enhance what the human does. That's
- 15:32basically where we're going with
- 15:33Granola. So we're starting with meaning
- 15:34notes. We're going to help you with all
- 15:36the work you do after a meeting. Whether
- 15:38that is writing follow-up emails,
- 15:39whether that's drafting memo, we're
- 15:41going to help you prepare for your
- 15:42previous meetings. We're going to help
- 15:43you do analysis across all your
- 15:45meetings. We're going to help you do
- 15:47more and more and more and hopefully
- 15:48make make your life a little bit better
- 15:50every day.