392: How uncovering customer pains and unmet needs led to launching a rapidly growing product – with Matt Danna

How this product manager created a successful product for an underserved market Today we are taking a product journey, exploring how an insight about an underserved market turned into a valuable product and a rapidly growing company. I love hearing stories of a product’s journey and enjoy sharing one occasionally on this podcast because, regardless of you role in product management, leadership, or innovation, there are important lessons to be learned.  Joining us is Matt Danna, who graduated Magna Cum Laude from Rochester Institute of Technology, where he focused on web development and human computer interactions. His professional career has entirely involved product roles, most often as Product VP or Head of Product. During his experience he became aware of an opportunity to better serve small businesses that needed to frequently make and manage client appointments. He is now the co-founder and CEO of Boulevard, which provides a SaaS platform for spas and salons to increase sales, in part by increasing client bookings and decreasing no-shows. I’m eager to hear how Matt has made this happen. Summary of some concepts discussed for product managers [2:35] What early experiences caused you to be interested in creating products? I grew up building with Lego, K’NEX, and Lincoln Logs, doing finger painting, and exploring my creative and artistic side. Growing up I didn’t know if I wanted to go into computer science or graphic design. I decided on information technology because of the salary and kept graphic design as a hobby. Product has been a way to join the artistic and technical worlds. [4:42] How did your interest in design and user experience evolve? I noticed the most successful companies’ products feel delightful and magical. They surprise you with their elegance and how easy they are to use. I love creating those moments with technology, particularly straddling the worlds of software engineering and design. I’ve always been drawn to building technology for creative individuals, and that’s been the theme throughout my whole career. [8:40] Where did the idea to create a product for spas and salons come from? At my last company, I was the VP of Product and the co-founder of Boulevard, Sean, was the VP of Engineering. One day Sean’s hair was a complete disaster, and I told him he was looking way too much like an engineer and needed to get a haircut. He kept forgetting to call the salon during the day to make an appointment, and at night when he remembered they were closed. I had the same problem. We hypothesized that if salons were more convenient to call, they would make more money, and we didn’t understand why they were seemingly so far behind on technology. One weekend Sean and I walked into a bunch of different salons in LA and asked them how they handled appointments. We were surprised that 100% of the businesses were using technology that was capable of online booking, but none of them had it embedded in their website. They wanted people to call to make appointments. We learned these businesses are really low margin—a healthy salon or spa operates on a 5% profit margin. The front desk controls the profitability of the business based on how they schedule appointments. If you’re a new guest, they’ll add 15 minutes consultation time. If you’re returning, they want to know what service you got, who your stylist was, and exactly how long it took. If you no-showed in the past, they’ll put you at the end of the day so if you no-show again, they can cut the staff early. Most importantly, they’re double-booking so a professional can be with multiple clients at once, and they’re making sure there are no gaps between appointments on the schedule. The front desk staff is doing yield optimization on the fly, and no scheduling system had any business logic.