Each week, Startup Edition poses a single question to a group of bloggers from the startup community. This week’s question is “How do you discover what people really want?” My answer? Use the $100 test, whether you’re creating software or planning activities with your family. 

Every software development team has a long list of features they want to build into their product. At the same time, they are constrained by how much time or money they can spend writing and testing the code. To meet most of their customers’ needs, they end up identifying a “minimal viable product” of the most important features.

When I worked on the Dreamweaver team back in the late 1990s, we used a technique called the “$100 test” to help us prioritize our backlog of feature ideas into an MVP. Here’s how it worked: we gave the members of our customer advisory board an imaginary stack of 100 dollar bills and asked them to spend their money on the list of features we were considering. They could spend all $100 on one feature that they were passionate about, or $50 on two features, or any dollar amount on any number of features. They could even put their money toward new features. Any combination was fine, as long as it added up to $100 and represented what they wanted to see in the next release of Dreamweaver.

Today, many software teams use this test, or something similar, to discover what their customers want. I’ve also seen it used in brainstorming sessions to prioritize ideas that merit further investigation. It’s an effective way for a group to prioritize things when they have more ideas than their resources can support.

Does the $100 test have a role to play in parenting? I think it can! Let’s look at my family as an example.

My family consists of my husband, our two teens, and myself.

Do we want to do more than we can given our free time and our budget? Always.

Do we have an effective approach to prioritize things? Not really. After consulting with everyone, I make most of the decisions. While efficient, it’s not exactly effective, and I often feel burdened by it.

Coincidentally, we have a vacation coming up, and we haven’t yet decided what to do each day. I think we need a family brainstorming session to come up with loads of ideas, and then use the $100 test to figure out what activities we’ll do. It will be a great way to discover what we really want and to get everyone engaged and excited about the vacation.

What do you think of the $100 test? Have you used it outside of product development to discover what people want? Please leave a comment; I’d like to hear from you.

–Karen

© 2013 by Karen Catlin. All rights reserved.

NOTE: This post is part of Startup Edition, weekly wisdom from founders, hackers, and designers who answer a single question each week. Click here to see other answers to this week’s question: “How do you discover what people really want?”